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1 Trade facilitation: Benefits and Capacity Building for Customs UNECE International Forum on Trade Facilitation, 14-15 May 2003 Kunio Mikuriya Deputy.

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Presentation on theme: "1 Trade facilitation: Benefits and Capacity Building for Customs UNECE International Forum on Trade Facilitation, 14-15 May 2003 Kunio Mikuriya Deputy."— Presentation transcript:

1 1 Trade facilitation: Benefits and Capacity Building for Customs UNECE International Forum on Trade Facilitation, May 2003 Kunio Mikuriya Deputy Secretary General World Customs Organization

2 2 Structure of presentation Customs role in achieving benefits for all from trade facilitation Customs role in achieving benefits for all from trade facilitation New security initiatives in the context of existing efforts for trade facilitation New security initiatives in the context of existing efforts for trade facilitation A Customs capacity building strategy to promote Customs modernization A Customs capacity building strategy to promote Customs modernization

3 3 Doha call for trade facilitation A progress in the WTO review on the relevant GATT Articles A progress in the WTO review on the relevant GATT Articles Political will and commitment Political will and commitment Cooperation from the trade Cooperation from the trade Realignment of resources to Customs Realignment of resources to Customs Modernization and reform of Customs Modernization and reform of Customs Coordinated intervention with other border agencies, including Single Window Coordinated intervention with other border agencies, including Single Window

4 4 Complementary nature between WTO and WCO WTO rules set out high principles WTO rules set out high principles WCO instruments provide implementation tools for WTO high principles WCO instruments provide implementation tools for WTO high principles All WCO instruments are compatible with and complementary to the GATT articles All WCO instruments are compatible with and complementary to the GATT articles The revised Kyoto Convention and its guidelines provide the basis and practical guidance and information for the implementation The revised Kyoto Convention and its guidelines provide the basis and practical guidance and information for the implementation Offer solutions to meet legitimate goals of revenue collection and social protection, while delivering trade facilitation dividends Offer solutions to meet legitimate goals of revenue collection and social protection, while delivering trade facilitation dividends

5 5 Core principles of the revised Kyoto Convention Transparency and predictability Transparency and predictability Standardization and simplification Standardization and simplification Maximum use of information technology Maximum use of information technology Minimum necessary control to ensure compliance Minimum necessary control to ensure compliance Risk management for facilitation and control Risk management for facilitation and control Fast track procedures for traders with good compliance record (authorized traders concept) Fast track procedures for traders with good compliance record (authorized traders concept) Cooperation and partnership with all stakeholders Cooperation and partnership with all stakeholders Also addressing integrity

6 6 Supporting initiatives WCO Customs Data Model to establish standard data sets and electronic format WCO Customs Data Model to establish standard data sets and electronic format Unique Consignment Reference (UCR) concept with a common reference number for better tracing of the entire logistical chain and facilitation Unique Consignment Reference (UCR) concept with a common reference number for better tracing of the entire logistical chain and facilitation Memoranda of Understanding (MOU) programme Memoranda of Understanding (MOU) programme Time Release Study Time Release Study Facilitation and effective control Facilitation and effective control

7 7 WCO instruments enhanced by the WTO work Draw attention of the international community as available tools for trade facilitation Draw attention of the international community as available tools for trade facilitation The revised Kyoto Convention already ratified by the 14 members The revised Kyoto Convention already ratified by the 14 members The European Council (March 2003) and the US Presidents approval (May 2003) upon the completion of administrative procedures The European Council (March 2003) and the US Presidents approval (May 2003) upon the completion of administrative procedures Incorporation of Kyoto principles in the national legislation Incorporation of Kyoto principles in the national legislation Upgrade of Kyoto IT guidelines in March 2003 Upgrade of Kyoto IT guidelines in March 2003

8 8 Security initiatives and trade facilitation A common global concern: multilateral approach in consistency with bilateral and regional approach A common global concern: multilateral approach in consistency with bilateral and regional approach WCO Resolution on Security and Trade Facilitation of International Trade Supply Chain (June 2002) WCO Resolution on Security and Trade Facilitation of International Trade Supply Chain (June 2002) Security and facilitation: two sides of the same coin, efficient and effective Customs procedures Security and facilitation: two sides of the same coin, efficient and effective Customs procedures Resolution: risk management, advance electronic transmission of Customs data, cooperation with the private sector etc. measures contained in the existing WCO instruments Resolution: risk management, advance electronic transmission of Customs data, cooperation with the private sector etc. measures contained in the existing WCO instruments Implementation of the revised Kyoto Convention Implementation of the revised Kyoto Convention

