World Customs Research Articles

Legislative Purpose — The Unwritten Criterion in Classifying Goods: A Case Study of Israel Law

The International Convention on the Harmonized Commodity Description and Coding System (HS Convention) or HS, which seeks to establish uniform rules for the classification of products for customs and indirect tax purposes, is considered a resounding success. Its main objective is to ensure that a given product is classified in the same way in all World Customs Organization (WCO) member countries. The HS Convention does not specify the duty rates on each product, leaving it to the discretion of the member states, nor does it consider the legislative purpose of each country — to tax or exempt a product. This paper examines the issue of legislative purpose and concludes that considering the domestic legislative purpose when classifying leads to a lack of uniformity in the classification method and undermines the principle underlying the HS Convention. The issue has not been widely discussed in the literature; therefore, this paper makes a novel contribution to the literature on this topic.

The Effect of World Customs Organization’s AEO Programme on Trade Facilitation in Zimbabwe

The Effect of World Customs Organization’s AEO Programme on Trade Facilitation in Zimbabwe

Study of Illegal Wildlife Trade based on ARIMA and Linear Regression Modeling

Illegal wildlife trade has been on the rise in recent years, posing a threat to endangered species and ecosystems. In response to this problem, this study aims to identify the most suitable clients to implement anti-illegal trade projects and assess their capacity. Using a client assessment model, we identified the World Customs Organization as the most suitable to undertake a five-year project, predicted trade trends through an ARIMA model, and demonstrated project effectiveness. Intervention analysis showed that the project could reduce the number of illegal transactions. However, the project required more resources and authority. Linear regression modeling reveals that the client needs to be upgraded in many areas. This study provides important guidance for reducing illegal wildlife trade and calls for increased cooperation and resource allocation to protect wildlife ecosystems.

ORGANIZATIONAL AND LEGAL APPROACHES TO CREATING A LEGAL MECHANISM FOR INTERACTION BETWEEN THE EURASIAN ECONOMIC UNION AND THE WORLD CUSTOMS ORGANIZATION

The research article was prepared as part of a scientific study conducted by the author on improving the theoretical and legal foundations of customs regulation in the Eurasian Economic Union (EAEU, Union) in cooperation with the World Customs Organization (WCO). A task. To study the organizational and legal basis for the Union’s implementation of the Strategic Directions for the Development of Eurasian Economic Integration until 2025 in terms of cooperation with the WCO, as well as to develop a legal mechanism for interaction between the EAEU and the WCO. Conclusions. The article analyzes the rules and procedures of the Working Group on Interaction with the WCO, created in the EAEU, and also offers practical proposals for organizing customs cooperation of the Union with an international customs organization. Social Consequences. Conducting a study is associated with the implementation of paragraph 11.7.5. of Strategic Directions for the Development of Eurasian Economic Integration until 2025 in terms of cooperation with the WCO, as well as Memorandum of Understanding between the Eurasian Economic Commission and the World Customs Organization dated June 17, 2016. Practical value. The results of the study are of interest to the customs cooperation block of the Eurasian Economic Commission (EEC) and can be used by specialists of the customs authorities of the Member States of the Union, the EEC experts to organize strategic planning and to form the legal foundations for the modernization of the Union's law. Originality/value. The research material is based on an analysis of the practical aspects of the activities of the Commission, the Customs Services of the Union Member States, the WCO and is the result of a comprehensive study of the issue of improving international customs cooperation.

