Archives For UCR

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This edition of WCO News features a special dossier on the theme chosen by the WCO for 2018, namely “A secure business environment for economic development”, with articles presenting initiatives and related projects that contribute to creating such an environment. The articles touch on authorized economic operators, national committees on trade facilitation, coordinated border management, performance measurement, e-commerce, data analysis, and partnerships with the private sector.

For sub-Saharan African readers, look out for the write up of the Customs systems interconnectivity and the challenges and opportunities for Customs administrations in the SACU region.

Other highlights include articles on Customs systems interconnectivity in the Southern African Customs Union, on the experience of a young Nigerian Customs officer who participated in the Strategic Management and Intellectual Property Rights Programme at Tokyo’s Aoyama Gakuin University, on how the WCO West and Central Africa region is using data to monitor Customs modernization in the region, and on the benefits that can be derived by facilitating transit procedures.

Source: WCO, February 2018

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sars-edi-user-manualSARS has been operating Electronic Data Interchange (EDI) with its external stakeholders since 2001. More than 98% of all customs declaration (CUSDEC) transactions are today submitted electronically to Customs and the electronic submission of multimodal cargo reports (CUSCAR) is steadily increasing. Today, declaration processing is fully electronic end-to-end thanks to the availability of highly established EDI and Customs software service providers supporting the local customs and logistics community. SARS has also recently introduced a benefit for compliant cargo reporters who will be absolved of certain manual (paper) submission requirements once they attain an acceptable level of electronic submission compliance and data accuracy.

The ultimate objective is to ensure that all Customs-to-Business (C2B) transactions are electronic to enable full supply chain connectivity between the South African business community and Customs. This in turn enables the possibility of SARS accrediting or approving ‘supply chains’ as opposed to just individual trader segments (importers and exporters). The extent of electronic compliance is also a pivotal requirement for traders operating under the new Customs Control Act, to be enacted in the future.

SARS overall EDI capability extends further than declarations and cargo reports. In recent years Customs-to-Government (C2G) messaging has also been successfully established between SARS and the Department of Trade and Industry (dti) as well as the South African Reserve Bank (SARB). SARS is also engaging other government stakeholders concerning IT connectivity and data exchange.

Moreover, developments for cross-border Customs-to-Customs (C2C) data exchange are also in the pipeline and could come to fruition with the partner administrations in Mozambique and Swaziland in the foreseeable future. These initiatives will usher in increased supply chain connectivity through active use of the Unique Consignment Reference (UCR) between participating customs administrations. The ultimate objective here is the creation of mutual recognition benefits for local and cross-border traders based on their accreditation status agreed between the participating customs administrations.

The SARS Electronic Data Interchange (EDI) Manual (which can be downloaded from the SARS EDI webpage) has been updated with the latest versions of SARS Edifact Data Mapping Guides as well as improved diagrams explaining the functional composition of the various electronic messages specified for Customs processing. Also included are the requirements for registering as an EDI user with SARS.

The manual includes recent updates relating to cargo reporting (manifests) as well as the updated customs declaration message incorporating recent inclusion of customs surety, penalty and forfeiture requirements. The latter enhancement removes another document based requirement (the Form DA70 Provisional Payment) for Customs Brokers with the view streamlining data requirements, enhancing customs billing and customs status reporting with the trade and logistics community. This EDI Manual will be an important document over the coming months and years in that it will feature updated electronic requirements in support of the new Customs Control Act. Watch this space!

SACU IT Connectivity ConferenceRepresentatives from the Southern African Customs Union (SACU) gathered in Johannesburg, South Africa recently to refine requirements towards the development IT connectivity and electronic data exchange to facilitate cross-border customs clearance in the region. The workshop was convened by the SACU Secretariat under the sponsorship of the Swedish government and technical support from the World Customs Organisation.

Work already commenced way back in 2012 on this initiative. Progress in the main has been hampered by the legal agreement which to date not all members of the Customs Union have ratified. One of the features of this initiative, however, has been the continuity of support rendered by the WCO.

This event was indeed fortunate to secure – once again – the services of S.P. Sahu, former head of Information Technology at the WCO. After his secondment to the WCO he is now back in his home country where he is the Commissioner for Single Window based in Delhi, India.

