No 61 FEBRUARY 2010 W CONEWS www.wcoomd.org
Customs-Business Partnerships:
Customs - Business Partnership combiningPartenariat Douane - Entreprisesour talents!
ena part rIat WCO Data Model: CoopérationWCO data Model Innovation cross-border transactions on the fast track facilitation receives a boost
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2 WCO News – No 61 – February 2010 Customs - Business Partnership Partenariat Douane - Entreprises Content WCOw Ne s n° 61 February 2010
4 Calendar 36 In conversation • M r. Jean Rozwadowski, Secretary General of the 5 Editorial International Chamber of Commerce • M r. Thomas Schoeneck, Chairperson of the WCO Finance 6 Buzz Committee
9 Flash Info 41 Our Members world
15 Special Dossier 47 Zoom • Information, consultation and cooperation; the main • Tunisia's General Directorate of Customs ingredients of the WCO-Trade partnership • TAXUD talks business 48 Point of View • Customs and business: partners in fighting illegal • The success story of the Montreal Protocol on Substances movements of hazardous waste that Deplete the Ozone Layer • Focusing Customs on client service • The role of the private sector in trade facilitation 51 Events • UNEP’s Public-Private Partnership strengthens Customs’ • Fifth Global Congress on Combating Counterfeiting and environment protection role Piracy, Cancun (Mexico) • Mozambique maximizes revenue collection and enhances • WCO International Customs Day celebration, Brussels trade facilitation through an innovative public-private (Belgium) cooperation initiative • “Green Customs” Forum, Jeju (Republic of Korea) • Trade facilitation and Customs modernization through a • WCO Revenue Management Conference, Brussels partnership with the trade (Belgium) • T ransforming Customs-Business relations: Peru’s experience • 1st OWC Forum on Technology and Innovation, Brussels • A public-private partnership on integrity: Morocco opens (Belgium) its observatory • 4th PICARD Conference, San Jose (Costa Rica) • W CO IT Conference & Exhibition: a testament to effective partnerships
Director of Publication Electronic addresses Editorial note D/2010/0448/2 Kunio Mikuriya WCO News is distributed free of charge in French and in Editorial & Subscriptions English to Customs administrations, international organi- Copyright © 2010 World Customs Organization Editor in Chief [email protected] sations, non-governmental organisations, the business All rights reserved. Requests and enquiries concerning Danielle Maïano community and other interested readers. It should be translation, reproduction and adaptation rights should Advertising mentioned that opinions expressed in WCO News are be addressed to [email protected] Editors [email protected] those of the contributors and do not necessarily reflect Grant Busby the official views of the World Customs Organization. Acknowledgements: The Editorial Team wishes to Laure Tempier Publisher Contributions in English or French are welcome but should express its sincere gratitude to all who contributed to World Customs Organization be submitted not later than 9 April 2010. In this regard, this publication. Online subscriptions Rue du Marché, 30 the WCO reserves the right to publish, not to publish, http://www.wcoomd.org/ B-1210 Brussels or to edit articles to ensure their conformity with the Pictures: Our sincere gratitude also goes to all who kindly home_press_wco_news.htm Belgium magazine’s editorial policy. The WCO Communication provided photos, logos and drawings to illustrate this issue. Service is available to attend to all requests for subscrip- Advertising Tel.: +32 (0)2 209 94 42 tions, submission of contributions for consideration, and Design: www.inextremis.be Fax: +32 (0)2 209 92 62 any other enquiries relating to WCO News. Please e-mail [email protected] [email protected] www.wcoomd.org Bernard Bessis
WCO News – No 61 – February 2010 3 CLNDA E A R Calendar of Events It should be noted that these meetings are mentioned for information purposes and are not all open to the public. Training workshops are aimed at the private sector. Unless otherwise indicated, all meetings are held in Brussels. Please note that these dates are indicative only and may be subject to change. This document is regularly updated on the WCO Members’ web site, under the “Information for delegates” section, and on the WCO public web site, www.wcoomd.org , under the “Events” section.
February 15 - 16 Audit Committee (4th Meeting) 17 - 18 EastWest Institute Worldwide Security Conference (7th Meeting) 22 - 23 Publications Focus Group (3rd Meeting) 25 - 26 Revised Kyoto Convention Management Committee (8th Meeting) 26 Administrative Committee for Istanbul and ATA Conventions (10th Meeting and 7th Meeting respectively)
March 1 Permanent Technical Committee (187th/188th Sessions) 2 - 3 Permanent Technical Committee/Enforcement Committee (Joint Meeting) 4 - 5 Enforcement Committee (29th Session) 8 Rights Holders Consultative Group 9 WCO/UPU Contact Committee (30th Meeting) 10 - 11 Training Workshop on SAFE and AEO concept 11 - 12 WCO West and Central Africa Region: Bamako (Mali) 11 - 12 Harmonized System Committee Working Party 15 - 16 WCO Europe Region: Ohrid (The Former Yugoslav Republic of Macedonia) 15 - 26 Harmonized System Committee (45th Session) 29 – 01/03 Finance Committee (89th Session)
April 7 - 8 Training Workshop on WCO Data Model Version 3.0 8 - 9 Training Workshop on Harmonized System: 2012 Amendments 12 -16 Technical Committee on Customs Valuation (30th Session) 19 - 21 Capacity Building Committee (1st Session) 21 - 22 Integrity Sub-Committee (9th Session) 23 Regional offices for Capacity Building/Regional Training Centres 26 - 27 Private Sector Consultative Group (14th Meeting) 26 - 27 SAFE Members-Only Meeting 28 - 29 SAFE Working Group (6th Meeting) 27 - 30 WCO Asia/Pacific Region: Seoul (Korea) 28 - 30 WCO IT Conference: Dublin (Ireland)
Mai 2 3 - Harmonized1 System Review Sub-Committee (40th Session) 10 - 14 WCO East and Southern Africa Region: Kampala (Uganda) 20 -21 WCO Counterfeiting and Piracy (CAP) Group (2nd Meeting) 24 - 25 WCO Americas Region: Antigua (Guatemala) 27 - 28 COMALEP Meeting: Antigua (Guatemala)
June 1 - 2 Training Workshop on HS General Interpretative Rules 3 - 4 Data Model Project Team 15 - 16 Training Workshop on Customs Valuation and Transfer pricing 15 - 16 Training Workshop on WCO Data Model Version 3.0 21 - 23 Policy Commission (63rd Session) 24 - 26 Council Sessions 115th/116th
Upcoming events: 28 - 30 September 2010: 5th PICARD Conference Abu Dhabi (UAE) 10 – 13 November 2010: 14th International Anti-Corruption Conference (IACC), Bangkok (Thailand)
4 WCO News – No 61 – February 2010 EDOR I T I al
Dear colleagues and partners,
One need only reflect on the past twelve months to understand the need to step back, put events into perspective and lay down markers in order to make greater sense of an extremely volatile international environment.
New ideas, questioning, forward planning, dialogue, exchanging experiences and sharing knowledge form the basis of our capacity to take initiatives and action, and boost our ability to change and modernize. We must build this new dimension into our daily lives and look beyond the short-term if we are to more fully grasp the complexity of today’s world, understand interactions and take on board the interdependence between players in international trade against the backdrop of a globalized economy. This should be our goal for 2010.
With this in mind, the WCO’s theme for the next twelve months will be “Customs-Business Partnerships”, and who better than our international trade partners with whom we can share the concerns of the global Customs community. It is through partnership built on efficiency, modernity, transparency, dialogue and trust that we will be able to make the most of our resources and enhance our performance in the interest of moving forward and building our future.
This edition’s Special Dossier focuses on these partnerships and contains a number of accounts from both Customs and the private sector which I hope will contribute to a forum of ideas and the exchange of cultures, as well as to sensitis- ing ourselves about the key challenges facing us in the 21st Century.
Enjoy reading this edition.
Kunio Mikuriya S ecRETARY General
WCO News – No 61 – February 2010 5 f l a s h i n f o Buzz • Alert chapter is introduced by a highlights sec- • Accessions UNESCO has launched a campaign to pro- tion that identifies the most salient trends The WCO now has 176 Members: tect Haiti’s cultural heritage from being in the data, including the first quarter of On 17 November 2009, the Republic pillaged, notably the art collections in the 2009, and illustrates them with numerous of Vanuatu deposited its instrument of country’s damaged museums, galleries charts and maps. This publication is avail- accession to the Convention establishing and churches. WCO Members have been able for download free of charge from the a Customs Co-operation Council with the requested to step up their vigilance. WTO Web site: www.wto.org/english/ Belgian Government. http://portal.unesco.org/culture/en news_e/news09_e/stat_28oct09_e.htm Recent accessions to the Revised Kyoto • Info Global Enabling Trade Report 2009 Convention: Biodiversity The Report sets out, for 121 economies - 16 August 2009, Sudan The United Nations has declared 2010 to worldwide, the benefits of and obsta- - 26 January 2010, Fiji Islands be the International Year of Biodiversity cles to engaging in international trade. with the slogan: “Biodiversity is life. Bio- This second edition of the Report, pub- • Appointments diversity is our life”. lished by the World Economic Forum, is Recently appointed Directors General of www.cbd.int/2010/welcome extremely significant as it was produced Customs: at the height of the crisis which signalled Mr. Raphaël Lawy (Central African Republic); TARA OCEANS a return to protectionist tendencies and a Mr. Jesper Skovhus Poulsen (Denmark); The TARA OCEANS scientific exploration decline in global trade. Market access, the Mr. El Hadj Alpha Yaya Diallo (Guinea); mission (see WCO News No. 60, Octo- Customs administration, the transport Mr. Antanas Šipavičius (Lithuania); ber 2009), aimed at educating the public and communications infrastructure and Mr. Javier Contreras Saguler (Paraguay); about the crucial role played by oceans the trade environment are factors used Mr. Mouhamadou Matar Cisse (Senegal); and the impact of global warming, is con- to analyse countries’ degree of openness Mr. Somchai Sujjapongse (Thailand); tinuing on its three-year odyssey. You can to trade. M r . M a k s u t M e t e ( T u r k e y ) ; monitor the progress of this expedition www.weforum.org/getr Mr. Mohammed Mansour Zemam (Yemen). and keep abreast of events taking place in the “ports of call” via the website. • On the front page • For your diary! http://oceans.taraexpeditions.org Counterfeiting: the genuine exhibition 135 - 2 March: 15th fMeeting o the Confer- about fakes ence of the Parties to CITES, Doha (Qatar) • Get reading The City of Science and Industry in Paris 26 April: World Intellectual Property Day Globalization and informal employment (France) is hosting an interactive exhibi- 28 - 30 April: WCO IT Conference & in developing countries tion using experiments to test our ability Exhibition, Dublin (Ireland) A joint study by the ILO and the WTO has to distinguish between a genuine product 5 June: World Environmental Day found that the high incidence of informal and a fake; quizzing visitors about their 26 June: International Day Against Drug employment in the developing world sup- shopping habits and unveiling all the lat- Abuse and Illicit trafficking presses the ability of countries to benefit est methods for combating this practice. 26 - 27 June: G20 Summit, Toronto (Canada) from opening trade by creating poverty The exhibition will run from 20 April 2010 10 - 13 November: 14th International Anti- traps for workers in job transition. Levels to 13 February 2011. Corruption Conference (IACC), Bangkok of informality vary substantially across www.cite-sciences.fr/english/index.php (Thailand) countries, ranging from as low as 30% in some Latin American countries to more • Current events • In memorium than 80% in certain sub-Saharan African In February 2010, the Heads of State of With regret, the WCO Secretariat informs and South Asian countries. This study can the European Union appointed the new you of the following deaths: be downloaded free of charge from the European Commission, made up of 27 - Mr. Godfrey Kabozu, Director General WTO Web site: www.wto.org/english/ Commissioners, for a five-year term. of Namibian Customs, on 29 July 2009. news_e/pres09_e/pr574_e.htm Mr. László Kovács, European Commis- - Mr. Michel Danet, former Secretary Gen- sioner for Taxation and Customs Union, eral of the WCO, on 10 December 2009. WTO International Trade Statistics 2009 is replaced by Mr. Algirdas Gediminas This new edition provides details of mer- Šemeta. chandise trade by product and trade in http ://ec.europa.eu commercial services by category. Each
6 WCO News – No 61 – February 2010 7 f l a s h i n f o
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IRCOP’s objective is to build drug will carry out a one-week evaluation Aenforcement capacities in some mission in each of the chosen countries. ten or so international airports in West The first mission will take place in Dakar Africa, as well as in Morocco and Brazil. (Senegal) and will serve as an opportu- The Project is aimed at improving inter- nity to meet Ministerial authorities that service coordination through the estab- are stakeholders in this Project, in order lishment of Airport Anti-Trafficking Units to look into the feasibility of setting up (AATUs), the provision of training on tar- by the WCO and INTERPOL in close coop- an AATU and to estimate infrastructure, geting, research and inspection methods eration with WCO Members and the rel- equipment and training requirements. and, finally, the development of inter- evant RILOs. national cooperation through the use of The AIRCOP AATU mechanism will be real-time secure communication systems As the Project is entering its operational evaluated and tested on a regular basis and access to international databases. phase, the WCO will provide participating through joint regional operations. Customs officers and other enforcement agencies with access to the CENcomm Operation “COCAIR2” that will be rolled secure communication system, which will out in the course of 2010 lies fully within be tailored to AIRCOP’s specific require- the scope of this Project and will take up ments. INTERPOL will make its own secure the key aspects of the operational mecha- system, I-24/7, available to Police services. nism for “COCAIR1”, whose outstanding results exceeded all initial expectations. The Project, which is being funded by the During the first quarter of 2010, a team European Commission, is being coordi- of experts comprising a representative of More information nated by the UNODC and implemented each of the three partner organizations [email protected]
Shaping the future: the new WCO Capacity Building Committee Capacity Building Committee Format Orientation and Strategic Discussion Dialogue and Sharing Topical Issues and ll 176 Members of the WCO will ben- Decisions Providing direction that Experience Achievements Obtaining Members’ guid- defines how capacity Opportunity for Members Assessing progress, discuss- Aefit from the new Capacity Building ance and commitment on building can contribute to to learn and exchange ing cross-cutting capacity Committee. The involvement of academia, the delivery & evaluation developing Customs in the best practices to overcome building issues and examin- of Customs capacity build- 21st Century capacity building chal- ing standards, instruments donors and private sector bodies also sig- ing in the future lenges and tools nals enormous opportunities for develop- ing and developed WCO Members. It is hoped that as many Members as possible Presentations will take the opportunity to participate in Working Groups Exhibitions shaping the future for what is still a priority responsibility for the WCO. Plenary Discussion and Decisions Establishing the Capacity Building Com- mittee is the final and most important building block of the WCO’s capacity through a combination of plenary discus- April will be held back-to-back with the building infrastructure. In 2002/2003 sions, working groups, Members and invi- Integrity Sub-Committee meeting from Members committed to the current sus- tational presentations as well as exhibits in 21-22 April. These meetings will be fol- tainable capacity building strategy. This the margins of the meeting. The meeting lowed by the meeting of the Regional Committee will ensure that leadership will concentrate on both strategic perspec- Offices for Capacity Building and Regional and momentum for coordinated and tives and practical results. Training Centres on 23 April. resourced capacity building continues. To ensure the effective management of The proposed innovative format for meet- time and resources, the first meeting More information ings is designed to encourage participation which will take place this year from 19-21 [email protected]
WCO News – No 61 – February 2010 9 f l a s h i n f o
Counterfeiting, the genuine exhibition about fakes he f city o Science and Industry will For that reason, this exhibition provides an opportunity to take part Thold and exhibition organized by in some experiments designed to alert us to counterfeits: visitors can Uniscience at La Villette (Paris) from 20 test their ability to distinguish between a genuine product and a fake; April 2010 to 13 February 2011 on “Coun- guess “who copied who” in the art world; and complete a quiz about terfeiting, the genuine exhibition about their shopping habits. The exhibition also unveils all the lat- fakes”, in partnership with the National est methods for combating this practice which has Industrial Property Institute (INPI), and extremely serious economic and human with the support of the National Anti- consequences. Counterfeiting Committee (CNAC), French Customs and the Union of Manu- After showing in facturers (UNIFAB). Paris, part of the exhibition cover- Fake, replica, copy, imitation, falsifica- ing some 250 m2 is tion, piracy... The nuances between these scheduled to tour words speak volumes about the many France and Europe. forms of counterfeiting. Contrary to popular belief, it is not only luxury goods which fall prey to counterfeiting, but also pharmaceuticals, foodstuffs, household appliances, toys and much more. In fact, counterfeiting affects all branches of More information industry and every consumer! www.cite-sciences.fr
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Tacking stock of the illegal ivory trade
lthough the trade in ivory from Asian Other Asian countries have also reported continental Africa – the major exception Aand African elephants has been seizures. On 21 May 2009, Customs offic- being Kenya, where important interceptions banned since 1975 and 1989 respec- ers in Manila seaport opened two contain- of attempted smuggling regularly occur at tively in all 170 countries signatory to ers from Dar Es Salaam two months after Jomo Kenyatta International Airport. the Convention on International Trade in they had arrived as no one had turned up Endangered Species (CITES), illegal and to claim them. A total of 4,837kg of ivory In 2009, Kenya Customs seized 61 whole unregulated trade continues to occur in tusks were found concealed in sacks of tusks of raw ivory weighing 532kg in a many parts of the world, primarily Africa plastic scrap sheeting. A seizure by the Kenya Airways warehouse in Nairobi on and Asia. 29 September as a result of a joint operation in collabo- In 2009, there were significant seizures ration with other agencies. of large quantities of ivory by Customs The four boxes of unaccom- authorities. Such interceptions have led to panied luggage, declared adjustments in plans of those who organ- as a “Polishing bench”, was ize this smuggling. This can particularly due to fly to Addis Ababa be seen by the new routes being used, (Ethiopia) en route to Bang- especially with regard to transit countries. kok (Thailand). This seizure was a follow-up of a seizure Viet Nam recently emerged as an impor- of another 637kg of ivory tant transit point but smugglers had not tusks at Addis Ababa by © Vietnam © Customs counted on the swift response of the Viet- Ethiopian Customs just two namese Customs administration to their days earlier. All 1,169kg of change of tactics. Customs officials at Hai these tusks were suspected Phong Port seized nine tonnes of ivory in to come from Kenyan ele- 2009! On 28 February 2009, they busted phants and sent by the same an attempt to smuggle 6,232kg (200 consignor with Thailand as pairs) of ivory tusks; making it the larg- the destination. est ever ivory smuggling case in history. The ivory was apparently smuggled from These seizures show that it Dar Es Salaam (Tanzania) via Malaysia, is not unusual to see ship- and was found hidden in boxes of plas- ments of between two tic waste declared for recycling. Customs and six tonnes intercepted. officers had received information about Moreover, air transport is the consignment when it was loaded © Vietnam Customs being used for large quanti- aboard a ship in Tanzania in January. ties of raw ivory, which might Royal Thai Customs took place during previously have been shipped by sea. Investigations back in Tanzania triggered the third week of August at the Suvar- by the seizure in Vietnam led to arrests of nabhumi International Airport, when The WCO issues CITES Alerts containing a number of officials and prosecutions of 316 pieces (812kg) of raw ivory illegally information and intelligence to its Mem- at least 11 businessmen involving in the imported from Qatar were confiscated. bers via the Organization’s Central Enforce- conspiracy. On 21 August 2009, Vietnam- On 18 October 2009, the Anti-smuggling ment Network (CEN) section of its website. ese Customs inspectors at the same port Bureau of China Customs arrested 14 peo- discovered over two tonnes of tusks hid- ple and seized around 3,000kg of ivory WCO Members are urged to continue to den in a container full of snail shells from that had entered the country through take urgent and effective action against the Port of Zanjiba in Tanzania. Whilst in Dongxing Port, a mere 200 kilometers this malicious transnational trade in col- July 2009, in another two incidents, they northeast of Hai Phong in Vietnam. The laboration with other law enforcement also netted 811kg of ivory tusks. The ivory had apparently arrived from Indone- agencies as the international community dedication on the part of Vietnam’s Cus- sia and Malaysia via Hai Phong concealed is relying on Customs and its partners to toms administration to uphold the CITES in refrigerated containers and destined for protect our natural heritage which once Convention was recognized by the CITES further processing in the Chinese interior. lost is lost forever. Secretary-General when he awarded a Certificate of Commendation to the Cus- Relatively few significant detections of More information toms officers at Hai Phong Port. smuggling occur before raw ivory leaves www.wcoomd.org
WCO News – No 61 – February 2010 11 f l a s h i n f o HS 2012, ready for take off…
heCO W has published the agreed in technology where possible. Finally, a Tamendments to the Harmonized number of amendments aim to clarify System (HS) nomenclature that will enter texts to ensure uniform application of the into force on 1 January 2012. HS Nomenclature.
