eTrade is cross-border paperless trade. It is an overarching topic that covers the import-export cycle for goods and services between countries, addressing areas like:
- online buying or selling of goods or services from any part of the world;
- transferring goods or services across borders, including the exchange of paperless documents between businesses and government, and delivering these goods or services to the buyer.
The EU is a single market that allows the free exchange of goods, services and relevant information, supported by standardised technology and frameworks between its Member States. Among the Eastern partner countries, however, there is a lack of harmonisation in paperless trade procedures, both among the countries and with the EU. For example, electronic invoices and contracts are not equally recognised from one country to another. Through its EU4Digital Initiative, the European Union supports trade harmonisation between the EU and the Eastern partner countries. It also supports trade harmonisation among the Eastern partner countries themselves.
The EU4Digital eTrade thematic area supports the enablement of cross-border collaboration. The focus is to harmonise eTrade in areas of eCustoms, eLogistics, and eCommerce, channelled through the following activities:
- eCustoms pilot – systematic and automatic exchange of customs information through a secure channel, enabling the use of specialised software for faster border crossing and better risk management.
- Digital Transport Corridor (eFTI deployment) – creating an action plan for exchange of electronic freight transport information (eFTI) across physical transport corridors (road, rail, inland waterways), in line with EU standards that come into force in 2026 under eFTI Regulation.
- eCommerce accelerator –
- Track 1: eCommerce status re-evaluation – assessment of legislation, standards and overall eCommerce ecosystem changes in Eastern partner countries since 2020.
- Track 2: eCommerce pilot: national pavilion account – pilot to create government-owned ‘national pavilion accounts’ on major EU eCommerce marketplaces, and for sellers then to start selling locally made products on the selected marketplaces without further registration, documentation or other requirements from the marketplaces.
- Track 3 – eCommerce consultations centre: eCommerce training and individual consultation sessions for small-to-medium-sized enterprises (SMEs) to help them start selling on the selected marketplaces.
- Networking – involving stakeholders from Eastern partner countries in building connections and sharing information about trends, actions, and the state of play in eTrade with EU counterparts.
eCustoms refers to the automated exchange of customs information between different economic operators and customs authorities.
Delays in cross-border movement of goods and in customs interactions are often due to inadequate automation and communication and lead to delayed deliveries for end buyers. The EU4Digital eTrade thematic area’s eCustoms pilot addresses these issues by providing cooperation models, efficient information sharing and optimised interactions with customs offices, reducing trade costs and expediting deliveries.
The EU4Digital Facility selected the SEED (Systematic Exchange of Electronic Data) solution as the most suitable for the eCustoms pilot. SEED, financed by the EU and successfully implemented in the region, offers proven security, data standards, easy adaptation to national systems, and flexibility in functionality and data exchange requirements. It has effectively addressed problems such as undervaluation, fake confirmation of exits, irregularities in transport documents and customs offences. The eCustoms pilot aims to enable electronic customs data exchange between Eastern partner countries and EU member states. It started with limited functionalities and data sets. The successful implementation of an eCustoms pilot between Ukraine and Romania demonstrated improved customs data exchange processes, customs clearance, risk assessment and cross-border cooperation. Recommendations for full-scale solution implementation and replication across the region are to be prepared as a result of the pilot.
A digital transport corridor with the deployment of electronic freight transport information (eFTI) is the exchange of logistics data across physical cross-country transport corridors, including road, rail and inland waterways.
This is needed because logistics businesses that move goods and services across borders must interact with different logistics systems. Relying on paper documents in different Eastern partner countries and the EU creates barriers that hamper the instant exchange of logistics information between countries as well as between economic operators and authorities/administrators. In addition, the legal frameworks for the logistics processes and information systems being developed are not the same in all countries, making logistics processes even longer and more complicated. This translates into higher logistics costs and delays in the delivery of goods and services.
To standardise and simplify information exchange procedures in logistics, the EU is in the process of establishing a uniform legal framework for regulating electronic freight transport information exchange – the eFTI Regulation, which comes into force in 2026. The EU4Digital eTrade thematic area is developing an action plan to implement a similar set-up in Eastern Partner countries. For them, implementing an eFTI-like system will not only ensure secure, transparent and efficient logistics information exchange between authorities and businesses, but also strengthen trade relations with EU countries thanks to the seamless cross-border exchange of goods.
