First BRICS Heads of Customs Meeting

Delegates who attended the first BRICS Customs Heads of Customs Meeting [SARS]

Delegates who attended the first BRICS Customs Heads of Customs Meeting [SARS]

At a meeting hosted by the Commissioner near Bela Bela, South Africa from 7 to 8 March 2013, delegations from the Customs Administrations of Brazil, Russia, India, China and South Africa (BRICS) met for the first time. The BRICS Customs administrations exchanged experience and ideas in a spirit of openness so as to identify areas for cooperation so that they can most effectively and efficiently facilitate legitimate trade and combat illicit trade and Customs fraud. From 27 to 28 March, South Africa will also host the BRICS Summit in Durban, to be attended by various Ministers and the BRICS Heads of State.

Key points of discussion, focus and future cooperation –

Customs cooperation
The Heads of Customs committed themselves to consolidating and building on the cooperation that has already been established so that they can collectively curb Customs offences, safeguard the international supply chain and achieve effective enforcement of Customs legislation, while facilitating legitimate trade,both among BRICS countries and also globally.

Capacity building
As part of their cooperation to build Customs capacity in relation to human resources, technologies and procedures,the administrations would look into various practical and innovative solutions and endeavour to share their resources, knowledge and best practices with each other.

Cooperation at multilateral forums
A BRICS Customs mechanism will be established, including attachés networks based in Brussels and other strategic places, to identify issues of common interest, develop common responses and ensure regular engagement and interaction, including before important multilateral meetings.

Customs Mutual Administrative Assistance and the Exchange of Customs Information
The administrations also agreed to ensure that there is an enabling legal basis between them to support intra-BRICS Customs mutual administrative assistance and the exchange of Customs information. Such assistance and exchange will assist in combating illicit trade and protecting revenues and societies.

Facilitation of legitimate trade between BRICS countries
To further facilitate trade and reduce the Customs administrative burden on both trade and the administrations themselves, the administrations will exchange information in various areas of common interest and concern, including on the simplification of Customs procedures and the use of modern technologies and techniques.

The administrations will also work towards possible solutions for achieving mutual recognition of Customs controls and of trader management programs aligned to the Authorised Economic Operator (AEO) concept of the World Customs Organization (WCO), establishing Customs interconnectivity and supporting the WCO’s work on developing the Globally Networked Customs (GNC) model.

Opportunities for enforcement cooperation will also be explored, including possible joint actions, information sharing and other enforcement assistance. The use of international instruments developed by the WCO, including Conventions, Recommendations, Decisions and Declarations that support Customs trade facilitation, compliance and enforcement will be actively promoted.

Governance issues
A Governance Framework aligned to the overall BRICS commitments will be established. An annual BRICS Customs Heads meeting has been proposed whose deliberations would be informed to other BRICS forums, including in particular the Summit. Such a BRICS Customs Heads Meeting would be supported by a Customs working group under the guidance of the BRICS Heads of Customs. Source: SARS

AU considers continental Customs Connectivity

500px-Emblem_of_the_African_Union_svgThe African Union (AU) Technical Working Group on Interconnectivity has developed a ‘draft’ Strategy and Roadmap for Customs-2-Customs IT Connectivity on the continent. This strategy will effectively guide the process of the continental Interconnectivity of Computerized Customs Clearance and Information Systems in Africa. The ‘draft’ Roadmap envisages that the process of interconnectivity will take a period of 11 years with a total of four stages.

Stage 1 – by 2014, National states should have engaged one another (within their respective regions) on the matter of Customs connectivity.

Stage 2 – between 2013 and 2017, the AU has an extremely ambitious expectation that national Customs Administrations would have (at least commenced) if not completed Customs ‘connectivity’ within the various Regional Economic Communities (RECs) in Africa.

Stage 3 – between 2017 and 2020, the suggestion that Customs interconnectivity will be occurring between RECs across the African continent – North Africa: AMU; West Africa: ECOWAS and UEMOA; Central Africa: ECCAS and CEMAC; East Africa: COMESA, EAC, IGAD; and South Africa: SADC and SACU.

Stage 4 – between 2020 and 2025, consolidation of Customs IT-Connectivity across the RECs.

The ‘draft’ Strategy spells out the strategic objectives and activities at the national, regional and continental level that will need to be taken for this to be realized. The strategy also indicates the roles of all the major stake holders in the process.  This comes in the wake of several regional and bi-lateral initiatives to bridge the ‘cross-border divide’ through electronic exchange of structured customs information.

All in all an ambitious plan structured to meet the equally ambitious deadlines of the coming into being of an African Union. The real challenge in all of this lies with the Member States in being able to set aside and commit to regional and continental ambitions, over and above the already pressing and complex national agenda’s of their respective sovereign countries. In context of the African Union, the multiplicity of RECs in themselves add a layer of duplication…..is an “integrated Customs Union” in Africa going to continue to permit the existence of the respective RECs or will they be absorbed into the African Union? Member states need to begin speaking up on this issue otherwise accept being swamped by onerous commitments. No doubt the ‘international donor agencies’ wait eagerly in the wings to capitalise on Africa’s deficiencies.

