Airports Authority Custom Essay

A flexible approach to improving compliance:

You have just been appointed to the newly created position of National Manager Compliance in the Customs Department of the developing island country of Belmontia.
Duty and VAT/GST collected by Customs on imported goods amounts to approximately 60% of the government’s total revenue.
In addition to ensuring that the correct amount of revenue is collected, Customs has responsibility for protecting the community by ensuring that prohibited items do not enter the country and that the necessary permits and licenses have been obtained for certain goods.
Although no revenue is levied on exports Customs does have a responsibility to ensure that relevant permits or licenses have been obtained when required for the export of particular goods and that goods which are prohibited exports, are not exported.
Belmontia is resource rich and having emerged from a period of political instability is now on the verge of a period of rapid economic growth.
It is quickly emerging as a major trading nation within its geographic region. In addition to five international ports Belmontia has two international airports.
During your first meeting with the Director General (DG) of Customs he/she tells you that there is pressure from the Finance Minister to ensure that revenue targets are met and that the Trade Minister is also concerned about complaints from traders over the time taken to clear imported goods, due mainly to the high level of intervention by Customs (documentation must be submitted in support of all import declarations and more than 50% of cargo is inspected).
Improved facilitation of trade has also been identified as a key pre-condition by a donor providing funding for a major infrastructure project.
Recent media attention has highlighted an increase in the availability of prohibited imports in Belmontia.
This and a recent independent survey commissioned by a reputable international organization which revealed high levels of non-compliance by traders has put pressure on the government to take action to improve Custom’s compliance management.
Your first task as National Manager Compliance is to provide a report to your DG proposing a new and effective approach to regulatory compliance management for Belmontia Customs.
You should explain which aspects of this approach deal with the specific problems faced by Belmontia Customs and how/why they would be effective.
Your proposal should identify and incorporate international trends and standards relating to compliance management.