About the amendments The recommendation to delete the sub- Environmental and social issues of glo- heading for coir yarn in the nomenclature bal concern are the major feature of will not take effect on 1 January 2012 due the HS 2012 amendments, particularly to an objection having been lodged by one the use of the HS as the standard for of the Contracting Parties to the HS Con- classifying and coding goods of specific vention. importance to food security and the Version 3 of early warning data system of the United The Implementation period Nations’ Food and Agriculture Organiza- While January 2012 may seem far off, the the WCO Data tion (FAO). WCO Secretariat is working on the devel- opment of requisite correlation tables Model launched The volume of amendments within, for between the old and new versions of the instance, Chapter 3, for the separate HS, and on updating HS publications, such identification of certain species of fish and as the Explanatory Notes, the Classifica- n 9 December 2009, the WCO crustaceans, molluscs and other aquatic tion Opinions, the HS Commodity Data- Olaunched the latest version of invertebrates, is eye-catching. However, base and the Alphabetical Index. its Data Model; a global solution for the modifications aim at improving the optimizing electronic data exchange. quality and precision of trade data in Customs administrations also have a huge This version of the Model represents a these commodities. The amendments task to ensure timely implementation significant development as it will act as include, inter alia, improved specifica- of HS 2012, as required by the HS Con- an enabler for improved management tions for species from the Southern hem- vention. They are therefore encouraged of cross-border transactions. isphere. These amendments will enable to begin the process of implementing economic trends in products other than HS 2012 in their national Customs tariff Version 3 of the Data Model optimizes the those familiar to North Atlantic consum- or statistical nomenclatures. electronic treatment of data by providing ers to be monitored. a whole-of-government set of data and More information data structures including requirements In the same vein, new subheadings have [email protected] for cross-border regulatory agencies been created for the separate identifica- (Customs, agriculture, environment pro- tion of certain edible vegetables, roots tection, etc.) controlling export, import and tubers, fruit and nuts, as well as and transit. This results in stability and cereals. HS 2012 also fea- predictability for business-to-government tures new subheadings and government-to-government data for specific chemicals exchange, and saves costs and time for controlled under the all stakeholders. Rotterdam Convention and ozone-depleting sub- The WCO has worked closely with the stances controlled under United Nations to align the Model on the the Montreal Protocol. core component library of the UN Centre for Trade Facilitation and Electronic Busi- Other amendments resulted ness (UN/CEFACT). from changes in international trade patterns.These include More information deleting more than 40 sub- [email protected] headings due to the low volume of trade in specific products, sep- arately identifying certain com- modities in either existing or new headings, and reflecting advances
12 WCO News – No 61 – February 2010 f l a s h i n f o CENcomm, a tool that grows in popularity
even enforcement operations were organised during the last S quarter of 2009 using CENcomm; the WCO secure communication tool. Three of these operations particularly caught our attention due to the nature of the products concerned. The success of these operations demonstrate the efficiency of the CENcomm messaging system to exchange information and intelligence during cross border operations and the benefits that A total of 23 shipments were reported to the relevant licence authorities for further accrue from coordinated and focused inter-agency cooperation verification, and so far one criminal inves- at the national and international level. tigation has been started.
Operation Pangea II targets the Operation Atlas targets illegal cash dismantle criminal organizations that online supply of counterfeit and transfers smuggle illicit cash around the world— illegal medicines employing several different methods to More than 80 countries participated detect cash carried in baggage, on travel- Twenty-four countries participated in in Operation ATLAS (an acronym for ers and in shipments aboard commercial Operation Pangea II, targeting the ever- Assess, Target, Link, Analyse and Share), flights at designated airports. increasing number of websites selling the largest multilateral operation in his- dangerous and illegal medicines. Customs
German
© © UK Medicines and Healthcare Products Regulatory Agency
tory targeting cash smugglers. It led to Operation Early Bird targets nuclear, National medicines regulators, Police and more than USD 3.5 million in cash being chemical and biological weapons Customs collaborated extensively in this seized and the identification of USD 24 global campaign. The operation focused million in undeclared currency that may The first joint operation to combat the on the three principle components of an have otherwise gone undetected at ports proliferation and dual-use of sensitive illegal website: the Internet Service Pro- of entry around the world during the five- goods, Operation Early Bird was under- vider (ISP); payment systems; and the day period of the operation. taken by 18 Customs administrations mail delivery service. of EU Member States. It was aimed at U.S. Immigration and Customs Enforce- preventing the movement through major Almost 17 000 packages were inspected, ment (ICE) led the operation in close col- airports of sensitive goods destined for resulting in the seizure of 995 packages and laboration with U.S. Customs and Border sensitive countries. some 166 540 pills. Action was carried out Protection (CBP) with the assistance of at 34 postal hubs, and 22 individuals are the WCO. The operation was supported Coordinated by the German Customs under investigation. A total of 751 websites by INTERPOL and Europol. Criminal Office (ZKA - Zollkriminalamt) were identified as suspicious, of which 72 and supported by the Dutch and Swedish were closed down, and adverts for fake Participating countries used real-time Customs administrations, the operation medicines removed from 11 websites. information sharing and coordination was initiated by the EU’s Customs Coop- of cash declaration data to disrupt and eration Working Party (CCWP). More information [email protected]
WCO News – No 61 – February 2010 13 f l a s h i n f o
Alexan UHF Passive Electronic Seal Solve smuggling issue & Accelerate Custom’s clearance
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14 WCO News – No 61 – February 2010 S PEC I al DO S s i E R
Special Dossier Customs-Business Partnerships
ven though Customs interacts constantly with business, Turning to enforcement, two examples of Customs-Business Ethe shape of relations between these two international partnership are also reported on, one relating to the fight again trade protagonists varies from country to country, depending illegal movements of dangerous waste and the other to ozone- on the economic situation, national culture, political impera- depleting substances. tives, and operational resources and requirements, etc. The Revised Kyoto Convention states in its general principles that In the following article, on the need to place users at the heart “Customs shall institute and maintain formal consultative rela- of Customs’ concerns, the author proposes drawing up a bona tionships with the trade to increase co-operation and facilitate fide international agreement laying down the fundamental prin- participation in establishing the most effective methods of ciples with which all Customs services should comply in their working commensurate with national provisions and interna- dealings with economic operators. tional agreements.” A number of countries share their national experiences. Ghana To qualify this Customs-Business relationship, we now talk explains how a successful public/private partnership has ena- of a “partnership” within which each party works in co-oper- bled an integrated Customs system to be implemented. Mozam- ation in pursuing shared objectives. Many administrations bique’s Customs administration shares its efforts to stimulate have adopted this partnership-based approach, developing co-operation with the informal sector in order to optimize co-operative relationships with the private sector by signing revenue collection. The role of the private sector in Customs instruments of co-operation and setting up platforms for col- modernization programmes is highlighted in an article on the laboration, with the aim of expediting and simplifying trade strengthening of capacities in the countries of the East Afri- and making it more secure. The benefits of partnership are can Community. Peru, for its part, recognizes that the success manifold, and all are linked to the advantages of an environ- of the modernization process can partly be explained by the ment where goodwill reigns. transformation of a previously antagonistic relationship with the private sector into a solid partnership based on dialogue to This Special Dossier contains a series of articles reflect- the benefit of all sides. ing the variety of partnership-related initiatives and their implementation. It is introduced by the column ‘From the pen The Moroccan initiative in setting up an Integrity Observatory for of the Chairperson of the WCO Council’, which points out users and Customs officials to identify problems and solutions, the stakes involved in the Customs-Business dialogue, and is also presented in this edition. The final article in this Special the different shapes which co-operation and collaboration Dossier looks at the partnership between the WCO and busi- can take. ness in the context of the WCO IT Conference and Exhibition, pointing to the importance of the quality of human interactions This is followed by a contribution from the private sector on in the success of any project. how partnership works within the WCO, and how it may be improved. The European Commission’s Directorate-General Finally, in the “In conversation” column which follows the Spe- for Taxation and Customs Union then describes the process of cial Dossier, the Secretary General of the International Chamber consultation which it has established with businesses within of Commerce (ICC) gives us his vision of partnership, which he the European Union. expects to be both constructive and durable.
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Customs and Business Partnerships: combining our talents for better performance
It is undeniable that our countries rely on international trade for economic growth and prosperity. As agencies at the border, Customs must constantly bear in mind how our work impacts upon those businesses that trade across borders, and how we can become more effective and efficient to minimise our regulatory impact and encourage international trade.
As the representative of Customs administrations around the world, the WCO has long recognised the importance of a partnership with business. Through the important work of groups such as the Private Sector Consultative Group, the WCO is able to hear the views of business and ensure that its instruments are shaped with business needs in mind.
Our Customs in the 21st Century strategic policy, adopted at the Council sessions in June 2008, positions the Customs-Trade partnership as a building block for modern Customs administrations. We recognise that com- munication and collaboration between Customs and business is fundamental to achieving mutually beneficial outcomes. Many administrations have found that close collaboration with the private sector has numerous strategic benefits – not only for Customs, but for nations as a whole. Cooperation and collaboration with business takes a number of different forms:
• A number of administrations hold joint border agency/industry forums with representatives from key border- related businesses and interests. These forums provide participants with an important mechanism for dialogue, ensuring industry and border agency interests and strategic directions are mutually understood and aligned where appropriate and possible.
• W e also work closely on relevant projects, for example, in the development of IT Systems to manage border transactions. To ensure that business does actually benefit from Customs’ IT systems, they are involved in the development of the systems from an early stage. Our IT systems are also beginning to incorporate Trade Single Window projects, which will reduce business costs by providing a single point of entry for all border transactions.
• C ustoms-business collaboration at the frontline also produces direct benefits, in particular for trade security and compliance. Customs administrations establish individual partnerships with business, designed to minimise risk and maximise the benefits of international trade. Through these partnerships Customs provides accurate advice, information and support to new businesses, with the businesses reciprocating by using their knowledge in identifying unusual or suspicious activity, and by maintaining adequate security measures.
• F urther examples of Customs-business partnerships are the trusted trader or Authorised Economic Operator programmes. Through these programmes Customs has begun a new chapter in its partnership with trade. By working together we are able to improve supply chain security with benefits that go beyond those that accrue to the trusted trader and which actually result in benefits for individual nations and the world through safer, more secure trade.
Closer cooperation and collaboration with industry therefore has many mutual benefits. There can be no doubt as to the benefits of cooperation and collaboration with business for improved trade security, trade efficiency and effective enforcement.
Let us take the opportunity of this year’s WCO theme to exchange experiences and information on our initiatives so that we can all work towards aiding global prosperity and security.
Martyn Dunne chairperson of the WCO Council
16 WCO News – No 61 – February 2010 S PEC I al DO S s i E R Information, consultation and cooperation …the main ingredients of the WCO-Trade partnership
Every country obliges those moving goods across its national frontiers to communicate and interact with Customs. The quality and spirit of this imposed relationship varies greatly between individual countries. In some there is a broad background of common confidence, in others a general, sometimes justified, mutual mistrust.
he situation at the global consultative centre, It is a basic Customs prerogative to demand infor- Tbetween representative trade bodies and the mation from the trader. Revenue may be the objec- WCO, is notably different from any of the national tive but information has to come first. For centuries models. While many subjects for discussion relate there was no similar obligation for Customs to to direct effects of existing or contemplated regu- inform the trader. As late as 30 years ago, asking lation likely to have major commercial implica- how public notices of new rules were issued, in an tions – for example recently enhanced security admittedly developing country, I was told they controls - there are also highly important oppor- were posted on the “Long Room” door. tunities for trade and Customs experts to consider how national preferences and practices can be Now the revised Kyoto Convention and many massaged into fully international standards, how national regulations enjoin regular diffusion of major Customs procedures can be brought into accurate Customs information and ubiquitous reasonable adjustment with changing business Customs websites have happily digitalised that imperatives, and how traders, carriers and other “Long Room” door. There are many interesting and concerned intermediaries can best adjust tradi- mutually enlightening verbal exchanges at WCO tional and innovative operational systems to a committee meetings but all the supporting and constantly shifting regulatory framework. reporting paperwork is exclusively “official”.
Given the increasing importance of global trade One helpful innovation to round out the Customs- and the many public needs entrusted to Customs, trade partnership could be to open up relevant one of the most important subjects for the WCO- items on WCO agendas to written input from inter- trade partnership might well be a continuous criti- ested observer organisations. Such papers could cal enquiry into the efficiency and nature of that often enhance debate and oblige trade to marshal partnership itself. What would such an examina- relevant facts and arguments. A useful precedent tion throw up at the end of the first decade of the may have been set by the WCO Private Sector Con- 21st Century? Partnership at this world centre, as in sultative Group (PSCG) which is currently seeking all national contexts, has three distinct but inter- the views of the WCO Policy Commission on its acting ingredients – information, consultation and proposals for an AEO template. It would be opti- cooperation. mistic to assume any massive input from already
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sufficiently busy trade bodies but any potential excesses could be stemmed if inclusion in any given agenda was at the discretion of the Secretariat.
When information broadens into consultation the WCO merits genuine and general business appre- ciation. Its technical committee meetings are mod- els of an official organisation opening its doors and corporate mind to the fullest and freest expression of outside interest, opinion and concern.
While the value of interchanges could be enhanced, as already mentioned, by the inclusion of trade position papers in WCO committee agendas, exist- ing WCO documentation is highly informative and does much to illuminate and focus discussion. One other important but easily overlooked asset is the high quality of interpretation and translation which ensures that what is heard, said and read in rel- evant WCO languages is accurately reproduced across the potential barriers of often extremely technical vocabularies.
There is an important if inci- Generalo t base membership on CEOs of impor- dental educational dimension. tant business concerns, but companies tended John Raven has been involved in interna- WCO and trade delegates work- to nominate senior managerial staff with special tional trade issues for 60 plus years having ing together for more than four knowledge of trade regulation and, several busi- held many senior and leading executive posi- years or so during the Kyoto ness organisations already active in WCO affairs tions during this time. His relationship with revision process had a practical were also included. Membership selection has now “postgraduate” course in Cus- been delegated to the PSCG itself with some reser- the WCO stretches over 36 years and in his toms procedures. vation of occasional intervention by the WCO. The current capacity as a representative of The resulting PSCG has drawn together and animated a International Air Cargo Association (TIACA); Meeting coffee breaks offer an very useful new combination of direct commercial John is often seen at various WCO meetings additional consultative resource interest in global Customs policy. though some of the older par- where he makes no bones about airing his ticipants - trade and Customs – The present economic downturn, however, has views on a range of issues that impact on may miss the now long-defunct tended to reduce business and trade organisation the international Customs, trade and busi- but convivial custom of spirited outlays on travel and may face already busy people ness communities. This article reflects his supplementary sessions at the with a choice between attendance at the usual run lunchtime and evening bar. of WCO technical committees and participation personal views. Behind and between meetings in more concentrated PSGC policy issues. It is too most active observer organisa- early, as yet, to judge the overall effects on the tions maintain working contacts broad WCO-trade consultative front. with WCO Secretariat staff and the wide range of Customs There are two significant examples of consultation expertise offered in the various extending into cooperation – the formation of the delegations based in Brussels. ACTION/DEFIS group in response to a G7 request to the WCO to strengthen Customs-trade relation- In the last three years the WCO ships to fight illicit drug trafficking and the more itself has extended all these for- recent response to US appeals for a global joint mal and informal arrangements effort to resist terrorism. The G7 appeal was met when it established its PSCG by an unprecedented sense of joint concern and with the unique advantage of obligation reflected in some thirty Memoranda of direct access to the Policy Com- Understanding between the WCO and trade organ- mission. The original declared isations, all following a fairly consistent if ill-bal- intention was for the Secretary anced pattern by which various sectors agreed to
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patibility. This situation calls for direct and effec- tive Customs/trade agreement on a quite new WCO approach to the partnership concept and practice. How could such a change be initiated and managed?
It might be tempting to call for a general and radi- cal review of those 30 or so MOUs so that they could be adjusted to what is probably a permanent, if varying, political and public preoccupation with international trade security, but experience has shown the very limited effect of any such agree- ments reached by the WCO and trade organisa- tions yet dependent for application on national Customs and their business communities.
