It is uncontroverted that efficient customs administration is very important for businesses to compete effectively in international markets. Cross-border efficiency contributes to good economic performance through the trade channel. The losses that businesses and governments incur through delays at borders, lack of transparency and predictability, complicated documentation requirements and other outdated customs procedures are estimated to out-weigh the costs of tariffs. Governments stand to profit from customs modernisation because efficient customs operations have the potential not only to increase trade but also to facilitate tax collection and therefore boost government revenues.
This Brief examines how enhanced trade facilitation process would greatly improve and facilitate the efficient functioning of business and government activities. This is because improved trade facilitation will reduce the cost of trading as there will be fewer delays in the movement of goods, faster customs clearance and a more transparent framework for competition. That is why developing countries including those in Africa are paying serious attention to strengthening trade facilitation in their respective countries.