Want to contribute to research on Customs, borders, and trade?

Interested in the latest analysis from leading academics and policymakers?

Join us at the Conference website: www.etouches.com/picard2015 WCO’S 10th ANNUAL PICARD CONFERENCE in collaboration with Azerbaijan Customs

and make your voice heard

8-10 September 2015 Baku, Azerbaijan See you there!

Register at: http://tinyurl.com/picard2015

Photo courtesy of Serbian Customs / Design by Myriam Boyer SubscribeWCOWCO online newsnews www.wcoomd.org

 a point of reference for WCO activities, instruments, and standards

 a source of information on Customs and international trade

 a medium for exchanging views and expressing opinions

 a place where researchers can publish summaries of their work

Available free of charge in English and French

WORLD CUSTOMS ORGANIZATION TABLE OF CONTENTS

Welcome message from the WCO 4 Welcome message from the Azerbaijani State Customs Committee 5 Keynote speakers 6 Conference agenda 8 PICARD 2015 Scientific Board 11

3 WELCOME MESSAGE FROM THE WCO

are numerous as facts and hypotheses are enduring question is sought by many, and examined from different perspectives. It this Conference will generate answers. is only through the adoption of such an It is incumbent upon us all to seek an- interdisciplinary, inclusive approach that swers, and research can provide respons- more accurate and impactful knowledge es to our questions. Knowledge is power, can be generated. and Customs must use it wisely!

In the 16th century Sir Francis Bacon said “Knowledge is power”, and in our evolv- ing world knowledge based on objective, evidence-based research is a critical re- source. Public officials need quality in- formation and reliable analysis on which they can base their decision-making to manage change and guide their organiza- Dr. Kunio Mikuriya tions. Knowledge gained from research Secretary General is also the basis for capacity building as it World Customs Organization It gives me great pleasure to welcome inspires Customs managers with empir- you to the 10th anniversary of the WCO ical data which can be transformed into PICARD Conference. I would like to policy. begin by expressing my gratitude to the State Customs Committee of Azerbaijan The WCO conducts, produces, and com- for hosting the PICARD Conference this municates research with Customs admin- year. I would also like to thank the Korea istrations, policymakers, and the media. Customs Service for generously funding The WCO operates as a knowledge net- the participation of many speakers. And work, sharing its findings internationally. most importantly, I would like to thank The WCO considers that knowledge the authors who had the courage to put sharing has a multiplier effect in guiding pen to paper. policymaking.

The annual WCO PICARD Conference As part of my efforts to create a WCO has gone from strength to strength and knowledge-based center of excellence, 2015 is emblematic of this. The WCO I established the WCO Research Unit received over 65 submissions for consid- in 2009. The outcome of our research eration this year, which is a new PICARD is accessible on the WCO website and Conference record. Over the course of published in well-renowned journals such the next few days, you will hear from the as the World Customs Journal, the Global authors of about 20 of these papers. Trade and Customs Journal, and the Journal of Borderland Studies. In addition, the first This year, the PICARD Conference ex- WCO research book, Reform By Numbers, panded its research network which led was published in partnership with the to the successful inclusion of new aca- World Bank in 2013. demic partners, including anthropologists, economists, and political scientists. In my A key objective for the WCO during this view, interdisciplinary, robust interaction 10th PICARD Conference is to ask our- between Customs officials and academics selves and our research partners: where is vital. The benefits of such interaction do we go from here? The answer to this

