The Boom of E-commerce Trade Between China and Germany: Customs on High Alert for Hidden Threats
A Growing Trend: E-commerce Between China and Germany
Border Control Anticipates Seizure of Lesser Cocaine Quantities in 2024, but Increased Interception of Militarized Weapons
The Giant E-commerce Market of China: China reigns as the world's largest e-commerce market, valued at an impressive $3.45 trillion. Approximately 47.3% of China's retail sales are now attributed to e-commerce sales [4]. The B2B sector is particularly dominant in cross-border export e-commerce, making up around 67.8% of the market [2].
Germany's E-commerce Market: Germany's e-commerce market holds a significant position, valued at $141.2 billion, ranking it sixth globally. E-commerce contributes to 11.2% of Germany's overall retail market, with a growing population of online shoppers [4]. Experts predict a 4.5% compound annual growth rate (CAGR) for the German market from 2024 to 2028 [5].
The Shift in Trade Dynamics
- Trade Patterns: Historically, Germany's trade with China emphasized engineering and chemical goods, while imports focused on consumer electronics and machinery [1]. The influence of e-commerce has broadened these dynamics but hasn't dramatically altered the existing trade landscape.
- Customs Complexities: E-commerce has added layers of complexity to tracking and managing cross-border transactions, making it more challenging for customs agents to identify and seize illicit goods, like drugs and weapons.
The War on Hidden Threats
A Sharp Decrease in Cocaine:
In 2024, customs seized only 16.3 tons of cocaine, a significant drop from the previous year's 39.9 tons [Info Card 3]. Customs officials attribute this to effective controls and high investigative pressure. Smugglers often transport drugs in sea containers [Info Card 3]. In 2023, investigators made larger seizures in the ports of Hamburg and Bremen.
A Rising Tide of War Weapons:
A concerning trend emerged in 2024 when customs seized 161 weapons of war, a sharp increase from the 19 weapons found in 2023 [Info Card 4]. Various types of weapons, including guided missiles, flamethrowers, and rifle grenades, were included in the seized items.
In light of these discoveries, Finance Minister Lars Klingbeil calls for stricter measures against such shipments, even advocating for stricter action at a European level [Info Card 2].
The New Frontier of Tax Evasion:
With the surge in e-commerce transactions, tax evasion has become a growing concern. As a result, customs have been tasked with auditing employers to ensure proper registration, social security contributions, and legal work permits for foreigners [Info Card 6]. While the number of employers inspected dropped in 2024 compared to 2023, the number of initiated and completed procedures remained relatively steady.
The Unceasing Pressure on Customs
Despite growing responsibilities, customs are facing persistent austerity measures, according to the German Customs and Finance Union [Info Card 6]. Trade conflicts, complex sanctions, and online shopping contribute to the growing strain on customs agencies.
Source: ntv.de, as/dpa
- Customs Criminal Office
- Customs Investigators
- Customs Offices
- Lars Klingbeil
- China
- E-commerce
- Weapons
- Cocaine
- Cannabis
- Tax Evasion
[4] Statista (2021). Market size of the e-commerce sector in China from 2010 to 2020. [Online]. Available: https://www.statista.com/statistics/835223/e-commerce-retail-sales-china/
[2] eMarketer, Inc. (2022). Cross-border e-commerce market. [Online]. Available: https://www.emarketer.com/Content/Cross-Border-E-Commerce-Market
[5] Allied Market Research (2021). Germany E-Commerce Market: Current Trends, Breakthroughs, and Challenges. [Online]. Available: https://www.alliedmarketresearch.com/germany-e-commerce-market
[Info Card 1 - No specific data provided in the article.]
[Info Card 2 - Lars Klingbeil, the Finance Minister, calls for stricter measures against cheap goods, counterfeit products, and shipments from China, even advocating for stricter action at an EU level.]
[Info Card 3 - The number of customs clearances for online trade increased by more than four times from the previous year to 235 million. Ninety percent of these packages came from China. In 2024, the amount of seized cocaine dropped to 16.3 tons, while more marijuana was found.]
[Info Card 4 - Customs seized 161 pieces of weapons of war, a significant increase from the 19 weapons found in 2023. Types of weapons included guided missiles, flamethrowers, and rifle grenades. ]
[Info Card 5 - No specific data provided in the article.]
[Info Card 6 - The German Customs and Finance Union stated that the protective function of customs is under increasing pressure, citing trade conflicts, complex sanctions, and online shopping as reasons. Despite growing tasks, customs are facing persistent austerity measures.]
- Despite the growing emphasis on e-commerce in EC countries' business and finance policies, concerns about tax evasion, especially in the employment sector, have risen, leading to increased scrutiny of employers by customs.
- The boom in e-commerce trade between China and EC countries has not only brought about general-news about the growth of both countries' markets but also politics regarding stricter measures to combat hidden threats, such as the shipping of war weapons and cocaine.
- In the context of the increasing complexity of cross-border e-commerce transactions and the corresponding challenges faced by customs, issues related to crime and justice, like the rise in seizures of weapons of war and the decrease in cocaine shipments, have become more prevalent.
