Articles under "#e-commerce" category

Issue: WCO News 94 February 2021

New documents added to the WCO E-Commerce Package

The WCO Council adopted the final documents missing from the WCO E-Commerce Package at its December 2020 Session. The documents are three Annexes to the Framework of Standards on Cross-Border E-Commerce Technical Specifications entitled “Reference Datasets for Cross-Border E-Commerce”, “Rev...

The document on “Reference Datasets for Cross-Border E-Commerce” provides examples of datasets which Customs administrations are currently collecting, either as part of a pilot project or when implementing the Framework, to effectively track, target and identify small e-commerce shipments.

Issue: WCO News 96 October 2021

Now is the time for implementation

In many countries, statistics show a strong uptake of online sales and a big increase in the market share of online as opposed to offline retail since the start of the pandemic. In COVID-19 and e-commerce: a global review, the United Nations Conference on Trade and Development reported t...

WCO standards and guidance material

To address this issue, WCO Members have been working through a multi-stakeholder Working Group on E-Commerce (WGEC)[1] on the development of interna...

Issue: WCO News 96 October 2021

Reviewing the e-commerce clearance process: the experience of Argentina

The WCO defines cross-border e-commerce as “All transactions which are effected digitally through a computer network (e.g. the internet), and result in physical goods flows subject to Customs formalities”.[1] Like many countries, when talking about cross-b...

Diagnostic

The diagnostic addressed each standard of the WCO Framework: for each standard, a list of questions was drafted, with the aim of shedding light on existing proc...

Issue: WCO News 103 – Issue 1 / 2024

Strengthening E-Commerce Compliance: overview of Brazil Programa Remessa Conforme

Brazil’s Customs Authority and private sector representatives worked together to develop a compliance programme dedicated to e-commerce companies. Launched in August 2023, the programme is a testimony to how Customs-Business partnership can shape regulatory frameworks and foster innovative solu...

The work undertaken at the WGEC led to the development of the WCO Cross-Border E-Commerce Framework of Standards, approved by the WCO Council in June 2018. The Framework is a testimony to effective public-private collaboration, shaping norms, systems, and processes. It also promotes such partners...

Partnership

Brazil’s legislation, crafted over two decades ago, proved inadequate for the volume of trade. In 2020, the Procomex Institute, the operational arm of the Pr...

Issue: WCO News 96 October 2021

USCBP latest initiatives to strengthen enforcement capacity for e-commerce shipments

E-commerce is a growing segment of the economy of the United States. It made up 10.7% of the total retail sales in 2019 and 14% in 2020[1]. In 2020 alone, e-commerce sales in the U.S. grew over 40% and reached $791.8 billion U.S. dollars in value

In coordination with the ETF, CBP mapped business models specific to e-commerce, identified parties responsible for the sale and movement of goods, and established which parties had access to and could provide additional data with which to better assess e-commerce risk. This effort to receive adv...

Entry Type 86 Test

In addition to the Section 321 Data Pilot, in September 2019 CBP also conducted a test of a new entry process for Section 321 shipments, including those...

Issue: WCO News 96 October 2021

Blockchain, artificial intelligence and big data: how Korea Customs Service leverages technology to supervise e-commerce

Korea Customs Service (KCS) has introduced a range of measures since early 2010 to respond to a growing number of imports and exports generated by online sales and purchases by both businesses and individuals, given the strong upward trend in cross-border e-commerce.

KCS previously describ...

Strengthening data capture through blockchain

At the moment, assessing risk presents some constraints, given the low quality of data available. One way to strengthen the risk management system would be to obtain the data, including the va...

Issue: WCO News 88

Australia’s Vendor Collection Model explained

The growth of e-commerce has contributed to significant increases in the volumes of goods crossing Australia’s borders. Between 2013 and 2016, the volume of inbound air cargo and international mail parcels increased by 57%. Between 2017 and 2021, Australia expects a 30% year-on-year growth in a...

What other models were considered?

Australia considered alternatives to this model, including:

  • the traditional or border collection model, which is the current model for collecting GST, Customs duties and oth...

Issue: WCO News 96 October 2021

Peru develops new processes and services to facilitate and secure cross-border e commerce

In Peru, the importation of goods purchased online has increased by 23% annually over the past five years. Consumers and companies buy products through marketplaces such as AliExpress, Amazon, eBay and Wish from sellers mostly located in Asia, the United States and Europe. Products are mainly tra...

