Introduction
The Time Release Study (TRS) of the World Customs Organization (WCO) is a strategic and globally recognized technique customs employees use to evaluate the efficacy and performance of their border clearance operations. According to the World Customs Organization(n.d.), the TRS measures the time required for shipment clearance, from the time of entrance to the actual release of the items, to identify and improve bottlenecks in the process. Its methodology entails gathering information from stakeholders involved in international trade flows, including traders, customs officers, transporters, and other regulatory bodies (Duhaut, 2022). Data is gathered at various stages of the freight clearance process and analyzed to identify any flaws in the operation.
Customs administrations can identify and prioritize areas for improvement by performing TRS. Furthermore, it streamlines the trade flow process and reduces costs (Duhaut, 2022). It is essential for encouraging accountability and openness among customs officers and establishing a baseline for assessing and comparing success across different customs agencies. It also allows freight administrators to demonstrate compliance with the World Trade Facilitation Agreement, which mandates them to use simple and predictable border clearance procedures, according to Zhang et al. (2023). This report seeks to provide recommendations for freight clearance delays experienced at the airport and seaport in Johnsville, Catdom.
Problems
The trading community’s strident questions on the operations of the airport and the seaport in Catdom necessitated an inquiry into the challenges experienced at both ports. A TRS was conducted to identify the potential bottlenecks in the trade flows. The study involved a time series analysis of the time taken at each stage of the airport and the seaport freight clearance process. A study of the financial implications of the delays was conducted. The time analysis study involved collecting data between two periods to determine the difference in the delay times experienced. On the other hand, the financial implications study involved the collection of the revenue used and allocated during the two periods.
The arrival time for the cargo to submit the declaration processes was reduced at the airport and the seaport. There was an increase in the time it took from the request for the shipment declaration to the conclusion of the appraisal for the port. The time spent in the airport, on the other hand, remained steady. The time it took to complete the assessment procedure and pay duties and taxes rose for air cargo but stayed unchanged for sea cargo. Lastly, the time from duty payment to the delivery of goods remained constant for the airport freight forwarding and increased for the seaport.
An upsurge was noticed in determining the expenses for gathering revenue in the two-time frames. The cost of revenue collection increased by $165,000 between those two spells. While the positive deviation could be attributed to the surge in the number of transactions (declarations), it is also worth noting there was a +$0.50 difference in the unit transaction cost of collection between the two periods.
A rise in the time between submitting the cargo declaration and appraisal reflects issues with implementing or administering the Seaport TRS program. There have been delays in the processing of TRS claims and problems with the verification of goods purchased. The red-necked orange worm screenings at the harbor have mainly caused the delays. Increased documentary and physical examinations were implemented to a limited degree to enforce comprehensive safety screenings on every shipment exported to the United States. Customs and agriculture have independent departments that don’t collaborate on on-site checks.
Ultimately, the postponement in the timeframe linking discharging duties and obtaining merchandise might be due to a need for more compact gantry cranes to shift the vacant containers from the vessel’s edge to the storage piles at the harbor. The lack of straddle carriers at the seaport means that transportation trucks sent to collect containers at the port have to queue for long hours, sometimes even days.
The delays discussed above could affect the Islands’ executive bonus scheme. From the TRS, there has been an increase in the cost of revenue collection. The growth has been occasioned by an upward in the total assessment costs. To cater for the delays experienced at the ports, the employees have had to work extra hours, raising the unit transaction cost of collection from $23.50 to $24. The docks have had to part away with more cash to reimburse their staff and supervisors. Additionally, they have had to spend more on leave payments and overhead costs such as rent, depreciation, IT, and infrastructure. Thus, the TRS analysis conducted above identified several bottlenecks in the freight clearance processes:
- Use of manual processes: Manual processes are generally slower and more error-prone than automated or digital processes. Physical assessment of the cargo at the ports led to longer clearance times, which resulted in delays in the supply chain process. The on-site checks carried out by the customs and farming officials at the harbors resulted in a rise in the duration between the submission of the goods declaration and the conclusion of the evaluation.
- Inadequate infrastructure: The inadequate number of gantry carriers for transferring the empty containers at the maritime terminal decelerated the cargo clearance procedure.
- Limited human resources: Ports with insufficient resources such as trained personnel, technology, and equipment will likely experience bottlenecks. The choice to relocate twenty declaration officials from the airport to the seaport has crippled the cargo clearance operation, given that the remaining inexperienced staff must depend on only two managers.
- Inadequate planning: Inadequate planning and coordination between different cargo clearance levels will likely lead to congestion, delays, and increased costs. The customs and agriculture departments at the seaport have separate offices and conduct independent physical inspections. Additionally, the payment arrangement instituted by the CCD, which mandates that tariffs and levies be remitted through a verified draft or in hard currency, retards the procedure of clearing consignments.
