In its bid to boost the export prospects of small businesses, the E-Commerce Trade Commission (E-CTC) met with exports minister Gareth Thomas this week to present its most recent report on how to remove e-commerce trade barriers.
Meanwhile, amid increasing tariff tensions, the US and EU are on the same page about one trade issue: cracking down on the recent surge in parcels imported from China via e-commerce websites.
E-commerce meeting
Representatives of the E-CTC met exports minister Gareth Thomas this week to cover the commission’s progress so far in supporting small businesses to export via online platforms.
The Commission has collected insights from businesses at regional focus groups which will be collated into a report designed to support the design of policy that removes online barriers currently faced by SMEs.
The Commission’s interim report, ‘Small business, big world’, published last year, offered solutions such as the removing of obstacles faced by female SME-owners, highlighting emerging markets as a source of export opportunities and increasing access to trade tech.
The Commission was convened in 2023 by the Chartered Institute of Export & International Trade with the goal of supporting 70,000 SMEs to fulfil their potential to grow through exports, via online channels including e-commerce. The Social Market Foundation estimates that the value added to the UK economy by these firms reaching their export potential could be as much as £9.3bn.
Chinese parcel crackdown
The EU has launched several investigations into the Chinese e-commerce platforms that facilitate the sale of high volumes of low-value goods.
Last week, the European Commission (EC) launched a probe into Chinese e-commerce platform Shein, citing consumer protection concerns. The FT reported that an official from the bloc said that there was a “reasonable suspicion” that the platform has been selling illegal goods, counter to EU consumer protection rules.
On Wednesday (5 February), the EU announced plans to make all e-commerce platforms, such as Shein, Temu and Amazon Marketplace, liable for dangerous or illegal products sold via their sites.
In response to the investigation, Shein made cooperative noises, saying that it plans “to work closely” with the EC and national protection authorities, and that it wants to ensure European consumers can “shop online with peace of mind”.
Import increase
The European investigation comes alongside figures showing that the number of lower-value parcels entering the EU reached 4.6 billion last year, or 12 million per day, with 91% arriving from China – double the figure from 2023, Reuters reports.
In a statement, the EU’s tech chief Henna Virkkunnen said that the bloc “want[s] to see a competitive e-commerce sector that keeps consumers safe, offers convenient products, and is respectful of the environment”.
US U-turn
More recently the US has suspended plans to impose tariffs on small parcels arriving from China, as federal agencies administering the US border grapple with how best to process the estimated 4 million Chinese packages entering the country daily.
AP reports that an executive order issued last Wednesday failed give a date for the suspension’s end, but that it would require the Department of Commerce putting “adequate systems” in place to “fully and expediently collect tariff revenue”.
‘Absolutely incredible’
Speaking to the agency, vice president of supply chain platform e2open John Lash said that the pause was unsurprising given the volume of parcels requiring processing.
“The volumes are absolutely incredible and, all of a sudden, they go from not requiring filing (for tariffs) ... to actually requiring full filing, which is a complicated task.”
He also said the decision reflects a discrepancy between policy aims and practice, adding that “it’s just showing we’re moving fast”.
“The implications are not fully understood when some of these regulations are put in place.”
De minimis loophole
The introduction of tariffs was initiated by the Trump administration’s decision to close a loophole that prevents the US from collecting revenue on small packages.
Under US de minimis rules, packages containing goods with a retail value of under US$800 were not subject to any customs charges. Translated as “too small to matter”, the US de minimis threshold is notably much higher than many other nations – in the UK, non-excise goods worth more than £135 are subject to customs measures.
Bloomberg reports 2024 figures that showed the equivalent of 4 million packages entering the US every day last year were claiming the de minimis exemption, with China reporting the total value of small parcel exports to the US reached $23bn.
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