In the Precision Software News Round-Up: 1 June 2018, the US imposes tariffs on allies, Deutsche Post DHL becomes an electric vehicle supplier, DPD launches a paperless parcel sending app, and Australians will not be able to buy from international Amazon stores from next month.

Global Trade

US Imposes Tariffs on EU, Canada and Mexico

This Thursday, the US government announced that for reasons of national security it would impose tariffs on the European Union, Canada and Mexico. All three will be subject to 25 percent tariffs on steel and 10 percent on aluminum. The move is likely to prompt retaliation, although the EU, Canada and Mexico are some of the US’s closest allies. German Chancellor Angela Merkel described the tariffs “illegal.” Justin Trudeau, Prime Minister of Canada rejected the idea that Canada could be a threat to US national security. Mexico responded with a list of potential tariffs on a number of US goods, including steel, pork, apples, cranberries and cheeses. For more information, please see The New York Times and Supply Chain Dive.

Parcel Deliveries and Carriers

Deutsche Post DHL To Sell Electric Vehicles

Deutsche Post DHL is not only building its own electric vehicles, it will be supplying them as well. This week, Deutsche Post DHL announced that UK home delivery company Milk & More has placed an order to buy 200 electric Streetscooter vehicles. Milk & More makes more than 1.5 million deliveries each week. The Streetscooter is built with a modular battery system and can reach a range of 124 miles (200 km). For more, please click here.

DPD Launch Paperless “In-App” Parcel Service

This week, DPD launched an “in-app” parcel sending service. The app offers a paperless process and users do not need to print a label. The app finds the nearest DPD pick up point and generates a QR code. Once there, the user shows the QR code and drops off their parcel. The app also allows users to track their parcels until they have been delivered. You can read more about this on Post & Parcel.

Bpost Teams with DHL for Benelux E-Commerce Deliveries

Bpost, the Belgian postal operator announced this week that it was to partner with DHL to deliver online shopping parcels in the Benelux region. While conventional mail deliveries are in seemingly terminal decline, e-commerce deliveries offer significant growth for postal services. The partnership, which is not exclusive, will facilitate cross-border shopping — another area of growth. Belgian online shoppers frequently shop cross-border, particularly in the Netherlands and Germany. For the full article, please see Reuters.

Retail E-Commerce

US E-Commerce Grew 95% in 5 Years

Data released by the US Census Bureau shows the e-commerce retail sales grew by 95 percent from 2011 to 2016. In 2011, total e-commerce retail sales were $199,564,000,000. This grew to $389,111,000,000 by 2016 — the latest year for which figures are available. The Census Bureau has tracked online sales since 1998. In that year, e-commerce sales made up a tiny fraction of all retail sales — just 0.19 percent. For more information, please click here.

Amazon Will Not Make International Deliveries to Australia

Amazon announced this week that it will no longer ship goods to Australian customers from 1 July. This is the date Australia’s new GST rules come into effect. These target international retailers and apply a 10 percent sales tax on e-commerce purchases worth less than $1,000. Australians will still be able to shop on Amazon’s Australian store. This store opened in late 2017 and currently has less range than the US and other international Amazon stores. Amazon is not against the GST rule itself. However, the e-commerce giant argues that companies like Australia Post should collect the tax, not retailers. For more, please see The Guardian.

The Precision Report

Report and Infographic: Trade Compliance For Travel Companies

Planning on going to Russia for the 2018 World Cup? US sanctions against Russia have caused issues for travel companies and airlines. Why? Because trade compliance for travel companies is hugely complicated. Travel firms must comply with sanctions, travel bans and visa restrictions. In addition, under certain circumstances they may be subject to US law even if they are outside the United States. They must also must comply with national and international anti money laundering laws. Because of the global nature of travel companies, terrorists and criminals target them attempting to launder money and finance terror.  For a quick guide to trade compliance risks see our infographic. For a detailed report, please see Trade Compliance for Travel Companies: Areas Of Risk You Should Know.