Problems of Global E-commerce Discussed in the European Union
Some member countries of the European Union (EU) are discussing the “urgent” problems of global e-commerce. The governments of Sweden, Norway, and Denmark have decided to cooperate in the e-commerce sector to stop the sale of products harmful to health and the environment.
The European Union is trying to find solutions to the problems that have emerged with the development of cross-border e-commerce. Products delivered directly to online consumers around the world through e-commerce platforms create a large business area. This situation has raised certain questions in many countries.
Differences in volume, content, and variety of products make it difficult to carry out the physical inspections necessary for the detection of harmful or illegal substances. The absence of a traditional distributor responsible for certifying the compliance of products with European Union regulations on environment, climate, and forced labor has also become a source of concern. For this reason, the European Parliament continues to discuss customs reforms, including the removal of exemptions for products under 150 euros.
In 2023, the European Commission submitted a proposal for the reform of the European Union Customs Code (UCC). The Commission’s proposal also includes the establishment of a new system, especially focused on e-commerce, called “trusted and controlled trade.” It is stated that specific persons will be equipped with functions under the authority of customs; for example, they will be able to open boxes and inspect products. However, it is also warned that while this reform will accelerate the process, it will also bring “increased responsibility.”
E-commerce Platforms Outside the European Union Are Causing Problems
Denmark, Norway, and Sweden want this reform to be implemented as soon as possible. The recent move by the Scandinavian governments draws attention as part of this demand. In a statement by Scandinavian authorities, it was noted that e-commerce platforms outside the EU are causing some problems and difficulties. The statement particularly pointed to the problems experienced with products containing dangerous substances.
On the other hand, the inability to supervise global e-commerce platforms based in the Far East, such as Temu, Shein, and Wish, stands out as a major problem. The fact that there is no business in direct contact with consumers in Europe apart from logistics companies, the lack of compliance responsibility of these platforms, and the inability to supervise them are seen as other concerning issues. Additionally, it is stated that the differences in customs practices within the EU can be easily exploited.