E-commerce: restricting access for substandard goods  

On Thursday, the Committee on Internal Market and Consumer Protection adopted an own-initiative report that takes stock of the challenges posed by the ever-increasing e-commerce flows into the EU, suggesting how member states and authorities should tackle the issue. The report clarifies Parliament’s position on many issues that may also come up in the interinstitutional negotiations on the ambitious reform of the Union’s Customs Code, which are yet to begin.

Incentivising bulk imports and other ways to support customs

Parliament suggests one way of increasing the oversight of customs authorities is to encourage non-EU traders to import their e-commerce items into the EU in bulk, store them in warehouses in Europe, and ship them on to customers from inside the Union. This is something MEPs want the Commission to undertake an impact assessment on.

Digitalisation, better data-sharing and advanced screening technologies made possible by AI and block-chain technology could significantly enhance the capacity of authorities to flag high-risk shipments and automate compliance checks at scale. Consequently, the customs authorities should be assigned more resources to deploy technological tools, as this would enable customs authorities to reinforce their checks.

Handling fee for e-commerce parcels and customs duty exemption for cheap goods

Parliament wants the Commission to verify that the €2 handling fee that the Commission has proposed to introduce for e-commerce parcels complies with World Trade Organisation (WTO) rules and is sufficient and proportionate. Importantly, MEPs insist this fee should not be passed onto consumers.

At the same time, MEPs consider the removal of the €150 threshold for the current customs duty exemption a necessary step and support its immediate elimination.

More responsibilities for non-EU platforms and traders

As non-EU manufacturers often manage to bypass EU regulations and evade customs and market surveillance checks, MEPs say existing EU rules, such as DSA, GPSR, DMA and MSR need to be enforced and non-compliant companies should face consequences for continued infringements.

In line with the DSA, online platforms need to ensure full traceability of sellers and products, preventing listings from appearing without verified product compliance details. Platforms should also manage consumer complaints effectively and ensure efficient redress. The report calls on the Commission to consider increasing the legal and financial liability of the “responsible person” designated by non-EU traders, so consumers and authorities would have an accountable point of contact when problems arise.

For data and security reasons, member states should restrict high-risk vendors from operating in their critical infrastructure and border security systems, including for the procurement of security screening and cargo scanning equipment used at airports and ports. At the same time, it would be important to carry out awareness raising campaigns in the EU regarding online manipulative practices and the dangers related to goods ordered from non-EU online shops.

Quote

Rapporteur Salvatore De Meo (EPP, IT), said after the vote: “The e-commerce boom has revolutionised global trade, but it has also opened the door to a surge of dangerous products and unfair competition. Too many goods enter the European market without proper checks, putting consumer safety at risk and penalising businesses that play by the rules. Strengthening controls, enforcing existing legislation, digitalising market surveillance, ensuring accountability across the supply chain, and enhancing coordination between authorities are now priorities to ensure that the Single Market remains a safe, fair, and competitive space for all.”

Next steps

This is an own-initiative report that the committee adopted with 39 votes in favour, 1 against and no abstentions. It will now have to be voted at the Parliament’s plenary, this is planned for July.

Background

E-commerce provides consumers with unparalleled convenience, but comes with significant challenges. Many items that end up in the EU do not comply with EU safety norms. EU businesses suffer from unfair competition. Consumers fall victim to manipulative practices. EU taxpayers have to foot the ever-growing bill of dealing with the non-recyclable waste. Meanwhile, customs and market surveillance authorities are no longer able to keep up with having to process 12 million small e-commerce packages per day.