4 WELCOME MESSAGE FROM THE AZERBAIJANI STATE CUSTOMS COMMITTEE

The Azerbaijan Customs Service was Customs Academy, hosting of the Region- established on 30 January 1992 after al Office for Capacity Building for the Azerbaijan regained its independence fol- Europe Region as well as the first INCU lowing the collapse of the USSR. Despite office in the Republic of Azerbaijan are being established in 1992, its sustainable bright examples of our achievements in development phases started with the re- awareness raising of the importance of turn of the National Leader Heydar Ali- Customs education for the past years. yev to power. Over the past years Azer- baijan Customs Service has gone through Taking into account the challenges lying many challenges and achievements. It is ahead for Customs administrations, it driven by its ultimate goal to be an ef- goes without saying how important the fective, efficient, transparent and modern timely sharing of information and best Customs service that contributes to the practices among the global research com- economic growth of the country and the munity is today, as it has an important social welfare of its citizens. The adoption role in informing decision-makers about of a new Customs Code based on the the research findings that promise to principles of the Revised Kyoto Conven- lead to effective solutions. In this context, The tremendous growth of internation- tion, introduction of new concepts and through academic research and debate, al trade over the past years has brought practices such as “Single Window”, re- the PICARD Conference strives to help about new challenges for Customs admin- construction of all border crossing points decision-makers in Customs to formulate istrations worldwide. Ever growing trade in line with international standards and strategies and policies. volumes, new trading patterns, increased requirements, development of the Single threats and the introduction of new prac- Automated Management System, estab- It is a privilege for the State Customs tices, combined with the advancement of lishment of the Customs Academy and so Committee of the Republic of Azerbaijan information and communication technol- on, is the result of our commitment to to host the 10th WCO PICARD annual ogies, necessitate Customs moderniza- align Customs procedures with interna- Conference. I would like to convey my tion. The modern Customs administra- tionally accepted best practices. All this, best wishes to all the participants. tion needs to be more efficient, effective, no doubt, would have not been possible, service-oriented and transparent in or- had there not been a strong and continu- der to be able to meet the requirements ous political will. of trade and the public in general. Academic research provides a broad vi- Consequently, as trade patterns change, sion for Customs in the 21st century, the support traders need from Cus- which is to support international devel- toms become more and more multifac- opment, security and peace by securing eted. From this perspective, innovation and facilitating international trade. Ful- fostered by knowledge remains the key ly realizing the importance of academic Professor Aydin Aliyev driver for a successful Customs adminis- research and education and its benefits, Chairman tration. The application of innovation is a the Azerbaijan Customs Service has tak- State Customs Committee of challenge for Customs administrations. It en steps towards the promotion of Cus- the Republic of Azerbaijan stems from the simple desire to provide toms education. The Azerbaijan Customs Honorary lawyer of the a better service, and to make beneficial Service has consistently paid significant Republic of Azerbaijan changes through creative thinking. Inno- attention to capacity building. As stated Honorary fellow of the vation requires a collaborative working by the National Leader Heydar Aliyev: International Network of environment, creative endeavors and “The Customs officer should be knowl- Customs Universities knowledge-based management. Innova- edgeable, masters of their trade, morally tion alone will not suffice, it is necessary pure, loyal to their profession, the native to innovate efficiently and with a certain land, the country, and wish to strengthen level of quality. the economy of independent Azerbaijan”. Thus, the establishment of the Azerbaijan

5 KEYNOTE SPEAKERS

Finn Kydland Finn Kydland is the Jeffrey Henley Professor of Economics at the University of California, Santa Barbara, and the Richard P. Simmons Professor of Economics (part-time) at Carnegie Mellon University Qatar. Professor Kydland received his B.A. from the Norwegian School of Econom- ics (abbreviated NHH in Norwegian), and his Ph.D. from CMU. After previous appointments at NHH, CMU, and the University of Texas at Austin, he joined the UCSB faculty in 2004, where he is also the director of the Laboratory for Aggregate Economics and Finance. He is a Research Associate for the Federal Reserve Bank of Dallas.

Professor Kydland was awarded the Nobel Prize in Economics in 2004 jointly with Professor Ed- ward Prescott of Arizona State University. Professors Kydland and Prescott received the Prize for their research on business cycles and macroeconomic policy, specifically, the driving forces behind business cycles and the time inconsistency of economic policy. More recently, Professor Kydland has conducted research on the role of monetary policy, domestically as well as interna- tionally, and on the implications of variable- vs fixed-rate mortgages for the aggregate economy.

