THE IMPORTANCE OF INFORMATION TECHNOLOGY IN CUSTOMS ADMINISTRATION
THE IMPORTANCE OF INFORMATION TECHNOLOGY IN CUSTOMS ADMINISTRATION
Natalia Shuvalova
applicant for a Degree Candidate of Economic Sciences,
Russia, Moscow
Information and Communication Technologies (ICT) are growing rapidly in recent years. So far, for fifty years, Information Technology has centered on DATA—their collection, storage, transmission, presentation. [3, p.97] ICT facilitate government to offer its service without limit time and place. Many companies take advantage of ICT to improve their operations with lower cost. Government, being a large organization, should be able to gain more benefits by using ICT to deliver its services to the public. Electronic government (e-government) refers to the delivery of government information and services online through the Internet or other digital means. e-Government can take the form of various online transactions such as company registration, taxation, applications for a variety of employee- and business-related requirements, and the like.
ICT provide two main opportunities for government: increased operational efficiency by reducing costs and increasing productivity, and the better quality of services provided by government agencies. Citizens and businesses can be able to get service and information in minutes. On the other hand, government employees can be able to do their work as easily, efficiently and effectively. e-Government is not a new field. Many countries have invested a lot to adopting e-government.
Information and Communication Technologies can use in many government affairs, such as e-declaration. e-Declaration enables traders to conduct their import and export declarations electronically.
Currently, many countries use IT in customs activities, for example, automation by Thai customs.
Prior to the of new introduction automated system, trade-related documents were manually processed by Customs officers. Given the constraints faced by the Thai Customs because of the increasing volume of international trade and limited number of officers, Customs implemented the Electronic Data Interchange (EDI) to control all Customs commercial operations. The system has been fully implemented at the seaports and airports nationwide. Thai Customs uses ICT to support its administration and business needs in two major areas: service delivery to importers and exporters; and office automation. The automation of Customs service delivery to importers/exporters and related operators include the following main application areas: goods declaration processing; cargo processing; revenue collection; tax and duty drawback; collection of trade statistics; and risk management profiles.
An office automation system, on the other hand, is designed to increase the productivity of Customs administration by supporting the coordinating and communicating activities of Customs offices. The main application areas of office automation system include Legislation System and Human Resources System.
Similarly, Thai Customs also plans to establish a "Single Inspection" between and among six Customs Administrations of which their border Customs offices are located along the borders of Thailand, with the key objective of facilitating cross border transport of goods and people. The "Single Inspection" allows importers/exporters to exchange information with a single authority to fulfil all, import or export related, regulatory requirements. It also enables Customs of neighbouring countries to carry out inspection simultaneously or instantaneously at the border on a site that is located in the territory of either country.
Based on the One Stop Service system, the "Single Window" system will be developed and implemented. Importers/exporters involved in cross border trade, then, will be able to submit electronic declarations via the Internet to various controlling authorities for processing and approval in a single application. By expediting and simplifying information flows between trade and government, single window brings substantial gains to all parties involved in cross border trade, and thus strengthen national competitiveness. [4]
European Commission considers that, with simplified customs legislation, streamlined customs processes and procedures and convergence of IT systems, traders would save money and time in their business transactions with customs. This would enhance the competitiveness of European businesses and thereby advance the main goals of the EU strategy for growth and jobs. In addition, these changes would improve safety and security checks, which would benefit all citizens.
The first step to the EU-wide electronic exchange of customs declarations was established with New Computerised Transit System started in 1997. As a contribution to the "e-government" programme, in July 2003, the Commission published its communication on a paperless environment for customs and trade which provided a vision of a modern customs service communicating electronically with trade. This vision was endorsed by the Council Resolution of December 5, 2003 which called for a Multi-Annual Strategic Plan for the creation of a European electronic environment, consistent with the operational and legislative projects and developments already scheduled or underway in the areas of customs and indirect taxation.
Subsequently, the Commission drafted a plan which sets down the vision, objectives, the strategic framework and the milestones to implement the electronic customs initiative. [5]
The Federal Customs Service of the Russian Federation is constantly evolving and modernising. Today, the organisation's regulatory framework has been brought closer into line with international standards. The procedure for exercising governmental control at state border crossings has been refined. The customs authorities have been equipped with technical tools that allow for considerable time savings in the performance of customs procedures. [2,p.68]
Customs operations can be committed with the use of information systems and information technologies, including those based on electronic means of communication, as well as their means of support.
The introduction of information systems and information technology is carried out in accordance with relevant international standards and ensure information security requirements established by the legislation of the Member States of the customs union.
For the purposes of cooperation between the customs authorities at the customs territory of the customs union are integrated information systems and information technology.
In the customs sphere IT is understood as being:
■ the preliminary notification of the customs authorities on the arrival of goods and vehicles before they cross the customs border (the "preliminary declaration");
■ the declaring of goods by means of filing a declaration in electronic form and the submission (during customs clearance) of documents confirming the data stated in the declaration in the electronic form.
Integration of advanced customs IT systems made it possible to issue customs declarations in electronic form. The development of electronic-declaration technology has paved the way for the utilization of remote customs-clearance technology, whose main principle is the division of customs operations into the documentary- and physical-control processes conducted by various customs authorities. The technology involved in the notification of customs authorities on goods and transportation equipment prior to their physical crossing of the customs border, which was expanded in 2011, will allow for the significant acceleration of customs-clearance processes at border crossings, reduction of lines at the border, and minimisation of the costs incurred by honest FEA participants.
The FCS Russia "Electronic Filing" portal has emerged as the most convenient means for the filing of preliminary information and transit declarations by FEA participants.
Filing electronic declarations has a number of advantages: the declaration is swiftly dispatched and swiftly processed; completing the declaration is simple and efficient; filing electronic declarations saves time; when filing electronic declarations, various data can be recorded more easily and can be checked more efficiently in retrospect. [5]
Generally, it is very important to work further on IT and promptly respond to the problems that arise in the course of the practical use of the technology so that the system at the Russian customs administration could be of a global level and could encourage the growth of foreign trade turnover. [1, p.100-102]
The increase in the efficiency of foreign trade activities is directly dependant on the IT being used at the customs administration.
The maximum automation of the technical processes of the declaring of goods will help to combine the interests of the declarants and those of the customs authorities, as the latter will be able to devote more time to checking documents and data provided by the declarant beforehand, which will reduce the time of customs controls at the border.
The introduction of state-of-the-art technology and the re-equipment of customs offices is a progressive step at the modern stage of the customs system development. All innovations, however, should be brought to perfection prior to being put in practice, as any faults influence foreign trade and parties to foreign trade and entail losses.
References:
- Elena Andreichikova - Deputy Director Media Relations Department Public Affairs Administration Federal Customs Service, « IT in Customs Administration», Navigating through the Russian customs 1/2012, p.100-102.
- Elena Anisimova - Associate, Foreign Trade Regulation, DLA Piper, «Federal Customs Service in 2011: facts and figures», Navigating through the Russian customs 1/2012, p.68-73.
- Peter Ferdinand Drucker (1999): Management Challenges for 21st Century
- Sathit Limpongpan, Customs Reforms and Modernization «Strategy and Experience of Thai Customs» Governance, Finance and Trade Division East and Central Asia Department Asian Development Bank December 2005.
- http://ec.europa.eu/taxation_customs/customs/policy_issues/electronic_customs_initiative/index_en.htm, European Commission