السياسات الجمركية والكفاءة التجارية / Customs Policies and Trade Efficiency

Abstract
Acknowledging the importance of performance measurement in the Customs context, the World Customs Organization (WCO) developed Customs policy indicators; Achieving Excellence in Customs (AEC). Utilizing Customs policy indicators from the WCO AEC survey (2016) and data from other international organizations, this paper estimated the correlation of Customs policies with trade efficiency (time & cost).
Customs modernization policies presented a statistically significant correlation with trade efficiency.
The ratification of the Revised Kyoto Convention (RKC), a blueprint for modern and efficient Customs procedures, was associated with less import time on average by 62~64%, lower import cost by 63~64% and less export time by 63~69%. Among countries that ratified the RKC, an additional 1 year since the RKC ratification (1 more year of implementation of RKC provisions) was associated with
less import time by 6~7% and lower import cost by 9%. The implementation of SAFE Framework of Standards (SAFE), balancing trade facilitation and security through Customs-business partnership,
was significantly correlated with less import time by 65~71%, lower import cost by 68%, less export time by 70~78%, and lower export cost by 71%. This result deserves high attention as it evidences that Customs policies for facilitating trade and securing trade safety are not incompatible.
In other words, trade could be more facilitated even when trade security is properly guaranteed.

Keywords
Customs policy indicator, Revised Kyoto Convention (RKC), SAFE Framework of Standards (SAFE), Trade time, Trade cost

Acknowledgments
This paper was written by Yeon Soo CHOI of the WCO’s Research Unit. The author is very grateful to Cyril Chalendard, Thomas Canteens, Hyoung Jeong, Luc De Blieck, and Armen Manukyan for their suggestions.

Disclaimer
The WCO Research Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about Customs issues. The views and opinions presented in this paper are those of the authors and do not necessarily reflect the views or policies of the WCO or WCO Members