Customs Procedures Research Articles

Risk Analysis of Strategic Commodities in Customs Procedures in Relation to Global Security Threats

Risk Analysis of Strategic Commodities in Customs Procedures in Relation to Global Security Threats

Перспективы совершенствования таможенной процедуры переработки на таможенной территории для развития экспортного потенциала российской экономики

An important condition for developing the export potential of the Russian economy is the possibility of participation of domestic production enterprises in international value chains. In turn, efficient customs procedures are needed to create these conditions, of which the customs processing procedure on the customs territory is a significant part. The article considers the current status of the customs procedure, its problems and possible further improvement.

Качество таможенных услуг как показатель клиентоориентированности таможенной службы России

This article provides a comprehensive study of the quality of customs services as a key indicator of customer focus of the Russian customs service. The article examines the importance and significance of high quality services in ensuring effective interaction between customs authorities and participants in foreign economic activity, which helps to improve the business climate and increase the country’s competitiveness at the international level. The article analyzes the main indicators by which it is possible to assess the level of customer focus of the customs service, such as the speed and transparency of customs procedures, availability of information, and the professionalism of employees. Particular attention is paid to the best practices and methods used in world practice, which can be adapted and applied in the Russian customs service to improve its efficiency and customer satisfaction.

Analysis And Evaluation of The Budgetary Effectiveness of The Introduction of The Customs Procedure of The Customs Warehouse in The Implementation of Cross-Border Electronic Commerce

In the context of the modern approach to organized cross-border electronic commerce, it becomes obvious that a sufficient level of demand for goods supplied from foreign Internet sites and distributed for the purposes of personal consumption of citizens is being formed. However, at this stage of regulation of cross-border trade, the following tasks remain unresolved: assessment of the applied practice of cross-border electronic commerce using customs warehouses in foreign countries; assessment of export-import potential for conducting cross-border operations in the Russian Federation, implemented in conditions of cross-border electronic sales. It is also necessary to have a bond policy for storing, saving and declaring goods imported from international trading platforms in Russia. In connection with the above, the article presents some results of the analysis of foreign practice in the fi eld of foreign cross-border trade. Problems have been identifi ed in the organization of foreign trade between Russia and the countries of the Eurasian Economic Union. The intermediate facts of the customs experiment in the EAEU are outlined, including the need for duty-free storage of foreign goods placed under the customs warehouse procedure. A new system of indicators is needed to assess the budgetary and socio-economic eff ectiveness of measures for the functioning of customs warehouses. As a result of the research, the article proposes algorithms for calculating the budgetary efficiency of introducing the customs procedure of a customs warehouse within the framework of activities in the single economic space.

ОСОБЛИВОСТІ ІДЕНТИФІКАЦІЇ ТОВАРІВ ПРИ ЗДІЙСНЕННІ ЕКСПОРТНО-ІМПОРТНИХ ОПЕРАЦІЙ

In the course of export and import operations, the identification of goods plays an important role in ensuring the correct execution of customs declarations, compliance with customs regulations, and determining the rate of customs duties and other payments. Identification is a preliminary stage of the classification of goods and is important in shaping the flow of goods, accelerating customs procedures and improving their efficiency. It should be noted that a purely commodity-based approach to the classification of goods will be somewhat different from the customs approach, as the customs approach must adhere to the basic rules of interpretation of the explanations, exceptions and notes to sections and groups, terminology, and must take into account the properties, signs, indicators and methods of determination that are accepted as determinative and recommended when identifying classification groups. Despite the existence of many scientific works on the topic of this study, the essence of identification as a component of the process of export-import operations in Ukraine has not yet been clarified, aspects of the current state of functioning have not been identified, and ways of modernisation and means of identification of goods in export-import operations have not been proposed. The purpose of this study is to analyse the current state of affairs and to provide recommendations on how to create effective and reliable procedures for the identification of goods in order to improve export-import operations and ensure compliance with legislation and technical regulations. Thus, the identification of goods in the course of export-import operations is a set of actions of customs officials aimed at controlling the information on the customs value of goods transported across the customs border of Ukraine, with mandatory verification of accompanying documents for such goods and information on the counterparties to foreign economic transactions under which certain export-import operations were carried out.

Trade Facilitation: Do The Custom Administration Procedures Matter?

