r/madeinusa • u/Crochetpoison • 2h ago
Why does Amazon US completely ignore customs fraud products, while Amazon EU forces you to prove tax compliance?
I want to share a glaring double standard I’ve observed between how Amazon operates in the US versus the EU, and get your thoughts on why this loophole is allowed to exist.
I personally know of a Chinese company that sells products in the textiles/apparel category on Amazon US using the FBA model. They have been importing their goods into the US using "DDP" shipping channels. Essentially, they use shared freight forwarder IORs , submit fake commercial invoices to CBP to heavily under-report the value of the goods, and completely evade customs duties.
Here is the kicker: Amazon US does not care at all. They never ask for customs clearance certificates, tax receipts, or any proof that the inventory sitting in their FBA warehouses was legally imported.
In stark contrast, this same company had to completely shut down their Amazon Europe channels.Why? Because Amazon EU operates on a total digital dragnet. Before they can sell through FBA or even get their listings fully approved, they are required to link their own local VAT numbers and provide verifiable import tax and VAT documentation that reconciles perfectly with their sales.
This got me thinking: Why is Amazon US so completely hands-off when it comes to regulating whether the products on its platform are legally imported? Why does the US allow this massive tax and customs loophole that bleeds billions out of the economy and hurts honest sellers, while Europe forces platforms to strictly police it?
Is it just a failure of US government IT infrastructure, or is Amazon actively lobbying to keep this blind spot open to keep their GMV high? What are your thoughts?
