A Consultative Report on Customs Procedures and International Trade

This report provides a consultative analysis of customs procedures and international trade, focusing on the challenges and opportunities for the Catdom customs department. It explores factors influencing customs processes, including the Revised Kyoto Convention and risk indicators. The report examines the importance of trade facilitation, the role of risk management, and the need for consultation and cooperation within the customs environment. It highlights modern methods for controlling and processing cargo, emphasizing the need to reduce red tape and streamline procedures. The report also considers the application of the Revised Kyoto Convention, risk management strategies, and the benefits of trade corridors, offering recommendations for improving efficiency and facilitating international trade. The report aims to provide the director of the customs department with modern methods of controlling and processing cargo at the country's border.

Running head CUSTOM AND EXCISE 1
Customs and Excise
Student’s name
Professor’s name
Institutional Affiliation
Date

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Table of contents
Table of contents.........................................................................................................................................2
Summary.....................................................................................................................................................3
Introduction and background..................................................................................................................3
The factors influencing the Customs procedures and processes.............................................................3
The Revised Kyoto Convention................................................................................................................6
Risk indicators..........................................................................................................................................7
The Consultation and co-operation.........................................................................................................8
The relevant issues raised by a practical cargo processing scenario........................................................8
Conclusion...............................................................................................................................................9
References.................................................................................................................................................10

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Summary
The CBP (Custom border Protection) has a philosophy of recognizing and regulating the
majority of commodities getting in and out of the country in the International trade. The
regulations overwhelm the examination of cargo compliance and assessing the management risks
associated with that particular cargo. As a consultant, I will be providing the Customs
department of Catdom with information that aims to increase its international trade, as we as
accomplishing the level of international trade facilitation. The Catdom custom department is
required to minimize the red tape relating to imports, transit cargo, and exports and also
streamline its procedures. Therefore, this consultative report will help the director of the customs
department in coming up with appropriate modern methods of controlling and processing the
cargo at the country’s border.
Introduction and background
The administration of the customs performs a wide range of crucial roles that enhance the
smooth flow of commodities and other services across international borders. Initially, traditions
played some linear functions which concentrated more on the critical activities of collecting
taxes and duties of the imports (Hanaoka & Regmi, 2011). For instance, in the United States, the
revenue used to be collected by the United States customs services, but today the revenue
collection is carried out by the CBP. Revenue was a significant source of income for the United
States at that particular time before the formation of the system of the federal income tax.
Consequently, the United States customs services were expanded to take the responsibility of the
safety, security, and legitimacy of imported commodities (Hausman, Lee & Subramanian, 2013).
However, this responsibility is handed over to the Bureau of Customs and Border Protection in
conjunction with the other agencies of the United States government. CBP enforces a wide range
of the international trade laws which overwhelm the collection of tariffs, protection of
intellectual property rights, and compliance with phytosanitary and sanitary standards (Hausman,
Lee & Subramanian, 2013).
The factors influencing the Customs procedures and processes
The Bureau of Customs and Border Protection has been allowed to facilitate the trade. This
function requires the Bureau of Customs and Border Protection to adopt specific procedures

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which would enable the imports getting into the country to efficiently clear the customs (Ibrahim
& Jaafar, 2015). Other countries are taking these procedures, which are as well advanced by both
the WTO (World Trade Organization) and WCO (World Customs Organization).
In small nations like Catdom, custom agencies are seen to conduct critical activities like
collecting taxes, although the increase in trade promotion is such countries. It's estimated that the
cost of all trade activities of Catdom is higher when compared to other countries (Cullinane &
Wilmsmeier, 2011). The damage arises from ineffective customs practices and inadequate
communication and transport infrastructures. For example, the country has one international
airport and seaport and shares a border with a landlocked country. Thus, exports from Bulldogia
are transported through road transport as well as goods exported or imported by that particular
nation.
In a growing world of international trade, where people and goods move across the border
frequently, there is a need for a higher speed for both the participants and the supply chain.
Therefore, the customs administrations of Catdom is required to protect the borders and enhance
legitimate. The Catdom government expects the customs department to reduce the amount of the
red tape linked to exports, imports, the transit of Cargo, and streamline all the procedures (Arvis
et al. 2016). The government is focused on how the Custom should establish modern and
innovative methods to control international cargo. The current ways of controlling international
shipment will employ the use of ready commercial information and decrease the necessity of
more data given by the transport, traders, and communication operators.
However, it's not easy for the Catdom custom administration in striking a balance in carrying out
the above roles. The difficulties arise when transformations in economic and political instances
call for custom administrations to provide immediate opportunities to either trade facilitation or
security of the imports (Darkow, Weidmann & Lorentz, 2015).
One of the contemporary methods which can be employed by the Catdom custom administration
is making use of the Custom reforms. The development of electronic digital commerce, JIT
(Just-In-Time) manufacturing expansion, and interconnection of the supply chains have pushed
the efforts of custom reforms. Currently, almost half of the commodities crossing the
international borders are the intermediate products which reflect the geographical fragmentation
within the production networks. The intermediate commodities contribute 50% in global value