ACTUAL ISSUES IN THE DEVELOPMENT OF INTERNATIONAL CUSTOMS COOPERATION OF THE EURASIAN ECONOMIC UNION WITH THE WORLD CUSTOMS ORGANIZATION

A task. To consider current issues of international customs cooperation between the EAEU and the WCO, as well as perform a comprehensive review of scientific researches on the subject of current research. Conclusions. The article comprehensively examines the areas of international customs cooperation between the EAEU and the WCO, which need to be developed within the framework of Eurasian integration. Social Consequences. Conducting a study is associated with the implementation of paragraph 11.7.5. of Strategic Directions for the Development of Eurasian Economic Integration until 2025 in terms of cooperation with the WCO, as well as Memorandum of Understanding between the Eurasian Economic Commission and the World Customs Organization dated June 17, 2016. Practical value. The results of the study are of interest to the customs cooperation block of the Eurasian Economic Commission (EEC) and can be used by specialists of the customs authorities of the Member States of the Union, the EEC experts to organize strategic planning and to form the legal foundations for the modernization of the Union's law. The article is recommended to researchers, teachers, students, graduate students and other categories of students in the Russian Customs Academy, in other universities and the WCO regional training centers in the specialties «Customs» and «Jurisprudence». Originality/value. The research material is based on an analysis of the practical aspects of the activities of the Commission, the Customs Services of the Union Member States, the WCO and is the result of a comprehensive study of the issue of improving international customs cooperation.

Международное таможенное сотрудничество России и стран Африки

The article is devoted to the development of international customs cooperation between Russia and African countries. The article defines the prerequisites for the development of international customs cooperation between Russia and Africa, substantiates the theoretical and practical significance of international cooperation between the two sides. The article reveals the peculiarities of trade and economic relations with African countries and emphasizes the relationship with international customs cooperation. The article pays special attention to the issues of cooperation within the framework of the World Customs Organization, where the positions of the parties are most stable in modern conditions. The author defines promising forms of customs cooperation in the article, dividing them into two groups: tactical and strategic directions. As the main goal of customs cooperation, it is proposed to create a Eurasian-African Economic Partnership and interface the projects of the EAEU and the African Union.

P2P credit auction vs. net metering: Benefit analysis for prosumers under incremental block rate electricity tariff

In order to increase the economic benefits of residential photovoltaic (PV), many countries have considered diverse compensation policies for surplus energy, such as fixed feed-in tariff, time-varying feed-in tariff, and net metering, where the surplus energy is offset against consumption. More recently, there has been a growing interest in schemes that allow end-users to trade surplus energy via peer-to-peer (P2P) electricity trading, rather than relying on government incentives. This study conducts a quantitative analysis of on how the introduction of P2P trading affects the benefits of each stakeholder, offering a guide for policy adoption. Firstly, this study devises a P2P trading mechanism based on credit auctions tailored for residential, while considering the application of the increasing block rate tariff often applied to residential customers in the real world, and assesses its benefits in comparison to the current net metering scheme. Multiple case studies were undertaken, encompassing various scenarios, including the level of purchase price of utility for uncleared auction offers, the proportion of prosumers participating in the trading network, and the level of capacity of PV. This study shows that the P2P trading does not always yield positive benefits for prosumers compared to the prior policy. Nevertheless, this study identifies specific conditions under which the P2P trading can stimulate residential PV installations.

Customs Tariff Classification and the Use of Assistive Technologies

This paper aims to help inform discussions about customs tariff classification and the use of assistive technologies, especially those found online. It offers a broad background overview of classification practices and requirements by reference to the World Customs Organization’s (WCO) Harmonized System (HS), incurred challenges and costs, and the types of technologies deployed to assist users in their classification endeavours. Reviewed assistive technologies and solutions range from information tools that make it easier for users to find classification-relevant information (such as rulings and guidance notes) to Artificial Intelligence (AI) approaches that aim to suggest the most appropriate codes – with varying levels of success. Suggestions with examples about how to evaluate assistive classification technologies are provided. It is argued that there is considerable potential for such technologies, however, this inevitably depends on how well they can understand HS-relevant characteristics, the quality of data that supports them, and how well they have been developed or trained. The prize includes better compliance outcomes and improved trade facilitation by reducing classification-related costs. However, it is essential that policy makers and users understand the opportunities and limits of assistive classification technologies.