This paper seeks to address the effect of customs administration procedures on trade facilitation in Kenya. The study employs an explanatory research design and administered questionnaires as the data instrument to gather data from 200 customs officials in Keny a. The study findings indicated that declaration of goods, documentation and verification of goods had a positive and significant effect on trade facilitation. From the results, the study concluded that customs administration procedures ha ve a significant influence on trade facilitation in Kenya. This study was anchored on Resource Based View (RBV) Theory. This research study adds to the existing knowledge and improves understanding to the building of a solid framework. The ultimate objective of enhancing t rade facilitation is evaluated against significant custom procedures such as declaration of goods, documentation completeness and verification of goods. Kenya Revenue Authority should enhance declaration of goods by ensuring that declaration of goods follo ws the international standards; should ensure accurate completion of required export documentation, comply with import/export documentation requirements and produce documents such as invoice for the goods; and should ensure thorough inspection of the goods , conduct complete inventory inspection and application of scanners in verification of goods.

Економіко-правова сутність митної політики: макро- та мікро- аспект

In the context of martial law and the implementation of international customs law norms and procedures in the domestic economic space, the requirements for customs and business operations efficiency of foreign economic operators are becoming more stringent. The issues of the customs policy of an enterprise, as such, which ensures the systematization of organizational, economic and managerial processes and operations to ensure the effective implementation of foreign economic activity, are becoming increasingly important. Based on a study of scientific publications covering customs policy, the author proves that there is no systematic approach to its identification at the micro level, i.e., at the level of enterprises. The author emphasizes the need for clear regulation of foreign economic activity operations at enterprises. It is proved that the absence of a systematic approach to determining the customs policy of enterprises does not fully ensure the achievement of efficiency of foreign economic activity. The author proposes to consider the customs policy of an enterprise as a set of methodological approaches, standards and mechanisms that ensure effective management of business processes related to customs clearance of goods, compliance with customs legislation and optimization of customs payments. The economic and legal principles of interaction between customs policy at the macro and micro levels are revealed, where the State establishes general rules and regulations, and enterprises adapt their activities in accordance with these requirements. It is proposed to include economic (financial management, customs logistics, customs payments, organization of customs procedures) and legal (risk management, legal regulation, information and legal support, partnership with customs brokers, administration) parameters in the elements of the enterprise’s customs policy, each of which will affect the efficiency of foreign economic activity management. It is argued that the introduction of a comprehensive customs policy of an enterprise will help to increase its competitiveness in international markets and ensure the effective functioning of foreign economic activity. Prospects for further scientific research are determined in the plane of applied projection of the proposed provisions for the formation of customs policy to ensure the development of foreign economic activity of domestic enterprises. Keywords: customs policy, elements of customs policy, foreign economic activity, customs payments, financial management, administration, legal regulation.

The Level of Awareness and Acceptance of the Customs Modernization and Tariff Act of 2016 and its Implications to Bureau of Customs Officials, Licensed Customs Brokers, and Stakeholders