Solutions
Solutions to the Use of Manual Processes
Risk-based inspections, pre-shipment inspections, harmonized inspections, and intelligent scanning technology are recommended to speed up the red-necked orange worm inspections at the ports. Customs and agriculture experts can adopt a risk-based approach to physical examination, focusing on high-risk cargo and using data and technology to identify potential risks. The CCD can borrow a leaf from the Port of Sandiego, where the U.S. Border and Protection uses risk-based analysis and intelligence to pre-screen cargo (Doing Business Archive, n.d.). This technique can help to reduce the number of inspections and speed up the clearance process for low-risk cargo. Also, they can harmonize their inspection processes. The two groups of experts are advised to have a shared office at the seaport and to coordinate their inspections.
Additionally, the ports are encouraged to initiate pre-shipment inspections. Inspecting cargo at the point of origin rather than at the seaport reduces the need for physical checks (Doing Business Archive, n.d.). Moreover, like the Port of San Diego, they can use intelligent scanning technology, such as X-ray machines and non-invasive inspection methods, to quickly and accurately inspect the cargo. Employing technology reduces the need for constant physical inspection and speeds up the clearance process.
Solutions to Lack of Inadequate Infrastructure
To address the lack of infrastructure at the port, this report recommends infrastructure investment, public-private partnerships, capacity building, and multimodal transportation. The CCD is encouraged to invest in straddle carriers to help increase the capacity of the seaport, reduce congestion, and improve efficiency. Also, it is recommended that they seek partnerships with government and private entities, just like the Port of Rotterdam, Netherlands. The port collaborates with private consortiums to develop its infrastructure (Koroleva et al., 2018). Public-private partnerships (PPPs) can help share risk and infrastructure development costs and bring new expertise and resources.
Moreover, the customs department is advised to invest in training and capacity training programs. Training improves staff’s skills and knowledge (Koroleva et al., 2018). Through this training, the seaport employee can use the available infrastructure to mitigate the Straddle carriers problem. Also, to decongest the port and eliminate the long queues experienced at the port during the delivery process, the department is encouraged to integrate the seaport with other modes of transportation. Using different means of transportation, such as rails by the Port of Shangai, will improve connectivity and reduce the need for infrastructure (Gurzhiy et al., 2021). Ultimately, the freight clearance process will be much faster and more efficient.
Solutions to Limited Human Resource
The CCD is advised to employ performance monitoring, outsourcing, training and development, and prioritization to sort out the limited human resource bottleneck. Both the airport and the seaport can monitor employee performance and use data to identify opportunities for improvement. Employee monitoring can help optimize the use of existing personnel and improve efficiency (U.S. Customs and Border Protection, n.d.). Also, the ports can invest in training and development programs to enhance the skills and knowledge of their staff. Training and development will benefit the airport employees who depend on the two available supervisors.
The CCD is advised to outsource certain activities, such as cargo transportation, to ease congestion during port delivery. According to Zhang et al. (2023), outsourcing is essential for handling employee shortages. Furthermore, it is encouraged to prioritize its activities based on available resources and focus on the most critical parts. For instance, the ports can delegate more personnel to time-consuming tasks such as physical inspections. Prioritization ensures that the resources are used efficiently and effectively.
Solutions to Inadequate Planning
To address the issue of inadequate planning, this report suggests the adoption of process improvement, strategic planning, and stakeholder engagement. According to the World Customs Organization(n.d.), ports should continuously improve their processes to reduce inefficiencies. Both ports can switch to modern inspection methods, such as intelligent technology, at the expense of the physical assessment procedure (Zhang et al., 2023).
The CCD is advised to benchmark the Port of Singapore, which is known for its efficiency and technological innovations. According to de la Peña Zarzuelo et al. (2020), the port uses an intelligent container tracking system called Next Generation Container Inspection System (NGCIS) with image sensors for inspections. Also, they can engage their stakeholders, such as the importers and the transporters, to identify their needs. For instance, the seaport can liaise with the transporter to devise ways of decongesting the port.
Additionally, the ports should develop long-term strategic plans that ensure their success. The CCD should create a faster payment system to fast-track the freight clearance process. Moreover, the seaport should coordinate the customs and agricultural departments’ activities to fasten freight clearance. A proper strategic plan helps to align activities with the overall goals and ensures efficiency at all levels of the clearance process (Zhang et al., 2023). A well-devised plan will enable the ports to fast-track the freight forwarding process.
Conclusion
This paper describes the results of a TRS study that was undertaken to detect bottlenecks in the clearance of goods at the ports and airports in Johnsville, Commonwealth of Australia. Based on the research analysis, the report has highlighted the challenges faced at both ports and recommended remedies to those concerns. CCD is capable of overcoming the obstacles that have been highlighted if it implements the practical solutions that have been offered in this study. The ports will be in a better position to compete. In addition to this, they will have a higher score on the WCO TRS and will have performed better overall in the global supply chain.
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