WCO Objectives, Trade Facilitation WCO Objectives, Trade Facilitation and Modernized Customsand Modernized Customs

European Parliament European Parliament –– IMCO IMCO Session 1 Session 1 –– Enhancing CompetitivenessEnhancing Competitiveness

16 June 201116 June 2011

Susanne AignerDeputy Director

Compliance and Facilitation

The WCO Mission StatementThe WCO Mission Statement

To enhance the effectiveness andefficiency of Customs administrations

…by improving their ability to

economic prosperity and social development

Apply trade regulations &

facilitate trade

Protect Protect society society

Collect revenue

Copyright © 2010 World Customs OrganizationCopyright © 2010 World Customs Organization

...which promotes...which promotes

Key ChallengesKey Challenges

Doha Round stalemate

Facilitate and Secure supply chains

Recurring natural disasters and trade recovery

Terrorism, piracy, security

Environmental protection

IPR infringements

Trans-national organized crime (eg: money laundering)

Food crisis/Financial crisis

Displaced persons/people trafficking

Key ActivitiesKey Activities

Trade FacilitationTrade Facilitation

Efficiency of CustomsEfficiency of Customs

Holistic approach to end to end supply chainsHolistic approach to end to end supply chains

Technology, Use of modern toolsTechnology, Use of modern tools

Cooperation with trade and other agencies Cooperation with trade and other agencies (CBM, Customs(CBM, Customs--Trade Partnerships)Trade Partnerships)

Promotion of Mutual RecognitionPromotion of Mutual Recognition

Capacity Building in support of activitiesCapacity Building in support of activities

*

Approved as the future Customs roadmap (2008 June Council)

10 building blocks for C21

CBM, GNC and RM as means to mitigate transport bottlenecks

Revised Revised Kyoto Kyoto ConventionConvention

International Convention on the simplification and harmonization of Customs procedures (Revised Kyoto Convention, adopted in 1973, revised in 1999

75 Contracting Parties (promotion priority and accession process ongoing in many countries)

Blueprint for Modern Customs procedures effective controls (risk management, audit based

control, Coordinated intervention, pre-arrival declaration)

facilitate legitimate trade (standardization, simplification, transparency, predictability, use of IT, trade partnership)

Revised Kyoto Convention (RKC)Revised Kyoto Convention (RKC)

Relevance for implementation of future WTO Trade Facilitation Agreement (jointly with other instruments)

BetterBetter management of Customs servicesmanagement of Customs services

FasterFaster clearance and clearance and lessless transaction transaction costcost

IncreasedIncreased revenue revenue throughthrough increasedincreased tradetrade volume and volume and integrationintegration of of informalinformal tradetrade

PromotePromote foreignforeign direct direct investmentinvestment (as efficient border (as efficient border proceduresprocedures are one of the are one of the decidingdeciding factorsfactors))

Certification as Certification as havinghaving international good practice international good practice ((«« announcementannouncement effecteffect »»))

Participation in future standard Participation in future standard makingmaking (right to vote)(right to vote)

Benchmark of Benchmark of successfulsuccessful capacitycapacity building/building/donorsdonors supportsupport

Benefits of RKC implementationBenefits of RKC implementation

Revised Kyoto Convention (RKC)Revised Kyoto Convention (RKC)

Core provisions and definitions of general application to all Core provisions and definitions of general application to all Customs procedures in ten Chapters of the Customs procedures in ten Chapters of the General AnnexGeneral Annex -- obligatoryobligatory

Specific AnnexesSpecific Annexes contain Chapters relating to specific contain Chapters relating to specific procedures (25) procedures (25) -- optionaloptional

Implementation period for Standards/Recommended Implementation period for Standards/Recommended Practices (3 years) and Transitional Standards (5 years)Practices (3 years) and Transitional Standards (5 years)

Detailed GuidelinesDetailed Guidelines containing information forcontaining information for-- the the interpretationinterpretation of the of the provisionsprovisions-- the the implementation of the provisionsimplementation of the provisions-- mmethodsethods of application and best practicesof application and best practices

Transparency and predictabilityTransparency and predictability-- Rules for providing informationRules for providing information-- Clear and transparent appeal proceduresClear and transparent appeal procedures(Customs, independent authority, courts)(Customs, independent authority, courts)

