Imagine the arteries of global trade clogged by information bottlenecks—goods stranded at ports, corporate profits eroding, and consumers waiting impatiently. The solution to these trade congestion points lies partly in stronger collaboration between customs authorities and customs brokers.
From May 18-20, 2016, the International Federation of Customs Brokers Associations (IFCBA) convened its World Congress in Shanghai, China. The event brought together over 400 participants from 21 countries, including World Customs Organization (WCO) Deputy Secretary General Sergio Mujica, who attended at the invitation of IFCBA Chairman Shantanu Bhadkamkar. The congress focused on "Enhancing Trade Facilitation Through Customs-Business Partnership."
China Customs' Commitment to Trade Facilitation
At the opening ceremony, Lu Peijun, Deputy Director General of China Customs and Vice Minister of the National Port Administration Office, emphasized customs' pivotal role in trade facilitation and economic competitiveness. He highlighted China Customs' ongoing initiatives, particularly those under the Belt and Road Initiative, demonstrating China's commitment to global trade prosperity through concrete actions.
The WCO Perspective: The Vital Role of Customs-Broker Cooperation
Following the opening ceremony, Deputy Secretary General Mujica presented WCO's recent activities and developments. He stressed the importance of customs-business collaboration and the critical function of customs brokers in supporting international trade systems and customs administration. The WCO recognizes brokers as essential bridges between customs and businesses, whose professional expertise and compliance awareness are vital for trade security and efficiency.
WCO Research: Identifying New Collaborative Opportunities
On the second day, Mujica presented findings from WCO's survey on customs brokers. He invited participants to explore areas for enhanced cooperation between customs and brokers to strengthen trade facilitation and compliance, particularly through capacity building and professional development. This research provides valuable guidance for future collaboration.
China Visit: Strengthening WCO-China Customs Relations
During his China visit, Mujica traveled to Beijing for bilateral discussions with Sun Yibiao, Vice Minister of China Customs. Their talks covered WCO developments and China Customs' modernization initiatives. Mujica expressed appreciation for China's strong support of WCO programs, including implementation of the organization's strategic plans, highlighting China's active role in global customs affairs.
Key Areas for Customs-Broker Collaboration
Examining the potential for deeper cooperation reveals several critical areas:
- Information Sharing and Risk Management: Brokers possess valuable trade data crucial for customs risk assessment. Secure information-sharing platforms could enhance risk management while keeping brokers updated on regulatory changes.
- Capacity Building and Training: Joint training programs covering customs regulations, classification, valuation, and rules of origin would enhance broker professionalism and reduce errors.
- Compliance Incentives: Differentiated treatment based on compliance records could reward high-performing brokers with streamlined procedures, encouraging better compliance industry-wide.
- Technology Innovation: Emerging technologies like blockchain for supply chain transparency and AI for risk identification offer opportunities for joint innovation.
- Dispute Resolution: Establishing effective communication channels and conflict resolution mechanisms would preserve productive working relationships.
Looking Ahead: Building Stronger Partnerships
The Shanghai Congress established an important platform for customs-broker collaboration. Through enhanced cooperation in information sharing, capacity building, compliance incentives, technology, and dispute resolution, both parties can build stronger partnerships to benefit global trade. As Mujica emphasized, brokers play an irreplaceable role in international trade systems. Only through joint efforts can true trade facilitation and economic development be achieved.
Case Study: China Customs' Innovative Practices
China Customs has made significant progress in customs-business cooperation, including implementing the Authorized Economic Operator (AEO) program that provides trade facilitation to qualified companies. Collaborations with major e-commerce platforms to develop new cross-border e-commerce supervision models offer valuable examples for other nations.
Global Perspectives on Customs-Business Models
Beyond China, other countries are exploring innovative approaches such as customs-business joint laboratories for trade security solutions and advisory committees for regular industry consultation. These initiatives demonstrate the global momentum toward closer customs-business cooperation.
The collaboration between WCO and IFCBA, along with active engagement between customs administrations and brokers worldwide, underscores the growing recognition of this partnership's importance in creating more efficient, cost-effective global trade systems.