Archives For Customs

Angola CustomsThe introduction in the coming months of a new customs tariff in Angola is feeding expectations among economic agents that replacing the current regime will be a stimulus to the country’s growth.

A new customs tariff system, submitted to the Council of Ministers and expected to be implemented this year, proposes cuts on import duties on foodstuffs such as fruit and vegetables, cooking oils and grains (including wheat flour), as well as raw materials such as iron, steel and aluminium products as well as second-hand cars, the Angolan press reported.

The aim is to replace the existing customs tariff system – introduced in 2014 before the start of the economic and financial crisis now facing the country – which is generally regarded as protectionist of local farmers and manufacturers, seeking to make imports more expensive in order to encourage diversification of an economy that is highly dependent on oil.

The current tariff has been the subject of much criticism from local and international companies as well as from the World Trade Organization (WTO).

In its most recent report on Angola, the Economist Intelligence Unit (EIU) said replacing the current tariff would likely be a positive move, as it had the effect of increasing the cost of domestic production and reducing competition in the market.

Despite tariff protection, the EIU points out that operational challenges – such as a lack of electricity, poor supply chain management and lack of human resources – have kept the country dependent on imports.

In addition to this, the fall in the price of oil following the introduction of the 2014 tariff has limited access to foreign currency for Angolan companies, making payments to suppliers abroad difficult and, as the kwanza has weakened, imports have become significantly more expensive.

“If and when (the new tariff is) applied, the cost of imports should fall and this should help fight inflation. A less protectionist customs regime should also stimulate Angola’s trade with its neighbours and can help the country finally meet the long-standing promise of joining the Southern African Development Community’s free trade zone,” the EIU said.

“A review of Angola’s current punitive customs regime should give a positive boost to the national economy. However, it is still unclear when the new tariffs will be applied,” it said.

In 2016, Angola formalised its accession to the International Convention for the Simplification and Harmonization of Customs Procedures (Kyoto Convention) of the World Customs Organisation, which aims to facilitate international trade.

Each acceding country has a deadline of 36 months to apply the general rules of this agreement, which provides for the minimisation of customs controls between members, thus facilitating and simplifying international trade. Source: macauhub

Mozambique flagThe Maputo Corridor Logistics Initiative (MCLI) recently published a communication informing it’s stakeholders about the Single Road Cargo Manifest as received from the Mozambican Revenue Authority (MRA).

The MRA has informed MCLI that the 2nd phase of the Single Road Cargo Manifest process will come into effect from the 16th of June 2017, when all international road carriers transporting goods to Mozambique through the Ressano Garcia border post will be required to submit the Road Cargo Manifest on the Single Electronic Window platform in compliance with national and international legislation. MRA Service Order Nr 17/AT/DGA/2017, in both Portuguese and English, is attached for your consideration.

For information and full compliance by all members of staff of this service, both (National and Foreign) International Cargo Carriers, Clearing Agents, Business Community, Intertek and other relevant stakeholders, within the framework of the ongoing measures with a view to adequate procedures related to the submission of the road cargo manifest, for goods imported through the Ressano Garcia Border Post, in strict compliance to both the national and international legislations, it is hereby announced that, the pilot process for transfer of competencies in preparation and submission of the road cargo manifest to Customs from the importer represented by his respective Clearing Agent to the Carrier is in operation since December 2016.

Indeed, the massification process will take place from 15th of April 2017 to 15th of June 2017, a period during which all international carriers (national and foreign) who use the Ressano Garcia Border, are by this means notified to register themselves for the aforementioned purposes following the procedures attached herewith to the present Service Order.

As of 16th of June 2017, the submission of the road cargo manifest into the Single Electronic Window (SEW) for the import regime, at Ressano Garcia Border, shall be compulsory and must be done by the carrier himself.

International road carriers must therefore register for a NUIT number with the Mozambican Revenue Authority between the 15th of April and the 15th of June 2017 and the necessary application form is included. Road carriers are urged to do so as soon as possible to enable the continued smooth flow of goods through the border post.

Specific details can be found here! 

Source: MCLI

WCO

This initiative brings together the foremost experts in Customs matters to meet the demands of a complex international and cross-border trading system. Business professionals, Customs managers and administrators, border agency officials, international organization representatives and academia will benefit from the intensive interactive discussions of the most pertinent topics in the Customs environment today.

The courses will be led by technical experts widely respected in their various fields and will also include instructors from private sector companies, government institutions, and academia. The primary objective of the WCO Knowledge Academy for Customs and Trade is to provide an intense training for Customs and Business practitioners.

