Customs and Cross-Border E-Commerce

Summary: 1.- Causes of the disruption of the phenomenon. 2.- Definition and delimitation. 3.- Classification: 3.1.- Postal System. 3.1.1.- Treatment in the World Customs Organization (WCO) and the Universal Postal Union (UPU). 3.2.- Courier System. 3.2.1.- Treatment in the WCO and the World Trade Organization (WTO). 4.- Identification of the challenges and creation of the Working Group. 5.- Luxor Resolution. 6.- Framework of standards for cross-border electronic commerce. 7.- Current status. 8.- Conclusions.

1.- Causes of the disruption of the phenomenon

The global growth of Cross Border E-Commerce has overwhelmed the normal operations of international foreign trade, creating profound challenges for governments and enormous opportunities for operators in the global economy. 

The best “empirical” proof of this phenomenon is the arrival (July 2017) to the podium of “Richest Man in the World” (Forbes Magazine) of Mr. Jeff Bezos, main shareholder (17%) of the Electronic Commerce Company AMAZON (1) who displaced from his place Mr. Bill Gates, owner of the company Microsoft (Windows, Office, X Box, etc.) who held that position since 2013.

In the same vein, we can refer to Mr. Jack Ma, a visionary English teacher who in 1995 noticed that there was not a single Chinese product on the Internet and so decided to open ALIBABA, an e-commerce company that today processes more products than eBay and Amazon combined. This gives us an idea of ​​how dynamic this sector is. 

But we don't need to look abroad to confirm this; we only need to look at the Argentine company Mercado Libre, whose market capitalization (more than 65.000 billion dollars) far exceeds the sum of all Argentine companies listed on Wall Street. Yes, you read correctly, a single Argentine e-commerce company exceeds the market capitalization of all other national companies listed in New York (2). This includes YPF, TELECOM, TENARIS, EDENOR, to name just a few.

The expectations are that this market will continue to rise rapidly, supported by the following contributing factors:

1. 1. Advances in technological developments (broadband, fiber optics, etc.). The fifth generation of wireless technology (5G) is expected to allow for much higher connection speeds (between 100 and 250 times faster than the fastest 4G networks), with connections of up to 20 gigabits per second and latencies of 1 millisecond (the delay between sending and receiving information), which opens up a new ecosystem of emerging technologies that will allow us to operate in real time, without perceptible delays or latencies.
   2. Growing number of internet users (from 10.000 in 1987 to 4.900 billion people connected by the end of 2022)
   3. Notable efforts by companies that trade online to continually improve their processes and products. eBay, Amazon, Walmart, Alibaba, Mercado Libre and others are constantly improving after-sales service conditions, product guarantees, timely delivery, insurance to protect shipments, return programs, and offering increasingly secure platforms, promotions, discounts and other strategies that encourage buyers to return.
   4. Notable efforts by companies that trade online to continually improve their processes and products. eBay, Amazon, Walmart, Alibaba, Mercado Libre and others are constantly improving after-sales service conditions, product guarantees, timely delivery, insurance to protect shipments, return programs, and offering increasingly secure platforms, promotions, discounts and other strategies that encourage buyers to return.
   5. Advances in logistics and parcel transport (own air fleets, tracking technologies, studies for deliveries with drones, etc.).
   6. Diversity and security in online payment methods. Companies such as PayPal have guaranteed their security and, therefore, the trust of consumers.
   7. Increased supply, i.e. an increase in goods. More and more merchants are operating via the Internet today.
   8. Acceleration of digitalization processes due to the COVID 19 pandemic.
   9. Other psychological and sociological factors (perhaps the most important), the maturation time of this form of commerce, etc.

This constantly growing commercial environment received a rapid, comprehensive and accurate response from the World Customs Organization, which in a very short time, formed a Global Working Group on Electronic Commerce, where a consensus guide was approved with the participation of the public sector and the main actors of the private sector: freight transport companies (DHL, UPS, Federal Express, etc.), commercial platforms (Amazon, Alibaba, eBay, etc.), Financial Intermediaries (Paypal, Alipay, Payonner, ...), service providers, Universities, among others. 

