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Maritime And Logistic Management Answers Assessment Answer



Customs services have faced contradictory and considerable needs identified in the business globalization. In 2002, the leaders of the world customs organization had identified the prime challenges influencing to execute the customs service effectively (Smith 2013). However, there is a requirement for improving the effective security system.  Besides, there is enhancing needs for the superior facilitation of the lawful trade. There are many challenges in the customs such as the globalization of business and trade, development and poverty reduction, and complex new government rules (Dreyer and Popescu 2014). The world custom administrations recognize their roles and errands for developing the new strategy that will improve the customs service on the global platform. In this context, the activities of the customs services have been discussed along with its key strategic drivers. Moreover, the role of World Trade Organization has been identified in an effective manner.

Activities of Customs:

The prime roles of the customs service are revenue collection, trade compliance, and facilitation. Moreover, they are responsible for the enforcement of IP and trademark laws (Han and Ireland 2013). However, the rules depend on the various rules of different countries.  On the other hand, the customs service is responsible for implementing a broad range of border management policies and regulatory framework dictated by the respective government. The prime activities are centered on the points of exportation and importation. The particular process is required to interact with the government agencies such as health, trade, agriculture, statistics and immigration (Chan et al. 2015). According to the customs rules and regulations, customers can import or export certain goods. For example, under the UK customs legislation, the customers need to make a declaration if they exceed their allowances. Moreover, the customers are required to take permission from the customs to bring goods for commercial use. By discussing the principal roles of the customs service, it can be assessed that the leaders in the 21st century have been taking strong action against smuggling activity and counteracting the customs fraud (Fedorenko 2014). On the other hand, the customs service has been fulfilling several responsibilities including the protection of national industry, natural environment, etc.

Customs in the 21st Century:

In the 21st century, the customs service has been playing a new vibrant role. The responsibility of the customs is to manage and secure the state’s interests and safeguard revenue collection. The prime objective of the customs service is to ensure the compliance with the state policies and laws, which applicable to the cross-border movement of the goods. There are two primary roles of the customs service in the 21st century such as changing business expectations and response from the global organization (Malyshenko 2013). For the enhancement of the commercial growth, the business is required the most cost-effective logistics solutions and trade support. On the other hand, the changing business expectations indicate the flexibility and timeliness in dealing with the government. The leaders in the customs service try to enhance their facilities for obtaining responses from the global organizations. Although most of the roles and responsibilities are same in the services, the responsibilities to the international movement of goods have been widened in an efficient manner (Mendoza, Gloria and Pena-Reyes 2014). The customs administrations not only responsible for administrating the trade but also focus on improving the cross-border movement of goods. Hence, it can be assessed that the objective of the customs service is to provide security to the international organizations for the movement of the goods (McGovern 2016). On the other hand, the improvement in the regulatory framework of the customs service will contribute in the business globalization.

Key Strategic Drivers Influencing Custom Authorities:

There are some key strategic drivers influencing the customs authorities. These strategic drivers are as follow:

  • Acknowledgment of customs changing role
  • The responses of the customs to the central new role
  • Widening of the customs role at the borders
  • Enhancing role in the administrating trade services
  • Trade liberalization does not indicate reducing customs responsibility
  • The total control approach has been adopted
  • More emphasis on the automation and risk management

In recent years, the customs authorities have been experiencing the complexity of work. By widening the facilities, the customs authority would be able to support the business globalization. Nowadays, the customs role at the border has grown to enhance the security in an effective manner (Matsushita et al. 2015). Most of the key border agencies have expanded their security oversight to reduce the terrorist activities. On the other hand, the increased administrative rules have facilitated to prevent the unfair competition in the business. The trade liberalization has facilitated in expanding the global business in an effective manner. Beside the tariff reduction, the customs authorities have duties like tax collection (Eagleton-Pierce 2012). However, the service needs to include improved rules for protecting from the dangerous goods. Most of the customs authorities such as UK Customs and US customs have been emphasizing on the new automation. As per the customs authority, the modern IT solutions provide security and real time exchange. On the other hand, the customs authority in UK has adopted the control approach (Nanda and Pring 2012). As per the new government legislations of UK, the customs scope has been expanded from the traditional revenue collection to the growing needs of the business.

