Archives For June 2018

WCO-HS-Mob-App.jpg

A new online course on the 2017 Edition of the Harmonized System (HS) has just been released by the WCO.

Through educational videos and a knowledge test, this course allows you to learn about the major changes in the 2017 version of the HS.

This course is available on CLiKC!, the WCO online learning platform, but is also the first WCO e-learning course which is built using mobile learning technologies. By downloading the app, available on the App Store and on Google Play, users will benefit from more features such as a search engine which indicates if a specific HS code has been amended in the 2017 version.

The app is available for free to anybody who wishes to learn about HS2017.  The added feature for our Member administrations’ Customs officers, who have an account on this website, is that it will be synchronized with CLiKC!

Source: WCO

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FIFA_2018

It’s that time in the sporting calendar when football fans go wild for the FIFA World Cup – it’s also that time when counterfeiters take advantage of the international sporting craze.

Five days into the World Cup and the 2018 game fixture has been besieged with fake tickets, apparel and other merchandise as authorities across the world work to crackdown on the illicit trade.

In Hong Kong, officials launched Operation Goalkeeper at the end of April in a bid to prevent counterfeit items entering the state and have already seized 259,000 knock-off World Cup products worth more than HK$15m (US $1.9m). Five arrests have also been made.

Amongst the infringing items seized were 50,000 pairs of shoes, 29,000 bags and 57,000 jerseys bearing fake FIFA trademarks, World Intellectual Property Review reported.

The confiscated items were found in 12 shipping containers, four goods vehicles and a batch of air parcels.

In China’s Guangdong province more than 130,000 fake merchandise has been seized. Thousands of footballs bearing FIFA World Cup insignia were to be exported to Tanzania, while 4,500 fake jerseys were seized before they could be exported to Malaysia.

Shanghai customs has also confiscated more than 130,000 knock-off items destined for Colombia, and Shenzhen customs seized 4,000 clothing items in April including 3,000 t-shirts and 1,000 hats with infringing logos that were also due to be exported from the country.

Meanwhile, in the UK, more than £240,000 of fake football kit, made up of 12,000 items entering the UK via East Midlands Airport, has been seized by authorities since April, according to Leicestershire County Council.

“Unsuspecting football fans can fall victim to purchasing fake and sometimes unsafe goods during the World Cup,” said county council leader Nick Rushton. “Trading Standards involvement at the border not only protects fans but also manufacturers and retailers from being undercut.”

Host country Russia has also confiscated 270,000 fake products featuring World Cup logos.

It’s not just clothing and merchandise that has generated a flood of replicas; tickets too have been faked.

Around 10,000 football fans from around the world who have travelled to Russia for the World Cup have discovered they have been scammed by purchasing fake tickets. Reports claim that a Russian company, Anji MSK, was behind the fake ticket scam, falsifying a letter from FIFA authorising the company to sell the tickets. The firm, which is no longer reachable, is believed to have netted more than $100m from the scam.

With China being a centre for the manufacture of counterfeits, and with a northern border with Russia, China’s General Administration of Customs committed to cracking down on counterfeits ahead of the 2018 World Cup in Russia. Chinese customs officials, along with counterparts in Hong Kong and Macau have worked on a campaign that has been running since March.

Both the International Trademark Association and FIFA have warned about the presence of fake merchandise, which can range “from footballs to caps, from clothing to toys, and from footwear to miscellaneous items such as pins, keychains, World Cup Trophy replicas and other items that feature FIFA trademarks”.

“FIFA runs a global licensing programme, which gives a wide range of licensees the opportunity to produce official licensed products for the FIFA World Cup. However, there are also companies that seek to produce items featuring FIFA’s official marks without purchasing the required licence,” the global football body said. “For the 2018 FIFA World Cup, FIFA will be working together with customs authorities across the world to be able to use existing structures and know-how in the joint battle against counterfeit products.”

The organisation, which is monitoring IP registers and has set up commercial restriction areas around stadiums, said it would take all measures to stop infringing activity.

In 2014, some seven million fake World Cup items destined for foreign markets were seized by Chinese authorities.

Source: SecuringIndustry.com, article by Katrina Megget, 18 June 2018

Cross-border e-commerce freight train [Xinhua]

From ancient trade to modern tech

Two millennia ago, camel caravans trekked across an inland route centered around Chang’an – today’s Xi’an, the capital of Shaanxi province – serving to connect China to western-lying regions of the world through trade and exchange.

