There is a substantial difference when dealing with “cross-border” e-commerce. On the one hand, there is the exchange of digital goods, which raises problems with the scope of the concept of merchandise. On the other hand, there is the exchange of physical goods, where the “transaction” is carried out electronically. Then, the dispatch of the merchandise is done by mail. This last stage is the one that interests the customs service.
The OECD, the European Union, the World Customs Organization (WCO) and other organizations believe that Current regulations are not sufficient for the digital economy.
The growth of international e-commerce requires a new approach to support its evolution and improve the effectiveness of risk management and shipping facilitation.
La OMA split the analysis on e-commerce in four topics:
- Trade facilitation and simplification of procedures: While applicable to business-to-business transactions, it was recommended that it be limited to business-to-consumer (B2C) and consumer-to-consumer (C2C).
- Protection and security (exhaustive and sustainable customs controls, unifying information for consumers). He suggested obtaining additional information for buyer identification, the convenience of a joint regulation of the countries that achieves a standardized procedure for a type of simplified and anticipated declaration to customs.
- Tax collection (difficulties that arise depending on the political-economic situation of the country and the safeguarding of national security).
- Transactional data measurement and analysis (its relationship to protection against illegal trade).
E-commerce is a new form of international trade. This exchange of physical goods completed by mail is the one that faces the greatest difficulties for customs.
Risk management
Risk management requires physical control, using traditional means (scanners, dogs, selective inspection), which must be accompanied by intelligent control and operational regulation that identifies the protagonists and sanctions - if appropriate - those responsible. Abuse or improper use of minimum values must be prevented, for which it is required that the merchandise has been duly valued and classified.
The truthfulness and accuracy of the declaration of the merchandise is related to abuse and illicit trade: division or fractionation of shipments, undervaluation, classification and rules of origin, counterfeit and pirated merchandise, money flows (laundering).
In Argentina, you can buy online on foreign sites and receive the product at home, for shipments where the merchandise does not exceed a weight and value limit, by two means: official or private mail.
The Argentine Official Mail is used for shipments that do not exceed 2 kilos and US$ 200 that, due to their type and quantity, are presumed not to be for commercial purposes and can be delivered under the "door to door" modality, with a simplified declaration, which does not have to be completed in the case of books.
The Courier channel, on the other hand, allows shipments of non-commercial merchandise for personal use or consumption, within the limits of 50 kilos and US$ 1000, and up to 5 times per calendar year and per person. The simplified declaration is made by the courier, who also pays the taxes on the shipment received from the client.
Online purchases of merchandise grew so much that they exceeded the human resources of the organizations and made them difficult to control, to the point of collapse.
At the level of infringement, the Customs Code contemplates the case of postal shipments for non-commercial purposes, and holds the recipient responsible. This means that, if the recipient appears and accepts the inspection of the postal package, in the case of verifying that the merchandise is not admitted, its confiscation is applied. But such liability for the act of another (which is exceptionally applied at the level of infringement) cannot reach customs crimes. For smuggling by mail to be established, there must be evidence of collusion with the sender (for example, staggered shipments of weapons for later assembly).
However, care must be taken, as postal traffic has become a “tsunami of small packages” and its volume grows day by day. Therefore, on the basis that it is a confidential delivery, the lack of human resources on the part of the control agencies means that the private sector must provide collaboration and assume duties and responsibilities when its intervention was not diligent.
Progress must be made in regulation and non-compliance by the PSP/Courier must be specified, in addition to disciplinary sanctions that lead to the definitive elimination of the “Simplified Procedure Regime” and then of the “Registry of Postal Service Permit Holders”. For example, when receiving merchandise for shipment, the sender should be required to provide information justifying the conditions of this special regime. Customs must be prepared for proper control through preventive work.
This does not mean adopting the preventive concept of risk, which has a paralyzing effect on trade, but take action:
- More information about the websites, intermediaries, electronic sellers. Acquire technology for physical verification of merchandise and create a specialized unit to prevent, detect and investigate Web information.
- Enhance international cooperation through mutual customs and judicial assistance agreements to accompany the activity of the specialized unit.
- Take measures to identify the sender or consignor of the shipment to or from abroad, for example, by presenting: original identification document (and recording a copy); signed form in handwriting; fingerprint; camera with video recording with date and time at the place of issue. In addition, achieve the greatest possible precision in the description of the merchandise.
- Define the obligations of the mail service provider on compliance with the requirements for admission of the shipment and establish sanctions. Regulate the operation to avoid interpretative doubts (protocol on opening of packages).
- Risk analysis (problem with occasional clients, due to lack of history) and insufficient human resources.
Source: Financial Area
Aduana News is the first Argentine customs newspaper to launch its digital version. With 20 years of experience, its publications and initiatives aim to provide the most relevant knowledge on customs issues in order to contribute to safe trade in the region.
