Will a little prick burst air cargo's bubble?
Don’t mention tariffs
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MAERSK: BULLISH CALLXPO: HEDGE FUNDS ENGINEF: CHOPPING BOARDWTC: NEW RECORDZIM: BALANCE SHEET IN CHECKZIM: SURGING TGT: INVENTORY WATCHTGT: BIG EARNINGS MISSWMT: GENERAL MERCHANDISEWMT: AUTOMATIONWMT: MARGINS AND INVENTORYWMT: ECOMM LOSSESWMT: ECOMM BOOMWMT: RESILIENCEWMT: INVENTORY WATCHDSV: GREEN LIGHT AMZN: TOP PICK
Administrator general of Belgian customs, Kristian Van der Waeren, has “lost [his] patience” with non-compliant ecommerce coming into Liege airport and threatened to block shippers not playing by the rules.
Mr Van der Waeren introduced himself as “a pain in the ass for ecommerce” to delegates at this week’s EU CBEC ecommerce forum in Liege, Belgium.
“We have a tremendous explosion of ecommerce here in Liege. We have had 500m declarations already this year, business is doing well and that is a very good thing,” he said.
But he added that this influx of ecommerce and accompanying declarations have brought “problems”.
“We as customs have to be sure that what is declared is correct.
“This has to do with information, this has to do with dealing with the good clients in China. We have been confronted with Chinese criminal organisations who are in ecommerce.
“So, you have to be very careful in your client acceptance that this is done properly.”
Specifically, Mr Van der Waeren explained that there are “a lot of issues with relation to undervaluation and product conformity”.
Indeed, The Loadstar reported in June that LGG-based ECDC Logistics, a company set up by a Chinese businessman, had won a total of 12 cases against Belgian Customs having been suspected of the undervaluation of imported goods, representing several million euros in unpaid duties.
But the customs authority, unconvinced, lodged an appeal against the decision concerning ECDC Logistics, which is scheduled to be heard in court this month.
ICS2 [Import Control System] states that specific details on any goods entering the EU must be provided before loading or arrival at the border. It was introduced to airfreight last year, extended to sea freight on 3 June and will be applied to road and rail next year.
The data requirements include six-digit HS codes for each item in the consignment and an “acceptable” description, as well as detailed buyer and seller information.
Failure to comply usually leads to delayed imports and exports, as well as the possibility of fines and penalties for those liable for submitting the data.
“We try to apply it, but not everybody is complying,” said Mr Van der Waeren.
“When it comes to maritime, there is not really a problem, but in aviation we face some problems… I must say that my patience is running out,” he added, indicating that the non-compliance issues largely stem from the foreign ecommerce players Liege airport attracts.
“The legislation has to be respected and you can’t postpone it… I am intending to instruct my people to block shipments, but I don’t know yet the date.”
The pre-check nature of ICS2 is beneficial to customs staff due to the fast-paced ecommerce supply-chains that means overwhelmed customs staff often have a limited window to carry out inspections.
“We are much more in favour of a B2B2C than a B2C. Because with B2C, there is hassle and problems.
“If we have B2B2C, we are much more comfortable from a logistical point of view. Goods come here, they are in storage facility, we can do our inspection, and we don’t have the pressure of the B2C,” Mr Van der Waeren explained.
He urged that better communication between stakeholders would make the customs procedures for cross-border ecommerce easier.
“I am convinced that if we have much closer dialogue between the private and the public sector, between the Belgian customs and the Chinese customs, then e-commerce will have a bright future in this airport,” he concluded.
Listen to this clip from The Loadstar Podcast to hear Loadstar news editor Alex Whiteman speaking to Xeneta’s chief airfreight officer Niall van de Wouw about how new US Customs air freight security rules are creating a ‘shitshow’:
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