Commercial Sector Strategies of Engagement with Customs Authorities in Canada’s Import-Export Supply Chains

Michael Haughton
and
Sapna Isotupa

A distinguishing feature of trans-border supply chains is the presence of influential participants without direct commercial stake in supply chain performance; i.e., Customs authorities and other government departments (OGD) with jurisdiction over trans-border (import/export) commerce. Because these influential government participants have priorities (e.g., anti-terrorism) that are different from those of commercial participants (e.g., supply chain velocity), achieving effective business-government relationships can be a very intricate undertaking. Using the context of Canada’s trans-border supply chains, we address the question of what issues must be tackled in order to achieve effective business-government relationships; i.e., relationships that facilitate simultaneous optimal attainment of supply chain priorities and Customs/OGD priorities? Our research draws on a combination of four data collection methods: (i) archival research, (ii) notes collected from public meetings and conferences at which the stakeholders in Canada’s import/export environment air and attempt to resolve the various issues, (iii) interviews, and (iv) a structured questionnaire survey.

One of our key findings is that, as with supply chain relationships in which supply chain partners can find mutually beneficial ways to deal with seemingly incompatible priorities, Customs/OGD and commercial participants in Canada’s import/export supply chains can cooperate to do likewise. Thus, we cast doubt on the popular notion that differences between Customs/OGD priorities and commercial supply chain priorities are polarizing; a notion often expressed with catchphrases such as “security trumps trade”. This and our other findings provide empirical depth to extend the body of knowledge in three inter-related research streams: trans-border supply chain management (SCM), business-government relationships, and supply chain relationships. The crux of our contribution to these research streams is that although they contain insights into how firms might manage their relationships with external organizations such as government agencies, the extant research lacks specificity on crucial details that impact the efficacy of business-government relationships in trans-border supply chain settings.