EU Seeks New Import Fees on E-Commerce as Unsafe Products Surge from China

On February 5, the European Commission revealed plans to impose new fees on e-commerce imports to mitigate the influx of harmful products, primarily from China. The announcement came during a press conference in Brussels, led by EU tech chief Henna Virkkunen, who stated that the number of imported e-commerce parcels surged to 12 million daily from 2023 to 2024, doubling over the year. A significant portion of these products has been identified as unsafe, counterfeit, or dangerous.

In an effort to enhance consumer safety and environmental standards, the Commission is advocating for the implementation of a handling fee on parcels brought directly to consumers. This initiative aims to counteract the financial burden of supervising compliance with EU regulations and to level the playing field for local small- and medium-sized enterprises (SMEs) facing competition from rogue traders.

Virkkunen articulated concern over the environmental impact and the health risks associated with these products, asserting that around 90% of the problematic packages originate from China. The fast-growing online platforms Shein and Temu are under scrutiny, with EU officials suspecting inadequate measures to ensure compliance with European safety standards.

The EU's consumer protection chief, Michael McGrath, announced an investigation into Shein to determine whether the platform adheres to consumer protection rules. Any violations could result in significant fines. He stated, "Any business that wants to benefit from our market of almost 450 million consumers should play by the rules" and emphasized that the EU is coordinating the inquiry with the Consumer Protection Cooperation Network, involving authorities from all 27 member states of the bloc.

Shein responded positively to the initiative, expressing willingness to collaborate with EU and national governments to foster trust and safety in online shopping. Meanwhile, McGrath disclosed that up to 96% of products tested from these platforms, including Shein and Temu, did not fully comply with EU safety standards. He highlighted serious risks, such as a potential choking hazard posed by defective baby pacifiers, demonstrating the urgency of the situation.

In addition to the proposed parcel handling fees, the Commission called for the swift execution of previous proposals aimed at creating a fair online marketplace, including the removal of duty exemptions for parcels valued under 150 Euros.

The EU's actions come in light of recent developments in the United States, where the USPS briefly suspended inbound parcels from China and Hong Kong, affecting low-cost platforms including Temu and Shein. However, this suspension was quickly reversed due to concerns about potential trade disruptions.

As local authorities gear up for a series of actions, including mystery shopping and testing of products, the EU is taking a proactive stance to protect European consumers and businesses from the adverse effects of imported goods that fail to meet established safety criteria.

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