Customs efficiency a
major factor for foreign direct investment
Paris, 21
October 1999 - Ahead
of the World Trade Organization ministerial conference in Seattle, the International
Chamber of Commerce today called on governments to ensure that they have modern
and efficient customs if they want to encourage foreign direct investment (FDI).
An ICC statement said that
global corporations were creating sophisticated international supply chain management
systems to move goods quickly and economically around the world. "Countries
that stop or slow down these supply chains will be left out of the process."
ICC said customs clearance
time must be measured in hours, not in weeks or even days. Access to imported
raw materials and components was a critical factor in decisions on siting manufacturing
plant.
The statement added: "Any
customs administration that can provide reliable, timely customs clearance or
immediate release based on pre-clearance, creates an enormous competitive advantage
in attracting manufacturing."
ICC said: "Modernization
of a country's internal customs administration benefits growth and investment,
while modernization of the customs administrations of trading partners is necessary
to ensure the full realization of negotiated trade benefits."
The world business organization's
statement was drawn up by members of ICC's Committee on Customs and Trade Regulations,
headed by Fermin Cuza, Senior Vice-President of Mattel, the US toy manufacturer.
ICC said that as tariff
and other trade barriers fall, customs modernization becomes an increasingly
important consideration for countries seeking to attract foreign direct investment.
"Countries that fail to
keep pace with world class standards for customs administrations will find that
investors simply cannot afford the high logistics costs imposed by customs inefficiencies,"
the statement said. "Finance ministers in these countries will find FDI migrating
to nations with more sophisticated customs administrations."
Committee
on Customs and Trade Regulations
Policy
statement on trade liberalization, foreign direct investment and customs modernization