Chapter one
1.1 Introduction
Customs administration plays a vital role in the growth of international trade and the development of economy in the country. The efficiency and effectiveness of customs procedure can significantly influence the economic competitiveness of nation. In a highly competitive world environment, international trade and investment will flow toward efficient, supportive and facilitative locations. Customs system and process must not be allowed to serve or be perceived as a barrier to international trade and growth. To avoid harming the increased and diversified trade flows, the customs administrations have to update the procedures according to international standards. In addition, the task of customs has become increasingly difficult because of growing complexity of trade policy due to the proliferation of regional and international trade agreements, the greater sophistication of traders, and the multiple and shifting objectives imposed on customs. So that, Customs policy and regulation has to be refined or upgrade to be more in compliance with WTO and WCO framework and relevant international standards. As a result, because customs has a powerful impact on the economic development, the modernization of its procedure must be a target to eliminate all the challenges and drawbacks associated with international trade transactions. It is obvious that customs reform and modernization has significant benefits to improve the organization efficiency and effectiveness to carry out their operation. However, due to various reasons this modernization program might not achieve its targeted goal. In other words, countries might fail to implement the program efficiently and effectively. Various experience shows that effective and successful customs modernization process generally start with good initial diagnostic work to identify the short comings