AEO .. Global hosting and pioneering › En › MediaCommunity › Publishes... · (direct trade,...

Facilitating trade and increasing national exports by reducing costs of cargo enterprises and agencies, are key strategic objectives of economic diversifica-tion policy adopted by our Emirates prudent leadership to get prepared to post oil stage. In the course of last years, Emirates brought success to accomplish outstand-ing achievements in providing commercial incentives and facilities to nation-al and foreign capitals and investments, unto Emirates became global trade hub. Emirates assumes prime ranking in many world competition indices the most prominent of which the ease of doing business and entrepreneurship in-dex, burden of customs procedures, effectiveness of customs authorities, ease of paying taxes and other indices. Customs sector in state plays pivotal and significant role in facilitating trade and reinforcing security system through dozens of initiatives aiming at sim-plifying procedures, reducing customs clearance time, reducing costs of cargo agencies, exporters and importers as well as developing risk management by employing state-of-the-art inspection and control instruments and authorizing latest new technologies as artificial intelligence and Blockchain.In an effort to achieve this goal; facilitating trade, for years Emirates initi-ated implementing Authorized Economic Operator program which represents qualitative shift in customs work reinforcing compliance culture among cargo enterprises and agencies through rewarding the enterprises and agencies com-plying with laws, legislations and procedures by granting them procedural incentives saving time and money.Emirates attained pioneer in this domain as it took precedence regionally in implementing this program under the umbrella of the Federal Customs Au-thority as federal program integrating the state in terms of trade and customs with all world countries, and enabling member enterprises entertain ease of their goods penetration to world markets. Day after day, the map of state world partners extends in relation to the Au-thorized Economic Operator program thanks to Federal Customs Authority’s success in concluding partnership and cooperation agreements to implement the program allowing exchange of incentives and information with the most significant trade partners as South Korea, Kingdom of Saudi Arabic and Chi-na in addition to current negotiations with considerable number of countries to conclude program implementation program with it.Upcoming March, Emirates has a appointment with global pioneering in the area of Authorized Economic Operator program where the state, represented by Dubai Customs and in cooperation with the Authority and WCO, hosts the fifth world conference on the Authorized Economic Operator program, the first ever regionally, which coincides with the world event “EXPO Dubai 2020” and the “Extraordinary World Government Summit 2020”. By hosting this world conference, Emirates backs its global customs pioneer-ing and affirms, again, that its world platform to launch trade and customs initiatives and that it is fertile arena to investigate and deliberate offered mat-ters on world customs development agenda.

AEO .. Global hosting and pioneering

Ali Saeed Alneyadi The published articles express the opinion of the writer and do not necessarily reflect the opinion of

the Federal Customs Authority

General Supervisor: H.E Ali Saeed Matar Alneyadi

Commissioner of Customs - Chairman of FCA

Advisory body:

H.H Sheikh Mohamed Bin Abdullah Al NoaimiChairman of Ports & Customs Department - Ajman

H.H Khalid Bin Rashid Al Mu’allaChairman of ports, customs and Free Zone Corporation

- Umm Al Quwain

H.E Rashed Lahej Al MansooriDirector General of General Administration

Customs – Abu Dhabi

H.E Mohammed Meer Abdul Rahman Al SarrahDirector of the Department of Seaports and Customs-

Sharjah

H.E Dr. Mohammed Abdullah Al MehreziDirector General of Customs Department - RAK

H.E Rashid Mohammed HammadDirector General of Customs - Fujairah

Editor -in-chief: Mohamed Juma Buosaiba

Deputy Editor-in-chief: Ahmad Abdulla Bin Lahej

Executive Editor-in-chief: Hassan El Kamhawi

Legal Consultant: D. Ahmed Mohamed Albakr

Financial administration: Mohamed Almarzooqi

Marketing and Communication: Asmaa Alawadhi

Designer: Abu Omar

Correspondence:Abu Dhabi, United Arab Emirates,

P.O.Box 35000 – TEL: +9712-6979700E-mail: [email protected]

A quarterly magazine specializedin customs affairs,

published by the (FCA) UAE

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Manifest

06

The “International Organization”praises Emirates capabilityto employ technology in customs development and events hosting

1290’s Day of Customs Reports

Abdullah Al Khaja:“Dubai Customs” constructs global development model based on smart systems base

16Interview

21

The File

39%Customs contribution to implement drugsseizure indicator

�� Abu Dhabi (Emirates Customs)

The initial statistical data of the Federal Customs Authority indicated that the total non-oil foreign trade of the UAE (direct trade, free zone trade and customs warehouses) amounted to 1.628 Trillion Dhs in 2018. In a press release the Authority stated that the direct non-oil foreign trade accounted for 63% of the total non-oil for-eign trade of UAE in the last year, amounted to Dhs. 1.025 Trillion while the non-oil foreign trade of the free zones in the states amounted to 36% for a total value of Dhs. 592.4 Billion followed by Dhs. 11 billion at the rate of 1% for the customs warehouses. His Excellency Ali Saeed Matar Al Neyadi Customs Com-missioner and Chairman of the Authority, said that the UAE Non-oil Foreign Trade witnessed positive and significant developments in the said year, most important of which is the continuation of growth and stability in UAE Foreign Trade with the rest of the world which enhanced the UAE position as strategic, commercial gate for the states in the region. His Excellency stated that the value of imports suffered a remarkable regress during the year at the rate of 4.2% to reach Dhs. 938 billion compared to Dhs 979 billion in the last year. At the same time the growth continued in the ex-port business at the rate of 1.8% during the year in which the re-export value reached Dhs. 478.4 compared to Dhs. 470.1 Billion last year. This refluxed the national economy ability to achieve a remarkable improvement in the trade balance with the International Economic Groups and Re-gions. His Excellency drew the attention to the UAE Non-oil For-eign Trade which witnessed a huge development with the Arab States in the last year. The share of the Arab States in the UAE total Non-oil Foreign Trade increased in average from 19% in the previous year to 21% during the last year, indicating that the value of trade exchange with such states increased to Dhs. 341.2 billion, and the value of imports amounted to Dhs. 77.3 billion and the exports amounted to Dhs. 93.8 billion while the value of the re-export amounted to Dhs 170.1 billion which means that there is huge surplus

in the trade balance of UAE with the Arab States. His Excellency Chairman of the Authority stated that the UAE national Industry managed to consolidate its position at the International market during the year, especially in the field of gold and aluminum trade. He explained that the value of the UAE export of raw and half finished gold increased to Dhs. 53.4 billion during the year while the ex-port of raw aluminum amounted to Dhs. 18.6 billion. As to the UAE Trade with the GCC states the Authority statistical data indicated that the UAE has achieved a sig-nificant surplus in the trade balance with the GCC States, during the year owing to the increase of the value of ex-ports and re-export by UAE to such states compared to their imports to UAE. His Excellency Ali Saeed Al Neyadi, said that the map of UAE Non-oil foreign trade with the International economic regions remained stable during the last year as used to be, maintaining balanced trade relationship with the trade and strategic partners. In this respect the initial statistics of the Authority indi-cate that Asia and Pacific Ocean region came on the top of the Trade Partners’ List in 2018, acquiring 39.3% of the UAE total Non-oil trade with the countries of the world by a share equal to Dhs. 603.2 billion while Europe has oc-cupied the second place with a share equal to Dhs. 344.4 billion at the rate of 22.4% in general.

Remarkable Growth in Re-export Business and Commercial Exchange with Arab States

Reports

UAE non-oil trade in 2018Trillion dirhams

SMART Borders..World practices maximize customs departments gains and reinforce compliance

2 3Emirates CustomsEmirates Customs July 2019July 2019

Contents

Non-oil trade volume between the two countries in 2018Amounted to 107.4 billion Dirham

UAE and Saudi Arabiaconclude AEO agreement

�� Riyadh (Emirates Customs)

United Arab Emirates and the King-dom of Saudi Arabia executed autho-rized economic operator (AEO) mu-tual recognition agreement mid May 2019 in the Saudi capital, Riyadh, to reinforce customs cooperation, facilitating reciprocal trade move-ment and expediting trade exchange rates in execution the recommenda-tions raised by Khalwat Al Azm endorsed by the Saudi-Emirati Coor-dination Council.H.E. Ali Saeed Matar Al Neyadi, Customs Commissioner and Chair-man of the Federal Customs Author-ity executed the agreement on behalf of Emirates and H.E. Ahmed Bin Abdul Aziz Al Haqbani, Governor

of Saudi General Customs Authority on behalf of the kingdom in presence of H.E. Ahmed Mohamed Al Tunaiji, Deputy Chairman of Emirates dele-gate to the Kingdom of Saudi Arabia, H.E. Abdulla Bin Lahij, Executive Director of Customs Affairs Sector, H.E. Soud Salim Al Aqroubi, Direc-

tor of International Relations Depart-ment and Mr. Ahmed Abdulla Al Khili, Customs Commissioner and Authority Chairman’s office man-ager.On Saudi side, H.E. Sulaiman Al Twejri, Deputy Governor, Abdul Rahman Al Khuzaim, Governor Undersecretary for land ports and Mohamed Al Naeem, Governor Un-dersecretary for Security Affairs in addition to a number of undersecre-taries and directors from Saudi Cus-toms.H.E. the Commissioner; Ali Saeed Al Neyadi said that executing the agreement comes in response to the directives of prudent leadership in both countries to reinforce economic cooperation and promote reciprocal

trade rates as the agreement deems new and significant mission on jour-ney of reinforcing customs and trade relations between the sister countries. “Today, we witness tangible trans-lation of the outcomes of “ Khalwa Al Azm “ between United Arab Emirates and the sister Kingdom of Saudi Arabia, endorsed and adopted by Saudi-Emirati Cooperation Coun-cil, by executing AEO mutual recog-nition agreement in both sister coun-tries”. Said His Excellency. “The agreement is an ideal model of economic cooperation and integra-tion between the countries, which aims at optimum utilization of cur-rent resources to contribute to facili-tating trade movement and customs procedures to attain reinforcement of

both countries economic scheme in addressing global changes”. Added His Excellency.His Excellency, Customs Commis-sioner and Authority Chairman, pointed out that the agreement pro-cures many advantages for both countries the most prominent of which is increasing trade volume exchange and reducing export and import costs of cargo and supply en-terprises and agencies, shrinking the rates of inspecting customs imports based on risk engine, simplifying import related documentation veri-fication provided compliance with submitting necessary documents for goods release in addition to expedit-ing imported goods clearance and minimizing customs clearance time.

His Excellency affirmed that customs relations between both countries wit-nessed ongoing progress based on brotherhood ties and unity of history and destiny, he indicated that customs departments in both countries aim at reinforcing mutual trade, promoting trade exchange, exchanging best cus-toms practices, expertise and knowl-edge, eliminating trade exchange ob-stacles and promoting private sector participation in customs operations. His Excellency said that the King-dom of Saudi Arabia is United Arab Emirates’ strategic partner, total non-oil foreign trade (direct trade, free zones and customs warehouses) be-tween them witnesses growing incre-ment and pointed out the existence of enormous opportunities for eco-nomic and commercial gains which stimulates both countries to reinforce customs cooperation. In this contexts, statistical data is-sued by the Federal Customs Au-thority indicates that total general non-oil foreign trade between Emir-ates and KSA amounted AED 107.4 billion (USD 29.4 billion) during 2018, Emirates imports from KSA amounted AED 27.8 billion (USD 7.6 billion) while its exports to KSA amounted AED 31.5 billion (USD 8.6), while re-exports amounted AED 48.1 (USD 13.2) which reflects the commercial significance of Unit-ed Arab Emirates to Saudi economy.Authorized economic operator pro-gram is qualitative shift in customs work in United Arab Emirates and the Kingdom of Saudi Arabic due to the ensured ease in customs clearance related procedures for compliant en-terprises on the light of measures and procedures backing customs security scheme and ensuring trade facilita-tion as implementing AEO, as fed-eral program all over Emirates, will integrate the state in terms of trade and customs globally and will enable program member enterprises goods to penetrate world markets easily in general and the markets of the coun-tries concluding mutual recognition agreement with it in particular.

