Trade costs for the international supply chain are enormous, even in the absence of formal border barriers. In fact, the costs involved in moving a container physically are less than half the costs of managing the information about the transport activity. Thus, the physical infrastructure in international trade is fairly efficient, but that is not the case for the information infrastructure.
In addressing the complexity of the border activities, both public and private organizations are interested in making the compliance process more manageable and less costly, while still achieving the same level of security and safety. For the government, a well-managed border activity not only improves the revenue but also promotes the ports and increases their competitiveness. Based on the empirical finding, a 1% reduction in the transactional cost in relation to the border compliance process is worth $43 billion. Therefore, it is necessary for all stakeholders, both private and public organizations, to support an effective and efficient border-related compliance process, which can be done through the IT innovation of the compliance process.