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Use of Internal Information, External Information Acquisition and Customs Underreporting

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  • Cyril CHALENDARD

    ()

Abstract

This paper identifies opportunities for improving the performance of revenue-collection authorities. To detect and combat fraud, we argue that revenue-collection authorities should, notably in the absence of reliable third-party information, exploit non-usual sources of information. Specifically, our micro-level study of customs evasion provides evidence that using internal or external available sources of information facilitates customs-enforcement. Estimates highlight that exploiting historical data and/or relying on an information provider — a pre-shipment inspection company —significantly reduces observed trade statistics discrepancies. The potential endogeneity of pre-shipment inspections is addressed by using instrumental variables. Robust to a variety of additional checks, findings notably suggest that governments should work on the introduction of an automatic exchange of information system across customs authorities to substantially offset the informational advantage of the importer.

Suggested Citation

  • Cyril CHALENDARD, 2015. "Use of Internal Information, External Information Acquisition and Customs Underreporting," Working Papers 201522, CERDI.
  • Handle: RePEc:cdi:wpaper:1722
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    References listed on IDEAS

    as
    1. Levin, Jörgen & Widell, Lars M., 2014. "Tax evasion in Kenya and Tanzania: Evidence from missing imports," Economic Modelling, Elsevier, vol. 39(C), pages 151-162.
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    Cited by:

    1. Chalendard,Cyril Romain & Raballand,Gael J. R. F. & Rakotoarisoa,Antsa, 2016. "The use of detailed statistical data in customs reform : the case of Madagascar," Policy Research Working Paper Series 7625, The World Bank.
    2. Joel CARIOLLE & Cyril CHALENDARD & Anne-Marie GEOURJON & Bertrand LAPORTE, 2016. "Décloisonner l’analyse des données pour appuyer la modernisation des douanes : une illustration à partir du Gabon," Working Papers 201618, CERDI.
    3. Joël CARIOLLE & Cyril CHALENDARD & Anne-Marie GEOURJON & Bertrand LAPORTE, 2017. "Going beyond analysis of internal data to support customs modernization: a case study in Gabon," Working Papers P173, FERDI.

    More about this item

    Keywords

    Use of internal information; External Information acquisition; Customs enforcement; Tax evasion; Pre-shipment inspections.;

    JEL classification:

    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • H83 - Public Economics - - Miscellaneous Issues - - - Public Administration
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance

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