Overview and Structure of World Bank Customs Projects

Customs-related projects 1981-2002: All projects

Total project costs

Percent

Total number of projects

122

Customs- specific costs ($ million)

1,517 10,308 15%

Types of operations

• Part of structural adjustment loans

• Specific investment loan

• Customs-specific TA project

Customs-related cost from less than 1 million up to 140 million $

Customs investment and TA projects

Total number of customs-related projects

36

Total customs-specific cost to WB ($ million) - approved

211

Total customs-specific cost to WB ($ million) - disbursed

63

Major TA operations

Completed• Philippines, AlbaniaOngoing• Turkey, Colombia, Tanzania, Guatemala,

TTFSE: Bulgaria, Romania, FYRM, Albania, Bosnia, Croatia

Upcoming• Russia, Pakistan (?)

Performance of customs-related projects

FY 1981-2002 FY 1996-2002

No. of projects 83 24

Outcome satisfactory 82% 83%

Sustainability likely 66% 71%

Substantial institutional development impact

39% 29%

Bank performance satisfactory

46% 83%

Borrower performance satisfactory

46% 88%

Key Project Components

• Customs control and clearance• Trade facilitation• Organizational structure and management• HRM and training• Improving the integrity of the customs service• IT• Legal and appeals

Design of new performance management criteria

• Limited role of collection targets• Trade facilitation benchmarks• Efficiency/collection costs

TTFSE: Monthly maximum examinations(% on September 30)

2000 2001 2002

Bulgaria 12 10 8

Croatia 50 35 25

Romania 85 50 45

Key challenges: Risk analysis

• Reduction in the number of physical inspections

• Reduce discretion of customs inspectors

• Improve post-clearance audit capacity

Addressing Integrity Issues

• Severe corruption problem in customs administrations

• Corruption risk maps

• Design of an anti-corruption strategy

• Strengthening the internal audit function

Improving private-public interactions

• Improvement of service quality

• Develop consultative relationships with traders

• Interactive websites

• Regular business surveys as progress monitoring tools

Partnerships

• IMF

• UNCTAD

• EU Phare/Tacis

• US