Ali Saeed Al Neyadi: The agreement emerges on the light of the prudent directives of both countries leadership

and significant step to reinforce customs relations.


90’s Day of Customs


United Arab Emirates delegate, headed by Federal Customs Author-ity, participated in the 50th meeting of the North Africa, Middle East and Near East General Directors and the session of WCO’s customs coop-eration council session No. 133/134, both held at WCO headquarter in the Belgium capital Brussels.Meanwhile, on the side line of meet-ings, Kunio Mikuriya WCO Secre-tary General praised Emirates out-standing capabilities in employing technology and advanced techniques in promoting customs performance and achieving equilibrium between maintaining security and facilitating the movement of trade and travel-ers as well as its ability to organize and host major customs event world wide. H.E. Mohamed Juma Buosaiba, Federal Customs Authority Direc-tor General, presided state delegate comprising their excellency Ahmed Mahboub Musabeh, Dubai Customs Director General, Mohamed Meer Abdul Rahman, Executive Director

of Technical Affairs Sector at Abu Dhabi Customs, in addition to Soud Salem Al Aqroubi, International Re-lations Department Director in the Authority and Khalid Hasan Al Mar-zouqi, Projects Department Director at Abu Dhabi Customs. H.E. Buosaiba said that Emirates ex-tensively contributes to implement-ing initiatives, programs and plans adopted by the WCO stemming from its pioneering position in developing customs work and assuming the first positions globally in many interna-tional customs, commercial and eco-nomic indicators. H.E. pointed out that WCO’s con-sent during the meeting on United Arab Emirates’ hosting the 5th eco-nomic operators world conference

scheduled next March in Dubai for the first time in North Africa, Middle East and Near East deems a histori-cal event reflecting the effective role of United Arab Emirates in interna-tional and regional customs system in addition to its significant contri-bution to world trade movement as it is one of the most significant trade and customs centers in the region and globally.

Customs IssuesAuthority Director General and the chairman of the delegate clarified that world customs heads meeting addressed many current and outlook customs issues as the recent updates of e-commerce, reviewing the har-monized system, measuring customs departments performance, review-ing the revised Kyoto agreement, the mechanism of handling tourist vessels in addition to WCO elections and strategy for the period 2019-2022 and the updates of regional and national plans of capability building bureau in South Africa, Near East and Middle East region hosted by Emirates.

Buosaiba added: “the session of Cus-toms Cooperation Council session recommended finalizing the team mandated with setting e-commerce standards, cooperating with post authorities and departments to ex-change electronic information and developing the harmonized system to keep abreast with trade variations and requirements and authorizing the 2022 harmonized system as well, WCO strategic plan 2019-2022 has been authorized and shrinking its KPI’s to 30 objectives in addition to a recommendation on developing capability building strategy and em-ploying state-of-the-art technologies to analyze data and developing cus-toms cadre”.

Secretary General MeetingOn the side line of meetings, state delegate met H.E. Kunio Mikuriya WCO Secretary General in presence of H.E. Mohamed Issa Bu Shihab Al Suwaidi, UAE Ambassador in the Kingdom of Belgium.During the meeting, they exchanges view upon a number of customs is-sues including last preparations of

hosting 5th economic operators world conference in Emirates sched-uled next in Dubai between 10-12 march 2020. Kunio Mikuriya praised United Arab Emirates’ capability to host and or-ganize international events and func-tions and emphasized his confidence of such host succession in the light of Emirates proven experiences in host-ing IT conference and exhibition in 2013.WCO Secretary General praised Emirates’ vision and strategy in employing advanced technology to promote customs performance and achieving even the odds equation in facilitating customs related trade and movement of travelers while secur-ing and protecting borders by uti-lizing advanced clearance systems for shipments, rays detection instru-ments to screen containers, luggage, targeting systems and early enquiry upon travelers. The Organization emphasized the significance of state participation by showcasing its best practices in cus-toms field to be incorporated within Organization’s studies on best inter-

national practices in numerous areas supporting customs work relating to protecting society and facilitating trade as employing modern and ad-vanced techniques and customs role in free zones.

E-commerceAs regards to e-commerce, United Arab Emirates is planning to set up a number of well-established initia-tives and frameworks to license and anchoring measures to contribute to stimulate the owners of these licens-es, that includes the “federal portal of e-commerce” initiative that serves as a tool to communicate and interact among licensees and consumers as well as adopting the “organizational guidelines framework to license e-commerce activities” initiative, set-ting organizational structure to set up overseas e-commerce firms with a view of achieving fair competition among local and international firms in e-commerce in addition to offer-ing a set of incentives to e-commerce licensees specially local citizens to grow up the spirit of initiation and innovation.

UAE delegate takes part in Brussels meetings

The “International Organization” praises Emirates capability to employ technology

in customs development and events hosting

Mohamed Buosaiba: Magnificent participation of state in implementing well-organized

customs initiatives and plans

Buosaiba, BuShebab and delegate members with Organization Secretary General



hosts the 5th “Economic Operator” world conference�� Dubai (Emirates Customs)

UAE – represented by the emir-ate of Dubai- hosts the fifth world conference for Economic Operator, the first ever in the region, between 10th – 12th next March 2020, in co-operation with WCO and Federal Customs Authority keeping pace with EXPO and the extraordinary summit “Governments EXPO Sum-mit 2020”. Hosting such world event has been announced and approved during WCO meetings held at its premises in Belgium capital Brussels during 27-29 last June. Authorized Economic Operator pro-gram - representing a WCO agree-ment requirement to facilitate trade – is a qualitative shift in customs work due to the readiness of ad-hered companies customs clearance related procedures in accordance with measures and procedures shor-ing up customs security system and ensuring trade facilitation and also enables authorized companies there-in avail the readiness of their goods penetration to world markets, spe-cially program member countries.“Council annual sessions featured meaningful discussion aiming at co-ordinating members efforts to con-front mutual challenges”. Said Dr.

Kunio Mikuriya, WCO Secretary General. “ Resolutions adopted by the Council will augment customs leading role in managing borders, build sustainable customs manage-ment and keep pace with future worldwide”. He addedIn his speech in the course of Organi-zation Council session, Ahmed Mah-boub Musabeh, Dubai Customs Di-rector General said: “Dubai hosting the fifth conference of the authorized economic operator program the first ever in the region reflects the factual achievements and embodies a proof of our future ambitions and aspira-tions for Emirates as the state takes part with customs community in the efforts endeavored to support inter-national cooperation between public and private sectors and facilitate le-gal trade and travelers transfer cross-ing borders and we trust the confer-ence will achieve qualitative shift in customs work in the 21st century. No

doubt that your presence and effec-tive participation will bring our aspi-ration truth as Council members par-ticipation is a key success factor and looking forward to seeing you in the emirate of Dubai in March 2020”.At the conclusion of his speech, a promotional video of United Arab Emirates was displayed in addition to inviting customs departments and international organizations to take part in the conference. He added “approved economic oper-ator program, since its official launch under the umbrella of the Federal Customs Authority, witnesses tan-gible development in attracting new members, signing mutual recogni-tion agreements with world program members the last of which was the mutual recognition agreement of the authorized economic operator pro-gram between Emirates and China in September 2018 with an aim of aug-menting mutual trade and customs cooperation between both countries as China deems Emirates first trade partner moreover, Emirates execut-ed, in July 2017, mutual recognition agreement with South Korea fol-lowed by executing work plan with KSA within the same year to have 55 current partner of program company members in the Emirates”. He added.

Triggering its events in March 2020

UAEAhmed Mahboub:

The conference keeps pace with EXPO and instills Emirates as

world trade hub

Witnessed participation of 50 local departments inspectors

“FCA” organizes training courseon judicial arresting

�� Dubai (Emirates Customs)

Federal Customs Authority or-ganized a two days (24-25 June 2019) training course in Dubai for customs inspectors in local customs departments on judicial arresting and its role in reinforc-ing customs work in the country. Approximately 50 customs in-spectors from local customs de-partments participated in the training. Dr. Mohamed Ahmed Al Bekr, Authority legal advisor, ad-dressed by illustration and analy-sis, during the course, set of legal aspects pertaining judicial arrest-ing of customs inspectors includ-ing the definition of judicial arrest-ing, its reporting line, classes in terms of general and special spe-cialists, customs inspector setting therefrom, authorities and scope of his competence as judicial ar-resting commissioner in addition to exceptional investigation au-thorities, technical and legal con-tents of judicial arresting reports, introducing customs evasion crime, its perspectives, types and punishments, instituting criminal proceeding under customs evasion and other perspectives. Tarek Abdulla Bu Rahima, Direc-tor of Customs Development in the Authority, said that the judi-cial arresting training contributes to accomplishing Authority ob-jectives and initiatives in terms of reinforcing customs inspectors technical and legal skills and fur-ther augments the efforts of ex-cellence, quality and efficiency to keep abreast with accelerating developments in customs work. Bu rahima pointed out that the

training aims at enabling cus-toms inspectors in different state ports to assume their tasks and responsibilities in accordance with best practices particularly in implementing legal conditions in inspection and examination in addition to promoting inspec-tors performance standard, their awareness of federal laws gov-erning customs work, sound legal practices and qualifying them to attain judicial arresting capacity and promoting the skills of in-spectors participating in reason-ing and determination of facts. Director of Customs Develop-

ment added that the Federal Cus-toms Authority is working on implementing a number of ambi-tious initiatives to promote state customs inspectors performance and enhancing their abilities in addressing customs risks through different training courses held with Authority strategic partners in addition to the tasks, activities and initiatives upon which the Department is acting to promote the efficiency of customs inspec-tors as they deem the first defense line of the state and due to the sig-nificance of customs inspection profession in general.




WCO team concluded its diagnostic mission during which group visited the Federal Customs Authority and a number of local customs depart-ments between last June 23rd to 27th.WCO team, in the course of its visit conducted upon Authority’s request in coordination with local customs departments, has perused customs inspectors appointing and qualifica-tion mechanisms as applicable with-in the Authority and local customs departments with the aim of organiz-ing and standardizing the profession of customs inspection country wide in future and working to set unified federal standards and procedures to attract those interested in practicing customs inspection profession in ad-dition to perusing human resources planning and qualification plans in customs sector within the state. The team included Dr. Mohamed Al Hail, from WCO capability building bureau, Mrs. Julie Broke, training and development in-charge at bor-ders services agency, Canada and authorized expert at WCO while Emirates team was presided by Tariq Burehaima, Customs Development Department Director at the Author-ity. Organization delegate visited cus-toms department and held bilateral meetings with stakeholders from HR, Recruitment and customs in-spections officers in these depart-ments to examine the standards of qualification, training and appoint-ment of customs inspections in the departments. As well, bilateral meetings held with Control and Inspection Depart-

ment attended by Meeab Mohamed Al Bannai, Department Director, Mohamed Al Serkal, Licensing and Customs Instruments division, Ali Al Falasi and Mohamed Al Habai from Inspection and Monitoring Department and Mousa Auda, train-ing and development expert at the Authority. The visit targeted benefiting from WCO expertise and bets internation-al practices in developing customs inspection profession in the state and setting standardized and uniformed frameworks thereof in qualification and training areas at country level in par with recognized international ap-proaches in this regard. During the visit, WCO experts team praised customs performance in the state and plans of development, training and qualification under ex-ecution assuring that Emirates is a pioneering country in customs field in the region and the world.The team praised the significant role played by Emirates customs inspec-tors and applied standards and mech-anisms in appointing and attracting customs inspection profession as well as exerted efforts in qualifica-

tion, training and ongoing raising inspector competencies in line with best international practices. Dr. Mohamed Al Hail drew the at-tention to the tremendous develop-ment achieved by customs sector in the state and its application of best practices in various customs work domains in addition to innovating dozens of systems and initiatives that contributed to scaling up human resources efficiency and promoting customs zones performance stan-dard. In the course of the visit, Al Hail proposed that Emirates will show-case its current practice in customs development and human resources qualification and training at WCO meetings under the capability build-ing committee. Furthermore, Al Hail appreciated Federal Customs Au-thority’s endeavors in standardizing the mechanisms and standards of practicing inspection profession in accordance with best applied inter-national practices and WCO’s pro-posals. Dr. Al Hail, who conducted more than 100 diagnostic mission related to human resources covering in-