The development of a “Regulatory Framework on Cross-Border E-Commerce” concentrates expectations to provide a globally harmonized approach to ensure the fast delivery of parcels across borders, while ensuring compliance with all security requirements and fair tax collection. Also during this period, an updated version of the immediate release guidelines was agreed upon and adapted to the e-commerce environment to support the expedited release of cross-border e-commerce shipments and parcels. 

2.- Definition and delimitation

Cross-Border E-Commerce: We say that it is the set of operations for the purchase and sale of goods that are carried out by electronic means between a merchant and a consumer (B2C) or between consumers (C2C), who reside in different customs territories, with the transfer of products by postal shipments or couriers.. 

For the purposes of their proper treatment and delimitation, the types of trade "business to business" (B2B), "business to government" (B2G), and "government to business" (G2B) are excluded from this definition, since they are commercial operations that (usually) exceed simple parcel delivery and operate, consequently, under the general regime (3).

It is also important to clarify the use of the term “cross-border” instead of “international”. The Royal Spanish Academy allows us to use it for more precise purposes, since the word “international” gives us the idea of ​​trade between States, but we refer to trade between individuals that takes place across borders.

Finally, and to better define the phenomenon under analysis, we clarify that we are referring to operations of purchase and sale of goods, that is, bilateral, onerous and voluntary contracts, where two subjects commit to the exchange of physical goods classifiable in the Harmonized System (consequently excluding "services") in exchange for a price, excluding from this material universe, donations,

office goods transfers, removals, correspondence, etc. which also tend to use this route. 

It is also necessary to be clear that these operations are carried out through electronic means, specifically, via the Internet. The subjects involved must reside between two different customs territories (for export and import to exist), and the transfer of such goods must be carried out through one of the following means: a) Postal Regime or b) Courier Regime.

3.- Classification (4)

To better understand the phenomenon, we will use the methodology proposed by Dr. Mario Bunge, an expert in the field of research and scientific research methods, who has developed a useful methodology to understand complex systems such as those discussed here, and which is related to the so-called General Systems Theory. 

In his magnum opus Treatise on Philosophy, in its second volume, Ontology, A World of Systems (5), the Argentine epistemologist and philosopher Dr. Mario Bunge tells us that all things (this includes material and immaterial things) constitute a system or are part of a system (excluding the Universe, which is the only system that is not part of any other system but contains them all), defining a system as the set of elements related and structured among themselves, with their own operating mechanism, and with emergent properties, where the whole is not equal to the sum of the parts.

Researching a specific system requires building a model. CESM which consists of the description of the Composition (its parts or elements), the Eenvironment (external elements that modify the system components or that are modified by them), theSstructure (relationships between components) and finally the Mmechanism (processes that occur within a system).

With this simple conceptual instrument CESM, Dr. Bunge proceeds to analyze all things, from a simple atom (a system made up of a set of elements - electrons, protons, etc. - that are related in a structured way to each other and to their environment), to the most complex biological structure (man, who as an individual constitutes a system in itself - a set of atoms and molecules - fundamentally H2O and Carbon - that are related to each other through subsystems - digestive, respiratory, nervous, etc. - and that make up a whole that is distinct from the parts that compose it).

It also proceeds to the analysis of social phenomena, from a family (primary social system made up of elements: father, mother, children, grandparents, uncles, etc., who are related to each other by blood and/or legal ties, and with their environment, and who have their own operating mechanism) to a large city or a country.

The enormous benefit of this method of analysis is that it allows us to see the "relationships" between the elements that make up a system, its internal organization, its hierarchical levels and its environment, and with this, advance to a higher level of understanding of its parts and components, which we do through the analytical method, which we do not renounce, on the contrary, we fervently adhere to it, but we add to it the analysis of the relationships.

