Rethinking Cross-Border Commerce: EU Moves to Rein in Cheap Imports

The European Parliament is stepping up efforts to manage the growing wave of low-cost, non-compliant goods entering the EU, particularly from non-EU online retailers. With up to 12 million small e-commerce parcels flooding the EU daily, the newly adopted proposals aim to modernize customs, boost safety checks, and level the playing field for EU-based sellers.

What’s Driving the Change?

The volume of parcels outside the EU, often from platforms like Temu, Shein, and others, has overwhelmed customs and surveillance authorities. Take the Netherlands, for example: Customs processes around 3 million parcels daily, with 84% destined for other EU countries. As the European Commission continues pushing for fairer trade practices, the Parliament’s vote signals that member states want practical tools, not just policy talk.

Key Takeaways from the Proposals

The European Union is considering a set of sweeping customs reforms aimed at increasing oversight, ensuring fair competition, and modernizing enforcement tools.

Local Warehousing Requirement for Non-EU Sellers

One of the most significant proposals is non-EU traders’ push for EU-based warehousing. This move would mean that platforms selling to European consumers, especially those offering low-cost goods, must set up operations within the EU.

This approach offers two major advantages:

• It simplifies customs inspections, allowing authorities to check bulk shipments instead of individual parcels.
• It encourages compliance with EU safety and consumer protection rules before goods reach end users.

Major platforms like Amazon and Temu are already ahead of the curve, expanding their warehousing footprints within Europe.

Eliminating the €150 Customs Duty Exemption

Currently, goods valued under €150 are exempt from customs duties, a loophole many overseas sellers exploit by undervaluing shipments. The EU estimates that 65% of incoming packages are deliberately undervalued to avoid these fees.

By removing this threshold, the EU aims to:

• Boost fair competition for EU-based retailers
• Recover lost customs revenue
• Deter abusive pricing strategies

Proposed €2 Handling Fee

To further discourage high-volume, low-value imports, the Parliament is reviewing the introduction of a €2 handling fee per package from outside the EU. While still under consideration, the measure is designed to offset the operational burden on customs authorities without penalizing consumers, a key concern during the upcoming negotiations with the Council.

Investing in EU Customs Tech: AI & Blockchain

Beyond policy, the EU is advocating for more funding and tech enablement. Customs authorities could soon be equipped with AI-based screening systems and blockchain-enabled traceability tools, improving enforcement efficiency and data accuracy across member states.

What’s Next?

While these proposals are a big step forward, they’re not the law yet. The final details of the implementation will emerge from negotiations between the European Parliament and the EU Council. However, if approved, these measures could profoundly change how global e-commerce platforms operate in the EU and reshape logistics and pricing strategies.

Why the New EU Customs Rules Matter for the E-commerce Ecosystem

• Retailers and marketplaces within the EU could benefit from reduced unfair competition.
• Logistics providers may see a shift in volume distribution from direct-to-consumer shipping to regional warehousing models.
• Consumers could experience longer delivery timelines, slight price adjustments, and higher product quality and safety standards.

In short, the EU aims to raise the bar, making the system smarter, fairer, and better protected.