1 WTO Seminar on Technical Assistance on Customs Valuation Challenge to implement the Agreement on Customs Valuation Geneva, 6-7 November 2002 Kunio Mikuriya Deputy Secretary General World Customs Organization

2 Benefits of a well functioning valuation system Based on common rules Based on common rules Pivotal role in trade facilitation Pivotal role in trade facilitation Expeditious clearance time, predictability, transparency Expeditious clearance time, predictability, transparency Competitiveness of trade procedures Competitiveness of trade procedures Investment decision Investment decision

3 Customs environments – reality on the grounds Implementation will be a challenge Implementation will be a challenge Different environments Different environments Fraud and corruption on both sides of the customs counter Fraud and corruption on both sides of the customs counter Customs limitation in capacity Customs limitation in capacity Lack of compliance Lack of compliance Informal sector Informal sector

4 Fear of revenue loss A choice between revenue collection and trade facilitation A choice between revenue collection and trade facilitation No empirical evidence but persistance of concerns No empirical evidence but persistance of concerns Fiscal dependence on customs revenues Fiscal dependence on customs revenues Relatively high customs duties Relatively high customs duties Incentives for fraud Incentives for fraud

5 Successful application of the Agreement Effective valuation control system Effective valuation control system Intelligence-based risk management Intelligence-based risk management Post-clearance audit Post-clearance audit A holistic approach towards modern customs procedures and management A holistic approach towards modern customs procedures and management Changes in thinking Changes in thinking Political will and improvement in customs management Political will and improvement in customs management

6 Engagement and support of business Driving force for customs modernization Driving force for customs modernization Lack of necessary information: record- keeping and access to commercial data Lack of necessary information: record- keeping and access to commercial data Often inappropriate enforcement laws and regulations Often inappropriate enforcement laws and regulations Dialogue between customs and business, customs and trade ministries Dialogue between customs and business, customs and trade ministries

7 Information exchange on valuation Facilitation of information exchange Facilitation of information exchange Draft Exchange of Valuation Guide Draft Exchange of Valuation Guide Doha Decision Doha Decision Non-binding Non-binding Capacity building tool Capacity building tool

8 Pre-shipment inspection Interim measure Interim measure Customs reform programme with investing necessary resources Customs reform programme with investing necessary resources A new trend for a more limited supporting role A new trend for a more limited supporting role

9 Technical assistance Political and social realities and the real need Political and social realities and the real need Require a fundamental re-engineering Require a fundamental re-engineering Realistic about the possible pace of change Realistic about the possible pace of change TA in a wider context of sustainable developmental approach TA in a wider context of sustainable developmental approach Involvement of local stakeholders Involvement of local stakeholders Realignment of resources Realignment of resources Regional approach through experience sharing Regional approach through experience sharing

10 Customs capacity building strategy Coherent approach for technical assistance and capacity building Coherent approach for technical assistance and capacity building WTO Cancun WTO Cancun Support from other multilateral organizations and donors Support from other multilateral organizations and donors Lessons learned from past experience Lessons learned from past experience Survey for capacity building needs on regional basis Survey for capacity building needs on regional basis