Here we must bear in mind that systemic analysis is absolutely useful for understanding complex phenomena such as cross-border electronic commerce since it presupposes the existence of systemic levels, that is, that a system forms or can form part of a larger system that we can call a meta-system or be composed of subsystems, which in turn can be composed of even smaller ones, and so we could continue until we reach the most basic components.

In our object of study, cross-border electronic commerce, we can clearly observe that it is made up of two subsystems: the Postal Subsystem and the SCourier Subsystem that differ in their Composition (in the Postal Subsystem the Official Post Offices of the States intervene while in the Courrier System private companies without an official license intervene), in its Eenvironment (the Postal Subsystem involves the Universal Postal Union while the Courier System involves the Global Express Association –GEA-), in itsSstructure (in the Postal Subsystem one entity receives the merchandise at origin and another delivers it at destination, while in the Courier Subsystem, the same multinational company receives the merchandise at origin and delivers it at destination), and in its Mmechanism (in the Postal Subsystem regulated since long ago by the Conventions signed within the framework of the Universal Postal Union, while in the Courier System it is not harmonized or standardized).

3.1.- Postal System

This system is made up of the mail companies authorized (official) by the Universal Postal Union (UPU), the sellers/exporters (on their own or through virtual platforms), the control agencies located at the borders of entry and exit of the goods (Customs, Health, Electrical Safety, etc.) and the buyers/importers of the products. This system is externally influenced by the World Customs Organization (WCO) and the Universal Postal Union (UPU), which establish guidelines and directives for the operation and development of the sector.

To understand its origins, we must go back to the 1863th and XNUMXth centuries, when the exchange of correspondence between different countries was regulated by agreements –most of them bilateral- between nations, but in the XNUMXth century this network of agreements became so complex that it prevented shipments from being delivered quickly. Because of this, several projects began to be implemented, among which Sir Rowland Hill's project stood out, who introduced a system to standardize the size of letters. He is also known for creating the postage stamp. In XNUMX, a conference was called in Paris with fifteen European and American delegates to agree on the main postal treaties, but they only managed to put together a few separate agreements and were unable to establish a universal postal system.

A new conference in Bern on 15 September 1874 proposed the creation of a world-wide postal standardisation organisation. As a result, the General Postal Union was born on 9 October of the same year by virtue of the Treaty of Bern, and that date is today World Postal Service Day. The name was changed to Universal Postal Union in 1978. It later became a specialised agency of the United Nations, by an agreement that came into force on 1 July 1948. 

3.1.1.- Treatment in the WCO and in the Universal Postal Union (UPU)

The WCO cooperates with the UPU through the WCO-UPU Contact Committee, which coordinates the development of standards and initiatives common to Posts and Customs. Topics of mutual interest include, among others: postal security, electronic information exchange, implementation and capacity building for the use of forms CN22 and CN23, and the mail delivery service. 

In the UPU Convention, Article 24, and its regulatory standard, we highlight 2 precepts that have a high impact on customs policies:  

"3. Member States and designated operators will not assume any responsibility for customs declarations, regardless of the form in which they are formulated, nor by the decisions adopted by the customs services when verifying shipments subject to customs control.”"RL156.12 Designated operators shall not assume any responsibility with regard to customs declarations. The formulation of customs declarations is the exclusive responsibility of the shipper. However, designated operators must take all reasonable steps to inform their customers about how to carry out customs formalities and, in particular, must ensure that: that the statements of customs CN 22 and CN 23 have been completed correctly, in order to facilitate rapid customs clearance of shipments.”

This is precisely where a major limitation to the performance of the world's customs services is observed, since through an International Multilateral Treaty (with "constitutional" rank in many countries) it has been established that Official Post Offices are not responsible for the customs declarations that are presented, and that these are the "exclusive" responsibility of the sender/exporter, who, because he is located abroad, is not an obligated subject for the countries receiving the merchandise and before whom the customs declaration is presented (For example, the Argentine State cannot "take action" against the Seller from China who set a price - value - lower than that which corresponded, or who declared merchandise other than that sent).

