The WCO has published the 96th edition of WCO News, the Organization’s magazine aimed at the global Customs community, providing a selection of informative articles that bring the international Customs and trade world to life.
This edition’s “Dossier” focuses on cross-border e-commerce, in other words those “transactions which are effected digitally through a computer network (e.g. the internet), and result in physical goods flows subject to Customs formalities”. We have invited several administrations to share information on the initiatives they are taking to build their capacity for monitoring the compliance of such flows. Despite every country’s situation being unique, we still believe that it is important to share experiences and explain initiatives.
The “Panorama” section addresses a broad variety of topics such as rules or origin, goods classification, training and reforms. It also includes two articles which respectively present, from a Customs perspective, two recent regional Free Trade Agreements: the Regional Comprehensive Economic Partnership (RCEP) and the African Continental Free Trade Area.
The “Focus” section brings together two articles dealing with non-intrusive inspection (NII). In the first one, the WCO Secretariat shows how some Customs administrations and manufacturers manage the decommissioning of NII equipment when it has reached the end of its life. The second article describes the challenges of X-ray image analysis and the value of training.
Lastly, in the “Point of View” section, Dutch Customs explains the structure of the ISO Audit Data Collection Standard and why it supports the Standard’s extension to cover data related to Customs and indirect tax audits, while an attorney from Israel argues that governments should consider waiving taxes on transport costs until we are back to “normal” and the effects of the COVID-19 pandemic are no longer being felt.
The Federal Executive Council (FEC) on Wednesday ratified the $3.1 billion anticipatory approval by President Muhammadu Buhari to concession the modernisation project of the Nigerian Customs Service (NCS) to a consortium named Messers E.Customs HC Project Limited. The concession is for 20 years.
The consortium is made up of Bionica Technologies W.A. Limited, Huawei, Smiths Detection, Nuctech of China, Larsen & Toubro Group, and Paramount Group.
The Minister of Finance, Budget, and National Planning, Zainab Ahmed, while briefing State House correspondents at the end of the virtual FEC meeting presided over by President Muhammadu Buhari at the Council Chamber, Presidential Villa, Abuja on Wednesday, said the project will be at zero cost to the Federal Government since the $3.1 billion being proposed for the project will be sourced by the concessionaire.
She said, “The Minister of Finance, Budget, and National Planning presented a memo, which is for the ratification of Mr. President’s anticipatory approval for the contract for the Customs modernisation.
“The purpose of the memo we presented to Council was for a project that will enable the complete automation of the Nigeria Custom Service processes and procedures using the application and information and technology in all aspects of Customs administration in favour of a firm known as E. Customs HC Projects Nigeria Limited For a concessionary period of 20 years.
“The main objective of this project is to completely automate every aspect of the Customs business and to institutionalise the use of smart and emerging technologies that will enhance the statutory function of the Nigeria Customs Service in the areas of revenue generation as well as trade facilitation and enhancement of security. The total cost of the project is in the sum of $3.1 billion. The consortium, the PPP group that has been approved are led by Messers Y Technologies with four other members.
“The committee that led this process also looked at the National Trade Impact process that has been going on for years and confirmed that the Nigerian e-customs project is a subset of the National Trade Impact and would prefer the Nigeria Customs to play its role in the national trading platform.
“The Bionica Technologies West Africa Limited, Bargain Securities and Supplies Nigeria Limited, these are lead sponsor and co-sponsor. We also have The Africa Finance Corporation (AFC) as the lead financier and Huawei Technology as a technical service provider.
“So, the council today, ratified Mr. President’s approval for the PPP concession for a 20-year period to Messers E. Customs HC Project Limited as a concessionaire for the delivery of customs modernisation project. This is a project that will not have an immediate cost to the government, the investors are providing all of the financings and this revenue will be deployed in three phases in the concessionary period of 20 years.
“The Nigeria Customs currently has some level of automation services but it is not all of its serves that are automated. This is an end-to-end automation of all of Nigeria Customs Service processes and it’s going to bring huge value to the country. So this investment of $3.1 billion is broken down into capital investment of $1.2 billion which will be done in three phases over 36 months by these investors and $1.1 billion is our projection of the operational cost over the 20-year period of the implementation of the project.
