The second half of 2020 and 2021 will see numerous regulations around product data, VAT changes and compliance being introduced worldwide, affecting businesses ranging from small eCommerce stores to the larger postal operators.
The regulations around data enhancement for postal operators such as the introduction of Import Control System 2 (ICS2) or the implementation of the US STOP Act will provide the biggest operational challenges.
Both require postal operators to provide accurate and detailed consignment data prior to goods being imported. The minimum data set that will be required as of the introduction of the regulations will be HS6 codes, product descriptions, the value of goods, and the details of the senders and receivers.
Failure to comply with these changes will result in goods being returned, destroyed, or held until the required data is received.
VAT models are being completely revamped in 2021 with the biggest change being the abolition of the exemption of VAT on low value items under €22. This will result in EU and non-EU businesses charging VAT at checkout for consignments worth €150 or below.
Declaring VAT payments will be done via the Import One Stop Shop (IOSS) once it has been introduced which will make the businesses liable for the declaration and payment of VAT to the country of destination, replacing the need to register in individual countries.
Nothing moves without the right data and increasing global regulation is providing huge challenges to those involved in cross-border eCommerce trade.
Hurricane covers 4 key pillars – data enhancement, duty and tax calculations, prohibited and restricted goods screening, and denied party screening.
Hurricane provides businesses with the tools to improve their compliancy – reducing the risk of heavy fines, as well as improving their data, ensuring goods move through customs smoothly. It also prevents additional costs and improves the customer experience and your overall competitiveness.
Hurricane’s solutions include our deep-learning Bluestone AI that drives its auto-classification function; our Aura API that covers Duty and Tax Calculations, Prohibited and Restricted Goods Screening and Denied Party Screening; and our game-changing Zephyr bulk clearance API which enables the efficient checking and completion of cross-border shipment pre-advices submitted to postal authorities by their customers.
To help you stay ahead of the regulations that are coming into force, we have produced a handy infographic explaining what they are and how they will impact your business.