This differential note is of a “substantial” nature for the purposes of its customs treatment in relation to the other sub-regime (Courier) that lacks this regulatory benefit.

Notwithstanding this, the World Customs Organization (WCO), in addition to working jointly with the UPU, has issued guidelines suggesting improvements to customs around the world through various instruments, such as: 

• • • Revised Kyoto Convention (RKC) Annex J Chapter 2
    • Baku Declaration on Electronic Commerce (2001)
    • Fast Bypass Guide (2014)
    • SAFE Regulatory Framework (2005)
    • Air Cargo Advance Information
    • WCO Data Model

3.2.- Courier System

In this system, package delivery is carried out by private companies (such as DHL, UPS and FEDEX), which handle more than 500 million packages per year, and are responsible for all the logistics of the parcels, being able to track them in real time, and anticipate information for the purposes of control at destination.

Its origin is very recent, dating back to the 60s and late 70s of the XNUMXth century, when the deregulation of air cargo service in the United States took place, and it arose to meet the needs for fast and guaranteed deliveries that could not be carried out by postal services.

The Global Express Association is the global trade association representing courier companies. GEA promotes the interests of its members and their customers in international regulatory and public affairs forums, in close cooperation with national and regional express delivery associations serving over 215 countries, carrying over 30 million parcels every day, all guaranteed to be delivered within specified timeframes. 

This guarantee makes express delivery unique in the transport industry and enables its customers to operate over wide territories with a high degree of confidence. A Memorandum of Understanding between the WCO and GEA was signed on 25 June 2010. The World Customs Organisation (WCO) and the Global Express Partnership are working hand in hand to fulfil the WTO Trade Facilitation Agreement (TFA), given the growing importance of e-commerce for economic growth.

3.2.1.- Treatment in the WCO and the OMC

Unlike the Postal Regime (whose procedures are fairly harmonized and standardized worldwide), the Courier Regime has not had international guidelines or directives to date that regulate it and each country carried out its regulations individually and not necessarily in a coincidental manner.

Accordingly, on February 4, 2005, the US government, through Note TN/TF/W/15, submitted to the WTO's Negotiating Group on Trade Facilitation a proposal to establish specific accelerated procedures for express shipments (a special regime), expressing the importance of its implementation in light of the growth of this type of trade. 

From the United States' perspective, certainty and consistency in the treatment of expedited shipments would be greatly enhanced by a commitment to separate expedited procedures, including specific elements such as a requirement that import data be submitted prior to the arrival of the goods, no weight or value restrictions on what are considered "expedited" shipments, availability under normal circumstances to ensure expeditious clearance, and availability of "de minimis" procedures for low-value shipments.

In 2006, they presented a specific proposal (very similar to the standard that the United States establishes in all its Free Trade Agreements –for example: with Chile, Ecuador, Peru, etc.-), which after minor observations by the rest of the Member States of the WTO, was approved as follows:

Trade Facilitation Agreement (TFA)

The AFC entered into force worldwide on 22 February 2017 and has been ratified by 156 States to date (6).

In this Agreement, art. 7.8 is the one that regulates the Urgent Shipments regime:

7.8.1 Each Member will adopt or maintain procedures that allow for the rapid release of at least those goods that have entered through air cargo facilities to those who request such treatment, while maintaining customs control.

8.1.b) That the necessary information for the release is presented before the arrival of an urgent shipment;

8.1.f) To assume responsibility for the payment of all customs duties, taxes, fees and charges on the goods to the customs authority;

(d) provide, as far as possible, for a de minimis shipping value or taxable amount in respect of which no customs duties or taxes will be levied.

As can be seen, the first paragraph establishes a direct mandate to be fulfilled (“hard law”), while the subsequent paragraphs establish recommendations or suggestions for its implementation (“soft law”). 

The Trade Facilitation Agreement is still in the implementation stage at a global level and through the Trade Facilitation Committee (Article 23.1 of the Agreement), compliance with the agreed commitments is monitored globally.