This study was done to analyze the implication of Republic Act 10863, otherwise known as the Customs Modernization and Tariff Act of 2016, and its impact on the Bureau of Customs. Specifically, it looked into the demographic profile of the customs officials in terms of age, gender, year of service in the Bureau of Customs, highest educational attainment, number of conferences and seminars attended for the last 3 years, and licensure examination passed. For licensed customs brokers, their age, gender, number of years in the profession/business, highest educational attainment, number of conferences and seminars attended for the last 3 years, and licensure examination passed were profiled while the age, gender, number of years in the company, highest educational attainment, number of conferences and seminars attended for the last 3 years, and licensure examination passed were profiled. It f focused on the extent of the level of awareness of the three groups of respondents (Bureau of Customs Officials, Licensed Customs Brokers, and Stakeholders) on the Customs Modernization and Tariff Act in terms of the declarant and its duties and responsibilities, international standards and practices, importation and exportation, the accuracy of database collection and consolidation, compliance to the Revised Kyoto Convention (Convention on the Simplification and Harmonization of customs procedure) and revenue-generating agency. It also determined the level of acceptance of the three (3) groups of respondents in terms of the declarant and its duties and responsibilities, international standards and practices, importation and exportation, the accuracy of database collection and consolidation, compliance to the Revised Kyoto Convention (Convention on the Simplification and Harmonization of customs procedure) and revenue-generating agency. Likewise, it looked into the significant difference among the level of awareness of the Bureau of Customs Officials, Licensed Customs Brokers, and Stakeholders (Importer, Exporter) as well as the significant difference among the levels of acceptance of the Bureau of Customs Officials, Licensed Customs Brokers and Stakeholders (Importer, Exporter) in terms of the declarant and its duties and responsibilities, international standards and practices, importation and exportation, the accuracy of database collection and consolidation, compliance to the Revised Kyoto Convention (Convention on the Simplification and Harmonization of customs procedure) and revenue-generating agency, Moreover, it determined the challenges encountered in the implementation of CMTA on declarant provisions, international standard and practices, importation and exportation and compliance to the Revised Kyoto Convention (Convention on the Simplification and Harmonization of Customs Procedure). Finally, found out how the Bureau of Customs Officials addresses the challenges encountered on declarant provisions, international standards and practices, importation and exportation, and compliance to the Revised Kyoto Convention (Convention on the Simplification and Harmonization of Customs Procedures). The researcher utilized the descriptive method of research, which was descriptive and comparative in approach. A total of 40 customs officials, licensed customs brokers, and 50 stakeholders were used as respondents of the study. Data for the research was gathered with the use of a research-made and validated survey questionnaire. Collected data however were subjected to statistical treatment with the application of the following descriptive and inferential statistical techniques; frequency, percentage, weighted mean, ANOVA, and t – Test. The study found that there is no significant difference between the extent of awareness and level of acceptance of the three groups of respondents on the Customs Modernization and Tariff Act in terms of the selected variables. Keywords: Customs Modernization and Tariff Act, Level of Awareness, Level of Acceptance, Customs Brokers

Digitalization of Customs Procedures: Current State and Prospects

Digitalization of Customs Procedures: Current State and Prospects

Algorithm for forming a set of indicators of international trade customs regulation effectiveness in the EAEU member states

The relevance of the study is due to the fact that international trade globalization and intensification increase competitiveness of not only domestic but also foreign producers, so the business sector expects to facilitate business conditions, simplify customs procedures, increase customs activities efficiency, and improve customs services provision. Goods transportation across the customs borders of countries around the world presents challenges in filling out documentation, transportation methods, information processing, and compliance with regulations that are not internationally harmonized. It leads to customs laws violations that must be detected during the customs control process. Consequently, customs regulation effectiveness will depend directly on the customs control results. The article presents a theoretical and methodological description of the procedure for assessing international trade customs regulation effectiveness in the EAEU member states, as well as a vector for developing a comprehensive set of performance indicators. The proposed assessment algorithm and the set of quantitative and qualitative indicators can be regarded as fundamental interrelated criteria that ensure improvement of efficiency of control over the customs authorities’ activities and corrective management decisions, if necessary. The application in customs practice of the proposed indicators for assessing international trade customs regulation effectiveness will contribute to customs policy effective implementation for the harmonious development of the EAEU member states’ economies, including Russia, in modern society and the basis of their sustainable political, economic and social development.

The Effectiveness of Enhanced Value Reference Information System (e-VRIS) as New Database for Value and Classification of Imported Goods

The Enhanced Value Reference Information System (e-VRIS) is a new database for value and classification of imported goods in order to address corruption done through undervaluation and misclassification. With this aim, and with its considerable period of use and implementation, it is now imperative to determine how effective is this new system in combatting these types of corruption. Thus, the objective of this study is to determine the effectiveness e-VRIS in terms of the following: 1) Risk Valuation; 2) Enhanced Declared Value; and, 3) Classification. Data from 40 Customs Examiners from the Manila International Container Port (MICP) were elicited using a self-made survey questionnaire. To analyze the data, weighted mean was used as statistical tool. Findings indicated overall agreement among the respondents regarding e-VRIS's effectiveness in identifying revenue and compliance risks, with positive feedback on its monitoring mechanism. Similarly, respondents generally acknowledged e-VRIS's contribution to accurate tariff classification, despite differing opinions on determining country of origin. In conclusion, e-VRIS demonstrated effectiveness as a modern customs administration tool, essential for trade facilitation and corruption prevention. Its alignment with international standards and consistent performance underscored its significance in promoting transparency and efficiency in customs procedures in the Philippine customs industry.

