Compliance
Hurricane’s solutions have been designed to keep our customers compliant.
COUNTDOWN TO ICS2 AND THE US STOP ACT
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COUNTDOWN TO EU VAT CHANGE
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The geopolitical landscape over recent years (e.g. Brexit, the USA / China trade war, changes in VAT regulations and advanced electronic data capture) is creating cross-border trade uncertainty and complexity, after decades of perceived stability.
It is creating far-reaching changes to the legislative and regulatory environment and the associated compliant shipping procedures.
Compliance is never optional. It is like a tax; any shop wanting to compete in the fast-paced world of eCommerce sales is required to fulfil their obligations and demonstrate they are equipped to operate in accordance with the law and the regulations.
The extra-territorial approach of some countries, and the successful prosecutions that have ensued, means that a compliance failure somewhere in the supply chain can remain the eCommerce store’s responsibility.
This compliance requirement is only expected to increase as the global political arena becomes more uncertain and complex.
Hurricane’s solutions offer far more than a sophisticated landed cost calculation tool and aim to support companies to achieve their international compliance obligations.
We also provide prohibited and restricted goods screening and denied parties screening to ensure that the right goods get to the right people in the right places at the right time.
It is illegal to provide economic benefit or economic resources (basically, do business with) any individual, organisation or entity listed on a variety of lists (currently more than 300), issued by the UN, EU and at country level.
Doing business with these individuals, organisations or entities can result in considerable financial penalties, company sanctions and even jail for senior executives. Hurricane’s system is designed to help screen transactions with the aim of ensuring that trade is not undertaken with such individuals, organisations or entities.
Developments
Current developments either in force or due in the coming months include:
- Self-declaration of terminal dues by members of the Universal Postal Union (UPU) led by the US in 2020 and all other members in 2021.
- Abolition of exemption of VAT and indirect taxes on low value items.
- Enforcement of The US STOP Act requiring advance electronic data entry on all mail parcels (the Act came into effect in July 2020).
- Modernising of VAT for cross-border eCommerce via the International One Stop Shop making the retailer, web shop or market place liable for the declaration and payment of VAT to the country of destination.
- Overseas suppliers sending parcels to the UK responsible for paying any import VAT that is due on goods valued at £135 or less. Low value consignment relief (LVCR) on commercial imports valued at £15 or less also being removed. Other countries expected to follow suit.
- Entry Summary Declarations required from postal operators on all postal consignments prior to moving goods into the EU’s customs territory because of the introduction of ICS2.