4.- Identification of challenges and creation of the Working Group

Once the two (2) subsystems involved in Cross-Border Electronic Commerce have been clarified, and their differences and regulatory frameworks have been highlighted, it is time to move forward on the "Challenges" detected by the Customs Administrations and which gave rise to their specific approach.

In July 2016, the WCO Council arranged for the creation of a mixed (public sector plus private sector) and open (all interested parties) working group to address the issue of Cross-Border Electronic Commerce, agreeing on a 2-year period to obtain results. 

It was mandated to address cross-cutting issues related to growing e-commerce and propose practical solutions for the clearance of low-value shipments, including appropriate tax collection mechanisms and control procedures that will facilitate and encourage the growth of e-commerce for the benefit of economic and social development.

In a “paradigmatic” and avant-garde way, this collaborative Working Group on E-Commerce (WGEC) brought together the sectors involved in cross-border electronic commerce: customs administrations, international organizations (WTO, UPU, OECD, UNCTAD, UNCITRAL, ICC, etc.), courier companies (DHL, UPS, Federal Express, etc.), commercial platforms (Amazon, Alibaba, E-bay, etc.), financial intermediaries (Paypal, etc.), Universities (UBP, Katholieke Universiteit Leuven), among others.

Four working subgroups were formed to address the “Challenges” or core problems of the phenomenon:

I. Trade facilitation and simplification of procedures

– Definitions

– Legislation

– Automated systems – One-stop shop 

– Advance electronic data exchange (interoperability, minimum data sets, data quality, data privacy)

– Truste Trader / AEO program for electronic sellers, marketplaces and intermediaries – improving facilitation

– Framework / guidelines / standards – harmonization and support for MSMEs

– Return/refund processes (return)

– Implementation and review/update of the WCO Immediate Release Guidelines and other related tools.

II.Protection and security

– Product safety

– Illicit trade

– Quarantine / biosecurity

- Dark web / cyber security network

– Illicit financial flows – monitoring financial trails

– Cooperation and exchange of information between customs administrations

– Smuggling of high-value items and environmentally sensitive goods

– Non-intrusive inspection (NII) technologies

– Review/update relevant tools

– Case studies

III. Revenue collection

– De minimis

– Simplified entry threshold

– Classification, assessment, questions of origin

– Harmonized System, integrated tariff database

– Transactional approach versus account-based approach

– Alternative revenue raising models (including industry and government impact analysis)

– Rates and charges

– Cooperation between authorities (Customs and Taxes)

IV.Measurement and Analysis

–Big Data

– Storage and analysis of the work currently being carried out by international organisations

– Research and analysis of various e-commerce business models

– Measure e-commerce flows and economic benefits

– Capacity building, awareness raising and technical assistance in implementation.

The first working meeting was held in Brussels from 21 to 23 September 2016, with the participation of 175 delegates representing the sectors mentioned above. The second working meeting was held in the same city from 10 to 13 October 2017, with the participation of more than 100 delegations. A permanent virtual workspace was also created for the presentation and discussion of the initiatives, all under the efficient leadership of the Director of Facilitation and Control of the WCO, Ms. Ana Hinojosa.

At this last meeting, the final touches were given to the document approved in Luxor and presented in the city of Buenos Aires on 11/12/2017 within the framework of the 11th Ministerial Conference of the World Trade Organization. 

5.- Luxor Resolution.

Before entering into the treatment of the current Regulatory Framework, we must review an important precedent in its development: the “Luxor Resolution”, named after the Egyptian city where the WCO Policy Commission met (between December 4 and 6, 2017), and where it was unanimously approved. 

The Principles agreed in the Luxor Resolution are as follows:

*Principle I – Advance electronic data and risk management

Regulatory frameworks should be established to support the timely and accurate exchange of advance electronic data between e-commerce operators and customs to ensure effective risk management and, therefore, appropriate customs control.