A new clearance process for express shipments

In Peru, some 1.3 million shipments are imported every year by express air carriers. Since the end of 2020, ESERs are responsible for declaring shipments and must transmit all...

Issue: WCO News 84

Cross-border e-commerce in China

 

E-commerce – the trade in goods and services via the Internet – has become a growing component of the global economy, and cross-border e-commerce a major topic of discussion for Customs authorities. Accordingly, the WCO has placed this subject high on its agenda, including:

...

Issue: WCO News 88

Standardizing platforms and adapting to the latest technological solutions available is the way forward

Technology is changing at what seems like an ever-increasing pace, raising discussion about autonomous cars and the future of employment, as well as the future of trade. Whilst cars are not quite driving themselves yet, global trade has seen a dramatic shift in the way that we shop.

I am t...

The Express Industry is an innovative industry by nature, bolting together extensive air and road networks, local pick-up and delivery services, and massive information technology (IT) services to create one integrated and secure supply chain, driven by the needs of our customers.

A major ...

Issue: WCO News 94 February 2021

What the example of Montenegro’s new pre-arrival processing capabilities tell us about Customs performance measurement

* The views expressed in this article are the authors’ own and do not necessarily represent those of their organisations

In June 2019, the Montenegro Customs Administration (MCA) impl...

Below is a step-by-step description of the procedure:

  • Prior to loading:
    • Company receives shipment instructions (booking details) from its customers along with standard information about the goods. The customer also provides additional documents necessary for import clearance...

      The implemented PAP procedure is a significant departure from the pre-existing paper-based control system. At the time of concluding the assessment, 7% of all of the country’s imports were handled using this procedure. Data from DHL show that the rate at which parcels are cleared within 1 hour...

Issue: WCO News 104 – Issue 2 / 2024

Managing risk in the context of electronic commerce: Spotlight on Burkina Faso Customs

The WCO defines cross-border electronic commerce (E-Commerce) as “all transactions which are effected digitally through a computer network (e.g. the internet) and result in physical goods flows subject to Customs formalities”.[...

Since 2017, the express courier operators have been forwarding – both electronically and in paper format – the lists of the parcels for delivery in Burkina Faso before their arrival or departure, and they are responsible for completing the Customs formalities on behalf of their customers.

...

As pointed out in the summary table (Table I) of shipments managed by BF Post and DHL both on entry to and departure from the territory, over the 2017-2023 period, BF Post and its subsidiary CHRONOPOST[1] transported fewer parcels (192,764) than DHL (205,18...

Issue: WCO News 78

Facilitating e-commerce

With the diffusion of user-friendly technologies and increasing penetration of the Internet globally, e-commerce is witnessing exponential growth: the global online retail market now topping 1 trillion US dollars a year, and is set to double within four years.

Some of these online transact...

Issue: WCO News 78

E-commerce and revenue collection

Many countries have seen a significant and rapid growth in the volume of low-value imports of physical goods on which duties and taxes are not collected. There are growing concerns about matters related to potential revenue loss, fraud, and the disadvantages experi...

Issue: WCO News 78

Supporting e-commerce: Korea Customs Service’s strategy

Cross-border e-commerce is increasing sharply in Korea. This is not surprising given that the country ranked No.1 in the world in terms of Internet connection speed at the beginning of 2015, and that the Korean economy is extremely dependent on foreign trade. Howev...

Issue: WCO News 78

Australia’s tax reforms and e-commerce: a country perspective

The rapid growth in e-commerce has facilitated Australia’s increasing domestic appetite for Internet-based trading and online shopping. Although recent online growth has been more subdued than the 20-30% annual growth rates recorded in earlier years, it is expected that growth will continue and...

Issue: WCO News 91 February 2020

Customs partners with express carriers to fight illicit trade in Hong Kong

Hong Kong Customs’ enforcement strategy is multi-pronged. The administration attaches equal importance to developing efficient enforcement tactics, educating the public and engaging with it, maintaining close collaboration with its overseas enforcement counterpar...

Memoranda of Understanding

After some discussions, in March 2015, Hong Kong Customs signed Memoranda of Understanding (MOUs) with five major express courier operators, namely DHL Express (Hong Kong) Limited, Federal Expre...

