WTO Symposium on Practical Experience of Implementing Trade
- Slides: 10
WTO Symposium on Practical Experience of Implementing Trade Facilitation Measures Post-Clearance Audit Case Study July 10, 2012 Judith Han Director, Department of Valuation, DGOC Chinese Taipei
Outline • • Brief overview of PCA Application of IT systems Case study Costs and outcomes of implementing PCA • Continuing improvements • Conclusions
Brief overview of PCA • Implemented from 2002 • Establish PCA framework • Identify targets for auditing; e. g. incorrect classification, valuation, country of origin • Recover evaded duties; impose fine and/or penalty • Place traders acting abnormally on watch list • Refer to competent agencies for further investigation
Application of IT systems • • Tariff operation system Valuation database Customs information system Import/export trade statistics management system • PCA management and operation system • Others
Case Study l. Background—target at high-risk imported goods l. Alert--undervaluation l. Risk Identification-no transaction documents l. Analysis--possible customs fraud l. Procedures--check with bank and foreign attachés l. Key Issues: different wire transfer amount, falsified invoices l. Outcome: US$208, 200 evaded duties & fines to be levied l. Lessons taken: enrich valuation database, enhance scrutiny, instruct importers
Costs of implementing PCA (for fiscal year 2010 - ’ 11) Number of auditors 40 Personnel expenses US$ 2. 610, 900 Training expenses US$ Total cost 2010 – ‘ 11 US$ 2, 621, 900 11, 000
Outcomes from implementing PCA (for fiscal year 2010 – ‘ 11) Audits completed 583 Discrepancies found 454 Estimated value of evaded duties and fines recovered By type of discrepancy found: - Valuation - Tariff classification - Origin - Description of goods and specification - Concealment in imported goods - Others US$ 26 mill. 49. 57% 18. 70% 1. 72% 1. 20% 0. 17% 6. 52%
Continuing Improvements • Integrating related IT systems and valuation database • Strengthening ability to analyse and identify risk
Conclusions Efficiency Effectiveness Cost & Benefit; Trade Facilitation Ensure Compliance Monitor of non-Com. 3 Es Enlightenment Experience Sharing - Domestically - Within WTO
Thank you for your attention !
