Journal of Korea Trade

Korea Trade Research Association (한국무역학회)
권호 표지
DOI QR코드

DOI QR Code

Trade Facilitation for E-Commerce Export Clearance

  • Ji-Soo Yi (Department of International Trade, College of Business and Economics, Dankook University)
  • Received : 2023.05.14
  • Accepted : 2023.06.09
  • Published : 2023.06.30
Download PDF
⟨ Previous Next ⟩

Abstract

Purpose - There is a paucity of literature dealing with exporters' compliance issues in e-commerce exports. This study aims to fill this gap in the literature by exploring customs initiatives to facilitate the e-commerce exports of small and medium-sized enterprises (SMEs) in the changed compliance environment. The central question of this study was divided into five subquestions: first regarding the pros and cons of trade facilitation measures for Korean e-commerce export clearance; second and third questions about risk and compliance management for facilitation fourth about instruments, the changes in Korean SME compliance burden in e-commerce exports, and ways to improve trade facilitation for e-commerce exports. Design/methodology - This study adopts a qualitative approach using a case study method to understand the SME experience in Korean e-commerce export compliance procedures. A qualitative method was selected to answer research questions requiring an in-depth understanding of the regulatory procedures of customs administration and exporters' compliance burden. Because this study addresses the changing compliance environment for which statistical data is insufficient, a quantitative method is considered inappropriate. Based on the approach, data were collected using multiple sources, including an extensive literature review, interviews, and field observations. Thematic pattern matching was applied to interpret the data. Findings - This study examined ways to support SMEs in the changed e-commerce export compliance environment. Facilitation measures for e-commerce exports have contributed to SME access to global markets, simplifying export clearance procedures, and saving exporters' compliance costs. However, such instruments are limited in promoting SME compliance capabilities to cope with intensified competition and strengthened controls over foreign exporters in cross-border e-commerce. Therefore, this study highlights the importance of reshaping facilitation measures for e-commerce exports based on risk and compliance management theories to a system encouraging exporters' voluntary compliance. Originality/value - This study's academic significance derives from verifying the relationship between trade facilitation instruments and risk and compliance management procedures using an actual case in Korea. It is also of practical importance in navigating the directions for improving facilitation measures for e-commerce exports in a changed compliance environment.

Keywords

Acknowledgement

The present research was supported by the research fund of Dankook University in 2020.

References

  1. Azcarraga, A., T. Matsudaira, G. Montagnat-Rentier, J. Nagy and J. Clark (2022), "How Trade and Tax Policies Are Shaping Customs", In Azcarraga, T., G. Matsudaira, J. Montagnat-Rentier and J. Clark (Eds.), Customs Matters: Strengthening Customs Administration in a Changing World (pp. 132). Washington DC: International Monetary Fund.
  2. Babbie, E. (2013), The Practice of Social Research. Seoul: Cengage Learning.
  3. Barnay, A., J. Davis and S. Zaidi (2022), Can e-commerce help customs agencies fix old problems? Washington DC: McKinsey Global Publishing.
  4. Brondolo, J. and M. Konza (2021), Administering the Value-Added Tax on Imported Digital Services and Low-Value Imported Goods, Washington, DC: International Monetary Fund.
  5. Clark, J. and D. Bernard (2022), "Customs in a World of Enhanced Trade Facilitation". In Azcarraga, T., G. Matsudaira, J. Montagnat-Rentier and J. Clark (Eds.), Customs Matters: Strengthening Customs Administration in a Changing World (pp. 95-129). Washington DC: International Monetary Fund.
  6. Creswell, J. W. (2016), 30 Essential Skills for the Qualitative Researcher (2nd ed.). Washington DC: SAGE Publications Inc.
  7. Cuccia, A. D. and G. A. Carnes (2001), "A closer look at the relation between tax complexity and tax equity perceptions", Journal of Economic Psychology, 22(2), 113-140. https://doi.org/10.1016/S0167-4870(01)00025-3
  8. Elliott, D. and C. Bonsignori (2019), "The Influence of Customs Capabilities and Express Delivery on Trade Flows", Journal of Air Transport Management, 74, 54-71. https://doi.org/10.1016/j.jairtraman.2018.09.007
  9. Evans, C. and B. Tran-nam (2010), "Managing tax system complexity: Building bridges through prefilled tax returns", Australian Tax Forum, 25, 247-276.
  10. Geourjon, A. M. and B. Laporte (2005), "Risk management for targeting customs controls in developing countries: A risky venture for revenue performance? " Public Administration and Development, 25(2), 105-113. https://doi.org/10.1002/pad.336
  11. Grainger, A. (2011), "Trade Facilitation: A Conceptual Review", Journal of World Trade, 45(1), 39-62. https://doi.org/10.54648/TRAD2011002
  12. Korea Customs Service (2021), Electronic Commerce Export Declaration Guidebook, Incheon: Incheon Headquarters Customs.
  13. OECD (2014), Addressing the Tax Challenges of the Digital Economy, Paris: OECD Publishing.
  14. Rayport, J. (2022). Why Some Startups Fail to Scale. Harvard Business Review. Available from https://hbr.org/podcast/2022/12/why-some-start-ups-fail-to-scale (Accessed November 22, 2022)
  15. Slemrod, J. (1996), "Compliance Simplifying", Public Finance, 24(4), 411-438. https://doi.org/10.1177/109114219602400401
  16. Slemrod, J. (2005), "The etiology of tax complexity: Evidence from US state income tax systems", Public Finance Review, 33(3), 279-299. https://doi.org/10.1177/1091142105275003
  17. Sowinski, L. (2017), "WCO Immediate Release Guidelines State of Application in CEFTA", Global Trade and Customs Journal, 12(5), 196-202. https://doi.org/10.54648/GTCJ2017027
  18. Tavengerwei, R. (2018), "Using trade facilitation to assist MSMEs in E-commerce in developing countries", Journal of International Economic Law, 21(2), 349-378. https://doi.org/10.1093/jiel/jgy022
  19. Trade Statistics Service. (2022), SME Statistics. Available from https://www.bandtrass.or.kr/ (accessed November, 5, 2022)
  20. WCO. (2010), The Authorized Economic Operator and the Small and Medium Enterprise, Brussels: WCO.
  21. WCO. (2012), WCO Customs Risk Management Compendium, Brussels: WCO.
  22. WCO. (2015), "Focus: E-commerce and revenue collection", World Customs Organization News, 78, 38-43.
  23. WCO. (2017), WCO Study Report on Cross-Border E-Commerce, Brussels: WCO.
  24. WCO. (2018a), Guidelines for the Immediate Release of Consignments by Customs, Brussels: WCO.
  25. WCO. (2018b), Immediate Release Guidelines, Brussels: WCO.
  26. WCO. (2019), Voluntary Compliance Framework, Brussels: WCO.
  27. WCO. (2022), Framework of Standards on Cross-Border E-Commerce, Brussels: WCO.
  28. Widdowson, D. (2005), "Managing Risk in the Customs Context", In Wulf, L. and J. B. Sokol (Eds.), Customs Modernization Handbook (pp. 1-356). Washington, DC: The World Bank.