1. The Revised Kyoto Convention Seminar on the Harmonization Convention Moscow October 2006

2. Customs Responses to the Challenging Environment 4 Revised Kyoto Convention 4 WCO Customs Data Model 4 WCO Unique Consignment Reference (UCR) number 4 WCO/IATA /ICAO API Guidelines 4 Risk Management 4 IT and e-commerce strategy; single window 4 Time Release Study

3. Revised Kyoto Convention 4 4 Revision of the original Convention (1973) to keep abreast of developments in information technology and in Customs techniques 4 Highly competitive business environment 4 Blueprint of modern Customs procedures for Governments to å implement effective controls & å facilitate legitimate trade

4. Package of measures 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 attention from import to the entire supply chain, including export

5. Structure and Content Revised Kyoto Convention 4 Legal provisions covering core Customs functions (import, export, transit and other procedures) 4 Detailed implementation guidelines for all legal provisions 4 Methods of application and best practices 4 Constantly updated

6.  Transparency and predictability -Rules for providing information -Clear and transparent appeal procedures (Customs, independent authority, courts)  Standardization and simplification of goods declaration and supporting documents - Minimum data requirements - Submission by electronic means - Customs Data Model (supporting initiative) Key Principles of RKC 1

7.  “ Fast track” procedures for authorized persons with good compliance records  Release of goods with minimum information  Maximum use of information technology - Use of international standards & consultation with all relevant parties - Use of international standards & consultation with all relevant parties  Electronic commerce methods as an alternative to paper-based requirements - E-commerce strategy - E-commerce strategy Key Principles of RKC 2

8. Key Principles of RKC 3  Minimum necessary control to ensure compliance  Risk management - Identify high risk x’actions based on intelligence - Identify high risk x’actions based on intelligence - From full documentary, physical to targeted checks - From full documentary, physical to targeted checks - Facilitation of legitimate trade while maintaining effective control - Facilitation of legitimate trade while maintaining effective control - Effective and efficient deployment of resources - Effective and efficient deployment of resources

9. Audit based controls - Post clearance audit  Audit based controls - Post clearance audit  Coordinated intervention - Inspection with other border agencies - IBM (“Single window” concept)M  Partnership with trade/transport industries - Formal consultative relationships - Information dissemination - Memoranda of Understanding (MOU) Key Principles of RKC 4

10. Benefits of RKC National economy  National economy  Trade community  Customs administrations

11. Benefits to the Economy Benefits to the Economy  Reduced transaction costs and avoidance of delays in the release and clearance process  Increased economic competitiveness  Attract foreign direct investment and promote the development of industry  Increase the participation of small and medium- sized enterprises  Lower costs to consumers  Increase national revenue

12. Benefits: Trade Community  Faster, predictable and efficient Customs clearance  Transparent procedures and appeals procedure  Greater facilitation for compliant traders  Lower compliance costs  Enhanced competitiveness  Use of information technology

13. Benefits: Customs  Enhanced Customs control  Increased trade facilitation  More effective and efficient deployment of Customs resources  Reduced integrity problem  Supply chain security and facilitation

14. Standards of Particular Interest  Juxtaposed Customs offices/joint controls

15. Juxtaposed Customs Offices and Joint Controls  Standard 3.3 : “Where Customs offices are located at a common border crossing, the Customs administrations concerned shall correlate the business hours and the competence of those offices.”  Standard 3.4 : “At common border crossings, the Customs administrations concerned shall, whenever possible, operate joint controls.”

16. Joint Controls (cont)  Standard 3.5 : “Where the Customs intend to establish a new Customs office or to convert an existing one at a common border crossing, they shall, wherever possible, co-operate with the neighbouring Customs to establish a juxtaposed Customs office to facilitate joint controls.”

17. Thank you Gareth Lewis gareth.lewis@wcoomd.org www.wcoomd.org gareth.lewis@wcoomd.org