“Trade Revolution: Customs’ Crucial Role”






The Role of Customs in Trade and Humanitarian Aid

1. Core Functions of Customs

  • Tax Collection: Performing the role of collecting national taxes.
  • Facilitating Legal Trade: Supporting the smooth progress of international trade.
  • Blocking Illegal and Harmful Goods: Preventing the inflow of smuggling, illegal drugs, weapons, etc.

2. Humanitarian Aid and Customs

  • Rapid Processing of Emergency Supplies: Coordinating to ensure that humanitarian aid supplies such as medicines, medical equipment, and food quickly cross borders.
  • Cooperation with Other Government Agencies: Collaborating with ministries of health, environment, etc., to verify and manage the quality of humanitarian aid supplies.
  • Adjusting Disaster Response Infrastructure: Supporting the rapid cross-border movement of construction equipment and rescue supplies in the event of crises such as earthquakes and wars.

3. Leveraging Technology

  • Non-Intrusive Inspection Technology: Helping to inspect the interior of containers without opening them, improving trade processing speed.
  • Digital Data Models: Using data models developed by the WCO (World Customs Organization) to facilitate smooth information exchange between customs administrations.
  • Introduction of Automation Systems: Using technologies such as AI and blockchain to simplify paperwork procedures and enable rapid border crossings.

Finland's Trade and Crisis Response Strategies

1. European and Global Economic Integration

  • Finland cooperates with the European Union (EU) and NATO to ensure trade stability.
  • Preparing to maintain the supply of essential goods (food, medical supplies, communication equipment, etc.) in the event of a crisis.

2. Impact of the War in Ukraine on Trade

  • The Russian invasion of Ukraine has severely damaged communication and power infrastructure.
  • Finnish companies (e.g., Nokia) support the restoration of Ukraine's digital networks.
  • Strengthening digital infrastructure plays an essential role in economic recovery even in wartime.
  • Lack of trade stability can also disrupt the supply chain of humanitarian goods.
  • Being able to procure goods from the global market makes it possible to support local hospitals and citizens.
  • Contributing to maintaining consumer markets in war-affected areas through cash support programs.

4. Technology-Based Trade Innovation

  • Finnish companies contribute to increasing trade efficiency by developing innovative solutions such as port logistics optimization and automation.
  • The European Union (EU) is in the process of using new technologies to simplify customs procedures.

Global Efforts for Supply Chain Stability

1. Public-Private Partnership

  • Governments and businesses must jointly analyze supply chain risks and prepare countermeasures.
  • Companies provide precise data on individual supply chains, and governments design policies based on this data.
  • Information sharing enables the prediction and mitigation of supply chain vulnerabilities in advance.

2. Trust-Based Information Sharing

  • A real-time information exchange system between customs administrations (Global Networked Customs) is needed.
  • Data standardization (application of the WCO data model) increases the accuracy and usability of information.
  • Building trust between countries is essential, and a legal framework related to security is required.

3. Supporting Small and Medium-Sized Enterprises (SMEs) in Global Trade Participation

  • Providing customs procedure training and information to enable SMEs to actively participate in international trade.
  • Simplifying customs procedures by guaranteeing transaction reliability through the Authorized Economic Operator (AEO) system.
  • Reducing trade-related costs and administrative burdens is essential for SME growth.

Conclusion

  • Cooperation for global supply chain stability and humanitarian aid is essential.
  • Customs is not just a tax collection agency but plays a key role in facilitating trade and providing humanitarian aid.
  • The more cooperation is strengthened between countries and between the public and private sectors, the more trade stability and crisis response capabilities improve.
  • Actively introducing technology-based solutions to increase trade efficiency and transparency is necessary.

This conference was a great opportunity to see how trade, technology, and public-private cooperation play an important role in the global economy and humanitarian activities. Customs optimization and trade digitalization should continue to be pursued in the future.

*Source: [World Economic Forum]


– Trade Tech: Delivering for People | World Economic Forum Annual Meeting 2025


 The Role of Customs in Trade and Humanitarian Aid 1. Core Functions of Customs Tax Collection: Performing the role of collecting national taxes. Facilitating Legal Trade: Supporting the smooth progress of international trade. Blocking Illegal and Harmful Goods: Preventing the inflow of smuggling, illegal drugs, weapons, etc. 2. Humanitarian Aid and Customs Rapid Processing…

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