Customs Fiscalization, Taxation, and Facilitation of Foreign Trade through Improved Practices: A Case Study

Abstract

The effect of relationships (dimensions or constructs) of the best practices of modern customs on customs functions were studied for Manzanillo Customs Office, in Colima, Mexico. The study included both customs as an administrative entity and as a public service. Partial results revealed that customs is not constrained to tax collection at the border, but also performs governmental tasks linked to border crossings, like facilitation and control of trade, and fiscalization. Hence, the update of the essential customs functions had significant effects on best practices. One of the methods used was structural equation models. This paper will contribute to improved customs management once the best Mexican customs practices are properly positioned, and when the most effective dimensions are determined, for a more optimum, efficient, transparent and competitive work. In that direction, new recommendations and propositions may be considered to achieve greater efficiency. Accordingly, the outcome of this study was to establish a model that can measure customs modernization.