WCO Standards and Strategies q Coordinated Border Management

WCO Standards and Strategies q. Coordinated Border Management q. Single Window q. Capacity Building q. Globally Networked Customs UN/ECE & Georgia Ministry of Finance Regional Conference on Trade Facilitation Tbilisi, Georgia June 23 -24 2009 Gareth Lewis World Customs Organization (WCO) 1

The World Customs Organization (WCO) is the only intergovernmental organization with competence in Customs matters. 2

Mission Statement “To enhance the effectiveness and efficiency of Customs Administrations” Application of trade regulations Protection of society Collection of fiscal revenue Economic and social well-being of nations.

Evolution of Customs Revenue Collection of import taxes (duties & excise) (domestic industry) Protection of Society <health, safety> (drug trafficking, firearms, environment etc. ) Economic Development <trade, investment> (trade facilitation) Security <terrorism> (shifting focus to entire supply chain) Framework of Standards/C 21 Customs function Protection of Economic Interests 4

Current Customs Environment q q Global financial crisis Global trade already affected q Access to trade finance q Drop in trade volume Customs environment and role? q Customs will be affected q Pressure on revenue collection q Diminishing investment on border infrastructure q Rise of protectionist trend 5

Possibilities for more?

C 21: A New Strategic Direction Globally network ed Integrity l Coordinate d border mgt Approved as the future Customs roadmap Intelligen ce From vision, aspiration to driven Custom implementation Risk-Mgt s in the l 10 building blocks for C 21 21 st Customs Century l Priority BBs: Globally -Trade partners Networked Customs and hip Coordinated Border Management l Capacity Building Professi onal Service Culture Enabling powers Modern methods l. Enabling Future role of WCO: Standard setting; capacity building; monitor implementation; 7 funding; research technolo gy

Customs in the 21 st Century q Globally Networked Customs Ø 1 st building block of C 21 Ø provides the basis of the e-customs strategy Ø RKC Chapters 3, 6 Ø SAFE Framework (1 st Pillar) Ø Data/message standards, UCR Ø Focus on exports Ø Mutual Recognition/MAA (includes AEO) Ø Strongly related to JCC concept 8

Customs in the 21 st Century q Coordinated Border Management Ø 2 nd building block of C 21 Ø based on collaboration/cooperation Ø RKC Chapter 3, 7 + risk management Ø SAFE (security of supply chain) Ø Data/message standards, UCR Ø Mutual Recognition (includes AEO concept) Ø International Trade Single Window 9

C 21 – 10 Building Blocks l BB 3 – Intelligence-driven Risk Management Ø Ø l Scarce resources need to be targeted at the higher end of continuum Involves risk management at the operational and management levels BB 4 – Customs-Business Partnership Ø Ø Understand each other & produce mutually beneficial outcomes Agreements between customs and trusted economic operators (AEO) 10

C 21 – 10 Building Blocks l BB 5 – Implementation of modern working methods, procedures and techniques l BB 6 – Enabling technologies and tools l BB 7 – Enabling (legal) powers l BB 8 – Professional, knowledge-based service culture l BB 9 – Capacity Building (More later) l BB 10 – Integrity 11

WCO priorities – Capacity Building l Implementation of WCO standards l Collaboration with donors & other stakeholders l Regional approach l Areas of capacity building Ø Trade security & facilitation Ø Revenue enhancement Ø Counterfeiting & piracy Ø Management issues, including integrity 12

WCO Priorities – Research l Understand & manage the challenges Ø Expanded role Ø Coordination with other ministries l Emerging issues Ø Environment protection – international customs day Ø Regional trade agreements etc. l Customs in the 21 st Century l Research unit within the Secretariat 13

Columbus: 21 st Century WCO Capacity Building Ø Ø Ø Support worldwide adoption and implementation of the WCO SAFE Framework of Standards to Secure and Facilitate Global Trade Promote the WCO International Standards, as the Revised Kyoto Convention Support implementation of Trade Facilitation initiatives under negotiation at World Trade Organization Building sustainable Capacity in Customs Administrations Co-operating with international Capacity Building partners 14

WCO Key Instruments Ø Revised Kyoto Convention Ø ‘SAFE’ Framework of standards Ø WCO Customs Data Model & Ø UCR Ø Istanbul/ ATA Convention Ø Time Release Study Ø Harmonised System Ø Integrated Supply Chain Management Guidelines 15

WCO SAFE Framework 16

SAFE Framework Principles q q Standards to Secure and Facilitate Global Trade Pillar 1, Customs-to-Customs networking Pillar 2, Customs-to-Business partnership (AEO) (Proposed) Pillar 3, Customs-to-OGA partnership Ø Relationship to single window q Columbus Program (+ diagnostic studies) Ø Implications of 100% scanning in the US q q Seal Integrity Program Integrated Supply Chain Management Guidelines Ø Advance cargo information Ø Legally enabling environment Ø Use of UCR

Revised Kyoto Convention (A Blueprint for Modern Customs Administration) 18

THE REVISED CONVENTION CHAPTERS OF THE GENERAL ANNEX 1 - General principles 2 - Definitions 3 - Clearance and other Customs formalities 4 - Duties and taxes 5 - Security 6 - Customs control 7 - Application of information technology 8 - Relationship between the Customs and third parties 9 - Information, decisions and rulings supplied by the Customs 10 - Appeals in Customs matters 19

WCO Data Model (Version 3. 0 and Single Window) 20

WCO Data Model Building Blocks WCO Data Model – Version 3. 0 Message implementation/XML guidelines Data models (info & BP) Harmonized maximum data sets Code standards, Data Model Principles 21

Single Window to Government q q The Single Window environment is a complex technical issue, but it cannot work without the political, administrative, policy and legal issues being examined first. Be sure to get the policy, legal and administrative frameworks analysed and sorted before looking at technical options. 22

The SW “Wheel” Regulation Reform Trade Facilitation al on n atio ern or ge n Int llab an tio Co xchorma E Inf of Int e P rco orts nn ect iv Ce SDS ge nti ty Ma na Enablers Standard Processes Across Agencies, Streamlined Reporting Ag Ch enc an y a ge nd M In an du ag st em ry en t s ces Ac t y, c y uri riva Se c & P me nt Data Hub Architecture Ide s, it es, erm c en s, P c i L ate ific rt ity Consolidated Fee Structure Review w vie e e R nt tiv dme a l en gis Le Am & Integrated Risk Assessment G 2 GE I n f xc h a orm ng ati e of on International Supply Chain Security 23

Gareth Lewis +32 2209 9355 gareth. lewis@wcoomd. org For more information: www. wcoomd. org « Copyright © 2009 World Customs Organization. All rights reserved. Requests and inquiries concerning translation, reproduction and adaptation rights should be addressed to copyright@wcoomd. org » . 24