Trade facilitation and customs valuation
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Executive summary
Trade facilitation is critical to reducing trade costs which remain high despite the steep decline in the cost of transportation improvements in information and communication technology and the reduction of trade barriers in many countries.
Foreword by the WTO Director-General
When WTO members concluded their negotiations on the Trade Facilitation Agreement (TFA) in Bali in December 2013 they created the first multilateral agreement since the WTO was founded nearly two decades earlier. It demonstrated how global rule-making was functioning effectively to address impediments to today’s global commerce. As much as efforts to further liberalize trade policies the streamlining speeding up and coordinating of trade processes are contributing to the expansion of world trade and helping developing and least-developed countries (LDCs) integrate into today’s global economy.
Foreword
This book on customs valuation is a welcome addition to the WTO Secretariat/Cambridge University Press’s Handbook series. The Customs Valuation Agreement is the common system for determining the value of imports for duty assessment purposes and is therefore important to the everyday work of importers customs officials and others involved in international trade. However because the Agreement is technical in nature and trade transactions can be complex guidance and explanation of the terms of the Agreement will be useful to support its proper implementation.
Big data, data analytics, artificial intelligence and machine learning
Around half of customs authorities use some combination of big data analytics AI and machine learning while the other half plans to do so in the future. The majority of respondents see clear benefits from the technology where risk management and profiling fraud detection and greater compliance are the most prevalent.
Conclusion
The survey shows a high level of interest and activity in the testing and implementation of the three areas of advanced technology in customs authorities worldwide. Over half of respondents report using IoT AI and machine learning while only Argentina and Uruguay are currently deploying blockchain.
Internet of things
Members are experimenting with the use of IoT to fully automate bordercrossings and customs procedures in national ports. Other projects have introduced centralized X-ray image analysis across multiple scanning stations and the use of radio frequency identification (RFID) antennas or e-seals to ensure traceability of goods and means of transport.
Blockchain and distributed ledger technology
Blockchain and DLT are still in an experimental phase for many customs authorities with around a third testing it through proofs of concept (PoCs) and pilot projects using mainly permissioned (i.e. private) blockchains. Only Argentina and Uruguay report full deployment of this technology.
Acknowledgements
This work was started under the direction of WTO Director-General Ngozi Okonjo-Iweala and was overseen by Deputy Director-General Anabel González and Yuvan Beejadhur Senior Adviser to the Director-General.