More specifically, the theoretical and practical dimensions of the Customs-Business Partnership (CBP) are studied within the broader context of administrative reforms and customs modernization since the 1990s in Chinese Customs and Thai Customs. As an emerging trend, Customs has embraced customs-industry partnerships as a potential new form of trade regulation and enforcement.
APEC Asia-Pacific Economic Cooperation ASEAN Association of Southeast Asian Nations ATF The WTO Trade Facilitation Agreement. RKC International Convention on the Simplification and Harmonization of Customs Procedures/The Revised Kyoto Convention.
INTRODUCTION
- Background
- Statement of the Problem
- Research Objectives and Questions
- Research Objectives
- Research Questions
- Significance of the Study
- Significance in Theoretical Aspects
- Significance for Policy and Operations
- Scope of the Study
- Definitions of Technical Terms
- Organization of the Study
It has been described as "the largest capacity building activity in the history of the WCO". The background on the evolving role of Customs and the paradigm shift in the Customs-business relationship is reviewed and the research problem is presented.
LITERATURE REVIEW
Inter-Organizational Relationships
- Fundamentals of “Partnership”
- Inter-Organizational (IORs) Studies and Implications
- Formation of IORs: Theoretical Models
- Determinants of IOR Performance
It can be assumed that there is an exchange of resources in the interactions between Customs and business. Therefore, there is a theoretical gap in understanding the collaborative transactions, flows and linkages between Customs and business in a regulatory environment.
Public-Private Partnerships
- What: Definitions and Typologies of PPPs
- Why: Motives, Purposes and Problems of PPPs
- How: Life-Cycles of PPPs
- Summary of the Literature Review on Partnerships and PPPs The above review on partnerships and PPPs specifically indicates that PPPs
One of the main motivations for CBP as Customs wants to achieve higher trade compliance through cooperation with the private sector. For this research, the researcher will focus on the design and implementation stages of CBP.
Administrative Reform
Another meaning of Osborne's characterization is that it absorbs the concept of the organization as a system. Accepted as core values in the operation of the partnership: partners must continuously look for innovative ways to improve performance according to this principle.
Customs Compliance Management
Although Widdowson's model does not explicitly mention customs-business partnership arrangements, the escalating measures applied to compliant and non-compliant traders reflect the urgency and reality that customs must face on a daily basis. Widdowson's models form the basis for further exploration in this study as Widdowson focuses on how to apply risk management in.
Customs-Business Partnership
- Brief on Customs .1 Role of Customs
- Customs-Business Relationship .1 Old and Contemporary Models
- Practical Development of the CBP
- CBP in Academic Studies .1 Literature in English
As a global center of customs expertise, the WCO rightly calls itself “the voice of the international customs community” (WCO, 2014b). One of the critical areas where the WTO and WCO need to work together is to improve trade facilitation. The theme of the relationship between customs and business has drawn the attention of leading scholars in the customs field.
Conceptualization of the Customs-Business Partnership
In the practical world, the arrangements in the customs business partnership can be seen as a spectrum. In this respect, the Customs and Business Partnership could be seen as an evolving phenomenon. The concept and practice of the customs business partnership is evolving within the broad context of customs modernization and administrative reform.
An Initial Outline for the Study
- Need for an Broad Outline
- Two Existing Frameworks
- An Initial Outline for Understanding the CBP
More specifically, considering the nature of the research questions, the researcher mainly refers to the important work of the two researchers as follows. Further, based on the elements identified in the analytical framework by Bryson et al., the researcher will examine the environmental circumstances that cause the emergence of BKP. The research in this part of this study tries to answer the second research question: "Which factors or elements are important in the formation and implementation of the customs-business partnership."
Chapter Summary
It was assumed that BKP not only has an impact on participating organizations, but also produces results to meet social objectives. Since BKP is envisaged to create favorable results for both participating parties, be it Customs or business. However, systematic and comprehensive investigation of BKP as an emerging and critical phenomenon in Customs governance has rarely been done.
