Urgent Notice! New EU Cross-Border E-commerce Regulations Take Effect: Local Warehousing + Taxation + Compliance – A Triple Challenge!

The European Parliament officially passed a series of new proposals in July 2025 aimed at improving the efficiency of product quality control. Non-EU sellers will face more severe regulatory pressure! While the proposals have passed the European Parliament vote, specific implementation details (such as the effective date and transitional arrangements) still need to be determined in consultation with the Council of the European Union. However, platforms such as Amazon and Temu have already responded by establishing local warehouses in Europe and adjusting their logistics strategies.

This article, combining official documents from the European Parliament and the latest industry developments, provides an in-depth analysis of the policy details and compliance points.

I. Core Requirements of the New EU Regulations: Three Major Changes Reshaping the Market Landscape

1. Mandatory Local Warehousing, Centralized Inspection for Improved Efficiency

Policy Requirements: All non-EU sellers must establish or lease local warehouses within the EU. Goods must first be centrally stored in local warehouses before being distributed to consumers. Dutch customs data shows that currently, 84% of the 3 million parcels processed daily are transit parcels. The new regulations will significantly improve inspection efficiency, ensuring that goods meet EU safety standards.

Platform Response: Leading platforms like Amazon and Temu have already implemented measures requiring sellers to use local warehouses for shipping and provide local return addresses. Non-compliant products will have their traffic restricted.

2. Cancellation of Tax-Free Policy for Parcels Under €150

The current tax-free policy for parcels under €150 will be completely abolished. All imported goods will be subject to full customs duties (e.g., 12%-15% for clothing) and VAT (19%-27% in various countries). An EU survey shows that 65% of imported goods are deliberately undervalued to evade taxes; the new regulations aim to combat this practice.

3. Differentiated Parcel Handling Fees

Direct Shipping vs. Local Warehousing Cost Difference: A handling fee of €2 per parcel will be levied for direct shipping, while this will be reduced to €0.5 per parcel if handled through a local warehouse. For example, a seller with monthly sales of 100,000 items could save tens of thousands of euros annually by using a local warehouse.

II. Compliance Red Lines for Cross-Border Sellers: Four Key Dimensions for Precise Response

(I) Local Warehouse Layout and Operation Compliance

Warehouse Permits and Inspections: Sellers must apply for permits from the customs of the warehousing country (e.g., the Dutch customs warehousing procedure) and undergo regular safety and environmental inspections. Goods must meet CE certification, EPR, and other requirements.

Cost Optimization Solutions: Small and medium-sized sellers can choose a joint warehousing model, such as Amazon Pan-EU Program, to reduce warehousing costs through "one-country warehousing, multi-country delivery."

(II) Increased Tax Compliance Pressure

VAT Registration Compliance:

Mandatory Registration in Warehousing Countries: Sellers storing inventory within the EU must register for VAT in the country where the warehouse is located. For example, using a German FBA warehouse requires German VAT registration, and Amazon Pan-EU sellers need to register for VAT numbers in at least two of the following countries: Germany, France, Italy, Spain, and Poland.

Customs Duties and VAT Calculation:

With the removal of tax exemption thresholds, low-value goods are subject to customs duties and VAT. Consulting a professional tax service provider is recommended.

(III) Product Compliance: EPR Registration and EU Representative Compliance are Both Indispensable

EU EPR Compliance:

EU Battery Law Compliance Countdown: EU regulations require sellers to complete EPR registration under the EU Battery Law in their sales destination country by August 18, 2025, or face a ban on the sale of their products.

EU Representative Compliance: According to GPSR regulations, eligible sellers must designate an authorized representative within the EU (i.e., the EU Representative) to handle safety issues and regulatory communication. Manufacturers located outside the EU must fulfill their obligations through an EU Representative. Non-compliant companies may face hefty fines or even have their products banned from sale in the EU.

(IV) Platform Policy Adaptation: Latest Rules from Amazon and Temu

Amazon Pan-EU Policy: From June 25, 2025, newly added ASINs to the Pan-EU program must be simultaneously listed on the Dutch platform, otherwise they will lose local delivery eligibility. Existing sellers must complete the synchronization of their Dutch listings within 90 days. Therefore, sellers participating in the Pan-EU program must pay attention to Dutch EPR compliance!!

TikTok Shop and Temu: Sellers are required to use local warehouses for shipping (using EU local warehouses requires VAT registration in the country where the warehouse is located) and provide a local return address. Non-compliant stores will have their traffic support restricted.

III. 2025 Response Strategy: Immediate Action + Medium-to-Long-Term Planning

1. Immediate Actions

Warehouse Layout: Secure core markets such as Germany and France through Amazon FBA, third-party overseas warehouses, or self-built warehouses, referring to Amazon's pan-European program.

VAT Registration: Prioritize VAT registration in the warehousing country to better comply with policies.

2. Medium-to-Long-Term Planning

Supply Chain Optimization: Dynamically adjust inventory using AI forecasting tools, and control the unsold inventory rate below 5% using the "Healthy Inventory Level Tool" to reduce the risk of long-term storage fees.

Compliance Team Building: Consult UK-based Tengbang Accounting Firm promptly on relevant compliance issues to better respond to policy changes and avoid losses due to information lag.

The new proposal in the European Parliament marks a new phase of "localization" in EU regulation of cross-border e-commerce. Non-EU sellers need to restructure their operations across multiple dimensions, including warehousing, taxation, product compliance, and logistics, while closely monitoring policy developments. Sellers relying on cross-border direct mail and selling low-priced goods are especially advised to plan ahead and adjust their operational strategies early.