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February 15, 2022
EY Global Tax Controversy Flash Newsletter (Issue 43) | Customs control frameworks are vital to today’s importers
COVID-19 staff shortages and remote working have led many customs administrations to replace physical inspections carried out at the border with post-entry desk reviews based on customs declarations. In the latest edition of EY's TradeWatch publication, we report on this trend in Egypt, India and the Kingdom of Saudi Arabia.
Digital audit techniques can improve international trade for all parties. Trusted trader programs, such as Authorized Economic Operator in the European Union, and India’s new “faceless audit” program, for example, can greatly speed up flows of goods. But these programs can also expose weaknesses in companies’ systems, especially in periods of high disruption to global trade.
In this environment, importers need to adopt an agile trade strategy, backed by robust internal controls. Using global trade management software and data analytics, companies can look critically at their global supply chains; they can examine their customs declarations, documentation and processes to identify potential weaknesses and underpayments as well as missed cost-saving opportunities. Once these control tests are defined, they must be repeated systematically.
Businesses may use their own in-house resources to carry out these activities, outsource them to specialist trade advisers — or adopt a hybrid approach. Each organization will find its own best fit. But in today’s rapidly moving trade environment, having an effective customs control framework is vital for trade success. Read more in TradeWatch Issue 3 2021.
Additional information and links to past newsletters can be found in the attached PDF.
Flash Newsletter attachment (Issue 43)