European Union to make e-commerce platforms liable

The European Union is planning to make e-commerce platforms such as Temu, Shein and Amazon Marketplace (AMZN.O), opens new tab liable for dangerous or illegal products sold online, the Financial Times reported on Saturday.

Customs reforms would oblige online platforms to provide data before goods arrive in the EU, allowing officials to better control and inspect packages, according to a draft proposal seen by FT.

Currently anyone who purchases goods online in the EU is treated as the importer for customs purposes, but the new reform will hold the platforms responsible, the newspaper reported.

Online retailers would have to collect the relevant duty and VAT and ensure the goods comply with other EU requirements, the report said.

Customs data from the 27 national authorities will be pooled and a new central EU customs authority (EUCA) set up, according to the FT.

“The EUCA would be able to screen the goods based on this information and to identify potential risks, even prior to the loading of the goods for transport or their physical arrival in the EU,” the FT said, citing the draft.

Amazon, Shein, and the EU did not immediately respond to a Reuters request for comment outside business hours. Temu could not be immediately reached. — Reuters.

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