Customs business partnership : a case study of China customs and Thai customs

Abstract

This study examines the relationship, transactions, and interactions between Customs and business in regulating, controlling, and processing cross-border trade movement and safeguarding national security. More specifically, theoretical and practical dimensions on Customs-business partnership (CBP) are studied within the broader context of administrative reform and Customs modernization since the 1990s in China Customs and Thai Customs.

The research objectives of this study are: to analyze the context, initial conditions and drivers for Customs and business to build the CBP in a broad context of administrative reform and Customs modernization; to explore the key enabling factors and barriers in designing and implementing CBP; to understand the relevant outcomes of Customs-business partnership.

Literature review on inter-organizational relations (IORs), administrative reform, public-private partnerships (PPPs) and regulatory compliance management provide theoretical lens to understand and explore the CBP as an emerging phenomenon.

Methodologically, the study was designed as a two-case study with China Customs and Thai Customs are selected as the subjects. Qualitative methods like indepth and focus group interviews, documentary study, and observations are primarily used in the data collection and analysis. For each case, interviews were conducted with the key informants both with Customs and business.

This study generates sound empirical findings and exerts theoretical and practical implications. In legal terms, the nature of the Customs-business relationship has not altered dramatically. As an emerging trend, Customs has adopted the Customs-business partnership as a possible new mode in trade regulation and enforcement. However, it is still difficult to justify a paradigm shift in the governance mode of Customs administration and enforcement. The emerging of the CBP in both Customs administrations can be attributed to broader contextual imperatives: nationwide administrative reform, potential sector and certain immediate conditions. The major factors in building the CBP are identified: leadership and political will, trust, communication, transparency, technology and risk management. Regarding outcomes of the CBP, solid evidence shows that benefits and impacts have been made, to some degree both at the organizational level for Customs and business and for society at large. For both China Customs and Thai Customs, level of institutionalization of the CBP needs to be improved, and major hindrances include power imbalance, policy fragmentation, compliance culture and other issues. The implications for the theoretical enrichment of IORs, compliance management are discussed, and recommendations for policy and practical purposes are discussed. Finally, suggestions for future research are envisaged.