9 9 Extended Customs attention to the entire supply chain Security undertaken as early as possible Security undertaken as early as possible Risk management based on information supplied at the early stage Risk management based on information supplied at the early stage A secure and authorized supply chain A secure and authorized supply chain Mutual recognition of authorized traders Mutual recognition of authorized traders Predictability, less opportunity for theft and pilferage and increased opportunities for facilitation of business Predictability, less opportunity for theft and pilferage and increased opportunities for facilitation of business Risks associated with all types of security, including economic and revenue security Risks associated with all types of security, including economic and revenue security Integrated with efforts to intercept prohibited goods, such as illicit drugs, counterfeit products, funding sources for organized criminal and terrorist groups Integrated with efforts to intercept prohibited goods, such as illicit drugs, counterfeit products, funding sources for organized criminal and terrorist groups

10 10 WCO Task Force with active participation of trade and transport Re-examination of the Customs Data Model to ensure it includes the necessary data elements to identify high-risk goods Re-examination of the Customs Data Model to ensure it includes the necessary data elements to identify high-risk goods Development of guidelines for a legal and other procedural basis to enable the advance electronic transmission of Customs data: Customs Guidelines on Advance Cargo Information, a multilateral instrument on Mutual Administrative Assistance and Guidelines for national laws Development of guidelines for a legal and other procedural basis to enable the advance electronic transmission of Customs data: Customs Guidelines on Advance Cargo Information, a multilateral instrument on Mutual Administrative Assistance and Guidelines for national laws Development of guidelines for cooperation between Customs and private industry Development of guidelines for cooperation between Customs and private industry Delivery at the June Council sessions

11 11 Longer-term aspects of the Resolution Promotion of the security and facilitation tools Promotion of the security and facilitation tools Identification of Customs needs in establishing a supply chain security regime Identification of Customs needs in establishing a supply chain security regime Identification of potential donors Identification of potential donors Development of Customs techniques and implementation of procedures Development of Customs techniques and implementation of procedures Development of databank on advanced technology Development of databank on advanced technology

12 12 Capacity building Development of a Customs Capacity Building Strategy Development of a Customs Capacity Building Strategy A business case for well designed and targeted capacity building investment on improving efficiency and effectiveness of Customs A business case for well designed and targeted capacity building investment on improving efficiency and effectiveness of Customs A comprehensive and long term approach A comprehensive and long term approach Significant dividends for governments, donors and the private sector Significant dividends for governments, donors and the private sector Development opportunities provided by the global trading system Development opportunities provided by the global trading system Effective revenue mobilization, facilitate trade and investment, good governance, community protection Effective revenue mobilization, facilitate trade and investment, good governance, community protection Failed cases of past capacity building initiatives Failed cases of past capacity building initiatives One size fits all solutions do not work One size fits all solutions do not work

13 13 Customs Capacity Building Strategy The case for comprehensive capacity building in Customs The case for comprehensive capacity building in Customs What capacity building means in the Customs context, by identifying the key principles of the revised Kyoto Convention as basis, including safeguarding integrity What capacity building means in the Customs context, by identifying the key principles of the revised Kyoto Convention as basis, including safeguarding integrity Lessons learned from the previous capacity building initiatives Lessons learned from the previous capacity building initiatives Capacity building needs and challenges (survey outcome) Capacity building needs and challenges (survey outcome) Roles and responsibilities of potential stakeholders and partners Roles and responsibilities of potential stakeholders and partners A standardized and comprehensive diagnostic tool A standardized and comprehensive diagnostic tool

14 14 Strategys targeted audience Response to the Doha Declaration underlining the commitment for capacity building in trade facilitation Response to the Doha Declaration underlining the commitment for capacity building in trade facilitation Contribution to the Cancun Ministerial in September Contribution to the Cancun Ministerial in September Response to the Resolution on supply chain initiatives Response to the Resolution on supply chain initiatives Customs administrations and all stakeholders to mobilize all available resources Customs administrations and all stakeholders to mobilize all available resources

15 15 Cooperation among stakeholders Enhanced partnership with the private sector Enhanced partnership with the private sector Joint and well-coordinated intervention with other border agencies Joint and well-coordinated intervention with other border agencies Better coordination with other international and regional organizations Better coordination with other international and regional organizations Avoid unnecessary duplication Avoid unnecessary duplication For more information: For more information:


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