ternational customs departments, praised the standard of organization during the visit and the magnitude of operation and professionalism of the Authority and participating team from local customs departments. Mrs. Julie Broke expressed her gratitude and happiness of partici-pating Emirates teams members and praised their striving to accomplish the standardized competency based job description which relies on structural framework of competency framework. Tariq Burehaima, Customs Devel-opment Department Director at the Authority, said that this visit is based on Authority’s senior management directions and stemming from Au-thority’s mandates as stipulated in article (5) of the federal law (8) of 2015 pertaining the Federal Cus-toms Authority which provides for Authority’s mandates to set and au-thorize mutual coordinated training and development plan for customs employees within the country and providing necessary support to cus-toms departments where necessary.Burehaima emphasized that customs inspection profession organization

and standardization project will aug-ment customs inspection profession security role and hence, augmenting the role of customs sector in sup-porting state security system as well as maintaining community stability and its protection against improper commercial practices, he pointed out the significance of customs inspector in customs work and security invari-ably as it deems the first defense line of the state and its effective role in preclude any prohibited, counterfeit or fraudulent substances and fight-ing customs smuggling that impacts the security and safety of Emirates community and expats residing on its generous land. Customs Development Department Director affirmed that the visit re-sulted in a number of significant initiatives to be executed within the coming period, the most significant of which is studying developing and standardizing job titles and required competencies for customs inspec-tion profession, proposing required criteria to license customs inspection profession, working on standardiz-ing customs inspectors appointment within the state and recommending

its authorization in addition to aca-demic and technical qualification of customs inspectors as the most sig-nificant standard and preparing and reviewing competency framework, competency dictionary, job descrip-tion based on standard competencies of customs inspection in the state and job analysis of customs inspec-tion profession. Moreover, perfor-mance ongoing appraisal by customs inspectors officers is taken into ac-count. Tariq Burehaima set out the sig-nificance of diagnostic mission to Authority aspirations, project and initiatives it is working on in coop-eration with local customs depart-ments. Mutual technical committee was formed from the Authority and local customs departments aiming at organizing, standardizing and devel-oping the mechanisms of appointing and qualification of customs inspec-tors in all emirates to attain highest competency and capability of cus-toms inspectors in all state zones; land, sea and air. Burehaima related that, in the context of visit preparations, coordination with local customs departments has taken place to provide the Author-ity with authorized mechanisms to appoint customs inspectors as appli-cable in their departments and their career path to study them by Orga-nization experts in preparation of the visit in addition to forming a team-work comprising concerned person-nel from the Authority, officials from HR, Training and Development and Inspection Sector in local customs to work on implementing the project perfectly and ensuring inspectors ef-ficiency in all state zones; land, sea and air.

Unified Emirates Standardsto practice customs inspection profession

Customs Organization team concludes its diagnostic mission

Organization’s experts team praises customs performance in the state as well as development, qualification and training plan



Emiratescombats epidemic by exhaustive strategy


United Arab Emirates has partici-pated with world countries in cel-ebrating world day of anti-drugs coinciding with twenty sixth of last June under the slogans “our family our future … no to drugs”, Emirates and its wise leadership have had in-sightful vision made it aware the se-verity and harms of drugs as a result of its spread out. Competent authorities highlighted the extraordinary efforts endeavored to combat drugs lesion on all levels though an exhaustive strategy to protect our generations and society from the risks of such lesion and its disastrous consequences, family’s role also was prominent through their good education of their sons, education, monitoring and follow up up.

Customs effectual role In this regard, the Federal Customs Authority and local Customs De-partments attained outstanding in-crease in many seizures of drugs in border check points during the last

year in execution of the require-ments of the indicator “increasing the ratio drugs smuggling seizers through customs ports” as a strate-gic indicator approved by the Minis-try of Interior and the Cabinet. H.E. Ali Saeed Matar Al Neyadi, Customs delegate and Authority president, said that Customs sec-

tor participation to the increasing the ratio drugs smuggling indica-tor went up to 39% of the whole indictor indicating an increment of 5% above targeted ratio for Customs sector under the indicator, 33%, the matter which reflects the pivotal and significant role of customs sector in combating this lesion aimed at so-ciety stability, security, safety of its society and its level of productivity and progress. In press release on the occasion of the world day of anti-drugs, his ex-cellence pointed out the rise in the number of drugs seizures carried out by customs sector in the country up to 3332 seizure last year. Mean-while, the weight of such narcotic substances amounted to 2265 KG, and indicated that tramadol, other narcotic bills, suspected substances, cannabis, heroin and cocaine is re-ported on the top of seized narcotic substances by customs inspectors in border ports last year. His excellence said that the rise in seizure number reflects the vigilance of state customs inspectors and their high caliber in inspecting and moni-

toring the movement of goods and commodities in addition to raising their awareness of security risks and challenges encountered by the coun-ty recently. His excellence Ali Al Neyadi af-firmed that the Authority and local customs Departments implement an integrated strategic plan to com-bat smuggling narcotic substances through country customs ports for man years ago under its general plan to combat customs smuggling and preserving society security. His excellence pointed out that that plan is based in key pillars and di-rections the most prominent of which is promoting the level of per-formance in customs check points and augmenting efficiency level of customs inspectors and controllers via training, exchanging expertise and knowledge, reinforcing customs check points with state-of-the-art inspection and screening instru-mentation and establishing Author-ity’s own K9 unit , he added that the plan incorporates cooperation and coordination with the bodied competent with combating drugs in

state, exchange of information and notification pertaining to seizing narcotic substances with inbound and outbound partners and consult-ing best practices and experiences in this regard.

Guidebooks From his end, lieutenant general Dhahi Khalfan Tamim, Deputy Po-lice and General Security Chief in Dubai and Chairman of Anti-drug council, announced that the Council developed a guidelines manual for awareness of teachers and profes-sors in schools and universities to detect any potential of sons involve-ment in drugs lesion and identifying early signs of abuse to render assis-tance before it’s too late, and drew the attention to the role of social platforms in sons drift due to imitat-ing different cultures under the ab-sence of household awareness.Drugs crimes annual report 2018, issued by the Federal General Ad-ministration for Combating Drugs in the Ministry of Interior reflects achieved efforts and achievements whether in local domain, which re-

sulted in increasing the number of notification by 16% and arrested accusants in drugs crimes rose to 7168 accusant with an increment of 11.3% from the last year and reduc-tion in mortality resulting from drug abuse by 29.4% from last year and other statistics clarifying the entire image of drugs crime in the country.As regards to international domain, the Ministry could deliver a beating to drugs smuggling and promotion in their own home through out-standing international and regional cooperation with beer authorities of these countries resulting in arresting 3888 KG of narcotics in these inter-national drug combating operations and the number of confronting cross borders drugs last year reached 122 operation in coordination and coop-eration with 40 states.

Teachers awareness His excellence Dhahi Khalfan Ta-mim pointed out that preparing a guidelines manual for the aware-ness of teachers and professors in schools and universities to detect the possibility of sons involvement

Diverse awareness activities, guidebooks and seizures development in Emirates celebration of world dayTramadol, narcotic pills, cannabis, heroin and cocaine at the top of Customs seizures

Customs contribution to implement drugsseizure indicator


Reports

in drugs lesion will be issued soon in cooperation and coordination with the Ministry of Education, he appreciated the efforts of the Min-istry of Education and emphasized that Council’s communication with students and teachers turned into a featured unique pace thanks to Min-istry support. He also pointed out the Magnificent improvement in the performance indicators related to drugs combat-ing, psychotropic substances and the standard of care, awareness and confronting this destructive le-sion with a ration ranging between 35 and 45% a ratio representing an achievement accounted to the mas-sive efforts exerted by Drugs Com-bating Council and apparently dem-onstrated in the outcomes and ratios of change resulting from combating, control, rehabilitation, awareness and mortalities resulting from ex-cessive dosages, quantities of drugs and psychotropic substances seized during 2018 when compared with preceding year. He related : the Council organizes awareness campaigns regularly ev-ery 3 months whether in schools, universities or mosques “Friday ser-mon” in addition to massive aware-ness through visual-audio media and via social platforms affirming that combating indicators are now better than three preceding years. He pointed out that sons interactions with other cultures in addition to lack of family awareness firstly and school secondly would be a reason to drift in this cursed lesion and the rise in female drug abusers, he said that social media platforms have a role in sons drift in imitating such cultures under the absence of paren-tal awareness therefore, his excel-lence urges parents to be constantly close to their sons, have friendship with them and dedicate longer time for them. Lieutenant general Dhahi Khalfan said: The mistrial resolution to form Drugs Combating Council across the sate in March 2016, issued by

His Highness lieutenant general Said Bin Zayed Al Nahyan, Deputy Prime Minister the Minister of In-terior, which I am honored to pre-side, his members and teams were selected from different drugs com-bating departments in the country, from the outset we initiated dedicat-ing tasks and competencies, setting necessary plans to implement the national strategy to combat drugs and achieving approved indicators and targets of combating drugs over all core elements in according to exhaustive, integrated and balanced approach achieving Emirates vision and mission in cooperation among the Council, all strategic partners

country wide; ministries, govern-ment authorities and departments, border guards, ports, customs, na-tional rehabilitation centers and fi-nancial control bodies. Council achievements He pointed out that after lapsing more than three years from the form-ing the Drugs Combating Council country wise, we can say that police agencies and drugs combating team achieved significant and fascinat-ing achievements in the operations of arresting drugs crimes involved accused as demonstrated by annual results and statistics. He quoted that “Emirates prize for drugs combating” launched upon the ministerial resolution on form-ing the Drugs Combating Council, according to approved excellence standards, complements partners supporting role from various society tiers. He clarified that celebrating world day against Drug Abuse and Il-licit Trafficking this year under the them “our family our future … no to drugs” assures that despite the enor-mous efforts exerted by the Council and drugs combating bodies in the country which deem the first de-fense line to confront this lesion, these efforts will remain deficient under the absence of the defense line of higher priority against drugs problem and its prevalence i.e. the family which has the first role in good education of their sons, aware-ness, monitoring, following up and educating them in early age to say no to drugs and setting such rules and regulations that educate them discipline and commitment as re-gional values, good ethics education and compliance and securing such environment helping them to natu-rally grow away from tension. Role of media Furthermore, he highlighted the vital role of media, which deems a key partner in the awareness pro-cess of drugs damages and support-ing combating efforts whereas me-


Customs Inspection & Monitoring Department in the Authority took part in the events of World Day to Combat Drugs organized by Erada Center for Treatment and Rehab affiliated by the government of Dubai held at Festival City Mall in Dubai. Events launched under the theme “Our family our future ... No to drugs” aiming at educating public and community on severe adverse impacts of drugs on family, community and state’s exhaustive development process. Events included live panel discussion on cinema screens at Festival City in presence of speakers from Police GHQ – Dubai, Abu Dhabi Rehab Center Abu Dhabi, Federal Customs Authority to name a few. Meteab Mohamed Al Bannai, Head of Customs Inspection & Monitoring Department said that Authority’s participation in this day events evolves from the leading role of customs sector in the state to combat drugs lesion as Customs is the first line of defending community against all prohibited substances the most prominent of which is drugs, through intensifying control over border customs zones of various types. He added that taking part in Erada Center for Treatment and Rehab’s events emerges under strategic partnership with all effective institutions within the country in combating drugs and in the context of customs compliance initiative adopted by the Federal Customs Authority which aims at promoting the principles of competency, dignity and transparency across all customs work dimensions, he pointed out that such participa-tion contributes to highlight the pioneering role of the Authority and lo-cal customs departments in maintaining community stability, reinforcing security scheme, facilitating trade and reinforcing cooperation with the outside world. Al Bannai indicated that the events of Erada Center for Treatment and Re-hab, in the course of celebrating the World Day to Combat Drugs included miscellaneous links and activities to educate the public on the damages of drugs and the mechanisms of protecting youth and children there from as well as the role of competent authorities in the state in this regard, he re-called that events included panel discussions in participation of a number of entities, live broadcasting link and through cinema screens of Erada Cen-ter and finally withdraw rewards on cinema tickets, juniors link including questions and rewards in addition to coloring and reading stories. He highlighted that Customs Inspection & Monitoring Department’s par-ticipation in the course of the World Day to Combat Drugs at Festival City Mall included showcasing the inspection devices used in detecting drugs by Ion Scan 500 DTU, a laser device used to detect drugs.