Proposals for Improving Legal Regulation of the Institute of Authorized Economic Operator

The article discusses current issues related to the development of the institution of an authorized economic operator (hereinafter — AEO) in Russia. The study is devoted to the analysis of the regulatory framework, and also analyzes the current state of affairs. the purpose of the article is to identify problems that require discussion and deeper research in order to improve the regulation of the AEO institution; formulating conceptual proposals for its development and involving in this institute companies that really need simplifications when carrying out customs operations for conducting foreign trade activities. This study is based on the methodological approaches of domestic scientists to the problems of development of economic institutions. When conducting the study, the method of comparative analysis of legislation regulating the AEO institution was used; An analysis of scientific literature and existing data from open AEO Registers was carried out. Methods of scientific knowledge, system analysis (deduction, induction, analysis, synthesis), graphic and statistical methods, systems approach were used; methods of monographic, statistical and comparative analysis, generalization and interviews were used. results and scientific novelty of the study. The work focuses on the study of the terms underlying the AEO institution. According to the author, the term should more accurately reflect the purpose and essence of its creation. The legal regulation of the AEO institution requires a new rethinking, with prospects for the development of the institution, as laid down in the standards of the World Customs Organization, from the understanding of AEOs as national companies that have a number of simplifications when performing customs operations, to the understanding of AEOs as organizations — links in the supply chain of products between AEOs of other countries, provided they all meet trade and safety standards. A set of proposals for the development of the AEO Institute has been formed. Conclusions. The proposals concern clarification of terminology and proposals for improving the regulatory framework, in particular the development of simplifications. The federal customs services of the EAEU countries may use the provisions of this article when developing legal regulation for the development of the AEO institution. The degree of elaboration varies from a conceptual idea to the proposal of specific amendments to articles of laws.

The Role of Value Co-Creation Towards Non-financial Performances: Mediating Effect of Customer Support Ticket in the Context of Life Insurance Sector in Sri Lanka

Nowadays, value co-creation plays a vital role in acquiring new business and retaining customers in the competitive business world. Understanding customers and providing them with personalized experiences has become a trend. Value co-creation also plays a crucial role in brand development, as it contributes to brand equity, reputation, and credibility. These factors guide consumer decisions, determining whether they become loyal to a brand or switch to another. Despite its importance, the specific mechanisms through which value co-creation impacts non-financial performances in the life insurance sector in Sri Lanka have not been thoroughly explored. Therefore, the main purpose of this research is to study the impact of value co-creation on the non-financial performances of life insurance policies in Sri Lanka. Dimensions of value co-creation, such as relational orientation, customer involvement, freedom of co-creation, and degree of collaboration, will be examined, along with the mediating effect of customer support tickets. A quantitative research strategy will be employed, utilizing data collected through surveys. The researcher has developed a scale based on previous literature to measure value co-creation and non-financial performances. Reliability and validity of the scales were tested using survey data. The study was conducted in a descriptive manner, allowing for natural settings and avoiding researcher interference. Primary data were collected from a convenient sample of 142 employees working in life top performing insurance companies residing in the Western Province. Regression and multiple regression analyses were conducted to examine the relationships. The results revealed that all elements of value co-creation significantly impact the non-financial performances of life insurance policies, and the moderator and mediator effects supported the framework. Finally, the researcher presented several recommendations for marketing strategies based on the study's results. This research contributes to the existing literature and fills the practice gap, providing avenues for future researchers to explore potential areas. Overall, this study emphasizes the importance of value co-creation in the life insurance sector, highlights its impact on non-financial performances, and offers valuable insights for marketing strategies in Sri Lanka.