The Academy is open to all interested participants. Registration is free for one participant from each WCO Member administration. Additional participants from Member administrations, and non-WCO Member participants are subject to a fee. The Public Sector learning track will have interpretation in English and in French.

Why attend?  

  • Gain in-depth knowledge of the WCO’s tools and instruments
  • Express business needs and expectations on core Customs issues
  • Share knowledge, know-how and expertise with participants
  • Be part of a vital Customs-Business knowledge network.

Visit the WCO Knowledge Academy for Customs and Trade webpage for up-coming details of itinerary and programme.

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The notices detailing President Donald Trump’s promise to build a “big, attractive wall” were made public late Friday (3 April 2017) by Customs and Border Protection. The request from the Customs and Border Protection Department called for a 30-ft-high wall, but said that plans to build a wall minimum 18 ft in height may be acceptable.

“The north side of wall (i.e. USA facing side) shall be aesthetically pleasing in color, anti-climb texture, etc., to be consistent with general surrounding environment”, reads the RFP. In the documents, CBP says that the side facing the US must also be “aesthetically pleasing” in “color, anti-climb texture etc., to be consistent with general surrounding environment”.

And that’s before a new Trump budget, which came out Thursday, includes $2.6 billion over two years to begin construction of the wall. The government is asking for a 9-meter-high concrete barrier, extending 2 meters underground, built to be “physically imposing” and capable of resisting nearly any attack, “by sledgehammer, vehicle jack, pickaxe, chisel, battery-operated impact tools, battery-operated cutting tools [or] oxy/acetylene torch”.

Earlier this week Mexican lawmakers increased pressure on Mexican construction firms tempted to help build deeply reviled wall.

The proposal document asks contractors for 30-foot-long prototypes and mock-ups of 10 feet by 10 feet. Although Trump made it a centerpiece of his presidential campaign to get the Mexican government tol pay for the wall, expectations are low that the U.S.’s southern neighbor will give money while it’s being built or afterwards.

The specifications leave almost all of the design work to interested bidders, who now have about two weeks to develop and submit their plans, known as proposals. Trump called for the wall to stop illegal immigration into the United States from Mexico and to cut off drug-smuggling routes.

Senate Majority Leader Mitch McConnell (R-Ky) said in January that the wall would cost between $12 billion and $15 billion, though other estimates have put the price tag as high $25 billion.

There was some misplaced optimism that Donald Trump would immediately jettison all of his inane campaign promises upon taking office; that the threat of a wall at the Mexican border would be quietly tabled for its obvious insanity.

Proponents of a wall make two questionable assumptions: First, that there will be a continued north flow of refugees. Friday’s release did not address the overall cost of the wall. The city of Berkeley, California, said last week it would refuse to do business with any company that’s part of the border wall. The cost of about 1,000 miles of wall could cost $21.6 billion between now and 2020. Published on Aliveforfootbal website

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Forget increasing the number of Free Trade Zones at and around UK ports, real thought should be given to whether Britain could become a nationwide FTZ, a panel discussion at Multimodal heard today.

The discussion, organised by the Chartered Institute of Logistics and Transport, weighed the advantages and disadvantages of setting up more FTZs as Britain’s starts its exit journey from the European Union.

While Geoff Lippitt, business development director at PD Ports, said that there was no “desperation for the traditional type of FTZ”, he conceded that as UK ports enter a new post-EU member era, any method that could improve the competitiveness of the nation’s exports should be considered.

Tony Shally, managing director of Espace Europe, added that FTZs would give the UK a great opportunity to bring manufacturing back to the country.

Bibby International Logistics’ managing director Neil Gould went a step further, calling for the creation of a ‘UK FTZ’, to facilitate a joined up environment in which it is easier to move trade. “We need to think how we work together as an industry and how we join everything up to make the UK more competitive,” he said.

However, Barbara Buczek, director of corporate development at Port of Dover, sounded a word of caution, warning that FTZs could actually be detrimental for ro-ros, an important cargo mode for the south UK port. “It’s a great concept, but we also have to be mindful of the guys on the other side who we have to ‘play’ with,” she said, adding that she is “a bit sceptical” about how an FTZ plan could pan out. Originally published by Port strategy.com

THE NEW YOUGrowing electronic commerce (E-Commerce) has provided unparalleled opportunities for and has become a game changer in the international trade arena. It has revolutionized the way businesses and consumers are selling and buying goods with wider choices, advanced shipping, payment, and delivery options.  At the same time, E-Commerce, in particular Business to Consumer and Consumer to Consumer (B2C and C2C) transactions, is presenting several challenges to governments and businesses alike.

The WCO Working Group on E-Commerce (WGEC) together with its four Sub-Groups is steadily progressing with the four identified work packages, namely Trade Facilitation and Simplification of Procedures, Safety and Security, Revenue Collection, and Measurement and Analysis with a view to develop recommendations/guidelines on cross-border E-Commerce from a wider facilitation, security or revenue perspective, to collect and disseminate good practices/initiatives, and to enhance/update related WCO instruments and tools.

Given the current focus of the WCO Members and the private sector on this topic, the 215th/216th Sessions of the Permanent Technical Committee (PTC) held a whole day dedicated session on E-Commerce on 5 April 2017. During the ‘E-Commerce Day’, the delegates were provided an update with the work done thus far, as well as, the envisaged work by the four Sub-Groups on respective work packages. A number of valuable suggestions were provided by delegates from policy, business process, and operational perspectives to further enhance the WCO E-Commerce Work Programme with tangible and practical deliverables for providing a concerted and effective response to this growing channel of trade.

In addition, four thematic workshops relating to different dimensions of E-Commerce were organized by the Sub-Groups’ Co-Leads together with other partners. Through these workshops, some interesting facets of e-commerce were explored in detail and a number of interim recommendations were made concerning facilitation, risk management, safety and security, revenue collection, and associated capacity building through enhancement partnerships with all e-commerce stakeholders and augmented public awareness and outreach programmes.

In the course of the panel sessions, a number of collaboration success stories were identified, and they will be captured more formally and shared with interested parties, through the WCO webcorner.

The WGEC Sub-Groups will continue carrying out further work and a consolidated set of interim recommendations will be presented to the July 2017 Sessions of the WCO Policy Commission and Council. Source: WCO

Belissima!

March 29, 2017 — Leave a comment

The South African Revenue Service (SARS) has seized a Ferrari that was smuggled into the country. The luxury vehicle worth an estimated R13.8m was stored at a warehouse in South Africa since 2014.

In February 2015, however, the vehicle’s owner submitted an export declaration to take the car to the Democratic Republic of Congo through Beitbridge border post. A day later, there was an attempt to have the vehicle returned to South Africa through the same border post.

The vehicle has been detained and a letter of intent has been issued to the owner in terms of the Promotion of Administrative Justice Act No 3 of 2000 to enable them to make representation to SARS.

Screen Shot 2017-03-12 at 13.18.00The recent WCO publication of a Study Report on E-Commerce is based on a short survey answered by the Organization’s Members. The Report compiles Customs administrations’ practices as well as their ongoing and/or future initiatives related to the processing of cross-border low-value e-commerce.

Current practices, issues and challenges as well as initiatives and potential solutions are presented in each of the survey sections: Facilitation; Risk Management; Data Exchange/Cooperation with E-Commerce Operators; Control and Enforcement; Revenue Collection. Case studies are also widely used throughout the document to illustrate specific practices.

The survey was undertaken as part of the WCO Work Plan on Cross-Border E-Commerce aimed at addressing cross-cutting issues in relation to e-commerce and coming up with practical solutions for the facilitated clearance of low-value shipments, including appropriate duty/tax collection mechanisms and control procedures.

An overview of the WCO’s work so far, including tools, reports and interim recommendations issued by the WCO Working Group on E-Commerce (WGEC), as well as work to be completed in the future, is available here. Source: WCO

CP Mission 16_01_465_ Successful Stakeholders Training

During November 2016, 16 Customs officers from SACU member administrations received training in the area of successful stakeholder consultation. The training was facilitated by Accredited WCO Experts from the SACU region. As a result of the workshop, participants drafted National Stakeholder Consultation action plans which outline the administration’s national effort in necessary interaction with key stakeholders. The action plans will be used to guide and improve cooperation with businesses in the implementation of the Preferred Trader Programme once they are approved by the Member administrations. Source: WCO

Herewith a re-posting of an older blog article, fitting considering this years international Customs theme – Data Analysis.

