As global trade continues its rapid expansion, customs authorities worldwide face the dual challenge of maintaining security while ensuring efficiency. The recent World Customs Organization (WCO) conference in Shanghai sought to address this critical balance.
International Gathering in Shanghai
From May 18-20, 2016, WCO Deputy Secretary General Sergio Mujica attended the International Federation of Customs Brokers Associations (IFCBA) World Conference in Shanghai at the invitation of IFCBA President Shantanu Bhadkamkar. The event brought together over 400 customs brokers and representatives from 21 countries to discuss "Enhancing Trade Through Customs-Business Partnerships."
China's Customs Vision Under Belt and Road
During the opening ceremony, Lu Peijun, Vice Minister of China's General Administration of Customs, emphasized customs' pivotal role in trade facilitation and economic competitiveness. He highlighted China's ambitious Belt and Road Initiative, which seeks to strengthen global connections through infrastructure development and trade cooperation, with customs serving as a key facilitator.
The Belt and Road Initiative represents more than trade route construction—it's a comprehensive system involving customs supervision, trade regulations, and information sharing. Chinese customs authorities are actively working to create more efficient, convenient, and secure trade environments for businesses along the routes.
WCO's Global Perspective on Partnership
Deputy Secretary General Mujica outlined WCO's recent activities, stressing the importance of customs-business collaboration and the critical role of customs brokers in supporting international trade systems. The WCO maintains that such partnerships are essential for improving trade efficiency, reducing costs, and enhancing compliance.
Through closer cooperation, customs authorities can better understand business needs and address trade challenges, while companies gain clearer understanding of customs policies to improve compliance and mitigate risks.
WCO Research: Pathways to Better Collaboration
On the conference's second day, Mujica presented findings from a WCO survey of customs brokers, inviting discussion on how both parties could work more effectively to strengthen trade facilitation and compliance, particularly through capacity building and professional development.
The report identified key challenges facing customs brokers, including information gaps, insufficient training, and outdated technology—all barriers to effective service delivery. The WCO recommended enhanced information sharing, expanded training programs, and adoption of advanced technologies to elevate brokers' professional standards.
China's Customs Modernization Efforts
Following the Shanghai conference, Mujica visited Beijing for bilateral talks with Sun Yibiao, Deputy Commissioner of China's General Administration of Customs. Discussions covered WCO developments and China's ongoing customs modernization initiatives, with Mujica acknowledging China's strong support for WCO strategic plans.
China's modernization journey has included significant technological and managerial advancements, such as implementing a "Single Window" system for centralized trade data processing, dramatically streamlining procedures. Chinese customs authorities also actively contribute to shaping global trade standards.
Future Directions for Customs-Business Cooperation
The Shanghai conference provided a platform for dialogue while charting future collaboration paths. In today's complex trade environment, such partnerships grow increasingly vital for mutual success.
Key areas for development include:
Enhanced Information Sharing: Establishing robust communication channels for trade data, regulations, and risk intelligence.
Customized Services: Tailoring customs services to different business needs, from expedited clearance for trusted traders to advisory services for SMEs.
Technology Adoption: Implementing blockchain, AI, and big data solutions to boost efficiency and risk management.
Capacity Building: Expanding training programs to improve business compliance and reduce trade risks.
The Critical Role of Customs Brokers
Customs brokers serve as essential intermediaries, navigating complex regulations to ensure smooth cargo clearance. However, they face significant challenges in staying current with evolving trade rules and maintaining effective customs communication.
The WCO recommends that customs administrations:
Develop Comprehensive Broker Management Systems: Clearly defining qualifications, rights, obligations, and operational standards.
Expand Training Programs: Elevating professional standards through continuous education.
Support Broker Associations: Encouraging industry self-regulation and collective advocacy.
The future of global trade depends on collaboration among all stakeholders—customs authorities, businesses, and brokers working together to create more efficient, secure trade environments that drive economic prosperity worldwide.