How low-value shipments, product safety, and marketplace liability are driving new regulations in the European Union

The European Union is intensifying its enforcement against non-EU imports entering through e-commerce platforms. This move targets particularly low-value shipments that often bypass customs, product safety, and regulatory standards. The European Commission and the European Parliament have made this issue a central pillar of their digital trade agenda, aiming to safeguard consumers, ensure fair competition, and hold online marketplaces accountable.

This article explores the causes of this crackdown, the measures being introduced, and what they mean for sellers, marketplaces, and consumers across the EU.

The Challenge: E-Commerce, Low-Value Imports, and Regulatory Gaps

The surge in direct-to-consumer e-commerce has transformed global retail — but it has also exposed significant regulatory blind spots.

In 2024, over 4.6 billion parcels under the €150 customs duty exemption threshold entered the EU, with more than 90 percent originating from China. These parcels are often cleared automatically, limiting the ability of authorities to conduct safety or compliance checks.

This trend has created several challenges:

• Unfair competition: Non-EU sellers gain a pricing edge by exploiting the low-value import exemption and bypassing VAT or product-safety costs.
  
• Consumer risk: Many products fail to meet EU safety or environmental standards, leading to recalls or safety alerts.
  
• Customs overload: The massive volume of small parcels puts a strain on EU customs authorities, leading to inconsistent enforcement across member states.
  
• Environmental impact: The millions of small, individually shipped packages contribute to packaging waste and transport emissions.
  

Reuters recently reported that the European Commission plans to tighten customs controls on low-value shipments from platforms such as Temu and Shein, underscoring the EU’s determination to bring these fast-growing imports under stricter scrutiny.

The European Parliament’s 2025 Resolution on Non-EU Imports

On 9 July 2025, the European Parliament adopted the resolution Product Safety and Regulatory Compliance in E-Commerce and Non-EU Imports. It represents the EU’s most comprehensive policy response yet to the e-commerce import challenge.

Key Measures Proposed

• Review of the €150 exemption: Lawmakers called for a review — or potential elimination — of the duty-free threshold for low-value imports.
  
• Increased market surveillance: The resolution urges more funding, staff, and digital tools for customs and product-safety authorities.
  
• Platform accountability: Online marketplaces could be deemed importers if they enable non-EU sales to EU consumers, making them liable for unsafe or non-compliant goods.
  
• EU-based representation: Non-EU sellers may be required to appoint an authorised representative in the EU responsible for product compliance.
  
• Traceability and transparency: Enhanced digital tracking systems such as product passports and cross-border data exchange are central to the plan.
  
• Sustainability focus: Lawmakers are also addressing the environmental footprint of small-parcel imports, including packaging and emissions.
  

This resolution complements existing legislation such as the Digital Services Act (DSA) and the Digital Markets Act (DMA), which already impose transparency and accountability duties on large online platforms.

The European Commission’s Enforcement Actions on Non-EU E-Commerce Imports

Alongside the Parliament’s resolution, the European Commission has introduced multiple enforcement and reform measures:

• Customs reform package: Proposed in 2023, this initiative aims to modernise EU customs by creating a centralised digital system capable of handling the explosion of e-commerce shipments.
  
• Enhanced parcel inspections: In 2025, the Commission began prioritising customs checks on low-value parcels, particularly those shipped directly from Asia-based sellers.
  
• Marketplace liability framework: Draft regulations are expected to make platforms like Temu, Shein, and Amazon accountable for products that fail to meet EU safety standards.
  
• Possible handling fees: EU finance ministers are discussing a €2 handling fee for each parcel imported under the low-value exemption, which could significantly impact non-EU sellers relying on ultra-cheap shipping models.
  

These actions signal a turning point in EU e-commerce policy — shifting from passive oversight to active enforcement and shared platform liability.

Implications for Businesses and Marketplaces

For Non-EU Sellers

Non-EU sellers face a rapidly tightening regulatory environment. They may soon be required to:

• Designate authorised representatives within the EU.
  
• Register products in compliance with EU safety and environmental standards.
  
• Provide transparent product information and documentation.
  
