The future of customs after the Covid-19 pandemic This was the central theme of the closing of Barcelona New Economy Week, an event organised from 4 to 9 October 2020 by Consorci de la Zona Franca. The focus was on the possibilities and paradigm shift offered by new technologies to reactivate the economy.
The panel featured two women from international trade: Sandra Corcuera, from the Inter-American Development Bank (Washington), and Carolina Palma, from Ernst & Young (Costa Rica), with moderation by Juan Opertti, CEF of Hemiston (Uruguay).
The specialists agreed that the risks caused by the COVID-19 pandemic have required the implementation of automated processes to the maximum extent possible and contingency plans.
“The new reality has put us all to the test and customs have been able to secure and accelerate trade very well,” said Sandra Corcuera, responding to the role of the agencies. “Many of them did not have the mechanisms to operate in a 100% digital mode. Even so, they were able to carry out a transformation in order to continue operating,” he added.
“The closure of borders at the beginning of the pandemic has had a particular impact on countries that have land trade. However, governments reacted and implemented trade facilitation measures, as well as customs amnesties to help the private sector, developed sanitary and phytosanitary protocols and accelerated digitalization,” said Carolina Palma.
Both speakers agreed on the challenges facing customs agencies, as they can become key parts of the economic recovery agenda.
“According to ECLAC, GDP will fall back to levels of a decade ago and the poverty rate will be close to 2006 levels,” said the representative of the main source of financing for the development of Latin America and the Caribbean. Consequently, she listed the following: challenges Customs Response to COVID-19:
- Be robust links in the supply chain to streamline processes.
- Be more efficient in management in order to encourage the arrival of investments
- Be more resilient in the supply chain and have contingency plans coordinated with other border management entities to address situations such as the pandemic and natural disasters.
- Optimize and automate processes.
- Strengthen risk management systems for physical cargo and e-commerce flows.
- Coordinate better with other border entities.
- Collaborate more with the private sector using instruments such as Foreign Trade Single Windows or Port Community Systems.
- Having better border infrastructure without forgetting human resources, that is, people who can lead these transformation processes and manage these customs reforms to become "a resilient link in the supply chain."
Additionally, Palma said that “customs are part of the economic recovery and as such must generate synergy with the private sector through digitalization, infrastructure and support for sanitary and phytosanitary controls.”
Public-private collaboration, also supported by Juan Opertti, is “an asset for the future” with three fundamental pillars: “facilitation, control and automation”, which are important for the growth of electronic commerce.
Thus, the customs of the future will be more technological and digital in order to be able to exercise control, surveillance and inspection of any type of transaction or commercial exchange. In the near future, they will carry out a large part of the processes and procedures using technologies such as blockchain, big data analysis, the Internet of Things (IoT) or Artificial Intelligence.
In this regard, Sandra Corcuera remarked: “The Technology allows us to achieve a balance between facilitation and oversight. However, the figure of the Authorized Economic Operator It is the important instrument to generate trust.”
“The only way we can achieve trade facilitation and development in Latin America is with the collaboration public-private. And, as Sandra Corcuera pointed out, the Authorized Economic Operator is an example of the synergy that is needed to reactivate the economy in the post-COVID-19 era,” concluded Carolina Palma.
Aduana News is the first Argentine customs newspaper to launch its digital version. With 20 years of experience, its publications and initiatives aim to provide the most relevant knowledge on customs issues in order to contribute to safe trade in the region.
