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    Home»World Economy

    Temu, Shein and Amazon to be liable in EU for ‘unsafe’ or ‘illegal’ goods

    Team_NewsStudyBy Team_NewsStudyFebruary 1, 2025 World Economy No Comments3 Mins Read
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    Roula Khalaf, Editor of the FT, selects her favorite tales on this weekly e-newsletter.

    The EU plans to make ecommerce platforms similar to Temu, Shein and Amazon Market responsible for harmful or unlawful merchandise bought on-line, in a crackdown on the flood of imports from China.

    In line with a draft proposal seen by the Monetary Instances, customs reforms would oblige online platforms to offer knowledge earlier than items arrive within the EU, permitting officers to raised management and examine packages. The proposal comes amid issues concerning the rise in harmful and counterfeit items shipped from Asia on to European clients.

    At present, any particular person within the EU who purchases items on-line is handled because the importer for customs functions. However the reforms, if adopted, would swap the accountability to the platforms.

    “The surging quantity of merchandise which can be unsafe, counterfeit or in any other case non-compliant results in severe security and well being dangers for customers, has an unsustainable influence on the setting, and fuels unfair competitors for official companies, with a big influence on competitiveness in numerous sectors,” the proposal reads.

    The EU imported 4.6bn lower-value parcels in 2024, a fourfold enhance on 2022. Greater than 90 per cent had been from China. The sheer quantity of these things places an “unsustainable pressure on the authorities”, in accordance with the draft.

    Underneath the reforms, on-line retailers must “acquire the related responsibility and VAT” and “make sure the compliance of the products with different EU necessities”. The proposal additionally abolishes a present exemption for items value lower than €150 from paying responsibility, making them topic to customs checks.

    Customs knowledge from the 27 nationwide authorities will probably be pooled and a brand new central EU customs authority (EUCA) arrange, in accordance with the draft. The doc remains to be being mentioned internally and will change earlier than publication on February 5.

    “The EUCA would have the ability to display screen the products primarily based on this data and to establish potential dangers, even previous to the loading of the products for transport or their bodily arrival within the EU,” the doc says.

    “This may permit customs authorities to have a whole overview on the availability chains, anticipating controls on imports and exports and making management suggestions to the member states.”  

    Counterfeiting prices the clothes trade near €12bn in annual gross sales (5 per cent of income), the cosmetics trade €3bn (5 per cent of gross sales) and the toy trade €1bn (nearly 9 per cent of gross sales), in accordance with the proposal. 

    The bloc’s new waste guidelines may also oblige sellers to contribute to the price of disposal of undesirable merchandise together with garments, the doc provides.

    Advisable

    The EU may also think about imposing a dealing with charge per bundle, a plan first revealed by the FT.

    Underneath separate guidelines policing the market behaviour of huge on-line platforms, the fee is already investigating Shein and Amazon and has began proceedings towards AliExpress and Temu.

    On-line marketplaces are exempt from legal responsibility for the products bought on their web site by different distributors until they promote unlawful or hazardous merchandise knowingly or fail to take away them swiftly when detected.

    Temu and Shein have all beforehand instructed the FT that they adjust to EU guidelines. Temu has stated it helps coverage modifications that profit customers.

    Amazon has stated it has proactive measures in place to stop unsafe or non-compliant merchandise from being listed on its website.



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