The Liberating Effects of Nigeria to African Continental Free Trade Area: Synoptic Perspectives

This article examines the African Continental Free Trade Area (AfCFTA), with special attention to its goals, background, challenges, and effects on Nigeria. Africa has abundant natural resources and a diverse range of cultures, but it also faces challenges like poor infrastructure and ineffective governments, which limit trade throughout the continent. Recall, AfCFTA was created in 2018 with the intention of creating a competitive single African market by eliminating tariffs and other barriers. The AfCFTA aims to eliminate tariffs, standardize customs procedures, resolve disputes amicably, and cooperate in addressing technical barriers. Hence, this study delved into the synoptic perspective of the liberating impacts of the African Continental Free Trade Area (AfCFTA) agreement., especially on Nigeria trade relations. The liberation needed cloches were: weak infrastructure development, slow trade facilitation, and under standardization. Hence, by economically engaging in AfCFTA, created pathway for access to more affordable goods. Although, unfulfilled trade obligations posed a cog on the implementation Wheel. However, liberation is set for infrastructure development, increased exports, better trade facilitation, and institutional development Keywords: Africa; Economic Liberation; Nigeria; Free trade

LEGAL ASPECTS OF IMPLEMENTING THE KYOTO CONVENTION IN UZBEKISTAN’S CUSTOMS ACTIVITY AND IMPLICATIONS FOR WTO ACCESSION

In this article, the legal significance of the revised Kyoto Convention in the modernization of the customs procedures of Uzbekistan was analyzed. The issues of compliance of customs procedures with Convention standards, trade facilitation, efficiency, preservation of freedom, and a positive solution to the WTO membership process were discussed. The current customs legislation framework of Uzbekistan was reviewed, the necessary directions for compliance were determined, and the impact of implementation and WTO membership was studied. In the process of analysis, legal texts, international agreements, and literature were relied upon.

“Director General Review” as a Viable Mechanism to Safeguard Malaysia’s Revenue Through Tax Justice

The Revised Kyoto Convention (RKC) serves as a guide for Customs procedures in the modern era, and Malaysia has signed on as a participating country. One crucial element of the RKC, outlined in Chapter 10 of the text of the convention, is the requirement for national legislation to include a right of appeal in Customs matters. Subsection 143(1) of the Customs Act 1967 empowers the Director General (DG) of Customs to review his own previous decisions, and the Royal Customs Malaysian Department (RMCD) has devised a systematic process referred to in this research as the "DG review." This provision was enacted to comply with the RKC's standards. Subsection 143(1) was amended in 2020 to allow aggrieved parties to submit their applications for “DG review” within 30 days from any DG decisions in the indirect taxes. Despite the amendment, no prior research has been conducted on its effectiveness. This study aims to evaluate the viability of the DG review mechanism in promoting fair and efficient tax implementation. The research employs both doctrinal legal analysis and qualitative methods to scrutinize the laws and regulations governing the right of appeal for indirect tax in Malaysia, as well as the fairness of the DG review process for taxpayers. The outcome of this study is pivotal in proposing legal solutions and validating the amended mechanism outlined in subsection 143(1) of the Customs Act 1967.

Prevention of corruption risks during customs procedures: typology and signs

The article examines the theoretical and practical problems of determining the essence of corruption risks in the implementation of customs procedures, its signs within the limits of its customs and legal support. The definition of “administrative and legal provision of customs affairs” is given. The essence of the category “corruption risk in the sphere of implementation of customs procedures” has been determined. It has been found that corruption-inducing factors in the activities of officials of customs bodies are formed both in the sphere of organization and management of state customs affairs, and arise from the abuse of power and official position by officials of customs bodies and violations of the established procedure for carrying out customs procedures. The scientific approach is supported, that it is advisable to divide the factors of corruption risks in the implementation of customs procedures into external and internal. It was established that the customs procedure is a law-enforcement activity of customs authorities and their officials, aimed at the implementation of their powers regarding the organization of the movement of goods and vehicles across the customs border of Ukraine, ensuring compliance with customs rules. It was determined that the customs procedure is aimed at maintaining the regime of legality in matters of organizing the movement of goods and vehicles across the customs border of Ukraine. It has been proven that the elements of the structure of the implementation of customs procedures should include: customs control procedures; customs clearance procedures; tax and customs payment procedures. It has been established that customs control and customs clearance are the main areas of activity of customs authorities, which are carried out by performing customs formalities, which are components of customs procedures. An understanding of the legal nature of customs procedures as a legal regime operating at the facilities and in the places where they are carried out has been established. The content and criteria for the distribution of customs regimes in the context of customs regime rules are determined. Signs of corruption risks during customs procedures have been identified.

