What hot news will be released in the cross-border circle this week? Hurry up and read this summary to understand the cross-border dynamics~

Platform information

Amazon requires you to fill in IEN, is there a crisis in the tax-covering channel?

Recently, a large number of sellers have reported that many British sellers who have been using the dual-clearance tax-guaranteed channel have had their sales rights restricted and are required to provide Import Entry Numbers (IEN) for shipments to the UK. In fact, the British Customs issued this notice as early as 2019, requiring major e-commerce platforms to independently apply for warehousing service operator due diligence (FHDDS) and increase efforts to supervise overseas sellers who evade taxes. Starting from April 1, 2019, Amazon will need to provide Amazon with an IEN number within 240 days after the seller's goods are placed in the warehouse. The full name of the IEN code is importentry number, which is a customs clearance serial number generated when goods are declared for import in the UK. Generally, when goods are imported into the EU, the EU customs will assign an IEN code to it and issue it to the logistics agent or freight forwarder.

Amazon account funds frozen, suspected to be tax-related

European sellers received a warning email from Amazon about funds being reserved. Amazon stated in the email that due to EU/UK business establishment requirements, another Amazon account of the relevant seller is under review, so the funds in the relevant seller's account have been set as a reserve.

Most of the sellers who received this email are sellers with local accounts in Europe such as the UK and France. Therefore, many sellers have speculated that the email is related to the tax payment wave that broke out on Amazon a few years ago. It is reported that some of the accounts of the sellers who received the email this time are within the scope of the accounts that received the tax payment notice.

Amazon's largest brand aggregator goes bankrupt

On February 28, Thrasio, Amazon's largest brand aggregator, filed for bankruptcy protection in a New Jersey court under Chapter 11 of the U.S. Bankruptcy Code. This company, founded in 2018, was the fastest in the United States to reach a market value of US$10 billion. As a start-up company, I didn’t expect it to collapse in just 5 years.

Amazon launches solution to reduce product returns

Amazon launches solution to reduce product returns. According to reports, the plan will run through the entire product life cycle. Before the product is launched online, the Merchant Detector (OX) will be used to measure the average return rate of the market segment; and the Product Selection Compass (MPG) will be used to refer to the return data and insights of the existing product category in the mall that has not been launched online. When new products are put on the shelves, there will be growth opportunities. Based on the updated return insights, the five-point description of the listing can be improved to improve the quality of the listing and prevent more returns.

Logistics information

Number of container ships diverting reaches new high

According to the latest data from Linerlyrica, as of February 25, 2024, the number of container ships choosing to circumnavigate the Cape of Good Hope in Africa instead of crossing the Suez Canal has reached an unprecedented 403, with a total transport capacity of 5.14 million TEUs. This significant increase is partly due to French shipping giant CMA CGM's diversion measures to avoid the Red Sea route from February 1, 2024. In addition, some smaller non-alliance shipping companies are also increasing the number of ships passing the Cape of Good Hope route. Chinese shipping company OVP also demonstrated its strategic thinking on route optimization by rerouting an eastbound ship bound for Russia in the Baltic Sea via the Cape of Good Hope.

Shipping giant CMA CGM announces resumption of Red Sea sailings

French container giant CMACGM has resumed sailings in the conflict-prone Red Sea region. The company said in its official statement that after reassessing the situation in the Red Sea, it has decided to resume Red Sea sailings on a case-by-case basis. CMA CGM emphasized that the ship's situation will be carefully assessed before each transit, but it cannot predict or announce the choice of route. Notably, Oman-based Asyad Shipping Company, in a letter to customers and business partners, pledged safe navigation through the risky Red Sea.

Shipping companies issue important announcements; there will be new requirements for goods entering the EU

Recently, the shipping company OOCL announced that starting from June 3, 2024, the EU's new customs pre-entry security system - Import Control System 2 (ICS2), will be implemented for ships passing by sea, inland waterways, roads and railways. New procedures have been introduced for cargo entering the EU’s 27 destination ports as well as Norway, Switzerland and Northern Ireland. According to reports, ICS2 is a new EU customs cargo advance information system that adapts to global business models by improving data-driven customs security processes to promote the free flow of trade. The system will collect data on all goods entering the EU before they arrive. Customers are required to provide the following additional information in the Shipping Instruction (SI) for submission by the carrier: - HS commodity code (6 digits), detailed description of the goods, EORI of the consignee within the EU, detailed address of the consignee.

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This week’s cross-border information and things happening in the cross-border circle

Amazon requires you to fill in IEN, is there a crisis in the tax-covering channel?

Amazon launches solution to reduce product returns

Number of container ships diverting reaches new high

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