ЕКОНОМІЧНА ДИПЛОМАТІЯ ВЕЛИКОЇ БРИТАНІЇ

The conceptual foundations of the United Kingdom’s economic diplomacy after Brexit is investigated in the paper. The role of economic diplomacy in supporting the country’s leadership and protecting national interests is analyzed. The program of economic diplomacy across five key areas: trade policy, shaping international norms and standards, concluding bilateral and multilateral agreements, participation in international organizations, and economic governance is systematized in the study. It is noted that the UK’s economic diplomacy system is based on a «whole-of-government» approach involving the Foreign, Commonwealth & Development Office and the De- partment for Business and Trade. This comprehensive strategy integrates efforts across external relations, domestic policy, commercial activity, and institutional development to consolidate the promotion of the United Kingdom’s national interests. The evolution of UK government agencies responsible for business, industry, and trade, leading to the establishment of the DBT in 2023 is examined in the research. The DBT’s key priorities, including economic growth, business support, promoting companies in global markets, fostering competition, advocating free trade, protecting business interests, supporting innovation, and leveraging post-Brexit opportunities are highlighted in the paper. It is distinguished that after Brexit, Britain seeks to diversify its trade ties by negotiating new bilateral free trade agreements and joining multilateral trade deals. It is noted that membership in the IMF, OECD, and G7 is crucial for the UK’s role in the global economy. Participation in shaping international norms and standards within organizations like the OECD and the World Customs Organization allowing Britain to play an active role in defining the «rules of the game» in global economic affairs and promoting its approaches in regulating trade, investment, and competition. It is concluded that economic diplomacy is a key instrument for advancing the UK’s trade, investment, and economic interests globally in the post-Brexit era.

Sosialisasi Pengembangan Personal Branding UMKM Desa Murukan Melalui Pelatihan Digital Marketing

Personal branding is the process of building a unique personal image and identity for an individual, in this case, the owners of Micro, Small, and Medium Enterprises (MSME) in rural areas. For rural MSME, personal branding can be a powerful tool to enhance their visibility and business image. This community engagement aims to enhance the understanding and skills of rural MSMEs in personal branding, teach digital marketing techniques to MSME so they can effectively promote their products and services on the internet, and promote MSME growth through personal branding strategies and product rebranding training. This activity was conducted on September 4, 2023, involving the subjects of community engagement, the operators of MSME in Murukan Village, Mojoagung, Jombang, which took place in the Murukan Village hall. The method used in this program is Participatory Action Research (PAR) with the following stages: Problem Identification, Joint Planning, Action Implementation, and Reflection and Evaluation. The conclusions of this activity are as follows: (1) The subjects of engagement have begun to understand the importance of Personal Branding: Personal branding plays a crucial role in attracting customers in the competitive digital world. It helps rural MSME differentiate themselves from competitors and build strong customer relationships. (2) Socializing personal branding through digital marketing is done consistently and sustainably in building a brand, requiring time and consistency in messaging and actions as the keys to success. (3) Digital marketing empowers rural MSME to reach a broader audience without incurring significant costs.

IMPROVEMENT OF THE HARMONIZED COMMODITY DESCRIPTION AND CODING SYSTEM IN THE CIRCULAR ECONOMY ENVIRONMENT

The article is devoted to the concept of a circular economy, which has attracted significant attention from the government and business as a sustainable approach to resource management and economic development. The author analyzed the implemented and planned stages of the transition to a circular economy within the framework of existing business models, as well as the potential for further development and the problems associated with such transition. Based on the data obtained, the role of the Harmonized Commodity Description and Coding System (HS) in ensuring identification, traceability and correct customs control of recycled goods. The material discusses several areas for improving the HS in this area: the development of specific codes for the accurate classification of secondary goods, the introduction of terminology to accurately identify goods within the circular economy, as well as the integration of the HS with other international instruments, such as the Basel Convention, to ensure full control of secondary goods.
 As a conclusion, this article argues for the need to discuss circular economy issues at future sessions of the World Customs Organization (WCO) and review the existing structure of the HS.