A much more powerful and responsive move would be the formation of a small trade relations unit within the WCO secretariat charged with a continuous monitoring of the WCO-business interface with special responsibility for work- ing contacts with observer organisations. Those half forgotten MOUs might then offer a logical starting point for an certain measures and Customs – acting informally early mutual review of partner- A much more powerful and through the WCO – pledged to help them do so. ship commitments and benefits. Special efforts might be made responsive move would be It is interesting that although the overall effort to identify possibilities of joint was seen from the outset as a true partnership all and wholly symmetrical trade meetings were chaired and documented solely by and Customs obligations. While the formation of a small trade the WCO. Once a formal report of the operation, the WCO is generous in its sup- focused naturally enough on the explicit coopera- ply of useful information to the relations unit ...charged with tion set out in the MOUs, was made to the G7 and business community few if any duly acknowledged no further meetings were held trade bodies have corresponding a continuous monitoring of and the MOUs themselves, though some may have arrangements to make sure that had practical application at national levels, are now the WCO is fully and consistently little more than past signposts to good intentions. informed of relevant sectoral the WCO-business interface developments. The security partnership has gone deeper and with special responsibility for borne more tangible results. Now that on-going The vital step from consultation to work on the SAFE Framework of Standards has cooperation rests on confidence working contacts... moved to the Joint Working Group the Chair is and confidence is a by-product shared between the WCO and the PSCG. The of personal contacts. There are unprecedented expansion of the modest Kyoto many ways in which these can be extended and Transitional Standard on Authorised Persons has improved. Trade representation at WCO Council given rise to a growing number of very significant meetings is usually substantial but there are many Authorised Economic Operator (AEO) regimes with unused opportunities for trade bodies to encour- an added dimension of Customs-trade concern and age an appropriate WCO presence at their own negotiation in the spread of bilateral mutual rec- annual or biennial assemblies. Chairpersons and ognition arrangements. Chief Executives of observer organisations should regard occasional personal contact in Brussels with In this important sense national Customs admin- their WCO counterparts as an essential item in istrations may have taken the partnership initia- their personal time-tables. Routine expert contacts tive away from the WCO which is now faced with at WCO meetings would be supplemented and developments, such as the growth of individualistic nourished by such higher-level “diplomatic” rela- AEO systems that seem to have run ahead of any tions and trade bodies should make every effort to central mechanism for standardization or even com- include member expertise in delegations at WCO
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The vital step from meetings.n I addition, WCO staff, at goods through Customs, and express operators consultation to cooperation all levels, should find it natural to fit that move their documents and small consign- visits to observer body headquarters ments. rests on confidence and into their usually extensive travel arrangements. The suggestions made here could, no doubt, confidence is a by-product be extended or pruned by people nearer the All these contacts and consultations operational cooperative interface in the grow- of personal contacts. should be reported to and considered ing number of countries where Customs-trade by the suggested trade relations unit consultation has long since developed into truly as potentially useful information for central WCO direction and the effective cooperation. Such input, however, annual Council Report should include a special section on relations with could be pointless unless the central WCO business observer organisations. bridge between 176 Customs services and the effective core of international trading is manned Unexpected benefits could accrue to the WCO. For example, global Cus- and managed with the specific urgent objective toms policies are weakened and less credible if they lack input from the of turning a conceptual partnership into purpo- highly innovative and numerous SME constituency. Direct representation sive joint activity. is almost non-existent but an experienced trade relations unit could gar- ner reliable composite views of SME views and needs on most subjects through other institutional links with multinational companies that sub- More information contract and work with SMEs, agents and forwarders that handle their [email protected]
WCO Private Sector Consultative Group (PSCG)
Mandate The PSCG was established in 2006 for the purpose of advising the Policy Commission, the Secretary General, the SAFE Working Group and any other standing bodies within the WCO, as appropriate, on progress and issues relating to the implementation of the Framework of Standards to Secure and Facilitate Global Trade (the SAFE Framework). It may also raise other issues related to global trade as well as provide advice on other issues as suggested by the Secretary General.
Membership The s PSCG i composed of 30 companies and associations from different areas of the world and represents a variety of international trade interests including importers and exporters, Customs brokers, express carriers, transporters, forwarders and logistics managers. Membership is limited to private sector associations, and those companies with a financial or ownership interest in the manufacture or delivery of goods. Membership is generally for a two-year term that may be renewed every two years.
Chair Ms. Carol West, International Federation of Customs Brokers Associations
More info Detailed information on how the PSCG operates, as well as reports and other documentation and communications issued by the Group, is available on the PSCG website: www.wcopscg.org.
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TAXUD talks business Every year, a significant number of rules, regulations and other measures are adopted in ‘Brussels’ that have either a direct or an indirect effect on the EU’s 495 million citizens and 20 million businesses. The interests and opinions of these stakeholders, when adopting these rules, should be heard and taken into account. Indeed, various kinds of consultation and consultative fotolia.com
- bodies have long been – and are increasingly so – Palindra
an integral part of the EU legislative process. ©
he Customs Union has been the foundation how implementation can realistically be achieved. Tof the EU since 1968. Customs legislation and Above all, this kind of consultation and exchange policy support the implementation of many other of views is key to respecting commitments where policy areas. While the Council and the European both government and business have a role in the Parliament formally negotiate and adopt legisla- successful and efficient application of customs tion, it is first and foremost the responsibility of policies. fotolia.com
- the European Commission to design and develop Arslan
proposals for policy and legislation – as well as Business representatives are indispensable in help- to monitor their proper implementation. In its ing to define the underlying business cases for cer- öz
capacity as manager of the Customs Union, the tain measures or changes, their possible financial, © can European Commission’s Directorate-General for technical, logistical, political, IT and other conse- Taxation and Customs Union (TAXUD) must ulti- quences, as well as their appropriate application in mately make sure that the Customs Union controls practice. Businesses often have valuable insights the flow of goods into and out of the EU efficiently, about possible improvements, knowledge about effectively and appropriately, and in doing so measures applied in third countries and about serves the interests of citizens and businesses in other specific business requirements. the best possible way. TAXUD involves In short, the approach is a way to ensure that while To this end, TAXUD has institutionalised consulta- keeping to political objectives set by government, business as a partner tions with business in its procedures for developing business expertise enhances the practical design Customs policy and legislation. Input from citizens and application of the proposals prepared by in the development is regularly measured through channels such as the TAXUD. All new legislation, amendments to it, as media and public opinion. well as the introduction of new policy principles are and implementation tabled for comments by business representatives The TAXUD approach to involving business and are thoroughly discussed in the Trade Contact of customs legislation Group. Thus,s a a standard procedure for initiatives, and policies. TAXUD involves business as a partner in the devel- The voice of trade at EU level: opment and implementation of customs legislation the Trade Contact Group and policies. This partnership approach is seen as not only beneficial, but absolutely necessary. The Trade Contact Group (TCG), chaired and coor- dinated by TAXUD, is a semi-formal consultative For one, it allows for synergy of the different per- body of TAXUD. Business positions and proposals spectives in defining, for example, legislation that are solicited through this forum and are carefully both implements policy objectives and respects analysed by officials. Proposals are often either business realities. It is an approach unlike any directly reflected in revisions of the legal proposal other for reaching a common understanding on or indirectly addressed in some kind of compromise
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solution. Real and serious concerns of business are taken seriously and every Furthermore, business representatives are effort is made within the existing legal framework to find ways to alleviate sometimes invited, in the role of experts, to them. comitology meetings where the Commission’s proposals for implementing legislation are Based on the Terms of Reference, the members of the TCG are the representa- voted on by Member States. tives of EU-level and/or international-level trade associations interested and involved in Customs-related activities at the European level. They are chosen Given that the Customs Union is composed based on an application process and currently the TCG is composed of around of 27 separate national environments and the 30 member associations. These associations usually represent important play- Community Customs Code is implemented ers in a given field. Participation of international organisations is especially through 27 national administrations, EU-level welcome, as their perspective is particularly relevant in today’s globalised consultations are naturally complemented by world. Small and medium-sized enterprises (SMEs) also have an important consultations carried out at the national level voice, expressed through member associations, as they represent the most in individual EU Member States. The extent and numerous category of Customs’ business counterparts in the EU. practices of Member States’ Customs-business consultations vary, but they often comprise While the current composition of the TCG consists mainly of representatives well-established working groups of Customs of Customs forwarders, brokers, agents, transporters and industry representa- and business representatives that serve a valu- tives, given the growing application of IT technologies in Customs matters, able function in solving very concrete imple- TAXUD is currently considering involving software producers in a consultation mentation issues at national and local level. procedure that will cover the technological part of the Customs implementa- tion process. Not new – but definitely improved
Meetings, consultations and expert advice The1 2 st Century consultation mechanism of TAXUD, in particular the TCG, is less formal than The ‘plenary’ TCG meetings take place regularly about four times a year in that of the 70’s and, dare it be said, more effec- Brussels, and supplementary ad hoc and thematic meetings are organised tive. The TCG as it now functions was started when necessary – usually to explain or discuss specific issues in more detail. in 2002 in the area of electronic Customs and exportation, based on the experience gathered In addition to dedicated meetings between TAXUD and trade representatives during business consultations for the reform of in the TCG, business representatives also take part in tripartite meetings with the transit system. The first major task of the national Customs administrations and the Commission in the context of the TCG has centred around consultation on the Electronic Customs Group (ECG). The ECG is responsible for the overall plan- implementing provisions of the 2005 safety and ning, implementation and follow-up of all legal, procedural and operational security amendment of the Community Cus- aspects related to electronic Customs. As a result of participation by business toms Code. These safety and security measures representatives, EU Member States are made aware of EU-level concerns of recently came into full force on 1 July 2009, business, and business has an excellent and extraordinary opportunity to making electronic provision of pre-arrival and exchange views directly with the delegates of 27 national administrations. pre-departure information on the flow of goods Business representatives can also occasionally (when relevant) participate in compulsory via dedicated EU-wide IT systems. Customs projects such as seminars and project groups. The final text of the safety and security imple- menting provisions amounted to 33 pages of highly technical provisions, detailing specific clauses of the underlying legislation. The docu- Walter Deffaa studied Economics at the Universities of ment is a vivid specimen of the exemplary – Tübingen and TU Berlin. With a PhD in economics (Uni- although arduous and lengthy – cooperation versity of Stuttgart-Hohenheim), he has been working between the legal, IT, procedural and business since 1983 at the European Commission in Brussels and experts in the Customs field. took over as Director General for Taxation and Customs Union (DG TAXUD) in June 2009. He previously served Based on the excellent experiences of TAXUD as Director General of the Internal Audit Service (2004- with regard to the consultation on the safety and 2009), as Finance Director in the Regional Policy DG security implementing provisions, as well as the (2003-2004), as Director in the Secretariat General positive feedback and a request from trade repre- (2001-2003), as Director in DG BUDGET (1999-2001) and as Chef de Cabi- sentatives, the mandate of the TCG was widened net for Commissioner Wulf-Mathies (1997-1999). He was a visiting Professor in December 2008 to cover all Customs-related at the College of Europe in Brugge, Belgium (1999-2009) and has published issues. many articles on the EC budget and audit.
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Trade Contact Group today: aims and objectives Customs and business: partners
The f work o the TCG is currently mainly focused on in fighting illegal movements of the preparation of the implementing provisions to the Modernised Customs Code (MCC). The MCC hazardous waste and its implementing provisions represent the o curb illegal trans-boundary movement of hazardous and other waste, modernisation and simplification of Customs proc- THong Kong Customs, with the support of the Environmental Protection esses and procedures. It also complements and fol- Department (EPD), launched a strategic control scheme on hazardous and lows on the changes initiated with the safety and other waste with effect from 4 July 2007; a partnership between the public security amendment. and private sectors.
Given the wide scope and context of the MCC, the Under the scheme, Hong Kong Customs selects suspicious shipments of haz- TCG currently works as several smaller working ardous waste for examination and relays details to EPD besides liaising with groups that each addresses the legal implement- shipping companies. Joint examinations by Hong Kong Customs, EPD and the ing provisions of various titles of the MCC. Another representatives of the shipping companies are then conducted. If the ship- interesting and very pressing issue connected to ments are found to contain hazardous waste without any proper documen- the MCC that the TCG is involved in is the scope of tation and not to be allowed to be imported into the territory, the shipping the IT projects to be introduced by 2013 to imple- company has to return the shipment to the exporting country as required ment the Customs procedures as defined by the by the Basel Convention on the Control of Transboundary Movements of MCC. The TCG is being consulted as to their view Hazardous Wastes and Their Disposal. on the most urgent business cases for traders, and the feasibility of implementation in view of the short time frame from the perspective of business.
Future prospects of business – Network Network
TAXUD partnership Action Action
The experience of the recent collaboration with Basel Basel the TCG has been very positive on all accounts. It 2006 2008 is clear that every opportunity for collaboration © © and consultation with business will be fully utilised According to the United Nations e-waste is one of the most hazardous waste streams in the future. At the same time, we need to con- worldwide. stantly think about how to improve these mecha- nisms and improve our understanding of each Through this partnership, remarkable results were obtained. In 2008, among other more systematically. Developing the future the136 containers containing hazardous waste intercepted, 135 (99%) were concepts and models of compliance and business- returned to the exporting countries under the Strategic Control Scheme on Customs relationships is a major preoccupation of Hazardous Waste. From January to November 2009, all of the 56 intercepted TAXUD’s forward-looking policy initiatives – which containers containing hazardous waste were returned to the exporting coun- will require and imply an even greater role for the tries. The return of hazardous waste also raises awareness among the public expertise, input and perspective of business. And and the mass media in the exporting countries. so the TAXUD-trade dialogue goes on… Since the Strategic Control Scheme on Hazardous Waste was introduced, shipping companies have become more cautious in screening suspicious ship- ments in order to avoid importing hazardous waste into Hong Kong. The number of illegal importations into Hong Kong dropped No of conainer drastically in 2009. All in all, this scheme is very successful processed in HK in preventing and cracking down on No of contain 250 er returned to More information illegal trans-boundary movements of 225 (71%) exporting country
http://ec.europa.eu/taxation_customs/taxa- hazardous waste. 200 65 tion/index_en.htm 150 136 (99%) http://ec.europa.eu/taxation_customs/cus- Number of hazardous waste contain- 115 (61%) 1 toms/policy_issues/customs_trade_consulta- ers returned to exporting countries 100 45 160 tions/index_en.htm from 2006 to November 2009 135 56 (100%) 50 70 56 Source: Customs & Excise Depart- 0 ment, Hong Kong, China 2006 2007 2008 2009 (jan-nov)
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Focusing Customs on client service
ustomss ha long been focused prima- Customs online, and even to undergo all that serves economic operators, these Crily on controlling goods entering or checks involved in crossing a border at the international rules also aim to accelerate leaving national territories, and collecting same time is also recognized. and simplify import and export opera- Customs duties. To this end, the economic tions and make them more secure. or commercial constraints on businesses The development of an international legal mattered little to Customs administra- framework continued in 2005 with the Today, however, a new era must dawn. tions. However, under the influence of implementation of the WCO SAFE Frame- The way we see it, the development of international law and in particular the work of Standards. These rules adopted in trade, the investment attractiveness standards laid down by the World Cus- the wake of the terrorist attacks in the US of territories and the fight again fraud toms Organization, in the space of 50 on 11 September 2001 aim to strengthen are stakes which must guide States in years the role played by Customs services international trade security. However, drawing up an international charter of has been radically changed. Besides polic- they also have another purpose. They fundamental rights of Customs adminis- ing goods, a function which it continues seek to give fresh impetus to the dia- trations and businesses. Businesses must to exercise, Customs has felt the need to logue between Customs authorities and no longer benefit only from simplified adopt a client service culture, placing its importers and exporters. True, businesses or reduced Customs clearance proce- users at the heart of its concerns. It has awarded the status of Authorized Eco- dures, as economic operators they must progressively identified the many issues nomic Operator may benefit from simpli- also be able to benefit from a partner- involved in improving its relationship with fied declaration requirements, but this is ship built on standards which define the businesses. not the key issue. What should be empha- rights and obligations of Customs serv- sized is that businesses which are judged ices and businesses in taxation and con- States likewise recognized that busi- reliable by national authorities could be trol operations. Achieving this step will ness development and the fluidity and granted the right to simplified, facilitated allow a new form of public spiritedness acceleration of world trade required the Customs controls. Hence international to emerge, consolidating a relationship of adoption of similar taxation standards. trade operators are no longer regarded trust which remains fragile. Indeed, it can- From this perspective they adopted the simply as taxpayers or users; they are a not be denied, too many companies still International Convention on the Harmo- partner of the Customs administration fear Customs officials and view Customs nized Commodity Description and Cod- in making world trade more secure. And administrations as obsessed by checks ing System in 1983; a World Customs so these international rules have clearly and penalties. They do not see them as a Organization (WCO) instrument. Setting changed Customs services’ operating means of obtaining information or advice out the uniform classification of products, methods. They have given rise to new which will allow them to optimize their this international Convention almost cer- governance, rationalizing and targeting commercial operations. tainly constituted the first step in building controls which can now be much less a relationship of trust between Customs cumbersome, depending on whether or At the end of the day, even if it has been a and businesses. Using the Harmonized not the business is deemed trustworthy key concern for fifty years, the improve- System actually helps economic opera- by Customs. ment of relations between Customs and tors save time on commercial operations international trade operators still remains by avoiding having to assimilate and apply The establishment of a Customs-busi- an issue for the future. classification rules which are specific to ness partnership evidently responds to a the place to which they are transporting number of key issues. By seeking to turn More information goods. Customs services into an administration [email protected]
To promote international competition, the Members of the WCO next endeavoured to harmonize and simplify procedures, to make them more transparent and faster. Sébastien Jeannard is a research fellow at Panthéon- The Kyoto Convention (a revised version Sorbonne Paris 1 University. He monitors Customs issues entered into force during 2006) requires within the FONDAFIP public finance research association Customs officials to implement standard - www.fondafip.org - where he heads a research group procedures relating to cross-border, trade consisting of Customs officials, academics, lawyers, a (assessing Customs duties and checking magistrate and economic operators. declarations presented by businesses, for example). The right of businesses to lodge simplified declarations, to submit them to
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The role of the private sector in trade facilitation
Extract from the Case Study* on the Public- budgetary resources for Customs Management Private Partnership on Integrated Customs investment and recurrent System (GCMS). The iden- Services in Ghana. expenditure, lack of mana- tified partners brought gerial core competencies, into the partnership, Introduction and lack of drive to overcome not only their financial the inherent change manage- resources, technical know- The Ghana Community Network (GCNet) ment challenges. how, and other strengths, is a public-private partnership (PPP) but also became very support- enterprise that reflects the desire of the An alternative strategy: ive “project champions” who drove Government of Ghana to modernize the Public-Private Partnership the project. its Customs operations without having to support on its own the total cost of Consequently, an alternative strategy was Identifying the right partners approximately US $12 million. GC Net sought that was better able to address has been widely credited as a success inhibiting factors that had stalled earlier The Government was obliged to identify a story and an exemplary example of the attempts at modernizing Customs oper- strategic partner that had the right tech- effective utilisation of the PPP scheme ations. Outright privatization was not nical competence; was prepared to invest to achieve desired goals; in this case, considered seriously by the Government, in the project and also drive the process. enhanced trade facilitation to improve owing to the sensitive nature of Customs This was considered a critical success the competitiveness of Ghana’s exports that deals with security and government factor as previous e-governance projects and attract export-orientated investors. revenue collection matters. Instead, a PPP implemented by Government had not Important stages of this process as well as was promoted to foster stakeholder buy- met all the start-up goals, and had not key outcomes are outlined below. in, and to ensure its sustainability. As a been sustainable. result, a conscious attempt was made by Prior efforts to improve trade Government to bring in as many credible To address these challenges, SGS was facilitation stakeholders as possible, together with a identified as a potential partner, hav- strategic technical partner. ing already proposed TradeNet (A sin- Ghana’s Government had long realised gle electronic window system set up in the importance of trade facilitation to The Government was the primary project Singapore) as part of its bid proposal. enhance export competitiveness; yet, champion, although through earlier pub- During the selection process, SGS was previous government led attempts at lic-private sector policy dialogue, both identified as a global company with sub- modernization had proved largely unsuc- sectors had identified the need to address stantial managerial, technical and finan- cessful. Most notably in this respect was certain constraints that affected business cial resources to implement the project the government supported and World competitiveness within the economy, (SGS, a global company known for it trade Bank funded Gateway Programme. The and were therefore clamoring for the inspection and verification services, was programme aimed to: i) reduce and project. GCNet was thus established in seen as having adequate experience in improve the process time for Customs October 2000 as a joint venture PPP to trade facilitation and revenue enhance- documentation and standards, whilst ensure that all stakeholders with a vision ment programmes and moreover, it had preventing fraud and improving revenue for enhancing Ghanaian competitiveness a strategic partnership alliance with the collection; and (ii) enhance the capac- participated in this electronic community foremost TradeNet operator – the Singa- ity of Customs and related agencies by network for the processing of trade and pore Network Services). equipping them with an electronic data Customs related transactions. interchange platform that intercon- SGS was then mandated to identify suita- nected both private and public agencies The PPP agreement split ownership ble partners for the PPP, for consideration to avoid duplication, and reduce costs between a public share of 35% (the big- by Government. This proved to be a chal- and time for processing Customs and gest stakes going to Ghana Customs, lenging task since many of the relevant trade documents. 20%, and minor stakes going to Ghana stakeholders had an interest in facilitat- Shipper’s Council, 10%, and Ghana Com- ing the importation or exportation of However, this modernization effort was mercial Bank, 5%) and a private share of goods through the ports and the mobi- plagued with difficulties due mainly to 65% (the biggest stakes going to Société lization and collection of trade-related government’s financial constraints and Général de Surveillance (SGS), 60%, and revenue but were skeptical of the project a lack of technical capacity in maintain- Ecobank Ghana, 5%). The specific man- due to the previous bad track record of ing the system. Specific limiting factors date is to deploy and support two linked e-projects. To address these challenges included the inadequate provision of IT Systems, namely, TradeNet and Ghana SGS, as a strategic technical partner and
