Hacia un Modelo de Aduanas del Siglo XXI Lima 25 Abril 2007

Content presentation u About WCO u Landscape 21 st Century u SAFE/Framework of standards u WCO/ Columbus programme

About the WCO The World Customs Organization is the competent intergovernmental organization with respect to global Customs issues The WCO represents 171 Member nations from all geographic regions of the world and at all stages of socio - economic development The WCO Headquarters is in Brussels, Belgium Has two official languages - French and English (but Spanish is used for some technical meetings).

WCO IS UNIQUELY POSITIONED WCO IS UNIQUELY POSITIONED Trade & Commerce Transport WTO IATA UPU UNECE ICAO IECC ICC IMO IRU ICS IFCBA ICS IFCBA BIMCO FIATA BIMCO FIATA Law Enforcement UNODC OLAF ICPO EUROPOL INCB APEC CCLECFATF EURODOUANE G7 (P8) EU (DG21) Environment IAEA IAEA OPCW OPCW Endangered Species CITES CITES Statistics UNSD UNSD Consumer Protection WIPO WIPO Health WHO WHO Revenue OECD OECD IMF IMF Heritage UNESCO UNESCO Poverty WORLD BANK Development UNCTADADB IADB EUAid

Broad outputs of the WCO Designs and maintains international instruments Acts as a co-operative forum Provides technical assistance and training

Landscape 21 st Century

The global trade 21 st century landscape = Customs environment (1) u Increased global interconnectedness u International trade is recognized as a driver for economic development u More, complex and binding rulings that govern international trade u Proliferation of regional Trade Agreements u Increased international trade volumes u New logistics, trading patterns and supply chain models

The global trade 21 st century landscape = Customs environment (2) u Global production networks have become more advanced u Increased pressure to facilitate trade u Increased international people movement u Emergence of trans-national organized crime networks u Security threats recognize no national boundaries u Growing concerns regarding public health and the environment

New Role of Customs Impact of developments on role of Customs Customs performed fiscal and economic missions based on revenue collection – administering controls over: ● Movement of people ● Movement of goods ● Movement of conveyances TRADITIONALLY TODAY Customs nowadays: ● combats terrorism (WCO, CSI), ● protects markets (rules of origin, customs valuation and counterfeits), ● protects society (drugs), ● protects the environment (waste) ● protects nature (CITES)

Customs in the 21 st Century u Most Customs administrations recognize that a fundamental shift has taken place with respect to their role u The role of Customs at the border has expanded in some cases u Customs plays an important role in administering international trade u Customs is a central part of the globalization process and the catalyst to the competitiveness of countries and companies u Trade liberalization does not mean that the role of Customs is diminishing u A total control approach is being adopted by some Customs to broaden the scope by focusing on international trade supply chains

Evolution of customs Revenue Collection of import taxes (duties & excise) Protection of Society Protection of Society (drug trafficking, firearms, environment etc.) Economic Development Economic Development (trade facilitation) Customs function Protection of Economic Interests Protection of Economic Interests (domestic industry) Security Security (shifting focus to entire supply chain)

Customs is the only agency having the unique authority and powers to secure and facilitate trade Customs is the only agency having the unique authority and powers to secure and facilitate trade Collection at the Border remains an important function of Customs Collection at the Border remains an important function of Customs Protection of the economy through efficient administration of trade agreements based on Rules of OriginProtection of the economy through efficient administration of trade agreements based on Rules of Origin The Future - Challenges

Customs must adapt its structures to deal with new international environment by: Establishing an integrated border management system;Establishing an integrated border management system; Establishing cooperative agreements with other customs administrations to streamline and simplify supply chain clearance;Establishing cooperative agreements with other customs administrations to streamline and simplify supply chain clearance; Establishing close cooperation with other government departments.Establishing close cooperation with other government departments. The Future - Challenges

