E-Commerce Overtakes China Trade: Customs Detect Less Cocaine, Yet More Arms in '24
Reduction in Seized Cocaine for Customs Agents in 2024, Yet Quantity of Military-Grade Weapons Increases
Last year, the General Customs Administration found themselves immersed in e-commerce madness. "It's all about e-commerce," exclaimed Armin Rolfink, the president of the administration. In '24, the number of customs clearances for online retail surged a whopping 4x compared to the previous year - a staggering 235 million. "Give it up for the Middle Kingdom, baby!" Rolfink quipped, highlighting China's dominant role in these shipments.
Finance Minister Lars Klingbeil warned that an influx of cheap goods and counterfeit products from China were finding their way into Germany. There's talk, even at the European level, about abolishing the existing customs limit of 150 euros. Klingbeil advocated for stricter action against these shipments, shunning comments on the EU Commission's proposal for a flat-rate charge of one to two euros.
Drug Busts
While customs worked tirelessly to safeguard against drug smuggling, the amount of seized cocaine surprisingly halved from '23 - plummeting from 39.9 to 16.3 tons. Rolfink hailed the drop, stating that tight controls and investigation pressure were effective. Smugglers predominantly brought drugs to Europe in sea containers. However, customs discovered more marijuana – soaring from 8.6 to 12.6 tons compared to the previous year. Rolfink dismissed any connection to the legalization of cannabis for adults in April '24, declaring they found no evidence to suggest it influenced the surge.
Arms Race
But customs had a particular concern – the spike in weapons of war imports. In '24, they seized an alarming 161 such items. The figure in '23 paled in comparison with just 19 pieces. Guided missiles, flamethrowers, and rifle grenades made it onto the arms list.
Customs Crackdown on Underground Economy
Customs also checks whether employers register employees for social security, verify the legality of social benefits, and ensure foreigners have work permits. In '24, they scrutinized 25,274 employers, significantly fewer than the 42,631 investigated the previous year. However, the number of initiated and completed procedures only slightly fell short of '23's level.
"We gotta tighten the screws!" Klingbeil declared. "We're no pushovers when it comes to wiping out the shady characters who profit at society's expense!" The Industry Union of Construction, Agriculture, and Environment saluted Klingbeil's plans, applauding his efforts to combat black-market labor.
The federal government is planning to pass a law modernizing and digitizing the fight against black-market labor, as laid out in a program presented at the end of May. According to the German Customs and Finance Union, the protective function of customs is under increasing pressure due to trade conflicts, complex sanctions, and online retail. The union laments persistent austerity measures that undermine customs' ability to fulfill its duties.
- Customs Criminal Investigation Office
- Customs Investigators
- Customs Offices
- Lars Klingbeil
- China
- E-commerce
- Weapons
- Cocaine
- Cannabis
- Black Market Labor
Enrichment Data:
E-commerce Impact on Customs in Germany
'24 witnessed a significant e-commerce impact on customs in Germany, centering mainly around parcel shipments.
- Parcel Shipments: The EU experienced approximately 4.6 billion low-value parcels, with around 91% originating from China. This began to strain EU customs systems, including those in Germany[2][4][5].
- Regulatory Response: In response, the EU proposed a €2 handling fee for direct-to-consumer parcels from China. Despite opposition, this fee is anticipated to be implemented by 2026, aiming to ensure compliance with EU safety and regulatory standards[2][5].
- The surge in e-commerce in '24, especially parcel shipments from China, placed significant pressure on customs offices in Germany, as explained by Financial Minister Lars Klingbeil.
- While the seizure of cocaine dropped significantly in '24, customs investigators reported a concerning increase in the import of weapons of war, signaling the need for a strong Customs Criminal Investigation Office.
- With an increase in e-commerce and the resulting strain on customs systems, Lars Klingbeil emphasized the need for stricter actions against counterfeit products and black-market labor, expressing concerns about the impact of the underground economy on the Middle Kingdom and Germany's business, finance, politics, and general-news arena.