Authority’s miscellaneous links in Erada Center events

dia became a double edged sword, particularly after the broad spread out of social media of various types and recipients rapid access to infor-mation, media is capable to form the first defense line in confronting drugs and highlighting its adverse and destructive impact as well as the consequences of spread out in society and spreading out awareness among youth through guidance and useful programs instead of spread-ing out meaningless and harmful programs stimulating and encourag-ing committing crimes and lead to deviation and addiction. Exhaustive endeavors In his turn, admiral Saeed Bin Ab-dulla Toyer Al Suwaidi, Director General, Federal General Admin-istration for Combating Drugs in the Ministry of Interior quoted that Emirates endeavors in combat-ing drugs proceeds in the light of an exhaustive strategy taking into consideration different perspec-tive of this issue which represents sever danger threatening the entire world, in terms of legislatives the state has constantly updated drugs combating laws and in terms of se-curity, police and security entities are working in full swing through its exhaustive security strategy to instill security and stability status in the country by keeping abreast with modern updates and employing the best techniques to accomplish the best security rates thanks to which Federal General Administration for Combating Drugs could deliver a beating to drugs traders and abort operations of promoting drugs dur-ing last years. Admiral Al Suwaidi quoted that the Ministry of Interior launched an ini-tiative to identify the magnitude of drugs spread out within the country based on best international success-ful practices and pilots, it also adopt-ed a portal in outstanding coopera-tion with health sector in the country to control disbursing narcotic medi-cation to mitigate its abuse.

Interactions with other cultures and lack of awareness behind sons slipping and rise of female abusers ratio

Arrested convicts increased to 7168 accused and mortality falls by 29.4%


Reports

Abdullah Al Khajain special Interview with “ ”:

“Smart Workspace” reduces customs declaration completion average from 1.76 million to 360 thousand hour per annum

Increase in customer happiness during Q1 2019 according Dubai Smart Government indicator

Integrated strategy based on 4 dimensions to enhance perfor-mance and protect community from illegal trade risks

“Dubai Customs” constructs global development model based on smart systems

X Dubai Customs attained high ranking in customer happiness indicator during 2018 of more than 98%.. what are the features of Dubai strategy to bring hap-piness to customers? And what were the mechanisms applied to attain such mark?

Dubai Customs attained the top ratio in customer happiness among Dubai government departments entirely, which is denoted by a ratio of 97.5% in 2018, the department could beat the record and attain unprecedented figure in customer happiness during the first quarter of 2019 represented in a ratio of 98% according to Dubai

smart government indicator. This peerless standard in customer happiness has been achieved due to direct follow up and overseeing by H.E. Sultan Ahmed Bin Saleem, Chairman and CEO of Dubai World Ports Group, President of Ports, Cus-toms and Free Zone Corporation and H.E. Ahmed Mahboub Musabeh, Dubai Customs Director General and through prompt response to the requirements of merchants, investors and travelers in terms of enhancing rendered customs services time and quality. Moreover, the Department devel-oped “Smart Workspace platform”

to facilitate and expedite customs declaration to be finalized within 4-5 minutes only in lieu of 20-40 minutes saving 1.4 million companies work-ing hours annually while reducing completion average of total annual customs declarations from 1.76 mil-lion hour to 360 thousand hour after launching the Smart Workspace plat-form.

X Dubai Customs assumes dra-matically significant role in re-inforcing security system in the emirate through controlling dual utilization commodities, banned and limited commodities.. in this

regard, what is Dubai Customs policy? And what are the most prominent initiatives implement-ed to support its security role?

Dubai Customs is keen to assume its vital function in Dubai emirate secu-rity scheme and broadly in UAE, the Department is working on protect-ing community security, safety and economy from smuggling and illicit trade via developing its capabilities inspection and examination areas as well as inspection, customs intelli-gence and risk management to shore up controlling dual utilization com-

modities, banned and restricted com-modities. In this regard, the Department adopts integrated strategy to develop its performance in critical areas as pro-tecting community from illicit trade risks, this strategy is based on four key dimensions; first, technology development where we developed smart risk engine system to manage risks, this engine monitors and tar-gets suspected shipments in advance prior its arrival so that automatically approved risk-free transactions with-out human intervention that falls be-low two minutes through smart risk engine represented 97%. As well,

the Department constructed 8 con-trol rooms distributed among the headquarter and number of customs centers, they are intended to follow up security customs activities round-the-clock. Control room within Department premises discharges its activities through monitoring cameras distrib-uted among land, sea and air ports amounting 541 camera covering 25 customs zones all over Dubai emir-ate. As to the second dimension of our strategy, we are persistently work-ing on developing inspection instru-ments and devices, the Department developed advanced system to screen containers, they screen 750 contain-ers hourly through 5 screening devic-es utilizing advanced containers ray screening in Jebel Ali.Each of the said devices features advanced containers screening and capable to screen 150 truck hourly while it moves in a speed ranges 8 to 15 KM i.e. one truck every 24 sec-onds. Moreover, the Department developed

Within few years, Dubai Customs could con-struct unique model in customs development. This model features entire clarity for future vi-sion inspired by the vision, prudence and direc-tions of Dubai emirate wise leadership, it also features inclusion of all customs work dimen-sions as human resources, control, inspection, examination, clearance and procedure simplifi-cation while the top of all is its entire reliance on smart application and most recent technology as principle means of development and heading to-wards lofting towards future to attain full mark in bringing happiness to customers. As well, the

most significant feature of this model is its reli-ance on the forearms, ideas and capabilities of the country fore mostly and as such, it is a first class national model. We brought up the characteristics of this unique development model, its philosophy, dimensions, pillars, objectives, outcomes, indicators, extents and indications upon the table of H.E. Abdullah Al Khaja, Customers Management Sector Ex-ecutive Director – Dubai Customs, to have his answers as follows:

Interviewer – Hassan Elkamhawi

98%


Interview

smart customs system to inspect trav-elers luggage in Dubai airports which curtails suspected luggage inspection time by 70%. On third dimension, the Depart-ment attached great significance of its strategy to develop flow chan-nels and information exchange with strategic partners from government entities within state and in coopera-tion with trade security competent re-gional and international institutions abroad.

X Facilitating trade represents criti-cal pillar in customs work.. what is Dubai Customs strategy and what are the characteristics of its practice in facilitating trade and simplifying customs procedures?

Dubai Customs play vital role in de-veloping foreign trade and promoting its contribution to national income to reinforce diversity of income sources stemming from Dubai role as the business capital and refraining from sole source of life in accordance with the Eight Principles of Dubai and in execution of Dubai’s fifty year char-ter as we are working on supporting Dubai and Dubai silk line, the first article in the charter so as to reinforce Dubai accomplishments in trade and logistics. Notably, our endeavors to facilitate trade, in collaboration with all com-petent government entities and with our private sector partners, resulted in a rise of Dubai foreign non-oil trade in 2018 to AED 1.3 billion and as such the emirate achieved huge pace in the volume of its foreign trade during the first quarter of 2019 to declare 32% so that the weight of Dubai foreign trade commodities

amounted 27.71 million ton with an increment of 6.71 million ton over trade quantum during the first quar-ter of 2018. furthermore, the emirate scored robust growth in the value of its foreign trade; amounted AED 339 billion during the first quarter of this year, scoring 7% growth with an in-crement amounting AED 23 billion compared to the first quarter of 2018. The Department develops its initia-tive of facilitating trade and simpli-fying customs procedures by keeping abreast to get prepared to host EXPO 2020. One the distinctive of such initiative is the authorized economic operator program, launched under the Federal Customs Authority blanket to support customers ability to uplift their trade activities thanks to the competitive advantages procured by the program. Factually, the ratio of completed cus-toms declaration through economic operator program increased to 34% of total customs declaration of Dubai Customs Department in 2018, com-pared to 23% in 2017, such ratio is anticipated to witness an increase to 50% by 2020 in accordance with De-partment plan. Likewise, the Department launched the virtual corridor initiative to fa-cilitate commercial goods transfer among customs zones in Dubai emir-ate, also the Department developed

an initiative cited “virtual stock guar-antee” for licensed companies and customs warehouses in free zones in Dubai of which 18000 company benefit in more than 24 free zone in Dubai and 37 customs warehouse. It is planned to infuse AED 455 mil-lion through this quality initiative by returning back customs guarantees to free zone companies and licensed customs warehouses. Of the featured system developed by Dubai Customs is “smart recovery” system concerning custom duties uti-lizing artificial intelligence technolo-gy pursuant to which the system han-dles 1.8 million application annually, represented in 5 thousand application a day, and whose implementation resulted in increasing low-risk ship-ments clearance efficiency to 98% of local commodities transactions.

X How can Dubai Customs clear goods rapidly despite mass trade movement in Dubai; regional and international hub for world trade? And what is the total cus-toms declaration handled by Dubai Customs in 2018?

Dubai Customs achieved significant advancement in expediting customs clearing completion by developing the technological system we em-ploy in our customs operations and setting up integrated work scheme supporting our abilities to augment our ability to render best services to customers to bring happiness to them and to enable them clear their goods since receiving them from our cus-toms zones till reaching commercial markets under the integrated customs control over security, economic and

social risks. In this context, the Department has been successful to save more than 77% of customs transactions com-pletion time and as such, 96% of risk-free customs declarations are automatically handled in less than two minutes. Risk engine system curtailed customs clearance time of risk-free shipments to less than 10 seconds. As well, smart systems developed by Customs Development Sector within the Department enhanced the quality of services rendered to customers, the most important of which is “travelers smart early warning system thanks to which customs time completion and travelers waiting time contracted from 45 minute to 5 minutes only. On the other hand, the number of customs transactions processed by Dubai Customs in 2018 amounted 9.6 million transactions compared to 9 million transaction in 2017 more-over, the Department succeeded in recording 8.5% growth in the num-

ber of processed customs transac-tions during the first quarter of this year to reach 2.6 million transaction compared to 2.4 million transaction during the first quarter of 2018.

X Customs zones development is one of key pillars of Dubai Cus-toms’ development plans.. what are the recent updates of devel-oping customs zones in the emir-ate? And what is the number of screening devices on Department hands, and what is its plan to aug-ment the efficiency of inspectors and inspection process in its affili-ated zones?

Our efforts towards promoting Dubai emirate customs zones performance is founded on development plans in-cluding the services rendered to cus-tomers, the Department launched “7 stars centers” with a view to promote customer service centers efficiency and classification in accordance with international 7 stars classification through providing best standard of

services in our centers to serve cus-tomers and bring happiness to them. We work persistently endeavor to promote customs centers by devel-oping customs inspection scheme through transformation from tradi-tional technology based system to employing smart intelligence based applications to ensure best perfor-mance in inspecting containers, ve-hicles, goods and parcels. Total number of inspection devices utilized by Dubai Customs amounted 944 devices which vary between 6 inspection devices to for X-Ray in-spection of containers, 24 devices for X-Ray inspection of small parcels, 23 devices to detect drugs, explo-sives and radioactive substances, 4 devices to inspect mass parcels by X-Ray, 700 device to gauge acquired radioactive dosage in addition to 187 radio device used in completing in-spection operations. As well, Dubai customs developed new innovations supporting customs inspection the most prominent of which is mobile laboratory and spe-cial unit comprising devices used in inspection and within the framework of Federal Customs Authority plan to augment customs zones within the state with state-of-the-art devices, in cooperation with the Authority, mo-bile inspection devices (MB1213DE) have been operated to inspect con-tainers and vehicles utilizing X-Ray system to reinforce our capabilities in distinguishing between organic and non organic substances and ex-press screening and detecting any ra-dioactive interaction or activity.

X Artificial intelligence and Block-chain technologies represent the

Constructing 8 rooms for control at the headquarter and customs centers follow up activities round-the-clockMore than 77% time saved in transactions and automated handling more than 96%of risk-free declarations


Interview

latest technologies utilized in de-veloping the work of Dubai Cus-toms.. what are the most promi-nent outcomes and accomplished initiatives by Dubai Customs in this field?

