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.