RESEARCH METHODOLOGY
- Introduction
- Research Type
- Case Study Method
- Data Collection
- Interviews
- Document Study
- Observations
- Setting and Sampling
- Locating the Sites
- Sampling for Interviews
- Unit of Analysis
- Data Analysis
- Protocol and Ethical Issues
- Limitations and Delimitations
- Chapter Summary
However, due to language skills and cultural understanding, the researcher has expected that the data collection in Thai customs may be weaker than in China's customs. The researcher has remained immersed in the collected data throughout the entire process from data collection to drafting the thesis. For this purpose, before the interviews, the researcher would explain the meaning of the study to the concerned high-ranking officials with China Customs and Thai Customs, common language of customs was used.
CUSTOMS-BUSINESS PARTNERSHIP IN CHINA CUSTOMS
Brief Background of China Customs
According to Sparrow (2000) and Widdowson (2003), China Customs can be seen as a typical regulatory and government enforcement agency. In this sense, Chinese Customs is one of the few customs administrations in the world that has ministerial-level status in the government organizational structure. Coupled with the latest 'fundamental principles', GACC's Leading Board further promotes the general requirements for customs to 'ensure the national gateway, provide quality service, prevent potential risks and build a reliable team' (China Customs, 2012), and in China Customs this requirement is usually called Sihao (four good strategies), which is promoted by the current leaders of China Customs.
Evolution of Customs-Business Relationship
- Customs-Business Relationship in Legal Terms
- Evolution of the Customs-Business Relationship
- The CBP Arrangements
In a formal sense, China Customs adopted the principle of customs-business partnership in 2005, when the WCO launched the SAFE Framework. As an integral part of the customs-business partnership, China Customs established "Categorized Management for Enterprises (CME)" in the late 1980s, when China Customs began to implement the principles of risk management. As defined in the CME Rule, enterprises under Class AA are treated as OAE companies by China Customs.
Drivers for the Implementation of the CBP
- Contextual Factors
- Sector Failures
- Policy Transfer
It treats citizens as the owners of the state and the legitimate source of public authority. The most direct impact of the WCO can be attributed to the diagnostic mission to China Customs under the Columbus23 program. Among all bilateral agreements on customs cooperation, Dutch customs had the greatest impact on the course of China's customs modernization.
Factors in Implementing the Customs-Business Partnership
- Process Factors
- Structural Factors .1 Goal Alignment
Regarding the role of communication in BKP, the focus is on media, content and levels for this study. Customs efforts were subsequently hailed by the media and the public as "sunshine on a national gate". In 2005, China Customs adopted the People's Republic of China Customs Interim Measures on the Opening of Customs Matters (hereinafter referred to as the Interim Measures) in order to further improve the disclosure of customs information in a wider area. and in a more sustainable way. However, the business believes that customs sets the scope of "executive secrecy" in a somewhat arbitrary manner.
Barriers and Challenges for the CBP
- Power Imbalance
- Compliance Culture
- Customs Integrity
- Fragmentation of Policy
The main reasons for this compliance culture are: first, the market economy has not yet matured and the credit management system covering all individuals and entities is still in its early stages; secondly, a long tradition of “guanxi”. special connection) still plays a role in many aspects of society. From CBP's perspective, corruption clearly violates the rationale and principle of a mutually beneficial relationship. Despite the “Integrated Clearance Program” and “China E-port”, there is a great distance from the requirements under the principle of coordinated border management promoted by the WCO.
Outcomes of the CBP
- Organizational Outcomes
- Social Outcomes
As China is increasingly merged into globalization, CBP as a public policy not only brings tangible benefits to the domestic market, but also provides extended ones. Although numerical statistics are not consolidated on how CBP contributes to national competitiveness in the international arena, qualitative data shows positive evidence for the case of China Customs. The initiation and implementation of CBP can serve as a pilot and a model for engaging citizens (individuals and businesses) in public administration, especially between regulatory agencies and regulatory authorities.
Chapter Summary
China Customs is recognized by the Chinese central government and the public as one of the leading agencies in reform and administration.
