eCommerce Compliance

 

Global e-commerce continues to expand despite ever-changing and increasingly complex trade regulations. Those with effective ecommerce compliance processes on top of technical capability are better positioned to be successful compared to those with poor management strategies in place. From sourcing to last-mile delivery, successful e-commerce is built upon rules, relationships, management, documentation and compliance. Transparency and visibility are more important than ever as products move around the globe.

However, local safeguards do not translate well outside borders, and regulatory processes can become outdated overnight. The U.S. regulatory landscape, for example, changes so frequently that international businesses may be at risk for heavy penalties due to seemingly minor infractions. It’s often not enough to keep up to date on news from customs authorities and other government agencies; technology and processes must be in-sync with regulatory changes for optimal compliance.

Global e-commerce and online sales are reaching dizzying heights. Data compiled by Shopify anticipates a 276.9 percent increase in worldwide ecommerce sales over the most-recently tracked period. Worldwide retail e-commerce sales currently stand at $3.5 trillion and are projected to reach $4.9 trillion by 2021.

Asia (specifically China) is the world’s largest ecommerce market, followed by North America, Europe, Australia, Africa and the Middle East, and South America. By 2023, retail ecommerce sales in Asia Pacific (APAC) are projected to be greater than the rest of the world combined, mainly due to rapid urbanization and technological advancements.

On average, 57 percent of worldwide shoppers make purchases from overseas retailers. E-commerce is the buying and selling of products or services across geographical borders, with products/services sold to markets outside the native country via online sales and marketing. Much of e-commerce involves the transport of (usually) smaller parcels within a country or from one country to another.

The e-commerce boom and complex customs regulations are putting pressure on shippers, logistics service providers and trade participants in unprecedented ways. Recently, the World Customs Organization (WCO) called for collaboration among stakeholders to develop cross-border e-commerce international standards in order to meet the challenges facing global supply chains.

 

e-Commerce Compliance and Technology

In addition to cross-border parcel deliveries, payment processing and revenue collection challenges, regulatory compliance continues to be a top concern. As e-commerce supply chains grow in complexity and businesses expand, they feel the impact more keenly. More sales channels, more industry partners, higher customer expectations, rapid evolution of technology and changing internal processes can cause confusion and reduce profits for the unprepared.

Decision makers and compliance leaders are looking to technology and automation to address the challenges of exponential e-commerce growth. The right technology makes sense of the massive data generated on a daily basis by retail operations, along with large volumes of products and nearly endless variations.

A centralized ecommerce solution has never been more important. As complexity increases, a holistic solution brings order to chaos. Consolidating management, tracking/monitoring, connectivity, and key supply chain processes improves visibility, streamlines operations and increases reaction time when addressing problems.

 

e-Commerce Compliance: Low-Value Shipments

Many e-commerce shipments qualify as low-value and are therefore exempt from duties and taxes. In the U.S., these shipments are eligible for Section 321 release. A Section 321 or de minimis shipment type is an informal entry or release option that allows goods valued at $800 or less to enter the U.S. without duty and without a formal entry filing. CBP’s de minimis value for Section 321 shipments was $200 or less before February 2016, but this was increased to $800 in 2016 in response to market needs and the growth of e-commerce.

Certain goods are not eligible for Section 321 release regardless of value. These are goods that need to be inspected by CBP officers, goods subject to anti-dumping duty (ADD) and countervailing duty (CVD), and goods regulated by partner government agencies (PGAs) like the Food and Drug Administration (FDA) and U.S. Department of Agriculture (USDA). Goods sent as gifts from a foreign country and goods for personal/household use that accompany travelers arriving in the U.S. are not cleared as Section 321 shipments.

Section 321 shipments have a daily restriction. A shipment is eligible for a Section 321 release if it does not exceed $800 in value, is not one of several lots under a single order or contract, and is imported into the U.S. by one person per day. Although a formal entry is not required for Section 321 shipments, CBP reserves the right to require additional documents for imports in certain cases, like when an invoice is not included in the parcel and there are discrepancies in the description or content.

