Contribution Of Customs Tariff To The Economy

As a matter of fact, many countries which engage in cross border activities earn more revenue in terms of foreign exchange. This enables them to offer high quality services to their people as well as drive their development agenda. To this end, many governments in the world give subsidies and other tax incentives to people who show interest in this business as they are aware of the results such people and their businesses will have on the economy. There is need for each and every individual to know their contribution to the economy of their country.

Cross border activities are very lucrative and many governments thrive on them as they are in a position to create wealth within a very short period. However, such activities must be legal. Drug trafficking and other illegal business transactions must be curtailed under all circumstances as they will end up causing unnecessary economic losses. In order for a country to enhance the revenue collected from the customs tariff, it is important to ensure that it enacts strong laws and measures to ensure that all the revenue collected by the customs officials is accounted for and transmitted to the national government for appropriation.

Many countries have lost such revenues as a result of corruption and other illegal transactions that are carried out by some unscrupulous customs officials. It should be noted that a country with economic independence by extension has political and social independence. This is because it will not be forced to move up and down in search of grants and aid which in many cases have a lot of strict conditions which end up eating into the country’s sovereignty. Many countries are working hard to achieve economic independence as this is the only way out of many social and political problems that they are facing.

In order to achieve such independence, they should ensure that they enhance their revenue collection internally and one way is through ensuring that such tariffs mentioned above are collected and utilized economically and effectively to the last coin. The government should not engage in side shows through investing in non economic activities which will add no value to the economy and local citizen. There should be stringent measures to ensure accountability within the government circles and anybody found culpable of misuse, embezzlement and misappropriation of public funds should forced to account for such misdeeds regardless of their political affiliation, sex, social class or tribe.

In order to ensure high levels of tariffs collection, there is need for the government to work closely with a competent and professional customs broker. Such a broker will enable the government and business people to navigate through the procedures involved in clearing goods at the port or other country’s entry points. This will save such a government cost and time. High cost of clearing will just add to the already existing cost and this may reduce economic progress in a country or an individual business in which one may be involved in on a daily bases.

Writen by Kirk Stiffler