CUS103 Regulatory Compliance Management Assignment

Added on - 31 Oct 2019

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Running head: CUSTOMS - REGULATORY COMPLIANCE MANAGEMENT1Customs - Regulatory Compliance ManagementStudent NameInstitution
CUSTOMS - REGULATORY COMPLIANCE MANAGEMENT2Part 1: IntroductionWCO Times Release Studies (TRS) has provided various guidelines andrecommendations on the operations customs departments. There are TRS guidelines that havebeen conducted will the aim of ensuring customs regulation and management. One suchguideline is called TRS on Efficiency of Customs Clearance Process (WCO TRS, 2011). Thesecan also be compared to United states for instance, release studies on the customs regulationciting various items that can be carried into the country and the regulation compliance required(www.travel.state.gov). One of the methodology used to access the compliance include the timesit take for the goods to be inspect, pay the duty and cleared are important part of the operationand compliance management system. The result was the adoption of good technologicalpractices couple with proper legislations guiding customs compliance. These TRS regulationscan also be compared to New Zealand for instance publishes the entire regulatory requirementfor customs operation (www.legislation.govt.nz, 2017). The TRS also provides the structuralstandards that can give the overview of structure that need to be in place. The coordinationbetween various players as part of custom system for instance between custom, agriculture andtreasury play an important role in regulatory compliance management system since it eliminateany unnecessary delays in clearance. World customs organization on moreover, has releaserecommendations for the customs regulations and activities guidelines for member’s states. Forinstance, the TRS recommendations on modern technologies that can be applied in customsoperations (World Customs Organization, 2017). Therefore, adoption of modern technologies ininspection, monitoring and documentation of cargo or containers has potential to improveefficiencies. Structural development, resource allocation and improve human resource is another
CUSTOMS - REGULATORY COMPLIANCE MANAGEMENT3important aspect of custom department improvement strategy (Bonazzi, Hussami & Pigneur,2009).Part 2: ProblemsThe current Catdom Custom Department has much inefficiency and ineffective thatjeopardizes the operation of the department leading to uncompetitive clearance. Some of theproblems that can be identified are inefficiency caused by lack of straddle carriers therebycausing delays, the inexperience of staffs at the airport, ineffective payment system.Firstly, there is minimal coordination between the agricultural department and customreducing the physical inspection of imports and exports. The improper coordination between thetwo departments operating at the same point though with different office location is the mainsource of delay in clearing goods. The regulatory requirement from the TRS for products toundergo strict screening and in order to do thorough screening the coordination of agriculturaldepartment and customs department has been low leading to delay clearance (World CustomsOrganization, 2011).Secondly, lack of straddle carrier is another problem that causes much delay in theclearance of goods at the seaport. The country has been reluctant to invest in new modernstraddle carriers that ease loading and offloading of containers at the seaport to reduce thedetrimental delay in the department. The straddle carriers are part of the modern operatingsystem that smoothens operation at the clearance department that is not the case of CCD. Thecustoms department is therefore considered weaker as per the international standards thatcurrently set in the WCO TRS. The weakness of the Catdom Customs system is visible on itsinability to load and offload goods at the point of entry into the country and this is detrimental to
CUSTOMS - REGULATORY COMPLIANCE MANAGEMENT4the department and the government as it reduces global competitiveness or international trade(World Customs Organisation, 2012).Thirdly, lack of enough and qualify staffs at the clearance point is another problem that iscausing delay and inefficiencies at the CCD. The problem revealed by current systems showsthat only two experienced staff are serving the airport custom as more the staffs are transferred toSeaport to assist few staffs at the seaport. The overall result is the few inexperienced staffs at theairport are left to handle cargo in the direction of two experienced staffs. This implies that theoperation is ineffective as this staff deficit results in delay and low-quality service. The humanresource is not properly constituted leading to imbalance and employees deficit in the customsdepartment. The poor remuneration system that only concentrates on awarding seniormanagement leaving out junior staffs is also part of staffs challenge or problem that isexperienced in the country particularly in the Customs Department (Burns, 2014).Fourthly, the department is using old procedures and payment method within thedepartment. The old procedures that were developed long time ago do not correspond to thenumber of customers and amount of service that need to be performed at the same time(Chowdhury, 2006). In addition, lack of modernization of the procedures followed in clearingwhen compared with those set by WCO TRS reported by World Bank (World Bank, 2011).Moreover, the current payment method that uses cheque has proved ineffective or inefficientsince it leads to delay or failure to comply with payment regulations. Cheque payment delayrelease of good in custody leading to overall delay and this exposes the failure of changingpayment method. Furthermore, another method of payment is cash method which may becompromised and reduce accountability as it may support corruption and fraud (AustralianProductivity Commission, 2011).
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