Regional IT inter-connectivity takes another step

Delegates from at least 20 African Customs Administrations met in Pretoria, South Africa between 13 and 15 August to advance developments towards a common framework and approach to IT inter-connectivity and information exchange in the region. Convened by the SADC secretariat in consultation with COMESA and Trademark Southern Africa (TMSA), the three day work session focussed on uniform acceptance of the WCO‘s Globally Networked Customs (GNC) methodology, regional awareness of customs developments in the Southern and East African region, as well as joint agreement on customs data to be exchanged between the member states.

Mauritius Revenue Authority (MRA) shared its experience with delegates on the launch of its Customs Enforcement Network (CEN). Kenya Revenue Authority will soon be sharing enforcement information with its MRA counterpart. At least 22 African countries are expected to link up with the CEN network over a period of time. Customs enforcement information is the second pillar of the WCO’s GNC information exchange methodology; the first pillar being Customs information exchange. The latter provides for a holistic approach to the dissemination of common customs data derived from supply chain exchanges, for example declaration information, cargo information, and AEO information to name but a few. This information is vital for trading countries to administer advance procedures and better validate the information being provided by the trade.

Rwanda Revenue Authority introduced it’s RADDex programme which is a web-based IT solution for the exchange of cargo manifest information between participating states in the East African Community (EAC) – see related article below.

SADC and COMESA are rallying their members to participate in the initiative. At the current juncture, various member states have expressed keen interest to participate. While the regional intention is the linking of all customs administration’s electronically, initial developments envisage bi-lateral exchanges between Customs administrations which are ready to engage. The importance of the adoption of the GNC methodology is to ensure that customs connectivity and information exchange is harmonised and consistent across the Southern and East African region irrespective of whether countries are ‘early adopters’ or not.

WCO News – 60 year Anniversary Edition

The Organization is celebrating its 60th anniversary, an occasion which gives the global Customs community the chance to reflect on where the WCO began, where it is now, and where it hopes to go in the future. This issue highlights some of the WCO’s milestones past and present, we take a brief look at the WCO’s historical beginnings and subsequent development, follow one man’s forty year Customs journey, look at the history of containerization: the box that changed the world, and even step back to 1969 when the Apollo 11 touched down on the surface of the moon. In this dossier, not only does the WCO look back with pride, but also looks forward with optimism, conscious of the fact that the WCO has served the global Customs community with dedication for sixty years, and will continue doing so to ensure that Customs administrations remain well-positioned to deliver effective and efficient services around the world. Also in this issue –

  • Doorless containers now a reality,
  • US/EU mutual recognition programme,
  • New guidelines included in WCO Revenue Package,
  • Globally Networked Customs,
  • GS1 and the WCO,
  • Algeria Customs and performance management,
  • Georgia’s success in rooting out corruption,
  • Hong Kong moves forward with its e-Lock plans.

Source: http://www.wcoomd.org

GNC – not just another acronym, but the latest Customs buzz-word

WCO - Globally Networked Customs

With the WCO Council Sessions later in June this year, it is opportune to discuss perhaps one of the single most important developments in Customs Inc, the “Globally Networked Customs (GNC)” concept which aims to realize connectivity, data exchange, and cooperative work amongst the world’s customs administrations.

GNC is set to play a very important role in promoting trade facilitation, enhancing trade efficiency and safeguarding trade security; it will also greatly influence international rules and the development of the customs end-to-end operational process. By and large the SAFE Framework, WCO Data Model and the Revised Kyoto Convention provide specific standards for the development and implementation of national customs legal, procedural and automated systems. It is the GNC that will in future “industrialise” and harmonise Customs-2-Customs (C2C) information exchange requirements which underpin a country’s bilateral and multilateral trade agreements.

Briefly the need for GNC arises from the exchanges of information underpinning International Agreements in the commercial domain. These take time and are costly to implement. They are all different from each other creating diversity both for Members and trade. This is because each one of these agreements is built anew, handcrafted and tailor-made to meet the needs at hand. This approach will not scale up and countries broking an increasing number of International Customs Agreements are already encountering difficulty to maintain their delivery plan in line with their international policy ambitions. Below you will find links to 2 documents explaining the GNC. More information on the GNC will be provided once approved by the WCO’s Policy Commission later on in June 2012. Source: WCO.

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WCO/SACU – IT Connectivity and Data Exchange

WCO-SACU IT Interconnectivity and Data Exchange Conference

On the occasion of International Customs Day, in January earlier this year, the World Customs Organisation dedicated 2012 as the year “Connectivity”, which encapsulates people connectivity, institutional connectivity and information connectivity among the members of the global Customs community.

