2024: That was the year that was!

As we transition from 2024 into 2025, it is worth reflecting on the numerous developments that have significantly shaped international trade. These changes have not only increased operational challenges for businesses but have also underscored the growing importance of complete, accurate, and timely data to remain compliant in an increasingly complex global environment.

Rising geopolitical tensions, supply chain disruptions, evolving trade policies, and new tariffs have amplified the burden on businesses navigating cross-border trade. Regulatory authorities worldwide have heightened their scrutiny, with a clear trend toward more robust enforcement of trade compliance measures. This shift places greater pressure on organisations to ensure that their trade data—spanning classifications, valuation, origin reporting, and documentation—is precise and submitted in a timely manner.

Looking ahead, 2025 will undoubtedly bring additional regulatory demands, increased enforcement actions, and further digitalisation of trade processes. Companies must be proactive, strengthening their compliance frameworks, investing in data accuracy, and leveraging advanced technology to meet these challenges head-on. Failure to adapt will not only risk costly penalties but also hinder competitiveness in the evolving international trade landscape.

In 2024, several critical changes have reshaped international trade, particularly around de minimis thresholds, tariffs, security requirements, and the booming e-commerce sector. Understanding these shifts is essential for businesses to remain competitive, compliant, and agile in global supply chains.

?1. De Minimis Thresholds:

The de minimis threshold, which determines the value of imported goods exempt from duties and taxes, is facing increased scrutiny and reform across major trading nations.

- United States: The U.S. maintains one of the highest de minimis thresholds globally at $800, which has spurred e-commerce imports but raised concerns about unfair competition and revenue loss. In 2024, discussions around potentially lowering this threshold have intensified as lawmakers weigh domestic manufacturing interests against e-commerce growth.

- European Union: The EU previously abolished its €22 de minimis threshold, requiring VAT collection on all goods entering the bloc. However, new measures in 2024 emphasise stricter enforcement on descriptions and valuation plus an enhanced digital infrastructure for VAT compliance.

- Other Markets: Many countries are introducing lower thresholds and controls. Additional and tighter enforcement measures to protect domestic businesses and increase tariff revenue are being introduced.

Businesses should anticipate additional compliance costs.

Implications for Businesses:

Companies involved in cross-border e-commerce must closely monitor de minimis changes, as lower thresholds could increase costs and affect pricing strategies.

Implementing automated duty and tax solutions will be key to managing these adjustments efficiently.

?2. Tariffs and Trade Policy Shifts

Tariffs continue to be a pivotal tool for shaping trade relationships and protecting domestic industries. In 2024, geopolitical tensions and trade negotiations have influencing tariff structures globally.

- U.S.-China Trade Relations: The U.S.-China trade dispute remains ongoing, with existing tariffs on billions of dollars of goods. In 2025, businesses should anticipate potential adjustments to tariff rates or expansion of targeted product categories as negotiations evolve.

- President Elect Donald Trump, has already signalled his plans to introduce more trade tariffs during the early days of his presidency.

- EU Carbon Border Adjustment Mechanism (CBAM): The EU is implementing a phased rollout of its CBAM, which imposes carbon-related tariffs on imports of certain goods, including steel, cement, and aluminium. Full implementation will require businesses exporting to the EU to report emissions data and absorb additional costs.

- Other Regions: Countries such as India and Brazil are leveraging tariffs to support local industries, while Africa’s AfCFTA (African Continental Free Trade Area) is moving towards reducing intra-African tariffs to foster regional trade growth.

3. Security and Compliance in Trade

Global trade security remains a top priority as governments introduce measures to combat illicit trade, strengthen border controls, and improve supply chain transparency.

- Advanced Customs Data: Many countries, including the U.S., EU, and Australia, are mandating more comprehensive customs data submissions, such as HS codes, product descriptions, and importer/exporter information.

- C-TPAT and AEO Programs: Security programs such as the U.S.’s Customs-Trade Partnership Against Terrorism (C-TPAT) and the WCO’s Authorized Economic Operator (AEO) are being expanded to enhance supply chain integrity

- Sanctions and Export Controls: In response to geopolitical shifts, 2025 will see tighter enforcement of trade sanctions and export controls, particularly for technology, dual-use goods, and sensitive industries. Businesses trading with regions such as Russia, Iran, or China must ensure robust compliance mechanisms are in place.

Implications for Businesses:

Enhanced security requirements demand investment in technology solutions to streamline data management, automate customs declarations, and ensure compliance.

4. E-Commerce Growth and Regulation

E-commerce continues to dominate international trade, but with its rapid growth comes a tightening regulatory landscape to address tax evasion, counterfeit goods, and consumer protection.

- Digital Sales Tax and VAT: Governments are increasing oversight of e-commerce transactions. Countries and regions such as the EU, New Zealand, and Australia are requiring marketplaces to collect and remit VAT/GST on low-value imports, ensuring tax compliance at the point of sale.

- Counterfeit Goods Prevention: Regulators are pushing for greater accountability from e-commerce platforms to prevent counterfeit and unsafe products from reaching consumers. Businesses must improve product traceability and authentication to comply with evolving standards.

- Global E-Commerce Trade Agreements: Negotiations on new trade frameworks, such as the WTO’s Joint Statement Initiative on E-Commerce, aim to standardize cross-border digital trade rules, including data flows, electronic payments, and online consumer protections.

Implications for Businesses:

E-commerce businesses must prioritise compliance with VAT/digital tax requirements and invest in robust technology solutions to ensure timely and cost-effective deliveries. Improving transparency through technology and supply chain visibility will be crucial to maintaining regulatory compliance and customer trust.

Conclusion

The international trade landscape in 2024 has been defined by a wave of regulatory, policy, and technological shifts that continue to reshape global commerce. From evolving de minimis thresholds and fluctuating tariffs to enhanced security requirements and expanding e-commerce regulations, businesses have faced mounting pressure to adapt and remain agile in an increasingly complex environment.

As we look ahead to 2025, the introduction of even more stringent regulatory requirements will place a greater spotlight on the critical role of data within the supply chain. Simply put, nothing moves without DATA. Accurate, timely, and complete data will be the cornerstone of compliance, operational efficiency, and risk mitigation. Regulatory authorities are deploying advanced technologies to improve oversight, enforce compliance, and penalise non-conformance, further increasing the need for companies to prioritise robust data management practices.

However, these challenges also present significant opportunities for forward-thinking organisations. By embracing compliance technology businesses can enhance accuracy, improve transparency, and streamline trade operations. Diversifying supply chains to mitigate geopolitical and economic risks will be key to maintaining resilience, while staying ahead of emerging regulations will allow companies to anticipate changes and adapt proactively.

Ultimately, success in this dynamic global market will depend on a company’s ability to turn regulatory and technological challenges into opportunities for growth. Those who prioritise compliance, leverage innovation, and invest in supply chain agility will not only navigate the complexities of today’s trade environment but will also position themselves to thrive in the increasingly data-driven and competitive landscape of tomorrow.

Hurricane Modular Commerce Ltd Martyn Noble David Spottiswood Maureen Cori Emily Cori, LCB, CES Cindy Allen Frank Janssens #Data #Compliance #CrossBorder #InternationalTrade #eCommerce #DeMinimis #Safety #Security Gerry Power FCILT Barbara Soto Amy Lianbihe Zhu Andy Shiles √ Lalo Solorzano Angela Smith Aftab Haider Grace Thompson