The Department develops techno-logical capabilities of all utilized de-vices and equipments in various cus-toms operation by integrating latest artificial intelligence applications in its operations which includes all our technology systems to process decla-rations and following up customers through smart systems comprising 53 key service rendered to our cus-tomers via smart systems on 24/7 basis. Furthermore, artificial intelligence applications include our systems to process customs declarations, col-lecting fees and customs audit, we also develop examination and in-spection systems employing artificial intelligence applications to finalize customs inspection operations in high speed and skill. The Department launched new ad-vanced device for smart inspection operating by computerized CT scan to inspect hand-bags by “3D” tech-nology and “dual energy” technol-ogy.

X What is the magnitude of customs seizures achieved by Dubai Cus-toms in 2018 with concentration on the seizures of drugs and intel-lectual property?

Number of seizures achieved by Dubai Customs in 2018 amounted approximately 2659 in all customs zones, they included a number of violations as smuggling drugs, pro-

hibited and restricted substances and forged documents, the number of In-tellectual property seizures achieved by Dubai Customs in 2018 amounted 272 whose value exceeds AED 52 million. Meanwhile, drugs seizures amounted 421 during the first quarter in 2019 in all customs zones (land, sea and air) where Jebel Ali customs center recorded one seizure being aborting an attempt to smuggle 5 million and 715 captagon bills.

X Emirates makes efforts to stan-dardize customs clearance pro-cedures and systems across the state.. what is Department’s role in these efforts?

We are always keen, in Dubai Cus-

toms, to augment the efforts en-deavored by the Federal Customs Authority to standardize customs clearance procedures and systems in execution of cabinet resolution No. 7/14 of 2019, we are committed, in this connection, to inform local customs departments about latest systems and innovations to embark on implementing standardized pro-cedures of customs clearance across the state. We coordinate, as well, with the Au-thority in developing uniformed sys-tem for customs value state wise in order to uniform the mechanism of determining due customs duties on inward goods and commodities.

X Human element forms a key di-mension in development within Dubai Customs.. what is Dubai Customs strategy in shoring up performance and scaling up the efficiency of inspectors and work-force and promoting productiv-ity?

Dubai Customs put in place an ex-haustive strategy to develop human resources, within the Department, with a view to promote al functional categories performance to enhance services quality and develop institu-tional culture based on excellence, innovation and creativity thorough employees ongoing qualification and training by their placement in train-ing programs associated with their career requirements. Dubai Customs has conducted 978 training session since 2016 till the endof third quarter, September 2018 whereby 13526 participations took part.

Smart technology and applications, in early twenty first century, be-came the backbone of customs function in a number of world countries including United Arab Emirates, many coun-tries succeeded to innovate smart technological sys-tems and projects in all customs work dimensions that have outstanding im-pact on reinforcing customs department and developing practice tools and approach-es or the customs operation throughout its various stages, whether in terms of risk manage-ment, clearance, inspection, set-off, collecting fees, transport, cargo agen-cies or other work dimensions. Such projects, innovations and systems positive-ly impacted backing compliance culture within all supply chain and cargo entities and agencies worldwide as well as its impact on maximizing customs departments gains, reducing the costs of cargo, import and export for customs operation partners in addition to curtailing customs clear-ance time to few minutes instead of days and weeks earlier.

Above all, such new systems and smart applications backed the

“SMART Borders” concept as new customs department new

approach and procured enor-mous quantum of cargo re-lated data and information right away. Consecutive successes in implementing electronic and smart systems in cus-toms work contributed to

intensify customs depart-ments capability to harmo-

nized management of borders therefore, WCO elected the

theme “ Smart borders for seam-less trade, travel and transport” as

2019’s customs work them worldwide. Due to the significance of SMART Borders and its future impacts on customs departments struc-ture and operating mechanisms, “Emirates Cus-toms” magazine addresses 5 international prac-tices in implementing and innovated systems and applications to promote customs operations per-formance the most prominent of which the prac-tice of Emirates, South Korea, Australia, African countries in addition to DHL international Co.

Detection devices rises to 944 device to inspect containers, parcels and drugs detectionDubai Customs put in place an exhaustive strategy to develop human resource

World practices maximize customs departments gains and reinforce compliance

SMART Borders..

File prepared by:Hassan Elkamhawi


Interview The File

01


For many decades, technol-ogy and smart applications represent strategic movement and key element on customs development journey in the United Arab Emirates. This movement emerges from state strategic direction aim-ing at building knowledge based competitive economy in implementation of Emirates 2021 vision and its preceding development strategies.Recent years witnessed breadth of employing tech-nology and smart applica-tions in state customs sector whether federally or locally, even the Authority and local customs departments suc-ceeded in innovating several system pertaining to manag-ing risks, customs clearing, duties direct automated transfer, electronic statistics and other customs operations pillars. Such systems con-tributed to promoting state position to elite positions in many world competitiveness indices.

Direct automated system to transfer customs duties among GCC countries, an Emirati initiative to develop Gulf clearing mechanism

set to progress Emirates Customs towards global standard

Innovative projects to manage risks, clear-ing and transfer

Smart systems

Furthermore, the Authority is currently en-gaged in implementing customs system uni-fication across the state, it has reverently ob-tained consent from the honorable Cabinet to authorize single customs system to oper-ate in local customs departments. In this context, it is notable that the Federal Customs Authority achieved advanced posi-tions country wise in electronic and smart government indicators. In accordance with government enablers indicators for 2018, promulgated by the honorable Cabinet Of-fice, the Authority ranked first position among federal government in the electronic and smart transition to government services marking 100% compared to an average of 97.85% in other federal entities. Direct automated transfer of customs du-ties among GCC countries, adopted in No-vember 2015 by Emirati initiative from the Federal Customs Authority under the smart government initiatives, represent one of the most prominent models of technological de-velopment attained by Emirates in customs work domain which extends to cover Gulf countries let alone local level. Direct automated customs duties transfer is regional electronic system to transfer cus-toms duties among GCC countries, the sys-tem is implemented by customs departments in GCC countries, through the system mem-ber states abide by transferring customs du-ties of goods exiting from any of its zones to state, goods final destination, within 30 days from its arrival notification to its final desti-nation in accordance with specific technical and procedural conditions.Customs duties transferred by Emirates to GCC countries for goods and commodities entering these countries through Emirates customs zones totaled approx. AED 4.5 bil-

lion including duties transferred from GCC countries where duties are collected at the first entry zone.Implementing the system contributed to increasing the rate of transferring customs duties among GCC countries from 57% of state members financial claims under manu-al set-off mechanism prior adopting the new system to 99.7% of currently authorized overall claims.Due to system positive benefits, the Fed-eral Customs Authority awarded Emirates Ideas Reward in 2017, a reward organized by Dubai Quality Group during November 2017 in Dubai within the category of inno-vation in smart government area for the idea of “Direct automated customs duties trans-fer” system.One of the electronic systems on which cus-toms sector in UAE is engaged is e-statistics system adopted by the Federal Customs Authority incepted early in 2010 to handle increasing demand on customs statistic data and information from both government and private sectors.Customs e-statistics system represents the largest customs statistics platform in Emir-ates and contributes to laying down policies and decision taking in government entities and various industries in private sector.On monthly basis, data is uploaded to the system in the form of initial data and on an-nual basis, data is loaded as final data two months beyond year end. The number of system data providers amounted 7 local cus-toms departments benefiting more than 18 government and private entity. 14.8 million statistic registrations are launched to the sys-tem based on which 24 monthly reports are issued on direct trade and free zones trade in addition to 140 annual statistic report is-

sued by the system covering various types of statistics.At present, the Authority is implementing a project on instant link between the system to local customs department to allow avail-ability of Authority’s statistics data and in-formation on the spot which shall contribute to quantum shift in customs statistics.Customs sector has also adopted an out-standing system in UAE, customs circu-lations system, a system developed and launched in 2012 in an effort to exchange customs circulations among various entities within the state (ministries, authorities …etc.) and customs zones. Functioning 24/7 with non stop, the system since its imple-mentation till the end of 2018 has published and issued almost 286 circulation and linked to more than 27 entity within state.Already, the Authority is implementing UAE customs gateways with a view to in-tegrate Authority’s system concerning the external clients from local customs in one gateway , so that vlient will be able to access on one-stop basis (one working session) to all systems to which he is authorized accord-ingly, concerned staff member tasks become easier. Customs systems within the Author-ity, including the single gateway, to accom-modate any new customs systems adopted by customs sector in state in the near future.Dubai Customs developed its system to de-termine customs tariff to render the system entirely smart through “Smart customs valu-ation project”, a smart system to monitor imported goods value and ensuring the most accurate customs duties relying on advanced techniques conducive to predicting varia-tions in the prices of goods and commodi-ties with electronically driven mechanisms providing the feature of self revision of such

variations on ongoing basis relying on artifi-cial intelligence.As well, General Customs Authority - Abu Dhabi, launched 4 smart customs projects package by taking part in the 38th technol-ogy week cycle (GITEX 2018).The first project is titled “Customs inspec-tion system in land customs zones” whereby electronic integration has been implement-ed with the Ministry of Interior to retrieve the data of vehicles and travelers directly upon entering the country, when the vehicle reaches inspection area, inspector displays the data utilizing handheld device equipped with laser reader.Second project is “Containers clearing elec-tronic gate system”, an electronic system linking all entities operating in Khalifa Port and accordingly, it curtails customs clearing steps as it substitutes all paper copies with electronic messages among systems and as such, ensures accuracy of transferred data, deterring forgery operations, cementing effi-ciency, shrinking clearing time and expedit-ing trucks exit procedures.Meanwhile, third project “smart reports sys-tem” provides customs leadership with out-standingly precise statistic information and data and connected to databases of many crit-ical institutional dimensions as foreign trade, human resources, customs data, seizures …etc, along with the ability of deep search and retrieve of data and adding new indicators.As well, the General Customs Department – Abu Dhabi launched the single electronic window “Mammar” which facilitates trade activity through sea ports firstly then im-plementing the same in land , air ports and postal terminals in Abu Dhabi emirate in partnership with the “Abu Dhabi Ports” af-filiated Al Maqtaa.

World Customs Organiza-tion praised, through “Co-lumbus” diagnostic mission report, the “smart risk en-gine” system innovated and adopted by Dubai Customs, it further rated the system as international class sys-tem and called all customs department worldwide to avail such system.Dubai Customs smart risk engine system harvested considerable local and international recognition as it has been awarded Dubai Government Excellence Program, technological/ technical project category (2012-2013 cycle).Risk-free transactions, automatically authorized without human interven-tion that falls below two minutes through smart risk engine represented 97% during 2016 of total cus-toms transactions during same year which reflects its role in expediting procedures and providing services bringing happiness to customers.In its turn, “Smart Recov-ery” system, an outstanding system developed by Dubai Customs for insuring cus-tom duties employing artifi-cial intelligence technology where the system handles 1.8 million application per annum i.e. 5 thousand application daily, notably system implementation promoted low-risk cargo clearance efficiency to 98% of local goods transactions.

Smart Risk Engine


The File

South Korea..Logistics Trilateral Platform Based on “Blockchain”

Korea Customs Conducts Researches to Discover Application of Blockchain in Logistics and Digital Currencies

�� Seoul (Emirates Customs)

Since the Fourth Industrial Revolution was mentioned in 2016 at the World Eco-nomic Forum, the impact of technologies such as artificial intelligence (AI), the block-chain and “big data” have become issues discussed at length worldwide. In Korea, in preparing for the future, the government formed a “Fourth Industrial Revolu-tion Committee” in 2017, directly reporting to the President. The Committee is mandated to coordinate important policy matters pertaining to the develop-ment and acquisition of new science and technology.As part of the government’s efforts, the Korea Customs Service (KCS) is looking into the potential application of new technologies, said the re-port by Tae II Kang, Director general of the Information and International Affairs, Korea Customs Service. In 2017, the KCS established an ICT Development Division for this task, and, in 2018, launched the “Fourth Indus-trial Revolution and Smart Customs” project, with the aim of introducing AI, the blockchain and big data to back up Customs processes. In this article, the KCS pres-ents the steps taken to adopt blockchain technology.

