Customs Clearance Challenges: Why Data Has Become the Foundation of Cross-Border Success

CBM: Customs regulations seem to be becoming more complex every year. What are the biggest customs clearance challenges online retailers are facing today?

Guy Cliffe: Interestingly, the biggest challenge isn't necessarily the regulations themselves; it's how quickly customs requirements are evolving across the world.

Authorities are moving away from paper-based processes and placing far greater emphasis on advance electronic data, automated risk profiling and supply chain transparency. That means retailers need to start thinking about customs much earlier in the fulfillment process.

Businesses are also selling into more international markets than ever before, each with different thresholds, documentation requirements and customs rules. Managing that complexity while still delivering the seamless customer experience consumers expect has become one of the biggest operational challenges in cross-border e-commerce.

The retailers that perform best are those that stop viewing customs as an administrative obligation and start treating it as a strategic part of their international operation.

CBM: Since Brexit, how has the customs landscape changed for retailers selling between the UK and the EU?

Guy Cliffe: Brexit fundamentally changed how goods move between the UK and the European Union. Customs is now part of every shipment. Most businesses have adapted remarkably well, but I still see companies underestimating the importance of customs preparation.

One of the most common mistakes is assuming customs only matters when goods are ready to leave the warehouse. In reality, customs begins with the quality of the product data inside a retailer's own systems. Incorrect commodity codes, incomplete product descriptions, or inaccurate customs values all create unnecessary delays, additional costs, and poor customer experiences.

Returns are another area that is frequently overlooked. Many retailers are missing opportunities to recover import duties or simplify reverse logistics because customs isn't being considered as part of the overall returns strategy.

CBM: Many retailers struggle with customs delays. What usually causes shipments to be held at the border?

Guy Cliffe: Most delays aren't actually caused by customs authorities. They're caused by the information businesses submit. Missing shipment data, inconsistent documentation, inaccurate classifications, or discrepancies between commercial documents are what typically trigger additional inspections.

As customs authorities increasingly rely on automated risk assessment systems, data quality becomes the deciding factor. Retailers often assume they need a faster logistics solution when, in reality, improving the quality and consistency of their customs data will have a much greater impact.

CBM: Product data seems to be becoming increasingly important. How critical are accurate product descriptions and HS codes?

Guy Cliffe: They're absolutely fundamental. Good customs clearance starts long before a parcel reaches the border. Every product description, HS code, declared value and shipment detail contributes to how customs authorities assess risk.

Generic descriptions like "gift" or "clothing" are no longer sufficient. Retailers that invest in detailed product information don't just reduce delays—they improve compliance, minimize manual intervention and ultimately create a much better customer experience.

CBM: Regulations such as ICS2 are changing customs procedures across Europe. How should retailers prepare?

Guy Cliffe: The most important thing is recognizing that ICS2 isn't a standalone regulation. It's part of a much broader shift towards digital customs. Authorities increasingly expect shipment information before goods even begin their journey.

Retailers should review the quality of their customs data today, work closely with experienced customs partners, and ensure their systems can support different international reporting requirements. Businesses that build flexibility now will adapt far more easily as new regulations continue to emerge.

CBM: How do customs challenges differ between marketplaces and mid-sized online retailers?

Guy Cliffe: Large marketplaces benefit from enormous scale and sophisticated technology, but they also have to manage millions of products from thousands of different sellers. Maintaining consistent customs data at that scale is extremely challenging.

Mid-sized retailers usually have much greater control over their own product information, but often lack dedicated customs expertise or experience entering new international markets. Despite those differences, the fundamentals remain exactly the same. Success depends on accurate data, robust processes, and choosing the right customs partner.

CBM: Returns aren't usually associated with customs. Why should retailers think differently?

Guy Cliffe: Returns should be part of every retailer's customs strategy. Every returned item may involve import duties, VAT, and customs procedures. One of the biggest missed opportunities is the recovery of duty.

Many retailers are entitled to reclaim duties on returned goods but simply don't have the processes in place to do so. A well-managed returns operation doesn't just improve customer experience; it improves cash flow and reduces unnecessary costs.

CBM: Technology is transforming customs. Which innovations are having the biggest impact?

