Rolling Back the Frontiers: The Customs Clearance Revolution

Abstract

As far as most people are concerned, customs clearance is not a term that is likely to excite enthusiasm. For some, customs clearance represents tedious border checks, irritating delays and complicated form‐filling. For others, it is one of the oldest examples of government interference and bureaucracy. Something that does little to improve its tarnished image in an era supposedly dominated by free markets and private initiative. But regardless of the ambivalence in which it is held, the fact remains that when goods are moved across borders, customs clearance is usually involved. In this paper we will argue that the low status and poor image of customs clearance has actually become outdated. Now, fundamental changes taking place in the area have worked to raise the importance of customs clearance in general. These changes have linked customs clearance to innovative technological developments, and propelled it into becoming a key area for management in cross‐border, time‐sensitive industries. We will examine the specific drivers of these changes and assess the ways in which these drivers might impact businesses involved in moving goods across borders. Finally, we will focus on what such businesses might do to respond.