Roles of World Trade Organization (WTO):

The world trade organization has the crucial roles and responsibilities in enhancing the international trade in an effective manner.  Moreover, the world trade organization focuses on the legal and political challenges beginning in the foreign business due to the globalization. In the 21st century, the world trade organization has emerged as a world’s most powerful institutions for diminishing the different trade barriers between the new opening market and countries. The only international governing body has replaced the general agreement on trade and tariff (Viner 2014). This tariff and trade were created in 1948. The prime objective of the WTO is to deliver a proper platform where the members of the country can execute different business activities including exports and imports. The members of the WTO have delivered 96.4% of the global trade and 96.7% of global GDP in 2007 (Smith 2013). As per the global business report 2005, Iran and Algeria were the economies with the largest trade and GDP outside the WTO. There are 164 members of the WTO as of 2016. The recent members of World Trade Organization are Afghanistan, as it is listed on the WTO table on 29 July 2016 (Dreyer and Popescu 2014). Most of the countries face lower trade-related barriers for being the members of WTO.  On the contrary, countries apart from the WTO list must negotiate the trade-related agreements with their trading partners.

Key Action of World Customs Organization (WCO):

The world customs organization was established in 1952. The world customs organization is an independent intergovernmental organization whose primary objective is to improve the efficiency and effectiveness of the customs administrations globally. It has 180 members worldwide in all stages of the economic and social development (Han and Ireland 2013). In the recent years, the prime responsible for the WCO members is to process more than 98% of all foreign trade (Chan et al. 2015). On the other hand, WCO ensures the appropriate standards of customs control. Moreover, it eliminates the divergence between customs process and practices of contracting parties, which can damage the foreign trade and other exchanges. It provides the customs authorities with the efficient procedures and appropriate support and effective control methods. There are several challenges for the governments to execute the system in an effective manner (Fedorenko 2014). On the other hand, the states have to take some responsibilities such as follows:

  • Implementing socio-economic development
  • Controlling the borders
  • Delivering the security
  • Provide enhanced protections to the citizens
  • Ensuring the conditions of the economic growth

On the other hand, the world customs organization faces several issues including revenue package, economic competitiveness package, organizational development package, etc.

Wco action or Safe-Framework:

In the year 2005 of June, the WCO Council has rendered a great initiative called the SAFE framework. It has been designed to reduce the international terrorism and secure the revenue collections. Moreover, the WCO framework promotes the trade facilitation globally. The prime objective of the framework was to establish the standards that enhance the customs to the business partnerships. In 2015, a new version of the SAFE frameworks was released (Malyshenko 2013). It focuses on improving the customs and other government and inter-government agencies. The members of the WCO have been trying to develop a substantial amount of additional support material.


It can be concluded that world customs organizations recognize their roles for developing an enhanced strategic perspective and policies. In the 21st century, the customs leaders have been playing a dynamic role for enhancing the business globalization. On the other hand, different government legislations have been trying to enhance the foreign trade activities.  However, there is a need for the effective security in the borders for reducing the terrorist activities in an effective manner. The strategically customs administrations have several benefits including reduced compliances costs for the legitimate traders across the globe. 


Chan, H.K., Zhang, H., Yang, F. and Fischer, G., 2015. Improve customs systems to monitor global wildlife trade. Science, 348(6232), pp.291-292.

Dreyer, I. and Popescu, N., 2014. The Eurasian Customs Union: the economics and the politics. European Union Institute for Security Studies,11.

Eagleton-Pierce, M., 2012. Symbolic Power in the World Trade Organization. OUP Oxford.

Fedorenko, R.V., 2014. Development of Outsourcing in the Customs Sphere.Asian Social Science, 10(20).

Han, C.R. and Ireland, R., 2013. Informal Funds Transfer systems as a target of customs enforcement1. World Customs Journal, 7(1), pp.3-11.

Malyshenko, Y.V., 2013. Completeness, correctness and reliability of customs control. World Customs Journal, p.13.

Matsushita, M., Schoenbaum, T.J., Mavroidis, P.C. and Hahn, M., 2015. The World Trade Organization: law, practice, and policy. Oxford University Press.

McGovern, E., 2016. International trade regulation (Vol. 2). Globefield Press.

Mendoza, R.U., Gloria, E. and Pena-Reyes, S.P., 2014. Recasting the Bureau of Customs as a Developmental Agency. Asian Institute of Management (AIM) Working Paper, (14-020).

Nanda, V. and Pring, G.R., 2012. International environmental law and policy for the 21st century. Martinus Nijhoff Publishers.

Smith, K.E., 2013. European Union foreign policy in a changing world. John Wiley & Sons.

Viner, J., 2014. The customs union issue. Oxford University Press.


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