CORRUPTION IN MARITIME INDUSTRY

Type of corruption in Maritime Industry.

Types of Corruption in Maritime Industry

Corruption in Maritime industry is the corruption that committed by people who works

in maritime industry by having an illegal dealing with their clients to complete a

required task or work. Corruption comes in many forms and the majority cases are

registered under bribery.

SOURCE : GOOGLE

Firstly, illegal payments or facilitation payments to Custom officers. In the shipping

industry there is a big challenge for low value amounts demanded by public officials to

facilitate post operations. The study shows that custom clearance is the second

highest reasons for corruption. The custom officials are bribe to ensure customs

procedure are completed and expedited. Furthermore, they bribe to turn a blind eye to

certain procedure requirements so the tax liability can decrease. Moreover,they are

also bribed to enable the smuggling of illegal substances into the import country.

SOURCE : GOOGLE

Secondly, bribes paid to gain contract. Where large shipping and business vessel

organizations are included, they all the time offer for long term contracts from large

scope producers/exporters. This offering procedure can make open doors for

corruption,as the exporter could be actuated to demonstrate favor to specific bidders.

SOURCE : GOOGLE

Lastly,under-invoicing. the exporter may get a solicitation from the importer to declare

on the receipt to sent along the products that the product is of lower value than the

original deal cost.Regularly,the reason behind"under-invoicing" is to down play the

announced estimation of the products for nearby traditions reason to doge customs

obligations and import charges at that point of importation. The issuance of a false

business receipt upon a buyer's solicitation could comprise an infringement of the

books and records arrangement of the FCPA.

SOURCE : GOOGLE

THANK YOU GUYSSS :)

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