By Alexander Maasik
One of the main goals of postal operators is to make sure packages and goods move quickly and without delays.
That requires the need to comply with international law and cross border trade regulations. But it is not only about understanding and following the law. To be truly efficient, a postal operator must automate as many of the internal processes as possible. Only then can they truly effectively fulfil this crucial goal.
HS codes and Electronic Declarations
An essential step to making certain goods travel compliantly and efficiently is to make sure the packages have the correct HS code.
The HS code is a standardized numerical method of classifying traded products. It is used by customs authorities worldwide to identify products when assessing duties and taxes and for gathering trade statistics.
The HS system covers over 98 per cent of goods. Countries can assign a more extended code themselves to have a more specific classification. For instance, the US uses 10-digit codes, and China’s codes are 13 digits. Still, for all countries, the first six numbers of a code are the internationally agreed HS-6 code.
Using the correct HS codes makes it less likely that packages will be opened and checked by customs. Meaning it can move across borders compliantly and without delays.
For this, of course, the HS code must also be correctly marked on the customs declaration. A customs declaration is the official document that provides a detailed overview of which goods are imported or exported. To comply with the legal obligations and place goods under a customs procedure, a customs declaration needs to be lodged with the destination countries customs authority.
On 1 July 2021, the threshold of 22 euros will be removed in the EU. This means that all items that enter the EU will need to be electronically declared, leading to an unprecedented number of declarations. The only way to handle the increased volume will be via automated electronic declarations.
PaRIS and Denied Party screening
There are two types of restrictions to moving goods and parcels across borders.
First, there are many people with whom doing business with is illegal. And there are also restrictions on which goods can be shipped to which country.
Postal operators are required by law to make sure they follow these lists. Failing to do so can be a criminal offence. A genuine chance business that breaches this obligation can be fined or even lose their export license.
There are a lot of people in international sanctions lists with whom a marketplace is not allowed to do business. There are also many country-specific lists as well.
When it codes to restricted goods, the field gets even more complicated. Each country can have their own rules on what sort of goods they restrict. While some categories of goods are relatively evident and standard (endangered species, dangerous chemicals etc.), the specifics can be tricky. For instance, the length of the blade on a knife you can ship to different countries varies.
Don’t be slowed down.
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Eurora’s complete compliance solution for postal operators.
While there are other services that offer “HS code allocation” or “denied party screening” services, Eurora is the only company to provide a fully automated “AI” based service that deals with all of these issues faced by postal operators.
Eurora™’s Intelligent Cross Border Compliance Platform can screen the package and recipient against denied parties and prohibited item lists. It automatically assigns a correct HS code based on product description, calculate duties and taxes for each item sent, then, the AI will create the necessary electronic declaration and present it to the proper customs authority.
This entire process will take less than a second, so by the time the parcels start moving, all the necessary procedures have already been completed. So don’t hesitate to reach out to see how Eurora can help your systems become faster and more reliable.
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