02Customs Administra-tion Seeks to Change the Rules of the Game

The benefits of the blockchain, first known to the public as the technology behind Bit-coin, the world’s first virtual money, are now pretty well understood: information can be exchanged without an intermediary, whilst ensuring data integrity and providing a full audit trail. Blockchain technology is being adopted around the world in sectors such as finance, distribution, manufacture, and health care. Unfortunately, in most cases, solutions that have been developed are at a verification or pilot stage, and it is still difficult to find examples of a tool applying the technology.With the above in mind, and to give impetus to its Fourth Industrial Revolution and Smart Customs project, in 2017, the KCS decided to undertake some research aimed at explor-ing the application of the blockchain to other areas, besides cryptocurrencies.To do so, the KCS first decided to join the joint public-private maritime export logistics consortium led by the domestic ICT com-pany, SAMSUNG SDS Co., which brings together 41 entities, including government agencies such as the KCS and the Ministry of Maritime Affairs and Fisheries, as well as transporters and consignors, according to the report.After consulting with all participants, the KCS was able to confirm that it was techni-cally possible for logistics actors to share logistics documents such as bills of lading and letters of credit through a platform based on blockchain

technology. Such a solution would enable the prevention of forgery and falsification of import/export logistics documents, and the simplification of their issuance procedures. The conclusion was that there was a need for a government-led project to establish a blockchain-based logistics platform.The KCS’s second step was to review ar-eas where the use of blockchain solutions would make sense. The import/export clear-ance process was identified as a good start, given that it would benefit from a solution that would guarantee information reliability, real-time information sharing, and simpli-fied work processes. It then identified the clearance processes best suited to the exer-cise. Three were selected: export clearance where the consignor is a corporate entity, e-commerce imports where the consignee is a natural person, and cross-border information exchange.A gradual and systematic approach was ad-opted, taking into account the significant impact that the new technology would have on the overall trade environment, and the

necessary legislative and policy chang-es that would be required. Pilot

projects were carried out to uncover any technical and

institutional challenges, and formulate ways to steadily integrate the blockchain into existing Customs systems. The appli-cations developed as part of these pilots all use “hy-

perledger fabric,” a private blockchain

framework implementation (a permissioned blockchain infrastructure).At import or export, the clearance process is rather complicated, and involves a great number of actors who need to share a vast amount of information. In Korea, the sharing of information between parties to a transac-tion is only possible on a one-to-one basis, via email, fax, mail or individual information technology (IT) systems, to the detriment of data quality and accuracy, not to mention the fact that data may be falsified at some stage in the process.The pilot project related to the export clear-ance was carried out by the SAMSUNG SDS Co. and KCNET Co. consortium. They worked with 49 business participants, con-sisting of exporters, shippers and warehouse operators, within seven working groups. During the pilot, participants shared 22 types of documents in real time, including the com-mercial invoice, the packing list, the bill of lading, the booking request or confirmation, and the export declaration. Participants later added new information and documents on the shared ledger.The platform will undergo further testing during the year and, based on the outcomes of the final pilot, an application will be de-signed. In addition, the pilot’s results are expected to serve as the basis for the devel-opment of an application for the import clear-ance process.E-commerce transactions involve individu-als unknown to an administration. Although goods bought online by individuals repre-sent, in terms of value, a small share of global imports, Customs is concerned with prevent-ing contraband and other prohibited items from entering a country. At the moment, as-

sessing risk presents some constraints, given the low quality of data available from these transactions.Here again, blockchain technology would facilitate the clearance procedures and en-able Customs to perform high-quality risk management. In the pilot project related to e-commerce, two companies, Nomad con-nection Co. and Matrix2B Co., developed a platform. The aim of the project was to test the feasibility of mutually sharing real-time information between e-commerce, transport companies and the KCS.Korea has simplified Customs procedures in place for low-value goods: for postal opera-tors the threshold is 125 US dollars using the CIF price, and for couriers the threshold is 100 US dollars using the FOB price, or 200 US dollars for goods originating in the Unit-ed States (US), under the terms of the Free Trade Agreement (FTA) signed between Ko-rea and the US.In other words, there is a “reporting” thresh-old for goods in respect of which a full Cus-toms declaration must be submitted: for express cargo, a “list clearance” procedure al-lows a trader or individuals to receive goods and, providing their value is below the de minimis threshold, clear them by submitting 26 pieces of information, such as the trader’s name and address, the consignee’s name and address, and the type and price of the goods; as for goods entering via the international mail channel, they are cleared on-the-spot.The application makes use of “smart con-tracts” to handle transactions under the list clearance procedure: required information is collected automatically if the procedure’s set conditions are satisfied. Other processes will gradually be tested in the future.

Ensuring reliable informa-tion exchange between countries is critical to im-proving work processes and further facilitating trade. However, for countries to agree on such a level of cooperation requires trust.The big advantage of block-chain technology is that it creates an environment of “trust” between and among unknown parties to transact business and exchange information. It is, therefore, the most suitable technol-ogy to establish automatic cross-border data exchange between Customs adminis-trations.The pilot related to this project aimed at testing a solution to exchange certifi-cates of origin, a document that remains in paper form in many countries, although the number of FTAs being concluded is growing, and, with it, the number of cer-tificates being issued.As Korea and Vietnam are currently discussing the possibility of dematerial-izing certificates required to provide preferential entry of originating goods, the KCS worked with Vietnam Cus-toms as well as with Korean exporters and Vietnamese importers. The application built as part of the pilot enabled certificates of origin issued in Korea to be shared in real time with Korean exporters, Vietnamese im-porters, and the Vietnamese Customs administration.

CROSS-BORDER PLATFORM

The File


Express Industry has Backed Traditional Trade with Sophisticated IT and Tech-nological Control Systems

is a Custom Demand for a Way ForwardStandardizing Platforms..

Express Industry Provides Tremendous Amount of Data03

In the Express Industry, we have had to adapt our principal B2B delivery model to an in-creasing B2C model, servicing consumer de-liveries at home or elsewhere. As e-commerce has grown at speed, so the Express Industry has invested heavily in adapting its integrator model to match that growth, adapting both our delivery models and networks, as Steven said.Before the evolution of e-commerce, the Ex-press Industry principally served the B2B market, which required our couriers to collect a large volume of shipments from one com-mercial address and deliver multiple items to another commercial address at destination.B2C changed that, especially at final delivery, requiring couriers to make more stops, often with only one shipment per stop, and deliver-ing to residential as opposed to commercial addresses, where the key challenge is ensuring that someone is available to receive the ship-ment.This evolution has come on top of, and not in-stead of, our traditional B2B business, so we have had to manage an evolutionary change in conditions where we are seeing fast growth in shipment volumes entering our networks.The Express Industry is an innovative industry by nature, bolting together extensive air and road networks, local pick-up and delivery ser-vices, and massive infor-mation technology (IT) services to create one integrated and secure supply chain, driven by the needs of our customers.A major balance for us is maintaining our traditional B2B model alongside the more resource inten-sive B2C model, and

here technology and a vision for innovation play a key role, with IT at the forefront. So what do we do and how do we assure our sup-ply chain integrity, so that clients receive their shipment, (as long as it is compliant), on time at their door?“Having an integrated network is a major advantage; however, the Express Industry has backed this up with sophisticated IT and technological control systems developed and implemented into our supply chain by experi-enced and well trained experts. Some of you, who know our members attending the WCO and other fora, are well aware of the back-ground and experience of our experts. Some of you may even have worked with them as colleagues in the public sector” Said Steven.Linking this experience with a culture based on adapting to an ever-changing world enables the Express Industry to thrive. Automation plays a pivotal role in the success of ensuring that a package is picked up in Hong Kong in the evening and delivered to New York the fol-lowing morning. Using bar-code technology, a shipment is tracked from start to finish travel-ling across the globe, with every stage in its delivery cycle recorded centrally.

“Take a visit to one of our hubs and you will see the six-sided bar-

code scanner (designed to read the bar code, no mat-

ter the position of the shipment on the belt) recording the arrival of a shipment in the facility together with information on the waybill linked to it, and indicating where the shipment came from and where it is

going to, among other things” added Steven.

This signals the system to direct an individual shipment to a specific channel to ensure that the shipment is either sent to a container for inward transportation, or to Customs for in-spection, or held if other checks are required. This, of course, is subject to the availability of electronic Customs clearance systems, which can communicate with our systems and gener-ate a stop message.Checkpoints record key integrity-based pro-cesses such as security screening via x-ray, or checks against the consignor or consignee for any potential breaches of trade sanctions or de-nied parties.At the customer level, we have adapted our courier mobile technology to offer delivery windows for private consumers, in particular to ensure that they are at home when a ship-ment arrives. For some, a delivery at home is not what they want, and so we have adapted to deliveries to self-developed lockers situated at key geographical locations in towns and cit-ies, or to pick-up points in, for example, shops. Notification is often via an app, email or SMS, depending on customer preferences.All of these developments require one thing; the standardization of platforms, and adap-tation to the latest technological solutions available. The Express Industry is data rich, supporting a log recording the journey of a shipment, which assures its integrity along the supply chain.However, for regulatory bodies such as Cus-toms authorities, this goldmine of information is not as valuable if there are no standardized and up-to-date means for Customs to collect and interpret this data.Utilizing our data to its full extent requires closer cooperation between policymakers and the Express Industry, something we see at a global level via the WCO, but needs refining at a national and regional Customs level. And this goes for industry as a whole.

“As an industry, we are a naturally curious and outcome-orientated partner. We are always looking for better ways to engage with our stakeholders to share knowledge and increase understanding of each other’s priorities” he added.There is probably no better example than the development of the Air Cargo Advanced Screening, or ACAS, programme, the name given in the United States (US) to what is known at the WCO as the “Pre-loading Ad-vance Cargo Information (PLACI)” pro-gramme, which provides for the submission of a reduced data set by industry to Govern-ment to risk assess air cargo for a potential terrorist threat, often referred to as the “bomb in a box.”The programme first started in December 2010, and the Express Industry led the way by piloting means to transmit data to US Cus-toms and Border Protection (CBP) and the US Transportation Security Administration (TSA). The open dialogue and commitment on both sides to find an effective and practical way to implement the screening of air cargo data paved the way for a low-cost, but effec-tive, way for the US to screen data, quickly and simply.The transparency between Customs and car-riers allowed the programme to be adaptable, and in addition, having a shared focus on se-curity, encouraged participation, and coopera-tion. The result was a successful programme that, through technology, maximized the use of early data and risk assessment without im-peding the flow of commerce.The Internet has changed our daily lives and made the world smaller via harmonized sys-tems, enabling people to search for informa-tion, book a hotel room, or buy a product any-where in the world. Commercial processes are now global in nature, and Customs processes need to be following that trend.


Technology is changing at what seems like an ever-in-creasing pace, raising discus-sion about autonomous cars and the future of employ-ment, as well as the future of trade. Whilst cars are not quite driving themselves yet, global trade has seen a dramatic shift in the way that we shop.“I am talking, of course, about e-commerce. Only a few years ago, we all went shopping in the “High Street” or the local shopping mall. Today we shop online and have purchases delivered right to our doorstep in a matter of days or even hours” said Steven Pope, Vice Presi-dent Customs & Regulatory Affairs, DHL Express Europe & Chair of the Customs Committee of the Global Ex-press Association, in a report being published in World Customs Journal.“E-commerce has completely transformed how we shop and also how we trade across borders, with a growth in single smaller shipments as opposed to bulk shipments in containers. This has brought great opportunities, and chal-lenges as well” added Steven.

Using Bar-Code Technology, a Shipment is tracked from Start to Finish Travelling across the Globe.

Blockchain Pro-vides a Greater Surge by Using Data to Ensure Safety of the Cargo During Im-portation Stages.

Using Techno-logical Advances to their Full-est Advantage, Requires Invest-ment, both from the Public and Private Sectors.

The File


At the Border, Goods may be Inspected by the Australian Border Force (ABF) for Compliance with Importation Requirements

an Australian Model to Enhance Tax NeutralityCollection through Vendors..

