Global trade arteries function much like human blood vessels, with customs serving as vital checkpoints whose efficiency directly impacts the flow of commerce. To accelerate and streamline cargo clearance, Jordan Customs Department (JCD) turned to Dubai Customs, renowned for its excellence in trade facilitation.
From June 5-9, 2023, under the framework of the World Customs Organization (WCO), JCD conducted a study visit to Dubai Customs Authority. The mission aimed to learn regional best practices and strengthen JCD's capabilities in air cargo facilities, aligning with Article 7.8 of the WTO Trade Facilitation Agreement (TFA). This initiative received support from the Global Trade Facilitation Programme (GTFP), jointly launched by the Swiss State Secretariat for Economic Affairs (SECO) and WCO.
Global Trade Facilitation: Challenges and Opportunities
Against the backdrop of expanding global trade, customs administrations worldwide face unprecedented challenges. While trade volumes continue rising, demanding greater clearance efficiency, security risks grow increasingly complex, requiring streamlined yet secure procedures. The WTO TFA addresses these challenges through simplified, harmonized, and standardized customs processes to reduce trade costs and boost efficiency.
As a key Middle Eastern trade hub, Jordan Customs confronts unique facilitation challenges. The department must continuously enhance its capabilities to adapt to global trade trends and capitalize on TFA opportunities. The Dubai study visit represents a strategic step toward these objectives.
Dubai Customs: A Trade Facilitation Benchmark
As a global commerce center, Dubai Customs has developed exemplary facilitation practices through several key strategies:
- Simplified Procedures: Implementing electronic declarations and paperless clearance significantly reduces processing times.
- Risk Management: Advanced risk assessment techniques focus resources on high-risk shipments while expediting low-risk cargo.
- Data Utilization: Comprehensive data collection and analysis continuously optimize customs operations.
- Technology Integration: Non-intrusive inspection equipment like X-ray scanners enables efficient cargo examination.
- Interdepartmental Coordination: Close collaboration between risk management and audit departments enhances compliance enforcement.
Study Visit Insights: Dubai's Operational Framework
During the five-day mission, Jordan's delegation examined Dubai's customs mechanisms through visits to key facilities:
- Air Cargo Center: Observed advanced technologies accelerating air freight clearance and risk management cooperation with airlines and freight forwarders.
- Port Customs Services: Studied maritime cargo processing and anti-smuggling measures coordinated with port authorities and shipping companies.
- Customs Headquarters: Exchanged insights with risk management, audit, and data analysis teams about operational optimization strategies.
The delegation acknowledged Dubai's practices as highly relevant for Jordan's customs modernization efforts.
Jordan's Path Forward: Implementing Best Practices
The knowledge gained will guide JCD's advancement in several areas:
- Developing expedited air cargo release procedures compliant with TFA requirements
- Enhancing e-commerce facilitation frameworks
- Strengthening risk assessment capabilities
- Expanding technology adoption for operational efficiency
WCO will continue supporting Jordan's trade facilitation progress through the SECO-WCO GTFP initiative.
Analytical Perspective: Measuring Facilitation Impact
From an analytical viewpoint, trade facilitation effectiveness can be quantified through metrics like clearance times, compliance costs, inspection rates, and trade volumes. Implementing air cargo acceleration measures could significantly reduce Jordan's clearance durations and trade expenses while boosting air freight activity. Data-driven risk profiling would further improve inspection targeting accuracy.
This knowledge exchange positions Jordan Customs to establish more efficient clearance systems that will contribute substantially to national economic development.