Accounting of foreign economic activities: impact on current aspects of currency operations supervision and financial monitoring during the period of martial state in Ukraine

Introduction. Accounting for foreign economic activity was and remains a relevant area of accounting support for business entities, which is associated with an increased risk of errors in connection with changes in regulatory documents on such activities, different conditions for carrying out activities due to the variability of the terms of foreign economic contracts, the need to take into account different exchange rates and the correct submission and presentation of information in financial statements. It is important for business entities to comply with the requirements of legislation, to organize proper internal control/internal audit to prevent errors in reflected transactions in the conditions of foreign economic activity. The purpose of the paper is to highlight the features of accounting for foreign economic activity, taking into account the latest changes and the impact on currency supervision and financial monitoring. Results. Subjects of foreign economic activity must also comply with the rules of currency exchange, import and export licensing, as well as customs procedures. Starting from 2019, currency supervision replaced currency control, a risk-oriented approach was introduced. Correct accounting is affected by the control of settlement deadlines, i.e. the time between the customs declaration and the payment. The experience of regulating foreign economic activity in Ukraine was the mandatory sale of proceeds by exporters under foreign economic contracts, which was canceled in 2019 by the NBU Resolution of February 6, 2019, №. 3. During the martial law, it was not restored. Funds, before entering the current account, may first be credited to a distribution account in the bank, which is in transit, and the operations of crediting to the distribution account and transferring to the current account may take place both during the same day and on different days. Based on the set of criteria for risky operations of foreign economic activity and taking into account internal documents, the bank can make a decision to break up the operation and violate the deadlines even if formal criteria are observed in export-import operations. Conclusion. Under the conditions of extraordinary events, there is a need to establish new currency regulation and control measures. Currency supervision is based on a risk-oriented approach and certain indicators of violations of currency legislation should be taken into account when implementing internal control measures.

INTERNATIONAL STANDARDS IN CUSTOMS: CURRENT SITUATION

Due to globalization and economic integration, international customs organizations are paying special attention to trade facilitation. Simplification of customs procedures provides benefits both the business community and governments.

MONITORING THE PERFORMANCE AND EFFICIENCY OF CUSTOMS CONTROL IN UKRAINE

Topicality. Ukraine is integrating into the global economic space and is an active participant in regional cooperation. This requires the abolition of certain restrictions on the free movement of goods. Customs control has a special place in this process. Advanced forms and methods of customs control, as well as measures to increase their performance and efficiency, ensure timely detection, prevention, disclosure and termination of offenses, as well as additional receipt of customs payments to the budget with the gradual introduction of European customs norms into the practice of our state.Aim and tasks. To analyze the performance and efficiency of customs control in Ukraine in order to substantiate the vectors for their further improvement.Materials and methods. Legislative and normative documentation, statistical data of the State Customs Service of Ukraine, legislative acts of the state authorities of Ukraine were used in the research process. General scientific and special methods of scientific knowledge, methods of generalization, analysis and synthesis, observation, comparison, grouping are applied - in the study of the categorical and conceptual apparatus of customs control, assessment of the performance and efficiency of control measures in the customs sphere.Research results. The choice of forms and methods of customs control depends on the goals set by the customs authorities for the management of customs risks from the implementation of foreign economic activities. Customs control can be effective, but not effective, if resources disproportionate to the achieved effect were spent to achieve the goals. The analysis of the customs audit in Ukraine proved that the main violations of the customs legislation related to the illegal receipt of tax benefits, violation of the requirements of the rules for the classification of goods in accordance with the UCT of the Foreign Trade and unreliable declaration of the customs value of goods. Today, due to the state of war, the emphasis in the work has been shifted to the organization of explanatory work by the customs, the provision of consultations on the practical application of certain norms of legislation on customs matters, and the conduct of a campaign of voluntary payment to the budget of customs payments in connection with the established signs of violation of the customs legislation. In most foreign practices, the customs audit is carried out by conducting a post-audit. This results in speeding up customs formalities and simplifying customs procedures, maintaining a balance between promoting international trade and effective customs control. On the basis of the analysis of the efficiency of the work of regional customs, the problems of their functioning have been identified according to a number of indicators, which indicates the need to focus on these areas during customs control.Conclusion. Prospective directions for increasing the performance and efficiency of customs control in Ukraine are:- increasing the effectiveness of customs audit and post-customs control;- increasing the effectiveness of control over the legality of the application of exemptions from payment of customs payments and the use of goods for their final destination, which will contribute to the increase of customs payments to the State Budget;- introduction of European practices in the field of customs control in Ukraine by building modern, flexible, reliable, service-oriented information and communication systems.Single indicators of performance and efficiency of customs control, which will be coordinated with the customs legislation of the EU member states, are required for further development and publication. They should reflect not only the quantitative indicators of additional revenues of customs payments to the budget, but also indirectly take into account the quality of changes taking place in the customs administration, due to the growth of international trade volumes, the activation of foreign economic activity.