*Principle II – Facilitation and simplification

Simplified clearance procedures will need to be adopted to cope with increasing volumes of small and low-value shipments and parcels.

*Principle III – Safety and security

The government and the private sector are encouraged to work collaboratively in the use of information technology, implementation of non-intrusive control methods and analysis of risk profiles based on advance electronic data (pre-load/pre-arrival), to identify and intercept dangerous shipments.

Regrettably, innumerable cases of customs offences committed through this form of trade emerge from newspaper reports, and in the virtual world there exists the so-called “Deep Web” where an innumerable number of goods that are absolutely prohibited (drugs, human organs, weapons, etc.) are secretly traded, and new technologies also facilitate their commercialization. Therefore, in this regard, data analysis and risk management must be increased and improved for the early detection of these maneuvers.

In this sense, the story of Ross Ulbricht, a 26-year-old American university student, is paradigmatic. In less than two years he became the "boss" of a virtual drug trafficking network, which moved more than 1.200 billion dollars (7), until he was detected, captured and sentenced to life imprisonment in 2015.

The surprising thing about his case is that he sold drugs all over the world without leaving the State of San Francisco in the United States, using for his business the "Deep Web" where he had set up the site "Silk Road", from where he sold hallucinogenic mushrooms, heroin, cocaine, LSD and ecstasy, among other substances and objects, making his shipments from Holland, and taking advantage of all the advantages offered by cross-border electronic commerce, including fundamentally the TOR search engine (which avoided the identification of his IP) and the BITCOIN cryptocurrencies to achieve the anonymity of his operations (8).

*Principle IV – Collection of revenue

E-commerce operators will need to provide and anticipate the relevant electronic data necessary for proper collection and governments will need to evaluate alternative collection models to facilitate accurate and efficient revenue collection, with minimal intervention (simplified and automated) while enforcing customs controls.

*Principle V – Measurement and analysis

Reliable mechanisms to accurately measure and analyse cross-border e-commerce should be established, in close cooperation with international organisations and private sector stakeholders, to facilitate trade statistical analysis for sound decision-making.

*Principle VI – Partnerships (Alliances)

All stakeholders will need to work collaboratively to develop business solutions that meet the individual and collective needs of all supply chain actors.

*Principle VII – Public awareness, dissemination and capacity building

Awareness and outreach programmes, together with appropriate capacity building mechanisms, should be implemented to ensure that all stakeholders understand their obligation to comply with the requirements set out by customs services and other regulations.

*Principle VIII – Legal Framework

National legislation should be adjusted, as appropriate, to complement international instruments, conventions, agreements and WCO tools and guidelines, in order to facilitate cross-border electronic commerce, collect the corresponding revenues and protect society, while ensuring a high standard of work for all economic operators.

As can be seen, the agreed principles clearly show that the study of cross-border electronic commerce requires a holistic and systemic approach, which synthesizes the complexity of the phenomenon and with the necessary participation of all interested parties.

6.- Framework for rules on cross-border electronic commerce (9)

Having reviewed this important precedent, we must now refer to the WCO meeting in June 2018 in Brussels (Belgium), where the draft document of a Framework of Standards that had been finalized and presented to various working bodies of the WCO, such as the Implementation Committee, the Permanent Technical Committee and immediately before the Council Session, the Policy Commission, was finally approved by the Council. 

The Standards Framework aims to provide global reference standards, technical specifications and guidelines.

While the basic Framework of Standards had been developed, much remained to be done, so it was decided to extend the work of the WGEC for one year (until June 2019) in order to further enrich the Framework, mainly through the finalization of technical specifications, annexes and other complementary items such as case studies and innovations shared by Members.

The expectations were that this Regulatory Framework would be a comprehensive tool to assist WCO Members in developing strategic and operational frameworks for electronic commerce, working in close cooperation with stakeholders. 

The Framework will be supported by an implementation strategy and action plan, to assist governments in developing operational e-commerce programmes complemented by action plans and implementation timelines, ensuring their harmonized and expeditious implementation, based on national and regional needs and imperatives.

