Improving Customs Transit Systems
In the Islamic Countries
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Logistics management and supply chain management is in large part based on ICT in
international trade operations. Efficient CTR requires the use of ICT in managing transit
procedures. This is especially important regarding the real-time exchange of information
between CAs in departure, transit, and destination countries. An optimal ICT system regarding
CTR in large part will facilitate and simplify customs transit procedures. The paper-based
procedures that are inefficient, time-consuming, and risky will be changed with the electronic
exchange of information between all stakeholders in the process.
Managing guarantees is an essential part of CTR. A guarantee system ensures that Customs
duties and taxes suspended during the transit procedure are covered in cases where they have
to be paid. The process starts when the principal provides a bond by a bank or
insurance/voucher by a guarantor and released when the customs procedure ends. An
automatic release of guarantees is another measure to reduce the cost of the business19.
Guarantee management covers:
 Registration;
 Verification of the existence and validity;
 Monitoring of the reference amount;
 The release of the guarantee.
If a comprehensive guaranty is issued, it covers multiple shipments; the Customs and the
principal will monitor the ceiling, ensuring that all pending shipments remain covered.
Partnership with the business sector is an important part of an efficient CTR, especially in the
development of laws and regulations, and working together on improving the entire system. The
development of an efficient CTR that secures the countries and help the business sector to do
the business globally, there is a need for a comprehensive partnership with the business
community. The partnership can be built by signing mutual assistance agreements with trade
associations to encourage a high level of cooperation between the CAs and business sectors.
Generally, the CTR is public-private cooperation where CAs allows access to the business sector
compliant with a set of criteria in simplified transit procedures to authorized operators. So, this
level of partnership will eliminate the need for inspection of the goods in transit. Additionally,
the business sector is faced daily with problems in transit procedures and has the potential to
help CAs in improvements.
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