Pages: 19

The history of customs in Oman traces back to 1624 when activities began in one of the buildings in Muscat city. During this time, one of the primary functions was the transfer of coffee from Makha in Yemen to Iraq via sea routes passing through Omani ports. Approximately fifty Omani vessels engaged in transporting coffee from Muscat Port to Al Basra Port in Iraq. This historical context underscores the significance of customs responsibilities for the Sultanate of Oman, particularly in terms of duties and taxes during that period. Also, it is known that customs is one of the main players in the economies for countries that depends on the commercial activities. Since 1975, Oman Customs has continuously evolved and improved its operations to adapt to local and global changes. They achieved significant milestones in customs administration and have implemented various initiatives to streamline processes and enhance efficiency. Notably, in 2018, Oman Customs was recognized with the award for the best Integrated Government Project within the Sultan Qaboos Award for Excellence in Electronic Government Systems, highlighting its commitment to innovation and excellence. As a result, importing goods to Oman requires that companies to register with the Ministry of Commerce, Industry, and Investment (MOCIIP) using the Bayan digital platform. This platform serves as a centralized electronic window connecting all customs partners, including government agencies, shipping and clearing companies, commercial banks, and operators of ports and airports. Through Bayan, businesses can streamline the importation process by consolidating necessary documentation and communication channels. This chapter aims to explore into the customs duties and taxes imposed by Oman Customs authority, as well as the procedures for customs clearance. Additionally, it will explore the advantages of implementing the Customs Bayan System, which is the electronic customs clearance system adopted by Oman Customs Authority. Moreover, it will shade the light on the Transformation of Customs Procedures from1990s till 2015, and it impact its economy and different stakeholders. Additionally, it will provide insights into Oman’s current position in the Global Logistic Performance Index (LPI) of 2023, reflecting its standing in international trade and logistics efficiency. It is found that Oman Customs and custom clearance process have evolve and changing through time; however, the great shift happened after the digitalization. Oman government via Customs Authority realized the importance and needs of efficient integrated system to manage the increase volume of trade and to streamline the import and export processes. Thus, the implementation of “Bayan” system results in modernizing and simplifying the custom’s procedures and responds to the rapid changing in technology and competitiveness expansion in the global trade market. Due to lack of studies in Omani logistic performance, it is advisable to evaluate the experiences of different stakeholders such as (importers, exporters, shipping companies, and customs broker) with the Bayan system, focusing on its usability, overall effectiveness, and identifying areas for improvement.

Pages: 17

Customs in the third millennium is playing another role different from that traditional one played in most countries. This change was a result of many reasons that occurs everywhere in the world. In this research, we named these causes “strategic transformation requirements.” Strategic planning is a management science with well-known scientific strategies and methodologies applying these scientific methodologies to customs administration requires experience, skill, and a work team that is qualified and trained. This study provides what represents the minimum level of knowledge required for strategic planning for customs development. The study aims to highlight the roadmap of strategic planning in customs to provide assistance to customs administrations that are undergoing development and modernization, to comply with international agreements and global trends in customs performance in the third millennium.

Pages: 14

This paper examines the fundamentals of taxes and customs, clarifying their functions in generating income, controlling commerce, and promoting economic growth. It showcases the framework of the system and customs law, looking at how they affect domestic businesses, consumer behaviour, and government finances. It also covers the strategic significance of customs duty and taxes in negotiating trade agreements, forming commercial connections, and defending national interests. This research also depicts a few difficulties in the former tax system and recommends a few changes that need to be incorporated to optimise the effectiveness of the existing tax system and customs policies in India. Finally, this research provides a comprehensive summary of Indian customs law and taxation in India, thereby transforming into an effective resource for scholars, practitioners, and decision-makers who want to grasp the fundamentals of taxation and customs in the world economy.

