Customs Administration to Facilitate Foreign Trade

 

The administration is divided into different branches and today I will tell you about one whose field of application is borders, ports and airports. It is about the Customs Administration.

If you have a company or are going to start and need to import or export, this article will be very useful. I will explain general aspects about the administrative process in customs.

Can you imagine the amount of illicit merchandise that can enter the country and harm the population? Well, customs management helps to control this.

What is the Customs Administration?

Customs are key to the development of any nation, especially in foreign trade.

The Customs Administration, or customs administration, is the process by which the entrances and exits of merchandise are planned, organized and controlled, to provide security to the population.

When I speak of security, I mean that it avoids the commercialization of illicit merchandise, which can undermine the integrity of the population.

This activity is carried out by the State.

For this, it sets certain places where it will carry out the entire customs process.

In general, it is on coasts, ports, airports and borders; that is, in places where products can enter and leave,

An effective customs management improves commercial relations, regulates the traffic of goods and is one of the main sources of taxation.

The challenge of this management is to optimize the entire import and export process at customs.

For this, an attractive collection planning must be carried out, based on the laws of the country and that promotes a healthy and safe trade.

Objectives of the Customs Administration

·         Ensure compliance with the laws that regulate customs, providing security to the country against illicit traffic.

·         Facilitate trade by making use of technology in each of the customs processes.

·         Generate, update and disseminate the rules of the customs process. In this way, they facilitate compliance for companies that participate in foreign trade.

·         Generate relevant information for decision-making in domestic and foreign trade.

·         Strengthen national security through transparent management that prevents illegal merchandise trafficking.

·         Improve the effectiveness of inspection. To do this, it must simplify, automate and modernize processes.

Duties of the Customs Administrator

Customs cannot meet its objectives if it does not manage processes effectively.

For this reason, there is a need to have a person in charge of the core elements.

The customs administrator is the person in charge of planning, organizing, controlling and supervising customs processes.

For this it makes use of technological and technical resources and has a work team trained to perform the functions:

Carry out the planning of the tax collection system according to the reality of the environment.

Protect the environment by avoiding the trafficking of toxic substances.

Control the entry and exit of merchandise and capital both nationally and internationally.

Prevent the trafficking of illicit substances.

Carry out foreign trade statistics.

Avoid money laundering and tax fraud by adhering to the law and restrictions.

Design, implement and advise on legislation, supervision, verification, tariffs, procedures and, in general, on everything related to foreign trade.

Processes in Customs Management

Customs management develops several processes but today I will describe the fundamental ones.

Inspection:

It is the process of verifying compliance with the rules and procedures that govern the import and export of merchandise.

For example, it should be clear:

·         The origin and destination of the merchandise.

·         The description of the merchandise, including its weight and volume.

·         The means of transport to their destination.

·         Price paid (invoices).

It is here where the taxes to the foreign trade are collected.

Taxes are the income that comes from the entry or exit of merchandise at customs. These revenues are part of the economic policy of the State.

In this sense, taxes are calculated in two ways:

·         By percentage of the value of the transaction.

·         For the assigned amount, for example, 10 euros for every 100 kg.

Then, the taxes are set by the State or by a community with this function. For example, the Customs Union in the European Community.