The Cost of Digital Customs vs. Not Using Technology in Customs

Digital customs is an area where technology can have a big impact, but it is often overlooked. According to a recent study by the World Economic Forum, the use of technology in customs procedures could save up to $50 billion annually in trade costs. In fact, many companies do not use technology to its full potential when it comes to customs. In addition, technology can help reduce corruption, improve compliance and increase transparency. However, despite the clear advantages of using technology in customs, many countries have been slow to adopt it. This is often due to the high cost of implementing new systems and the lack of technical expertise.

While the upfront cost of using technology in customs can be high, the long-term benefits more than justify the investment. In addition to the savings in trade costs, technology can also help customs officials to be more efficient and effective in their work. For example, the use of electronic data interchange (EDI) can help to speed up the processing of customs declarations. EDI allows customs authorities to exchange data electronically with traders, which can greatly reduce the time and cost of processing declarations.

Technology can also help customs officials to target risk more effectively. By using data analytics, customs authorities can identify high-risk shipments and target them for further scrutiny. This helps to improve compliance and reduce the chances of illicit goods entering the country. Finally, technology can help to improve transparency in customs operations. By making data available online, customs authorities can make it easier for businesses to track their shipments and ensure that they are complying with regulations. This can help to build trust between businesses and customs authorities.