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

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

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

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

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

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

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

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

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.

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.

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

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

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

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

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. 16 - UN/LOCODE No. 19 - MODE OF TRANSPORT No. 20 - UNITS OF MEASURE

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 15459 “Licence Plate” UK/Aus Project based upon SSCC for bulk wine & spirit

THANK YOU gareth.lewis@wcoomd.org Phone: +32 2209 9355