“This project has the potential to yield up to $176 billion of revenue and the consortia that are providing this investment are going to be paid over time according to the schedule that is negotiated for their investments including their profits and cost.
“So this is the best possible way for Nigeria to roll out an important capital project using funds from the private sector and providing service for the use of Nigerian people and the government.”
Asked if with the project Customs would overtake petroleum as a source of revenue for the country, the Minister said it was part of the diversification plan of government.
According to her, “We hope that at some point those revenues from oil will begin to be insignificant compared to revenue from the non-oil sector in the Nigerian economy. That is our aspiration and that is the true meaning of diversification.”
The Minister of Information and Culture, Alhaji Lai Mohammed in his explanation said, “The key point is that it is not costing the Federal Government one thing, the $3.1 billion being proposed will be sourced by the sponsors and the partners.”
15 companies were pre-qualified and were all invited to make presentations on their solutions to enable Nigeria realise its vision of attaining complete automation of its Customs operations and enthroning best practice methods as obtained in advanced countries.
Bionica Technologies W.A. Limited was the preferred bidder after a rigorous evaluation process. Bionica presented its bid together with a consortium namely, Huawei, Smiths Detection, Nuctech of China, Larsen & Toubro Group, and Paramount Group. The Africa Finance Corporation (AFC) is both an equity investor and the Mandated Lead Arranger (MLA), which will facilitate loan syndication with foreign and local banks.
Dubai Customs has introduced a sophisticated scanner that can detect 25 controlled and banned items in 25 seconds, in a bid to clamp down on smuggling. “The Ionscan 500DT can also detect as little drugs or explosives as one nanogram — which is one billionth of a gram” — according to Mohammad Juma Nasser Buossaiba, Director-General of the UAE Federal Customs Authority.
The highly sensitive scanner, equipped with HD touchscreen, is one of many other advanced equipment the authority has provided the Dubai Customs with in order to tightly secure all the crossing borders of the emirate. The new devices are in line with a memorandum of understanding signed recently between the UAE Federal Customs Authority and Dubai Customs. The Federal Customs Authority will also provide training to Dubai Customs staff on how to use the new devices, apart from the regular maintenance. Source: CustomsToday.pk and WCO IRIS
Battelle has produced a White Paper on ‘The Importance of Image Quality and Image Quality Verification with Imaging Based Screening Technology’. It highlights how the quality of the images produced by a CT used for security screening is critical to the ability of the CT to automatically detect explosives.
X-ray systems have been used for civil aviation security screening for decades to provide a means to quickly and efficiently examine the contents of an item (e.g. cabin baggage or hold baggage) non-intrusively. Originally, such systems relied only on screeners to scrutinise the X-ray image on a display to identify potential explosive threats. Beginning in the mid to late 1990s X-ray screening technology advanced to the point that X-ray systems could automatically detect potential explosive threats and highlight them and associated IED components for secondary on-screen review by a security officer, thus enhancing the probability of detection, reducing the false alarm rate and increasing bag throughput. Computed tomography (CT) explosives detection systems (EDS), based on technology used for medical imaging, were the first to provide this capability.
The Federal Aviation Administration (FAA) was the first to implement this technology in the late 1990s. The 9-11 tragedy in 2001 led to the creation of the TSA and accelerated the adoption of this technology in the U.S. The worldwide civil aviation community has been slower to adopt CT EDS, relying instead on other X-ray technology, but is now committed to its use for screening, with deadlines for 100% implementation in different regions of the world ranging from now to 2020 and beyond.
TSA’s model as a government aviation security regulator is different from its counterparts in most other countries in that TSA not only specifies requirements and certifies equipment but it also acquires and deploys this equipment at all 440 U.S. commercial airports. In support of this full life cycle model, TSA has developed robust test and evaluation methodologies to ensure the equipment it acquires is working properly before it is accepted for use. TSA’s deep understanding of CT and its experience with testing security screening equipment in general provide an invaluable reference for the rest of the worldwide aviation community relative to the successful acquisition of CT-based screening equipment.
