Globalization and the increasing pressure on customs

Blog: Globalisering en de toenemende druk op de douane | Boltrics

Globalization and the increasing pressure on customs

Marco Polo, Christoffel Columbus and Abel Tasman. Three big explorers, who centuries ago set the first steps towards the world we all know now. Namely, the world in which you can chat, Facetime or send complete documents to a relative on the other side of the world in just a few milliseconds. Or the world in which we can take a nap miles high in the sky and then wake up in a completely different culture afterwards. This is what we call ‘going on vacation’ nowadays. But also the world in which worldwide customs institutions need to process more declarations, due to the fact that we can easily buy cheap products from China. Centuries ago, the three explorers were the first ones to make a step towards globalization. Are you the modern pioneer that is ahead of the fast moving developments? Or are you unable to compete with the current big players?

Globalization is an ongoing process

So, the globalization process is not a thing from the recent past. Instead, it is going on for a long period of time. Besides it is an ongoing process that gets boosted by new developments. Here you do not only have to think about technological developments, but also political and cultural shifts. Because of these progresses, barriers get blown over and distances get shortened. This is why you can – since the introduction of free transportation of people and goods within Europe – drive from any EU country to the south of France. Or, for example, listen to your favorite U.S. artist on a Dutch radio station in your German car. And thus, since the upswing of e-commerce, easily order cheap or exclusive products from abroad. And receive these at your doorstep a few days later.

 

Design customs procedures in 3PL Dynamics

Many Freight Forwarders, Warehousing and Transportation companies use 3PL Dynamics, and more than a few for its customs functionalities. Hereby they limit the use of multiple systems, so unnecessary activities belong to the past. By this efficiency boost they work smarter, faster and more customer orientated.

 

Customs work overtime since e-commerce

Because of these technological development (internet and in a later stadium e-commerce), it is possible for everyone to get foreign products. In fact, it is done with only one mouse click. This puts pressure on customs in many countries, because they face the challenging task to filter suspected packages from a fast growing stream of goods. Still, they have the important task to intercept illegal and dangerous goods. And this needs to be done without slowing down the logistics processes. Especially in e-commerce, time is money and delay matches unhappy customers. This is why, for example, Dutch customs invest in modern technologies such as high-value scan hardware.

De-globalization puts also pressure on customs

Globalization may be viewed as people, borders an ideologies getting closer. Nevertheless, global economics and trade are often central when discussing the topic. And especially now the world economy shows a counter movement. “Technological we are capable to fly to Mars, but ideologically we are building walls again.” Think about trade wars between world-powers, protectionism, and most definitely about the Brexit. Because of the latter, worries for European customs rise each day. Concluding, customs institutions experience pressure because of international trade, politics and technological developments. What can you, as a logistics service provider and thus a relation of customs, do to facilitate their duties?

The collaboration between logistics service providers and customs

As a logistics service provider with international clients, you have to deal with customs on a regular basis. And just as in every other relationship, it is wisely to maintain it. Keep customs happy. For example, by always doing the right declarations. Or by classifying your products in the correct way. Possibly the right customs software, including far-reaching EDI-possibilities, helps you get through the day. Being the customs-pioneer is the only way to stay the trustworthy e-fulfilment partner for international web shops.

Posted by
Luc Ligtenbelt