TRANSPARENCY IN THE BACKBONE OF GLOBAL SUPPLY CHAINS: FOREIGN TRADE ZONES

On 16th October, RUSI published a Commentary saying that while foreign trade zones bring many benefits, they require greater transparency in order to operate securely and ethically.  It says that foreign trade zones anywhere are defined by 3 key characteristics –

  1. they are geographically delineated areas considered to be outside of the normal customs area;
  2. they have a management authority that can be public, private or mixed; and
  3. their authorities offer special benefits in exchange for locating within the zone.

It says that FTZ form the backbone of global supply chains and are the lubricant to the cogwheels of globalisation – yet their importance is frequently overlooked or misunderstood in everything from international development goals to efforts at combating terrorism, transnational organised crime and trade fraud.  It warns that the absence of a standardised set of regulations for zones means that in many places they are the ‘Wild West’ of globalisation, cowboy capitalism at its worst.

https://rusi.org/commentary/transparency-backbone-global-supply-chains-foreign-trade-zones

This blog is primarily for my own use, to keep informed and up to date. However, if you would like to say thank you (and perhaps help me get a new, better laptop when I am away…) you can “buy me a coffee” at https://www.buymeacoffee.com/KoIvM842y

Author: raytodd2017

Chartered Legal Executive and former senior manager with Isle of Man Customs and Excise, where I was (amongst other things) Sanctions Officer (for UN/EU sanctions), Export Licensing Officer and Manager of the Legal-Library & Collectorate Support Section

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