The EU4Digital eTrade thematic area’s eCommerce accelerator provides updated Eastern partner country-specific recommendations and action plans for eCommerce harmonisation in the priority areas with the EU. It also pilots solutions that could increase cross-border eCommerce flows with the EU, providing Eastern partner countries with individual recommendations, training and consultation sessions on national and company level.
This activity includes a pilot ‘national pavilion account’ to facilitate cross-border eCommerce for small-to-medium-sized enterprises (SMEs). Through the creation of government-owned national accounts on selected EU eCommerce marketplaces, SMEs from Armenia and Ukraine can use those accounts without further registration, documentation or other requirements from the marketplaces. This will allow them to showcase and sell their products in the EU, allowing them to tap into a global customer base and expand their business beyond national borders. This initiative provides SMEs from participating countries with an opportunity to test their products in the EU market, increase cross-border sales, and potentially create a base for further project development in their respective countries.
Moreover, the eCommerce accelerator’s consultation centre group trainings and individual consultation sessions are given by a team of experts to selected SMEs from Eastern partner countries. This enables them to start selling on selected European marketplaces on their own, without the need for the pavilion account. To increase the reach of SMEs that engage in eCommerce, EU4Digital is also exploring ways to deliver upskilling on major EU marketplaces though eLearning. The ultimate goal is long-term impact on the development of the eCommerce ecosystem in the Eastern Partnership region.
While the EU is a single market that allows the free exchange of goods and services between Member States, goods and services cannot easily be exchanged between the EU and Eastern partner countries, due to differences in eCommerce legislation, standards and the ecosystem.
The goal of the EU4Digital eTrade thematic area’s eCommerce report is to:
- eliminate the barriers for cross-border eCommerce;
- boost cross-border eCommerce volume;
- facilitate SMEs to comply with the EU VAT eCommerce package and Import Control System 2.
Through the eCommerce consultations centre, which is part of the eCommerce accelerator, EU4Digital is enabling small-to-medium-sized enterprises (SMEs) to overcome obstacles in starting to sell on EU marketplaces. The centre provides practical advice from a team of experts, who help SMEs select the most appropriate marketplace to start selling on, guide them through account creation and listing products, answer legal and tax-related questions, and help develop their digital marketing strategy. The national pavilion account pilot complements this expert team’s offer by creating government-owned accounts (in Armenia and Ukraine), through which local SMEs can begin to sell their products in Europe, while learning eCommerce best practices for themselves through practical experience.
The EU4Digital eTrade thematic area’s networking activities are about building connections and sharing information about trends and actions. EU4Digital has many eTrade activities and pilot projects that require cross-country collaboration. The sharing of information is therefore vital to raise awareness of eTrade issues, stimulate the implementation of reforms, and align activities among international stakeholders.
International networking activities include online events such as awareness building sessions, workshops and consultations. There are also study visits – to observe, examine and discuss piloted solutions, or to examine existing solutions and best practices outside Eastern partner countries. And there are events to exchange contacts and share information about trends in eTrade. These activities may target policy makers, investors, digital vendors, service providers, R&D centres, academia, public administration, agencies and other eTrade stakeholders. Examples of EU4Digital eTrade networking events include: an awareness-raising session about eFTI Regulation updates and EU Member State preparations; an eCommerce accelerator awareness-raising session including EU eCommerce updates and cooperation opportunities with Ecommerce Europe; and a site visit to the Ukraine-Romania border in preparation for an eCustoms pilot.
We can envisage the following best-case (fictional) scenario as the result of EU4Digital activities affecting the future of eTrade in the Eastern Partnership region:
- Anna is a small ceramics producer in Odesa, Ukraine, who is growing her business. She has participated in EU4Digital eCommerce consultations for small-to-medium-sized enterprises (SMEs) and now is successfully selling her crafts on a major global online marketplace.
- Daniel is an Austrian boutique owner who discovered Anna’s work and wants to re-sell it in Innsbrück, Austria. Without any paper involved, contracts have been signed and invoices paid. It was fast and easy to manage these documents, as legislation and technical standards have been aligned.
- When loading the goods in Ukraine, Anna submits the shipment customs data electronically before the goods reached the border. This allows the customs authority in Ukraine to review the documents and conduct a risk assessment in advance.
- The aligned processes and communication systems make it easy for customs authorities in Ukraine and other transit and destination countries to cooperate smoothly.
- Even though the shipment is carried via several transport modes (e.g. rail and road), the logistics carrier faces no delays or disruptions as all the freight documentation is seamlessly filled and exchanged though certified eFTI (electronic freight transport information) platforms.
A new strong business partnership has developed between Ukraine and Austrian SMEs.