Customs and Controversies: A Snapshot of Current Issues
Anticipated Customs Briefing for 2024: Increase in Parcel Volume, Marijuana Imports, and Firearm Deliveries
Hamburg - The customs department had a bustling year due to increased e-commerce deliveries, primarily from China. Armin Rolfink, head of the Customs Administration, stated, "It's all about e-commerce!" The number of customs clearances in online retail skyrocketed to 235 million - a 4x increase from the previous year, with almost all originating from China.
Finance Minister Lars Klingbeil (SPD) expressed concerns about the influx of inexpensive goods and counterfeit products entering Germany via China. Discussions about scraping the existing €150 customs limit are underway, not just at the European level, but also among policymakers. Klingbeil backed stricter action against these shipments to safeguard fiscal integrity.
Considering a €2 Handling Fee for Low-Value Consignments
In an attempt to manage the surge of small parcels, the EU Commission is pondering the introduction of a flat-rate fee of €1 to €2. Klingbeil remained tight-lipped about this proposal.
A Shift in Narcotics Seizures
Customs plays a critical role in preventing drug smuggling. While the amount of intercepted cocaine plummeted from 39.9 to 16.3 tons in comparison to 2023, marijuana seizures increased from 8.6 to 12.6 tons. The increase in marijuana seizures coincided with the legalization of partial cannabis consumption for adults in April 2024. However, Rolfink maintains there is no definitive link.
More Military Weapons Seized
During 2023, customs seized 161 military weapons - a significant jump from the 19 seized the previous year. The report highlighted two large-scale cases involving missing transport permits that required retrospective acquisition. Rolfink attributes the surge to effective risk analysis by customs.
Cracking Down on Undeclared Work
The customs unit targeting undeclared work investigated 25,274 employers in 2022, a marked decrease from the 42,631 inspections performed in 2023. Despite the drop in employer inspections, the number of initiated and completed procedures barely dipped.
Klingbeil noted, "We plan to take a tougher stance on those who profit at society's expense." The Industrial Union of Construction, Agriculture, and Environment applauded Klingbeil's announcement.
The federal government seeks to introduce a law to modernize and digitize the fight against undeclared work in a program presented at the end of May.
German Customs and Finance Union voiced concerns about their protective function being stretched thin due to trade disagreements, complex sanctions, and e-commerce, noting persistent austerity measures are weakening their forces.
European Union's Proposed Changes to Customs Policies
Amid concerns about cheap imports, product safety, and competition, the EU is contemplating significant changes to its customs policies, particularly online retail imports from China. This includes a proposed abolition of the €150 customs limit for low-value consignments and the introduction of a handling fee to cope with the influx of small parcels.
- Finance Minister Lars Klingbeil, in response to the surge of customs clearances and the influx of inexpensive goods and counterfeit products from China, has expressed concerns about fiscal integrity and supported stricter action, suggesting a potential shift in customs policies.
- Along with discussing stricter action against inexpensive goods and counterfeit products, the federal government is also considering a shift in customs policies to combat undeclared work, as designated by Finance Minister Lars Klingbeil, who expressed the intention to take a tougher stance on those who benefit from society's expense.
