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EU Overhauls Customs System, Targets Non-Compliant E-Commerce Platforms

The European Union has agreed to a major overhaul of its customs system, introducing stricter rules for online marketplaces, particularly those based in China, which could face fines if they sell illegal or unsafe products into the bloc.

The 27-nation EU aims to improve coordination of duties and safety checks as it struggles to manage the rising volume of low-value e-commerce parcels, which reached 5.8 billion in 2025. Representatives of the European Parliament and EU governments struck a provisional deal late Thursday after lengthy negotiations to clarify final details.

Under the new framework, online platforms that sell into the EU will be treated as importers, making them responsible for both duties and product safety. Companies that repeatedly violate EU rules could face fines ranging from 1 to 6 percent of their total sales into the bloc over the previous 12 months.

Currently, customs duties are not applied to parcels valued below €150, a loophole that has fueled rapid growth of platforms such as Shein, Temu, and AliExpress, which ship directly from China to European consumers. The EU plans to remove this exemption and introduce a €3 fee starting in July as an interim measure, with the European Commission determining an additional handling fee to take effect from 1 November.

The agreement also establishes a centralised customs authority to oversee the new system. French city Lille has been selected as the location of the future EU Customs Authority (EUCA), which will employ 250 staff. The EUCA will manage a new digital data hub to track incoming goods. The hub is set to begin covering e-commerce consignments in 2028 and expand to all imported goods by March 2034.

Next week, the EU will send a nine-member delegation to Beijing and Shanghai to engage with Chinese legislators, market regulators, and companies including Shein, Alibaba, and Temu. The visit will address challenges in digital trade, fair competition, and compliance with EU product safety standards.

The bloc’s concerns over imported goods were highlighted by a recent European Commission study showing that 60 to 65 percent of cosmetics, food supplements, and personal protective equipment, including bicycle helmets, failed to meet EU safety rules. “A top concern … are the systemic breaches of EU laws and the high volume of non-compliant small parcels coming from non-EU online platforms, including from China,” the EU statement said.

The upcoming visit will be the first EU parliamentary engagement in China in eight years and is expected to focus on digital regulation, consumer protection, and enforcement of product safety standards.

The European Union agreed to an overhaul of its customs system, including a crackdown on mainly Chinese e-commerce platforms that face potential fines if they sell illegal or unsafe products into the bloc.

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Fraudsters are increasingly using AI-generated images and videos to trick people into handing over sensitive personal and financial information, according to FraudSMART, the financial crime awareness initiative operated by the Banking and Payments Federation Ireland (BPFI). The organisation has reported a rise in online adverts promoting fake, State-backed investment schemes. These scams often use fabricated images of well-known politicians and business figures to make the offers appear legitimate and encourage users to click on registration links. Niamh Davenport, head of financial crime at BPFI, said scammers are deliberately exploiting recent media coverage of a planned State-backed savings and investment scheme to give their frauds a sense of credibility. “They often claim the scheme is open to everyone, but that places are limited and being ‘snapped up’ fast, in order to pressure people to act quickly,” she said. “They typically promise guaranteed returns or a guaranteed monthly income.” FraudSMART said that while anyone can be targeted, people in their early 50s are particularly vulnerable to investment scams. This age group is often focused on retirement planning, making them more receptive to financial offers that appear secure or high-yield. According to the organisation, most scams follow a similar pattern. Victims are first directed to click a registration link and complete a short online form providing their contact details. They are then contacted by someone posing as a financial adviser, who urges them to make an immediate “security deposit” to secure participation in the scheme. Once a payment is made, the money is quickly moved through multiple accounts, often overseas, making recovery extremely difficult. Davenport warned that scammers are becoming more sophisticated in their use of technology, particularly AI tools that allow them to create realistic but entirely fake promotional content. These materials are designed to mimic legitimate financial advertisements and build trust with potential victims. Recent figures from An Garda Síochána show investment fraud rose by 20% last year, with losses exceeding €20 million. The scale of individual scams varies widely, ranging from smaller crypto-related frauds involving a few hundred euro to large-scale investment schemes where victims lose tens of thousands. FraudSMART is urging the public to remain cautious when encountering online investment advertisements, especially those promising guaranteed returns or requiring urgent action. It also advises consumers to avoid sharing personal information with unverified sources and to be wary of pressure tactics designed to rush financial decisions. Authorities continue to warn that fraudsters are adapting quickly, using advanced digital tools to target victims across multiple platforms.

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Fraudsters are increasingly using AI-generated images and videos to trick people into handing over sensitive personal and financial information, according to FraudSMART, the financial crime awareness initiative operated by the Banking and Payments Federation Ireland (BPFI). The organisation has reported a rise in online adverts promoting fake, State-backed investment schemes. These scams often use fabricated images of well-known politicians and business figures to make the offers appear legitimate and encourage users to click on registration links. Niamh Davenport, head of financial crime at BPFI, said scammers are deliberately exploiting recent media coverage of a planned State-backed savings and investment scheme to give their frauds a sense of credibility. “They often claim the scheme is open to everyone, but that places are limited and being ‘snapped up’ fast, in order to pressure people to act quickly,” she said. “They typically promise guaranteed returns or a guaranteed monthly income.” FraudSMART said that while anyone can be targeted, people in their early 50s are particularly vulnerable to investment scams. This age group is often focused on retirement planning, making them more receptive to financial offers that appear secure or high-yield. According to the organisation, most scams follow a similar pattern. Victims are first directed to click a registration link and complete a short online form providing their contact details. They are then contacted by someone posing as a financial adviser, who urges them to make an immediate “security deposit” to secure participation in the scheme. Once a payment is made, the money is quickly moved through multiple accounts, often overseas, making recovery extremely difficult. Davenport warned that scammers are becoming more sophisticated in their use of technology, particularly AI tools that allow them to create realistic but entirely fake promotional content. These materials are designed to mimic legitimate financial advertisements and build trust with potential victims. Recent figures from An Garda Síochána show investment fraud rose by 20% last year, with losses exceeding €20 million. The scale of individual scams varies widely, ranging from smaller crypto-related frauds involving a few hundred euro to large-scale investment schemes where victims lose tens of thousands. FraudSMART is urging the public to remain cautious when encountering online investment advertisements, especially those promising guaranteed returns or requiring urgent action. It also advises consumers to avoid sharing personal information with unverified sources and to be wary of pressure tactics designed to rush financial decisions. Authorities continue to warn that fraudsters are adapting quickly, using advanced digital tools to target victims across multiple platforms.

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