Eric Maskin

Eric Maskin is Adams University Professor at Harvard. He received the 2007 Nobel Memorial Prize in Economics (with L. Hurwicz and R. Myerson) for laying the foundations of mechanism design theory. He also has made contributions to game theory, contract theory, social choice theory, political economy, and other areas of economics.

He received his A.B. and Ph.D. from Harvard and was a postdoctoral fellow at Jesus College, Cambridge University. He was a faculty member at MIT from 1977-1984, Harvard from 1985- 2000, and the Institute for Advanced Study from 2000-2011. He rejoined the Harvard faculty in 2012.

He is a member of the National Academy of Sciences and a fellow of the Econometric Society, the American Academy of Arts and Sciences, the British Academy, the European Economic Asso- ciation, the Royal Spanish Academy of Economics and Finance, and the Society for the Advance- ment of Economic Theory. He is an honorary fellow of St John’s College, Cambridge and Jesus College, Cambridge. He is an honorary professor of six universities and the recipient of ten honorary doctorates. Among other prizes, he has received the Kempe Award in environmental economics (with P. Dasgupta), the EFR-Business Week Award, the Grande Médaille from both the cities of Marseille and Toulouse, the Harvard Centennial Medal, the Cristóbal Gabarrón Foundation International Award in Economics, the Louise Blouin Founda- tion Award, the Jean-Jacques Laffont Prize, and the James Joyce Award.

He has served as editor of the Quarterly Journal of Economics, Economics Letters, and the Economic Theory Monograph Series (World Scientific Publishing) and as associate or advisory editor of several other journals. He is on advisory boards for the J.S. Guggenheim Foundation, the Higher School of Economics (Moscow), the Center for Rationality (Hebrew University), the Santa Fe Institute, the Solvay School of Economics (Free University of Brussels), the Toulouse School of Economics, and the World Bank. He is a past president of the Econometric Society and the Game Theory Society. He is the director of the Jerusalem Summer School in Economic Theory.

6 Mick Moore Professor Mick Moore is a political economist. He has done extensive field research in Asia and Africa, especially Sri Lanka, Taiwan and India. He has taught at the Massachusetts Institute of Technology.

His broad research interests are in the domestic and international dimensions of good and bad governance in poor countries. He focuses specifically on taxation and governance, and is the founding Chief Executive Officer of the International Centre for Tax and Development.

Edward C. Prescott

Edward C. Prescott is Professor of Economics at Arizona State University and is the W. P. Carey Chair in Economics in the W. P. Carey School of Business. He has previously held faculty posi- tions at the University of Pennsylvania, Carnegie Mellon University, the University of Minnesota, and The University of Chicago. He is a Senior Monetary Analyst at the Minneapolis Federal Reserve Bank.

He received his B.A. in mathematics from Swarthmore College in 1962, his M.S. in Operations Research from Case Reserve University in 1963, and his Ph.D. in economics from Carnegie Mellon University in 1967.

He is an aggregate economist theorist who develops and applies dynamic economic theory to problems in financial economics, economic fluctuations, public finance, growth and development, and international economics areas.

He and Finn Kydland were jointly awarded the 2004 Nobel Prize in Economics “for their contri- butions to dynamic macroeconomics: the time inconsistency of economic policy and the driving forces behind business cycles.”

7 CONFERENCE AGENDA

Monday, 7 September 09:30-11:30 Wreath-laying Ceremony at the Memorial of National Leader Heydar Aliyev in the Alley of Honorary Burial and visit to the Martyrs Alley

Afternoon Inauguration Ceremony of the WCO Regional Dog Training Centre Bilateral meetings

19:00-21:00 Cocktail hosted by the WCO Secretary General

Tuesday, 8 September

08:15 Transfer from Qafqaz Hotel to Gulustan Palace

09:00-09:45 Official Opening and Welcoming Remarks Aydin Aliyev, Chairman, Azerbaijan State Customs Committee Abid Sharifov, Deputy Prime Minister, Republic of Azerbaijan Kunio Mikuriya, Secretary General, World Customs Organization Donhyun Lee, Vice Commissioner, Korea Customs Service

Introduced by Robert Ireland, Head of WCO Research Unit, PICARD Conference Chairperson

09:45-10:30 Keynote Address Eric Maskin, Nobel laureate, Professor, Harvard University (United States) Why have global markets failed to reduce inequality in developing countries?