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chains in the United States and also in other nations. Just-In-Time manufacturing means the
intermediate products must arrive within the global value chains within the allocated deadlines.
Secondly, businesses to consumers, business to companies and consumers to consumers have as
well boosted the effectiveness of clearance protocols in many custom administrations. According
to (Wang & Cheng, 2010) business-to- businesses e-commerce contributed about $ 15 trillion in
the United States in the year 2013. The same form of custom reform has enabled the U.S to
increase the number of packaging processes which rose by 48% in the year 2011 and 2014.
Secondly, developing the economic integration within the Catdom trough signing treaties.
Signing the deals will help in reducing the amount of red tape relating to exports, imports as well
as streamline the custom practices. The Catdom custom administration can sign free trade
agreements which can be used in the liberalizing access to the markets by the participating
nations through the removal of customs and market barriers. The Catdom customs administration
can develop a trade corridor to enhance its trade activities with the landlocked Bulldogia nation
and other neighboring coastal countries. Concerning WTO (World Trade Organization), there
were many free trade agreements which were made at the beginning of the year 2017. All the
signed contracts are aimed to harmonize the protocols and other regulations among the countries
sharing the borders. The development of the trade corridors aims at upgrading the systems of
transport infrastructures, although they are more effective when linked to the improvement of
customs administrations efficiency.
The next part Catdom custom administration needs to consider is lowering the cost of trade
significantly. There is a piece of clear evidence that reforming the customs is motivated by
reducing the cost of business. Some of these trade cost known as NTMs (Nontariff measures)
affect the trade are generally financial since they include payment. These contribute to time
delays and ultimately lowering the profitability of many corporates.
According to Urciuoli, Hintsa & Ahokas (2013) approximately, for a single nation, causing a
delay in delivering goods reduces the country's overall trade by one percent or could add 70Km
in transporting distance. Delaying susceptible commodities will cause more striking results
which a decrease in business for the landlocked countries. Only the well-developed countries can
trade since they have the capability of absorbing the cost time delays. For other small nations and
landlocked countries like Bulldogia, are discouraged from taking part in cross-border trade.

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Thus, the Catdom custom administration should reconfigure its supply chain to lessen the
amount within the business. This can be achieved with an understanding of trade is key to any
economic development, and the developed countries like the USA have been able to accomplish
this. The developed countries have collaborated in eliminating the inefficient custom processes
and procedures that act as barriers to international traders.
The Revised Kyoto Convention
The Kyoto Convention was formed in the year 1974 to harmonize the custom procedures under
the WCO (World Customs Organization). It was then revised in the year 1999 to accommodate
the transformations in the speed of advanced technologies and commerce (Yasui, 2010). The
principles stated in the convention offer a roadmap for the efforts of the customs reform for the
signatory nations. One of the fundamental principles outlined in the Kyoto Convention is to
facilitate the simplification, harmonization, and standardization of the customs procedures. These
principles have been met by, for instance, the publication of custom regulation and rules online,
streamlining the paperwork within the custom administrations and use of online platforms in
clearance and filling customs documents. Secondly adopting the appropriate tools for risks
management during customs inspections that are from low-risk cargo and to high risks shipment
in the cross-border trade (Kassee, 2014).
The U.S.A government has registered the trusted international traders under the C-TPAT (CBP'S
customs-Trade Partnership Against Terrorism) to promote the sharing of responsibility to
manage the high-risk cargo. Revised Kyoto Convention provides well-designed ways of
facilitating international trade which has seen a reduction of NTMs that cause delays at the
checkpoints at the borders. For a country like Catdom, such benefits contribute in reducing data
requirements within their Customs administration, increase the speed of clearance period and
provide a more predictable moment of releasing commodities (Wolffgang & Dallimore, 2012).
Enrolling to revised Kyoto convention is crucial for the Catdom nation in signaling to their
international trade partners that they intend to adhere to international customs rules and
regulations. The enrolling will cause an increase in custom revenues, imports, high GDP, lowers
trade cost, and attract more foreign investors.
Most of the African countries are landlocked; hence, goods have to go through several custom
processes in every country's checkpoint. Thus, making their trading cost to be extremely higher