Determinants of the imports of essential medical products by European Union

The rapid spread of the COVID-19 pandemic has triggered a marked distortion in the trade of medical products needed to combat its severe effects on the health of infected individuals. This study sought to examine the determinants of imports by the 27 countries of the European Union (EU-27), through a panel data analysis for the period 2015 – 2020. The aim is to shed light on the distinct behavior of imports of each of the seven products classified as essential by the World Customs Organization and the World Health Organization. To that end, economic and social characteristics of the buyer country were treated as explanatory variables, along with the origin of the goods and the effect of the virus in 2020. The results showed that several determinants of imports of medical goods have a homogeneous influence on all of these products. This is also in line with gross domestic product per capita and population, which showed positive and significant coefficients for all products. The level of wealth of a country reflects its purchasing power, and thus capacity to purchase essential goods. Furthermore, an aged population in a territory is indicative of the greater need for essential medical products, which was amplified in 2020 due to the high vulnerability of this group to the symptoms of the virus. The present study confirmed that EU-27 trade agreements curbed the mass entry of non-EU products and that COVID-19 pandemic increased imports of certain products.

The Connection Formula in Classifying Goods Under the Harmonized System (HS) Convention

Classification of goods for customs purposes, according to the Harmonized System Convention (HS), affects the tax rates that will or will not be imposed on them, as well as issues related to compliance issues, such as required government approvals, statistical needs, free trade agreements, and so on. The HS language contains many Headings and Subheadings which relate to the degree of connection between the goods and their usage. These phrases use language such as exclusive use, primary use, special use, designed use of the goods, for example, which will be referred to in this article as the ‘connection formula’. The HS seems to contain too many types of connection formulae, with the difference between them not always clear. Therefore, it is suggested to eliminate non-defined terms, and to strive for a method that is as simple as possible. Alternatively, the World Customs Organization (WCO) should consider eliminating the ‘use’ condition and sticking to a narrow description.

4C Marketing Theory from the Perspective of Horticultural Industry Marketing Strategy Analysis

The purpose of this paper is to analyze the market strategy of landscape industry in China. On this basis, by using the methods of literature, case analysis and questionnaire survey, this paper discusses the market strategy that should be adopted by the landscape industry in China, in order to provide some reference for the development of the landscape industry in China. In recent years, with the continuous development of the global economy, the level of science and technology is also constantly improving. People are increasingly pursuing a high quality of life. However, with the rapid development of The Times, human beings' requirements for ecological environment are increasing day by day. Therefore, the whole world is exploring how to improve the level of ecological security in our country. Landscape industry is the basis of human survival and development, but also the basis of human survival and development. Due to historical, cultural, economic and other factors, today's market conditions around the world are not the same, but they have their own unique advantages. Through literature research on the origin and development history of the horticulture industry, this paper finds that the horticulture industry is closely related to the development of human society and is closely related to the world's economy, culture, history, art and customs. Today, when the global ecological environment urgently needs to be improved, the landscape industry has been paid more and more attention worldwide. At present, the world has begun to pay attention to the benefits of landscaping on the human body, and carried out a variety of research on landscaping treatment, after the epidemic was raging around the world in 2020, people's yearning for natural life has become stronger. With the development of scientific research, people have attached importance to the beautification and healing effect of horticulture, The attention to ecological environment is the inevitable trend of the development of human society. In the garden, he also became more sophisticated. It is no longer just a natural exploration, but a government-led national architecture strategy, as well as an industry dominated by the elite, its emergence and popularity, so that more home garden fans can enjoy the beauty of nature to bring them. In this context, with the wide spread of the concept of "home garden", the development of Chinese landscape architecture has entered a new stage. Therefore, for the development prospects of the landscape industry, how to use market strategies to promote the development of the landscape industry and improve the influence of the industry, especially for the development of the landscape industry, has positive significance for the development of the landscape industry. By means of questionnaire survey, this paper studies the influencing factors of consumers' purchasing behavior of garden commodities, and integrates with the 4C market theory. Taking Hongyue Garden as an example, this paper conducts an empirical study on the company's market strategy, finds out the advantages and disadvantages of the company in the market, and hopes to bring some references to other garden companies. So as to better promote the development of the landscape industry.