10:30-10:45 Signing of MOU

10:45-11:15 Group Photo and Coffee Break

11:15-12:00 Keynote Address Mick Moore, CEO, International Centre for Tax and Development (United Kingdom) International cooperation: comparing trade and tax

12:00-13:30 Lunch

13:30-15:15 Session 1 - Drivers of Incentivization of Customs officers

Panelist 1: Siv Rebekka Runhovde, Norwegian Police University College Policy, discretion and accidental seizures in policing the illegal wildlife trade at the Norwegian border

Panelist 2: Minette Libom, Director General, Cameroon Customs Smuggling, an old plague constantly evolving

Panelist 3: M.R. Rajmohan, Sri Lanka Customs Bounty hunter reward system – a necessary management evil?

Discussant: Robert Ireland, WCO Research Unit

15:15-15:45 Coffee Break

15:45-17:15 Session 2 - Global Value Chains (1/2)

Panelist 1: Gaëlle Balineau, Agence Française de Développement (France) Evolution of the global value chains: some implications for Customs

Panelist 2: Antoine Vion, Aix-Marseille University (France) The impact of responsible consumption standards on global value chains and international transactions

Discussant: Thomas Cantens, WCO Research Unit

17:30 Transfer from Gulustan Palace to Qafqaz Hotel

19:30-21:30 Dinner accompanied with special musical programme, Azerbaijan State Philharmonic Hall (hosted by Azerbaijan State Customs Committee)

*For the parallel sessions, Panels 3A, 4A, 5A and 6A will include interpretation between Russian and English. All other panels will include interpretation between English, French, Russian, and Spanish.

8 Wednesday, 9 September 08:15 Transfer from Qafqaz Hotel to Gulustan Palace

09:00-10:45 Session 3 – Parallel Sessions Panel A – Innovation in Customs* Panel B – Global Value Chains (2/2)

Panelist 1: Igbal Babayev, Azerbaijan State Customs Committee Panelist 1: Nicholas Humphries, Australian Customs Management of innovative Customs development projects: experience of Global value chains, border management and Australian trade Azerbaijan Customs

Panelist 2: Valeriya Ermakova, Institute of legislation and compara- Panelist 2: Dylan Geraets, Leuven Centre for Global Governance tive law (Russia) Studies (Belgium) Information cooperation between the private sector and Customs: a case study Reconciling rules of origin and global value chains: the case for reform of the economic integration in CIS [Dylan Geraets, Colleen Carroll, and Arnoud R. Willems]

Panelist 3: Min Wang, Shanghai Customs College (China) Discussant: David Widdowson, Professor, Charles Sturt University International harmonization in the rules of cross-border electronic commerce (Australia); President, International Network of Customs Universities; Editor-in-Chief, World Customs Journal Discussant: Taleh Ziyadov, Director General, Baku International Sea Trade Port

10:45-11:15 Coffee Break

11:15-12:00 Keynote Address Edward C. Prescott, Nobel laureate, Professor, Arizona State University (United States) Current state of world economic development

12:00-13:30 Lunch

13:30-15:15 Session 4 – Parallel Sessions Panel A – Revenue and Tariff Matters* Panel B – Fraud and Data (1/2)

Panelist 1: Theo Colesky, South African Revenue Service Panelist 1: Cristina Mitaritonna, CEPII (France) The adjudication of Customs’s tariff classification disputes in South Africa: Determinants and pervasiveness of the evasion of Customs duties [Sébastien lessons from Australia and Canada [Riël Franzsen, University of Pretoria Jean and Cristina Mitaritonna] (South Africa) and Theo Colesky]

