Due to the limitation of data, as e-commerce has been growing robustly only during these ten years, to make the sample size big enough, this study will use the panel data technique to see the effect of internet usage on smuggling. Panel data estimation also generates more efficient and more powerful test statistics. Our study uses the annual data of countries in the EU between 1996 and 2005. The number of countries and the period of time that we focus on are different in the estimation of each commodity, because of the availability of the data. Our study uses the method of fixed effects (fe) and random effects (re) estimation, which are used widely in most empirical works.