• Store inventory within the EU to facilitate compliance and reduce customs risk.
  

Low-value shipping models may become less profitable, and logistics networks will likely need restructuring to remain competitive in the new regulatory landscape.

For Online Marketplaces With Non-EU E-commerce Imports

Marketplaces enabling non-EU sellers are moving into the regulatory spotlight. They may soon be legally responsible for the goods sold on their platforms. To mitigate risk, they must:

• Strengthen seller verification and compliance checks.
  
• Implement traceability tools, including batch registration and supply-chain visibility systems.
  
• Establish internal compliance teams or partnerships with EU regulatory bodies.
  
• Ensure product recalls, documentation, and consumer information align with EU requirements.
  

For EU-Based Businesses

While these measures create short-term administrative burdens, they help restore fair competition for EU sellers who comply with all safety and tax regulations.
EU retailers and brands can benefit by emphasising transparency, traceability, and sustainability — values increasingly crucial to European consumers.

For Consumers

Consumers will benefit from stronger protections against unsafe or counterfeit goods, clearer information about product origins, and improved confidence in cross-border online shopping.
However, consumers may also face slightly higher prices or longer delivery times as compliance and inspection processes increase.

What to Expect Next from Non-EU E-Commerce Imports Regulations

Reform of the Low-Value Import Threshold

The European Commission is evaluating whether to abolish or modify the €150 exemption. Alternatives include administrative handling fees or a uniform VAT treatment for all parcels.

Increased Platform Liability

Marketplaces that host third-party sellers may soon be reclassified as importers or distributors under EU law, carrying full responsibility for product safety.

Digital Customs Infrastructure

A new EU Customs Data Hub is under development to centralise import data, automate risk assessments, and coordinate customs activities across member states.

Integration of Sustainability Goals

Environmental considerations — such as packaging waste, carbon emissions, and sustainable logistics — are now tied directly to e-commerce regulation.

The European Commission’s intensified enforcement on non-EU e-commerce imports marks a new era in the regulation of cross-border digital trade. The focus on low-value shipments, marketplace liability, and product safety reflects the EU’s determination to create a fairer, safer, and more sustainable e-commerce environment.

For non-EU sellers, this means stricter oversight and higher compliance costs. For EU businesses, it represents an opportunity to compete on fairer terms. And for consumers, it promises a more transparent and trustworthy online shopping experience.

The message is clear: the age of unregulated low-value e-commerce imports into Europe is coming to an end, and all participants in the digital marketplace will need to adapt to this new regulatory reality.

The post EU Cracks Down on Non-EU E-Commerce Imports: What You Need to Know appeared first on Cross-Border Magazine.

The European Commission has requested that the online fashion platform Shein provide further details under its digital regulations. This request comes just one day after the launch of an investigation into consumer protection about the Asian textile giant.

Under the framework of the Digital Services Act (DSA), the European body is seeking information on the risks associated with the marketing of illegal content and products on the platform, the transparency of recommendation systems, access to data for qualified researchers, and the strategies implemented to reduce risks that may affect consumer protection, public health and the well-being of users.

According to Euro News, this request comes after the opening of an investigation into consumer protection and the publication of a “toolbox” that addresses the problems arising from online purchases on Chinese platforms that do not comply with European Union standards on quality, environmental sustainability, and fair business practices.

This toolkit seeks to act from when the consumer accesses the website until the purchase is complete. It details regulations that require implementation, reinforcement, or revision and incorporates new proposals, such as customs reform.

Shein has three weeks to respond to the European Commission's request for information under the Digital Services Act.

Shein current legal issues in the EU and USA

Shein, the Chinese-founded fast-fashion retailer, has encountered several legal challenges in the European Union (EU) and the United States (USA). In the EU, the European Commission initiated an investigation in February 2025 to assess whether Shein violated consumer protection laws, focusing on selling unsafe products and potential infringements related to illegal content on its platform. 

Concurrently, in the USA, the Trump administration is considering adding Shein to the Department of Homeland Security's forced labor list, following concerns about the company's supply chain practices and allegations of forced labor. 

Additionally, Shein has faced numerous lawsuits in the USA alleging intellectual property infringement, with over 90 cases filed against the company for purportedly copying designs from other brands and independent artists.

