Purpose
In a changing trade landscape, global trade transaction relies on a global supply-chain network. Customs clearance to cross borders is critical to enhancing the competitiveness of both importers and exporters. As such, each country has adopted an authorized economic operator (AEO) program to promote the security of both imported and exported cargo as well as expedite freight movements. The purpose of this paper is to discover the factors which should be taken into account to utilize an AEO program, and to look at the causal relations between these factors.
Design/methodology/approach
This study conducted a survey on 201 AEO programs in Korea. With partial least squares, the structure model is tested using the coefficient value of the determination of the dependent variable, explained by the sign and scale of the path coefficient, statistical significance, and leading variable. Moreover, this study performed bootstrap re-sampling to verify all paths and significance.
Findings
It was found that AEO external pressure, training capacity, and sustainability are shown to have a significant impact on AEO performance. Furthermore, for the group with a high level of AEO application, training capacity and AEO sustainability are shown to have a greater effect on AEO performance. For the group with a low level of AEO application, internal regulation is shown to have a bigger impact on AEO performance.
Originality/value
This study sets itself apart from previous ones in that it examines AEO application for trade security and facilitation with regard to customs, which would affect global supply-chain management.
Purpose : The aim of this article is to develop customs-capacity cultivation programs for the Korea Customs Service in developing countries and to present efficiency measures for providing long-term and systematic programs with expertise.
Research design, data, and methodology : Prior to the outbreak of COVID-19, the Korea Customs Service reviewed the status of customs-capacity cultivation support in developing countries and analyzed the form of international organizations' support for developing countries. The Korea Customs Service proposed measures to streamline customs-capacity cultivation programs in developing countries.
Results : In order to streamline customs-capacity cultivation programs in developing countries, the Korea Customs Service proposed preparing a long-term organizational system and pre-demand surveys, and proposed developing customized programs for each country with follow-up management.
Conclusions : Although Korea's customs-capacity cultivation program in developing countries is trying to overcome the limitations of existing programs, it is difficult to secure expertise because the person in charge is not determined according to each program, subject, and target. Therefore, it is necessary to apply efficiency measures in consideration of the establishment of an organizational system from a long-term perspective, as well as pre-demand survey of programs, development of customized programs, and follow-up management.
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