Efficient and well-functioning international supply chains are something most of us take for granted. The diversity of goods available in many markets, access to lower prices and the economic strength that results from jobs created by export-leaning companies have become a broadening feature of modernity.
We have, however, had recent experiences that remind us that these movements of goods are not guaranteed. The Covid-19 pandemic and localised conflicts likely immediately come to mind as reasons for supply chain disruption, and provide a clear view of the negative economic effects that result. I suggest, however, that although these things are fresh in memory, they do not indicate the full range of challenges to the effective functioning of global supply chains.
For many years, customs has understood that secure supply chains are foundational to successful international trade. Customs exists in part to ensure that distinctions are made between what should move across borders and what should not. Its procedures and information requirements are designed to create greater visibility of what is in supply chains and to identify risks so that legitimate commerce can flow unimpeded. This work by customs contributes to our being able to take for granted certain levels of variety and goods available to consumers, and certain levels of efficiency and cost effectiveness for the private sector.
Trade, security and trust: the vital role of customs
Effective, efficient and modern customs is necessary for the proper functioning of international supply chains. In a time of increasing trade volumes, growing trade complexity and vulnerability to sophisticated parties seeking to misuse supply chains, customs’ efforts are more important than ever. Customs fights the infiltration of supply chains by dangerous items including drugs and weapons, works to foil opportunities for tampering with commodities and uses its information to understand risks to the system – so that interventions can be targeted and useful.
The confidence in the system that is bolstered by these actions is customs’ contribution to security and economic prosperity. This is an idea captured in the World Customs Organization’s theme this year: customs protecting society through vigilance and commitment.
To fulfil its mission in today’s demanding and dynamic trade environment, customs relies on modern processes, technology, electronic data, sound analytical capabilities, well-trained staff and alliances with others interested in supply chain integrity. This list coincides with what the WCO helps its 187 members to achieve.
The WCO defines standards for processes, data and supporting technologies. It recommends methods for analysing risk, realising effective cooperation between customs and other government agencies, and establishing greater trust with the trade community based on a sense of shared responsibility. It also helps build specific capabilities within the global customs workforce with a view to instilling approaches that are more self-sustaining.
Building resilient global systems
The WCO’s members support one another to strengthen customs operations. Each has expertise and experience to contribute, and the WCO weaves these into practical and effective solutions to strengthen the global supply chains on which we all rely. I am proud to lead an organisation committed to developing the tools and guidance that enable improvements in how trade operates everywhere every day.
That said, realising the goal of modern, efficient and consistent customs everywhere is not something the WCO can bring into being alone. Nor is it something individual customs administrations can achieve in isolation. Cooperation and support from governments, the private sector and others are vital. Investments in technology and human capital are a must. Meaningful partnerships between customs, supply chain actors and other agencies with border responsibilities are essential.
G7 leaders can advance the integrity of global supply chains by recognising the importance of customs, by advocating for the innovation and related resource mobilisation that can enable customs to implement high standards and proven practices, and by making customs–private sector partnerships a cornerstone of economic policy.
In Évian, as G7 leaders consider how to address global economic and security challenges and chart positive ways forward, I ask them to remember the importance of well-functioning supply chains and customs’ role in protecting them. I ask that they help customs modernise and succeed – for the betterment of our economies and the safety of our people.