Panelist 2: Juha Hintsa, Founder and Executive Director, Cross-bor- Panelist 2: Cyril Chalendard, CERDI (France) der Research Association (Switzerland); Associate Editor of Journal of Use of internal information, external information acquisition and Customs Transportation Security underreporting A framework for a database to share information on tax revenue streams and tax collection costs among customs administrations globally Panel 3: Lofti Ayadi, Researcher (Tunisia) The risk of fraud in Customs warehouses in Tunisia [Lofti Ayadi, Golvine de Panelist 3: Robert Luessi, Swiss Customs Rochambeau, Gaël Raballand, World Bank] The compensation of Customs duty – new tasks for Customs administrations Discussant: Thomas Cantens, WCO Research Unit Discussant: Hans-Michael Wolffgang, Professor, University of Münster (Germany)

15:15-15:45 Coffee Break

15:45-16:05 International Network of Customs Universities Mikhail Kashubsky, Head of Secretariat, and Lala Imanova, Regional Office Manager, International Network of Customs Universities INCU - 10 Years of Promoting the Academic Standing of the Customs Profession

16:05-16:25 World Customs Journal David Widdowson, Professor, Charles Sturt University; President, International Network of Customs Universities; Editor-in-Chief, World Customs Journal

16:25-16:45 Global Trade and Customs Journal John Brew, Partner at Crowell & Moring (United States); Member of the Editorial Board, Global Trade and Customs Journal

16:45-17:05 Capacity Building in Africa and Day 2 Closing Remarks Christine Msemburi, Executive Director, WCO East and Southern Africa, Regional Office for Capacity Building (Kenya)

17:15 Transfer from Gulustan Palace to Qafqaz Hotel

20:00-22:00 Gala Dinner hosted by Azerbaijan State Customs Committee (Mangal restaurant)

9 CONFERENCE AGENDA Thursday, 10 September 08:15 Transfer from Qafqaz Hotel to Gulustan Palace

09:00-10:45 Session 5 – Parallel Sessions Panel A – Fraud and Data (2/2)* Panel B – Protection of Cultural Property

Panelist 1: Rong Hu, Shanghai Customs College (China) Panelist 1: Tomasz Nowak, Polish Customs and New approach to anti-smuggling by China Customs: integrated supply chain – Cezary Sowiński, DHL Express a step towards large scale data pipeline implementation [Rong Hu; Yao-Hua Protection of cultural property as part of the security policy of the European Tan, Delft University (The Netherlands); and Frank Heijmann, Dutch Union Customs]

Panelist 2: Shintaro Hamanaka, Asian Development Bank Panelist 2: Esther Portela Vázquez, Researcher (Spain) World ranking of trade statistics accuracy: proxy to the quality of trade and Combating the illicit trade of cultural property and archaeological/ethnological customs governance and persistence of smuggling [Shintaro Hamanaka, Aiken objects in the United States. US Immigration and Customs Enforcement (ICE) Tafgar, and Ronaldo Ico] seizures under analysis

Discussant: Juha Hintsa, Founder and Executive Director, Cross-bor- Discussant: Mariya Polner, WCO Enforcement Sub-Directorate der Research Association (Switzerland); Associate Editor of Journal of Transportation Security

10:45-11:15 Coffee Break

11:15-12:00 Keynote Address Finn Kydland, Nobel laureate, Professor, University of California, Santa Barbara (United States) The implications of nations’ policy environments for innovative activity and capital formation

12:00-13:30 Lunch

13:30-15:15 Session 6 – Parallel Sessions Panel A – Customs Risk Management* Panel B – Informal Trade

