The Multifaceted Role of Customs in Economy and Society by Alejandra Madrid Rojas

Economic Customs Contributions

alestylsmalik — 2024-03-03 21:34:41 UTC

Customs play a crucial role in regulating international trade. By controlling the movement of goods across borders, customs authorities ensure that taxes and tariffs are properly applied, which significantly contributes to a country's revenue.

1. Customs administration’s mission elements

alestylsmalik — 2024-03-03 21:34:41 UTC

The fiscal element: revenue collection, directly and in support of the tax administration
The economic element: implementation and oversight of certain government economic policies
The protection and security element: safeguard of citizens’ health and protection of society from transborder criminal activity

3. CUSTOMS DUTIES

alestylsmalik — 2024-03-03 21:34:42 UTC

In developing economies customs duties are an essential component of public revenues and finances.

4. AD VALOREM TERMS (VAT)

alestylsmalik — 2024-03-03 23:23:21 UTC

Verification of the value declared by traders is an essential task of customs administrations due to VAT is based on the value of the goods.

2. EXPORT

alestylsmalik — 2024-03-03 23:26:46 UTC

Goods declared for export actually leave the territory free of indirect taxation and are not returned to the domestic market.

5. TRADE POLICY

alestylsmalik — 2024-03-05 00:50:02 UTC

Regional Trade Agreements (RTAs) are reciprocal preferential trade agreements between two or more partners.

Customs must ensure that imported goods under the agreement comply with the rules of origin to protect revenue and prevent unfair competition.

6. COMPETITIVENESS

alestylsmalik — 2024-03-05 20:04:32 UTC

Customs must simplify formalities and ensure goods are not misused and are eventually re-exported or correctly declared if they remain in the country.

6.1 FREE ZONES

alestylsmalik — 2024-03-05 20:11:59 UTC

Should remain under customs control and should be well-delimited and physically protected. Also, goods' movement between them and the rest of the territory should be electronically managed and connected to customs systems.

7. TRADE FACILITATION

alestylsmalik — 2024-03-05 20:17:35 UTC

Through measures to simplify customs clearance and reduce its cost and time

WTO Trade Facilitation Agreement (TFA) clarifies all relevant measures in this area.

8. TRADE DEFENSIVE MEASURES

alestylsmalik — 2024-03-05 20:33:28 UTC

WTO agreements authorized:

Agreement on Safeguards
Agreement on Anti- Dumping Duties
Agreement on Subsidies and Countervailing Measures

9. FOREIGN TRADE STATISTICS

alestylsmalik — 2024-03-05 23:29:28 UTC

Customs' responsibility is to collect the duties, prevent and detect their possible circumvention, and make available trade data to the authorities that may be useful to initiate permitted actions under the agreements.

Statistical information, classification (WCO), valuation, and origin of goods

10. APPLICATION OF STANDARDS AND REGULATIONS ON IMPORTS AND EXPORTS

alestylsmalik — 2024-03-06 00:50:03 UTC

Customs are responsible for enforcing the law and ensuring the review process before releasing the goods through various technical quality standards inspections, and veterinary and plant health regulations.

10.1 ENVIRONMENTAL AND HEALTH PROTECTION

alestylsmalik — 2024-03-06 00:54:36 UTC

Relevant international conventions (BRS):

Basel Convention; hazardous wastes and their disposal
Rotterdam Convention; hazardous chemicals and pesticides in
international trade
Stockholm Convention; persistent organic pollutants

11. FIGHT AGAINST ILLEGAL TRAFFICKING

alestylsmalik — 2024-03-06 01:12:11 UTC

To combat drug trafficking effectively, many customs authorities do more than strengthen their traditional intelligence and control capabilities.

11.1 ILLEGAL TRADE FLOWS

alestylsmalik — 2024-03-06 01:18:39 UTC

Also includes endangered species, cultural heritage goods, precious minerals and gemstones, food products, and goods subject to high excise duties such as tobacco, alcohol, and fuels, among others.

- Customs contributes to National Security and Combatting Terrorism

- Fight against Cross- Border Crime and Intelligence Gathering

12. CUSTOMS PROCESSES

alestylsmalik — 2024-03-06 01:27:50 UTC

Customs administration processes are similar worldwide since they have the same objectives and types of expected results in all countries and by the existence of international conventions and standards (global harmonization of steps)

alestylsmalik — 2024-03-06 01:54:59 UTC

Customs control is often more present on the import side than on the export side, yet customs is equally in charge of export and import.

13. CUSTOMS MODERNIZATION

alestylsmalik — 2024-03-06 02:15:35 UTC

Customs are constantly evolving in favor of well-functioning & effective customs administration, moreover, various events like slowbalization (2008), COVID.19, and temporary blockage of the Suez Canal have forced companies to start reorienting their supply chains from just-in-time to just-in-case

14.

alestylsmalik — 2024-03-06 02:20:08 UTC

New technologies and the growth of electronic commerce

bring uncertainty to future trade modalities.

Geopolitical tensions, regional instability, state fragility, and criminal activities are still considerable problems

13.1 Fragile and Conflict- Affected States (FCS)

alestylsmalik — 2024-03-06 02:35:31 UTC

To enhance performance customs administrations will have to adapt to the global, regional, and national contexts.

Lack of state legitimacy, limited administrative capacity, chronic humanitarian crises, persistent social tensions, and either ongoing violence or a significant legacy from armed conflict and civil war.

15. INTERAGENCY EFFORT

alestylsmalik — 2024-03-06 03:06:25 UTC

There should be a persistent interagency effort that brings together the work of the WB, the International Trade Centre (ITC), UNCTAD, IMF, WTO, WCO, and the United Nations Development Programme (UNDP), with the support of bilateral donors, to increase the efficiency and effectiveness of capacity development in developing and least developed countries on trade related issues.