Customs/Performance Standards

Mission Statement

To seek more efficient customs and border practices for air cargo shipments, in order to facilitate trade and economic growth and to capitalize on air cargo’s key competitive advantage, speed.

Position Statement

A detailed IATA report established that, in 1974, airfreight consignments took an average of 6 days from origin to destination, of which only eight hours were allocated to actual flight-time and twelve hours to useful movement on the ground. The remaining time – more than 5 days - was due to delays, primarily related to Customs requirements.

Recent research shows no improvement in these figures. These delays represent unnecessary handicaps on airfreight markets. TIACA believes there is an urgent need to reduce overall origin/destination timings, to capitalize on aviation’s core speed-through-the air commercial advantage. The principal means to achieve this is through modernization of customs policies.

In most countries, customs authorities serve as the principal government agency responsible for international cargo shipments as they cross borders. TIACA recognizes that, as such, Customs has a legitimate need for relevant information to address security, safety and other transactional compliance matters. That said, TIACA believes it is in the interest of both Customs and industry to ensure that the customs clearance process is handled with maximum possible efficiency and transparency and with minimum possible delays, redundancy and unnecessary documentation. TIACA believes Customs authorities should consult with the trading community to achieve the goals of facilitation and control.

In many countries, Customs handles large sums in import duties and taxes and exercises wide legal powers and measures of discretion. In most countries, Customs acts on behalf of a usually large number of other official border control agencies. Research commissioned by TIACA[1] shows that quality and integrity of customs along with aviation liberalization each uniquely contribute to greater economic development. Taken together, the three variables explain over three quarters of the variance in a country’s GDP and net foreign direct investment.

While there are many intermediate and some exceptional cases, we can make a rough but useful distinction between our key objectives for developed and developing countries.

For developing countries our main objectives are -

A shift to high Customs/trade integrity at the operational interface
The replacement of documentary systems by good-quality automation
The use of risk-assessment to curb excessive controls, especially comprehensive physical inspection
General transparency
Efficient and constructive Customs/trade consultation
Adoption of post-entry audits to control import duties and taxes
Availability of binding advance rulings on classification and value
The possibility of appealing Customs decisions to an external “neutral” tribunal.

In developed economies we are working to -

Ensure that compliance with new security regimes attracts proportionate associated facilitation benefits
Secure immediate release of goods on receipt of a minimal set of standard data, supplied in advance of importation at a point in time convenient to both Customs and trader
Bring all border agency controls into Single Window systems
Support Mutual Recognition Agreements between national customs authorities, as an essential benefit of AEO/C-TPAT regimes and means of linking two or more national Single Windows
Achieve early elimination of paper “supporting documents”

TIACA also supports global

Standardisation, especially in relation to Customs/trade electronic interchanges, including support for the WCO data model and the e-Freight industry initiative.
‘De minimis’ arrangements, providing an immediate ‘green channel’ release and clearance system for consignments falling below a certain level of dutiable value.
Special procedures for the fast movement of aircraft spare parts and service equipment.

TIACA aims for a future in which Customs regulations globally are harmonized and limited to only those necessary to ensure compliance, allowing for greater supply chain efficiency and simplicity, and for the concomitant economic benefits that would ensue.

[1] The Center for Air Commerce, Kenan Institute of Private Enterprise, Kenan-Flagler Business School, The University of North Carolina at Chapel Hill, “Air Cargo: Engine for Economic Development”, September 15, 2004