Pages: 22

Value-added tax (VAT) can be considered progressive because it affects consumers with higher incomes more than those with lower incomes because they spend more and have different purchasing habits, consuming both needs and luxuries. To comprehend the implications of the tax on Sultanate customers, it is necessary to look at such purchasing patterns and the effect of VAT on the final consumer. Because VAT is primarily applied to consumer items and may affect a sizeable portion of the economically backward, its administration requires a rigorous and comprehensive approach to the welfare of all populations, but particularly those who are less fortunate. Depending on how VAT is designed, different communities and economies will be affected differently. By providing VAT refunds to visitors to the Sultanate, the government is attempting to mitigate the negative effects of VAT on the travel and tourism industry. The reliability test illustrates a high value of consistency, the frequency distribution of the study assists the researchers to identify the right conclusion by addressing the incidence of the data set, and demographic statements show the feasibility of the instrument. Factor analysis reduced the variables into fewer and more meaningful. KMO tests show the intensity of each variable, and communalities among the variables arrived partial component analysis extraction has well represented each other variables in the study. The study concluded with the grouping of regulative VAT recognition, approachable VAT vision, and comprehending investment intention. The study highlighted there has been the highest amount of association for the awareness that banking services are chargeable under VAT and the lowest amount of association for the knowledge that VAT can reduce the fiscal deficit in the economy. The study also emphasized significant factors, viz. awareness of the consumers, knowledge of the consumers, attitude of the consumers, and understanding of the consumers of VAT.

Pages: 29

The recent developments in technology have provided a platform for tax administrators to modernise their tax administration systems. Research has shown that African tax systems need modernisation. The aim of this chapter is to explore the use of the latest technology developments to determine if they can improve the administration of excise and customs tax. Excise and customs contribute up to a third of revenue collected in African countries. The chapter demonstrates that technology is a key tool to improve the administration of excise and customs tax. Doing so can significantly improve domestic resource mobilisation. As will be shown, domestic resource mobilisation is a key contributor to public finance in most African countries. The findings suggest that improving resources such ICT and infrastructure can prove pivotal in modernising excise and customs administration.

Pages: 19

The presence of artificial intelligence (AI) has changed business practices and has had an impact on employment and professions. This chapter discusses the influence of artificial intelligence (AI) on custom and taxation management processes (Warwick, 2011). It will begin by AI definition, providing an overview of the new technologies that will enhance the efficiency and accuracy of taxation and customs management/operations. The discussion will include how AI predictive analysis can automate routine tasks; there will be case studies that will illustrate improvements in operational efficiency. The chapter will also examine AI’s role in tax evasion and fraud detection, illicit trade through advanced algorithms and risk profiling. It will also highlight the benefits of AI in improving regulatory compliance and enforcement and audit capabilities (Bose, 2019). The challenges and opportunities such as data privacy and algorithmic biases in the implementation of AI will be given priorities for careful consideration of ethical implications. It will also explore and identifies emerging trends including intelligent automation, IoT, and AI with cybersecurity. And lastly, it will discuss the need for collaboration or working together among authorities and agencies to address the workforce changes due to new technologies like AI advancements considering the importance of skills improvement and development and adapting to new technological environment.

Pages: 35

This chapter discusses how artificial intelligence (AI) and machine learning (ML) act as powerful transformers in fraud detection attempts, hence improving overall compliance in a world faced with increasingly complex tax systems. First, it exposes various techniques of tax evasion and the deficiencies of traditional approaches used in the detection to support the demand for innovative technological solutions. The tax authorities are desperately trying to find out the anomalies and emerging patterns of fraud by applying sophisticated AI and ML algorithms on large datasets including tax returns and financial transactions. This chapter describes the basic infrastructure that is needed for the actual implementation of AI. It also lists a few real-life case studies that shall introduce the reader to some successful applications. It also covers ethical considerations and privacy concerns, putting weight on the need for transparency and fairness in algorithmic decision-making. It considers legal and regulatory barriers among other challenges, strategies that could be implemented for international cooperation, and data sharing. Such work culminates into an integral roadmap for tax agencies desirous of adopting AI/ML and underlines the importance of these technologies in driving efficiency, accuracy, and proactive fraud detection within tax administration.

Pages: 27

This chapter examines the critical role of digital advancement and artificial intelligence (AI) in enhancing the operational efficiency of accounting software, specifically within tax and customs administrations. By leveraging AI technologies, authorities are able to automate labor-intensive processes, optimize tax compliance, and mitigate the risks associated with legal disputes. The chapter focuses on the Sultanate of Oman’s tax and customs authorities, showcasing how AI implementation facilitates more efficient tax collection, customs duty compliance, and the detection of anomalies within transactional data. The integration of AI-driven analytics enhances risk management by identifying patterns indicative of tax evasion, under-declaration, and customs violations, thereby reducing the likelihood of costly legal appeals. Furthermore, AI contributes to streamlining processes such as real-time reporting, fraud detection, and regulatory adherence, ultimately fostering transparency and accountability. The chapter also addresses the challenges encountered during AI adoption, including the need for specialized skills, data governance concerns, and integration with existing systems. The findings emphasize AI’s potential to revolutionize tax and customs frameworks by enhancing accuracy, minimizing administrative burdens, and promoting adherence to both national tax laws and international trade protocols. Through these advancements, tax authorities can achieve greater revenue efficiency and reduce the frequency of disputes and appeals.

