Customs Modernization Project

A customs modernization project, aimed at reducing corruption, needs a holistic approach that combines technical, policy, and capacity-building elements. In this case, it is an integration of three interrelated components: (i) IT infrastructure, (ii) laws and procedures, and (iii) coordination among concerned agencies. The IT infrastructure is important in reducing direct, face-to-face interactions that provide opportunities for corruption. Customs laws and procedures, in line with international standards, could provide the institutional framework for a modernized business environment. Likewise, close cooperation is needed among government agencies involved in examining and issuing licenses, in terms of aligning and lessening differences in cross border procedures and systems. One component could not be tackled without the other components. For instance, the provision of IT infrastructure alone would not be sufficient to improve the MCGA’s business processes and procedures. Reforms of customs laws and operational regulations should be established initially so that other related components can ensure their implementation. Moreover, trade facilitation and customs modernization is not the responsibility of the MCGA alone. Close collaboration with other stakeholders is essential to address constraints to trade.