Customs Regulatory Compliance Essay


Discuss about the Customs Regulatory Compliance Management.



Regulatory compliance includes the objective which an organization wants to achieve by following relevant laws, policies, and regulations. The companies follow harmonized sets of compliance controls for keeping operational transparency (Oyewunmi and et al, 2017). The file includes flexibility in procedures, type of payment terms, customs to demand duty and strategy for communicating with stakeholders.

Flexibility in procedures so that that compliant traders can be rewarded, encourages compliance amongst all traders.

Yes, I agree that by allowing flexibility in processes that complaint traders can be rewarded encourages compliance amongst all traders. Authorized economic operator (AEO) refers to the party which is involved in the international movement of products in whatever function that has been approved by. These operators with large business use trusted trader programs like authorized economic operator program (Arjoon, 2017). This program is organized by the Australian Customs for offering various facilities to international trade of goods.

Small scale companies are unable to use TTP due to its high prices. By lowering prices of entry requirements, small businesses will able to use this program. It will not only provide benefits to the organization but will also enhance sales and profitability of the program. Along with this, small scale firms will get an opportunity to expand their business by managing work appropriately and effectively. The firm will get benefits like faster clearance of goods, less interference by customs and high level of services. These features will help small scale companies to conduct their trade properly and more efficiently. The security function of the program will assist companies in securing their personnel, information and other business related processes (Grainger, 2016). Increasing use of TTP in both small and large sector will increase its popularity and profit worldwide.

Type of payment terms

As an exporter of tropical fruit, I am dealing with a new customer having the potential to further large purchases. But the case is to provide excellent services and product in the first shipment. For this kind of consignment, I will select cash in advance. Under this payment term, the exporter will able to eliminate the risk of non-payment or credit risk. In this, I will able to receive payment before the transport of good services and good products to the customer. There are two options available for cash in advance: credit cards and wire transfer. The customer can transfer money by using any of the both options (Komarov, 2016).

National customs legislation

Department of trade and customs (Australia) looks after the various functionalities of trade. Along with this, the national customs legislation provides traders rights to perform trade safely and properly. In the given case, warehouse license fails to keep warehoused goods safely. Thus, Section 35A(1) of the Customs act 1901 will be used by the client (Barone, 2016). This provision allows the owner to seek to have duty remitted under the particular circumstances like stolen of products. The warehouse owner will able to get the particular amount in the form of compensation for the stolen goods. Warehouse operator will be liable to pay the amount equal to the duty which would have paid on stolen products as per the claimed.

Identification of stakeholder and strategy for communicating with them

As per the given case, IT team will upgrade the IT system for improving the automated risk management and shorten the time to clear cargo. The stakeholders of the team will be:

  • Application Engineer
  • Database Administrator
  • Network Architect
  • Programmer
  • Designer
  • Programmer Analyst
  • IT manager
  • IT Leader
  • Network system administrator
  • Network Engineer

As a customs official in charge of a major international airport, it is necessary for me to upgrade the system for improving the current situation. The communication strategy which will be used for informing stakeholders about the system operation is as follows:

Statement of purpose: This will include purpose behind using communication strategy for the stakeholders.

Current Situation: This will include information regarding the current situation of the system and reason behind its upgrade (Afanasieva, Ivanov and Yanushkevych, 2017).

Organizational objective and communication objective: This step will include the link between the goals of airport and communication.

Selection of communication method: In this, I will use Information and Communication Technology (ICT) for communicating with the stakeholders. I will send all the needed information through email. Along with this, I will conduct formal and informal meetings with stakeholders for increasing understanding and relationship between them. All the ideas, strategies, etc. will be discussed in these meetings (Arjoon, 2017).

Work plan: In the end, last concluded plan will be communicated to the stakeholders for starting their work as per the plan.

SAD and its purpose:

Single Administrative Document (SAD) is also known as Form C88 which is used for international trade to and from the European Union Customs. All traders and agents can take advantages of SAD for declaring report, export, transit and community status declarations. This document is segregated into 54 boxes, and its full version comes in 8 different parts. These parts have various functions which are used by the traders as per their need. SAD was established in 1988, and its legislations help in conducting trade in secure and safe manner (Komarov, 2016). This document covers the placement of any product or their services under any customs process by using any mode of transport. The purpose of SAD is as follows:

  • To ensure openness in national administrative requirements.
  • To decrease the number of administrative documentation
  • To minimize the amount of information requested by the traders
  • To standardize and harmonize the data
  • To provide proper safety and security to the private and confidential information.


Afanasieva, V., Ivanov, L., & Yanushkevych, D. (2017). Modern Approaches to Risk Management and Their Use in Customs. ?????????? ?????, 3(4).

Arjoon, S. (2017). Virtues, Compliance, and Integrity: A Corporate Governance Perspective. Handbook of Virtue Ethics in Business and Management, 995-1002.

Barone, A. (2016). Managing Global Logistics for Business Growth: A guide for small to medium enterprises pursuing the global market growth through cross-border trade (export/import). Buoyant Capital.

Grainger, A. (2016). Customs management in multinational companies. World Customs Journal, 10(2), 17-35.

Komarov, ?. V. (2016). Risk management systems in Customs: The Ukrainian context. World Customs Journal, 10(1), 35-44.

Oyewunmi, O. A., Osibanjo, O. A., Falola, H. O., & Olujobi, O. J. (2017). Optimization by Integration: A corporate governance and human resource management dimension. International Review of Management and Marketing, 7(1).

How to cite this essay: