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Import processing and trade costs

Jeronimo Carballo, Alejandro G. Graziano, Georg Schaur and Christian Volpe Martincus

Journal of International Economics, 2025, vol. 154, issue C

Abstract: We estimate import processing costs based on the time it takes to import. To do so, we first develop a theoretical model that extends existing time-cost measures to account for uncertainty in import processing. Second, we use detailed, highly disaggregated data on import processing dates and import values to provide estimates of processing costs that are consistent with the theory. This evidence indicates that our extensions to time-cost estimates are economically relevant to determining processing costs. According to our estimates, the tariff equivalent import processing cost is as high as 18 percent. WTO estimates suggest that the full implementation of the 2013 Trade Facilitation Agreement would reduce the time to trade by 1.5 days. In that case, processing costs would decrease to 13 percent.

Keywords: Trade costs; Border processing; Trade policy (search for similar items in EconPapers)
JEL-codes: F10 F13 F14 (search for similar items in EconPapers)
Date: 2025
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Working Paper: Import Processing and Trade Costs (2023) Downloads
Working Paper: Import Processing and Trade Costs (2021) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:eee:inecon:v:154:y:2025:i:c:s0022199625000169

DOI: 10.1016/j.jinteco.2025.104060

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