WCO Trade Facilitation and Capacity Building: WCO Trade Facilitation and Capacity Building Ray Mc Donagh Deputy Director World Customs Organization GFP Feb 2005


Issues: Issues Customs Capacity Building Diagnostic Framework Self Assessment Checklist: GATT Articles V, VIII, X Time Release Study


Potential Benefits of WTO Work: Potential Benefits of WTO Work Political will for Customs reform Support and co-operation with trade community Awareness of Customs requirements and improved compliance Co-operation with other border agencies Impetus for capacity building WTO to provide a framework of cross-cutting trade issues and co-ordination for specialized international organizations and initiatives


International Customs community’s Message to the 2003 WTO Ministerial Conference: International Customs community’s Message to the 2003 WTO Ministerial Conference Participation of Customs administrations in preparing national positions Enhanced co-operation in the work of WCO and WTO Involvement of other border agencies Need full support for the Customs capacity building efforts


Customs Capacity BuildingDiagnostic Framework: Customs Capacity Building Diagnostic Framework Lesson learned, one size does not fit all A comprehensive and standardized diagnostic tool and project design / implementation guide For practitioners and self-assessment Diagnostic questions, commonly observed weakness, possible solutions and improvement options, reference material Reference to pertinent WCO instruments


Self Assessment Checklist: Self Assessment Checklist Relates to GATT Articles V, VIII, X Snapshot of customs in relation to each Article Addresses legal aspects, systems and procedures, IT, co-operation, strategic management, resources, etc Based on Diagnostic Framework Customs aspects only; but could apply to OGA’s


Slide7: Self Assessment Checklist (image)


Core Principles of Revised Kyoto Convention: Core Principles of Revised Kyoto Convention Higher transparency and predictability Standardized and simplified documents Minimum requests and intervention Divorce of release from clearance Use of risk management Specially simplified procedures for authorized traders Maximum use of information technology Co-operation with other agencies and foreign counterparts Partnership with the trade


Slide9: WCO Complements WTO GATT 1994 Article V- Freedom of Transit Article VIII – Fees/ Formalities Article X – Publication & appeals WCO (Kyoto) Effective rules for transit procedures Fees limited to the cost of services rendered Simplified procedures and limited data requirement Publication of regulations Appeals High Principles Compatible & Complementary Tool to implement WTO Principles


Security concerns: Security concerns Customs mission after terrorist attacks High expectation for customs on trade security Scope extended to the entire supply chain incl. export Risk assessment using advance electronic information to identify high-risk cargo Security checks as early as possible, before export Enhanced cooperation with border agencies / trade Need for global cooperative arrangements Avoid different and conflicting national approaches Complementary to regional, bilateral initiatives Avoid the marginalization of developing countries - CB Trade facilitation for legitimate trade Efficient & effective customs procedures


Time Release Study: Time Release Study To measure the average time between the arrival and the release of goods – and each intervening agency To determine the efficiency of customs clearance Identify delays and reasons for delays Software available soon – in co-operation with World Bank


Time Release Study (image) : Time Release Study (image)


Benefits of TRS: Benefits of TRS Addresses the concerns of Trade regarding delays in Customs clearance Responds to Trade trends of Just-in-Time inventory control where time taken for the clearance of goods plays a major role Indicates the time taken by other Agencies in the clearances of goods


Possible Outcomes: Possible Outcomes Restructuring within the Administration Draft or modify Customs or related Legislation Simplify Customs procedures Automate Customs procedures Reallocate resources Support requests for resources Initiate measures to improve enforcement or detection Resolve matters with other Agencies involved in the clearance of goods


Thank You: Thank You Ray Mc Donagh Deputy Director World Customs Organization Rue du Marché 30, 1210 Brussels Tel : + 322-209-9341 Fax: + 322-209-9493 e-mail: Ray.mcdonagh@wcoomd.org