Guy Cliffe: Automation is removing much of the manual work that has traditionally slowed customs. Direct integration between retailer systems and customs platforms helps ensure information is captured accurately and submitted consistently.

We're also seeing automated validation tools identify missing or inconsistent data before shipments even reach customs. Looking ahead, intelligent technologies that provide better supply chain visibility and identify compliance risks before goods move will become increasingly valuable.

CBM: Finally, what should retailers prepare for over the next two to three years?

Guy Cliffe: Customs authorities will continue to place greater emphasis on advance electronic data, digital compliance, and security screening. Manual processes will continue to disappear, while scrutiny of low-value e-commerce shipments is likely to increase.

The retailers that invest today in robust data, integrated technology, and flexible customs processes won't simply remain compliant; they'll be the businesses best positioned to compete internationally while delivering the frictionless customer experience consumers increasingly expect.

The post SPOTLIGHT ON… Guy Cliffe: Director at UKP Worldwide appeared first on Cross-Border Magazine.

The European Commission considers it time to reform its customs system, set up 55 years ago when e-commerce still needed to be fully developed or relatively almost nonexistent and was more of a futuristic idea. 

Aware of the current challenges, the EU seeks to implement new regulations to ensure compliance with EU health and environmental standards, preventing consumers from buying products that do not comply.

In addition, it is proposed to approve the payment of duties on shipments of less than 150 euros, which would strengthen the collection of public revenues and contribute to the public coffers. This measure also seeks to close a loophole in which customs fraud has occurred since, until now, duties were not required to be paid on shipments of lower value.

The proposed measures are based on a report submitted thirteen months ago by a committee of international trade experts. Adopting some of the proposed measures will reduce cumbersome customs procedures, replacing traditional declarations with a smarter, data-driven approach to import monitoring. At the same time, customs authorities will have the tools and resources to properly assess and stop imports that pose real risks to the EU, its citizens, and its economy.

Shipments under 150 euros will now pay tariffs

The central pillar of this new reform is the collection of customs duties - tariffs - on shipments under 150 euros. This will prevent fraudsters from taking advantage of these goods since "up to 65% of these packages entering the EU are undervalued to avoid import customs duties". 

In addition, platforms will have a very relevant role because "they will be responsible for ensuring that customs duties and VAT are paid at the time of purchase, so consumers will no longer have to face hidden charges or unexpected paperwork when the package arrives." 

The second pillar of this reform relates to data control. Companies wishing to bring goods into the EU can register all information about their products and supply chains in the new EU Customs Data Center. 

It will collect data provided by companies and, through machine learning, artificial intelligence, and human intervention, will provide authorities with a 360-degree overview of supply chains and the movement of goods. When the 'Trust and Check' seal is achieved, they can sometimes release their goods into circulation in the EU without any active customs intervention.

Collective customs are the goal of the European Commission

The third pillar is cooperation between countries. With the new system, all member states will have access to real-time data and will be able to pool information to respond to risks more quickly, consistently, and effectively. It will also help ensure the proper collection of duties and taxes to the benefit of national and EU budgets.

The implementation of the reform will be gradual. The e-commerce sector data center will start operating in 2028 with information concerning purchases and sales through digital channels. In parallel, the EU Customs Authority will be created, which will be decentralized and draw on the resources of the Member States. However, the implementation process will last until January 1, 2038, as all sectors will be progressively added.

The post The European Commission discusses a reform to its customs system appeared first on Cross-Border Magazine.

The then thousand kilometers journey from Hamburg to Shaanxi, the capital of central China's province where JD operates one of a key distribution hub for cross-border imports, has been completed with goods including food and beverages, home furnishings and automotive supplies. A lot of these products are expected to sell on JD's Anniversary Sales on June 18th.

According to JD.com, the route by train is 35 days faster than using existing sea routes to deliver pan-European goods to China. It would also be 80% cheaper than air transport. The Chinese e-commerce platform says it can take care of all customs procedures as well, as they handle every aspect of the freight process from the train station in Germany to the customers' doorstep in China.

The post JD.com brings China closer to European retailers by train appeared first on Cross-Border Magazine.