Cross-Border E-commerce to Consumers, Digital Product Passports (DPP), and the Role of Authorities

Abstract

The ever-growing volumes of e-commerce trade from outside the EU directly to consumers is an increasing challenge globally for customs and market surveillance authorities. In 2024, “4.6 billion of such low value consignments [up to EUR 150] were imported in the EU, almost twice the number recorded in 2023 (2.4 billion), and more than tripled since 2022 (1.4 billion)” (COM, 2025a, p.2). This steep increase in volumes makes it very hard for authorities to monitor and control these flows. However, difficulties to efficiently and effectively manage compliance of these flows, is arguably resulting in unsafe or unsustainable products entering the EU market or unfair competition as products that do not comply to stringent EU requirements are able to enter the market. For example, a recent investigation carried out by 27 customs authorities and 108 market surveillance authorities as part of a EU-wide large-scale operation1 where around 20 000 pieces of toys and small electronics were checked, indicate that many of the products checked had issues with following EU product standards. Having in mind the growing volumes of e-commerce flows, there is an urgent need for authorities to get a better grip to address the cross-border e-commerce compliance monitoring challenges.

Legislative changes that concern both customs and market surveillance authorities are under way. Concerning customs, the ambitious EU Customs Reform was approved on 26 March 2026 by EU Member States and the European Parliament (EU, 2026). The three pillars to the Customs Reform are (1) Smart data-driven approach to customs checks, which will include the establishment of an EU Customs Authority and an EU Customs Data Hub, (2) a strong partnership with businesses, and (3) a modern approach to e-commerce. At the same time, new legislative changes under the Product Act will also affect the way of working of the EU market surveillance authorities. Addressing the issue of authorities in monitoring the steep increase of cross-border e-commerce flows needs to be seen in view of these recent developments.

In the meantime, in 2025, the European Commission published a communication on A Comprehensive EU Toolbox for Safe and Sustainable E-commerce (COM, 2025a), where digital tools, including Digital Product Passports are seen as a potential part of the solution. In the European Union, Digital Product Passports (DPP) were initially seen only as an instrument to foster ecodesign and circularity and to improve market surveillance. The latter has acquired new importance also to solve e-commerce compliance challenges and the DPP concept is increasingly also seen as a tool to address wider concerns including administrative burden reduction. The upcoming EU Product Act (Q3 2026) of the is anticipated to further strengthen this role of DPPs. The Digital Product Passports are still under development and while they are considered as an element for the solution to address cross-border e-commerce monitoring challenges, what role they can play in this context needs to be further understood....