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The European Commission demanded Amazon to submit more information on the measures it has taken to implement the DSA last Friday, July 5.

Specifically, Amazon is asked to provide detailed information on its compliance with the provisions relating to the transparency of recommender systems, the input factors, features, signals, information, and metadata applied to such systems, and the options offered to users to opt out of being profiled for recommender systems. 

The company should also provide further information on the design, development, implementation, testing, and maintenance of the Amazon Store ad library online interface and supporting documents relating to its risk assessment report.

All information by Amazon must be delivered to the European Commission by July 26. In case of non-compliance, this could entail the formal opening of proceedings under Article 66 of the Digital Services Act.

Amazon is trying to avoid the DSA 

Faced with requests made by the European Commission, Amazon has attempted to seek to be absolved from complying with the DSA in court. It claimed that submitting some data would violate its fundamental rights to data protection and freedom of business activity. With this application, it joined the one brought by Zalando.

The Court of Justice of the European Union (CJEU) rejected this claim, adding that "the suspension would lead to a delay, potentially of several years, in the full achievement of the objectives of the Regulation on the single market for digital services and thus potentially allow an online environment threatening fundamental rights to persist or develop."

The Commission's next steps will be to analyze the responses and determine the next steps based on this. This would result in severe penalties, with fines of up to 6% of annual turnover. In addition, the executive authority may also impose fines for incorrect, incomplete, or misleading information in the responses to the request for information.

UPDATE: Amazon's official answer

After we released this content, Amazon reached out via one of their PR agencies, in this case via Jessica Ramkema from WEBER SHANDWICK to share with us this official statement:

“We are reviewing this request and working closely with the European Commission. Amazon shares the goal of the European Commission to create a safe, predictable, and trusted shopping environment. We think this is important for all participants in the retail industry, and we invest significantly in protecting our store from bad actors, illegal content, and in creating a trustworthy shopping experience. We have built on this strong foundation for DSA compliance.”

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The European Commission recently announced that Shein, the ultra-fast fashion e-commerce giant, will be subject to additional regulations targeting huge online platforms (VLOPs) under the European Union's Digital Services Act (DSA). Shein has announced that it has consistently surpassed 45 million monthly users in the region, meeting the European Union's threshold to designate huge online service providers (VLOPs) under the DSA.

Although fashion was Shein's initial product focus, the e-commerce giant has rapidly expanded its inventory into a broader market, encompassing a growing range of lifestyle categories and home goods (such as cosmetics, school supplies, and pet products).

Its tactic of offering a wide range of fashion-focused products, typically at bargain prices, makes the market especially popular with younger users. However, it is a dynamic that could increase regulatory risk for Shein, as the Commission has said its priorities in enforcing the DSA include focusing on risks related to the protection of minors and safety in the marketplace. Inexpensive products may also have lower safety standards.

This designation is an essential aspect to consider as it means that the Singapore-based marketplace will soon have to comply with the strictest level of regulations for online platforms, requiring it to take steps to identify and mitigate potential risks, such as those related to the sale of counterfeit or illegal products or other types of content that could cause harm to consumer welfare.

Shein is not the only one

In doing so, Shein joins two dozen other platforms already designated as VLOPs or VLOSE (huge online search engines) by the EU. Other VLOP marketplaces include AliExpress, which is already under investigation by the Commission for alleged DSA infringements; Amazon, which has challenged its designation (but remains subject to the rules in the meantime); Booking.com; and Zalando.

The DSA's general obligations already applied to Shein, one of the thousands of online services subject to the general rules. But being named VLOP increases the fast fashion giant's regulatory risk. The EU expects Shein's first risk assessment report to be submitted in four months.

Penalties for not complying with the DSA can reach up to 6% of global annual turnover. Although the maximum fine does not increase for VLOPs, with more obligations on them, the level of regulatory risk they are subject to certainly increases.

"The Commission services will carefully monitor the platform's implementation of the DSA rules and obligations, especially with regard to measures to ensure consumer protection and address the spread of illegal products," the EU wrote in a press release accompanying Shein's appointment. It added that it is 'ready to work closely with Shein to ensure that these issues are properly addressed.'

