Global Network at Borders Borders divide Customs connects

Global Network at Borders - Borders divide, Customs connects The Institute of International and European Affairs Dublin, 2 March 2010 Kunio Mikuriya Secretary General World Customs Organization

WCO in brief n Intergovernmental organization specialized in Customs matters ü Established in Brussels in 1952 ü Mission ü ü ü To enhance the effectiveness & efficiency of Customs administrations To facilitate trade and secure the international supply chain 176 Members ü Collectively process over 98% of global trade 2

WCO and Europe n From a European to a global institution ü ü n Committee for European Economic Cooperation (1947) v Customs Committee - predecessor of the WCO v Economic Committee - predecessor of the OECD 17 European countries, including Ireland, were the original Members EU engagement ü ü ü All 27 Member States Status akin to WCO Members (2007) An outreach platform to connect with non-EU economies 3

Evolution of Customs Protection of domestic industry Protection of citizens Trade facilitation <Competitiveness> Trade supply chain security Environment Customs function Revenue collection of import taxes 4

WCO main activities ü Develop standards for Customs procedures ü Harmonized System (HS) – tariff classification ü Revised Kyoto Convention (RKC) – trade facilitation ü SAFE Framework of Standards – security ü Promote international cooperation ü Share information and best practices ü Capacity Building ü Columbus Programme – diagnostics for reform ü PICARD Programme – cooperation with universities ü Fragile states ü Integrity ü Regional approach – ownership at the regional level 5

Global challenges for Customs üProtectionism üGlobal trading system üSupply chain security and facilitation üHealth, safety and the protection of society v. Environment v. IPR border enforcement v. Transnational organized crime 6

Global challenges (1) Protectionism n Global financial crisis & economic downturn n Reduction in Customs revenue Drop in trade volume v Difficulty of accessing trade finance v Increase in fraudulent activities of traders v n Customs under pressure on revenue collection Rise of protectionist trend Customs environment and role? 7

Global challenges (1) Protectionism § WCO Communiqué to G 20 (London, April 2009) ü Trade facilitation, capacity building, monitoring ü Incorporated in the G 20 Communiqué § From crisis to recovery ü Fiscal stimulus/discipline ü Trade kept open § For fair and efficient revenue collection ü WCO Revenue package ü Trade facilitation ü Customs modernization 8

Global challenges (2) Global trading system n WTO Doha Round Early conclusion desirable Ø Trade Facilitation agenda: biggest economic gains expected Ø Standards available Ø v WCO Revised Kyoto Convention Political support and mobilization of donors Ø Aid for trade Ø n Regional integration Convergence of rules of origin Ø Synergy with global standards Ø Capacity Building, especially for ACP countries Ø 9

Global challenges (3) Supply chain security & facilitation n Risk management approach: WCO SAFE Framework of Standards Ø Ø n Customs-Business Partnership è Less intervention for high-compliance operators è Certified as Authorized Economic Operators (AEO) v Mutual Recognition Customs network arrangement Against US 100% scanning law Intervention for all US bound cargo before departure (to be implemented in 2012) 10

Global challenges (4) Environment n Green Customs Initiative with UNEP Enforce trade provisions of Multilateral Environment Agreements Ø Endangered species, ozone depleting substances, hazardous chemicals, hazardous wastes Ø n Exchange of information – Environet n Joint operations Ø n Hazardous waste (64 countries: Europe-Africa-Asia/Pacific in 2009) Customs and climate change Border enforcement measures Ø Border tax adjustment Ø 11

Global challenges (4) IPR border enforcement n Challenges Ø Awareness Serious criminal behaviour and economic loss v Funding for organized crime v Health hazards caused by users v Enforcement legislation Ø Operational capacity Ø Political/business support Ø n WCO activities Ø Ø Ø Diagnostic missions to identify gaps Joint operations to improve coordination Cooperation with rights holders Sharing of best practices Technical assistance and capacity building 12

Global challenges (4) Transnational organized crime n Transborder crime: challenges & opportunities Source of illicit profit Ø Major seizure point; +70% of national seizures in drugs and counterfeits at the borders Ø n Customs Enforcement Network Communication and database for Customs seizures Ø Joint operations: drugs in Central Asia, money laundering with 84 countries Ø Cooperation with the police Ø n WHO Framework Convention on Control Ø Tobacco Protocol on Illicit Trade in Tobacco Products 13

Customs in the 21 st Century n A New strategic direction for Customs Ø 10 building blocks For better international cooperation è Globally Networked Customs v For better coordination at borders è Coordinated Border Management v For better business compliance and mutual benefit è Customs-Business Partnership and more … v n A relevant, visionary and indispensable Customs for a better world 14

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