Standardization and simplification of goods Standardization and simplification of goods declaration and supporting documentsdeclaration and supporting documents-- Minimum data requirementsMinimum data requirements-- Provisional / Incomplete Goods DeclarationProvisional / Incomplete Goods Declaration-- Submission by electronic meansSubmission by electronic means

Simplified procedures for all operatorsSimplified procedures for all operatorsSeparatingSeparating release release fromfrom clearance clearance proceduresprocedures

““Fast trackFast track”” procedures for authorized persons with procedures for authorized persons with good compliance records such as : release of good compliance records such as : release of goods with minimum information to identify goods with minimum information to identify goods (with subsequent declaration)goods (with subsequent declaration)

Key Principles of RKC (I)Key Principles of RKC (I)

““

PrePre--arrival information (parrival information (priorrior lodgement and registration of the lodgement and registration of the Goods declaration and supporting documents Goods declaration and supporting documents –– cargo cargo declaration) declaration)

Maximum use of information technology Maximum use of information technology -- Use of international standardsUse of international standards-- Consultation of all relevant parties when introducingConsultation of all relevant parties when introducing

computer applicationscomputer applications-- Electronic commerce methods as an alternative to paperElectronic commerce methods as an alternative to paper--

based requirementsbased requirements

Juxtaposed Customs office and joint controlsJuxtaposed Customs office and joint controls

Coordinated intervention/Inspection with other border agenciesCoordinated intervention/Inspection with other border agencies

Partnership with the tradePartnership with the trade -- Formal consultative relationshipsFormal consultative relationships -- Memoranda of Understanding (MOU)Memoranda of Understanding (MOU)

Key Principles of RKC (II)Key Principles of RKC (II)

Minimum necessary controls to ensure complianceMinimum necessary controls to ensure compliance

Risk managementRisk management-- Identify high risk consignments based on risk analysisIdentify high risk consignments based on risk analysis

(intelligence)(intelligence)-- Shift from documentary and physical checks to targetedShift from documentary and physical checks to targeted

checkschecks-- Facilitation of legitimate trade while maintainingFacilitation of legitimate trade while maintaining

effective controleffective control-- Effective and efficient deployment of Customs resourcesEffective and efficient deployment of Customs resources

Audit based controlsAudit based controls -- PostPost--clearance auditclearance audit

Key Principles of RKC (III)Key Principles of RKC (III)

Other relevant WCO TF Instruments Other relevant WCO TF Instruments

The SAFE Framework of Standards to secure and facilitate global trade

The WCO Data Model (Vers 3)

Single Window Compendium

Risk Management Compendium

Istanbul/ATA Convention

Time Release Study

Immediate Release Guidelines

Activities to support Coordinated Border Management

C21 Building Blocks

The SAFE Framework of Standards to The SAFE Framework of Standards to Secure and Facilitate Global TradeSecure and Facilitate Global Trade

SAFE ObjectivesSAFE Objectives

Copyright Copyright ©© 2011 World Customs2011 World CustomsOrganization. All rights reserved. Organization. All rights reserved.

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•• Certainty and predictability Certainty and predictability at a global level at a global level

•• Integrated supply chain Integrated supply chain management for all management for all transport modes transport modes

•• Allow Customs to meet the Allow Customs to meet the challenges and challenges and opportunities of the 21st opportunities of the 21st Century Century

•• Closer cooperation among Closer cooperation among Customs and with Customs and with OGAsOGAs

•• Stronger CustomsStronger Customs--toto-- Business cooperationBusiness cooperation

•• Tangible benefits for Tangible benefits for businesses businesses

•• Seamless movement of Seamless movement of goods goods

The SAFE Framework of StandardsThe SAFE Framework of Standards

Establish standards that provide supply chain Establish standards that provide supply chain security and facilitation to goods being traded security and facilitation to goods being traded internationally;internationally;

Enable integrated supply chain management for all Enable integrated supply chain management for all transport modes;transport modes;

Strengthen networking arrangements between Strengthen networking arrangements between Customs administrations to improve their capability Customs administrations to improve their capability to detect highto detect high--risk consignments;risk consignments;

Promote coPromote co--operation between Customs and operation between Customs and Business;Business;

Champion the seamless movement of goods through Champion the seamless movement of goods through secure international trade supply chains;secure international trade supply chains;

Importance of SW and CBM.Importance of SW and CBM.

Thank you for your attention

For more information

www.wcoomd.org

Susanne.Aigner@wcoomd.org