Social Intermediary Institutions And Customs Services Outsourcing

Currently, Customs inspection is facing the plight of uncertainty in inspection concept, inspectors' shortage, and lack of inspectors with specialized expertise. National Conference of Customs Directors in 2008 required that "auditing departments should study the use of audit agencies, to actively carry out routine inspection, special inspection and verification inspection". To this end, General Administration of Customs set up a special Task Force, which has been focusing research on the subject of using social intermediary organizations in Customs inspection. This article points out, with theoretical and practical conditions, that Customs departments could achieve separation of steering and rowing. Meanwhile, by four theories:the steering role requirements, the properties of services and goods, the principal-agent theory and the art of calculation, results of the work of intermediary organizations are analyzed.After two years of pilot work, some experience around the practice of the local Customs forms. One clear guiding principle:adhering to the principle of the Customs-led; risk management principle; cooperation and win-win principle. Second, access to exit in the social intermediary organizations and supporting mechanisms: establishing access conditions; starting the selection process; constructing exit mechanism; emphasizing on training mechanism. Third is the development of specific content and standards, which social intermediary organizations should fulfill and abide by, of verification inspection, routine inspection and special inspection,. Fourth, the formation of two modes, commissioned by Customs or by enterprises. Fifth, clear legal basis; the relationship among Customs, intermediary institutions and enterprises; the use of conclusions of the work of intermediary institutions.The local Customs around the practice also highlight some problems:First, how to pay a more reasonable cost to social intermediary organizations. Second, social intermediary agencies lack Customs knowledge. There is difference of methods of work between Customs and intermediary institutions. Social intermediaries are born with the nature of "economic man". Third, in assessing the performance of social intermediaries, we ignore the expense of the process of using social intermediary organizations and the effect of standardizing enterprise management. Fourth, there is risk in social agencies' management and Customs' own management. Paper puts forward solutions:to emphasize the dominant role of Customs; to explore the possibility for companies to pay for special inspections and routine inspections; to reduce information asymmetries and the interest deviation between principals and agents; fully use the performance evaluation of audit work.