For global retailers shipping products to the U.S., an understanding of CBP requirements for each shipment type is necessary, as well as the right technology to streamline processing and speed up cargo release. Similar requirements for electronic cargo data transmission are in place in other countries for the entry of e-commerce shipments. Businesses should invest in technology that helps optimizes compliance while keeping cross-border trade flows uninterrupted, or work with a trusted third party provider.

 

How CrimsonLogic Can Help with eCommerce Compliance

CrimsonLogic trade compliance solutions connect businesses, stakeholders, trade participants and regulatory agencies seamlessly. Enhanced connectivity means faster, easier and more efficient customs electronic document preparation and processing. Cargo gets cleared quickly and delivered to the consignee on time. For regulatory authorities, it means streamlined cargo screening, improved risk assessment, and reduced costs.

 

CrimsonLogic trade compliance solution benefits:

Optimize compliance while streamlining shipment processes
Easily comply with legal requirements through accurate data entry and comprehensive validation
Fast and easy preparation and filing of regulatory e-documents
Save time and money by streamlining trade activities
Access to 24/7 expert customer support via phone, chat and email

 

CrimsonLogic eCommerce Compliance Solutions

CrimsonLogic provides e-commerce and trade compliance solutions for North America, Mexico, Panama, Japan and Singapore.

 

Electronic Air Waybill (eAWB)

CrimsonLogic eAWB (Electronic Air Waybill) enables exporters to electronically submit transportation documents of air cargo shipments to a carrier or authorized Agent. Our eAWB solution helps trade participants comply with the global eAWB initiative.

 

HS Code Classification Service

Shipment classification is one of the trickiest aspects of trade compliance. CrimsonLogic HS Code Classification Service helps users quickly find the correct HS Code without requiring prior knowledge in customs declaration.

 

United States

CrimsonLogic ACE Highway, Ocean and Air solutions streamline the processing of electronic documents to CBP and other regulatory agencies while ensuring accuracy and optimizing compliance.

 

Canada

Solutions like CADEX and ACI eHBL allow users to prepare and transmit cargo data directly to Canada Border Services Agency (CBSA) and other government agencies, as well as receive real-time status notifications for easy shipment tracking.

 

Japan

CrimsonLogic Advance Filing Rules (AFR) solution helps marine carriers/operators and Non-Vessel Operating Common Carriers (NVOCCs) submit electronic shipment information based on the Ocean (Master) Bill of Lading and House Bill of Lading to the Japan Customs.

 

Singapore

CrimsonLogic is a pioneer in trade facilitation for Singapore clients through its TradeWeb™ Live! And eCO and BCT Services that allow users to submit electronic documents to Customs and receive notifications.

 

Mexico

CrimsonLogic trade compliance solution for Mexico helps users submit e-documents to Mexico Customs and make the shipment process less time consuming.

 

Panama

CrimsonLogic H2H eDeclaration Service for CFZ DMCE allows users to complete and submit required cargo documentation to the CFZ Administration and the Panama Customs Authority.

To learn more, visit our e-Commerce page or contact us today.

Contact CrimsonLogic today for more information on e-Commerce solutions!

CANADA
CrimsonLogic (Canada) Inc.

100 York Boulevard Suite 260
Richmond Hill,
Ontario, Canada L4B 1J8

North America toll-free
+ 1-877-763-6887
Local North America
+ 1-905-763-6887
Fax: 1-905-763-2321

 

UNITED STATES OF AMERICA
CrimsonLogic (U.S.) Inc.

19800 MacArthur Blvd. Suite 300
Irvine, California, U.S.A.
92612

North America toll-free
+ 1-877-763-6887, (Sales, Support, Billing)
Local North America
+ 1-905-763-6887 (Sales, Support, Billing)
Fax: 1-905-763-2321