Trade Facilitation and Customs Revenue Collection: Is That a Paradox?

Abstract

This research examines whether trade facilitation (TF) measures may contribute to a loss of customs control or revenue. A survey was conducted to collect TF practices in the customs context worldwide. Responses were obtained from key stakeholders from 40 countries. We then obtained information related to tax revenues generated by Customs. The results reveal there is no direct relationship between the likelihood of observing TF practices and the extent to which a government depends on revenue generated by Customs. The result identified from this research is that it is possible to implement TF practices without diminishing customs revenues or weakening controls.