How will cross-border ecommerce affect the customs declaration and inspection?
International ecommerce is called cross-border ecommerce, when consumers buy online from merchants, located in other countries and jurisdictions. In today’s complex economic world, neither individuals nor nations are self-sufficient. In 2012, Cross-border ecommerce sales reached $300 billion, while global online trade is expected to rise to $1.4 trillion by 2015. We can find that fast-developing business is changing the way of doing business in almost all aspects especially for the customs. Customs declaration and inspection are of great importance when a country importing goods or exporting. ...view middle of the document...
Cross-border ecommerce is a convenient and creative way of doing business. And it is quite different from the traditional international trade. First, only big companies can do cross-border trade in the past, and the size of the contracts is usually enormous. But now thanks to the booming of the e-commerce platform, every single one can be an “importer” or “exporter”. And there may be only one or two things in the transaction. So e-commerce have increased customs’ workload a lot. Secondly, cross-border ecommerce has a quite special point is that the goods can be fake or low-quality at a relatively high frequency. The option to return products bought through the internet is an important aspect of consumer rights, however, the costs incurred in dealing with cross-border returns are a burden on e-traders.
3.0 The current policy on customs and the changes should be made
Because tariff is an important source of the country’s tax income and tariff can help protect the domestic market , every country has strict customs policies. But when applying these policies on cross-border ecommerce, there are many disadvantages. For example, when the seller exports his goods to another country by mail or express, he cannot refund his export taxes. And e-traders are often small businesses and, as a result, are more sensitive to the costs incurred as a result of customs procedures. Such cases are very common when dealing with the customs. Complicated and overly-burdensome customs procedures create costs and administrative problems for e-commerce businesses. Some businesses even have stated that customs procedures have contributed to their decisions not to enter certain markets. This is a major barrier which has slowed down the expansion of international ecommerce.
In order to stimulate the expansion of global e-commerce, some changes in customs should be made. Take the declaration as an example, in Ukraine, it was noted that EDI file (a kind of standard file accepted globally) are not accepted; instead, each parcel must be declared. That is to say, in Ukraine, e-traders have to carry out this work themselves. While this will certainly lower the working efficiency. To improve the situation, different countries should have a standard specification. Like in EU, cause EU has developed a single market through a standardized system of laws that apply in all member states, if all countries can share a unified law applied to e-commerce, like that small amount of goods can be declared at one time, things will be much better.
What is more, the cost of...