Abstract
Positioned at the nexus of import/export flows, customs authorities represent a significant node in a firm's global supply chain network. In light of the traditional need for physical inspection of goods by customs authorities, the significance of this node is often viewed in terms of its potential disruption to the network flow. Customs reforms that aim to facilitate the international flow of goods (trade facilitation) are thus easily regarded as measures to reduce the supply chain inefficiencies of these disruptions. The readiness with which the resulting improvements can be envisioned and have been cited contrasts sharply with the limited research into the corresponding potential challenges involved in global logistics management. This paper's primary purpose is to deduce the nature of these challenges, not only for practice in the area of global logistics, but also for research in that area, an area in which the significance of customs authorities has received little treatment. Systematic qualitative analyses of existing and proposed reforms based on the trade facilitation philosophy provide the bases for the deductions.
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