Volume of Air Cargo and Mail Parcels In-creased by 57%04

Following a decade of debate and several government studies, in 2015, the Council of Australian Governments (COAG), an inter-governmental forum, agreed to extend GST to low value imported goods, and in 2017, the Australian Government passed the Trea-sury Laws Amendment (GST Low Value Goods) Act 2017.The critical question was which collection model to use. It was addressed by the Austra-lian Government’s independent research and advisory body, the Productivity Commis-sion, which released a Report on Collection Models for GST on Low Value Imported Goods on 31 October 2017.GST is a component of Australian tax law, which is administered by the Australian De-partment of the Treasury and the Australian Taxation Office (ATO). The choice was, therefore, in the hands of these two authori-ties. In line with the Productivity Commis-sion’s recommendations, they opted for the Vendor Collection Model, which places the onus on overseas sellers to charge, collect and remit GST. This model was chosen as it enables tax neutrality between imported and domestically retailed low value goods to be improved, and because it was expected to have a minimal impact on consumers import-ing goods. This mod-el also has low ad-ministration costs.However, ensuring compliance can be difficult with businesses operat-ing in foreign juris-dictions. The ATO uses data matching,

conducts investigations, receives informa-tion from industry and the public, and uses import data to monitor compliance with the measure.Australia considered alternatives to this model, including:• the traditional or border collection model, which is the current model for collecting GST, Customs duties and other indirect tax-es on imports valued above 1,000 Australian dollars – the administrative and compliance costs significantly outweighed any revenue collected;• the transporter-based collection model, whereby the delivery agent collects the GST from the importer and then remits it – the administrative costs and compliance burden did not result in this being a feasible model;• the financial intermediary collection model, which would place the legal liability for GST collection on entities within Australia – the current payment systems do not collect suf-ficient information to assess a GST liability.The Productivity Commission concluded that the Vendor Collection Model was the most appropriate for the Australian envi-

ronment. It was adapted from the Australian Government’s ap-

proach to collecting GST on offshore supplies of

services and digital products to Austra-lian consumers.Importantly, the Australian model does not charge GST at the point of importation: GST is applied at the point

of sale on all low value imported goods

(excluding alcohol and tobacco products that are dealt with separately).An Australian consumer purchases goods online from an overseas market, which may be a merchant, online marketplace or rede-liverer. The transaction is conducted online, and GST is collected by the supplier at the “checkout,” providing the goods are valued equal to or less than 1,000 dollars. The sup-plier then sends the goods to the consumer and completes a self-assessed clearance dec-laration. The supplier also remits GST to the ATO.At the border, the goods may be inspected by the Australian Border Force (ABF) for com-pliance with broader importation require-ments. If no further action is required from the Customs process, the goods are sent on to the consumer.The Vendor Collection Model requires vendors, as well as electronic distribution platforms (EDPs) and redeliverers, to reg-ister with the ATO. Only foreign suppliers with taxable consumer sales to Australia of 75,000 dollars per year or more are required to collect and remit GST under the legislated model. However, EDPs that facilitate taxable sales to Australia of more than 75,000 dol-lars are required to collect GST on all sales of low value goods that occur on their platform, including by sellers with sales of less than 75,000 dollars.Under the legislated model, registered ven-dors, EDPs and redeliverers have the option of providing the ABF with details of their Vendor Registration Number and (where ap-plicable) the purchaser’s Australian Business Registration Number.To implement a change that affects global entities doing business with customers in Australia required the ATO to rethink cur-

rent business practices. The ATO partnered with global accounting entities, transporters, Customs brokers and peak bodies, such as trade associations. These entities’ position in the supply chain is significant, and assisted in developing the Vendor Collection Model that was implemented in Australia.The ATO co-hosted a number of webinars for offshore businesses, including a Chinese language presentation with more than 2,000 attendees. All major platforms and suppliers have registered and are complying with Aus-tralia’s GST requirements for collection and remittance.Operators have had to make changes to their payment systems to collect additional GST information and identify registered suppliers. Education for small overseas vendors is an ongoing challenge in the application, collec-tion and remittance of GST applied to goods.Collection of GST at the point of sale instead of at the border avoids trade flow disruptions, thereby minimizing compliance and admin-istration costs. This allows border agencies and transporters to focus on key activities. More importantly, domestic businesses ben-efit from a level playing field.The collection of GST on low value im-ported goods is still in its infancy. However, as highlighted in the Productivity Commis-sion Inquiry Report, another comprehensive review of the legislated model is due to be undertaken in 2023, which will consider:• the performance of the legislated model;• compliance rates, and if unsustainable, how to improve them; and• whether or not an alternative collection model, taking into account technological ad-vances and policy developments, may result in a greater benefit to the Australian Com-monwealth.

�� Sydney (Emirates Customs)

The growth of e-commerce has contributed to significant increases in the volumes of goods crossing Australia’s borders. Between 2013 and 2016, the volume of inbound air cargo and international mail parcels increased by 57%. Between 2017 and 2021, Australia expects a 30% year-on-year growth in air cargo, and the number of international mail parcels to double.One of the reasons why online shopping has become so popular lies in the fact that goods with a value of 1,000 Australian dollars or less imported into Australia were, until 1 July 2018, exempt from goods and services tax (GST). These types of goods are referred to as low value imported goods.As internet commerce grew, so had concern about the effects of the exemption. An increase in direct consumer imports of low value goods created concerns about the “competitive disadvantage for Australian retailers, im-paired tax neutrality, and the loss of revenue.”

Australian Model Does Not Impose Tax on Goods and Services at the Import Point, but at Sales Point

Operators Make Changes to the Payment Sys-tems to Collect Additional Infor-mation and Iden-tify Suppliers.

Collection of Tax at the Point of Sale Instead of at the Border Avoids Trade Flow Disruptions, and Minimize Administration Costs.

The File


05

The system Include a Platform Integrating Goods Control through Northern Corridor and Canceling Regional Seals for the 5 Countries.

Regional System Connects 5 African CountriesGoods Tracking..

Contributes in Cutting Transit Transport Time


The implementation of a real-time electronic cargo monitoring system to track goods transported in transit enables countries in East Africa to cut transit time, prevent cargo theft and boost revenue collectionIn the East African region, the management of transit operations across the five land-locked developing coun-tries of Uganda, Rwanda, Burundi, the Democratic Republic of the Congo and South Sudan was, for a long time, done via a convoy sys-tem, characterized by paper based controls, transit log sheets, physical escorts, and transit check points, stated a report by, Geofrey Balamaga, RECTS Project Manager, Customs Department Uganda Revenue Authority.As a result, along the North-ern Corridor connecting the five countries, the transit system was plagued by vari-ous problems that included, among others, unnecessary delays, a high cost of doing business, non-tariff barri-ers, transit diversion, high administrative monitoring costs, and poor (or non-) information-sharing between the partner States.

Real-Time Electronic Cargo Monitoring System“In 2013, Uganda Customs decided to im-plement a real-time electronic cargo moni-toring system to track goods transported in transit, and to ensure the integrity of con-signments. Other countries of the region soon adopted a similar system, resulting in each country having its own e-tracking sys-tem, applied to the same trader. The non-acceptance of foreign seals forced opera-tors to buy different seals along the transit route” said the report.In 2014, the authority in charge of manag-ing the Northern Corridor issued a Direc-tive requesting all partner States to harmo-nize the e-monitoring of transit, to enable the seamless flow of cargo. The Customs administrations of Kenya and Rwanda agreed to adopt Uganda’s electronic cargo monitoring system, which led to the launch in 2017 of a regional system called the Re-gional Electronic Cargo Tracking System (RECTS).The three administrations use this single platform, which enables them to have a single watch and view of cargo in the course of its movement along the Northern Corridor. Only one type of seal is used, which removes the need for arming and disarming the elec-tronic seals at part-ner States’ territo-rial borders. The devices have been jointly procured by the three Rev-enue Authorities.

Detection of ViolationsRECTS operates in real time, enabling any transit violations, such as going off route, seal tampering or breaking, to be detected.Every time such an incident occurs, an alert is sent to the central monitoring centres hosted in each country, and a rapid response team is sent to the scene. The teams have at their disposal fast vehicles and computer tablets to localize the violation scene with accuracy and precision.Additional TechnologiesThe tracking system will soon rely on auto-matic number plate recognition (ANPR) fa-cilities that have been installed at port gates, borders, and at several points on highways. Additional technologies are expected to be deployed to support the system, including:• “smart gates” to allow truck drivers to scan a barcode to a barcode reader machine, which then identifies the truck and cargo to be collected, and advises the latter on where to pick up the cargo;• CCTV camera systems at Customs sta-tions to improve transparency and the fight against corruption;

• sensors for trucks transporting pe-troleum products, which can

provide information on the product volume and the

integrity of the cargo.According to the re-port, not all cargo in transit is electroni-cally monitored, only cargo that has been identified by the three Customs authorities as very

high risk and sensi-tive. As of December

2018, about 21% of

the cargo in transit does so under the elec-tronic monitoring system.The benefits far outweigh the investment costs, on the part of both the government and the private sector. As opposed to the average transit time that has reduced from 4.5 days (2014) to 3.1 days (2018) for non-tracked cargo, the electronic monitoring sys-tem has seen a reduction in the average na-tional transit time for electronically tracked cargo correspondingly reduce from 1.9 days (in 2014) to 1.6 days( in 2018), posting an average transit time of 1.7 days.The above average savings of 2.07 days as a result of electronic tracking of cargo has translated into an estimated total savings in demurrage and physical escort per consign-ment of 311 US dollars at a rate of 100 dol-lars per day in demurrage and 50 dollars per physical escort.From July to December 2018 alone, just over 32,000 transit operations worth just un-der 370 million US dollars in revenue have been managed through the RECTS. Even if only 1% of this revenue was lost, for ex-ample, in cases of thievery or the diversion of cargo, the impact on revenue collection would be substantial.Several cargo thefts have been detected by Customs since the implementation of the RECTS, with most incidents occurring when trucks are climbing steep lanes or are parked in the night parking yard. In many cases, Customs responded fast enough to avert the theft.Plans are underway to deploy the RECTS in Tanzania and in the Democratic Republic of the Congo. This will enable Customs and tax administrations of the region to improve their control capacity and enforcement coor-dination, as well as make transit operations across the Northern Corridor seamless.

Electronic Moni-toring cut aver-age Transit Time for Electronically Tracked Cargo to 1.7 Days in 2018.

Over 32,000 Tran-sit Operations Worth just under 370 m US Dollars in Revenue have been managed within 6 Months of Application.

The File


�� Cairo (Emirates Customs)

Customs and Anti-drugs department in Damietta port, north Egypt, seized a massive quantity of can-nabis and drug pills com-ing from Syria. Egyptian sources said that «upon information and two confi-dential information submit-ted by the Inward General Administration in Damietta Customs Department and the General Administration of unti Customs Forgery in the eastern region that «H.T.» company attempt-ed to smuggle prohibited items within two contain-ers coming from Syria, mutual committee has been formed for inspection and checking». Sources added that «by inspection of the first con-tainer, we found 2400 pack-age weighing 480 kg of cannabis and 5 mil-lion 498 thousand captagon pills concealed under apple fruits and the second container; 6930 package weighing one ton and 386 kg of cannabis».

�� Beijing (Xinhua )

Data released by the General Au-thority of Customs that Chinese Customs, all over the country, investigated 604 criminal cases pertaining to drugs smuggling last year resulting in confiscating 47.5 ton of various drugs and chemical drugs. Out of the 604 cases, 596 crimes related to drugs smuggling where-as total quantity of 4.61 ton was confiscated including heroin, co-caine, methamphetamines and cannabis, according to the General Authority of Customs. As well, data revealed that a total number of 400 persons suspected in smuggling drugs were arrested and arresting 70 gang of smug-gling and trafficking in drugs. During the first months of this year, Customs investigated, on national level, in 284 drugs smug-gling incidents and confiscated 567.35 kg of marijuana, heroin, cocaine, methamphetamines and other drugs.

