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Delivering Trade Facilitation Customs Modernisation An Essential Component for Effective Border Management Workshop on Trade Facilitation and Aid for Trade.

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Presentation on theme: "Delivering Trade Facilitation Customs Modernisation An Essential Component for Effective Border Management Workshop on Trade Facilitation and Aid for Trade."— Presentation transcript:

1 Delivering Trade Facilitation Customs Modernisation An Essential Component for Effective Border Management Workshop on Trade Facilitation and Aid for Trade 12-13 March 2009, Addis Ababa Trevor Simumba - Senior Advisor- Customs & Trade Facilitation Valentina Mintah – Senior Solutions Specialist –Public Finance Management IT

2 Foundation’s social and developmental objectives Owned by The Crown Agents Foundation Permanent Members Elected Members Crown Agents Profit

3 Crown Agents World Wide Over 40 offices worldwide Europe and Former Soviet Union: AlbaniaAzerbaijan BosniaBulgaria DenmarkGeorgia KyrgyzstanMacedonia Romania Ukraine Russia United Kingdom Africa: AngolaMozambique Sudan EthiopiaNigeriaTanzania GhanaRwandaUganda KenyaSierra Leone Zambia Malawi Zimbabwe Americas/Caribbean: Bahamas USA Miami USA Washington Asia: Afghanistan Bangladesh India Japan Malaysia Pakistan Philippines Singapore Vietnam Australasia: New Zealand Middle East: Iraq Jordan United Arab Emirates Yemen

4 What is Trade Facilitation? The simplification, harmonisation, standardisation, and modernisation of trade procedures* in the interests of reducing transaction costs between government and business. *Trade Procedures being understood as activities, practices and formalities associated with the administration of the transference of goods and services across national borders.

5 Trade Facilitation Legal and Policy Framework Operational Components Integrated Border Management (IBM) Single Window Risk-Based Controls Simplified Procedures Regulatory Transparency Harmonisation Efficient MIS Application of International Standards Government – Business Dialogue Service-Level Agreements World Trade Organisation GATT Articles V, VII, and X Doha Round TF dossier United Nations UNECA, UNCEFACT, UNCTAD World Customs Organisation Kyoto Convention, SAFE Framework of Standards Regional Institutions EU, COMESA, ECOWAS, SADC/SACU NAFTA, Mercosur, ASEAN, etc.

6 The Challenges for Customs Administrations Striking the right balance between trade facilitation, customs control and security  Need for greater mutual understanding between public and private sectors, based on genuine partnership and consultation  To increase awareness by public authorities of the wider impact their actions have upon international supply chains and its consequences for the wider economy  To adopt an inter-agency ‘single window’ operational approach – Integrated Border Management  Move away from transaction based control systems to audit-based whole trader control - ‘trusted trader’  To fully take into account business practices when implementing legislative, procedural and ICT based change  To develop a professional knowledge based service culture Trade Facilitation

7  Customs clearance time for business slashed from an average of 21 days to 48 hrs.  Introduction of risk-based controls, speeding up the flow for legitimate traders.  1,731% increase in government revenue between years 2000 (baseline) and 2009 (up from U$215m to U$4bn+ respectively).  1 st SADC country to implement the SADC format single administrative document.  Automated customs entry processing (TIMS) at Luanda’s air and sea ports and key regional border posts (including direct trader input).  New Consolidated Customs Code & Regulations introduced, aligned with internationally agreed standards e.g. WTO Rules for Customs Valuation.  Customs Code of Conduct and ‘customer’ Service Standards adopted, improving transparency and predictability for business Case Study: Angola Trade Facilitation in Practice – Key Results to date

8 Key to success – close working partnership between CA and the Government of Angola with a strategic approach  High level policy commitment to change - political will  A detailed review of the legal and policy framework to adopt best practice and align with recognised international and regional standards (e.g. WCO, WTO and SADC)  Strengthening capacity of Customs personnel through: staff and management development programmes, mentoring schemes and graduate recruitment  The streamlining of processes and procedures in line with recognised international standards (e.g. UN/CEFACT) Case Study: Angola How they were achieved

9 Lessons Learned  Early ‘buy in’ by key stakeholders in Government and private sector  Early development and implementation of systems and processes to enhance integrity and transparency  The centrality of client country ownership throughout the programme (e.g. joint working and senior level mentoring)  Adoption of appropriate information technology (TIMS) to support the re-engineering of processes and procedures  The importance of collaborative working based upon institution transformation through a sustained long term technical assistance support programme to instil best practice aligned with internationally recognised standards

10 Crown Agents & Single Window An important building block for the realization of the Trade Facilitation Goal

11 Single Window Environment Trade Firm Customs Broker Data Provider Bonded Transportation Inspection Company Airline Shipping Line Forwarder Manifest Data report agent Bank Communication Network Service Provider National Single Window Warehouse Trade Related Agencies Interoperability Ubiquitous Anytime Access All stakeholders stand to benefit from SIMPLE, TRANSPARENT and EFFECTIVE trade processes.

12 Service Offerings Model 1: Targeted Model Automation Operational Efficiency Base Tier Agencies SOLUTION Mid Tier Agencies SOLUTION Advanced Tier Agencies SOLUTION

13 Model 2: All Inclusive Model Adopted Model Automation Operational Efficiency All Inclusive Single Window Model

14 Alignment - Solution  A Business model that adapts to each participant’s environment  Technology that supports BOTH advanced organisations (XML) and those reliant on document-based processes (PDF)  Alignment of technology components  Minimal entry requirements  Little or no re-engineering required  Fast Scale Up path WORKING TOWARDS AN AGREED VISION AND STANDARD

15 Alignment – Holistic Approach  Comprehensive Gap and Operations Analysis  Alignment with existing Trade initiatives  Leveraging and amplifying current and planned programmes  Seeking value from all existing programmes  Interoperability  Integration with Regional Single Window ACROSS ALL AGENCIES

16 Crown Agents Single Window Roadmap Detailed approach that integrates Strategy Confirmation and Goal Definition Technology Evaluation

17 Benefits of a Single Window Approach ECONOMY - PUBLIC SECTOR - PRIVATE SECTOR – CITIZEN  Boost to Economic Growth  Improved Competitiveness  Increased Government Revenue  Co-ordination of the controls and inspections of the various governmental authorities  Response to Heightened Security Needs  A professional, transparent, accountable, auditable, efficient and automated Customs Service Public Sector Benefits INTERNATIONAL COMPETITIVE ADVANTAGE

18 PRIVATE SECTOR – PUBLIC SECTOR – CITIZEN - ECONOMY  Assuring Transparency  Predictability  Saving Time –Clearance, Compliance etc  Cost Savings  Creating Customer Value  Improving Supply Chain Security and Performance Private Sector Benefits INTERNATIONAL COMPETITIVE ADVANTAGE Benefits of a Single Window Approach (cont’d)

19 Questions & Answers THANK YOU FOR YOUR ATTENTION. PLEASE FEEL FREE TO CONTACT US: 1.Trevor Simumba: trevor.simumba@crownagents.co.uk trevor.simumba@crownagents.co.uk 2.Valentina Mintah: valentina.mintah@crownagents.co.uk valentina.mintah@crownagents.co.uk 3.Kevin Atkinson: kevin.atkinson@crownagents.co.uk kevin.atkinson@crownagents.co.uk www.crownagents.com


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