Today, under the guidelines of the Belt and Road Initiative, cross-border and transcontinental transactions are booming online as well, with a key difference: unlike the ancient model, the online businesses of today’s digital era are more efficient, more diverse and far more extensive.

Smart technologies and modern logistics have enabled people to pick and choose products from overseas – from Argentina’s red prawns, Mexico’s avocados and Chile’s cherries to the Czech’s crystals, Myanmar’s emeralds and Bulgaria’s rose oil – and receive them within hours or days after a simple click.

The Belt and Road online

Countries involved in the Belt and Road Initiative have launched businesses on China’s online shopping platforms, among which the e-commerce giant JD.com alone has attracted more than 50 overseas e-stores.

At the same time, these e-platforms facilitate the export of Chinese products to 54 countries, among them Russia, Ukraine, Poland, Thailand, Egypt and Saudi Arabia.

China’s e-commerce sector, projected to reach 2 billion consumers globally by 2020, has become a pillar industry supporting worldwide trade, said Xing Yue, vice president of Alibaba.com, one of China’s leading e-commerce conglomerates headquartered in Hangzhou, the capital of Zhejiang province.

“With circumstances highlighting digital dividends, cross-border e-businesses do not only focus on selling products, but also on creating service-centered trade, a signal epitomizing digital commerce,” added Xing at the second Cross-Border E-Commerce Summit held in Zhengzhou, capital of Henan Province, in May this year.

According to Alibaba.com, the company’s annual online shopping spree hosted last November 11 – a day evolved from China’s Singles’ Day into an annual online shopping frenzy – attracted buyers from 225 countries and regions, generating a revenue of 168.2 billion yuan (US$26.25 billion) and producing 812 million orders.

AliExpress, a global business division of Alibaba.com established eight years ago, reached 100 million overseas customers as of April 2017. “We may be underestimating the actual size as people under the same roof may use the same account,” said Shen Difan, the general manager of AliExpress.

“Products made in China are nothing inferior to the rest of the world. However, the problem is that the small-and-medium-sized enterprises in China were unable to reach overseas customers,” Shen said, adding that e-commerce has allowed these businesses to tap into other markets, extending connections between the two sides.

E-commerce and drones reshaping trade

The change in delivery speeds in Russia exemplifies the convenience of online business. Before e-commerce took off there, overseas packages often took as long as 60 days to arrive to Russian households, after being sent to Moscow for a security check.

Now, however, with the adoption of big data, Russian customs is no longer required to send deliveries to Moscow for unpacking and examination. Instead, detailed information about each package, including dates, types and values of commodities, is made available online, enabling direct delivery to customers.

E-commerce – arising as one of China’s four major modern inventions, along with high-speed railway, Alipay and bicycle sharing platforms – has overhauled traditional industrial chains and reshaped the trade system across the world, the People’s Daily reported.

“I have been greatly interested in the rural logistics run by JD.com,” Wu Min, the editor in chief of the Italian weekly newspaper Il Tempo Europa Cina, said while paying a visit to JD.com’s Beijing headquarters on June 1 of this year.

“In the past few years, it cost us heavily to send newspapers to the countryside, where difficult geographic conditions blocked entrance. Today, with the use of drones, we are able to surmount the last-mile challenge and send our newspapers to rural readers at much lower costs,” Wu explained.

JD.com has also developed drones, weighing 13 kilograms each, to manage deliveries to outlying areas. Additionally, smart technologies including robotic couriers and unmanned inventory have enabled the companies’ shipments to cover 99 percent of the population nationwide, saving 70 percent of total logistical costs, the People’s Daily reported.

Source: China.org.cn, article by Wu Jin, 14 June 2018

Global Illicit Trade Environment Index.PNGThe Economist Intelligence Unit and the Transnational Alliance to Combat Illicit Trade (TRACIT) have released their Global Illicit Trade Environment Index, ranking 84 countries on the extent they enable or prevent illicit trade.

Finland ranks first in the Index with a score of 85.6 (out of 100), just barely ahead of the U.K. The rest of the top 10 includes a handful of European countries (Sweden, Austria, Netherlands, Denmark and Germany), along with the U.S., Australia and New Zealand. South Africa features 42nd in the list.

