Customs Modernization Initiatives

A companion to the 'Customs Modernization Handbook', this book provides case studies on customs modernization initiatives in seven countries: Bolivia, Morocco, Mozambique, Peru, the Philippines, Turkey, and Uganda. The initiatives in each of these countries show similarities as well as differences in their approach and design. Some have relied on a model of independent revenue authorities (Uganda and Peru), others have called upon private sector service providers to initiate the modernization process (Mozambique), others have taken the drastic step of a complete overhaul of their customs staff (Bolivia and Mozambique), others introduced new information technology to streamline customs processes and to integrate other members of the trading community into an electronic network (Ghana), while still others have approached the modernization process as a pragmatic, well-focused, result-oriented process.

Trade integration contributes substantially to economic development and poverty alleviation. In recent years much progress was made to liberalize the trade regime, but customs procedures are often still complex, costly and non-transparent. This situation leads to misallocation of resources. 'Customs Modernization Handbook' provides an overview of the key elements of a successful customs modernization strategy and draws lessons from a number of successful customs reforms as well as from customs reform projects that have been undertaken by the World Bank. It describes a number of key import procedures, that have proved particularly troublesome for customs administrations and traders, and provides practical guidelines to enhance their efficiency. The Handbook also reviews the appropriate legal framework for customs operations as well as strategies to combat corruption.

Border clearance processes by customs and other agencies are among the most important and problematic links in the global supply chain. Delays and costs at the border undermine a country’s competitiveness, either by taxing imported inputs with deadweight inefficiencies or by adding costs and reducing the competitiveness of exports. This book provides a practical guide to assist policy makers, administrators, and border management professionals with information and advice on how to improve border management systems, procedures, and institutions.

This paper outlines reforms that have been achieved in the modernization of the customs administrations of francophone sub-Saharan (African) countries since the mid-1990s. It also highlights the remaining issues in this process. Progress has been made in the automation of operations and procedures, with constant and significant efforts to strengthen revenue collection and improve trade facilitation in a number of countries. However, the pace and scope of modernization remains insufficient, particularly in developing customs control and enforcement capacities, and enhancing operational resources and management. The findings suggest that the authorities’ strong commitment to reform, organizational and management changes, adequate technical assistance and project management, and effective implementation of modern customs standards, are critical to accelerate the modernization of customs in francophone sub-Saharan Africa.

Bachelor Thesis from the year 2012 in the subject Business economics - Trade and Distribution, grade: 1, National University of Science & Technology Zimbabwe (National University of Sciences and Techology), course: BACHELOR OF COMMERCE (HONOURS) DEGREE IN FISCAL STUDIES, language: English, abstract: The research was aimed to establish the impact of customs modernisation on trade facilitation initiatives implemented by ZIMRA and the relationship between modernisation of customs procedures and economic growth as well as the challenges being faced by the Customs Administration in its objective. The research seeks to answer the following questions: To what extent does the economic environment have any bearing on the modernisation procedures in Customs Administration? How relevant is the Customs legislation in support of modernisation of customs trade facilitation initiatives? Has ZIMRA achieve its intended goals towards embarking on modernizing its Customs operations? What is the impact on various stakeholders, for instance, importers, exporters and the Zimbabwean government? What are the benefits and costs of trade facilitation? What is the relationship between trade facilitation and economic development? The implementation of customs reforms is a topical issue in the customs modernisation field to the extent that the donor community has been funding the projects in many developing countries. However, the greatest challenge is on to the extent to which they affect trade facilitation initiatives. Modernisation of trade facilitation initiatives has been described as the key to sustainable economic development and thus a poverty reduction tool. Zimbabwe has not been seen to be much committed to trade facilitation, instead, it has been characterised by cumbersome and complicated trade procedures, which have worked against trade facilitation in most third world countries. Some of the modernisation initiatives proposed are not being fully utilised. Thus the researcher seeks to evaluate the consequences of those initiatives if implemented in the Customs Administration. Zimbabwe’s economy is backed up by trade with other countries and is also used as a transiting country which links trade between various other countries.

Anglophone African countries have been implementing reform and modernization initiatives in their Customs administrations. This paper outlines the progression of key reform and modernization initiatives in these countries since the early 1990s, and assesses the gap between these reforms and those of more modern Customs agencies. The review suggests that Customs administration reform and modernization initiatives in Anglophone African countries generally lag behind international good practice and it is necessary to speed up implementation if revenue, trade facilitation, and trade chain security objectives are to be achieved. The findings also have implications on the design of reform programs and focus of potential technical assistance for the outstanding reform agenda.

This paper, based on the considerable practical experience of the IMF’s Fiscal Affairs Department, sets out a successful strategy for modernizing customs administration. The essence is to establish transparent and simple rules and procedures, and to foster voluntary compliance by building a system of self-assessment supported by well-designed audit policies. Having set out this strategy--and its benefits--the paper discusses in depth what is required in terms of trade policy, valuation procedures, dealing with duty reliefs and exemptions, controlling transit movements, organizational reform, use of new technologies, private sector involvement, and designing incentive systems for an effective customs administration.

Explains process of importing goods into the U.S., including informed compliance, invoices, duty assessments, classification and value, marking requirements, etc.