Dependence on customs revenue

Compared with developed countries, developing countries depend on customs duties for a much larger proportion of government revenue; and the condition of their administrative apparatus makes it difficult for them to resort to other forms of taxation. This increases the reluctance to accept substantial trade liberalization commitments, particularly with other developing countries.

1. Economic underdevelopment

1. Vulnerability of least developed countries
2. Undue taxation of certain goods and services
3. Trade barriers and protectionism among developing countries
4. Prohibitive cost of travel documents
5. Government financing tied to exploitation of non-renewable resources
6. Decline in public sector savings
7. Corruption of customs and excise officials
8. Absence of coordinated customs services

1. Over-dependency on international financial institutions
2. Inappropriate taxation
3. Economic dependence upon socially undesirable activities

1. Using customs revenue
2. Depending

1. Independence
2. Dependence