WCO News – No 61 – February 2010 25 S PEC I al DO S s i E R
a fulcrum around which the project evol- had to be rationalized as there was no Reasons for success ved, became a promoter of the project point automating existing inefficient - preparing the project prospectus, sen- processes. The critical factors which contributed to sitizing all stakeholders and potential the success of the project are: members about the project benefits for Main achievements of the project primary stakeholders and the economy • Government support and belief in the as a whole. The experience of Singapore • Simplified Customs procedures project at the highest level; and its benefits were also well touted since this model had a good track record • Faster clearance times (goods can be • choice of proven technology; and had proven to be a great success. It cleared at the main Port of Tema on thus provided a positive assurance to the average in 2-3 days compared to 2 • financial and managerial credibility of partners about the potential of GCNet. weeks as was earlier the case) the partners;
With the support of Government, selected • Quicker transit with a satellite tracking • phased project implementation that stakeholders were given the opportunity system controlled costs and secured stake- to see, appraise and learn firsthand about holder confidence backed up by the similar experiences elsewhere (the case • Increased revenue collection (since consistent delivery of high-quality of Mauritius for example). Furthermore, 2003 when the project started, there service; stakeholders were regularly apprised has been an average annual growth of about each development stage of the 33% at the Port of Tema and 32% at • ability to invest in augmentation of the system and its deployment. In doing so, Kotoka Airport) infrastructure to overcome the irregu- stakeholders could relate the progress of lar and unpredictable electricity supply work with each goal or benchmark that Overall impact on export and inadequate telecommunications, had been set before the project start-up. competitiveness especially internet services;
Operationalisation of the project The export competitiveness of Ghanaian • overcoming the human factor through exports increased due to the expeditious extensive sensitization, capacity build- The operationalisation of the project processing of export consignments as ing and improvement in their work entailed setting up TradeNet – an elec- well as the electronic issuance of permits environment; and tronic data interchange platform – with and certificates of origin and their trans- functionalities for the transmission of mission to the authorities of the export • a sustainable self-financing arrange- electronic messages and replies between destination. In its survey of the cost and ment. trade operators, Customs, other regu- competitiveness of doing business in over latory bodies involved in the clearance 150 countries, the International Finance process for goods through the ports, and Corporation recognized Ghana to be one *The Case Study was prepared by Emmanuel others who peruse the data generated of the most improved countries for doing Darko, Deputy General Manager of GCNet for in the process. TradeNet acts as ‘Single business. Similarly, in the World Bank’s the International Trade Centre (ITC) in Geneva. Window’ through which all trade and “Trading Across Borders” index, Ghana’s This extract has been contributed by Rajesh Customs electronic procedures were to obtained ranking of 61 in 2007 was an Aggarwal, Chief, Business and Trade Policy be processed. improvement of 47 places from an earlier Section, ITC. The full study is available online 2005 ranking. Both assessors considered at http://www.intracen.org/btp/issues/trade_ Introduction of an automated system the notable factors that contributed to facilitation/publications/ghana_case_study.pdf called for the enactment of new legisla- the improvement to be the application tion that recognized electronic process- of risk management techniques and the ing of transactions and payments. Certain introduction of electronic data inter- More information operational and administrative processes change systems. [email protected]
26 WCO News – No 61 – February 2010 S PEC I al DO S s i E R
UNEP’s Public-Private Partnership strengthens Customs’ environment protection role Something about the paperwork raises a suspicion, so the Customs officers decide to inspect the shipment. On opening the container they are faced with hundreds of identical cylinders with a product name they are not familiar with and an almost un-readably long chemical name. They need some expert assistance and grab the phone. Passing over the contact information for the designated focal point in the environment ministry they put a call through to a local air-conditioning manufacturer... © UNEP
uch a scenario may be rather unre- has much experience in fostering coop- Salistic in many countries, but it does eration with industry to seek to address highlight the fact that in addition to significant environmental challenges the expertise which may exist within and embraced this approach to assist a country’s environment ministry and countries in combating ODS smuggling Customs agency, there may also be through cooperation. great potential in the private sector which can be drawn on to assist in the The UNEP OzonAction Compliance Assist- identification and storage of suspicious ance Programme, which provides assist- information and ‘alerts’ which were dis- and seized goods. Responsible industry ance to developing countries (including tributed throughout Customs commu- and business recognise that their coop- building the capacity of Customs officers) nication mechanisms and have assisted eration and efforts can make a valuable to comply with their commitments under in providing additional information for contribution to environmental security, the Montreal Protocol on Substances that investigations. while at the same time protecting their Deplete the Ozone Layer, developed an businesses from being undermined by initiative to bring together Customs, the This example of a partnership between unfair competition from illegal activi- private sector and NGOs to cooperate to Customs and business has been very suc- ties. Building partnerships between prevent illegal trade in ODS – the ‘Public- cessful and has made a significant con- Customs and business can tap into this Private Partnership’. tribution to enable Customs to better expertise and intelligence, making the combat the illegal trade in ODS and con- work of Customs more effective. This partnership has borne many fruits, sequently to the success of the Montreal with the chemical industry and traders Protocol itself – widely considered to be In the area of illegal trade in ozone providing much information and intelli- the most successful multilateral environ- depleting substances (ODS) it was real- gence. Specific information, such as that mental agreement in existence. ised early on that the private sector often on trade names and chemical names, and has the best expertise in identifying assistance with identifying counterfeit counterfeit and mis-labelled products and mis-labelled products is routinely and is often aware of the ‘unscrupulous shared. The chemical industry has con- operators’ in the market. UNEP’s (UN tributed to producing training materi- Environment Programme) Division of als and participated in Customs training More information Technology Industry and Economics workshops. They have provided specific www.unep.fr/ozonaction
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Mozambique maximizes revenue collection and enhances trade facilitation through an innovative public-private cooperation initiative
tors who purchase goods (groceries, to all operators affiliated with the asso- clothing, crockery, etc.) locally and from ciations, and to carry out fiscal education foreign countries for small scale resale in sessions as well as tax popularization to Mozambique markets countrywide. the associations’ members in coordina- tion with the associations. At the borders, Within the scope of the partnership with the associations’ representatives follow the informal sector, in March 2009 the all the processes related to inspection of Mozambique Revenue Authority (AT - goods; however, validation of Customs Autoridade Tributária de Moçambique) clearance procedures lies exclusively with Tax education and awareness signed two MoU’s with these trade asso- Customs. sessions for the informal sector ciations: one covering the inspection of imported goods; the other related to the In relation to the implementation of the ccordingo t an enquiry on the infor- Implementation of the Simplified Tax for ISPC, associations are obliged to circulate Amal market carried out in 2004 by Small Taxpayers (ISPC). In essence the existing legislation that introduces ISPC both the National Institute of Statistics two MoU’s are aimed at achieving effi- and its respective regulations to their of Mozambique (INE) and the Ministry of ciency in the collection of Customs rev- associates, as well as to potential tax- Planning and Development (MPD), there enue and other charges, combating fiscal payers. The Government expects that the were about 497 900 traders, employing 1 and Customs offences, protecting public ISPC introduced in June 2009, will play to 10 workers, not registered for tax pur- health, ensuring adequate implementa- an important role in broadening the tax poses. This figure has certainly gone up tion of norms and regulations governing base and in ensuring adherence to the fis- since then. Imports by informal traders legitimate trade, ensuring the provision cal system by micro and small enterprises; dealing with external trade account for of relevant training and capacity building mainly informal sector operators. 2% of total Customs revenue in Mozam- to the informal sector on the practical bique. aspects and procedures imposed by law, The special income tax regime applied and ensuring direct access to relevant to the informal sector includes a 3% ad The country now openly recognizes the information and documentation neces- valorem tax (or alternatively, 75 000 participation of the informal sector in sary for the appropriate performance of MT [about USD 3 000] per year), a 50% national economic activities. To this their activities. reduction in the tax rate in in the first end, the Government of Mozambique year of activities, and a reduction in the has deemed it important to involve the In light of the MoU’s, associations are costs incurred by taxpayers in fulfilling informal sector in the process of design- obliged to cooperate in matters of inspec- their tax obligations. As far as the AT is ing necessary legal instruments for the tion and control for accurate valuation for concerned, the simplified tax model also performance of their activities as well as determining Customs duties and other reduces inspection and control costs Customs and fiscal controls. charges, to adequately implement the by adopting simplified declaration and norms and regulations governing inter- accounting procedures, and it is hoped With the above in mind, trade operators national trade at large (without prejudice that more informal traders will become decided to create associations (currently to specific procedures set for or agreed part of the formal tax environment. three) primarily aimed at serving as an with the informal sector), to cooperate in intermediary channel between informal denouncing irregularities committed by Besides the maximization of revenue, the traders, the Government and other rele- dishonest operators, and to ensure accu- cooperation initiative with the informal vant institutions; ensuring performance of rate declaration of goods mainly in the sector has a particularly positive impact their activities in compliance with legally Customs clearance process (with a focus on trade facilitation too, both of which set parameters as well as promoting inter- on fresh products). contribute to economic stability and action between the Mozambican informal growth in Mozambique. sector and that of other countries. The MoU’s, on the other hand, oblige the AT to allow cooperation between the These informal sector associations have trade associations and the tax authority been operating for more than 10 years in adhering to all legal procedures so as to More information and mainly comprise informal sector enable physical examination of goods, to Hermínio Sueia operators and workers, micro-importers, ensure accurate assignment of a Taxpay- Mozambique Revenue Authority hawkers, and big informal market opera- ers Identification Single Number (NUIT) [email protected]
28 WCO News – No 61 – February 2010 S PEC I al DO S s i E R
Trade facilitation and Customs modernization through a partnership with the trade
he East African Community (EAC) The specific objective of this project is to “From work carried out by SITPRO in recent years Twith its headquarters in Arusha (Tan- assist EAC Customs administrations to with the business community in East Africa, customs zania) is a regional intergovernmental design and implement a comprehensive modernisation is seen as a key priority that will organization comprising five member regional reform programme with a focus contribute to economic development and make states, namely, Burundi, Kenya, Rwanda, on enhanced trade facilitation, movement the region’s trade more competitive. Businesses Tanzania, and Uganda. towards the EAC desire to establish a in the region place particular importance on fast fully-fledged Customs Union and thereaf- track clearance procedures for trusted traders, ter a common market, and more effective and the decision last year to press ahead with border and risk management. implementation of a common AEO model is a vitally important step forward. This project offers the best From the very start, SITPRO has acted as a opportunity for many years to implement change bridge to the local private sector, bringing for the benefit of business, and there is a strong the experience and knowledge it gained willingness by EAC revenue authorities to do so in from consulting with local businesses to partnership with business.” the table and representing their collective Malcolm McKinnon, Chief Executive, Sitpro views during the negotiations. It provided the business pillar of the project and its members of the EAC Secretariat. Once participation ensured that business views approved, these policies will be used as During 2007, the WCO conducted phase were taken into account. a basis to draft Standard Operating Pro- one diagnostic missions in all EAC coun- cedures (SOP) for RM, AEO and PCA and tries under the Columbus Programme; the At present, the project focus is on the finally to implement the first regional first step towards customs reforms. Early first objective, namely, enhanced trade fully operational pilot for AEO enterprises in the needs assessment process it was facilitation as this will benefit the sub- between beneficiary countries. clear that certain priority areas could ben- region’s economies by promoting trade – efit from being implemented on a regional the life-line to economic prosperity and a SITPRO has begun national and regional rather than a national basis. known alleviator of poverty. The Regional consultations in order to link businesses Programme Manager has, together with with their customs administrations and At the time the WCO was undertaking its nominated National Programme Man- is actively helping to identify companies diagnostics, SITPRO – the UK trade facili- agers from each EAC country, drafted to participate in the AEO pilot. The idea tation agency – had been busy organising regional policies covering the following being that once consultation mechanisms the business sector in the EAC countries. areas: risk management (RM); author- are up and running, local businesses will It established a network of companies ized economic operators (AEO); and post take ownership of the process, enabling called the Business Action for Improving clearance audits (PCA). These policies are SITPRO to step back and act in an advi- Customs Administrations in Africa (BAFI- now in a quality assurance phase with the sory capacity. CAA) and had started working on how to support of WCO experts. drive trade facilitation through increased This regional pilot project will be used as cooperation between Customs and the The next and final step is to have these a case example for other entities involved private sector in the sub-region. Given regional policies approved by the project’s in regional integration. SITPRO’s activities and its role as an hon- Steering Committee, comprising EAC est broker, even a catalyst some would Directors General of Customs, WCO say, it was clear that the private sector officials, SITPRO representatives, the More information represented by SITPRO should be involved WCO East and Southern Africa Regional [email protected] in the preparation and implementation of Office for Capacity Building (ROCB) and [email protected] the reforms in the EAC countries.
With the above in mind, the main play- SITPRO in a nut shell ers (EAC Secretariat, EAC members, the At the national level, varieties of trade facilitation platforms based on Public Private Partnerships WCO and SITPRO) jointly developed a (PPP) exist. An example of which is SITPRO that was set up in 1970 as the UK’s trade facilitation Customs modernization programme for agency with the overarching mission to make international trade easier. It became a company in the sub-region and a regional AEO pro- April 2001 and currently falls under the responsibility of the Department for Business, Innovation gramme that includes mutual recognition and Skills who primarily funds its activities. About 100 executives and specialists, including a arrangements. The project is being funded network of Policy Advisory Groups, are involved in its work. Today, SITPRO goes beyond the UK, by SIDA. and is considered the world’s premier trade facilitation agency. On the capacity building front, SITPRO aims to enhance the capability of developing countries to implement modern Customs regimes and maximise the creation of wealth through efficient border procedures in partnership WCO News – No 61 – February 2010 with international organisations, aid donors and the private sector. 29 DO S si E R S PÉC I a l
What You get trade SecuritY Irrespective of the size, complexity and state of maturity of your agency’s IT landscape – the flexibility of our e-Customs Suite ensures that it is SECURE THE FLOW adaptable to your needs. Whether you are talking about complete modernisation or replacement ancient peopleS acroSS the globe believed that the balance of tWo oppoSing forceS Shaped the of individual applications, our e-Customs Suite fabric life. thiS maxim continueS to hold true todaY – Where the free floW of trade haS become is the solution. paramount to enSure a nation’S competitiveneSS, and ultimatelY itS Survival in the international It is: economY, While at the Same time the riSkS to SocietY ariSing from the Smuggling of contraband, • Comprehensive (covering all the needs of a modern customs agency) economic crime and terroriSm have reached unprecedented levelS, and muSt be held in check to • Developed on the basis of international best enSure the continued free floW of trade. practise (e.g. EU MASP, SAFE) Your SatiSfaction, our reputation • State of the art and future proof The combined custom systems’ experience • Modular (can be acquired in increments) and capability of IBM and Intracom/Intrasoft • Scalable is arguably unsurpassed globally. We have the cuStomS in the 21St centurY • Conformant with international standards track record and references to prove it. We have the Over the past years the role of Customs around the world has been changing – from a primary focus on revenue (e.g. WCO data model) systems to support it. collection to one of trade facilitation against a background of the need for increased safety and security. • Easy to integrate with other systems • Platform independent To learn more about our e-Customs Suite and what As such Customs has become the hub around which the wheel of globalization turns, and that hub must • Easily adaptable and easily enhanced we can offer you please contact your local IBM affiliate, be both strong and flexible in order for global trade to operate efficiently whilst society remains • Intelligent (e.g. risk management integrated Intracom IT Services (in Denmark or Athens) or Intrasoft safe. Streamlined, yet effective IT systems are a prerequisite for countries wishing to fully across applications) International (in Luxembourg, Brussels or Athens) or our exploit the opportunity of unfettered global trade in an increasingly hostile environment • Readily able to incorporate partner content local partners. – by enabling a successful balance between effective control measures and facilitation of trade. Your satisfaction is our success.
What We offer As major players in the Customs arena, IBM and Intracom/Intrasoft have closely followed the developments on the EU e-Customs Suite and international Customs scene for a number of years. It has became clear to us that the needs of Coordination components Core Business Components
Customs authorities around the world in the face of the Declaration Warehousing MASP Information Manifest / Processing & Valuation above challenges and the increasing demands made by Modules Tariff Exchange Pre- Arrival (Import, Export, Guarantee Support (EU) international bodies (such as the EU Commission, the WCO Transit) Management and the OECD) cannot adequately be provided for by most Open, flexible existing customs systems – many of which were developed to Single Window / Orchestration and Integration technical platform meet the needs of a bygone generation. External Integration
Inspection, National / Our e-Customs Suite is our response to these challenges. It is a Trader Risk Case Audit & Other AEO Regional Services Management Management Investigation Componets complete set of e-Customs applications developed through the com- Components Support bined effort and experience of three leading companies in the industry together with our strategic partners. The e-Customs Suite utilizes a Ser- vice Oriented Architecture and is based on coarse-grained Component Framework Services Business Services that run on open platforms. Customs agencies can access the applications (assets) of the e-Customs Suite individually or as a complete, integrated customs solution – and they can be acquired as is, or they can be modified and extended to meet an individual customer’s particular needs.
trade facilitation o 30 WCO News – N 61 – February 2010 DO S si E R S PÉC I a l
What You get trade SecuritY Irrespective of the size, complexity and state of maturity of your agency’s IT landscape – the flexibility of our e-Customs Suite ensures that it is SECURE THE FLOW adaptable to your needs. Whether you are talking about complete modernisation or replacement ancient peopleS acroSS the globe believed that the balance of tWo oppoSing forceS Shaped the of individual applications, our e-Customs Suite fabric life. thiS maxim continueS to hold true todaY – Where the free floW of trade haS become is the solution. paramount to enSure a nation’S competitiveneSS, and ultimatelY itS Survival in the international It is: economY, While at the Same time the riSkS to SocietY ariSing from the Smuggling of contraband, • Comprehensive (covering all the needs of a modern customs agency) economic crime and terroriSm have reached unprecedented levelS, and muSt be held in check to • Developed on the basis of international best enSure the continued free floW of trade. practise (e.g. EU MASP, SAFE) Your SatiSfaction, our reputation • State of the art and future proof The combined custom systems’ experience • Modular (can be acquired in increments) and capability of IBM and Intracom/Intrasoft • Scalable is arguably unsurpassed globally. We have the cuStomS in the 21St centurY • Conformant with international standards track record and references to prove it. We have the Over the past years the role of Customs around the world has been changing – from a primary focus on revenue (e.g. WCO data model) systems to support it. collection to one of trade facilitation against a background of the need for increased safety and security. • Easy to integrate with other systems • Platform independent To learn more about our e-Customs Suite and what As such Customs has become the hub around which the wheel of globalization turns, and that hub must • Easily adaptable and easily enhanced we can offer you please contact your local IBM affiliate, be both strong and flexible in order for global trade to operate efficiently whilst society remains • Intelligent (e.g. risk management integrated Intracom IT Services (in Denmark or Athens) or Intrasoft safe. Streamlined, yet effective IT systems are a prerequisite for countries wishing to fully across applications) International (in Luxembourg, Brussels or Athens) or our exploit the opportunity of unfettered global trade in an increasingly hostile environment • Readily able to incorporate partner content local partners. – by enabling a successful balance between effective control measures and facilitation of trade. Your satisfaction is our success.
