Why Export Portal
Export Portal: the new game changer in international trade
Renato Ruggiero, former director general of the World Trade Organization (WTO), likened these measures to “invisible” trade barriers that add costs to traders, consumers and national economies. While classic trade barriers in the form of tariffs and quantitative restrictions have decreased, the documentation requirements, procedural delays and lack of transparency and predictability in the application of government rules and regulations is hampering trade and adding costs that sometimes exceed actual duties.
To regulate the flow of goods in and out of a country, as well as collect and safeguard the collection of custom duties, most countries have established a customs authority as a nodal agency for regulating trade. Although most countries today have their own nodal agency for customs regulations, the World Customs Organization (WCO) acts as an intergovernmental organization for customs related matters and is now globally recognized as the voice of the customs community.
While international trade has been conducted throughout much of human history, its increasing economic, social and political rami cations have been felt most during recent times, as its percentage contribution toward gross domestic product (GDP) grows. The U.S. leads all countries in trading volumes and has a share of more than 13.2% of the world’s imports (see Figure 1). The European Union (EU) has a similar share of the world’s import market, without considering intra-trade among EU member countries. Because of efforts by the European Union to standardize trade procedures among its members, the continent can be considered a single entity in terms of how it handles trade regulations.
Need for More Regulation
Following the 9/11 attacks, governments all over the world realized the need for securing the entry of man and material across borders to safeguard their nations from external threats. The WCO, realizing the need to develop a common framework to facilitate international trade, drafted the SAFE Framework of Standards to Secure and Facilitate Global Trade.
The flow of goods entering a country needs to be regulated, to safeguard national companies from predatory pricing practices and to protect intellectual property rights (IPR). Measures like antidumping and countervailing duty are effectively used to prevent shipment of cheap goods and inferior products. A total of $130 million was collected by CBP in antidumping/countervailing duties in 2009. Nearly 8,000 intellectual property rights seizures have been made in the first half of 2010 alone in an attempt to reduce counterfeits and protect IPR.
Imports are a primary source of revenue for most governments across the world. The U.S. Customs Service is the second largest source of revenue for the U.S. government, second only to the Internal Revenue Service. In 2009, around 31% of imported goods were dutiable, earning $29.5 billion in revenue for the government. This included collections from duties, fees and miscellaneous collections and taxes. Due to trade liberalization, the share of import tax to that of GDP is expected to rise for most nations.