In response, Shein's global head of public affairs, Leonard Lin wrote: 'We share the Commission's ambition to ensure that consumers in the EU can shop online with peace of mind, and we are committed to doing our part. We also share a commitment to the principles of transparency and accountability that are at the core of the DSA, as reflected in our supply chain governance standards and our interactions with our users. We will continue to work constructively with the European Commission to ensure we provide a safe and compliant environment for our online community."

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The European Parliament voted to revise the Packaging and Waste Directive. According to the modification, all packaging must be reusable or recyclable by 2030. Several parties have criticized the modification since the EU has not set uniform logistics standards across Europe.

So far, online sellers have been experimenting with recyclable and reusable packaging on their own volition. Amazon, for example, has started exclusively using recyclable packaging for European deliveries. 

According to the new directive, the European Parliament will provide reusable package quotas. By 2030, at least 10% of all shipments should be sent in a closed system - meaning they should be reusable within their area - This means that packaging needs to be made from materials that allow for recycling or reuse. Also, consumers must return the packaging even when they keep all products included in the order.

Empty boxes moving around… is it a wise choice? 

Although, in theory, the idea is logical, it creates a considerable problem: empty boxes need to be moved in a reverse logistic operation from the customer to the companies to be used again. This, in turn, could spell disaster as carbon fuel-based vehicles will surely be needed, 

“If it is not guaranteed that reusable packaging is accepted across service providers within the EU, we do not consider it acceptable to send empty packaging shipping across Europe in cross-border trade permanently. Returns are caused even if the customer keeps the item”, says Christoph Wenk-Fischer, General Manager at the German association of e-commerce, Bundesverband E-commerce und Versandhandel (Bevh).

To fix this, two possible solutions are being considered: the creation of reusable areas - to limit the distances involved in a potential reverse logistic operation, thus enabling ‘return spots’ for the customers to deliver the reusable packaging in their area. 

A second possible solution will be to manage some deals with carrier companies to guarantee that the inverse logistic operation of the reusable packages will be done using 100% electric vehicles or any other form of 0% carbon foot-print logistics.  

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The European Commission has published a list of the leading digital global companies they call ‘internet gatekeepers’ and will subject them to the new DMA (Digital Markets Act) rules. 

The new DMA aims to fight against anti-competitive practices. In total, they have presented a list of six "service gatekeepers" who will now have six months to present a study detailing the measures they will take to ensure compliance with the new regulations.

The adoption of these new rules in July 2022 aims to streamline the process of sanctioning large technology platforms, avoiding the lengthy procedures previously seen. The DMA is now responsible for identifying and sanctioning anti-competitive behavior previously identified in various sectors.

The European Union has designated gatekeepers according to the following definition: "they provide an important gateway between businesses and consumers about the platform's core services." In addition, they meet requirements such as being used by more than 45 million Europeans, having at least 10,000 professional customers, being valued at more than €75 billion, or having earned more than €7.5 billion in Europe in the last three years.

Who are the ‘gatekeepers’ subjected to the new DMA? 

The gatekeepers are mainly large technology companies, including Google, Apple, Facebook, ByteDance, Amazon and Microsoft.

"With today's designation, we are finally curbing the economic power of six gatekeepers, giving consumers more choice and creating new opportunities for smaller innovative technology companies, thanks, for example, to interoperability, data transfer, real-time data portability, and fairness. It is high time for Europe to set the rules of the game from the outset to ensure that digital markets are fair and open," said Thierry Breton, Internal Market Commissioner.

These platforms will have to comply with obligations such as:

• Provide businesses advertising on their platform with the tools and information necessary for advertisers and publishers to perform the independent verification of their ads hosted on the gatekeeper.

• Allow its business users (companies or vendors using the platform) to promote their offers and conclude contracts with their customers outside the gatekeeper platform.
• Allow your business users (companies or vendors using the platform) to access the data they generate using the gatekeeper platform.