What We offer As major players in the Customs arena, IBM and Intracom/Intrasoft have closely followed the developments on the EU e-Customs Suite and international Customs scene for a number of years. It has became clear to us that the needs of Coordination components Core Business Components
Customs authorities around the world in the face of the Declaration Warehousing MASP Information Manifest / Processing & Valuation above challenges and the increasing demands made by Modules Tariff Exchange Pre- Arrival (Import, Export, Guarantee Support (EU) international bodies (such as the EU Commission, the WCO Transit) Management and the OECD) cannot adequately be provided for by most Open, flexible existing customs systems – many of which were developed to Single Window / Orchestration and Integration technical platform meet the needs of a bygone generation. External Integration
Inspection, National / Our e-Customs Suite is our response to these challenges. It is a Trader Risk Case Audit & Other AEO Regional Services Management Management Investigation Componets complete set of e-Customs applications developed through the com- Components Support bined effort and experience of three leading companies in the industry together with our strategic partners. The e-Customs Suite utilizes a Ser- vice Oriented Architecture and is based on coarse-grained Component Framework Services Business Services that run on open platforms. Customs agencies can access the applications (assets) of the e-Customs Suite individually or as a complete, integrated customs solution – and they can be acquired as is, or they can be modified and extended to meet an individual customer’s particular needs.
trade facilitation o WCO News – N 61 – February 2010 31 S PEC I al DO S s i E R
Transforming Customs-Business relations: Peru’s experience
In the early 1990s, Peru undertook structural reforms that laid the foundations for a market economy and an open trading system. The period was marked by the adoption of measures aimed at integrating Peru into the global economy and international markets, and included Customs reform.
uring 1994, Peru Customs received The GCTA’s purpose is to collect com- sector and from public organizations Dfunding from the Inter-American ments and exchange information so that that are not members of the GCTA may Development Bank (IDB) for a moderni- regulatory proposals submitted by Cus- also participate in the working groups. zation programme. The IDB reported that toms are the most adequate and have The groups adopt a proposal by consen- within the first six years of the reform the most desired effect. This consulta- sus before submitting it to the GCTA for plan, despite an approximate one-third tion process (two-way feedback) enables consideration. The GCTA’s decisions in reduction in staff, Peru Customs (SUNAT) synergies to be drawn between projects this regard are then submitted to SUNAT saw its revenues rise by 435 percent and and operational realities and ensures easy who will undertake a technical evalua- the value of imports increase by 187 per- implementation of efficient measures. tion of the proposal and its expected cent. Tariff ranges were reduced from Important projects are therefore subject outcomes. between 18 and 84 percent to between 15 to scrutiny by both economic operators and 25 percent whilst merchandise clear- and the customs administration. Establishment of the GCTA proved to be ance times were reduced from between 15 an effective mechanism for cooperation. and 20 days to between two hours and Originally comprising nine associations of Through the work of the technical groups, two days. trade operators, participation in the GCTA several measures on foreign trade facili- has now grow to sixteen associations from tation related to Customs activity have A critical element contributing to the suc- the business sector representing customs been adopted. In February 2007, the cess of the Customs reform effort was the brokers, air carriers, warehouse terminals, GCTA became the Advisory Council on transformation of the adversarial rela- port operators, courier express services, Customs Matters (CCTA) with the same tionship between Customs and industry maritime agents, shippers, cargo agents, objectives and purposes as the former to one of partnership and of working distributors, chambers of commerce, GCTA. with the private sector to eliminate bot- importers, exporters, and the manufac- tlenecks. This partnership was institution- turing, mining and fishing industries. The alized in 2004 when SUNAT decided to Ministries of Economy and Finance and establish an Advisory Group on Customs of Foreign Trade are also represented in Matters (GCTA) as a consultation mecha- the GCTA. nism for economic operators to contrib- More information ute to the development process and to the GCTA members work in specific working Rafael Reaño Azpilcueta continuous improvement of the Customs groups. Participation is quite flexible as SUNAT service. guest representatives from the private [email protected]
32 WCO News – No 61 – February 2010 S PEC I al DO S s i E R
A public-private partnership on integrity: Morocco opens its observatory
On 19 January 2010 an Integrity Observatory was inaugurated at the premises of the Moroccan Customs Administration in Rabat.
ntegritysn i a issue of great importance theGEM, C as well as a Ito His Majesty King Mohammed VI Secretariat. and to the Prime Minister, Mr. Abbas El Fassi, in view of Morocco’s endeavours to Observatory encourage greater foreign investment. functions The Observatory will be a The Observatory is one of the innovative permanent structure and integrity pilot projects developed by WCO undertake the following Inauguration ceremony Members with assistance from the WCO tasks: Secretariat that will lead to the achieve- ment of rapid and tangible results. • Collect and compile information from tions issued. A monitoring system will operators and users or via Customs, be put in place to assess the impact Genesis and objectives CGEM and professional associations. of anti-corruption measures. This will Following a WCO representative’s visit to permit a periodic evaluation of the poli- Morocco in July 2009 to meet with the • Analyse Customs-user relations from cies adopted in order to tailor actions Director General of Customs, his staff and an integrity perspective. All data undertaken to any new forms of cor- the private sector, it transpired that a joint obtained from various sources will be ruption that may emerge. It may be Customs/private sector structure could processed and analysed to pinpoint helpful to canvas the opinions of users prove a first-rate partnership tool for weak spots or zones and to uncover through surveys on the Observatory’s safeguarding integrity and fighting cor- the root of a problem. Some of the role in enhancing integrity in Customs/ ruption. The idea of setting up an Integrity information may be examined in detail private sector relations. A Corruption Observatory very quickly translated into to assess the merits of the complaints Perception Index could be published and concrete results. and gain a clear understanding of the measures envisaged aimed at improving motivation driving those embroiled in Morocco’s ranking and score. This body would consolidate complaints corruption as well as of the environ- from both Customs users and Customs ment in which the latter flourishes. • Coordinate enforcement programmes officials encountering corrupt practices and activities carried out both within within Customs or the private sector. The This body would consolidate Customs and the private sector. Observatory’s task would not actually involve dealing with these complaints, but complaints from both • Publishing periodic feedback and rather analysing them in order to pinpoint annual reports. Mechanisms will be set problems and find solutions. Customs users and Customs up to provide information on develop- officials encountering corrupt ments in the integrity domain and to Observatory structure report on the results achieved. The following groups will be represented practices within Customs or within the Observatory: the Customs Future steps administration; the General Confedera- the private sector. TheCO W Secretariat will continue pro- tion of Moroccan Businesses (CGEM); the viding assistance to Moroccan Customs Central Body for Prevention of Corruption • Suggest areas for improvement. In to ensure that the project runs smoothly. (ICPC); the Freight Forwarders Associa- addition to compiling and analysing tion; and civil society, through “Transpar- data on corruption, the Observatory This pilot offers an opportunity to test out ency Morocco”. may propose anti-corruption activi- the concept of an Observatory. If success- ties that can be entrusted to either ful, it could be adopted by other countries The Observatory will initially be housed in Customs or the private sector. seeking to implement best practices. the premises of the Customs administra- tion and will consist of two staff mem- • Monitor and assess the implementa- More information bers, one from Customs and one from tion of proposals and recommenda- www.douane.gouv.ma
WCO News – No 61 – February 2010 33 S PEC I al DO S s i E R
WCO IT Conference & Exhibition: a testament to effective partnerships The WCO has run an annual IT Conference and Exhibition since 2002 and the event has enjoyed greater success with each passing year based upon numbers of attendees and expressions of satisfaction from all stakeholders.
he 2010 event will be held in Dublin A complex partnership arrangement • Fairness – this term is much used by T(Ireland) and promises to be the best such as this implies a careful and coher- all but is not necessarily perceived yet. In common with previous years there ent client management approach by the in the same way at all times. When is an innovative theme reflecting a signifi- WCO. Not only is the event an exercise making bilateral arrangements with cant and timely IT matter facing Customs in showcasing best practice and innova- any party it is often tempting to try and its partners in managing international tion, but it is also an event that involves to do a something special in order to trade. There will be a mix of speakers from extensive financial costs and once money clinch the deal. In the interests of fair- the private and public sectors along with is involved, the stakes for an open, trans- ness this is never a good policy being an extensive exhibition marketing best parent and honest partnership environ- neither transparent nor honest. practice solutions from leading software ment are extremely high. and consulting firms. Finally it is critical to appreciate that all When dealing with private sector partners partnerships are matters of human inter- There are many partners with whom the of any kind there are several basic princi- action first and foremost. In that light WCO works in this important endeav- ples that help determine the working rela- those qualities that characterize any our. Public sector partners include the tionship – transparency and honesty have positive interaction within say a family host Customs administration, delegates already been mentioned and they are of or group of friends will apply to working and speakers from Customs and other paramount importance. There are others: relationships as well. This includes clar- border regulatory agencies along with ity, flexibility and above all else, good representatives of intergovernmental • Consistency – partners expect to humour. organizations such as the World Bank. receive the same professional and Private sector partners include the pro- respectful treatment no matter what More information fessional conference organizers, the potentially sensitive matter is on the www.wcoomdit2010.com/site event hotel, software providers, inter- table. Similarly the “message” must not national consultancies, traders, interna- vary without good reason – this in turn tional logistics providers, sponsors and means that partners expect us to be in exhibitors, and relevant international command of all the facts and to apply WCO Databank on bodies such as IATA and GS1. them in a logical and considered way. Advanced Technology • A wareness of roles – the boundaries that exist TheCO W maintains a Databank on between all parties must be Advanced Technology that is available agreed and understood by to WCO Members and its private sec- everyone. If this is not the case then decision-making tor partners. The Databank assembles will be far from optimal information on available technical since the WCO might either equipment and technology suppliers. intrude into commercial Manufacturers/suppliers can register matters beyond its com- their products in the Databank via the petence or avoid taking a online services section of the WCO clear stand on an issue that should have been within its website. powers to decide. Abroga- tion of our responsibilities in More information this aspect could have legal [email protected] implications for the WCO.
34 WCO News – No 61 – February 2010 Resources APEC - Customs-Business Partnership Programmes This handbook published by APEC in 2006 contains information on 74 partnership pro- The Customs business relation- grammes in the APEC region. A useful reference for those planning to expand their existing ship confronts the world trading partnership programmes or to start new ones. system: the French experience www.apec.org/apec/apec_groups/committee_on_trade/sub-committee_on_customs. This s book i the collective work of the MedialibDownload.v1.html?url=/etc/medialib/apec_media_library/downloads/committees/cti/ members of the French Observatory pubs/2006.Par.0015.File.v1.1 for Customs and fiscal regulations. It reviews the relationship between French Trade Facilitation Handbook (Part 1) - National Facilitation Bodies: companies confronting the globalization Lessons from Experience challenge, and an administration that is Partf 1 o this Handbook is intended to guide users in creating the institutional structure for undergoing many changes and has to processing trade facilitation measures. It focuses on one platform – the trade facilitation manage new imperatives that are some- body – in the form of an interdisciplinary committee where private sector managers, public times hard to reconcile. sector administrators and policymakers can work together towards the effective implemen- www.institut-entreprise.fr/fileadmin/ tation of trade facilitation measures. Approaches to the setting up of a trade facilitation Docs_PDF/travaux_reflexions/Fiscalit_/ body by different developing countries are reviewed on the basis of case studies carried out Douane_entreprises.pdf by UNCTAD and relevant work by other institutions. From the review, key lessons are drawn for developing countries intent on establishing and operating trade facilitation committees. www.unctad.org/en/docs/sdtetlb20051_en.pdf Customs partnerships: Guidebook on Promoting Good Governance in Public-Private Partnerships a two-way street Public-private partnerships (PPPs) in the delivery of public services have become a phe- Dr David Widdowson, CEO of the Cen- nomenon which is spreading across the globe and generating great interest. PPPs com- tre for Customs and Excise Studies at bine the best of both worlds: the private sector with its resources, management skills and the University of Canberra in Australia technology; and the public sector with its regulatory actions and protection of the public examines the degree to which the part- interest. But they also present a severe organizational and institutional challenge for the nership approach may be used to effec- public sector. To address the challenge, UNECE has produced this Guidebook in the hope tively manage regulatory compliance. that all the parties to PPPs will benefit by examining closely the good governance principles www.customscentre.canberra.edu. contained in the Guidebook and ensuring their implementation. au/librarymanager/libs/17/Customs_ www.unece.org/ceci/publications/ppp.pdf Partnerships_A_2_Way_Street.pdf
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OMD actualités – No 60 – Octobre 2009 35 Phone +31-(0)58-29 88 888, Fax: +31-(0)58-29 88 768, [email protected], www.odsecurity.com I N CONVER S AT I O N Establishing a meaningful dialogue between Customs and business at both the international and the national level will be a great step forward...
The ICC’s (International Chamber of Commerce) basic mission is to promote international trade and investment and to assist companies in facing the challenges and seizing the opportunities presented by globalization. Through the work of corporate staff and experts from member companies, the ICC strives to present the views of the world’s business community both on major trade issues and investment and on essential technical and sectoral questions (financial services, IT, telecommunications, marketing ethics, environment, transport, competition laws, and intellectual property rights among others.)
Last July the ICC, which has served as the world’s foremost trade body and the voice of business for more than 90 years appointed Jean Rozwadowski as Secretary General to succeed Guy Sebban, who had held the position for four years.
In recognition of the long and excellent working relationship between the ICC and the WCO, the new Secretary General agreed to share his views with WCO News on the ICC’s cooperation with the international Customs community, which has chosen ‘Customs-Business Partnerships’ as its theme for this year.
WCO News: Your career path speaks for itself and lower trade tariffs. With world trade declining by 9% last year your international experience is an indisputable asset according to the World Trade Organization, successfully conclud- in your current position. What are your priorities in ing Doha is more important than ever. these challenging and changing times? Our second priority is to contain the protectionist pressures Jean Rozwadowski: In the broadest sense our goal is to achieve resulting from the economic crisis. The ICC has been particu- sustainable economic growth by preserving and increasing the larly active in this regard, making the views of the world business scope for open trade and investment and overall economic inte- community known to G20 leaders. To their credit, the major gration. To this end, our chief priorities are first, to encourage industrialized countries have contained protectionist pressures, open trade and more specifically to urge a rapid and successful but we must continue to be vigilant. conclusion to the Doha Round of trade negotiations. This Round, which was opened as a response to the attacks on 11 Septem- Finally, we believe that a climate change agreement would ber, should have been concluded long ago. After nine years of contribute to market recovery, and unleash the innovation and negotiations, it is time to reach agreement. World leaders must investment of global business for climate change improvements. now find the political courage to finalize the accord. Although Any agreement, however, should include action by major emit- we understand that this is politically difficult at a time of global ters, support intellectual property rights, and keep all energy recession, the fact is that a successful conclusion to Doha would options open. It should also require signatory countries to inject billions of dollars into the world economy in the form of develop and report progress on their national climate strategies.
36 WCO News – No 61 – February 2010 I N CONVER S AT I O N
W.N: You represent the world’s business community several centuries of almost non-stop war has been at peace since through your members and national committees in 1945. It is perhaps too frequently forgotten that the construction the same way the WCO represents the international of the EU began with the creation of the European Coal and Steel Customs community. What in your opinion are the Community in 1951. Over the past three decades open trade points of convergence and common interests between has resulted in hundreds of millions of people being pulled out the two communities? of abject poverty, particularly in Asia.
J.R: Both communities have a strong mutual interest in mod- W.N: The ICC has a specific stance on combating ernizing Customs systems and achieving compatible procedures counterfeiting and piracy and has launched certain and information requirements worldwide. A good example of initiatives. What more do you expect from the WCO this is the close convergence with the WCO in the substance of over and beyond existing cooperation? the ICC International Customs Guidelines and the WCO Revised Kyoto Convention. Business needs this type of modernization to J.R: Combating counterfeiting and piracy is certainly an impor- efficiently operate global supply chains. Customs and national tant ICC objective. The challenge is to implement and enforce authorities need it to enable proper enforcement, increase rev- strong national laws. ICC is maintaining global pressure to enues, and promote economic growth. With growing concern achieve this goal. Effective customs enforcement at the border regarding fraudulent goods and the need to improve the security to stop the commerce in counterfeited products is one impor- of the supply chain, our International Guidelines on Certificates tant element of this campaign. To this end, we found value in of Origin provide an important and invaluable contribution to an the WCO-Business working groups, such as the SECURE Work- independent yet responsible check in the security chain. ing Group and its predecessor the Intellectual Property Rights Working Group. We regret that these effective public-private W.N: In the context of the current world economic partnerships have been disbanded. This is particularly unfortu- crisis, trade facilitation is a priority for all economic nate given the progress we achieved together to create a model stakeholders. What is the ICC doing in the face of the law for border enforcement based on existing commitments to difficulties encountered in concluding the Doha Round protect intellectual property rights and to delineate guidelines and protectionist pressure from certain countries? on controlling free trade zones.
J.R: The ICC has been traditionally outspoken against trade and These commitments and guidelines are critical to combating the investment protectionism and the most prominent business global spread of counterfeiting. They require effective coopera- voice in favour of open markets. In fact, ensuring open markets tion between Customs authorities and rights holders, and we was the reason for our founding in 1919 by a group of visionary expressly hope that the WCO will re-active these working groups businessmen who came to be known as “Merchants of Peace.” and resume the important work they were doing. We hope that Then as now, we believe that trade leads to peace. The European the ICC and the WCO can identify ways to improve cooperation Union is perhaps the best example of this. A continent that saw and Customs enforcement in this critical area.
