RESTRICTEDWORLD TRADE
ORGANIZATIONG/C/W/239
31 October 2000
(00-4551)
Council for Trade in Goods Original:  Spanish
TRADE FACILITATION
Chile's Experience with the Modernization of Customs Administrations
Based on the Use of Information Technology
The following communication, dated 26 October 2000, has been received from the Permanent
Mission of Chile.
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Introduction
Chile considers that increased international trade flows bring economic development in their
train, and trade facilitation measures, inter alia , are therefore a key factor to that end.  One way of
achieving this goal is through the streamlining of customs procedures.
The Chilean customs authorities have been operating in an environment marked by a sharp
increase in foreign trade;  from 1990 to 1998, the cumulative expansion of trade totalled
approximately 142 per cent in real terms.  This has led to the introduction of new technology in the
Chilean customs service under the State modernization programme, using Electronic Data
Interchange, with the aim of providing a modern alternative to the existing customs processes and
improving the quality of the services associated with customs processing of goods.
Incorporation of information technology in customs management.The Chilean National Customs Service is an integral link in the chain of private and public
organizations involved in foreign trade, which together produce and issue a large number ofdocuments.  The introduction of information technology facilitates paperless trading among traders in
goods or services.
The benefits which the Government expected from the introduction of Electronic Data
Interchange included the following:
(a) Less paper-based inputs to the customs process;
(b) longer opening hours;
(c) shorter time required for processing;
(d) release of staff from repetitive duties which contribute little added value to the
service.
(e) better inspection and control capacity of the customs service;G/C/W/239
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(f) shorter time spent by goods in warehouses;  and
(g) interconnection of organizations involved in foreign trade.The cost of implementing the project amounted to some US$5 million, two thirds of which
was defrayed by the private sector which had joined in the discussions and planning that accompanied
the reform process.  It was estimated that the business savings from implementation of the system
would amount to more than US$1 million per month.
Evaluation of the implementation of the Electronic Data Interchange system
Following an evaluation of its implementation, it was found that the new electronic data
transmission system brought many benefits to users of the service, such as the following:
(a) Customs agents nowadays use electronic data interchange with a national coverage of
85 per cent, which is rising towards full coverage;
(b) users can transmit their customs declarations from 8 a.m. to 6 p.m. and receive
authorization to withdraw goods in a maximum of 1 hour and 50 minutes.
Previously, they could submit their declarations only between 8.30 and 9.30 a.m. and
received replies the following day;
(c) 98 per cent of declarations of entry for goods are processed by EDI.  This is the
equivalent of  roughly 2,800 declarations per day, representing 54 per cent of the total
number of customs documents processed;
(d) the number of data inputting errors has fallen from 14 per cent to 2 per cent;(e) a single form has been introduced for the entry of goods;(f) the possibility has been approved of resubmitting an import declaration on the same
day (instead of the following day), and as many times as necessary, until it is error-
free; and
(g) administrative functions have been redesigned, releasing a number of officials for
reassignment to other duties, especially inspection-related-tasks.
Studies are currently in hand on an overhaul of the existing system of electronic data
interchange, with a view to introducing new technology to facilitate, accelerate and reduce the cost ofconsumer access to customs services.
The main new technological advance aims at effecting all transactions via the Internet as a
medium for the transmission of information by foreign trade agents.  This should serve to
substantially increase the number of computers in regional customs offices and ensure the onlineconnection of most customs control points;  foreign trade operators will only be able to transmit data
in electronic form.  The information will be tr ansmitted to the customs service directly by the
originators.
These new technological developments are expe cted to have their main impact in the
following areas:
(a) Considerable improvement in the logistical chain (ports, airports, advance customs
processing, etc.).G/C/W/239
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(b) Customs Agents will no longer need to send their employees to customs offices or
other premises in order to carry out administrative duties.
(c) Improved transparency in customs operations.(d) Savings for the various participants in foreign trade through the use of low-cost and
universally accessible technology.
(e) Release of staff currently engaged in administrative duties, so that they can be
reassigned to other – mainly inspection-related – tasks.
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