EU Auditors Highlight Weaknesses in E-Commerce Customs Duty Collections

EU customs exemptions for low-value shipments may encourage undervaluation, reported the European Court of Auditors on collection of customs duties for e-commerce imports. Duties aren’t levied on imports of goods less than 150.01 euros ($168). "These low value consignment reliefs (LVCR) can be abused via: (i) undervaluation of goods, which are declared below the thresholds for the VAT and/or customs exemptions; (ii) splitting consignments to be under the threshold limit; (iii) importing of either commercial consignments declared as gifts or of goods which are ineligible for the relief," auditors said. Ildiko Gall-Pelcz from the European Court of Auditors said Tuesday that “e-commerce is particularly open to abuse and its vulnerability to irregularities and fraud has not yet been fully mitigated.”