Customs –Business Partnership in China – challenges and possible solutions

Abstract

Customs-business partnership is a relationship between the customs and business community to maximize the long-term interests by cooperative means. It seeks to reduce trade transaction costs at the interface between customs and business and is an agenda item within many customs related activities. These include WCO SAFE Framework, supply chain security initiatives, as well as many customs modernisation programs. Although China has introduce AEO concept into its national legislation in order to implement a new model of enterprise-based customs control and simplify the customs procedures, the implementation is fraught with challenges and difficulties. These can be associated with the traditional idea of law enforcement, conflicting interests and lack of knowledge. In order to construct a modern and clientoriented customs system, we must realize that only through partnerships can the twin goals of customs control in the collection of government revenue and the supply chain security as well as trade facilitation be adequately achieved. Such mutuality has to be bear in mind when envisioning the future relationship between customs and the business community.