Customs Administrations Feel $queeze

(American Shipper – Chris Gillis)

With the decrease in global trade, customs administrations worldwide are collecting less import taxes and fees from shippers.

“We see a deteriorating market for trade finance; declining exports/imports for some countries; projections that aggregate international trade will decline; and customs administrations under pressure to continue to meet revenue forecasts despite the current conditions,” the Brussels-based World Customs Organization concluded in a statement from its December 9-11 Policy Commission in Buenos Aires. The WCO said its 172 member administrations reported a “slight decrease” in revenue collected in November.

The organization is most concerned that the global economic meltdown could lead to “a possible new wave of protectionism that would exacerbate rather than alleviate the crisis.” Many developing countries, in particular, rely on the revenue collected from trade to finance government programs. “Revenue collection can be harmed by commercial fraud and in a financial crisis there is a heightened risk of tax avoidance,” the WCO said. “Accordingly, customs should ensure that revenue collection, trade facilitation, and commercial fraud are addressed during the crisis.” Read more here.