Customs Administration: Objectives, Process and Importance
Customs Administration: The administration is divided into different branches and today I will talk to you about one that has borders, ports and airports as its field of application.
If you have a company or you are going to undertake and you need to import or export, this article will be very useful for you. I will explain the general aspects of the administrative process in customs.
Can you imagine the amount of illicit merchandise that can enter the country and harm the population? Well, customs management helps control this.
To guide you on the subject, I present the following points.
- What is the Customs Administration?
- Objectives of the Customs Administration.
- Duties of the Customs Administrator.
- Customs Management processes.
- Importance of the Customs Administration.
What is the Customs Administration?
Customs is key to the development of any nation, especially in foreign trade.
The Customs Administration, or customs administration, is the process by which the entry and exit of merchandise are planned, organized and controlled, to provide security to the population.
When speaking of security, I mean that it avoids the commercialization of illicit merchandise, which can threaten the integrity of the population.
This activity is carried out by the State.
For this, it establishes certain places where it will carry out the entire customs process.
Generally, it is on coasts, ports, airports and borders; that is, in places where products can enter and exit,
Effective customs management improves trade relations, regulates the traffic of goods and is one of the main tax sources.
The Customs Administration consists of the introduction and export of elements, keeping track of the state of said products so that it is in good sanitary conditions.
The challenge of this management is to optimize the entire import and export process at customs.
For this, an attractive collection planning must be carried out, based on the country’s laws and that promotes healthy and safe commerce.
Customs Administration Objectives
Customs management avoids the illegal traffic of merchandise.
- Ensure compliance with the laws that regulate customs, providing security to the country against illicit traffic.
- Facilitate trade using technology in each of the customs processes.
- Generate, update and disseminate the customs process regulations. In this way, they facilitate compliance for companies that participate in foreign trade
- Generate relevant information for decision-making in domestic and foreign trade.
- Strengthen national security through transparent management that prevents illegal merchandise trafficking.
- Improve the effectiveness of the audit. To do this, it must simplify, automate and modernize processes.
Duties of the Customs Administrator
Customs cannot meet its objectives if it does not manage processes effectively.
For this reason, there is a need to have a person in charge who is in charge of the core elements.
The customs administrator is the person who is in charge of planning, organizing, controlling and supervising the processes at customs.
For this, it uses technological and technical resources and has a trained work team to perform the functions:
- Carry out the planning of the tax collection system according to the reality of the environment.
- Protect the environment by avoiding the traffic of toxic substances.
- Control the entry and exit of merchandise and capital both nationally and internationally.
- Prevent the trafficking of illicit substances.
- Make the statistics of foreign trade.
- Avoid money laundering and tax fraud by adhering to the law and restrictions.
- Design, implement and advise on legislation, supervision, verification, tariffs, procedures and, in general, on everything related to foreign trade.
Customs Management Processes
Customs management develops several processes, but today I describe the fundamental ones.
It is the process of verifying compliance with the rules and procedures that govern the import and export of merchandise.
For example, it should be clear:
- The origin and destination of the merchandise.
- The description of the merchandise, including its weight and volume.
- The means of transportation to your destination.
- The price paid (invoices).
It is here where taxes are collected on foreign trade.
The taxes are the revenues from the entry or exit of goods at customs. These revenues are part of the economic policy of the State.
In this sense, taxes are calculated in two ways:
- By percentage of the transaction value.
- For the amount assigned, for example, 10 euros for every 100 kg.
Then, the taxes are set by the State or by a community with this function. For example, the Customs Union in the European Community.
These taxes are controlled through tax management, which is closely related to customs.
Prohibition and restriction:
It is where restrictions or conditions are applied to commercial transactions.
This type of process allows limiting the entry or exit of merchandise to the country.
The technical or administrative rules can be elaborated by the State or by special organs.
These decisions to ban trade in certain goods in their entirety enable collective objectives to be achieved.
These are all activities that are carried out to ensure that customs regulations are met.
This process monitors the revenue collected.
Importance of the Customs Administration
Customs allow consolidating the country’s economy since they promote good commercial relations.
Good customs management will be a source of income for the taxes it collects.
In this sense, the customs administration facilitates and streamlines the country’s import and export operations.
Similarly, it will allow, through situational analysis, to eliminate bureaucratic procedures and simplify procedures.
Good management will not only collect taxes but will also be a guarantee of responsibility and national security.
Can you imagine the amount of illegal and dangerous materials on the street? How would you feel if they let any type of merchandise pass into the country?
Hence the importance of having professionals trained in the management of customs and in the protection of the interests of the State.
For this reason, customs administrators will be a source of guarantee that merchandise does not enter the country that could threaten its comprehensive well-being.
The Customs Administration is the discipline whose function is to manage all the processes that are carried out at customs.
In this sense, it plans, organizes, controls and controls resources in order to improve the country’s commerce and economy.
It also contributes to the safety of the population by regulating the type of goods entering the country.
Although it is a function of the State, companies that wish to import or export must know the Customs Administration process.
I hope this information has been useful to you. Check out other articles below:
- What Is the Financial Leverage Ratio?
- Banking Administration: Importance, Objectives and Functions
- Risk Management: Functions, Process, Objectives and Importance
Thanks for reading this article on Customs Administration.