Panelist 1: Yulia Mazanik, State Customs Committee of the Republic Panelist 1: Sami Bensassi, Birmingham Business School of Belarus (United Kingdom) Methodology of automatic selection of the valuation basis for calculation of The normality of informality [Sami Bensassi; Anne Brockmeyer, World Bank; Customs duties and taxes during the valuation controls Mathieu Pellerin, CISCA (France); and Gaël Raballand, World Bank]

Panelist 2: Oleg Komarov, State Fiscal Service of Ukraine Panelist 2: Vanessa van den Boogard, University of Toronto (Can- Risk management system as a modern enforcement mechanism ada) Profit, networks, power and control: the multiple facets of informal cross-border Discussant: David Widdowson, Professor, Charles Sturt Universi- trade practices in Sierra Leone [Samuel Jibao, Center for Research and ty; President, International Network of Customs Universities; Edi- Capacity Building (Sierra Leone); Wilson Prichard, University of Toronto; tor-in-Chief, World Customs Journal and Vanessa van den Boogard]

Panelist 3: Cyril Roussel, French Institute of the Middle East (France) Iraqi Kurdistan, an area of redeployment of commercial channels between Turkey and Iran

Discussant: Cedric Parizot, Researcher, National Center for Scientific Research, Research and Studies Institute of the Arab and Muslim World, University of Aix-Marseille (France); AntiAtlas of Borders (France)

15:15-16:00 Concluding Session Aydin Aliyev, Chairman, Azerbaijan State Customs Committee Robert Ireland, Head, WCO Research Unit

16:00-16:15 Transfer from Gulustan Palace to Qafqaz Hotel

16:15-17:30 Youth Forum Elena Bogdanova, ITMO (St. Petersburg, Russia) Gaëlle Balineau, Agence Française de Développement (France) Robert Ireland, WCO Research Unit Mariya Polner, WCO Enforcement Sub-Directorate

17:45 Transfer from Gulustan Palace to Qafqaz Hotel

19:30-22:30 Dinner accompanied with special musical programme, Azerbaijan State Theatre of Musical Comedy (hosted by Azerbaijan State Customs Committee) Friday, 11 September 10:30-13:00 Tour of Baku

10 PICARD 2015 SCIENTIFIC BOARD

Chairperson Robert Ireland (Head, WCO Research Unit)

Members Igbal Babayev Azerbaijan State Customs Committee

Emmanuel Brunet-Jailly Professor, University of Victoria (Canada); Editor, Journal of Borderland Studies

Thomas Cantens Technical Officer, WCO Research Unit; Researcher at the Centre Norbert Elias (Ecole des Hautes Etudes en Sciences Sociales)

Chang-Ryung Han Technical Officer, WCO Research Unit

Juha Hintsa Founder and Executive Director, Cross-border Research Association (Switzerland); Associate Editor of Journal of Transportation Security

Rachel McGauran Research Analyst, WCO Research Unit

Mick Moore Professorial Fellow, Institute of Development Studies, University of Sussex and Chief Executive Officer of the International Centre for Tax and Development

Christine Msemburi Executive Director, WCO Regional Office for Capacity Building, East and Southern Africa

Cedric Parizot Researcher, National Center for Scientific Research, Research and Studies Institute of the Arab and Muslim World, University of Aix-Marseille (France); AntiAtlas of Borders

Mariya Polner Policy Advisor, WCO Enforcement Sub-Directorate

Gaël Raballand Senior Public Sector and Governance Specialist, World Bank

David Widdowson Professor, Charles Sturt University; President, International Network of Customs Universities; Editor-in-Chief, World Customs Journal

11 Publisher World Customs Organization

Rue du Marché 30 B-1210 Brussels Belgium

Tel. +32 (0) 2 209 92 11 Fax: +32 (0) 2 209 92 92 [email protected] www.wcoomd.org

Copyright © 2015 World Customs Organization All rights reserved. Requests and inquiries concerning translation, reproduction and adaptation rights should be addressed to [email protected]

Cover photo courtesy of Serbian Customs/Design by Myriam Boyer Back cover photo by Consulbk Brochure design by Tuomas Glad