Customs strictly checks! A large number of goods may be returned

What logistics situations have occurred recently?

Customs inspection is not a strange term for many cross-border e-commerce professionals. However, this issue has been hotly debated recently. According to people familiar with the matter, customs in various places, especially the US customs, are increasing the inspection of imported goods. In addition to the old problems of under-declaration and counterfeit goods, they are also targeting low-value goods, especially small duty-free packages. A large number of non-compliant goods are facing the risk of being banned from entering the country.

In addition, freight rates to Europe have also increased.

US and European customs conduct strict inspections! A large number of packages are being targeted

In terms of customs inspection, many people said that customs across the United States have recently conducted more stringent inspections on imported goods, with low-value goods becoming the focus of inspection.

According to people familiar with the matter, the U.S. Customs has continued to increase its inspection efforts for Type 86 clearance and even introduced new regulations. Type 86 import goods are voluntary submission types and apply to e-commerce goods with a total value of no more than $800 in the country of origin.

Previously, such goods could submit detailed data within 15 days of arrival , but now the time is much earlier, and the data set must be submitted at the latest when the goods arrive. If the time requirement is not met, the goods will be detained and cannot enter the United States. In more serious cases, CBP regulations will impose penalties, administrative sanctions and liquidated damages.

In addition to being more demanding in terms of time, the U.S. Customs also has more requirements for data sets. Relevant personnel must submit very complete and accurate data sets, including complete product descriptions and HS codes.

The purpose of a series of reforms is to address the challenges brought about by the surge in small parcels.

The United States said that there have always been various problems with Type 86 imported goods, such as counterfeit products and other infringements of intellectual property rights. Now there are more and more small packages flowing into the United States, and many imported goods are not "accurately or specifically described". There are cases of misclassification and underestimation of value. Customs brokers have to manage a large number of formal and informal entry clearances every day, which is time-consuming and labor-intensive. After the new regulations are implemented, the workload will be reduced to a certain extent and fewer packages that do not meet the regulations will enter the market.

In addition to the increased inspection rate for Type 86 customs clearance, the regular inspection rate in the United States is also soaring. Houston , New York , Los Angeles , Oakland , Seattle , Miami and other places continue to carry out random inspections. Children-related products such as baby products, toys, etc., as well as high-value products such as electronic products and automotive products are the hardest hit areas for inspection. The problems are mainly concentrated in the value of goods, importer status, CPS, FDA , infringement and other aspects.

"Don't just pursue low prices. Make compliant and reasonable declarations to avoid unnecessary inspection fees and time delays." The freight forwarder warned that U.S. customs clearance requires advance preparation of cargo manifests, power of attorney, import security declaration (ISF), source of origin marks and other materials. One point that is very noteworthy is that the information included in the cargo manifest must be comprehensive and accurate, including the name of the goods, quantity, unit price, total price, source of goods, mode of transportation, destination, etc.

A freight forwarder told me that as customs clearance in various parts of the United States has become extremely strict, cross-border e-commerce sellers should be prepared for delayed delivery of goods. In fact, logistics delays are happening, and the time may be as long as a month. Some non-compliant goods have been detained by customs.

In addition to US customs, European customs have also become more stringent in their inspections of goods.

People familiar with the matter said that in order to strengthen the safety management of imported goods and combat counterfeit products and under-declaration, the EU will implement a new customs pre-entry security system, namely the Import Control System 2 (ICS2), from June 3, 2024. All goods entering the EU's 27 ports of destination will be controlled.

ICS2 also requires that all data be submitted before goods enter the EU. The detailed information of the goods must be accurate and detailed. Those that do not meet the requirements will be returned.

Some time ago, a piece of news about the "collapse of the European tax and customs system" was widely circulated. Customs officials said that they found multiple tax evasion packages every day. For example, a product was a 4K projector worth 1,270 euros, but it was marked as "technical equipment" worth only 54 euros on the parcel list; the consignor often shipped in batches. Two packages that were shown to be shipped to the same address could obviously be shipped together, but the consignor split the package into two packages and mailed them, so that no import tariffs would be paid. But the old system cannot intercept these errors...

Therefore, calls for customs reform have been heard in recent years. As early as 2023, there were reports that the European Commission proposed a comprehensive reform of its customs framework, launching the EU Customs Data Center before 2028 to uniformly handle e-commerce imports. Details include: establishing a digital system to simplify trade procedures to cope with the growing e-commerce imports; removing the current tax-free policy for imports below 150 euros, and rectifying the chaos of deliberately underreporting the value of goods.

Industry insiders analyzed that, based on the different fulfillment models of cross-border e-commerce platforms/merchants, cross-border e-commerce logistics can be divided into two categories: direct mail logistics and overseas warehouse logistics. Driven by the "full trusteeship" model of cross-border e-commerce platforms, the growth of direct mail logistics is expected to accelerate, but this has also caused a series of problems. Customs in various places faced the pressure of a sudden surge in goods, but did not take corresponding measures in time, resulting in intensified conflicts. European customs and US customs, which have already discovered the problem, are actively taking measures to plug some loopholes.

Freight rates will rise sharply in May

Yi Enjun learned that in the coming May, the shipping costs for exports to Europe, North America, the Mediterranean and other places may rise sharply. Shipping companies such as MSC, Maersk, CMA CGM, COSCO Shipping Lines, Hapag-Lloyd, HMM and others have already issued announcements.

Maersk: Starting from April 29, 2024, the FAK rates from the Far East to the Mediterranean and North Europe will be increased.

MSC Mediterranean Shipping Company: From May 1, 2024, new FAK rates will be implemented for all Asian ports to Northern Europe.

Hapag-Lloyd: From May 1, 2024, the FAK rates between the Far East to Northern Europe and the Mediterranean will be adjusted.

HMM: From May 15, 2024, all services to the United States, Canada and Mexico will implement the new GRI.

ZIM : From May 1, 2024, a new fuel fee standard will be implemented, applicable to FAK (all types of freight) cargo.

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Based on the views of all parties, the main container shipping contract EC2406 has increased by nearly 43% since April. However, the second round of price increase plans of shipping companies in the spot market are still in progress. How high the price will increase and when the price will fall back are closely related to the overall environment.

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