WCA eCommerce 1st Annual Conference - Workshop 1 Topic: European eCommerce Customs Regulations Speaker: Ed Jansen Manager Customs & Fiscal, e-Commerce and Q.M. Van der Helm - Hudig Rotterdam B.V.

1. An introduction to e-Commerce in the Netherlands, Your Gateway to Europe!
Van der Helm-Hudig Rotterdam B.V.
Ed Jansen
1st ANNUAL
CONFERENCE
HYATT REGENCY MIAMI

2. Van der Helm-Hudig : Facts & Figures
260
Employees
€
>100m
Turnover
60
Own Trucks
70k m2
Warehouse
69Logistic top 100
Our S.C.Services includes;
Customs- and Tax Services;
Customs- & Taks formalities.
Fiscal Representation.
E-Commerce.
Warehousing :
Storage and Handling.
Distribution.
Orderdesk.
E-Fulfilment.
Value Added Service.
Reversed Logistics.
Seafreight, Airfreight, Multimodal Transport (Road/Rail):
Import & Export.
FCL en LCL / FTL en LTL.

3.  Fiscal environment: Fiscal representation, VAT deferment, Bonded warehousing, Trade facilitating authorities
 Location: Proximity to your market
 Infrastructure: Leading main ports and hinterland connections
 Workforce: Flexible, highly skilled, multilingual
 Experience: Long history in logistics
 Knowledge: Well developed logistics industry
 Outsourced solutions: All relevant players are present in The Netherlands
the Netherlands, Your Gateway to Europe!
The Netherlands offers excellent conditions to develop the European market and create the most effective European supply chain:

4. E-Commerce in Europe: Facts & Figures
E-commerce is growing strongly 1st quarter of 2017.
Dutch consumers in the aged of 15 y. and older, spent in the first quarter of €2017 about 5.55 billion at shopping sites , spread over 44.43 million
purchases. Both in online spending as in online purchases, this means a growth of 11% over the same period last year.
Source: CBS statistics
Forecast growth online share to 2025 (Netherlands)
Share of online revenue by category
Food
Health & Beauty
Living (Home & Garden)
Clothing
Shoes
Consumer electronics
IT
Household electronics
Toys
Media & entertainment
Source: Thuiswinkel.org /Gfk 2016 2016, forecast 2016 ING Econimic Office
Online = pre webshops (web only) and webshops of physical stores
European B2C E-Commerce Sales.
Total online sales of goods and services in Europe, in billions of euros, 2011-2016.
European B2C E-Commerce Growth rate.
Percentage change in B2C e-commerce turnover, 2011 - 2016

5. Dutch Customs facts 2015 + foreseen challenge
The number of checks is related to the number of declarations.
(Fixed percentage determined by EU Commission Brussels)
The annual increase of declarations is about 15%.
The annual increase of checks become unmanageable.
These problems occur in each member state!
Source: Dutch Customs

6. The three main challenges for merchants striving to expand their business cross-border are;
Legal fragmentation.
Logistics/distribution.
Customs- & Taxation issues (VAT).
E-commerce challenges

7. This presentation is limited to customs formalities on importation;
Since May 1ste, 2016 (the implementation of the United Customs Code) there are three possibilities;
1. Standard declaration in regular customs system ‘AGS’. (issuing manual declarations)
2. Declaration in advance in regular customs system ‘AGS’. (issuing manual declarations)
3. Declaration by a separate automated tool; VENUE.
-similar tool is already used by express carriers (DHL, FedEx, UPS, Post NL) named as “couriers blue print”
-also possible for other companies (Customs software ‘go live’ date 01-07-2017).
-files are pre-formatted and encrypted.
Customs formalities & possibilities

8. 1. B2B – Business to Business - Fiscal Representation
2. B2C – Business to Consumer - Direct labelled to consumer
3. B2C – Sold after storing at a bonded warehouse - Not labelled to consumer
4. E.D.C – Stock transfer to an EU Distribution Centre - Not sold before storage
5. FBA – Fulfilment By Amazon - Stored at and sold by Amazon
All transactions created electronically through a computer network
(eg. the Internet), that result in a movement of physical goods and
are subject to customs formalities.
Definition e-commerce for Customs
Most common Business models:

9. Van der Helm-Hudig Rotterdam B.V. is able to act as your Fiscal Representative;
Your advantage - No cash payment of import VAT!
Import clearance and subsequent transaction
By using our VAT number including our VAT transfer license (art.23), we act as your Fiscal Representative in the Netherlands.
The Import VAT payment is deferred to the periodic VAT report.
Due to this periodic VAT report, VAT will be paid and refunded based on your sales invoices.
No cash payment of import VAT applies.
The subsequent shipment is subject to 0% or reverse charge of VAT in most situations.
The VAT refund on import, the 0% VAT rate or the reverse charge method on the subsequent transaction will
only apply if all conditions are met. If not - the transaction is subject to VAT payment!
If you like to know more about this topic, please don’t hesitate to contact us.
1. B2B – Fiscal Representation