Вопросы применения таможенной процедуры свободной таможенной зоны в Арктике

The current regulation provides for the possibility of creating special (free) zones and equivalent territories (hereinafter — SEZ) in the Arctic (territories of advanced development and the Arctic zone of the Russian Federation). Within the framework of SEZs, the customs procedure of a free customs zone (hereinafter — FCZ) can be applied, which provides opportunities to conduct economic activities with foreign goods without paying customs duties. The purpose of the study is to investigate the peculiarities of applying the customs procedure of a free customs zone in the Arctic. The following research methods were used in the preparation of the article: economic, analytical methods, method of comparison and generalization. This simplification can be demanded by Russian organizations — residents (participants) of the territories of advanced development and the Arctic zone of the Russian Federation. The proposed article is devoted to the consideration of the mechanisms of the above-mentioned simplifications provided for the residents of the “Arctic” SEZ. At the same time, the application of the customs procedure of FCZ in the SEZ territories is an important tool of the state economic policy, designed to ensure the creation of comfortable conditions for taxation of foreign goods. Issues related to the status of goods manufactured in SEZs using foreign goods that are placed under the FCZ customs procedure are largely related to Russia’s international obligations underlying the current regulation. In practice, the set of legally established simplifications analyzed in the article creates conditions for more effective activity of SEZ residents.

Prevention of corruption risks when performing customs procedures: types and concepts

The aim of the work is involves clarifying the theoretical and practical problems of preventing corruption risks in the implementation of customs procedures, the peculiarities of its definition of the essence and concept, and the selection of separate criteria for their classification within the limits of its customs and legal provision. The methodological basis of the study used a set of scientific research methods such as dialectical, formal-legal, systemic, hermeneutic, comparative-legal, empirical, etc. The content of individual categories “corruption”, “corruption risk”, “procedure”, “legal procedure”, “customs procedure”, “customs formalities” was clarified, the constituent elements of customs procedures were revealed. A proper definition of “corruption risk in the field of customs procedures” is proposed. It has been established that the customs procedure is a set of requirements that are determined by the implementation of customs control and customs clearance of goods and the peculiarity of paying taxes and customs payments, and the conditions of their implementation depend on a certain customs regime (that is, on the purpose, form and conditions of the movement of goods). It was determined that the institution of prevention of corruption risks in relation to violations of the established procedure for the implementation of customs procedures has its own specificity of legal support and is a separate subject of research in the science of customs law. It was found that the prevention of corruption risks in the implementation of customs procedures is a component of the prevention of corruption risks in the public administration of state customs affairs and is a separate part of the prevention of corruption in this area. It was concluded that the corruption risk in the field of customs procedures is legal, organizational and other factors and reasons that generate, encourage (stimulate) corruption in the implementation of customs control procedures, customs clearance procedures, as well as tax and customs payment procedures and their order implementation. According to the prevalence, it is proposed to highlight the following corruption risks in the implementation of customs procedures in the activities of customs officials, namely: dishonesty of customs officials, the occurrence of a conflict of interests among customs officials, lack of control by the management of customs authorities, the presence of discretionary powers of customs officials etc.