Open sources, such as the Internet, include a considerable amount of useful information for Customs purposes. For instance, such information can benefit Customs risk management through improved ana…

Source: IRIS – WCO launches application to exploit open source information

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Predictably, the first edition of WCO News 2017 provides a spectrum of insight on this year’s Customs theme – “Data Analysis”. Here’s a preview:

  • Data analysis: seizing opportunities for effective border management – By Kunio Mikuriya, Secretary General, World Customs Organisation.
  • Data analysis for effective border management – the Canadian experience By Charles Slowey, Director General, Global Border Management and Data Analytics, Canada Border Services Agency.
  • Border management modernization in New Zealand forges ahead – By Murray Young, Chief Information Officer, New Zealand Customs Service.
  • Mirror analysis, a risk analysis support tool for Customs administrations – By Roger-Claver Victorien Gnogoue, Financial Services Director, Côte d’Ivoire Customs
  • Data analysis in risk management: Singapore Customs’ perspective – By Singapore Customs
  • API-PNR: an overview of the French system and the challenges faced – By Christophe Hypolite, PNR Mission, France
  • Developing data analyst skills: how the WCO contributes to expanding this specialized area of work By Tsendsuren Davaa, Ph.D., Professional Associate, Compliance and Facilitation Directorate, WCO
  • Cognitive computing for Customs agencies: improving compliance and facilitation by enabling Customs officers to make better decisions – By Stewart Jeacocke, Global Customs Expert, IBM, and Norbert Kouwenhoven, EU Customs Leader, IBM European Union Team

Nice to also see a contribution from one of SARS’ own titled “Customs and the environment: bringing about a better future for all” – By Roux Raath, Environmental Programme Manager, WCO. You can access and download the magazine by clicking here!

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Trade Facilitation Agreement, 22 February 2017.

A major milestone for the global trading system was reached on 22 February 2017 when the first multilateral deal concluded in the 21 year history of the World Trade Organization entered into force. In receiving four more ratifications for the Trade Facilitation Agreement (TFA), the WTO has obtained the two-thirds acceptance of the agreement from its 164 members needed to bring the TFA into force.

Rwanda, Oman, Chad and Jordan (pictured above) submitted their instruments of acceptance to WTO Director-General Roberto Azevêdo, bringing the total number of ratifications over the required threshold of 110. The entry into force of this agreement, which seeks to expedite the movement, release and clearance of goods across borders, launches a new phase for trade facilitation reforms all over the world and creates a significant boost for commerce and the multilateral trading system as a whole.

Full implementation of the TFA is forecast to slash members’ trade costs by an average of 14.3 per cent, with developing countries having the most to gain, according to a 2015 study carried out by WTO economists. The TFA is also likely to reduce the time needed to import goods by over a day and a half and to export goods by almost two days, representing a reduction of 47 per cent and 91 per cent respectively over the current average.

Implementing the TFA is also expected to help new firms export for the first time. Moreover, once the TFA is fully implemented, developing countries are predicted to increase the number of new products exported by as much as 20 per cent, with least developed countries (LDCs) likely to see an increase of up to 35 per cent, according to the WTO study.

At present, 10 out of 24 Members of East and Southern Africa (ESA) have ratified the TFA. These are; Mauritius, Botswana, Lesotho, Kenya, Zambia, Seychelles, Madagascar, Swaziland, Mozambique and Rwanda. So where to now South Africa?

The Australian Border Force reports that four men have been arrested in Sydney and Melbourne for allegedly importing approximately 254kg of cocaine and 104kg of methyl-amphetamine into Australia.

Combined, the drugs had an estimated combined value in excess of $186 million.

An Australian Federal Police (AFP) investigation commenced in December 2016 after the Australian Border Force (ABF) targeted a cargo consignment containing mining equipment which had arrived in Melbourne from South Africa.

ABF officers at the Melbourne Container Examination Facility examined the consignment which included industrial mining equipment. X-ray images revealed anomalies within an iron ore extractor.

It will be alleged that a physical examination of the iron ore extractor by ABF officers led to the discovery of 358 1kg block packages of cocaine and methyl-amphetamine, concealed within the equipment among a load of activated charcoal.

On 19 December 2016, the AFP commenced a controlled delivery where the consignment was delivered from Melbourne to a storage facility in Sydney.

Three men were arrested after accessing the consignment in Sydney on Sunday, 5 February 2017.

During additional search warrants on Monday, 6 February, 2017 on the Central Coast of NSW, AFP officers also seized a large sum of cash in a compressed block of AUD$100 notes. The notes are currently the subject of further forensic analysis.

A fourth man was arrested in Melbourne on Wednesday, 8 February 2017.

