This report provides an analytical framework for studying integrity in trade, combining insights from OECD work on trade facilitation, responsible business conduct and integrity in customs. It provides data and evidence supporting the view that trade facilitation and integrity are mutually supportive objectives, and suggests measures to effectively tackle corrupt practices affecting global supply chains.
Loss of revenue caused by customs-related corruption is estimated to cost World Customs Organization (WCO) members at least USD 2 billion in customs revenue each year, with India losing USD 334 million and Russia USD 223 million.
Trade barriers such as burdensome rules and procedures can constitute vulnerabilities and create important incentives to engage in corrupt behaviour. Trade facilitation measures have the potential to benefit all countries.
Implementing appropriate governance structures, accountability mechanisms and integrity policies in customs administrations alone has the potential to reduce trade costs and eliminate opportunities for customs policy capture and extortion.