Applying RFID to reduce delay in import cargo customs clearance process

Abstract

The study explores the customs clearance process of import cargos in international air cargo terminals, and constructs a network to analyze cargo, information and human flows in the import cargo process. Then, the study formulates a mathematical model of the customs clearance process-delay, and analyzes delay propagation in subsequent cargos. Moreover, the network of the customs clearance process is reconstructed based on the application of Radio Frequency Identification (RFID). The performances of RFID are evaluated in terms of reductions in shippers’ inventory cost and operators’ labor cost. A numerical example of Taiwan Air Cargo Terminal (TACT) at the Chiang Kai-Shek (CKS) International Airport is used to illustrate the feasibility of the proposed model. The analysis of cargo processing at TACT shows that cargos arriving earlier at TACT take less waiting time and less clearance time than ones arriving later. RFID application can markedly improve the efficiency of cargo process, and can save the inventory cost and labor cost. A combined strategy that carries out a modified dispatching rule and RFID application at the same time brings the greatest benefit to TACT. The sensitivity analyses show that the total benefit of applying RFID increases as cargo delay cost, terminal handling capacity, and/or storage cost increase, indicating that RFID technology is appropriate for handling those cargos with high value of time.