10. 1. Goods ordered on a website,
labeled and shipped to the EU, directly followed by an import declaration for free circulation on behalf of the
consignee (private individual/customer).
2. Goods transported to the EU without selling,
stored in a bonded warehouse and during the storage ordered on the website, labeled, imported into free
circulation of the EU and delivered to the consignee (private individual/consumer).
3. Goods transported not labeled to EU without selling,
stored in a free warehouse and before storage imported into free circulation on behalf of the exporter.
4. Goods transported (not labeled) to EU without selling, with the intention to store at an Amazon warehouse in
another EU member state, before storage imported into free circulation on behalf of the exporter.
Products will be sold and delivered through an Amazon website.
B2C: 4 - different business models;

11. First: art 70 UCC:
Transaction value (Last sale invoice)
1. The price actually paid or payable for the goods when sold for export to the customs territory of the Union.
If there is no transaction value, then use art 74-2 UCC:
Customs value based on:
2. The transaction value of identical goods
3. The transaction value of similar goods
4. The value based on the unit price
5. The computed value.
Art 74-3 UCC:
Where the customs value cannot be determined using art 70 UCC and art 74-2 UCC,
6. It shall be determined on the basis of data available in the customs territory of the Union, using reasonable means.
This method needs to be approved by the; National Valuation Team - Dutch Customs.
General rules to determine Customs value
The customs value is determined by following the rules from
top to bottom, the first one which is applicable must be used!

12. Customs value (art. 70 UCC):
The transaction value on the basis of the sale occurring immediately before the goods were brought into
the Customs territory.
1. Goods ordered on your website, labeled and shipped to the EU, directly followed by an import
declaration for free circulation on behalf of the consignee (private individual/customer)!
This business model must meet the following customs requirements;
 Your shipments must be a direct shipment to the EU.
 Your packages must be labeled to the end-consumer before entrance into the EU.
 There must be a legal relation between You and the buyer at the moment of import.
Sales value < € 22 -> VAT NO + DUTY NO
Sales value > € 22,- < € 150,- -> VAT YES + DUTY NO
Sales value > € 150,- -> VAT YES + DUTY YES
VENUE
B2C – Business to Consumer
This option allows you to
obtain an exemption from
VAT and import duties

13. Before the VENUE simplified declaration can be used, the requirements must be respected!
Please contact us to learn more about this topic and its requirements..
VENUE – simplified declaration E-Commerce
Advantages;
Unlimited amount of packages/sales orders in one VENUE declaration!
Fast! Your shipment will be cleared within 20 minutes and before arrival!
Pre-alert regarding selected packages for physical customs inspection before arrival!
Lower declaration costs!
Only for packages above € 22,- an additional (final) declaration must be issued.
Van der Helm-Hudig will be the first company in the Netherlands with the license to
use the VENUE declaration option!
We have developed our Venue software program in cooperation with customs.

14. The transaction value;
The sale occurring immediately before the goods were brought into the customs territory.
When the goods are sold for export to the customs territory of the Union not before they were brought into that
customs territory but while in temporary storage or while placed under a special procedure other than internal
transit, end-use or outward processing, the transaction value will be determined on the basis of that sale.
VAT + DUTY are applicable
2. Goods transported to the EU without selling.
Stored in a bonded warehouse and during the storage ordered on the website, labeled,
imported into free circulation of the EU and delivered to the consignee.
B2C – Sold after storing at a bonded warehouse

15. Customs Value:
Option 1)
The import document can be issued with a temporarily value, the final customs value will be
determined based on the sales of your products (within 90 days).
We will have to issue an additional (final) clearance to determine the Customs Value.
VAT + DUTY are applicable
3. Goods transported not labeled to EU without selling, stored in a free warehouse
and before storage imported into free circulation on behalf of the Exporter.
E.D.C - Stock transfer to an EU Distribution Centre
Option 2)
Customs Value determined based on the purchase invoice from exporter to importer to be shipped to the EU.
Only if this is the “last sale invoice directly before entering the (EU) customs territory”.
VAT + DUTY are applicable

16. Customs Value (Art 74-3 UCC):
Exporter provides an invoice ‘for customs purposes only’ to consignee ‘an Amazon Warehouse’.
Value based on the invoiced sales price to the end-consumers.
Request for this method must be send to and approved by :
The National Valuation Team Dutch Customs before we are able to use this method.
VAT + DUTY are applicable
Customs Value based on sale to Amazon – > sales value must comply to the sales price as invoiced
to the EU-consumers. This method must be approved by the Dutch ‘Unit Value Team Customs’.
4. Goods transported (not labeled) to EU without selling, with the intention to store in an Amazon warehouse, before
storage imported into free circulation on behalf of the consignee. Sales will take place via the Amazon website.
FBA shipments – Fulfilment By Amazon
Please ask us to learn what we need from You in order to meet the customs requirements.

17. These are just a few possible solutions/options.
We understand that there is no business like your business!
Give us your business model and we will provide the best tailor made logistic solution !
Content Rights;
Although this presentation is composed with the utmost care, no rights can be derived from the accuracy or completeness of the given information.
Van der Helm-Hudig accepts no responsibility for the information provided on these pages. Van der Helm-Hudig accepts no liability for any damage that occurs when options have been used without prior verification.
Therefore, any desired option must be checked by the appropriate authority before use.
e-commerce@helmhudig.nl
e.jansen@helmhudig.nl
www.helmhudig.com
Service is our Destination !

18. THANK YOU!
1st ANNUAL
CONFERENCE
HYATT REGENCY MIAMI