E-Commerce Boom Fuels China Trade: Customs Encounter Less Cocaine, Yet More Weapons in 2024
Customs anticipate a decrease in seized cocaine in 2024, yet an increase in intercepted war weaponry for the year.
Here's a peek into the bustling world of customs as they juggle a myriad of tasks. President Rolfink of the General Customs Administration reported a significant increase in parcel shipments - a trend largely attributed to e-commerce. In 2024, customs clearances in online retail shot up by a staggering 4 times compared to the previous year, with most packages hailing from China.
Finance Minister Lars Klingbeil echoed concerns about the influx of cheaper goods and counterfeits from China. Discussions are taking place, even at the European level, about possibly abolishing the existing customs limit of 150 euros. Klingbeil advocated for stricter action against these shipments and remained silent on the EU Commission's consideration of introducing a flat-rate fee.
Goods Galore, But What About The Guns?
One of customs' responsibilities is thwarting drug smuggling, and their annual report indicates a notable decrease in seized cocaine compared to 2023 - from 39.9 to 16.3 tons. This decline suggests that existing controls and investigative pressure are effective, according to Klingbeil. However, the opposite seems to be true when it comes to weapons. Seized weapons increased significantly this year - 161 pieces compared to 19, including guided missiles, flamethrowers, and rifle grenades.
Unraveling Two Major Cases
Investigators reported two significant cases involving missing transport permits, which needed to be backdated. Rolfink attributed the increase to good risk analysis by customs. He, however, was tight-lipped about the specifics of these cases.
Klingbeil's Crusade Against Tax Evasion
The Financial Control Schwarzarbeit unit of customs keeps a close eye on employers, ensuring they register employees for social security, prevent social benefit fraud, and verify work permits for foreigners. Last year, the financial control unit inspected 25,274 employers, a drop compared to 2023 when 42,631 were investigated. However, the number of initiated and completed procedures was only slightly below the 2023 level.
Industry Reaction and Future Plans
The Industry Union of Construction, Agriculture, and Environment praised Klingbeil's announcement of stricter action against tax evasion. The federal government has plans to modernize and digitize the fight against tax evasion, as outlined in a program presented in May.
The German Customs and Finance Union cautions that the protective function of customs is under pressure due to trade conflicts, complex sanctions, and online shopping. The union's chairman, Thomas Liebel, laments the ongoing austerity measures despite the growing tasks.
- Armin Rolfink
- Lars Klingbeil
- Customs Criminal Investigation Office
- Customs Investigators
- Customs Offices
- China
- E-commerce
- Firearms
- Cocaine
- Cannabis
- Tax Evasion
Insights:
- The rise in e-commerce parcels from China has led to a surge in customs clearances, creating both challenges and opportunities.
- Customs measures have been effective in curbing drug smuggling, evident by a significant decrease in seized cocaine compared to 2023.
- However, the number of seized weapons has skyrocketed, raising concerns about illegal arms trafficking.
- The increase in weapons seizures could lead to calls for stricter regulations on arms imports and exports, potentially impacting the legal firearms market and defence industries.
- The influx of cheaper goods via China could contribute positively to the economy but may also lead to increased competition and potential job losses in local industries.
- The Finance Ministry is targeting sectors like hairdressers, cosmetologists, and barbershops to crack down on tax evasion.
- Customs, already under pressure due to trade conflicts, complex sanctions, and online shopping, are weakened by persistent austerity measures.
- As e-commerce from China fuels a surge in customs clearances, Armin Rolfink, President of the General Customs Administration, is simultaneously grappling with the challenges and opportunities it presents.
- Customs investigators are expressing alarms over the increasing seizures of weapons, such as guided missiles, flamethrowers, and rifle grenades, which have skyrocketed in 2024 compared to the previous year.
- In a bid to crack down on tax evasion and ensure compliance with employment policies, Lars Klingbeil, the Finance Minister, is focusing on sectors like hairdressers, cosmetologists, and barbershops, reinforcing the protective function of customs offices amidst tough economic times.