Biography
Jean Rozwadowski became Secretary General of the ICC on 1 July 2009. As chief execu- tive of the world business organization, he oversees an array of activities designed to help companies deal with the challenges of globalization and represent the interests of world business to governments and intergovernmental organizations. Mr Rozwadowski, a busi- nessman with broad international experience, has lived and worked on five continents, holding senior executive positions in Bahrain, Belgium, Brazil, France, Germany, Singapore, the United Kingdom, and the United States. He speaks several languages, including English, French, Portuguese, Polish and Spanish.
He was President of the Latin American and Caribbean Division of MasterCard between 1999 and 2004. Previously he was the company’s Executive Vice President for Europe, the Middle East and Africa, based in Belgium. Before joining MasterCard Jean Rozwadowski held numerous executive posi- tions during a 20-year career with American Express, heading up the Southeast Asia and Middle East divisions, based in Singapore and Bahrain, respectively, and leading American Express operations in Brazil for six years. He also served as President of the American Chamber of Commerce in Sao Paulo (Brazil).
Mr Rozwadowski was born in the Netherlands to a Polish father and a French mother and grew up in South Africa. A French national, he graduated with a MBA degree from the Amos Tuck School of Business Administration at Dartmouth College in Hanover, New Hampshire and earned his undergraduate degree from the Ecole Supérieure de Commerce de Paris. His wife is Brazilian and they have two children.
WCO News – No 61 – February 2010 37 I N CONVER S AT I O N
“Working together is W.N: How can one create a relationship of trust between public and private partners, develop mutual knowledge, and facilitate the sharing of information, the best if not the only experience and expertise? In other words how can one maintain existing links and ensure that desired improvements come to fruition in the framework of a chance to tackle the sustainable, active and responsible partnership?
mounting challenges J.R: Trust has to be earned, in both directions. Traders earn trust by demonstrating consistent high levels of compliance. Customs authorities earn trust by avoiding arbitrary procedures and that both communities implementing transparent, predicable processes, including effective prior consultation with business regarding planned reforms. As in everything else, trust has to be established by respon- face in managing the sible behaviour over an extended period of time. But it can be lost overnight by irresponsible behaviour or unwelcome surprises. border transactions of W.N: If you had just one message for the international Customs community, a globally integrated what would it be?
economy.” J.R: Although it will not solve all the significant challenges we face, I believe that a great step forward could be made if we could establish meaningful and durable dialogue between Customs and business at international and national levels. Working together is the best if not the only chance to tackle the mounting challenges that both communities face in managing the border transactions of a globally integrated economy. We would like to strengthen the cooperation between the ICC, the World Chambers Federation, and the WCO to achieve our common objec- tive of facilitating trade for the global business community.
More information www.iccwbo.org
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Cotecna assists Customs in their modernization by developing the services and tools to respond to Customs’ needs on a worldwide basis.
Services Scanning Services Customs Valuation (ValueQuest®) Risk Management System (CRMS®) Technical Assistance Bonded Warehouse Management Supply Chain Security 38 Electronic Transit Monitoring WCO News – N Porto 61 –Community February 2010 System (single window for trade & governments) I N CONVER S AT I O N
We cannot expect to find some sort of “magic bullet” in a highly uncertain global financial environment...
At a time of global financial and economic crisis coupled with budget restrictions, the Chairperson of the Finance Committee, Thomas Schoeneck, offers his insights into the impact of the crisis on the WCO’s budget management.
The Finance Committee is a consultative body of the WCO Council. Seats are allocated on a regional basis in accordance with the number of active Members in the region. Members are elected for a one year-period, renewable indefinitely. The two Members paying the highest contribution to the Organization’s budget are automatically granted Finance Committee membership. The Committee acts as an advisor to the WCO’s decision-making bodies and is also a special and active Secretariat partner when it comes to budget and financial matters.
WCO News: You chaired the Finance Committee for W. N.: Could you please share your thoughts on the the first time on 26 October 2009. What were your WCO’s current budgetary position and pick out the initial impressions? key aspects thereof?
Thomas Schoeneck: Well, I have been a delegate to the Finance T..: S The WCO’s budgetary position remains tense. The twelve- Committee since 2004 so I have had a good while to acquaint year period during which Members’ contributions were frozen myself with the subject-matter and most of the people actively has had consequences that have not yet been overcome. I am involved either from the Secretariat or delegations. Of course, not sure how widely known this fact still is, but we should recall there is still a big difference between being a delegate, where that that one Member country made a large donation to the you represent national positions, and being the Chairperson, Organisation’s reserves at the start of the nineties. At the time, it whose job it is to engage the delegations in dialogue to work on was decided that this very noble gesture should be used to freeze common positions for the Committee. Members’ contributions at that year’s level. Rises in expenditure in the following years would be financed from the Organisation’s Taking over from our highly esteemed colleague, Paul Ngong- reserves. Nguema, I have benefited from the fact that the Finance Com- mittee is functioning excellently and boasts many top experts This decision was extended over the years, leading to a dramatic among its delegates. Constructive and critical discussion is the decline in reserves, which were then at risk of falling below the a hallmark of the delegations’ work, as is the will to achieve minimum reserve fixed by the Council. The WCO was thus in consensus. Our shared aim is to allow the WCO to do the best danger of becoming insolvent. Under Robert Lüssi (Switzerland) work possible, while imposing the lightest possible financial bur- as its Chairperson at the time, the Finance Committee managed den on its Members. The Secretariat deserves a special mention to find a way out of this situation during the last decade, restor- for its complete openness and transparency. It has supported ing the WCO’s financial health in small steps. The 3% annual the Finance Committee in every way possible and never failed increases in contributions in recent years were part of the solu- to deliver. That certainly makes the Committee’s work a great tion, as were the considerable improvements in the Organisa- deal easier. tion’s internal efficiency.
WCO News – No 61 – February 2010 39 I N CONVER S AT I O N
However, the WCO was also given new tasks and faced new Council with a carefully considered and moderate proposal for costs, particularly in the area of personnel. Because of these, the WCO’s coming financial year. the recent increases in contributions have not yet brought the budget to a lasting equilibrium. It is here that the Finance Com- We cannot expect to find some sort of ‘magic bullet’. Instead, mittee has the difficult task of striking the right balance between the Finance Committee will have to work together with the Sec- increasing revenues – and that in times of financial crisis – and retariat to analyse closely all individual positions in the coming limiting expenditure or improving efficiency. 2010/2011 budget and determine where sav- The Finance Committee’s work, which is ings can be made. In the same vein, the ‘lapse largely technical in nature, thus carries con- “The Finance Committee factor’, which means delaying the occupation siderable political significance. has the difficult task of of vacant posts, will surely also come into play again this year. W. N.: Against the current backdrop striking the right balance of a highly uncertain global financial between increasing However, balancing the budget also depends environment, how can appropriate heavily on the Working Group on Publications. measures be taken to maintain a bal- revenues – and that in This group currently has one of the most thank- anced WCO budget in the short term? times of financial crisis – less jobs at the WCO; finding a compromise between free access to WCO publications, T..: S I would love to be able to provide a and limiting expenditure which Members and other involved parties concrete answer to that question. However, or improving efficiency.” want, and a revised publications policy that in I fear that will not be possible. All of the no way leads to higher contributions – a require- Finance Committee’s efforts to balance the ment which Members have been equally clear budget permanently are based on one or more of three basic about. In this difficult case, it is my particular wish that the long- approaches, namely raising revenues, cutting expenditure and established culture of consensus within the WCO prevails and abandoning certain tasks. All three are difficult to implement: that a compromise can be found with the support of all Member. • Revenue increases by means of higher contributions have found acceptance among Members in recent years, but are W. N.: Could you tell us a little bit about your pro- now meeting with reservations because of the financial crisis. fessional experience and the priorities and projects The Secretariat has already embarked on a range of other entrusted to you within your Administration? revenue-raising measures, such as renting out premises, so we cannot expect much new leeway to be found here. T..:y S M field of work in Germany’s Customs administration includes various tasks in cooperation with the EU, technical • Cuts in spending, for example by outsourcing administrative cooperation with third countries, legal and administrative assist- services and raising efficiency in WCO administration, have ance, issues surrounding international agreements or any mat- already been implemented on a large scale. As a result, the ters relating to bilateral cooperation in the international sphere. number of staff at the Organisation has been reduced from So the WCO’s finances are only one of many exciting topics I 122 to 106 over the last ten years. The Organisation is now deal with at work. only able to complete core tasks thanks to a total of 26 Tech- nical Attachés provided by Members. These countries do so When my duties allow me some time for my private life, I enjoy voluntarily and at their own expense, which is a clear testi- spending time with family and friends, reading a book – prefer- mony to the great esteem in which Members hold the WCO. ably accompanied by a glass of good wine – or going on long walks in the countryside. • Abandoning tasks would first require the Council to express its common will, something which is out of the Finance Com- More information mittee’s hands. The impression I have gained from Council [email protected] meetings in past years, how- ever, is that this solution would probably be the most difficult Biography to achieve. Thomas Schoeneck, born in 1956, heads the division for Interna- What does this mean for the tional and EU Customs Cooperation at Germany’s Federal Ministry Finance Committee’s work of Finance, the Ministry which incorporates the top level of the this year? The members of the German Customs administration. He holds a degree in law and Finance Committee are mindful has worked in the Customs administration since 1988. Fol- of their responsibility towards lowing a period in charge of excise duties at a regional office, Member’ budgets, which have he moved to the Federal Ministry of Finance in 1991, where suffered in the financial crisis. for many years he was part-responsible for personnel matters They will therefore present the and later for the organisation of German Customs. Thomas has served in his current division since 2002 and became its head in 2004. He is married and has two children.
40 WCO News – No 61 – February 2010 O U R M E M B E R S w or l d
Dakar hosts its second Customs-Business Forum
he Senegalese Customs administra- France’s Director General of Customs and The Forum is part of a broader effort to Ttion organized its second Customs- Indirect Taxation, Jérôme FOURNEL, gave prepare for the introduction of Author- Business Forum in Dakar from 4-8 a presentation on French Customs’ experi- ized Economic Operator (AEO) status in November 2009. ence in the areas of facilitation and advice the country. for businesses. Following an initial effort in 2007 with the theme “What kind of Customs-Business The main measures agreed on by par- More information partnership can help make companies ticipants included the drafting of a pact www.douane.finances.gouv.fr more competitive?” this year’s Forum or charter setting out the privacy and www.douanes.sn focused on questions relating to the grant- security policy to which Customs and ing of tailor-made privileges to companies. businesses must subscribe as a basis for all facilitation arrangements, and how to With a view to meeting the expectations improve the business advice function. of the private sector as fully as possible, Senegalese Customs was keen to set up The Forum also reflects Senegal’s a permanent framework to promote the determination to rise to the challenge dialogue that Customs is already engaged of attracting investment and promot- in with international trade operators, as ing competitiveness in an environment part of its economic mission to provide of heightened international competi- advice to businesses and support their tion, accentuated by the globalization endeavours to be competitive. of trade. Ethiopia marches ahead with its Columbus Customs modernization programme
he Ethiopian Customs Authority has Having recruited a large number of new Tbeen going through many changes staff – young people with university recently. First, it merged with the Min- degrees and diplomas – ERCA needed istry of Revenue and the Federal Inland some assistance in training its staff and Revenue Authority to form a new organi- in creating its own training capabilities. zation called the Ethiopian Revenue & They are being supported in this regard by Customs Authority (ERCA). Second, based the WCO through a long-term coopera- on a strategic action plan developed tion plan aimed at building the capacity after the WCO diagnostic study, a long- of ERCA. During the second semester of term modernization programme is being 2009, several workshops took place in implemented under the WCO Columbus Addis Ababa, Ethiopia’s capital. Programme; a global Customs capacity building initiative. Human Resource development TheCO W e-learning platform was Train-the-Trainer Workshop on Rules of Origin Ethiopia is also a pilot country for the WCO installed in August 2009. Adding to this, capacity building tri-partite model, where ERCA staff have also benefited from provide expert training in HS and to ERCA is teaming up with a number of other a train-the-trainer programme cover- consolidate train-the-trainer techniques. administrations for sustainable twinning ing specific Customs technical areas as Participants came from ERCA Head- support. Under this pilot project, the well as a workshop on risk management quarters and Customs offices around first Africa-Africa Columbus Programme techniques relating to counterfeiting the country, and included post-clear- project was initiated when a tri-partite and piracy. ERCA intends to roll-out its ance audit officers, assessment officers, cooperation “arrangement” between ERCA enhanced know-how on a national basis. inspectors, etc. There was a good mix of and the Uganda Revenue Authority (URA) skills with some having worked in vari- with the WCO as a facilitator was launched An HS Expert Trainers Workshop was ous operational areas while others had – others have since followed. held from 4 to 13 November 2009 to significant headquarters experience.
WCO News – No 61 – February 2010 41 O U R M E M B E R S w or l d
In o order t pave the way for regional Management and leadership accreditation of experts in the field of development origin capable of delivering sustain- Ast i was necessary for ERCA senior able training and technical assistance management and staff to have a fuller activities according to WCO standards, a understanding of modern Customs man- Train-the-Trainer Workshop on Rules of agement and techniques, ERCA provided Origin was held from 25 November to 2 the perfect opportunity for a pilot Work- December 2009. The Workshop provided shop on Management Development. 20 ERCA officials with factual knowledge The pilot was held from 26 October to 6 in the area of both non-preferential and November 2009 and based on the core Workshop on Management Development preferential origin and developed basic components of the WCO PICARD Profes- teaching skills enabling participants to sional Standards. cascade training on rules of origin within their administration. Delivered over two working weeks, the pilot followed an interactive workshop During these two workshops, potential approach. Sessions took a variety of trainers for ERCA were identified. From forms from presentations to case studies 14 to 18 December 2009 a Workshop and resulted in the production of three on Risk Management Techniques took action plans covering key management place at the international airport mixing areas within ERCA. both theoretical and operational exer- Workshop on Risk Management Techniques cises. Participants learned how to target The WCO Management Development goods by reading transport documents Programme will continue with more pilots and using risk indicators. This knowledge and the results of these pilots will be pre- translated into succesful action during sented to the Capacity Building Commit- the operational session as several pack- tee in April 2010 with the aim of offering ages selected for inspection were found Management Development Packages to to contain counterfeit goods – including WCO Members. perfumes so perfectly reproduced that it was only after analysing the quality of the glue used on the plastic film protecting a More information consignment that the forgery was proved. [email protected]
Huge contraband cigarettes seizure in Ireland
120 million illegal cigarettes The operation which targeted the This multi-agency operation saw the Irish worth an estimated €50 mil- activities of an organised crime group Republic’s Revenue and Customs Service, lion were seized in Ireland on operating both north and south of the the National Police Service, the Criminal border involved the surveillance of a ves- Assets Bureau, the Irish Naval Service and 27 October 2009 as part of a sel named MV Anne Scan that had arrived Air Corps, as well as Northern Ireland’s multi-agency operation, code- at Greenore Port from the Philippines car- Revenue & Customs and Police Service named Samhna, headed up by rying a cargo declared as “animal feed”. working together. The European Anti- Irish Revenue’s Customs Service. Fraud Office (OLAF) was also involved Customs officers kept the vessel under and will coordinate follow-up interna- surveillance as they suspected that a con- tional investigations. Over 150 officers evenue officials said the find is “poten- signment of contraband cigarettes was from the various Agencies participated in Rtially” the largest seizure of illegal cig- concealed within the cargo. A number of the field during the operation. arettes ever made in Ireland. They were premises were searched after some of the destined for markets in the Irish Republic, cargo was unloaded from the ship onto “The success of this operation is a credit Northern Ireland and the UK and repre- waiting trucks. The vessel itself was also to the close working arrangements and sented a loss of approximately €40 million searched. The cigarettes were hidden in cooperation between the various law to Finance Ministry coffers. bags among the animal feed. enforcement agencies both nationally
42 WCO News – No 61 – February 2010 O U R M E M B E R S w or l d Trade facilitation, Mongolia’s answer to the crisis
he global financial crisis has had Customs documents, reducing clearance Ta huge impact on the Mongolian times, encouraging online declarations, economy, making it highly dependent eliminating red tape, making Customs on foreign trade. Since the beginning of transparent, and promoting border man- 2009, there has been a sharp reduction agement. in exports which has led to a decrease in revenue collections. This has been exacer- The Strategic Plan of Mongolian Customs bated by goods transportation costs being aims to: much higher than in other countries of the • Upgrade Customs’ IT level and make region which does not favour the compet- it closer to the standard of developed itiveness of Mongolian exports. countries. • Lessen the number of trade-related In this difficult context, Mongolia has taken Customs documents and reduce the strong measures to ensure national eco- release time twofold. All these actions are in line with the nomic security and Customs is playing a • Analyse risks at every stage of Customs WCO’s Customs in the 21st Century stra- crucial role in ensuring this. Protectionist control and decrease physical inspec- tegic policy and will no doubt contribute trade policy not being an option, Mongolia tions substantially. extensively to safeguarding Mongolia’s Customs has concentrated its efforts on • Create a unified Customs control national interests and economic security. decreasing the cost of doing business. system using the network between Customs administrations. To reduce the costs related to Customs • Provide an opportunity to all clients to control and clearance, short-term mea- declare online and introduce a paper- sures have been taken such as not to less declaration system. increase import duties and to decrease • Equip border Customs officers with the number of dutiable and taxable goods much needed facilities and inspec- More information and services. Other actions included tion devices, and build transportation Tsetsgee Sukhee simplifying and lessening trade-related logistic centres. [email protected]
and internationally. Criminals have no respect for national borders and interna- tional cooperation is now more essential than ever for law enforcement agencies,” Irish Revenue Commissioner Liam Irwin said. “This is a shining example of a multi- national, multi-agency response to crimi- nal activity and all the agencies involved should be commended for the part they played in this successful operation,” he added.
