Defining the Soft Infrastructure of Border Crossings

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Texas Tech University Research Partnership
Defining the Soft Infrastructure of Border Crossings
Donna Davis, Associate Professor, Marketing Area, Rawls College of Business, Texas Tech University

More in: Business
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  • 1. Defining the Soft Infrastructure of Border Crossings Donna F. Davis Associate Professor, Marketing Georgie G. Snyder Professorship
  • 2. $249 B $276 B $230 B $163 B2010 Bureau of Transportation Statistics 2
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  • 4. 250 Top 5 US Export Markets 200 Canada is the #1 customer for US goods.US$ Billions 150 100 The US is the #1 customer 50 for Canadian goods. 0 Canada Mexico China Japan United Kingdom 2010 US Census Bureau 300 Top 5 Canadian Export Markets 250 200 US$ Billions 150 100 50 0 United States All other countries Other European Union OECD Other United Kingdom Japan 2010 Statistics Canada 4
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  • 6. Customs Regulation Port Serviceefficiency structure 6
  • 7. Soft infrastructure is defined as thecapabilities embedded in humanresources, social structures, andbusiness and regulatoryenvironments of border crossingsthat facilitate or impedeinternational trade. 7
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  • 11. “It makes a difference if it‟ssomebody that wants to livein this part of thecountry, rather thansomeone who is forced tolive in this part of thecountry. That guy who livesin Wild Horse is probablyone of the nicest ones in thecountry.”Even so, customs and otherborder managementagencies in many countriespay no more than lip serviceto trade facilitation. 11
  • 12. The European Union’starget is to cut red tape by25% by 2012.“The vet comes in at 8:00and goes home at 5:00.” 12
  • 13. “It‟s hard to know who totalk to … you keep gettingpassed around from oneagency to another.”A comprehensivecollaborative businessarchitecture – one thatdefines the bestcapabilities, organizationstructures, processes, competencies, technologies, andinfrastructure – is required. 13
  • 14. “That‟s probably beenour hardest blockage -the political will tolisten to what the „grassroots‟ people know.”Collaborative bordermanagement cantransform how bordermanagement agenciesdo their business … todeliver enhancedservices to compliantcustomers. 14
  • 15. SHIFT from …• Regulatory control toward compliance management• Multiple agency databases toward single view of the trade customer• Transactions toward trusted partnerships• Bottlenecks at the physical border toward seamless clearance at the virtual border 15
  • 16. Improve the soft infrastructure• Service orientation• Interagency coordination• Visible architecture• Collaborative capabilityIn order to …• Focus on risk-driven intervention• While facilitating legitimate trade 16
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