관세평가제도와 이전가격세제의 국제 조화방안 연구

Purpose - This research is based on international trends and the U.S. response to problems caused by the overlap of the tariff evaluation system and the transfer price tax system. This study intends to review the existence of the domestic tariff evaluation system and transfer price tax system.
 Design/Methodology/Approach - In this study, only the upper transfer price adjustment, which leads to the collection of tariffs, is considered in the customs evaluation system, and the discussion was conducted with a sense of the current situation in which taxpayers are unilaterally disadvantaged. To this end, after analyzing international trends in problems caused by the overlap of the tariff evaluation system and the transfer price tax system, a new method of Korea's tariff evaluation system and transfer price tax system was proposed.
 Findings - As a result of analyzing discussions by the World Customs Organization (WCO), the International Chamber of Commerce (ICC), and the Organization for Economic Cooperation and Development (OECD), it is desirable to consider a transfer price adjustment in the tariff evaluation system. However, since it is clear that compensation adjustments or some price adjustments affect the tariff evaluation system, it is very important to clarify that effect in the relevant guidelines.
 Research Implications - Currently, it can be said that the correction disposition by the transfer price tax system in Korea does not affect the tariff evaluation system. However, since it is clear that compensation adjustments or some price adjustments affect the tariff evaluation system, it is important to clarify that effect in the relevant guidelines.

Qualitative analysis of customer behavior in the retail industry during the COVID-19 pandemic: A word-cloud and sentiment analysis approach

The COVID-19 pandemic caused a paradigm shift in customer behavior within the retail industry. Pandemic-induced restrictions and fear of product scarcity led to a change in purchasing frequency, with customers stockpiling non-perishable products such as basic foods and hygiene items. Media and social networks also played a significant role in fueling panic-buying behavior. Although sales decreased, consumption in all food categories increased due to the closure of restaurants and the need to prepare meals at home. The pandemic had a significant impact on both customers and retailers, resulting in staff reductions and a change in business strategies.To explore how Romanian food retailers’ representatives responded to the COVID-19 pandemic and adjusted to changing consumer behavior, the authors employed a qualitative research approach based on an interview guide. The data collected were analyzed using the statistical software R. In data analysis with R, the choice of functions used depends on various factors, such as the type of data, research questions, and analysis methods. Generally, commonly used functions in R for data analysis include data cleaning and manipulation functions such as subset, merge, and transform, data visualization functions such as ggplot2, and statistical modeling functions such as lm and glm, resulting in world clouds and a sentiment analysis.The results show that to develop effective business strategies, qualitative analysis helps identify the root causes of these changes. Sentiment analysis can reveal how retail chains representatives perceived the safety measures implemented in stores, such as social distancing and mask-wearing mandates, and how these measures affected customers’ shopping behavior. It also sheds light on how customers shopped and whether they planned to continue using these methods post-pandemic. Understanding these insights is crucial for retail companies to adapt their operations and better serve their customers in the post-pandemic world.

‘Nudging’ Voluntary Compliance in Border Customs

Legal and regulatory compliance can be voluntarily motivated or enforced by authorities. The World Customs Organization Voluntary Compliance Frameworks (WCO VCF) is adopting a reward and punishment system, responsive to economic constraints of compliance. However, psychological elements do not appear to be incorporated. The WCO VCF could employ ‘norm nudge’ and ‘deterrence nudge’ as supplementary tools in responding to different client risk types, analogous to the effective application of nudge incentivization in taxation compliance. Similarly, it could help improve voluntary self-declaration of goods at the border crossing.

Đánh giá quá trình chuyển đổi số của ngành Hải quan Việt Nam giai đoạn 2014 đến 2022

In order to catch up with the general trend of the world customs, and to facilitate cross-border trade between Vietnam and its partners, Vietnamese customs is drastically implementing the digital transformation process. Using an analysis-synthesis method based on domestic and foreign secondary data sources, the article has comprehensively assessed the digital transformation conducted by the Vietnamese customs authority from 2014 to 2022. In particular, the article (1) reviews the important milestones; (2) analyzes and evaluates in detail the achievements and limitations in the progress towards the goal of digitization;(3) makes some recommendations to the competent authority to help overcome the remaining limitations and to promote the digital transformation of Vietnamese customs