At the bottom of the Index ranking is a group of developing economies from all regions of the globe. Libya ranks last with a score of 8.4, and is joined by Iraq in 83rd place, scoring less than six points better. Filling out the bottom ten of the Index are: Myanmar, Laos, Venezuela, Cambodia, Kyrgyzstan, Belize and Ukraine.

Regionally, Europe (34 economies in the index), earns the highest the average score (68.0). The Asia-Pacific (21 economies) comes second at 56.0 and the Americas (19 economies), including the U.S. and Canada, is third at 54.0. The Middle East and Africa (10 economies) comes in last, with an average score of 50.0.

The Index is constructed on consideration of government policy, supply and demand, transparency and trade, and customs environment.

Download the White Paper here!

“The Index provides essential information to help policy makers better understand the regulatory environment and economic circumstances that encourage illicit trade,” said Jeffrey Hardy, Director-General at TRACIT. “Illicit trade not only hurts consumers and takes revenue away from governments, it threatens the security of nations by supporting transnational criminal syndicates and terrorist groups, and governments and the private sector must work together to fight it.”

TRACIT hopes that economies that are at the top will concentrate on implementation and enforcement and says they need to provide leadership to help countries with lower scores to build a better environment to prevent illicit trade.

TRACIT calls for Governments across the globe to:

  • Commit to illicit trade related treaties;
  • Tighten controls on money laundering;
  • Reduce corruption;
  • Rationalize tax policies;
  • Strengthen law enforcement efforts;
  • Protect intellectual property;
  • Enhance interagency cooperation;
  • Improve governance of FTZs;
  • Report and share statistical data across borders.

Source: The Economist, Illicit Trade Index, June 2018

Trade Community System - Brisbane - DashboardA new Trade Community System (TCS) that will function as a free to access portal bringing together existing data on container shipments is the result of a collaboration between PwC Australia, the Australian Chamber of Commerce and Industry, and the Port of Brisbane.

The goal of the TCS is to link existing supply chain information in disparate systems through blockchain technology, and in the process “revolutionise international trade by removing complexity”.

The developers of TCS noted that one shipment to or from Australia today generates as many as 190 documents and 7,5000 data fields, much of which is duplicating data for different systems, and there is no ability currently to track containers on end to end journeys.

TCS aims to address this with a “National platform that links rather than replaces existing systems, provides end to end visibility and foresight of impediments such as delays and incorrect information, and is permissioned”. All documents, approvals and other requirements would be linked to a single shipment or container number as hashes on a blockchain that supports the TCS system, or stored in an off-chain graph database.

TCS - Brisbane

The developers stressed that TCS “augments, not replaces the systems that are already part of Australia’s supply chains”. Users would access the TCS directly through a web portal or indirectly through their existing systems, and at no upfront cost. “Users are not charged to use the platform or access data about the goods they are managing. Revenue comes from the productivity and service innovations that the data unleashes,” the developers stated.

Speaking at the launch of a proof of concept Trade Community System digital application in Brisbane, Port of Brisbane CEO, Roy Cummins said: “To drive new efficiency gains, industry leaders need to develop mechanisms which facilitate the integration and interoperability of commercial operators across the supply chain and logistics sector”.

This is the goal of the TCS. “The Trade Community System proof of concept is the first stage in building an innovative end-to-end supply chain that will digitise the flow of trading information, improve connectivity for supply chain participants, reduce friction for business and reduce supply chain costs, providing unprecedented productivity gains for Australia’s international businesses,” PwC Partner, Ben Lannan added.

For the Chamber of Commerce and Industry, TCS is an important step in reducing the cost of doing business. “As a trading nation, Australia relies on efficient and effective international supply chains to drive its economic engine room,” said Australian Chamber Director of Trade and International Affairs, Bryan Clark. “At present the current inefficiency across Australian supply chains has added to the cost of doing business, creating up to $450 in excess costs per container. This doesn’t just represent in excess of $1bn in value lost, but goes to the heart of Australian commodity trade viability when it gets priced out of the competitive global market”.

Check out the video – https://vimeo.com/262332930

Source: WorldCargoNews, Editorial, 30 May 2018

 

 

Tin Can Island Nigeria

Nigerian importers operating in all ports in Lagos are facing a tough time in clearing their consignments via the new Nigeria Customs Service (NCS) clearing platform, created to facilitate trade.

The platform

The new IT platform introduced to aid smooth clearance of cargo at the various port terminals has been given the Service sleepless nights before it was further wrecked by windstorm few days ago.