© Irish Customs More information www.revenue.ie Customs officers at the scene in Greenore Port
WCO News – No 61 – February 2010 43 O U R M E M B E R S w or l d Norway and Sweden: 50 years of trade facilitation
n8 2 October 1959 the governments The formalities of the agreement changed Oof Norway and Sweden signed a with Sweden’s EU-membership in 1995 most significant and unique agreement and the agreement was transformed into on Customs cooperation. This agreement an agreement between the EU and Nor- provided for Customs officers to cooper- way. It is however in principle unchanged ate in carrying out Customs procedures and vivid, and was duly celebrated at for the two countries on one another’s the border post of Eda on 28 October behalf at the border, and to execute this year – 50 years after its inception. enforcement tasks up to 15 kilometres On this occasion both Director Generals into the territory of the other. of Customs – Bjørn Røse (Norway) and Karin Starrin (Sweden) – stated that the Today 12 Customs Houses (7 Norwegian agreement was working to both coun- Karin Starrin and Bjørn Røse celebrate 50 years of and 5 Swedish) are situated along the tries’ satisfaction, leaving no doubt that Customs cooperation (Photo: Thore Simenstad). 1,643 kilometre border, all of them han- the cooperation will be continued and dling the different legislation and systems developed. of the two countries. In practical terms this means “one stop” for all transport- More information ers crossing the border. Added to this, www.toll.no Customs on both sides handle a huge variety of border related tasks for many Norwegian Minister of Finance, other government authorities; the Single Sigbjørn Johnsen (centre), at the celebrations Window concept has therefore in practice with Bjørn Røse (left) and Karin Starrin (right) been a reality for a long time. (Photo: Thore Simenstad)
The Eurasian Economic Community continues to integrate
unio Mikuriya, Secretary General of Kthe World Customs Organization, and Tair Mansurov, Secretary General of the Eurasian Economic Community (EurAsEC), shake hands on 25 January 2010 during an and they will be removed from the Rus- The WCO is ready to offer all technical event organized by EurAsEC to present the sian-Kazakh border a year later. advice and assistance to get the Customs integration processes in the region. Union operational as soon as possible. It One of the crucial elements for regional has already scheduled two workshops for The Customs Union between Belarus, integration is to base procedures on global Customs Union members, one covering Kazakhstan and the Russian Federation standards that connect the Customs tariff and nomenclature, and the second, was concluded on 27 November 2009 and Union to the outside world. Conscious of implementation of the Revised Kyoto Con- the three countries have begun to apply this need, the Customs Union has made vention. The first of these workshops will uniform customs tariffs since 1 Janu- every effort to ensure that its Customs be held in Minsk in February 2010 with ary 2010. The Customs Union itself will procedures are in conformity with the sponsorship from the CCF/Japan fund. become effective when its Customs Code WCO Revised Kyoto Convention; concrete comes into force on 1 July 2010. Customs proof of this is Kazakhstan’s formal acces- More information checkpoints on the Russian-Belarusian sion to the Convention during the WCO Michael Shishatski border will be removed on the same day, Council Sessions last June. [email protected]
44 WCO News – No 61 – February 2010 O U R M E M B E R S w or l d Norway and Sweden: 50 years of trade facilitation Celebrating 21 years of TradeNet® – Singapore’s Single Window
s Singapore Customs celebrated its that integrates all import, export, trans- A100th anniversary in January 2010 and shipment documentation, and processing took stock of its numerous achievements procedures. The system was implemented through the years, TradeNet – Singapore’s in 1989 under the name TradeNet. It was Single Window initiative, which marks its the world’s first nation- 21st nyear i 2010 – stands out for its role wide electronic Single “TradeNet was implemented at a time when boosting ex- in revolutionising the trade documenta- Window. ternal trade was identified as a major economic goal for tion process in the city-state. TradeNet Singapore. The innovative use of IT was a tool to enable has enhanced the competitiveness of Sin- When TradeNet was Singapore to implement the concept of a single trade gapore as a global trade hub, creating an launched in 1989, it sig- overall positive trading environment for nificantly reduced the window, to position Singapore’s economy for long-term the country and the region. We trace the turnaround time for the competitiveness. After 21 years and many rounds of impro- development and progress of this elec- preparation, submission vements, TradeNet remains the key enabler of Singapore’s tronic wonder that makes paperwork a and processing of trade external trade.” thing of the past. documents for permit applications. With a sin- Mr Fong Yong Kian, As a small city state with limited land and gle permit application, Director-General of Customs, Singapore resources, trade has always been a key data and information can economic growth factor for Singapore. be transmitted to Customs and other 4.0 was rolled-out. From the days of the The volume of its international trade trade control agencies at the same time, Electronic Data Interchange (EDI) System has grown from S$105 billion in 1983 to with payment made electronically. This which ran on a mainframe computer to S$928 billion in 2008, a whopping 3.6 initiative to transact with the whole-of- the web-based access today, TradeNet times that of Singapore’s GDP. Government electronically involved more has stayed ahead of time. More than a than 15 agencies and organisations, cut- technological advancement, service and Voluminous paperwork to capture infor- ting down unnecessary paperwork for process innovations are key to its success mation on the movement of goods, as traders. and international recognition. well as to fulfill commercial and regula- tory requirements is part and parcel of Since its implementation, TradeNet has Today, TradeNet Version 4.0 offers an the international trading system. One key been continually improved and enhanced extensive suite of permit services with a document that would be required for the through many rounds of upgrades, the lat- simplified permit structure and less dec- import, export or transshipment of goods est being in 2007 when TradeNet Version laration fields, to self-help facilities for through a country is the trade permit.
In the early 1980s, Singapore processed about 2.5 million trade declarations Fast facts about TradeNet a year, with approvals of each permit taking an average of two to four days. • n I the early 1980s, various Government agencies were processing about 2.5 The processing of a permit application million trade declarations each year. Traders had to submit multiple forms involved multiple government agencies and sets of documents to various agencies, and approval took an average of such as Customs, the trade authority and two to four days. the various controlling agencies. There was also the need to physically pay the • TradeNet made its debut in 1989 as the world’s first nationwide Electronic permit fees, duties and taxes for release Data Interchange (EDI) system for clearance of trade documentation. With of the goods. TradeNet, traders could submit a single form through a single interface to all relevant agencies. As the trade volume continued to climb, to ensure the country’s long-term com- • Today, TradeNet handles almost 10 million permits a year and processes petitive position, Singapore wanted to 90% of declarations within 10 minutes. make trade simple, fast and easy. The har- nessing of IT was identified as a strategy • TradeNet is available 24/7. The fee for each TradeNet declaration today is to achieve this objective. It was an impor- S$2.88, down from S$6.40 when the system was first implemented in 1989. tant mobilising factor for the realisation of Singapore’s national Single Window
WCO News – No 61 – February 2010 45 O U R M E M B E R S w or l d
obtaining copies of approved permits and listing of transacted permits taken, among others. Other than the declaration of imports and exports, traders can also amend permit details, cancel unused permits, and submit claims for the refund of duty and GST (General Sales Tax) erroneously paid, making it a one-stop solution for Government-related transactions. TradeNet 4.0 has enabled businesses to save almost $4 million a year from reduced trade dec- laration costs.
Plans are being drawn up for the next upgrade of TradeNet and a new quantum leap in system functionality. In the next couple of years, traders can expect more services to be rolled-out, including mobile device enablement and access.
More information © SPH Magazines Pte Ltd. Permission required for [email protected] reproduction."
Sri Lanka Customs celebrates 200 years of service
The Customs Department of Sri Lanka celebrated its bicentenary on 25 August 2009.
As part of the celebrations organized to mark the occasion, a pure silver commemorative coin, a postal stamp and a souvenir publication entitled “From the Silk Route to Cyber Space” were issued.
More information www.customs.gov.lk
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Mission Modernization
The mission of Tunisia’s General Directo- A programme is underway for the reor- rate of Customs is three-fold: ganization of SINDA – the Customs IT sys- • Fiscal mission - collecting duties, taxes tem – to accommodate a totally paperless and other charges levied on the impor- environment. In June 2005 Tunisian Cus- tation and exportation of goods. toms signed the letter of intent to imple- • Economic mission - facilitating proce- ment the WCO Framework of Standards. dures and ensuring a healthy climate of A diagnostic mission led by WCO experts competition. was carried out in April 2007, making it • Security mission - controlling the circu- possible to formulate recommendations, lation of goods and capital, both on the evaluate needs, and identify the measures Counterfeiting domestic market and at the borders. to be taken in Phase II of the WCO Colum- bus Programme. Respectful of its international commit- Workforce: 5342 Customs officers ments, and in particular those arising out Single Electronic Window of its membership of the WTO, the Tuni- New Customs Code sian Government applies IPR protection In e Tunisia th “Liasse Unique” (single bun- legislation under which it can take action A new Customs Code based on WCO dle) system has been introduced by the against goods bearing counterfeit manu- standards (Revised Kyoto Convention, establishment of an integrated automatic facturer’s marks, trademarks and service Istanbul Convention, etc) entered into system for the accomplishment of foreign marks, goods incorporating a copied inte- force on 1 January 2009. The new Code trade formalities – this is a virtual Single grated circuit configuration, and goods establishes the legislative framework for Window for the paperless handling of incorporating a counterfeit design or virtual electronic procedures by recogniz- foreign trade formalities. The company industrial model. The clearance of goods ing an electronic goods declaration, an Tunisie TradeNet (TTN), created in Febru- which may infringe a protected industrial electronic signature and the accomplish- ary 2000 with mainly public ownership, property right can be suspended follow- ment of Customs formalities, including is responsible for managing the central ing a request from the right holder, or on the payment of duties and taxes, remotely server of the “Liasse Unique”, which con- Customs’ own initiative. in a virtual environment. nects the different stakeholders including, in particular, the Customs, the banks, the The new Customs Code makes counter- The new Code introduces, for the ben- technical control departments, etc. feiting a Customs offence, and there- efit of operators, an appropriate appeals fore contains provisions prohibiting the framework which meets international The central server handles the circula- import, export, transit and circulation of standards. It also formalizes the imple- tion and electronic routing of various counterfeit goods in the Customs terri- mentation of international Customs com- foreign trade documents for the clear- tory. These new provisions will give Cus- mitments, notably those arising out of ance of goods at import and at export. toms the power to seize counterfeit goods the WTO Agreements, and includes legal At present, 100% of the “Titres du Com- regardless of their status at the time, and powers to combat counterfeiting. merce Extérieur” (documents required notwithstanding the provisions of the for international trade transations), special laws governing industrial property. 100% of the Ministry of Trade’s technical control Contacts documents, and 100% Director General of Customs of goods declarations are Mr. Slimen Ourak processed, electronically Tel.: +216 71 794 685 and virtually, by TTN. Fax: +216 71791644 [email protected] Electronic payment of Head of International Co-operation duties and taxes has been Colonel Mohamed El Maher Kharrat possible since August Tel / Fax: +216 71795 920 2009. [email protected] Website: www.douane.gov.tn Address Rue Asdrubal -1002 Lafayette Tunis le Belvédère — Tunisia
WCO News – No 61 – February 2010 47 PtOo i n F V I E W
Trade-secret of the success of the Montreal Protocol: Customs in the frontline
The 16th of September last year commemorated the 23rd anniversary of the Montreal Protocol on Substances that Deplete the Ozone Layer. Monitoring the trade in ozone depleting substances (ODS) and their ozone-friendly substitutes has been the hallmark of the implementation of the Montreal Protocol. There is, therefore, much to celebrate as well as many challenges ahead for Customs officers around the world.
he Montreal Protocol is frequently Treferred to as the most success- ful multilateral environmental agree- ment (MEA) in existence. This treaty has reduced the production and consumption of ODS by more than 97% from historic baseline levels, and because most ODS are potent global warming gases, the Protocol has also eliminated at least 11 billion tonnes of carbon dioxide equiva- © Indonesia Customs lents, making it a significant contributor to efforts to combat climate change. The fact that each and every country in the Protocol’s innovative funding mechanism. Moreover, the functioning and success of world is Party to the Montreal Protocol the Protocol relies to a great extent on the effective enforcement of trade in ODS not only makes the Protocol a ‘Universal’ through the hard work and conscientious efforts of Customs officers across the globe. treaty , but it also symbolises the oppor- tunities that the world community have Managing through measurement to work in tandem to tackle the remaining challenges, including facilitating trade in At first, the role of Customs in the Montreal Protocol was principally focussed on ozone and climate friendly substances and monitoring imports and exports of ODS and collecting data which needed to be preventing illegal trade. provided to the Protocol’s Secretariat (the Ozone Secretariat) in fulfilment of each country’s reporting commitment. Customs were also tasked to collect any tax or duty At the start of this year the Montreal that respective countries levied on these goods. However a more significant role for Protocol reached a major milestone. Customs was soon to emerge. From 1 January 2010 the powerful ozone- depleting chemicals Chlorofluorocarbons Customs fills the gap overlooked by the law makers (CFCs) – widely used in refrigeration and air conditioning equipment – and The prospect of a black market for ODS was undoubtedly not anticipated by the Chlorobromocarbons (halons) – used legislators who first framed the Montreal Protocol and its early amendments, and in fire extinguishing applications – may when this emerged in the early 1990s it caught enforcement agencies off guard. It was no longer be produced anywhere in the estimated that in the mid-1990s around 20% of all ODS traded was done so illegally. world. The Montreal Protocol responded by introducing a licensing system requirement in 1997 and the United Nations Environment Programme’s (UNEP) Division of Tech- The reasons for this unprecedented suc- nology, Industry and Economics’ OzonAction Branch launched a suite of initiatives, cess are many, including strong political materials and capacity building services to provide assistance to Customs agencies will, the approach of common but differ- in developing countries to combat this smuggling. The role of Customs agencies in entiated responsibilities for both devel- combating this illegal trade became essential and their critical role in the success of oped and developing countries, and the the Montreal Protocol was sealed.
48 WCO News – No 61 – February 2010 PtOo i n F V I E W
UNEP’s OzonAction Branch, in collaboration with the Ozone Secretariat and other partners, has produced vari- ous guidelines and awareness and training material that can be downloaded in electronic format or ordered in hard copy from the OzonAction website: www.unep.fr/ozonaction/ © UNEP topics/customs.htm.
It’s only the beginning of the end
While the 1 January 2010 phase-out of CFCs and halons are indeed a success to be have a unique opportunity to contribute celebrated, this certainly does not signify an end to Customs’ work on the issue. There to reducing global warming by monitoring are some significant challenges ahead, not least for Customs and enforcement agencies. the illegal trade in HCFCs.
Experience has shown that the ban in production on CFCs and halons will not mean Customs officers, with the support of that unscrupulous traders will cease to smuggle these chemicals. As much equipment the WCO, UNEP and other agencies have currently being used may require CFCs and halons for servicing and continued use, increasing experience, awareness, capac- there is still much demand for these chemicals. A number of countries have remain- ity and tools to effectively face the chal- ing stockpiles and it is feared that these could find their way onto the black market. lenges ahead and to combat illegal trade in ozone depleting substances. The role It should also be noted that illegal production is a reality – indeed illegal CFC-producing of Customs officers as protectors of the plants have been closed down in the past. Chemical plants that produce similar chemi- environment is rapidly increasing and is cals, such as hydrochlorofluorocarbons (HCFCs), can be easily and quickly converted fundamental to the continued success of to produce the banned chemicals. The demand for these chemicals may not be totally the Montreal Protocol. satisfied by recycled material – creating strong incentives for the smugglers. Since the trade in recycled CFCs is not banned, mis-declaring newly-produced or stockpiled CFCs as ‘recycled‘ to enable them to be traded is a very real possibility. This technique was More information frequently used to smuggle CFCs and halons when developed counties were phasing Rajendra Shende out these chemicals in the 1990s. Head of Energy & OzonAction Branch United Nations Environmental In 2007 the Parties to the Montreal Protocol agreed to accelerate the phase-out of Programme - Division of Technology, HCFCs, chemicals which were adopted as transitional replacements for CFCs. Many Industry and Economics developed countries have controls already in place to prevent the import and export of these chemicals and restrictions will soon come into place in developing countries. There have already been reports of seizures of smuggled consignments of HCFCs in many countries in the world. Therefore to prevent history repeating itself, Customs officers in particular need to maintain their vigilance to prevent the illegal trade in these chemicals becoming entrenched, as was the case with CFCs and halons in the past. What’s more, due to the high global warming potentials of HCFCs, Customs
WCO News – No 61 – February 2010 49 Extend your international customs expertise WCO face-to-face training Program on International Customs concepts
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SAFE Framework of Standards & the concept of AEO 10 - 11 March Gain a clearer understanding of the SAFE Framework of Standards and get an overview on the latest developments WCO Data Model version 3.0 07 - 08 April Discover the new version 3.0 of the WCO Data Model which has been launched in December 2009 Harmonized System Amendments 2012 (optional beginners day on April 07th) 08 - 09 April Fully understand the major amendments in HS 2012 and their consequential effects on classifying products HS General Interpretative Rules 01 - 02 June Interact with classification experts from the WCO and exchange experiences with a variety of industry colleagues Customs Valuation and Transfer Pricing 15 - 16 June Increase your understanding about the Customs valuation and Transfer Pricing WCO Data Model version 3.0 15 - 16 June Discover the new version 3.0 of the WCO Data Model which has been launched in December 2009
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Global Congress firms up anti-counterfeiting and piracy alliance
he Fifth Global Congress on Combat- Ting Counterfeiting and Piracy which was held in Cancun (Mexico) from 2-4 June 2009 saw international delegates galvanize their efforts to fight the trade in counterfeit and pirated products around the theme “Bridging boundaries for shared solutions”. Hosted by INTERPOL in coop- eration with the Mexican government agency, Instituto Mexicana de la Propie- dad Industrial, delegates attending the Congress had the opportunity to listen to a number of speakers skilled in IPR issues, in particular IPR enforcement at borders.
Following the success of the first four Congresses, the last of which was held in Dubai during February 2008, partici- pants focused on developing tangible solutions to the current challenges in fighting counterfeiting and piracy glob- ally. It was recognized that in this time of worldwide economic uncertainty, leaders involved in the fight against counterfeit- ing and piracy had to sharpen their com- From left to right: mitment to IPR protection. Providing the Lou Alexander, ISMA; necessary resources to prevent organized Richard Heath, criminal networks from taking further INTA; Yo Takagi, advantage of the economic crisis was also WIPO; Mark Cobben, highlighted. Special panel sessions were BASCAP; Jorge Amigo also devoted to the increasing problems of Castaneda, IMPI; IPR infringements in Mexico, Central and Michael Schmitz, WCO South America.