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when compared to the countries bordering the coast. To reduce these customs lengthy procedure
and processes, the African governments have started establishing a single stop border to enhance
proper cargo transit between the coastal and landlocked nations. The "Oilkanse border post"
located between Burkina Faso and Togo is designed in a manner that can process the
commodities that pass through the port of Lome in Togo to the neighboring countries like Niger
and Mali (Morini, 2015). That means the Catdom customs administration can streamline its
processes to raise its efficiency and expedite the flow of commodities in Bulldogia.
Risk indicators
Taking care of risks is common since the customs administration has an instinct in reducing the
possible risks and make use of the employees in their daily working procedures. The risks
management issues faced by the customs administrations means no sense in applying fixed
human and technological capital in performing its reviews and inspections of imports. The key
this is that the customs service providers can use physical procedures like their own experiences
that some imports can present some higher risks than others. This can be achieved by performing
extensive inspections on small percentages of imported goods.
Therefore, it's not essential for the customs administration of Catdom to think that all imports are
deficient, and the outcome is decreased in revenues. Many customs have expected the importers
to comply with laws that govern imports. The customs require the importers also not to present
any risk that justifies any allocation of the resources. The idea of meeting with law help in
analyzing the possible risks to determine its merits and demerits. Hence, Catdom customs should
focus more on risk management. The management can be enhanced through modern
technologies and enforcing the new eras of world trade.
The Catdom customs department can increase resources in some of its operations than others.
These activities could be the inspection of cargo at the port or reviewing the supportive
document later. The findings of the law compliance will then be recorded and analyzed in the
risk management procedures. This procedure will segregate the fundamental violations and focus
on human resources to handle the most severe issues. The Catdom custom administration can as
well eliminate its oversight of the companies complying with the law and put more attention on
no-compliant institutions.

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The Consultation and co-operation
The Catdom custom will require an integrated technique that will constitute the efficiency and
efforts of more government agencies together with the individuals and private sectors. The LPIs
(Logistics performance indicators) of the world banks suggests that Custom administrations are
responsible for about one-third of the delays of imported goods on the borders. Besides, the other
government agencies should as well be blamed for the difficulties experienced by the imports
and importers at the checkpoints. This delay is due to a monopoly by the customs service givers,
excessive monitoring, and the inefficiency of customs protocols (Yang, 2011). For instance,
complexities are a fundamental phenomenon in the case of ASEAN (Association of Southeast
Asian Nations). In the process of valuation, customs typically presume under-invoice and other
time increasing the values quoted by the importers.
The Catdom custom department should, therefore, consider setting various mechanisms in
consulting with other stakeholders like exporters, importers, business chambers, custom brokers,
and carriers concerning custom reforms. This kind of communication between the trading
stakeholders and customs will provide cooperation, trust, as well as increasing the compliance.
This form of managing compliance has been adopted in the customs department of Bangladesh
through its consultative is within a limited scale.
Thirdly, the Catdom custom department should automate its systems. The automation can be
enhanced by the introduction of software and modern technologies within the custom
administration stations. Providing the handling apparatus and automating all the activities will
help significantly in managing the compliance. The government of Bangladesh has already
automated the Chittagong port through computerization of their trade activities. This allows the
importers to provide their declaration documents before the cargo arrives at their ports. Hence,
ensuring the accurate reports and also facilitating the clearance of the shipment and assessing the
risks associated with Cargo (Tuncel & Alpan, 2010).
The relevant issues raised by a practical cargo processing scenario
The report has found that other than customs, government agencies and other international trade
stakeholders need to take responsibilities for the delay of imports at the checkpoints
(SteadieSeifi, Dellaert, Nuijten, Woensel & Raoufi, 2014). To achieve this, the national
government of Catdom should take full management of borders as recolonized in the RKC in

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facilitating international trade. This calls for the government of Catdom in establishing
cooperation between its agencies and customs, which is a form embraced by the world customs
organization safety frameworks.
Considering the fact that trade plays a crucial part in the world supply chain, insecurity can cause
both negative implications on the side of business and government. Hence cooperation with the
supplying agencies should be enhanced (Giannakis & Louis, 2016).
Conclusion
The Customs Border Protection has a philosophy in recognizing and regulating major
commodities getting into and out of the country's border in International marketing. The
recognition and regulations include the examination of cargo and assessing the management risks
associated with that particular cargo. The customs administration then performs a wide range of
crucial roles that enhance the smooth flow of commodities and other services across international
borders. In the past, customs administrations played some linear functions which concentrated
more on the critical activities of collecting taxes and duties of the imports. The Catdom
government should reform its customs department by introducing the Bureau of Customs and
Border Protection to facilitate the trade. This function requires the Bureau of Customs and
Border Protection to adopt specific procedures for the efficiency in clearing the imports getting
into the country.

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References
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Connecting to Compete 2016: Trade Logistics in the Global Economy--The Logistics
Performance Index and Its Indicators. World Bank.
Cullinane, K., & Wilmsmeier, G. (2011). The contribution of the dry port concept to the
extension of port life cycles. In Handbook of terminal planning (pp. 359-379). Springer,
New York, NY.
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providers' resources and capabilities to a new institutional environment. Journal of
Supply Chain Management, 51(1), 27-51.
Giannakis, M., & Louis, M. (2016). A multi-agent based system with big data processing for
enhanced supply chain agility. Journal of Enterprise Information Management, 29(5),
706-727.
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Hausman, W. H., Lee, H. L., & Subramanian, U. (2013). The impact of logistics performance on
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Hausman, W. H., Lee, H. L., & Subramanian, U. (2013). The impact of logistics performance on
trade. Production and Operations Management, 22(2), 236-252.
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SteadieSeifi, M., Dellaert, N. P., Nuijten, W., Van Woensel, T., & Raoufi, R. (2014). Multimodal
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