Although global supply chains are recovering as we emerge from the COVID-19 pandemic, we nevertheless face major challenges in 2022 following the war in Ukraine. These challenges include high inflation rates worldwide, food shortages, and the energy crisis that may persist into the coming year and could have a long-term impact on various global supply chain stakeholders.
Against this backdrop, governments are making efforts to reinvigorate global supply chains. Customs administrations around the world are playing a key role to that end.
Among the endeavors by the international customs community, supported by the World Customs Organization (WCO) in its capacity as the global center of customs expertise, the following issues are worth mentioning:
Building an international customs data ecosystem: The WCO has been focusing on how best to collect and analyze data, thereby helping its members improve their risk management and offer evidence-based advice to governments and business. To scale up digital transformation, the WCO adopted a data strategy to facilitate data sharing; create communities of practitioners among data analysts; and assist members in embracing a data culture. As a result, the WCO aims to build a customs data ecosystem, connecting all stakeholders.
Implementing the WCO E-Commerce Package: Faced with the exponential growth of e-commerce, the WCO has developed the Cross-border E-commerce Framework of Standards (FoS) to enable customs to facilitate and secure e-commerce supply chains. The central element is ensuring timely access to accurate data from e-commerce actors to help customs manage risks in the revenue, health, safety, and security domains. Members are conducting pilot projects on FoS implementation and the outcomes thereof are reflected through regular updates of the Compendium of Case Studies on E-Commerce.
Exploring “Green Customs”: The WCO is studying the role that can be played by customs in reducing the carbon footprint of trade, controlling the movement of waste and other environmentally hazardous goods, and contributing to the transition to a circular economy. To this effect, it has launched a series of initiatives, including research on the circular economy and the organization of the Green Customs Global Conference and the Symposia on “Visualising a Greener Harmonized System (HS)”, to which business representatives and other stakeholders are invited.
These issues, which have been brought into sharper focus by the pandemic, will continue to increase in importance and, now more than ever, will require close cooperation with all supply chain stakeholders in the year ahead. Coming together to forge strong customs-business partnerships, as evidenced during the pandemic, will be critical in ensuring mutually beneficial outcomes.