One in three Internet shoppers order merchandise from abroad

Customs does not keep records on foreign purchases

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By Pekka Pekkala
     
      Increasing numbers of Finns have bought goods or services directly from a foreign Internet retailer.
      According to figures by Statistics Finland from last spring, about 790,000 Finns, or nearly one third of those in this country who have used the Internet have made purchases on line. Of them one third, or more than a quarter of a million, have bought something from a foreign web-based retailer.
     
Neither Statistics Finland nor Finnish Customs keep any records of the amount, nature, or value of goods ordered from abroad.
      The lack of records is surprising, because the amount of money spent on all Internet purchases doubled in the period between the autumn of 2003 and the spring of 2004. It is estimated that EUR 2.1 billion will have been spent on on-line purchases.
      It is not clear how much of this sum flows out of the country. When one out of every three say that they have done business with a foreign Internet retailer, the amount is likely to be in the hundreds of millions of euros.
     
The Internet also serves as an advertising medium of foreign web-based retailers. Consumers advise each other in making purchases and exchange price information on the net.
      By putting the Finnish words "ulkomailta tilaaminen" ("ordering from abroad") into the google.fi search engine, one gains access to any number of guides, as well as advice posted by other users.
      The list mostly contains instructions on buying household electronics, such as digital cameras, GPS equipment, or video projectors. In addition, message board users often exchange information on where to find good deals on DVDs.
      Other hobbyists have also discovered the delights of buying on the Internet. Instructions can be found for the purchase of goods ranging from equestrian equipment, to fly-fishing tackle, to radio-controlled toys.
     
Ordering goods from abroad has become much easier thanks to the European Union. The common European currency has made it easier to compare prices, there are no customs duties within the EU, and VAT is paid to the country where the retailer is located.
      Some German retail web sites have pages in Finnish for the benefit of those who do not have a sufficient command of German or English.
     
Increased foreign trade by individual consumers is also reflected in the work of the European Consumer Centre in Helsinki, which last year received 122 complaints about foreign Internet retailers. In the first six months of this year it had received 88 complaints.
      Most of the complaints involved delayed delivery.
      According to the centre, digital cameras and entertainment electronics are the most popular items for Internet purchase. Complaints are rare for DVDs and sound recordings, although one in four on-line purchases involve them.
     
Helsingin Sanomat / First published in print 29.9.2004

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Links:
  European Consumer Centre - Helsinki

PEKKA PEKKALA / Helsingin Sanomat