Issue: WCO News 101 – Issue 2 / 2023

GEA’s Customs capability database

The Global Express Association (GEA) collects key performance indicators on the efficiency of Customs processes in currently 120 countries and territories. They are structured in a fully searchable online database that is publicly available on the association’s w...

All the investments that express delivery carriers constantly make to improve their network give them firm administrative and physical control over the parcels. Shipments tend to stay in an express carrier’s network throughout their journey. Track-and-trace capability allows carriers and their ...

Firstly, GEA’s objective is not to rank countries or point fingers at anyone. Rather, it wants to offer a contribution to the discussion on improving trade facilitation and on the level of implementation of the most important international treaties on this matter.

Secondly, the database ...

Issue: WCO News 90 October 2019

E-commerce security and safety concerns require forceful action

The flow of consignments delivered by postal operators or express courier services, sometimes over borders, is increasing at a rapid rate. Most of the consignments are small and generally of “low value.” The fact that the value is low often means not only are t...

Today, it is widely recognized that the growing e-commerce sector is beneficial to economies, providing new growth engines, developing new trade modes, driving new consumption trends, and creating new jobs. It has especially opened up growth opportunities to micro, small and medium-sized enterpri...

Issue: WCO News 103 – Issue 1 / 2024

Indonesia implements automated data exchange with e-commerce marketplaces

In Indonesia, the number of individuals purchasing goods online continues to rise annually, and it is estimated that 73% of the population made at least one transaction through a computer network in 2023. Bank of Indonesia has reported that, in 2022, e-commerce transactions reached USD 30.5 billi...

Under the DDP scheme, marketplaces must include and collect import duties and/or taxes in the price of goods. They must also connect their IT systems to Indonesia Customs Excise Information System and Automation (CEISA) to enable automatic exchange of data. Two categories of data are exchanged: t...

Issue: WCO News 105 – Issue 3 / 2024

Measuring cross-border e-Commerce: how adopting an ICT-driven approach can facilitate greater accuracy

This article explores three approaches that could facilitate a more accurate, practical and tenable measurement of the size and value of cross-border e-commerce, enabling governments to obtain a clearer picture of its actual contribution to the economy.

...

Survey-based approaches

Most of the methods developed by international organizations so far are based on surveys. In 2023 the United Nations Conference on Trade and Development (UNCTAD) published a document entitled

Issue: WCO News 101 – Issue 2 / 2023

Finnish Customs experiments with the carbon footprint calculator

A host of Finns imported goods from outside the European Union (EU) in 2022 for their private use. Of these individuals, 250,000 used the Customs Duty Calculator

At the time, Finnish Customs was implementing a strategy that included a component for pilot projects. The budget for pilot projects made it possible to start cooperation with VTT, one of Europe’s leading research institutions. VTT already had experience in the area of carbon footprints and had...

Issue: WCO News 91 February 2020

Dubai Customs introduces blockchain-based platform to facilitate cross-border e-commerce

Dubai, the second largest emirate of the UAE, stands among the fastest growing e-commerce markets in the Middle East and North Africa (MENA), bearing the fruits of adopting incentivizing policies and “smart government” initiatives. Recently, the Government of Dubai rolled out the emirate’s ...

E-commerce challenges

With a 25% yearly growth rate, the MENA region is the world’s fastest growing e-commerce market. Dubai consumers and businesses are major contributors to this growth, which is expected to continue ...

Issue: WCO News 102 – Issue 3 / 2023

The importance of data in DHL Express

Quality data is the lifeblood of an efficient Customs clearance process. All Customs tasks and responsibilities are performed, at least in part, on the basis of data received from businesses engaged in trade – for example, data for purposes of revenue collection, risk management, admissibility ...

Educating customers

Usually, express couriers’ shippers are their customers. They consist of big and small companies selling goods, as well as private individuals who may or may not be selling goods, or wish to return the goods they bou...

Issue: WCO News 86

Clearance of express cargo and postal items: Korea tests new analytical tools to root out fraud

Customs administrations collate a significant volume of data on a daily basis. For instance, the Korea Customs Service (KCS) accumulates 45 GB of structured data and 30 GB of unstructured data in its database every day. However, most Customs administrations were until now not able to leverage suc...

The challenge

With the exponential growth in e-commerce, the number of small parcels to be cleared by Customs has skyrocketed, stretching the limits of Customs enforcement capacities. Korea has a tax-exemption system and ...