Over the last week and a half delegates from the WCO, SACU, UNCTAD, SADC and COMESA have been hosted at SARS, Pretoria to discuss and deliberate over an approach to implement ‘IT connectivity’ within the Southern African region. During the first week representatives from UNCTAD, SACU and SARS were briefed on important developments at the WCO on IT-Interconnectivity and Information Exchange. We were privileged to have Mr. Satya Prasad Sahu, Technical officer from the WCO – a leading expert in all matters of ICT in international customs matters – present the developments towards finalisation of a future international customs standard called “Globally Networked Customs” (GNC). It entails a structured approach that will enable customs authorities to formulate and document bilateral or regional ‘standards’ on a variety of Customs-to-Customs topics, for instance Authorised Economic Operators, Cross Border Information Exchange, Risk Management, etc. A representative from UNCTAD presented a synopsis of the proposed ‘cloud computing solution’ which the Trans Kalahari Corridor (TKC) plans to pilot between Namibia and Botswana along the TKC route in the next few months. During the course of this week, delegates , under the guidance of Satya, prepared a proposed approach for information exchange between members of the Southern African Customs Region. This document is based on the GNC Utility Block structure (defined by the ad Hoc Committee on Globally Networked Customs at the WCO) and served as the basis for discussion for Week 2.

Mr. SP Sahu (WCO) and delegates from SACU SecretariatWeek 2 saw the arrival of customs and IT representatives from COMESA, SADC, UNCTAD, SACU as well as a delegation from Mozambique Customs. Mr. Sahu was invited to chair the session, given his vast experience on the subject matter as well as international experience in national and regional customs ICT programmes. Delegates were treated to various lectures on the GNC, a comprehensive overview of developments on ASYCUDA (Customs solution developed by UNCTAD), various updates from within the customs region – Botswana, Namibia, Lesotho, Swaziland, Mozambique and SARS. Beyers Theron informed delegates of ongoing developments of the SARS Customs Modernisation Programme as well as key implications for neighbouring countries. SARS presented a live demonstration of SARS’ Service Manager solution, navigating through all the functionality now available to SARS Customs officials. Of significant interest to all was the new iPod inspection tool. This technology is given prominent feature in the latest edition of WCO News.

A large portion of the week was, however, spent on deliberating the proposed scope and content of the draft Utility Block on Information Exchange in the Southern African Region. Significant progress was been made to attain first, a common understanding of the scope as well as the implications this has for participating countries. Delegates will return home with a product with which to create awareness and solicit support in their respective countries. Over the next few months SARS will engage both SACU and SADCOM (combined SADC and COMESA trading blocs) to establish firm commitments for information exchange with customs administrations in these regions. This conference is significant for SARS and South Africa as a whole as it provides a uniform, standardised and practical approach for engagement with other international trading partners. To view photographs of the conference please click here!

WCO – 2012 is the year of Connectivity

WCO 60 Years AnniversarySecretary General of the WCO, Kunio Mikuriya, is pleased to announce that 2012 will be dedicated to promoting connectivity, including enhanced cooperation and communication, under the slogan “Borders divide, Customs connects”.

“Connectivity encompasses people-to-people, institutional, and information linkages that underpin and facilitate the achievement of Customs’ main goals,” said the Secretary General. “This theme is particularly relevant as the WCO prepares to commemorate its 60th anniversary in 2012,” he added.

The Year of Connectivity will be launched on International Customs Day, celebrated annually by the global Customs community on 26 January in honour of the inaugural session of the Customs Co-operation Council (CCC) which took place on 26 January 1953.

In 1994, the CCC adopted the informal working name “World Customs Organization” to better reflect its worldwide growth in membership which now totals 177 Customs administrations.

Customs and its stakeholders are urged to be innovative and creative in taking forward the connectivity theme in all its facets throughout 2012. The WCO invites the Customs community to diarise 26 January. Source WCO.

Insight behind the WCO Data Model

WCODMV3 Technical BrochureGovernments around the world have realized that rapid economic growth cannot be achieved in an environment where international trade processes are inefficient and cumbersome. Over the past two decades, serious attention has been devoted to the modernization of international trade and cross-border regulatory procedures. Countries have committed substantial resources to national projects in the areas of customs automation and Electronic Data Interchange (EDI) infrastructure.

Electronic ‘Single Window’ services delivery is now being demanded in several countries. Based on the principle of joined-up government services, the ‘Single Window’ environment has the potential to deliver transformational advantages to business by simplifying and unifying touch-points between members of the trade and the different government departments involved in cross-border regulatory procedures. In addition, new demands on supply chain security and facilitation have emerged, leading to the establishment of the WCO SAFE Framework of Standards.

This booklet provides a brief introduction to WCO Data Model Version 3.0. It explains the scope of the Model, its relationship with other international instruments such as the Revised Kyoto Convention, and its alignment with widely used international standards. The booklet is aimed at project leaders and Information Technology architects from Customs administrations and other cross-border regulatory agencies. The World Customs Organization hopes that this booklet will create a proper understanding of the value of the WCO Data Model as an indispensable instrument in projects that address modernization of regulatory agencies including Customs. Source: WCO.

Please visit: http://wcoomdpublications.org/data-model-3.html for pricing and conditions of online WCO Data Model usage and support. Available for Customs administrations and Trade Practitioners.

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