A 47-year-old (Watanobbi) man and 75-year-old male South African citizen were charged with:

  • One count of attempt to import commercial quantities of border controlled drugs, pursuant to subsection 307.1 (1), by virtue of subsection 11.1 of the Criminal Code 1995 (Cth) and;
  • One count of attempt to possess a commercial quantity of border controlled drugs, pursuant to subsection 307.5 (1), by virtue of subsection 11.1 of the Criminal Code 1995 (Cth).

A 39-year-old (Doonside) man was charged with:

  • One count of attempt to possess commercial quantities of border controlled drugs, pursuant to subsection 307.5(1) by virtue of subsection 11.1 of the Criminal Code 1995 (Cth).

A 38-year-old (Roxburgh Park) man was charged with:

  • One count of import commercial quantities of border controlled drugs, pursuant to subsection 307.1 (1) of the Criminal Code 1995 (Cth).

The maximum penalty for these offences is life imprisonment.

AFP Commander John Beveridge said the AFP and its partners are committed to protecting the Australian community from the scourge of illicit drugs through targeted detection and disruption.

“The AFP will continue to work with its partner law enforcement agencies to disrupt all forms of drug importation attempts and target those who believe they are above the law,” Commander Beveridge said.

“These arrests send a strong message to criminals who choose to import harmful drugs into our community for their own profits – you will be caught, no matter how creative you believe your concealment method may be.”

ABF Regional Commander Victoria and Tasmania, James Watson, praised ABF officers at the Melbourne Container Examination Facility for the outstanding detection.

“Our officers have the expertise and technology to detect even the most sophisticated concealment. In this instance, our upgraded container x-ray technology has been able to penetrate through several layers of steel, machinery and coal/stones to identify these concealed packages.

“The success of this operation once again highlights how effectively Australia’s border and law enforcement agencies are working together to stop illicit drugs from entering our community, and how instrumental the ABF is in keeping these dangerous drugs off our streets.”

Three men appeared before Sydney Central Local Court on Monday, 6 February 2017 where they were remanded in custody.

A fourth man appeared before Melbourne Magistrates Court on Wednesday, 8 February 2017 where he was remanded in custody to re-appear on 10 February 2017 for a filing hearing. Source: Border.gov.au

wco-icd2017As national Customs administrations and border agencies celebrate International Customs Day, no doubt showcasing their recent ICT endeavours, it is good to reflect not only on the available standards and tools which are becoming more available to Customs and Border Management Agencies.

The WCO spearheads and supports several initiatives aimed at fostering increased coperation and collaboration between member states under the banner of ‘Digital Customs’. In the post security era, throught is capacity building arm, the WCO champions global development of its Digital Customs concept and strategy. The WCO’s work programme in this regard covers a broad area of focus, for example:

  • to support the WTO Trade Facilitation Agreement,
  • the updating of related WCO instruments and tools,
  • ongoing promotion and maintainance of the WCO Data Model,
  • monitoring of new and emerging technological developments (3D printing, Big Data, Predictive Analytics, Drones and Blockchain),
  • promotion of e-services and apps,
  • exchange of information between stakeholders nationally and accross borders, and
  • promotion of the Single Window concept.

For most customs and border administrators, they have somewhere heard of, or to some extent are aware of the ‘buzz words’. The various chapters of the WCO through the working groups provide up-to-date developments in all facets on developments in the modern Customs operating and global trade environment. These are ably supported by several internal business organisations and umbrella associations adding credence to the developmental work and ultimately the standards, policies and guidelines published by the WCO.

In this modern era of uncertainty – global political and socio-economic risks – International Customs Day should be a combined celebration not only for Customs, but moreover, the associated supply chain industries and business intermediaries. If there was no trade in goods there would be no Customs or WCO. Without the providers of ‘big data’ there would be no need for data analysis. Without illicit activities there would be no need for expensive enforcement technology and equipment and the application of risk management.

Thanks to an imperfect and unequal world the WCO, through its association with the world’s customs authorities, big business and ICT service providers is able to develop a Digital Customs Maturity Model, which provides a road map for administrations from the least to most developed (mature rather). The pace and extent of maturity is undoubtedly determined by a country’s discipline and agility based on a clear strategy with the support and commitment of government and allied industries.Happy Customs Day!

WTO LogoThe WTO announced that the following countries have submitted their instruments of acceptance to the WTO Trade Facilitation Agreement (TFA):

  • 104. Ghana (4 January 2017)
  • 105. Mozambique (6 January 2017)
  • 106. St. Vincent and the Grenadines (9 January 2017)

Only four more ratifications from members are needed to bring the TFA into force. The TFA will enter into force once two-thirds of the WTO membership has formally accepted the Agreement.