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Mutual Supervision in Preshipment Inspection Programs

Author

Listed:
  • Vianney Dequiedt

    (CERDI - Centre d'Études et de Recherches sur le Développement International - IRD - Institut de Recherche pour le Développement - CNRS - Centre National de la Recherche Scientifique - UCA - Université Clermont Auvergne)

  • Anne-Marie Geourjon

    (FERDI - Fondation pour les Etudes et Recherches sur le Développement International)

  • Grégoire Rota-Graziosi

    (CERDI - Centre d'Études et de Recherches sur le Développement International - IRD - Institut de Recherche pour le Développement - CNRS - Centre National de la Recherche Scientifique - UCA - Université Clermont Auvergne)

Abstract

Preshipment inspection (PSI) programmes are implemented in many developing countries to assist governments in the collection of revenue at their borders. These programmes consist of the delegation of the inspection of imports to a private firm. To study these PSI programmes, we develop a hierarchical agency model in which the government authority can rely on two supervisors, namely the private inspection firm and the customs administration, to control importers' declarations. The government's optimal contract is fully characterized. We devote some attention to the inspection policy and its comparative statics properties. In particular, we identify the situations in which PSI programmes are revenue enhancing. We also discuss the reconciliation policy, i.e. what to do in case of conflicting inspection reports by the inspection firm and the customs administration. In the optimal mechanism, mutual supervision between the inspection firm and the customs administration is used to provide adequate incentives to all parties.

Suggested Citation

  • Vianney Dequiedt & Anne-Marie Geourjon & Grégoire Rota-Graziosi, 2012. "Mutual Supervision in Preshipment Inspection Programs," Post-Print halshs-00726067, HAL.
    • Handle: RePEc:hal:journl:halshs-00726067
    DOI: 10.1016/j.jdeveco.2012.02.005
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Cyril Chalendard, 2015. "Use of internal information, external information acquisition and customs underreporting," Working Papers halshs-01179445, HAL.
    2. Kambale Mirembe, Omer, 2013. "Customs reforms in eastern Congo (DRC): Between norms and practices," IOB Working Papers 2013.04, Universiteit Antwerpen, Institute of Development Policy (IOB).
    3. Ousmane COUNDOUL & Massene GADIAGA & Anne-Marie GEOURJON & Bertrand LAPORTE, 2012. "Inspecting less to inspect better: The use of data mining for risk management by customs administrations," Working Papers P46, FERDI.
    4. Grégoire Rota-Graziosi & Fayçal Sawadogo, 2020. "The tax burden on mobile network operators in Africa," Working Papers hal-03109370, HAL.
    5. Mr. Gilles Montagnat-Rentier & Mr. Gilles Parent, 2012. "Customs Administration Reform and Modernization in Francophone Sub-Saharan Africa, 1995–2010," IMF Working Papers 2012/259, International Monetary Fund.
    6. Ousmane COUNDOUL & Massene GADIAGA & Anne-Marie GEOURJON & Bertrand LAPORTE, 2012. "Contrôler moins pour contrôler mieux : l’utilisation du data mining pour la gestion du risque en douane," Working Papers P46, FERDI.
    7. Cyril Chalendard, 2015. "Use of internal information, external information acquisition and customs underreporting," CERDI Working papers halshs-01179445, HAL.
    8. Rota-Graziosi, Gregoire & Sawadogo, Fayçal, 2022. "The tax burden on mobile network operators in Africa," Telecommunications Policy, Elsevier, vol. 46(5).
    9. Mario Mansour & Mr. Gregoire Rota Graziosi, 2013. "Tax Coordination, Tax Competition, and Revenue Mobilization in the West African Economic and Monetary Union," IMF Working Papers 2013/163, International Monetary Fund.
    10. Grégoire Rota-Graziosi & Fayçal Sawadogo, 2021. "The tax burden on mobile network operators in Africa," CERDI Working papers hal-03118496, HAL.

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    More about this item

    Keywords

    Preshipment inspection; Customs administration; Mutual supervision; Corruption;
    All these keywords.

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out

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