In general terms, the Regulatory Framework promotes:

• A standardized framework for the advance exchange of electronic data between e-commerce operators, customs and other government agencies to facilitate legitimate shipments, utilizing dynamic risk management techniques and the use of non-intrusive inspection technologies.
• Cooperation between actors involved in cross-border e-commerce; customs administrations, government agencies and private individuals 
• Simplified clearance procedures and expansion of the Authorized Economic Operator (AEO) concept in cross-border electronic commerce.  
• Global standards to provide certainty, predictability, transparency, security and efficiency in cross-border e-commerce.
• A harmonized approach to risk assessment, clearance, release, tax collection and border cooperation in relation to cross-border e-commerce.
• Accurately capture, measure, analyze and publish cross-border e-commerce statistics in accordance with international statistical standards and national policy, for informed decision-making.

7.- Current Status

The Framework of Standards on Cross-Border E-Commerce (E-Commerce FoS) and associated documents have been approved and, considering that certain aspects may need to be refined, reviewed and amended in the future, as e-commerce is a dynamically evolving environment, mechanisms for its continuous updating and improvement are being evaluated. All WCO Member States have been requested to contribute their experiences in order to enrich the ongoing studies.

With regard to the institutional aspect, at its meeting in August 2019, the WCO Council adopted – among others – the following measures: (i) recognized the need to place the issue of electronic commerce on the future agenda of the Permanent Technical Committee and the Directorate for Combating Customs Fraud; (ii) approved the Electronic Commerce Package, with the exception of three annexes (Annex B: Reference data set for electronic commerce, Annex E: Revenue collection and Annex F: Electronic commerce stakeholders: roles and responsibilities); (iii) extended the mandate of the Working Group (WGEC), in a virtual (non-face-to-face) manner, until June 2020 (to work mainly on the three annexes referred to above); (iv) adopted the draft Joint WCO-UPU Guidelines on the exchange of electronic data and documents.

In fulfilling its mandate, the Working Group on Electronic Commerce met to finalize outstanding work items at the WCO headquarters in Brussels from 12 to 14 February 2020. 

More than 110 delegates from member customs administrations and associated international organizations, representatives of the postal and courier services industry, electronic suppliers, e-commerce platforms, logistics service providers, customs agents and technology service providers participated in this meeting, and the work was concluded and the pending annexes were subsequently approved.

The e-commerce package

The package includes the Framework on Cross-Border E-Commerce adopted in June 2018, which sets global standards on cross-border e-commerce in order to provide pragmatic, fair and innovative solutions, taking into account the diverse expectations and concerns of Customs administrations and stakeholders. 

The eCommerce package includes:

• • • The framework of rules on cross-border electronic commerce,
    • The Standing Technical Committee's Framework for Cross-Border Electronic Commerce Standards Update/Maintenance Mechanism
    • Tools that support the implementation of the Framework
      • • • Technical Specifications 
          • The Compendium of Definitions
          • E-commerce business models

• • • • • • E-commerce flowcharts
          • Return goods flow chart
          • Reference datasets for cross-border e-commerce
          • Revenue Raising Approaches 
          • E-commerce stakeholders: roles and responsibilities
          • Implementation strategy, action plan and capacity building mechanism 
          • The 1st edition of the compendium of case studies on e-commerce 
          • Case Study Template: Revenue Raising Approaches
          • Case Study Template: Implementing the Standards Framework
          • Key performance indicators
          • WCO Policy Commission Resolution on Guiding Principles for Cross-Border Electronic Commerce
          • Guidelines for immediate publication

The last review of the Package was carried out during the years 2022/2023 and approved by the Council on 23 June 2023 and from now on annual reviews will no longer be carried out but will be carried out every four years (10).

The fourth edition of the Compendium of Case Studies on e-commerce was approved on the same day by the Council and is also part of the E-commerce Package (11).

