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Defining the Soft Infrastructure
            of Border Crossings

                          Donna F. Davis
          Associate Professor, Marketing
         Georgie G. Snyder Professorship
$249 B

                 $276 B



                           $230 B
              $163 B


2010 Bureau of Transportation Statistics




                                           2
3
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
5
Customs   Regulation


   Port                Service
efficiency            structure




                                  6
Soft infrastructure is defined as the
capabilities embedded in human
resources, social structures, and
business and regulatory
environments of border crossings
that facilitate or impede
international trade.


                                        7
8
9
10
“It makes a difference if it‟s
somebody that wants to live
in this part of the
country, rather than
someone who is forced to
live in this part of the
country. That guy who lives
in Wild Horse is probably
one of the nicest ones in the
country.”

Even so, customs and other
border management
agencies in many countries
pay no more than lip service
to trade facilitation.
                                 11
The European Union’s
target is to cut red tape by
25% by 2012.

“The vet comes in at 8:00
and goes home at 5:00.”

                               12
“It‟s hard to know who to
talk to … you keep getting
passed around from one
agency to another.”

A comprehensive
collaborative business
architecture – one that
defines the best
capabilities, organization
structures, processes, compe
tencies, technologies, and
infrastructure – is required.



                                13
“That‟s probably been
our hardest blockage -
the political will to
listen to what the „grass
roots‟ people know.”

Collaborative border
management can
transform how border
management agencies
do their business … to
deliver enhanced
services to compliant
customers.

                            14
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
Improve the soft infrastructure

•   Service orientation
•   Interagency coordination
•   Visible architecture
•   Collaborative capability

In order to …

• Focus on risk-driven intervention
• While facilitating legitimate trade

                                        16
17

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Defining the Soft Infrastructure of Border Crossings

  • 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 $163 B 2010 Bureau of Transportation Statistics 2
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  • 4. 250 Top 5 US Export Markets 200 Canada is the #1 customer for US goods. US$ 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 Service efficiency structure 6
  • 7. Soft infrastructure is defined as the capabilities embedded in human resources, social structures, and business and regulatory environments of border crossings that facilitate or impede international trade. 7
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  • 11. “It makes a difference if it‟s somebody that wants to live in this part of the country, rather than someone who is forced to live in this part of the country. That guy who lives in Wild Horse is probably one of the nicest ones in the country.” Even so, customs and other border management agencies in many countries pay no more than lip service to trade facilitation. 11
  • 12. The European Union’s target is to cut red tape by 25% by 2012. “The vet comes in at 8:00 and goes home at 5:00.” 12
  • 13. “It‟s hard to know who to talk to … you keep getting passed around from one agency to another.” A comprehensive collaborative business architecture – one that defines the best capabilities, organization structures, processes, compe tencies, technologies, and infrastructure – is required. 13
  • 14. “That‟s probably been our hardest blockage - the political will to listen to what the „grass roots‟ people know.” Collaborative border management can transform how border management agencies do their business … to deliver enhanced services to compliant customers. 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 capability In order to … • Focus on risk-driven intervention • While facilitating legitimate trade 16
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