Google and Amazon answer

In Alphabet's case, they have published a post on the Google blog showing that they are working on complying with the regulation. "In our case, for example, we will need to continue to deepen the work we have done to provide consumers with information and opportunities to switch platforms or manage their data (as is the case with Google Takeout or Google Transparency Reports). We will also need to remind users of the options available (as is the case with the choice screens we already offer in Europe)" they share in the blog. 

Amazon, on the other hand, has filed an action against the EU courts, as they consider that this law faces risks associated with companies that have advertising as their main source of income. The US marketplace argues that the vast majority of its revenue comes from its retail business. Something that has also been done by the German online retailer Zalando, which considers that it should not be qualified as a "large platform",

The post The European Commission will subject the internet ‘gatekeepers’ to the new DMA appeared first on Cross-Border Magazine.

The European Commission considers it time to reform its customs system, set up 55 years ago when e-commerce still needed to be fully developed or relatively almost nonexistent and was more of a futuristic idea. 

Aware of the current challenges, the EU seeks to implement new regulations to ensure compliance with EU health and environmental standards, preventing consumers from buying products that do not comply.

In addition, it is proposed to approve the payment of duties on shipments of less than 150 euros, which would strengthen the collection of public revenues and contribute to the public coffers. This measure also seeks to close a loophole in which customs fraud has occurred since, until now, duties were not required to be paid on shipments of lower value.

The proposed measures are based on a report submitted thirteen months ago by a committee of international trade experts. Adopting some of the proposed measures will reduce cumbersome customs procedures, replacing traditional declarations with a smarter, data-driven approach to import monitoring. At the same time, customs authorities will have the tools and resources to properly assess and stop imports that pose real risks to the EU, its citizens, and its economy.

Shipments under 150 euros will now pay tariffs

The central pillar of this new reform is the collection of customs duties - tariffs - on shipments under 150 euros. This will prevent fraudsters from taking advantage of these goods since "up to 65% of these packages entering the EU are undervalued to avoid import customs duties". 

In addition, platforms will have a very relevant role because "they will be responsible for ensuring that customs duties and VAT are paid at the time of purchase, so consumers will no longer have to face hidden charges or unexpected paperwork when the package arrives." 

The second pillar of this reform relates to data control. Companies wishing to bring goods into the EU can register all information about their products and supply chains in the new EU Customs Data Center. 

It will collect data provided by companies and, through machine learning, artificial intelligence, and human intervention, will provide authorities with a 360-degree overview of supply chains and the movement of goods. When the 'Trust and Check' seal is achieved, they can sometimes release their goods into circulation in the EU without any active customs intervention.

Collective customs are the goal of the European Commission

The third pillar is cooperation between countries. With the new system, all member states will have access to real-time data and will be able to pool information to respond to risks more quickly, consistently, and effectively. It will also help ensure the proper collection of duties and taxes to the benefit of national and EU budgets.

The implementation of the reform will be gradual. The e-commerce sector data center will start operating in 2028 with information concerning purchases and sales through digital channels. In parallel, the EU Customs Authority will be created, which will be decentralized and draw on the resources of the Member States. However, the implementation process will last until January 1, 2038, as all sectors will be progressively added.

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The Commission states that Amazon has benefitted from a tax deal granted by the Luxembourg government that allowed the company to reduce its tax bill by €250m from 2006 to 2014. Amazon has been ordered to pay that sum, plus interest, but has so far refused to comply. They state to have paid tax in full accordance with both Luxembourg and the international tax law.

Besides the Amazon case, the Irish government is accounted for the lack of effort in collecting the correct tax owed in regard to the Apple ruling. Ireland is not amused by being threatened with action in the European Court of Justice for failing to collect 13 billion Euros supposedly owed by Apple.

The irony in the Amazon case is that EU Commission president Jean-Claude Juncker was Luxembourg’s Prime Minister from 1995 up until 2013. During a great deal of that period also served as finance minister too, persisting over the government that made the tax arrangements possible and now heads up the organisation that is condemning the same deals.

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Who?
Harrie Temmink is currently the Acting Head of the Public Interest Services unit, DG Internal Market, Industry, Entrepreneurship and SMEs and the European Commission. The unit is responsible for postal and parcel affairs, gambling services; and other services of general economic interest such as energy, water, health and education. Harrie has a Dutch Law degree as well as a Spanish Language and Literature degree from the University of Utrecht (the Netherlands).

