An applied case of customs compliance and trade facilitation in Brazil: “Blue Line” – diagnosis and challenges

Abstract

The main points of this paper were presented at the first Global Conference of the International Network of Customs Universities on May 21-23, 2014 in Baku, the Azerbaijan Republic. This study seeks to analyze a Brazilian customs procedure, in line with trade facilitation strategy, and closely following customs control security standards. Express Customs Clearance is the customs compliance program, also known as “Blue Line”. Blue Line started in the airport of Viracopos (Campinas/Sao Paulo, Brazil), in 1998, as a result of a partnership between customs, Infraero (airport trustee), importers, airlines, and cargo agents seeking to facilitate the movement of goods. As certified Blue Line companies represent a significant percentage of Brazilian imports and exports, each certified company substantially reduces the number of selections for red and yellow channels. This, in turn, allows customs workers more time for activities with higher risk levels. The methodology is based on qualitative and quantitative data collected through field research (survey type). The data collection method was a questionnaire structured with open and closed questions, related to Blue Line. A total of 46 companies are certified in Blue Line in Brazil, from which 25 of them are associated companies of AER. Thirteen (13) companies participated of such field research (return rate of 52%), in the months of March and April 2013. The results of the applied research showed that the most frequent users of Blue Line are machinery and equipment industries mostly located in the state of Sao Paulo. The use of Blue Line has accelerated customs clearance and reduced supply chain costs. However, difficulties in customs regulatory and procedural framework of foreign trade and trade facilitation could be identified in our research. The resolution of these flaws will improve customs control mechanisms and broaden the base of Blue Line certified companies.