8. Conclusions

As can be seen, significant progress has been made in a very short time, but the work to be done is by no means finished. The first steps in the process of unification and standardization have been taken. The skeleton or foundations have been developed on which further construction will be carried out as required by this new commercial modality and as new technologies permit.

The experience of teamwork has been fundamental in refining and polishing all the edges of such a complex operation. In this sense, we must positively consider the active participation of the private sector (which even headed some working subgroups) providing contributions from its perspectives.

Cross-border e-commerce, as a phenomenon, is a direct product of the information age and globalization. Technology has removed the physical and temporal barriers that once limited trade. Now, a consumer anywhere in the world can purchase a product from anywhere else with just a few clicks. This has created an increasingly interconnected world, where actions in one place can have significant effects in another.

From a philosophical perspective, this can be seen as a manifestation of global interdependence. In other words, our lives are increasingly intertwined with those of people around the world, through the networks of trade and communication that technology has made possible. This interdependence can be both a source of opportunities and challenges.

The overwhelming dynamics of cross-border e-commerce have generated enormous commercial opportunities, driving new consumer trends, payment methods, shipping, delivery, return and circulation of products that saturate the control possibilities of the public and private entities involved, which are subjected to the daily stress of achieving fluidity in commercial flows while guaranteeing the security and legality of transactions.

In particular, it is worth noting that this new trade modality has opened up global economic opportunities for micro, small and medium-sized enterprises (MSMEs) in terms of broader access to foreign markets by reducing entry barriers, leading to inclusive and robust globalized trade. 

This rapidly evolving trade environment requires a comprehensive and well-considered response from all parties involved, in particular customs authorities, and for them, the determination of the Guiding Principles, as well as the development of a regulatory framework, and the creation of a Package of Instruments that, among other elements, includes Best Practice Guides, constitute a solid step forward in this direction. 

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1. At the beginning of 2019, Amazon's market capitalization exceeded $800.000 billion, making it one of the largest companies in the world. Information available at: https://www.cronista.com/apertura-negocio/empresas/Amazon-es-la-empresa-mas-valiosa-del-mundo-20190107-0007.html  y https://www.bbc.com/mundo/noticias-46802529 .
2. View: https://www.baenegocios.com/negocios/No-hay-con-que-darle-Mercado-Libre-ya-vale-diez-veces-mas-que-YPF-20200217-0032.html
3.  This is without prejudice to the fact that its operation can be carried out on the same marketing platforms specifically adapted for this purpose (Alibaba, Amazon, etc.).
4. The reader is suggested to complement the reading of the text with the author's expositions available at: https://youtu.be/3vvrxgfMZQw y https://youtu.be/5K2heb-NFXc .
5. Translated from the English edition of Treatise on Basic Philosophy. Vol. 4: Ontology II: A World of Systems. 1979 D. Reidel Publishing Company, Translation: Rafael González del Solar
6. The updated status of TFA ratifications is available at: https://www.tfafacility.org/
7. Information available at: https://www.semana.com/gente/articulo/ross-ulbricht-el-estudiante-que-paso-a-vender-drogas-en-al-red/528711
8.  For those who wish to delve deeper into this exciting and cinematic story, we suggest purchasing the best-selling book: “American Kingpin: The Epic Hunt for the Criminal Mastermind behind the Silk Road Drugs Empire” in which writer and researcher Nick Bilton tells his story.
9. Available on: http://www.wcoomd.org/-/media/wco/public/es/pdf/topics/facilitation/instruments-and-tools/ecommerce/wco-framework-of-standards-on-cross_border-e_commerce_es.pdf?db=web
10. To download the building blocks of the Cross-Border E-Commerce Package, please contact: https://www.wcoomd.org/en/topics/facilitation/instrument-and-tools/frameworks-of-standards/ecommerce.aspx
11. Available on: https://www.wcoomd.org/-/media/wco/public/global/pdf/topics/facilitation/activities-and-programmes/ecommerce/e-commerce-compendium_en.pdf?db=web