1. WCO SAFE Framework of Standards & Data Model
UN/ECE, UN/ESCAP and Eurasian Economic Community Integration Committee Secretariat
International Conference on Trade Facilitation
Gareth Lewis, WCO

2. Outline Customs environment WCO Framework of Standards
Key Instruments (Data Model, UCR)

3. World Customs Organization
To improve the effectiveness and efficiency of Customs Administrations
Established in 1952, HQ in Brussels
169 members
98% of World Trade
Model
Legislation
Standards
Conventions
Decisions
Recommendations
Forum for Discussion
Exchange ideas
Joint Initiatives
Trade Consultation
Capacity Building
Diagnosis
Plan
Implement
Review

4. Customs Environment
Prime agency to interdict transborder illegal traffic
Legislative mandate & expertise in border control
International business and transport
Information management & risk identification
Investigation and prevention of border offences
Smuggling (arms, drugs, controlled or prohibited goods)
Money laundering
Illegal movement of dangerous materials
Not only goods, but also conveyances, crew & passenger traffic

5. Customs Environment Admissibility of goods Foreign direct investment
Trade facilitation
Foreign direct investment
Just-in time
Inventory control
Predictable processing
Statistic
Fewer resources
Lower costs
Information technology
Logistics
Collect taxes
Security
Increase in volume
Maintain Exchequer yield
Drugs
IPR
Dangerous goods
Environmental
Globalization
Cultural
More awareness
Protect society
Int’l commitments
Regional Trade Agreement
Governance, Integrity

6. Evolution of Customs Customs function
Revenue Collection of import taxes (duties & excise)
Protection of Economic Interests
(domestic industry)
Protection of Society <health, safety>
(drug trafficking, firearms, environment etc.)
Customs function
Economic Development <trade, investment>
(trade facilitation)
Techniques
Partnership with trade
Risk management
Authorized traders
Use of IT
Co-operation with other agencies
Co-operation with other Customs administrations
Security <terrorism>
(shifting focus to entire supply chain)
Framework of Standards

7. Security Concerns Global Customs response coordinated by WCO
Customs environment after terrorist attacks
Awareness of the need for enhanced border control
Refocus control strategy from mainly import to the entire supply chain including export
Enhanced cooperation with border agencies / trade
Global Customs response coordinated by WCO
Adoption of Resolution on Security and Facilitation of the International Trade Supply Chain
Objective to look beyond borders to point of origin of trade supply chain
Overwhelming Support
Customs Directors General, international bodies, trading organizations
International Task Force to develop required measures

8. Package of Measures Refocus Customs to export & supply chain
Non-binding measures including legal, procedural and risk assessment instruments to protect the supply chain at the earliest stage
Need for enhanced cooperation with other border agencies and business
Revised Kyoto Convention
Refocus Customs to export & supply chain

9. SAFE Framework Principles
Standards to Secure and Facilitate Global Trade
Pillar 1, Customs-to-Customs networking
Pillar 2, Customs-to-Business partnerships
Seal Integrity Program
Covers all areas of modern Customs controls
The Framework of Standards has its foundation in 2 major Pillars, the first dealing with Customs-to-Customs issues in terms of commonality of effort and information exchange. The second pillar concerns the dealings between Customs Administrations and Business and introduces the Authorized Economic Operator concept which, in essence, defines compliant business entities.
These two Pillars are amplified and built upon by two Annexes which track the Pillar concept with the first dealing with Customs-to-Customs and the second with Customs-to-business dealings. There Annexes merely provide further concrete details regarding the Main Body Framework elements.
The first Annex is also supported by an Appendix regarding Container Sealing Arrangements. These provisions were non-controversial because they had their origin directly from the provisions of the Revised Kyoto Convention.
The Framework of Standards is solely an expression of resolve to act, and does not include any schedule or time table.

10. FOUR CORE ELEMENTS Advance electronic manifest information
Common risk-management approach; 27 Key data elements
Inspection of high-risk cargo at port of origin; export controls
Enhanced trade facilitation for legitimate trade; Authorized Economic Operator (AEO) concept
The WCO Framework is designed to encourage cooperation among international customs administrations and with the trade community to secure international supply chains and facilitate the movement of goods. It is comprised of four core elements.
First, the Framework harmonizes advance electronic manifest information requirements on inbound, outbound, and transit shipments.
each Member that joins the Framework must commit to employing a standardized risk management approach to address terrorism and other security threats.
Third, the Framework requires the inspection of outbound high-risk containers by non-intrusive inspection equipment, such as large-scale x-ray machines and radiation detectors, at the request of the destination Member.
Lastly, the Framework defines the concrete benefits to be received by businesses that commit to implementing the Framework’s standards.
The Framework will therefore create standardized criteria for identifying businesses that offer a high degree of security in return for which they will receive such tangible benefits such as speedier clearance of low-risk cargo through customs and fewer customs inspections.

11. SAFE Framework of Standards
Advance I
Customs /Customs
Customs/Trade
Advance Information
Risk Management
Inspection
Benefits
ISCM
Data Model
UCR
RKC HS
120 countries
Capacity Building

12. WCO Instruments for Trade Facilitation
Harmonized system
Revised Kyoto Convention
Integrated Supply Chain Management Guidelines
(Customs) Data Model
UCR
Time Release Study

13. WCO (Customs) Data Model
1996 G7 Data Sets
2002 WCO CDM V1.0
2003 Security Concerns V1.1
2005 Conveyance, Transit, UMM V2.0
2008 Response, XML, (more) Transit, OGA “single window” environment V3.0
EDIFACT Messages, MIGs
Alignment with CCTS, UNTDED

14. Kyoto Customs Data Principles
Common data sets, uniform electronic messages, coded representations
Maximum data requirements for the routine exchange of information between Customs or OGA and the trader/transport entity
Countries to require as little information as necessary for Customs control purposes
Release on minimum information

15. International Code Standards
HARMONIZED SYSTEM & UCR
ISO 3166 COUNTRY CODES
ISO 4217 CURRENCY CODES
ISO 6346 CONTAINER CODES
UN/ECE RECOMMENDATIONS
No. 5 - INCOTERMS
No. 7 - REPRESENTATION OF DATE/TIME
No UN/LOCODE
No MODE OF TRANSPORT
No UNITS OF MEASURE

16. Unique Consignment Reference Number (UCR)
Critical part of WCO’s Integrated Supply Chain Management Guidelines/FoS
Resolution & Implementation Guidelines passed by Council in 2004
“Electronic Staple” end-to-end identifier based upon ISO “Licence Plate”
UK/Aus Project based upon SSCC for bulk wine & spirit

17. THANK YOU
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