�� Amman (Emirates Customs)

Jordan Customs key staffs oper-ating in Jaber Customs center, in cooperation with drugs and secu-rity authorities, during last week of June aborted two attempts for smuggling 19 thousand of «lyrica» pills and 9 thousand of tramadol.The department said in press re-lease that the operation was con-ducted by precise inspection of private car (Bahhara) coming to the Kingdom, it was concealed within car body in a secret place designed specially for smuggling purpose. Relevant to this, operating staffs in Queen Alia International Air-port – passengers, seized a sig-nificant quantity of e-cigarettes and their accessories of about

700 piece, 5500 accessories and 150 cigarette flavors. The department pointed out that the mechanism of seizure was carried out through precise in-spection and electronic screen-ing of passengers in transit to an adjacent country and by using X-Ray device, it estimated resulting fine by JD 30 thousand.Seizure report of seized quantity and its confiscation is prepared and afterwards the cases were referred to Customs Public Pros-ecutor to take necessary legal ac-tions. Customs General Manager, Dr. Gen. Abdul Majid Alrahmana emphasized the significance of department role in all centers to capture smuggling attempts and prevent entering smuggled goods of all types through border ports.

�� Amman (Emirates Customs)

Jordanian Customs started implementing new price list of indicative customs tariff on new garments imported from China, it included a rise of a number of them unevenly with a ceiling of 10%. Garments merchants syndicate chief, Muneer Deyah, mentioned that a number of garments failing under such rise namely «men shirts, men suits, women sharia garments, jeans and linen trousers for men and

women.The list gained acceptance after forming mutual com-mittee comprising garments, textiles, shoes mer-chants and the Customs Department, the latter has been working on the list a year ago. Deyah added that the garments under the rise resolu-tion is currently available as manufacturers pressure resulted in this rise, and highlighted that the reflection of the new price list upon citizens will be limited to those items under such rise and in nominal ratios. Nevertheless, he affirmed that the similarity of new list price with its predecessor, effective 2009 through 2018 but updates were appended to keep abreast with such years variations in addition to expansion in the garments covered by the indicative circular.

�� Kuala Lumpur (Emirates Customs)

Malaysian authorities confirmed seizing more than 5 thousand turtles that were smuggled in boxes in Kuala Lumpur airport. Customs Deputy Director; Zul Quarnain Mohamed Yousef, in Malaysian capital airport, pointed in press release to media that Customs team arrested two Indians in the airport after detecting group of plastic baskets containing 5255 turtle of «red eared» turtle specie, amphibious turtles – most prevail-ing animal turtles- and they live in sweet water as rivers, lakes and moors. Notably that the «red eared» turtles are of the most popular turtles in pets trade as they are vastly owned and families are longed to them for breeding, according to International Union for Conservation of Nature, Malaysia is a key transit point for wildlife trading to other Asian countries.

�� Rabat (Emirates Customs)

Revenues of customs and indirect taxes in the Kingdom of Morocco recorded 6.4% increase in customs revenue proceeds during 2018 as compared to 2017, revenues jumped over the ceiling of MAD 100 billion. A report issued by the department upon the achievements it attained during 2018 revealed that MAD 100.8 billion were collected from fees and taxes representing net surplus of MAD 1.6 billion. The report illustrated that these rev-enues benefit the national economy as a whole through funding state public budget and deducting some revenues to be deposited in treasury accounts or transferring them to public institutions. The source emphasized that Cus-toms and Indirect Taxes Depart-ment, in addition to its contribu-tion to 40% of Kingdom›s public budget representing MAD 94.5 in 2018, it reinforces its position as a prominent contributor to the public budget.

�Michigan (Emirates Customs)

American borders official said they seized ancient Egyp-tian mummies covers during law enforcement operations by blue water bridge link-ing Michigan and Ontario in Canada. USA Authority of Customs and Borders Protection an-nounced that its workforce arrested group of five tractors carrying ancient pieces found on last May 25th on Canadian post truck. The truck was de-cided to be inspected in a ter-minal near Marci veil, Michi-gan. Officials said they worked with Antiques Authority, situ-ated and having its borders in Washington, that the antiques belong to BC ptolemaic fam-ily. Authorities said they in-tend to return the antiques in near future and working on identifying the criminally re-sponsible.

Egypt

Malaysia

Jordan

China

Morocco

USA

Seizing drugs in Syrian ap-ple shipment

Confiscation of 37.5 tons of drugs

Customs seize drugsand e-cigarettes

Chinese Jeans and linen to rise up

Aborting 5000 attempts for smuggling«red eared» turtles

MAD 100 bil-lion, customs revenue

Customs seizes Egyp-tian mummy covers


Around the World

Year Themes at a GlanceEach year, the WCO Secretariat chooses a theme that is relevant to the international Customs commu-nity and its partners. The slogan cho-sen for 2019 is “SMART borders for seamless Trade, Travel and Trans-port.” An apt theme as the world in-creasingly moves towards working smarter, using smart technologies, setting smart goals, and even living in smart cities.Under this year’s banner, WCO Members are encouraged to look at how they can strengthen their en-deavour to facilitate trade and travel, whilst mitigating threats inherent in the cross-border flows of goods, people, and means of transport. Our “SMART” acronym stems from the following guiding principles: Secure, Measurable, Automated, Risk Man-agement-based, and Technology-driven.“Secure,” refers to our efforts to se-cure and facilitate legitimate trade. The rapid and safe movement of people and goods across borders en-courages trade, travel and transport, and Customs has the dual task of fa-cilitating this flow while securing it. This is no easy task, but Customs is focused and determined to achieve its goal.Alongside security, we are promoting a “Measurable” performance-based

culture that rests on self-evaluation and objective measurement. Mea-suring performance is essential for well-conceived decisions that can be easily implemented and evaluated. Customs has certainly embraced this culture and is continuing to ensure its effective implementation on a daily basis.Being smart invariably refers to the need for Customs to develop, use and implement solutions that are “Auto-mated.” In the pursuit of a less cum-bersome border environment where data is mined, shared and effectively analysed, Customs should rely on automated processes. This is anoth-er area where Customs is steaming

ahead with its tailor-made reform and modernization programmes.Adopting a “Risk Management-based” approach is key to all modern Customs processes, and requires ad-ministrations to invest in data analy-sis and develop efficient profiling techniques based on modern meth-ods and tools such as predictive ana-lytics or biometrics.Again, Customs is not holding back as more and more WCO Members acknowledge the importance of us-ing risk-based methods.This leads us to the last word of our acronym, “Technology-driven.” Customs should relentlessly pursue further studies and carry out further proof of concept exercises to explore the use of emerging technologies in order to stay on top of things. Block-chain and artificial intelligence, for example, are now being put to good use. Customs is looking into these new technologies, but we still need more experience sharing in these ar-eas.To take our annual theme forward, for the dossier of this edition of the magazine, we invited various people to share information on initiatives and related projects that contribute to creating SMART borders.The idea is, as always, to highlight any challenges faced, to showcase

those projects that will inspire oth-ers, and, of course, to communicate best practices. Indeed, I am sure you will agree that we have achieved our objective once you get into some of the articles.Global customs administrations have successful experiences in the appli-cation of smart borders in its broader meaning. One of these experiences, is by Serbia Customs on the digita-lization of its transit procedure, and in parallel with its computerization process, the essential accompanying procedures and legal enhancements implemented to secure transit opera-tions, whilst granting simplifications to operators who fulfilled certain criteria. Still on transit, Uganda Cus-toms explains how the implementa-tion of a real-time electronic cargo monitoring system to track goods in transit enables countries in East Af-rica to cut transit time, prevent cargo theft, and boost revenue collection.Promoting authorized economic operator (AEO) programme, imple-mented by Brazil Customs, is an im-portant model in this domain. It has an impact, in terms of trade facilita-tion, and the efforts made to attract other border agencies to participate in it. Burkina Faso Customs then explains how it established an advance ruling

mechanism on tariff classification, and how it was able to undertake a Time Release Study thanks to sup-port received from the WCO in the areas of project management and stakeholder engagement.The WCO’s initiative on Small Island Economies (SIEs) is aimed at raising awareness about the challenges and peculiarities of Customs services op-erating in these SIEs, and providing tailor-made capacity building and technical assistance to help them bet-ter integrate into global value chains, while effectively curbing illicit trade and smuggling.To better understand the issue, Mau-ritius Customs gives us an overview of the specificities of their economy and its trade flows, identified areas of change, and the measures and initia-tives taken to increase efficiency and reduce trade costs.Alternate models for collecting du-ties and taxes on low-value imports of goods, have also been discussed at length over the past few months. Drawing on this, the Australian De-partment of Home Affairs explains the work done on implementing its new Vendor Collection Model that the country has put in place to collect GST on such goods.Blockchain technology is another topic that is receiving a lot of atten-

tion lately. Korea Customs takes the opportunity to present the pilot proj-ects that have been carried out to un-cover any technical and institutional challenges, and formulate ways to steadily integrate the blockchain into existing Customs systems.In the years to come, technology will continue to play an ever-increasing role in supply chain integrity. Ac-cording to DHL, if the express in-dustry is data rich, supporting a log recording the journey of a shipment, which assures its integrity along the supply chain, this goldmine of in-formation is not as valuable unless there are standardized platforms for Customs to collect and interpret this data. The International Air Transport Association also calls for the devel-opment of standards around data sharing on the web, while presenting ONE Record, the next milestone in the digitalization of air cargo data.In wrapping up, I would like to sin-cerely thank all the contributors to this dossier, as well as all the other contributors to the magazine who took the time to share their experi-ences with us on various Customs and international trade issues. It has been our pleasure to produce another edition of the WCO’s flagship maga-zine, and we trust that you will enjoy reading all the insightful articles.

Kunio Mikuriya Secretary General, WCO


Free Zone

The Meeting is renewed

Mohamed JumaBuosaiba

Emirates experience in controlling drugs is a globally pioneer practice in control-ling this dangerous epidemic threatening communities and states’ task force name-ly youth.The significance of Emirates experience underlies in the magnitude of attained success day after day in controlling this phenomenon, fatally blowing worldwide smuggling gangs and blocking off them from Emirates borders. The significance of this practice is rep-resented in its reliance on exhaustive combat strategy comprising all effective entities and components within state in this domain stemming from the fact that drugs control is a community wide con-cern not merely certain entity, notably that the Ministry of Interior, local police institutions, Customs Sector, Drugs Con-trol Council, Borders Guards and other concerned institutions. Emirates practice in drugs combat fea-tures professionalism, efficiency and ad-vancement which reflects the elite perfor-mance of various competent institutions in the country and pro-activity through series of pro-active hurtful strikes to smuggling gangs and accordingly, pre-cluding contact between targeted com-munity categories and drugs and incur-ring such gangs sever losses amounting millions of dollars. Furthermore, Emirates practice is not limited to local territory but crossed the borders to effectively contribute to combating this phenomenon globally by

backing cooperation with world orga-nizations, exchanging information and notifications on smuggling operations with a number of countries in the region and the world which resulted in seizing many considerable smuggling operations worldwide and lofted up state ranking and role in this area. Efforts exerted by state institutions lo-cally and globally have undoubtedly con-tributed to achieve drugs control strategy i.e. promoting the level of “Security and customs deterrence” in the state, in other words, security and customs workforce diligence rendered smuggling gangs thinks thousand time prior directing their operation towards Emirates and its youth after the hurtful strikes punched by secu-rity and customs workforce in Emirates. In this context, worthy to point out the pivot role played by customs sector in the state represented by the Federal Customs Authority and local customs departments in confronting drugs lesion, such role emerges from its national responsibility and being first line of defending national security and stability, which is reflected in customs sector contribution in drugs seizure indicator, approved by the cabi-net, 39% in 2018 to go 5% beyond tar-get. As well, growth rate of drugs seizure, carried out by customs sector, amounted to 47% during last three years. On the occasion of UAE celebration of World Anti-Drugs Day, whose anniver-sary coincides 26th June, we should be proud of our national calibers and our sons customs inspectors and honor their diligence and devote in serving the coun-try from the gangs of evil and organized crime. We also feel proud of our partners from security and drugs control con-cerned institutions in the state for their fruitful and constructive cooperation and their endeavors in this domain. We promise our prudent leadership and our precious country that we will be ever maintaining our covenant and commit-ment and shall fulfill our promise to siege and eradication of this lesion to protect our youth and country and to support our leading development journey.

Drugs control .. forerunningnational practice

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