The Impact of Emerging Technology on International Trade: a Case Study of the Three-dimensional (3d) Printing and Customs Authorities in the East African Community

Abstract

The study sought to examine how emerging technology has affected international trade in general and the role of customs authorities in particular. The study zeroed in on how threedimensional printing-a form of additive manufacturing that allows manufacture of everyday products via printing from a computer assisted design will affect the role of customs authorities in the world. This new form of printing is contrasted with the earlier printing that not only revolutionized the world changing the way things were done, but also literary rendered the previous gatekeeper-the scribes-jobless. Taking a case study the East African Community, the study sought to establish the impact of emerging technology on international trade, evaluate the extent to which 3D printing affects the role of customs authorities in the region and to explore the options available to customs authorities in the region to mitigate the adverse effects of 3D printing. It took an historical approach looking at emerging technologies at various points in time starting from the first industrial revolution through to the fourth industrial revolutions that combines cyber-physical aspects. The study found out that technologies can be grouped into five broad groups namely power delivery systems, materials, and transportation and information communication technologies. These technologies have increased international movement of goods which has invariably affected the role of customs authorities not only increasing the revenue collected but also making it more and more challenging to protect their borders but also facilitate trade. The study employed two key theories-Diffusion of Innovation Theory and Economic Theory of Customs Taxation. Diffusion of innovation theory that looks at adoption rate of a new idea or technology by society was the main theory. The study utilized a mixed method approach looking at both primary and secondary data. Three East African countries namely; Kenya, Rwanda, and Tanzania were chosen as the study sites and samples drawn therefrom. Key informants were interviewed as well as focused group discussions supplemented by questionnaires administered in the study site. The study found out that revenue collection, border protection and collection of international trade statics are among key mandates of customs authorities that will be negatively impacted and that measures need to be put in place urgently to counter the effects. It is the view of this study that a multi-agency and multi-pronged approach that holistically looks at the effects of 3D printing be employed to counter the potentially negative impact of 3D printing.