CROSS-BORDER E-COMMERCE RIGHT: Cross-border e-commerce growth saw a 11.3% year-on-year rise in air cargo demand in 2024, according to IATA ICS2 EXTENDS TO RAIL AND ROAD AUTOMATION OF CUSTOMS PROCEDURES IS AN ABSOLUTE NECESSITY” Luke Lloyd, IPC Lloyd is referencing the anticipated reduction/removal of the de minimis rule for US imports, which could have a big impact on delivery costs and parcel flows. De minimis allows shipments valued under US$800 to enter the US free of duty and taxes. In 2013, 100 million packages entered the US using this rule. Last year, this figure had grown to over 1.36 billion, or 3.8 million packages a day. The Trump administration announced in February that it would immediately eliminate the exemption for low-value shipments arriving from China. However, within days, US ports of entry were overwhelmed with a backlog of parcels entered the packages as the Customs and Border Protection (CBP) service was unprepared to deal with the The Customs Declaration System US in 2024 using the extra processes required. The administration One system that can help posts tackle the myriad de minimis rule has now announced it will create a process to customs challenges is the UPU’s Customs Source: US Customs and eventually eliminate the exemption for China. Declaration System (CDS) – a web-based solution Border Protection “In August 2024, Turkey changed its de minimis that simplifies electronic customs data exchange to regulations to protect Turkish companies from Chinese expedite international shipments, Avsec explains. “CDS rivals such as Temu and Shein,” Lloyd says. These changes is the UPU’s answer to growing demands for electronic included reducing the de minimis from €150 (US$157.50) to advance data (EAD) for cross-border postal items. It €30 (US$31.50) and significantly increasing duties and taxes. helps with data collection, and the software validates the “This had a rapid effect in instantly reducing consumer data entries then prepares and sends the declarations e-commerce imports,” Lloyd adds. to the destination, according to UPU standards.” Other changes afoot include the European Commission’s In February, CDS was enhanced thanks to the UPU’s Customs 2030 initiative, the potential removal of the new partnerships with cross-border technology firms €150 (US$157.50) de minimis limit in the EU, and further Zonos and Hurricane Commerce. The latest release of US-imposed tariff changes. “With the USA, we already CDS, CDS 2024 SP1, includes APIs to Zonos and Hurricane see some changes in tax rates that are likely to propagate Commerce software. Thanks to these new integrations, to other countries as reciprocity measures,” comments CDS has been enriched with new lookup functionalities David Avsec, Postal Technology Centre (PTC) account for EAD compliance data, including HS codes (product relationships coordinator at the Universal Postal Union classification numbers), information on prohibited and (UPU). “It is likely that 2025 will be very dynamic, and new restricted items and denied parties verification. regulations may be announced in the coming months. The postal network needs very agile IT systems to adapt quickly.” “The increasingly changing international economic environment demands continuous adaptation of solutions,” agrees Kelly van der Weg, managing director of Spring GDS. “Retailers and sellers should be able to focus on what they do best, and shouldn’t be burdened by the ever-changing rules and regulations. As a cross-border seller, with so many suppliers to potentially work with, it is hard to find a partner that can support shipping needs on a multilateral level.” David Avsec, Universal Postal Union 1.36 billion On April 1, 2025, the European Union’s Import Control System 2 (ICS2) will be extended to rail and road, in addition to the existing air, maritime and inland waterway requirements. ICS2 aims to enhance the safety and security of goods sent to or through the EU by introducing a standardized, pre-arrival customs process for all modes of transportation. By mandating the submission of accurate and complete Entry Summary Declaration (ENS) data prior to arrival, the ICS2 enables customs authorities to better assess the risks associated with incoming goods, thereby improving the EU’s ability to prevent and combat customs offenses and ultimately ensure a safer and more secure trade environment. The ICS2 obligation also concerns postal and express carriers that transport goods using these modes of transportation, as well as other parties, such as logistics providers. To comply with the ICS2 requirements, affected businesses will be required to ensure they collect accurate and complete data from their clients, update their IT systems and operational processes, and provide adequate training to their staff. Goods might be stopped at EU borders and might not be cleared by customs authorities if traders do not meet the ICS2 requirements. THE POSTAL NETWORK NEEDS VERY AGILE IT SYSTEMS TO ADAPT QUICKLY” 40 www.ParcelandPostalTechnologyInternational.com March 2025
Parcel and Postal Technology International March 2025 Issue : Page 40