What about coffee?
Like many of his fellow Dutchmen, Harrie is an enthusiastic coffee drinker. Before lunchtime he has usually already had a cup, if not more!  At work, he prefers Nespresso Lungos. At the weekends, he tries to limit himself to one cup a day (but not a Nespresso!), at breakfast. When he goes out for lunch or dinner, he likes to have an espresso after his meal.

Why is delivery such a crucial element of successful cross-border e-commerce and therefore also of the digital single market?
Delivery is a key factor in the overall development of e-commerce, in particular of its cross-border development. There are many challenges for postal operators and e-retailers which can have major effects on the customers. Studies show that delivery-related problems heavily influence whether e-shoppers finalise their purchases. Consumers too often don’t know what delivery options may be available to them, when their order will arrive, and how they can return it if they so wish.

Many retailers, SMEs and larger ones, still seem to struggle with cross-border logistics. What do you think the reasons are?
The delivery market is a diverse and complex one, with different operators offering many different services and prices depending on many features such as weight, size and format, as well as destination and number of items. This makes it difficult for e-retailers and e-shoppers to access comparable information about delivery, resulting in sub-optimal choices. In addition, one in five e-retailers say they are only aware of one delivery operator, but the average number of alternatives is, in fact, three to four operators.

The European parcel market can generally be characterised as a tight oligopoly – although more competition can be identified in specific markets. One of the consequences of this is that the list prices for cross-border delivery from the traditional postal operators are on average three to five times higher for parcels than their domestic equivalents. These differences cannot be explained by labour costs or other costs in the destination country. This is particularly an issue for low volume senders of cross-border parcels such as SMEs and individuals who have less bargaining power to negotiate tariffs directly with the parcel delivery operators. There also regulatory and administrative requirements such as customs regulation and complicated VAT procedures.  The lack of inter-operability between delivery companies in two different countries is another major factor that complicates cross-border logistics.

Wouldn’t you say the forces of a growing market will regulate these problems over time, wouldn’t that be better than policy makers interfering?
In principle, I agree. In 2012 the European Commission organised a broad consultation of e-retailers, postal operators, users, national authorities etc. Indeed, the responses showed us that the interested parties expressed, in essence, a preference for industry-driven measures. Therefore, the European Commission's roadmap for completing the Single Market for Parcel Delivery of December 2013 largely contained actions of a self-regulatory nature. We stimulated the creation of pan-European trustmarks for the e-commerce sector, which were later established by companies such as EMOTA and ECommerce Europe, containing criteria for the quality of parcel delivery services.  

However, there is an additional role for policy makers when market forces alone cannot repair the imperfections in the market. This is why we have come forward with a proposal for a regulation on cross-border parcel delivery services to improve price transparency for cross-border EU deliveries and to enhance competition. In a broader context, legislation may be necessary in order to guarantee decent employment conditions and basic consumer rights.

How will the new platform "Deliver in Europe" help to solve their problems?
The objective of the "Deliver in Europe" platform is to improve the transparency of information on existing parcel delivery solutions, particularly for cross-border delivery. The platform is set up as a "one-stop" information point for e-retailers on existing eLogistics solutions, presenting and comparing all the different solutions available. The information platform should give SMEs effective tools to improve their bargaining power. The EU is co-funding this (private) project which will hopefully become operational by the end of 2016.

Do you think there is enough interaction between EU policy makers and the industry and consumers? What actions are taken to improve the information flow and interaction between these three?
The door is always open at the European Commission! We try to reach out as much as possible to e-retailers, parcel operators, consumer representatives… During the last few years, for instance, we hosted several major workshops to bring interested parties together. The Postal User Forum was intended to sound out the customers of the parcel delivery services. We are also active in the European Social Dialogue Committee and we have frequent meetings with the national regulators, in particular in the context of the European Regulators Group for Postal Services (ERGP). Finally, no new initiatives are considered without a proper public consultation which feeds the so-called "impact assessments".

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