The Parliament, which is next week set to vote on a new report on e-commerce and low value parcels from third-country platforms, wants to see tighter EU rules on drop-shipping and “deemed importers”, as well as measures to counterbalance China’s influence on trade rules.
According to internal compromise amendment documents (one, two, three) seen by Euractiv, the European Parliament wants the Commission to tighten enforcement to address the surge of low value Chinese parcels entering the EU.
EU lawmakers also want the Commission to address drop-shipping-related issues, as it warns “a significant share of dropshipped products fail to comply with safety standards”.
Dropshipping, which is used by online retailers such as Shein, allows the retailer not to hold products in stock but just directly order them from the manufacturer.
The parliament is concerned the practice “complicates enforcement due to untraceable businesses and cross-border complexities” on VAT and data protection compliance issues, as well as flagging product safety concerns.
Furthermore, the lawmakers want the Commission to address the definition of a “deemed importer” under the EU’s online governance rulebook, the Digital Services Act (DSA), to ensure that customers are not seen as importers under EU digital rules.
The platforms should also be responsible for VAT and customs duties, which should be “collected at the point of sale”, according to the document.
In response to the recent Commission’s proposal on introducing a €2 handling fee on low value parcels, the lawmakers ask the EU “to undergo a proper evaluation if the proposed amount complies with WTO rules”. They have said that the amount should be proportionate and compliant with global trade rules and should not be incurred by the consumer.
MEPs also back a call “to counterbalance China’s influence” and want the Commission to step up in cooperating with the WTO, WCO, G7 and other international forums. But they have also said that the EU needs to cooperate with China to create “transparent certification requirements” to ensure compliance with EU product safety and consumer law rules.
Parliamentarians have also struck compromises asking the Commission to enforce existing laws on product safety standards, consumer laws, DSA, and to waive the duty-free thresholds for goods under €150.
The compromises are set to be voted on in the Parliament’s internal market committee (IMCO) next week.
(nl)