ABSTRACT
Customs authorities worldwide have, in recent years, implemented modernization programs that are fundamentally changing the relationship with the trade community. Perhaps the most powerful aspect of this change is the shift of responsibilities from Customs to traders. In the past, having goods cleared Customs signalled the end of the import or export process. Customs compliance was checked by Customs authorities at the border. Should there be any discrepancy in the documentation, the shipment would stay ‘stuck in Customs’ for as long as it takes to resolve the discrepancy. But in a world of global supply chains and lean inventories, having goods ‘stuck in Customs’ for a simple query became unacceptable to the trade community. Customs have been under intense pressure to facilitate and accelerate the clearance of the goods. The trade demanded a separation between the clearance and the release of the goods. Traders argued that goods could be released on arrival while compliance matters could be resolved later. Customs, in many countries, have responded with risk management practices introducing fast and simple clearance at the frontier supported by audit-based controls at the trader’s premises. This gives the trade initially a quick release of the goods and subsequently the responsibility to ensure that all compliance requirements are met. Traders must therefore integrate Customs management in their business processes. By moving compliance checks away from the physical border to the company’s office, Customs have gained a clear visibility of
the physical, documentary and financial supply chain. Global traders have exchanged fast Customs clearance against higher compliance responsibilities.