CUSTOMS-BUSINESS PARTNERHIP IN THAI CUSTOMS
Brief Background of Thai Customs
- History and Organizational Structure
- Responsibilities and Strategic Components .1 Main Responsibilities of Thai Customs
Within the organizational structure of the Thai government, Thai Customs is in the portfolio of the Ministry of Finance. In terms of human resource management, Thai Customs is part of the Thai Civil Service. Although Thai Customs is in the portfolio of the Ministry of Finance, revenue collection is not seen as one of the top priorities.
CBP Arrangements and Mechanisms
- Information Sharing
- Consultation Mechanisms
- MOUs between Customs and Business
- Compliance and AEO Programs
From October 2013, this program was gradually incorporated into the OAE program designed by Thai Customs. As with the Licensed Customs Brokerage Scheme, the Gold Card Scheme was merged into the OAE program in October 2013 at Thai Customs. Thai Customs is committed to implementing the WCO SAFE Standards Framework in 2005 and a national OAE program has been developed based on WCO standards and guidelines since 2007.
Drivers for Customs-Business Partnership
- Broader Administrative Reform in Thailand .1 Multiple Interpretation of Governance
- Sector Failure
- Pol.icy Transfer
As an active member of the WCO, Thai Customs has adopted and implemented the most important international standards and tools provided by the WCO. Unfortunately, Thai Customs is still not a signatory to the Revised Kyoto Convention, due to political unrest in recent years. Nevertheless, Thai Customs has actually incorporated all the principles of the RKC into its customs-related laws and regulations.
Factors in Implementing the Customs-Business Partnership
- Process Factors
- Structural Factors .1 Goal Alignment
In this spirit, Thai Customs has initiated several projects to promote understanding and cooperation between customs and the business community. Thai customs is therefore considering MRA negotiations with other customs administrations. Computer techniques are increasingly used by Thai customs to support a wide range of customs operations.
Challenges in Implementing the CBP
- Power Imbalance
- Compliance Culture
- Integrity Issues
As the researcher curiously consulted Thai Customs officers working at the AP ROCB, their response was as follows: "It is a routine practice in Thai society and is acceptable to government officials and business people." As the nature of customs work dictates, potential risks for integrity issues still exist at Thai Customs. With social ills and an undesirable culture of compliance, Thai Customs still faces great challenges in building a clean and fair customs, as this lays a solid foundation for the development of BKP.
Outcomes of the CBP
- Organizational Outcomes
- Social Outcomes
As an indicator, surveys on the performance of government agencies conducted by the OPDC showed that the public highly valued the performance of Thai Customs in light of the components of good governance. More importantly, the deep interconnection with the business community, through consultation mechanisms and validation processes under the AEO program, provides Thai Customs with valuable opportunities to understand the business of the business community. To address these complex issues, Thai Customs understands that better results can be achieved through collaboration and partnership with broader stakeholders, with the business community being the key players.
Chapter Summary
DISCUSSION AND CONCLUSION
Summary and Discussion of Findings
- Customs-Business Partnership as the New Governance .1 Evolution of the Customs-Business Relationship
- Research Questions Revisited
The theme of CBP can be understood in different forms of governance that are developing in Thailand. Customs must be aware of this internal tension if CBP is to be sustained. With this mindset, the researcher found that the CBP arrangements in both countries can be placed on one.
Contributions and Implications
- Theoretical Implications and Contributions .1 IORs
- Implications for Policy and Operations
Both China Customs and Thai Customs have applied risk management to their overall operations and have integrated BKP agreements into their risk management regime. Second, from a contingent perspective, policy makers must understand that alignment must be achieved between the conditions and factors identified in the construction of the BKP. The promotion of BKP never means to compromise the implementation of Customs or simply to provide spoken services to the business.
Limitations of the Study
In the areas of trade regulation and border management, customs is just one agency in the policy network, and the business community views all government agencies as one. Firstly, communication channels can be further improved; innovative methods can be leveraged with the development of technology, such as tracking technology used in the express industry. Second, assistance to companies to strengthen their internal systems to meet customs requirements should be extended to more business partners.
