Time Release Study (TRS) Overview, Purpose and Benefits Measuring the performance of tax and Customs Administrations in Developing Countries Clermont Ferrand, 12-13 June 2014 Oluimo da Silva WCO Technical Attaché 1

What is the WCO? The WCO has 179 Members across the globe that collectively process approximately 98% of world trade. 3 Main Strengths of WCO Capability and responsibility for global standard setting for Customs Standard Setting Key Message The WCO represents 179 Customs Administrations across the globe that collectively process approximately 98% of world trade. The WCO has 3 Strengths which are Standard Setting, Capacity Building and Cooperation. WCO As the global centre of Customs expertise, the WCO is the only inter-governmental organization with competence in Customs matters and can rightly call itself the voice of the international Customs community. The WCO has long supported the conclusion of a WTO Agreement on Trade Facilitation (ATF). Standard Setting The WCO has capability and responsibility for global standard setting for Customs. The WCO established global standards of Customs matters by developing many tools and instruments for trade facilitation. Capacity Building The WCO has an active and professional Capacity Building portfolio which offers comprehensive operational and technical support. The WCO deals with assistance requirements in a corporate way, involving its Members and regional entities, and engages donors, development partners and donor Member administrations to secure the corresponding financial resources and expertise. Cooperation The WCO has developed a network of WCO-accredited experts who may support implementation of the ATF. The WCO has enhanced cooperation with other international organizations such as WTO, OECD, World Bank as well as with other agencies. Cooperation Capacity Building Capacity Building / Technical Assistance delivery Network of accredited experts from Customs Administrations Cooperation with other international organizations and other agencies

Standard, tools and instruments! WCO Standards Evolution (not exhaustive) Harmonization of coding and data Standardization of procedures Simplification and modernization of procedures Support tools for national TF initiatives Data Model Version 3.0 (Guide) (2010) AEO Guidelines (2006) Diagnostic Framework* (Guide) (2003) HS Convention (2012) ISCM Guidelines (2005) Time Release Study Guide (TRS) 2011 Data Model Version 2.0 (Guide) (2005) ICT Guidelines (2004) Immediate Release Guidelines (2003) Resolution on UCR and Implementation Guide (2004) Risk Management Guide (2003) Recommendation on the use of WWW (1999) HS Convention (2007) Revised Kyoto Convention and its Guidelines(1999) Data Model Version 1.1 (Guide) (2003) Benchmarking Manual (Guide) (2003) Recommendation on Pre-entry classification (1996) Guidelines for Express Consignments Clearance (1993) Data Model Version 1.0 (Guide) (2002) Istanbul Convention (1990) HS Convention (1996/2002) Kyoto Convention (1973) HS Convention (1987) ATA Convention (1963) Convention establishing CCC (1950) *Diagnostic Framework is a living document and contains entire Customs themes, including the TF Copyright © 2006 World Customs Organization. All rights reserved. Requests and inquiries concerning translation, reproduction and adaptation rights should be addressed to copyright@wcoomd.org

What is Time Release Study Guide? Measure the average time between the arrival of the goods and their release Measure the time required for each intervening event between the arrival and release of the goods Measure the time required for Customs clearance of goods By region By individual customs office By type of traffic 5

What is Time Release Study Guide? Performance measurement Guide for the WCO Members Diagnostic initiative that allows improvement in Customs and Stakeholders’ methodologies or activities with regard to operational procedures related to the flow of cargo. TRS is a unique tool and method for measuring the actual time required from arrival of goods to its release. 5

Objectives Identifying bottlenecks processes affecting customs release Assessing new procedures, operations, etc. Establishing baseline TF performance measurement Identifying opportunities for TF improvement Estimating the country’s approximate position as a benchmarking tool 6

Reasons for using the TRS Guide Huge increase in cross border trading as a result of globalization, customs role in trade facilitation (TF) becomes more prominent. Expediting the movement, clearance & release of goods have been a major desire for many Customs in the 21st Century Just-in-time delivery of goods have become important for business and brings significant benefits to all parties involved in the supply chain 7

Reasons for using the TRS Guide Some initiatives to assess the efficiency and effectiveness of Customs and OGAs procedures are based on perception e.g. The World Bank Doing Business Report The new Agreement on Trade Facilitation The Delays in the release of goods are very often attributed to Customs since they are one of the more visible agency at the border. 8

Example? Others Port Terminal Authority Trade Ministry Quarantine Bill of lading Port Authority Terminal permission Terminal Fees payment Trade Ministry Permit Quarantine License release process at the border can be complex, many agency intervene and several documents is required, this all together causes frustration sometimes to economic operators Shipping Agency Cargo Manifest Customs Declaration Banks Fees payment

What and how is the Solution? To use of the WCO TRS package: -The TRS Guide -The Internet Software for the TRS The User Manual for TRS Software By the applying the methodology outlined in the Guide which covers 3 phased; I-Phase II-Phase -III-Phase 10

Three Phases I-Phase- Preparation of the Study II-Phase- Collection and Recording of Data III-Analysis of Data and Conclusions 11

Questionnaire Sea form 12

Example of a Report Objectives Scope Methodology Analysis Conclusion Final Report Objectives Scope Methodology Analysis Conclusion Recommendations (Action Plan) 13

Some characteristics of the TRS Unique tools, but applies to multiply mode of transport and to several type of procedures such as import, transit and export goods etc Cutting Cross tool, not based on perception Recognized to be a Cycle leading to continues improvement 14

Image of possible scope of the TRS Cargo Flow from Arrival to Release of Goods OGAs’ Intervention (if any) 15

TRS Implementation by Members Asia Pacific Africa Other Australia Bhutan Brunei China Fiji India Indonesia Japan Korea Lao PDR Malaysia Mongolia New Zealand PNG Philippines Singapore Thailand Viet Nam Jamaica Jordan Peri Poland Sweden Uzbekistan Ethiopia Kenya Malawi Mozambique Nigeria Rwanda Tanzania Swaziland Uganda Zambia

Benefits of TRS Procedures, Processes & Legislation Diagnose the efficiency of specific customs procedures Take measures to improve compliance or enforcement Simplify and harmonize customs procedures Automate Customs processes Draft / modify relevant Customs legislation 17

Benefits of TRS Organization Reallocate staff and resources for optimal utilization Initiate organizational reform Support requests for human, financial and technical resources Address anti-corruption measures Train staff 18

Benefits of TRS Performance Measurement & PR Use as a quality assurance mechanism Benchmark trade facilitation performance levels Improve customs transparency and promote PR Use with OGAs & trading community for further enhancement of TF measures 19

Reduction of the Time, e.g. Japan Sea Cargoes 7.0 Days 2.5 Days (Hours)

Benefits of TRS Overall benefits Win & Win situation, as it enhances C to B and C to G Reduces the supply chain time, from arrival to release cargo Reduces transaction cost for businesses Promotes investment in a broader manner Contributes to economic development of countries, and prosperity 21

WCO/AP Regional Workshop on TRS 4-8 March 2013 Thank you for your kind attention. For more information, please visit: www.wcoomd.org « Copyright © 2013 World Customs Organization. All rights reserved. Requests and inquiries concerning translation, reproduction and adaptation rights should be addressed to copyright@wcoomd.org ».