The Organization for Economic Co-opera- tion and Development (OECD) presented INTERPOL Secretary updated data indicating that international General Ronald K. trade in counterfeit and pirated goods has Noble increased to more than US $250 billion – almost 2% of world trade – up from The WCO took the opportunity to apprise The Congress partners representing US $200 billion reported in 2007. Other the audience of its major programme to INTERPOL, WIPO, the WCO, the ICC- data released at the Congress showed build the border enforcement capac- BASCAP initiative, INTA and ISMA form a that economic losses from counterfeiting ity of Customs administrations across unique public-private partnership based and piracy is costing the economies of the the globe. This initiative would help Cus- on mutual commitment and recognition G20 countries more than €100 billion, and toms in its fight to stem the cross-border that the public and private sectors must putting 2.5 million legitimate jobs at risk. and internet traffic in counterfeit and work together to find solutions to the Another report released during the event pirated goods, with special attention growing global counterfeiting and piracy showed that 80% of consumers admit being paid to those goods which harmed problem. they regularly buy fake or pirated prod- the health and safety of people, such as ucts, with little remorse or concern about counterfeit foodstuffs and fake pharma- More information the consequences of those purchases. ceuticals. www.ccapcongress.net
WCO News – No 61 – February 2010 51 EVENT S
The Secretary General in the centre, surrounded by French (left), Belgian and Danish (right) dog handling teams, flanked by two motorcyclists from Belgian Customs International Customs Day 2010 …Customs and Business: improving performance through partnerships WCO Ad (English) 04/02/2010 14:35 Page 1 he international Customs community Customs Union shared their approach on Danish Customs and French Customs. Tand its partners met on 26 January the theme to some 200 guests. (photo 1) (photo 3) 2010 at WCO Headquarters to celebrate International Customs Day dedicated to The leitmotif running through their Chili, the Customs dog from Denmark and “Customs-Business Partnerships” this year. speeches was the necessary commitment winner of the WCO’s 2009 Photo Competi- Conference Organizer by Customs and Business to working more tion, was the “guest of honour”. Even more For Customs administrations, businesses closely together, redoubling their efforts appealing in real life than in his photo, like and professional associations, this was the to enhance international cooperation, and a true star, he charmed the audience, was ideal opportunity to demonstrate that a taking bold initiatives aimed at simplifi- very happy to be patted, and demon- WCO I.T. CONFERENCE & EXHIBITION 2010 policy of openness and exchange between cation, speed, flexibility, predictability, strated his extremely playful nature much Customs and the private sector can only effectiveness and fairness of procedures. to the delight of those present. (photo 4) 28-30 APRIL, BURLINGTON HOTEL, DUBLIN, IRELAND be beneficial in a period of change and common challenges, and to make the Kunio Mikuriya then presented a special The Secretary General’s message was 'Fusing Data to Transform Business Processes' point that Customs and business must WCO award to Ms. West for the excel- relayed by Customs administrations Conference Host work closely together in a shared endeav- lent cooperation that had been developed throughout the world through events Returning to Europe for the first time in eight years, the WCO IT Conference & Exhibition will take our to enhance performance. between the WCO and the PSCG, and in organized in conjunction with the private place in Ireland’s welcoming capital city of Dublin from the 28-30 of April 2010. With a worldwide gratitude for her years spent in the service sector. Customs officials, businesses and reputation for delivering high-quality content, the WCO IT Conference & Exhibition is an ideal WCO Secretary General Kunio Mikuriya of the international Customs community. professional association’s working day opportunity to: invited representatives from Customs, (photo 2) after day to strengthen “Customs-Busi- the private sector, the diplomatic com- ness Partnerships” were honoured on • Understand how fusing data can create new and exciting business solutions for custom technologies munity and the academic world to join To capture participants’ imagination, 26 January 2010 with WCO Certificates Corporate Event Sponsor of Merit awarded by WCO Members on him in celebrating this special day in the a demonstration was given by Cus- • Discover how modern IT solutions can transform the processing of data in border technologies international Customs calendar. Mar- toms dog handler teams specialized in behalf of the Secretary General. tin Wassell, First Director at the Inter- detecting explosives and drugs. Simi- • Explore new ways in which industry stakeholders and border agencies can work together to national Chamber of Commerce (ICC), larly, to illustrate by example the theme A selection of photos illustrating Interna- create best practices Carol West, Secretary of the Interna- of International Customs Day 2010, an tional Customs Day celebrations across tional Federation of Customs Brokers exhibition was organized that showcased the globe will be published in the June • Meet key industry figures in one place and access the approx. 500 delegates expected to Associations (IFCBA) and Chairperson the Customs-Business Partnership activi- edition of WCO News. attend of the WCO Private Sector Consultative ties of the WCO, the ICC, the European Conference Secretariat Group (PSCG), and László Kovács, Euro- Union’s Directorate-General for Taxation More information pean Commissioner for Taxation and and Customs Union, Belgian Customs, www.wcoomd.org MCI Dublin To Register to attend the WCO IT Conference & 1 Clarinda Park North Dun Laoghaire, Exhibition 2010 or to download the official Exhibition Co Dublin, Ireland & Sponsorship Prospectus, please visit the conference T: +353 1 2802641 52 WCO News – No 61 – February 2010 F: +353 1 2805405 E: [email protected] website www.wcoomdit2010.com W: www.wcoomdit2010.com 4 EVENT S
3 éEMENTV é N S
1 2
WCO Ad (English) 04/02/2010 14:35 Page 1
Conference Organizer
WCO I.T. CONFERENCE & EXHIBITION 2010 28-30 APRIL, BURLINGTON HOTEL, DUBLIN, IRELAND 'Fusing Data to Transform Business Processes' Conference Host Returning to Europe for the first time in eight years, the WCO IT Conference & Exhibition will take place in Ireland’s welcoming capital city of Dublin from the 28-30 of April 2010. With a worldwide reputation for delivering high-quality content, the WCO IT Conference & Exhibition is an ideal opportunity to:
• Understand how fusing data can create new and exciting business solutions for custom technologies Corporate Event Sponsor • Discover how modern IT solutions can transform the processing of data in border technologies
• Explore new ways in which industry stakeholders and border agencies can work together to create best practices
• Meet key industry figures in one place and access the approx. 500 delegates expected to attend Conference Secretariat
MCI Dublin To Register to attend the WCO IT Conference & 1 Clarinda Park North Dun Laoghaire, Exhibition 2010 or to download the official Exhibition Co Dublin, Ireland & Sponsorship Prospectus, please visit the conference T: +353 1 2802641 WCO News – No 61 – February 2010 F: +353 1 2805405 53 E: [email protected] website www.wcoomdit2010.com W: www.wcoomdit2010.com EVENT S HS plays its part in protecting the environment
hirty-five delegates representing The Workshop cov- Tcountries and international/regional ered an overview of organisations in the Asia Pacific region the HS Convention, participated in a Green Customs Forum the structure of the in Jeju (Republic of Korea) from 3-6 Nomenclature, and November 2009. Discussions centred on it s maintenance the efforts made by Customs to protect among others, with the environment. an emphasis on issues related to On the last day of the event, a work- MEAs. shop on the Harmonised System was conducted. In fact, the most important Participants deep- products falling within Multilateral Envi- ened their under- Delegates to the Green Customs Forum ronment Agreements (MEAs) have been standing of HS 2007 amendments the ozone layer (ODS) and the Recom- identified by HS codes, either in the HS related to MEAs, and got acquainted mendation on the insertion in national itself or in a WCO Council Recommenda- with the HS 2012 amendments includ- statistical nomenclatures of subheadings tion with a view to inserting subdivisions ing those related to MEAs. They also dis- for substances controlled under the inter- at the national level. cussed new classification examples, and national Chemical Weapons Convention. exchanged opinions on policy relating to Since more than 200 countries and Cus- tariffs and classification. Members needing technical assistance toms or economic unions use the HS for in this area should contact the WCO their Customs tariffs or statistical nomen- The WCO will follow-up this meeting by Secretariat. clatures, it is the most appropriate instru- promoting the acceptance and implemen- ment to monitor and control the import tation of the Recommendation on the and export of various products covered by insertion in national statistical nomen- MEAs and other agreements such as the clatures of subheadings to monitor the More information Chemical Weapons Convention. movement of substances that deplete [email protected]
The Forum gave Customs administrations Technology developers an opportunity to share their experiences on the technologies they use, to voice meet users their needs, and also to discover some of the new tools available on the market; Stimulating exchange between the developers and all thanks to an exhibition giving direct users of technology – this was the goal of the WCO’s access to a variety of products and techni- cal solutions. For the private sector it was Technology and Innovation Forum held in Brussels an occasion to interact with users; to hear on 5 and 6 November 2009. their concerns about existing products and to note requests for emerging solutions.
wide range of different technologies is available today, from large scanning The debates highlighted in particular the A devices to small holograms; each in their own way assist Customs and other factors to be taken into account when border agencies to better meet their performance targets and objectives by helping purchasing heavy technology solutions, detect the presence of suspect goods, identify controlled compounds, materials and the stumbling blocks and difficulties and alloys, or recognize origin and guarantee the integrity of the product being which could emerge when installing such marketed. To ensure that these technologies are even more effective, designers have solutions. The potential problems relat- to interact with users. ing to public procurement and financing,
54 WCO News – No 61 – February 2010 EVENT S WCO Revenue Management Conference
The global economic downturn sparked a significant drop Strategy and leadership are more impor- in Customs revenue collection owing to the plunge in tant than organizational structure – international trade volumes. Developing countries were In the reform process when strategy and especially harmed because the bulk of their national leadership are successful, the appropriate structure generally follows. Strong lead- revenue comes from Customs duties. ership can generate sustainability and improved performance. The strategies touted by speakers included, among other o assist its Members, the WCO took a from international organizations such as things, promoting voluntary compliance, Tnumber of actions that included inter- the IMF, the OECD, and the World Bank, forging an outcome oriented system, and facing with the G20, enhancing capacity an academic from the Stockholm School upgrading enforcement capacity. building delivery, and launching the WCO of Economics, and the Chair of the WCO Revenue Package – a portfolio of WCO Private Sector Consultative Group. Successful revenue management reform tools and instruments relevant to reve- requires hard work – nue collection and for identifying gaps in Key conference conclusions capacity. The WCO also hosted a Revenue While there are several organizational Accessibility of data, expertise, the cul- Management Conference to foster discus- models, there is no “one size fits all” tural variance between Customs and tax sions on methods for fair, effective, and solution – along with the reduction in administrative efficient revenue management. expenses requires thoughtful consideration. Various organizational models exist for The conference took place on 10 and 11 revenue management and decisions on WCO tools and instruments can contrib- December 2009 at WCO headquarters what model to adopt should be guided ute to successful revenue collection – and was attended by over 100 partici- by a country’s economic, political, and pants from all six WCO regions. High- demographic characteristics, and its The implementation of the WCO Reve- calibre speakers included a number of revenue collection objectives and expec- nue Package, AEO programmes, and the Customs Directors General, officials tations. revised Kyoto Convention (RKC) can lead
infrastructure and development needs (location, including purchase of the land required), installation and operation issues (in particu- lar staff training), maintenance and purchase of spare parts, staff health (exposure to radiation), and the limits of the technology were some of the many subjects addressed by speakers.
A speaker from the US Department of Energy presented the instru- ments developed to facilitate the identification of goods, in par- ticular X-ray fluorescence spectroscopy analyzers which identify controlled alloys, linked to an electronic database providing infor- mation on goods and controls. The data base contains checklists covering the different regimes, information on goods and references of strategic goods in the Harmonized System. Border services can, therefore, quickly identify an alloy and rapidly determine whether the suspect product requires a licence.
In some cases no single technology – not even a scanner or detec- tor – is enough to detect a specific object, substance or material.
A selection of technology solutions on show during the exhibition
WCO News – No 61 – February 2010 55 ZP_ad_WCO_010908_ƒ :WCO 1/12/09 5:46 PM Page 1
f l a s h i n f o ®
Security Scenario n o . 2 4
It is 10:30 p.m. at a border crossing. A man waits in a late-model cargo van, a cigarette dangling from his mouth. Instructed to drive through the screening system, the driver, a regular, confidently complies. He grins, shifts into gear, and directs the vehicle through the portal. A Customs officer carefully analyzes three X-ray images on the system’s monitor. Several anomalies are clearly visible in the front tire, driver’s side. The officer immediately knows he is looking at a large quantity of drugs. “Could you step out, sir?” says another official. The man’s grin vanishes.
Would your cargo inspection system find the drugs? If you don’t have the Z Portal® system, it won’t. AS&E’s Z Portal three-sided screening system uses proprietary Z Backscatter technology to detect stowaways, drugs, explosives, and other contraband, which appear bright white in the image for easy image interpretation.
TO LEARN MORE ABOUT Z PORTAL, GO TO WWW.AS-E.COM/ZPORTAL.
AMERICAN SCIENCE AND ENGINEERING, INC. | 829 MIDDLESEX TURNPIKE | BILLERICA, MA 01821 USA TEL: 978-262-8700 | FAX: 978-262-8804 | [email protected] | WWW.AS-E.COM 56 WCO News – No 61 – February 2010 EVENT S
create a robust division for combating corruption and for identifying potential areas where it could flourish.
Information exchange is vital in address- ing the informal trade problem –
New technology and booming online transactions pose a challenge for Cus- toms to obtain information on this trade and proper evidence for prosecut- ing fraudulent activities. Information exchange between Customs adminis- trations serves as an effective tool for checking evidence. A notable approach is to formalise informal traders, which includes giving them a single taxpayer to a more streamlined revenue system, agencies are also beneficial features for number, introducing simplified tax pro- better resource allocation and vigorous improving revenue management. visions and conducting educational cam- Customs-business partnerships. paigns and tax popularisation exercises Reduced corruption can lead to increased among informal traders. Revenue collection should be fair, effec- revenue – tive and efficient – In revenue management, corruption Consideration should be given to renovat- does not cause inefficiency, inefficiency ing revenue systems such as automated causes corruption. In practice Customs collection and remittance processes, should simplify Customs procedures, use electronic fund transfer mechanisms, and IT and risk management to reduce officer waivers of financial guarantee for compli- discretion, subscribe to the principles of ant traders. Consistency and predictabil- the WCO revised Arusha Declaration on More information ity in the operation of Customs and tax integrity, conduct regular auditing, and www.wcoomd.org
Thiss i particularly true when identifying ation with other stakeholders, has under- For the WCO, this Forum constitutes drugs dissolved in alcohol and other liq- taken to develop an inspection-friendly a new structure of cooperation and uids – a time-intensive process involving container. dialogue, and a second Forum will be physical inspections. Customs organized in 2010. The Organization administrations therefore One presentation is also re-examining the structure of have to use a whole range of For the WCO, this addressed the dif- its Committees to determine whether detection technologies. ferent methods of one could serve as a natural forum for Forum constitutes sealing contain- dialogue on and the development of, In other cases technology can ers and the weak- inspection technologies. only detect a few elements a new structure of nesses in container within a specific product design. Whether Speakers’ presentations and a summary range. This is particularly true cooperation and active and passive of the debates a re available on the WCO of fumigants, for which the electronic seals or website. main detection challenges dialogue. a smart device; all were cited, including staff methods have their health and security, difficulty in access- advantages and disadvantages and no ing and sampling the air in the container, single solution can guarantee the integ- needless hold-ups in the flow of goods, rity of a container. An independent labo- the limits of current technology, etc. The ratory is currently working on methods More information New Zealand Customs Service, in cooper- to prevent break-ins and on seal design. www.wcoomd.org
WCO News – No 61 – February 2010 57 EVENT S WCO PICARD Conference 2009 …enhancing knowledge on Customs and trade issues FOR 30 YEARS, OUR PASSION HAS BEEN YOUR SAFETY If Customs officers are operatives on the ground often working in remote and difficult border areas to discharge a range of responsibilities, they cannot afford to remain remote from the research community. Indeed, governments expect Customs to adapt to the realities of the global economy. Customs managers therefore need reliable research and quality information on which they can base their strategic decision-making and leadership to manage change and guide their organizations. Conference participants gather for a group photo
o respond to the growing need for Beginning in 2006, the WCO and INCU Los Angeles (UCLA) and Customs, so that Tresearch and to deepen Customs have organized annual conferences the private sector could gain experience in administrations’ understanding of the around the world to provide a forum for Customs issues and vice versa. trade environment, the WCO developed Customs and the academic community a partnership with the research commu- to hold discussions on items of topical As educational programmes providing pro- nity, known as the Partnership in Customs interest with a view to meeting the goals fessional qualifications for Customs staff Long before border security became a topic of global interest, Perceptics was making a name for itself in the Academic Research and Development of the PICARD Programme. With this in are being developed around the world, the (PICARD). The programme was launched mind, over 200 academics and Customs WCO took the opportunity to explain its real world of border safety. For 30 years, our imaging and identifi cation solutions have delivered crucial data for in 2006 in partnership with the Interna- representatives from all six regions of the newly developed procedures that must tional Network of Customs Universities WCO met in San Jose (Costa Rica) from be followed by universities that wish to port, border, container and transportation lanes with unmatched integrity, relevance and reliability. Today, Perceptics (INCU) – http://www.incu.org – with the 28 to 30 September 2009 for the fourth attain WCO recognition of their academic aim of encouraging academic research WCO PICARD Conference. programmes. Universities that wish to continues to develop innovative technology designed to keep your borders safe. Perceptics systems are deployed into topics relevant to Customs and have their courses officially recognized as at more than 1,000 border control lanes in North America, Southeast Asia, Eastern Europe, North Africa and the developing global professional standards Hosted by the University of Costa Rica, the meeting PICARD Professional Standards for Customs. Conference addressed the impact of three can now apply to the WCO accordingly. Middle East. Our passion for saving lives ensures that number will continue to grow. significant issues on Customs and interna- tional trade: the economic crisis; regional Many researchers were able to present INCU and the WCO celebrate trade agreements and the proliferation of papers at the conference that generated the signing of an MOU these agreements; and climate change and active discussion; abstracts of most of environmental protection. the original research papers have been Conference organizers pose included in the 6th fedition o the World with keynote speakers Participants also discussed Customs Journal that is published by INCU new possible forms of part- and freely downloadable at the following nership. The University of address: www.worldcustomsjournal.org. Zambia was interested in assistance to universities The PICARD conference also marked a in the form of twinning significant milestone in the partnership programmes concentrating between the WCO and INCU with the on teaching staff, lectures, signing of a Memorandum of Understand- training, and the develop- ing (MOU) between the two partners. ment of curricula (study This MOU formally recognizes INCU as programmes). A private the single point of contact between the sector participant from WCO and those universities and research License Plate Under Vehicle Machine Vision Container Code the US proposed to evalu- institutes that are active in the field of Reader Inspection System Inspection System Reader ate the idea of establish- customs education and research. ing a reciprocity internship programme between the More information University of California, [email protected] Contact [email protected] for more information about our complete line of imaging technology solutions.
58 WCO News – No 61 – February 2010 9737 Cogdill Road, Suite 200N • Knoxville, Tennessee 37932-3350 USA • V: 865 966 9200 F: 865 966 9330 • www.perceptics.com ©2010 Perceptics, Inc. All rights reserved. FOR 30 YEARS, OUR PASSION HAS BEEN YOUR SAFETY
Long before border security became a topic of global interest, Perceptics was making a name for itself in the real world of border safety. For 30 years, our imaging and identifi cation solutions have delivered crucial data for port, border, container and transportation lanes with unmatched integrity, relevance and reliability. Today, Perceptics continues to develop innovative technology designed to keep your borders safe. Perceptics systems are deployed at more than 1,000 border control lanes in North America, Southeast Asia, Eastern Europe, North Africa and the Middle East. Our passion for saving lives ensures that number will continue to grow.
License Plate Under Vehicle Machine Vision Container Code Reader Inspection System Inspection System Reader
Contact [email protected] for more information about our complete line of imaging technology solutions.
WCO News – No 61 – February 2010 59 9737 Cogdill Road, Suite 200N • Knoxville, Tennessee 37932-3350 USA • V: 865 966 9200 F: 865 966 9330 • www.perceptics.com ©2010 Perceptics, Inc. All rights reserved. pub_webbfontaine.pdf 1 15/12/2009 11:45:46
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CM MY TRADEWORLDMANAGER Portal® A complete Customs Software compatible with the WCO Data Model which automates all CY SINGLE WINDOW PORTAL FOR E-TRADE OPERATIONS customs procedures including Transit operations CMY
K Full integration and real-time clearance of electronic trade documents from Government Regulatory Agencies, Revenue Authorities to Economic Operators as part of the backbone of a National Single Window
UNIVERSALRISKMANAGEMENT Provides risk assessment and management MULTI-AGENCY RISK MANAGEMENT PLATFORM capabilities to any electronic document including Port or Airport Manifest, Customs declaration, regulatory certificates Risk engine built on auto-adaptive risk criteria mechanisms and Memory Based Reasoning
GOVERNMENTEXECUTIVEVISION™ On-line charts on revenue trends and cargo dwell time, performance of Customs offices and staff REAL-TIME MANAGEMENT INFORMATION TOOL appraisal, compliance status of brokers and importers SMS or email alerts when sudden drop in revenue collection, high risk consignments or any user defined event, for Customs and Ministry of Finance executives
Business Development Department Webb Fontaine Holding SA Rue de l’Est, 8 - 1207 Geneva, Switzerland +41 22 707 43 43 - [email protected]