The automatic detection capability afforded by CT is a result of two key elements of the system: 1) the three-dimensional image rendered by the CT; and, 2) the automatic threat detection (ATD) algorithm which analyses each three-dimensional image to look for suspicious items which it then will “alarm on” and highlight for subsequent review by a screening official. The system’s ability to perform this automatic detection function properly is therefore dependent on both image quality and the ATD. The ATD is based on software and is certified by government agencies (TSA in the U.S. and ECAC in the EU) to detect specific explosive threats in quantities of concern. Since the ATD is embodied in software, it does not degrade once it is developed and compiled. The same cannot be said for the image generation capability of CT which is reliant on the system’s hardware and proper system setup.
With a CT EDS, image quality is a function of many hardware and software parameters that support and make-up the imaging subsystem. Key components include the scanner conveyor(s), X-ray tube, X-ray detectors, X-ray gantry, power supplies, and cooling systems. If any of these elements is not working properly it can affect the image quality and thus the ability of the system to detect explosives.
Image degradation caused by certain elements of the system not functioning properly can be so subtle that the naked eye cannot perceive it on a screener’s display yet such image quality degradation can significantly diminish the ATD’s ability to detect threats. Each vendor has their own image quality kit for internal testing purposes, however, these kits do not conform to a commonly agreed standard and may not be adequately sensitive to all relevant system elements that affect image quality. How then does an operator know that their CT is producing images of acceptable quality? The answer is a standardised approach to image quality verification that verifies all key system elements impacting image quality and that has the sensitivity to detect issues that could impact detection performance.
TSA has always developed its own test articles for acceptance testing to ensure products meet their standard of acceptance and to assure consistency across all platforms. Up until very recently the TSA test articles for CT were based on a statistical method that was reliable but that only provided a go/no-go result. This system involved many test articles that were logistically difficult to manage and that required regular maintenance. To address these shortcomings and to improve the detail and value of the testing process TSA, several years ago, embarked on a programme to develop image quality test phantoms that would directly test the key elements of a CT as described above and provide empirical data that directly (not statistically) assesses CT image quality.
This empirical testing system was developed cooperatively by the Department of Homeland Security (DHS) Transportation Security Laboratory, TSA, the National Institute of Science and Technology (NIST), screening equipment OEMs and Battelle. It consists of two test phantoms, and mathematical formulae for analysing the CT images produced by the test phantoms when scanned. The system produces 78 image quality metrics that represent the performance of the key CT subsystems and components mentioned above. These 78 parameters are analysed through the accompanying software to determine the quality of the CT image. The test results can help diagnose specific CT subsystems or components contributing to poor image quality and the test data, if captured on a periodic basis, can be used for trend analysis to anticipate imminent failures and to optimise maintenance. This new standard has been published in the US as ANSI N42.45 2011. It will be published internationally in 2017 as IEC 62945.
In summary, the quality of the images produced by a CT used for security screening is critical to the ability of the CT to automatically detect explosives. CT image quality should be verified as part of the acquisition process for new CT and it should be periodically verified to ensure that the CT continues to produce images of acceptable quality. A new standard has been developed for worldwide use that can be used to perform this image quality verification (ANSI N42.45 (U.S.) and IEC 62945 (international). These standards define test phantoms and associated analytical formulas for determining CT image quality. Battelle now offers the phantoms and associated analytical software commercially under the trademarked name, Verif-IQ™ X-ray Image Quality Verification System. Source: airport-business.com (leading airport magazine)
SARS offers non-intrusive inspection capability at 3 ports of entry and exit to the Republic of South Africa namely, Port of Durban, Port of Cape Town and Beit Bridge border post. These facilities are intended to offer an expedited inspection service without having to physically break seals or de-van a vehicle or container. Given that the equipment offers high resolution capability based on x-ray imaging technology, safety and and occupational health standards are a priority.