Future Issues u Most Members early stages of evolution u Bridging the gap; IT, Capacity Building u Paperless Environment u Modern Customs Technique (Revised Kyoto Convention) u Integrated Supply Chain Management u Integrated Border Management u Security

Response of the WCO u Revised Kyoto Convention u Integrated Supply Chain Management u Data Model u UCR u Single Window u Integrity u Capacity Building

SAFE/Framework of standards

SAFE/Frame of Standards u Creation of FoS to Secure and Facilitate Global Trade u Pillar 1, Customs-to-Customs network arrangements u Pillar 2, Customs-to-Business partnerships u Seal Integrity Programme u FoS is a comprehensive instrument that covers all areas of Customs controls

Objectives of the Framework u Certainty and predictability at a global level u Integrated supply chain management for all transport modes u Allow Customs to meet the challenges and opportunities of the 21 ts C u u Closer cooperation among Customs administrations u Stronger Customs-to-Business cooperation u u Tangible benefits for businesses u Seamless movement of goods

● FOUR CORE ELEMENTS  Advance electronic manifest requirements (Customs-to- Customs sharing of information)  Common Risk management approach; 27 Key data elements  Inspection of high-risk cargo at port of origin: export controls using NII equipment (X-ray scanners)  Enhanced trade facilitation for legitimate trade; Authorized Economic Operators; Customs-to-Business standards Framework of Standards

Customs-to-Customs Some examples : u Integrated supply chain management. (St 1) u Modern Technology in Inspection Equipment (St 3) u Risk management systems (St 4) u Advance Electronic Information (St 6) u Outbound Security Inspections (St 11)

Framework of Standards Customs-to-Business Some examples : u Partnership (St 1) u Authorization (St 3) u Communication (St 5) u Facilitation (St 6)

CURRENT STATUS u Framework of Standards is adopted at the WCO Council in June 2005 u 144 administrations have signed Letter of Intent u Diagnostic missions and development assistance (assistance with Action Plans, Cost-benefit analysis, Business case) to 108 WCO Members, between January 2006 and June 2007 u Monitoring and evaluation of the Members progress

The WCO Columbus programme

The WCO Columbus Programme - Aid for SAFE Trade - The single largest and most comprehensive Customs Capacity Building initiative ever Aim: Comprehensive Customs modernization, full implementation of the WCO SAFE Framework of Standards, and preparation for the possible WTO trade facilitation agenda

The Columbus programme, Phase I

Columbus Programme Phase I – According to plan 144 countries committed to SAFE FoS 144 countries committed to SAFE FoS 70 diagnostic missions done so far 70 diagnostic missions done so far 108 before the Council, June 2007 (all) 108 before the Council, June 2007 (all)

Emerging Findings Examples Will to Change, not always backed politically. Competing priorities not resolved Will to Change, not always backed politically. Competing priorities not resolved Many of the quick wins have been met. Focus has been on clearance times and fewer stopsMany of the quick wins have been met. Focus has been on clearance times and fewer stops Lack of Intelligence to drive the business and operationsLack of Intelligence to drive the business and operations Risk assessment and Analysis but little Risk managementRisk assessment and Analysis but little Risk management NII (Scanners) relatively Common but revenue targetedNII (Scanners) relatively Common but revenue targeted Lack of management skills in Organizational development. They know what to do but not howLack of management skills in Organizational development. They know what to do but not how Trends and Pattern report (first global version in April 07)

The Columbus programme, Phase II

+ 27 Members in Phase II ”We have moved from needs assessment into action” Examples Action Planning Phase II Missions Action Planning Work Shops Compendium of Implementation tools SAFE FoS Seminars 16 Diagnostic Faciltators WorkShops More than 350 Capacity Building Experts More than 100 accredited diagnostic faciltators 4 Train-the-trainer WorkShops

The Columbus programme, Phase III

Phase III – Monitoring +100 countries ”We monitor the progress”

Conclusion. ”We will continue to deliver results.” Thank you for the attention! Henk Van Zandwijk / Technical Attache/ WCO.