The EU publishes its plan for safer and sustainable e-commerce
Andrew Thurston · Posted on: February 14th 2025 · read
On the 5th February 2025, the European Commission (EC) published a Communication that outlines its plans for making the e-commerce sector safer and more sustainable. The plans outline the urgent customs reform and the need for coordinated enforcement actions to combat the surge in e-commerce imports.
The communication provides statistics that confirm the significant increase in e-commerce imports into the EU, with 70% of Europeans regularly purchasing products from online sellers. It is interesting to note that there have been significant increases in low value imports since 2022 with 2024 figures suggesting a total of 4.6 billion low value items being received into the EU. This is an increase of 230% since 2022 with an average of 12 million small item imports per day (or 8,333 items per minute!).
Figures provided in the communication suggest that 91% of all e-commerce imports are imported directly from China. As a high proportion of e-commerce imports are clothing, the duty savings alone could amount to 12 percent of the value of the item. These low value supplies are producing cost savings on customs duties which create an unfair playing field for EU-based distributors as they must pay duties on their larger import consignments.
As a high proportion of e-commerce imports are clothing, the duty savings alone could amount to 12 percent of the value of the item.
Within the Communication, it reiterates the need for customs reform which focuses on addressing the risks associated with low value imports. Measures include implementing a new customs code, removal of the €150 duty exemption, introduction of a simplified tariff treatment and extension of the scope of the Import One Stop Shop (IOSS) to cover all goods regardless of value.
In addition to the above, the EU aims to introduce a single ‘EU Customs Authority (EUCA) and EU Customs Data Hub which would be used for import declarations. The Commission consider that the introduction of the EUCA and Data Hub would simplify the risk process and enable greater ‘real time’ identification of fraudulent activities which can be policed more effectively. In principle this would be a major improvement on the current situation in the EU whereby each Member State applies different risk and enforcement processes but there is concern, amongst certain States, that the single hub would present issues with data security, especially where this is held in another State.
Figures provided in the communication suggest that 91% of all e-commerce imports are imported directly from China.
The risks and scale of e-commerce consignments is now a serious global concern and the United States has taken urgent action to review their border controls and have removed the deminimis for tax relief on imports from China. The EU’s communication is suggesting a similar practice with the removal of the €150 deminimis and additional controls to combat the volume of products which are unsafe, counterfeit or otherwise non-compliant which is leading to serious safety and health risks for consumers. There is also the environmental impact of these imports due to the increased carbon footprint associated with the production and shipment of these goods.
Our Baker Tilly International network partners in the Netherlands previously published an article on this matter here: European Commission ‘toolbox’ for safe and sustainable e-commerce | Baker Tilly
Our Customs specialists' thoughts
"It is interesting to note that there have been significant increases in low value imports since 2022 with 2024 figures suggesting a total of 4.6 billion low value items being received into the EU."
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