SARS has recently published a standard (SC-CC-35) for external parties relating to the scanner operation as well as health and safety standards. Source: SA Revenue Service
Rotterdam World Gateway says it is the first deep sea container terminal with minimal customs presence in the European Union. Ronald Lugthart, Managing Director of Rotterdam World Gateway,has received the definitive customs permit and AEO certificate for RWG, handed over by Anneke van den Breemer, Regional Director of customs at the port of Rotterdam.
Lugthart said: “Due to the high degree of automation at RWG, the introduction of a 100% pre-announcement procedure for containers and cargo via Portbase and the implementation of simplified customs procedures, over 95% of the administrative process is now completely digitised.
“This means that the administrative process can operate independently of the logistic process at the terminal, enabling fast and reliable handling.”Anneke van den Breemer commented: “As Dutch customs, our goal is to minimise any disruption to the logistic process caused by the required customs formalities. RWG and customs have recently been collaborating intensively.
“At the RWG terminal, optimal use is now being made of the simplified customs procedures. This is in the best interest of all parties: not just of the terminal and customs, but of freight forwarders and hauliers as well.”
By applying these simplified customs procedures, RWG is able to implement a fully automated gate process for road hauliers. This has great benefits for hauliers because no physical customs handling has to take place at the RWG terminal and thus no stop has to be made.
RWG adds that it is the first terminal in the port of Rotterdam to act as an Authorised Consignee, which means the customs transit will be automatically ended upon arrival at the terminal. This gives parties involved extra assurance that this transit has been cleared properly.
In addition to simplified customs procedures, constructive cooperation between customs and RWG has resulted in the establishment of a new scanning facility that is fully integrated into the terminal’s automated logistic process and operates 24/7.
Furthermore, nuclear radiation detection takes place for all truck and rail handling, and a high percentage of the containers arriving and departing by barge will be inspected as well. Source: WorldCargoNews
SARS Customs intercepted a male traveller from Tanzania carrying narcotics worth over R12-million at OR Tambo International Airport yesterday (24 January 2016).
The bust took place when the 36-year old man, who was carrying two large suitcases, was asked to put his luggage through the Customs scanner. The scanner image revealed 10 clear plastic bags that contained a white crystal substance.
Upon investigation this turned out to be 10 bags of Ephedrine. The total weight of the consignment was 40.20 kg with an estimated street value of R12 060 000. The man has been handed over to the South African Police Service and he is expected to appear in court. Source and photos: SARS
The new Rapiscan 638DV 320kV is an advanced dual-view X-ray system with a 1837 mm wide by 1800 mm high tunnel opening for screening ULD type, ISO standard, and large cargo pallet type freight.
The new 638DV 320kV features high penetration, dual-view technology and explosives and narcotics detection alert supporting secure inspection and higher throughput for air cargo screening and customs applications.
Detection of Explosives and Narcotics Alert
Target™ and NARCScan™ are designed to assist operators in the detection of a wide range of explosives and narcotics respectively in real time during the scanning process by marking a potential threat on the X-ray image. Rapiscan detection algorithms are based on regulatory material analysis techniques.
Dual View Advanced Technology
As mandated by US and EU regulators, the 638DV 320kV utilizes a dual-view technology which produces two simultaneous images (vertical and horizontal views) of the scanned object. It provides a more complete image, thereby reducing the need for repositioning and rescanning and enabling rapid, accurate and comprehensive threat detection.
Ease of Use Providing Highest Throughput
With over 14 image processing tools and detection alert algorithms, the feature-rich software allows the operator to more easily and accurately search for contraband. Source: Rapiscan
The October 2015 Edition focuses on the subject of e-Commerce, among’st other developments at the WCO. There’s a discussion on a new book which provides insight into the economic benefits of implementing a single window system, as well as a review of a book titled ‘The Politics of Trade and Tobacco Control’.
Other articles include an overview of Russia’s Training Centre for NII System experts; Prospects for Africa’s Tripartite Free Trade Agreement in the light of lessons learned from the East African Community and a panorama of diverse discussion articles concerning Customs standards, education, and Customs response to challenges posed by a world of rampant crime and natural disasters. Download and enjoy! Source: WCO