The platform, called Nigeria Customs Integrated System (NCIS)II is an improvement on  earlier automation processes such as Automate System for Customs Data (ASYCUDA), ASYCUDA 2.3, ASYCUDA 2.7,ASYCUDA ++, and NICIS I, which is a software specially created to enhance seamless cargo clearance.

Under ASYCUDA, agents could only make five declarations in one hour, but under the NICIS II, they can make up to 18 declarations within an hour.

Also, under NICIS I, customs agents could view what other control agencies such as National Agency For Food And Drug Administration And Control (NAFDAC), National Drug Law Enforcement Agency (NDLEA), Standards Organisation of Nigeria (SON) are doing with their declarations. Similarly, they could actually interact with these agencies under NICIS II.

The new software had earlier been launched at Lilypond Terminal, Port and Terminal Multi-services Limited (PTML) and Tin Can Customs Commands.

Disruption

However its failure has affected cargo clearance at the ports in Lagos, Tin Can Island, and Kirikiri Lighter Terminal (KLT) twice this month during a heavy downpour.

The disruption was more pronounced at Lagos Port, which handles the largest imports just two weeks when it migrated to the new platform after its trial at Lilypond, PTML and Tin Can commands.

Challenges

Speaking on the challenges, the Assistant Comptroller of Customs in charge of Customs Processing Centre (CPC), Apapa command, Yahaya Muktar highlighted some of the challenges the command had faced since the NCIS II took off two weeks ago, namely –

  • that the migration from ASYCUDA system to NCIS II platform had caused a little disruption in revenue generation, however he said that the command had caught up on what was initially lost to the mixed up; and
  • that the recent windstorm also contributed to the teething problems experienced at the command.

He explained that the service had not been able to access any work because of the server failure.

For the first week, there was no revenue collected. In the second week, when NCS got acclimatised to it, NCS collected N4.3 billon in a day which has now made up for the three days where no revenue was collected.

At the moment, the Lagos Port had only one scanning machine and that this was not adequate for the backlog of pending containers to be cleared. It was also confirmed that scanners were not working in some port terminals (Tin Can).

Requests for inspection were not being triggered properly resulting inspections not being completed.

Issues are also being experienced with debit notes resulting in importers being billed twice.

Many users were reluctant about using the new IT platform in the light of all the difficulties.

The challenges experienced range from network to various hardware and software technical issues. The NCS’s technical partner, Webb Fontaine is working with the implementation team to ensure normal resumption of customs processing for trade.

Source: New Telegraph Online, original article by Bayo Akomolafe, 30 May 2018

singapore_australia-flags

Companies that have been certified by the Singapore Customs for adhering to robust security practices can now enjoy a faster customs clearance process for goods that they export to Australia, the agency for trade facilitation and revenue enforcement said on Thursday.

In addition to the faster clearance process, certified Singapore firms will also be subject to reduced documentary and cargo inspections. The same will be applied to Australian companies that are certified by the Australian Border Force (ABF) for goods that they export to Singapore.

The move was recognised under a Mutual Recognition Arrangement (MRA) of Authorised Economic Operator programmes signed by Singapore Customs and the ABF on May 31 that aims to foster closer customs collaboration and elevate bilateral trade ties between the two countries.

The MRA comes under the Comprehensive Strategic Partnership signed between Singapore and Australia in 2015. In addition, Singapore is the first Asean country to sign an MRA with Australia.

In its media statement on Thursday, Singapore Customs said: “The Australia-Singapore MRA recognises the compatibility of the supply chain security measures implemented by companies certified under Singapore Customs’ Secure Trade Partnership (STP) programme and the trusted companies of the ABF’s Australian Trusted Trader programme.”

The agreement was signed on Thursday by Singapore’s director-general of customs, Ho Chee Pong, and the commissioner of ABF and comptroller-general of customs, Michael Outram, in Singapore.

Mr Ho said: “The signing of this MRA reinforces the commitment of both our customs administrations to maintain the security of regional and global supply chains, and to facilitate legitimate trade undertaken by Authorised Economic Operators in both countries.

“As major trading partners, I am confident that this new MRA of our respective Authorised Economic Operator programmes will bring about much benefit to our businesses and boost bilateral trade.”

The signing of the Authorised Economic Operator-MRA will further strengthen closer cooperation at the borders and smoothen the passage of goods between our two countries of trusted traders.

Source: The Business Times (Singapore), original article by Navin Sregantan, 31 May 2018