Pages: 13

Internet Penetration and the COVID-19 pandemic have led to the digital transformation of trade. Many businesses have tapped into this transformation to grow and increase their market base. These digital transformations have led to an increase in employment opportunities and incomes but on the other hand, brought a challenge to the tax authorities on how to tap into this income which would significantly help the economy grow. The main industries in Kenya are agriculture, construction, manufacturing, mining, financial services, tourism, textiles, and automotive sector. Taxation is the main way the country gains income to fund its operations, therefore, it would be gainful if they tapped into taxes derived from digital income. This chapter through a critical literature review assessed the challenges and possible solutions to taxation of the digital economy. The research found out that taxing the digital economy would increase government income which would facilitate economic growth, but on the other hand if not done correctly would hinder the growth of digital businesses.

Pages: 11

The study investigates the effect of digital transition on Egypt’s customs authority, particularly through the implementation of the Advance Registration System (ACI). By analyzing customs revenue data from 2019 to 2023, the research demonstrates that digitalization significantly enhances the efficiency of customs revenue collection. This transition not only streamlines processes but also positively affects public revenues and the broader Egyptian economy. The findings highlight that the digital transformation efforts are crucial for improving governance, transparency, and combating customs evasion, ultimately leading to a more stable economic environment. The results indicate a notable increase in customs revenues following the adoption of the ACI system, underscoring the importance of technological integration in enhancing fiscal performance.

Pages: 21

This study explores the US–China trade spat, examining its reasons and effects on global commerce. PESTLE analysis (political, economic, social, technological, legislative, and environmental factors) identifies the key factors influencing their economic relationship. The timeline shows the escalation of tensions under the Trump administration, with reciprocal tariffs and restrictions on Chinese companies such as Huawei and ZTE. The consequences include a diversification of trading partners, a drop in foreign direct investment (FDI), and a transformation into a technological war. The World Trade Organization (WTO) ineffectiveness in resolving the conflict is also highlighted. Despite US efforts to reduce the trade deficit, results remain mixed, and China is redirecting its exports to other markets, notably via the “Belt and Road” Initiative (BRI). Under the Biden administration, tensions persist, but a total economic separation between the two countries seems unlikely in the short term. This trade war has not only affected the American and Chinese economies but has also reconfigured global trade flows, underlining the interconnectedness of the modern global economy.

Pages: 11

This chapter presents a comprehensive review of blockchain technology application in value-added tax (VAT) collection. It explores advantages and challenges associated with utilizing blockchain for VAT collection. The chapter analyses also the contexts of adopting blockchain in taxation. This chapter can serve as exploration and review of the existing literature of using blockchain in VAT collection. It also can help nonspecialist readers on blockchain understanding the application of blockchain on VAT collection with a detail analyses of benefits and challenges and state of the art of the real word application of this type of collection. This comprehensive review can be a guide for academics, industry practitioners, and policymakers interested in the digitalization of tax systems.

Pages: 16

The integration of Artificial Intelligence (AI) into customs and taxation systems represents a major development in enhancing the efficiency and effectiveness of the administration of international trade and the collection of revenues. This paper examines the various impact of AI technologies on customs and taxation, highlighting how such innovations as machine learning, predictive analytics, and natural language processing transform these conventionally manual domains. From automated risk assessments to real-time data analysis, AI has introduced unparalleled efficiency and accuracy in customs procedures, ensuring much faster processing times while being able to detect and deter more fraud cases. In terms of taxation, it facilitates smooth processes about the filing of taxes, auditing, and other compliance matters. The paper discusses the role of AI in improving the accuracy of tax audits, minimizing human errors, and ensuring accurate tax collection. More importantly, the study highlights the wider implications for policymakers of AI in terms of regulatory frameworks that will have to keep pace with rapid technological change. Challenges such as data privacy concerns, ethical considerations, and the loss of jobs due to automation are examined. The paper also reflects on the future path of AI in customs and taxation, proposing potential directions of its development and integration. The research, underpinned by theoretical and case analysis, has emphasized AI as a catalyst for innovation in custom and taxation that will create a more secure, transparent, and effective international trade and taxation system.