S.P’s years of experience in both the technical and operational spheres of customs and the international supply chain enable him to articulate concepts and solutions in a manner which are practical and simple to understand. The workshop recognised the need to accelerate border processes and to this end the border process should be limited to physical examination, inspection, release; declaration processes should be done away from borders.

While simple enough in theory, the notion of clearance away from borders could pose challenges. Many of Africa’s borders – including those of a ‘One Stop’ kind – have not fully embraced the need to integrate processing and synchronize Customs activities. The challenge posed by ‘regional integration’ is one of surrendering national imperatives for a common regional good. It imposes a co-ordination of and development towards ‘regional objectives’ with the same level of purpose as national states do for their domestic agenda’s. In the case of SACU, it challenges member state’s stance on what real benefits the customs union should aspire to, beyond the mere sharing of the common revenue pool.

The outcome of the workshop resulted in a more refined, do-able scope and objective. With Mr. Sahu’s experience and guidance, the revised Utility Block (UB) speaks to all facets (legal, operational and technical) of the ‘regional agreement’ to the extent it specifies in the required detail the programme of action required on the part of the member stats as well as the SACU Secretariat. Refinement of the UB includes the removal from scope of the Release Message, Manifest Information and bond/guarantee message for the purpose of simplification of customs processes.

What remains are –

  • An Export & Transit Message – which includes the Unique Consignment Reference (UCR) validated and approved by the Export/Exit country.
  • An Arrival Confirmation/Notification Message – where the arrival date time would be when the import country recognises goods as received and places the goods under its customs procedure.
  • A Control Results Message – which includes the results of data matching, inspection and risk assessment based on agreed business rules.

In support of the above, SACU recently agreed on a framework of a UCR which must be further discussed and agreed upon by the respective member states. The UCR is a structured reference number which will be used by customs administrations of the respective member states to ‘link up’ import declaration data with the corresponding ‘export declaration’ data electronically exchanged by the export country.

Regional traders who have electronic clearance and forwarding capability will also play a role in the exchange of data through the exchange of the UCR on export and transit information with their counterparts or clients in the destination country. Once the exchange of data is operational between member states, it will be imperative for the importer to receive/obtain the UCR from the exporting country and apply it to his/her import declaration when making clearance with Customs.

The SACU Utility block will be tabled at a future Permanent Technical Committee meeting of the WCO for consideration and approval. A Utility Block is a concept structure which is proposed under the WCO’s Globally Networked Customs (GNC) initiative which seeks to aid and assist its members in the operationalisation of Mutual Administrative Assistance agreements.

Kunio Mikuriya, WCO Secretary General, and Maria Palazzolo, Chief Executive Officer of GS1 Australia and GS1 Board Member, at the GS1 Global Forum 2013

Kunio Mikuriya, WCO Secretary General, and Maria Palazzolo, Chief Executive Officer of GS1 Australia and GS1 Board Member, at the GS1 Global Forum 2013

GS1 is a non-profit organization dedicated to the development and implementation of global specifications to manage the supply chain, including product identification codes, barcodes and business-to-business standards for the exchange of accurate data. After longstanding cooperation at the technical level, the WCO concluded a Memorandum of Understanding (MoU) with GS1 in 2007 to formalize cooperative ties.

At the invitation of GS1, the Secretary General of the WCO, Kunio Mikuriya, spoke at the GS1 Global Forum 2013 in Brussels on 18 February 2013 where he highlighted the increasing cooperation between the two organizations. Recalling the evolution of Customs with a heightened focus on data management for assessing risks in the supply chain, the Secretary General underlined the importance for Customs to explore the possibility of making use of supply chain specifications that are available in the trade, such as codes and specifications developed by GS1.

He specifically referred to the new WCO Economic Competitiveness Package to explain how Customs contributes to enhancing national competitiveness by facilitating trade using a risk management approach. As this requires the application of information technology, data and message standards, and consignment identifiers, it is important to employ existing technologies and tools in the trade supply chain, through a partnership with business.

Sharing a common interest in supply chain management, including track and trace systems, both organizations have been cooperating in many areas in a complementary manner, as the WCO facilitates Customs-to-Customs and Customs-to- business data exchange while GS1 also facilitates business-to-business data exchange.

Areas of cooperation between the two organizations include the work at the United Nations Centre for Trade Facilitation and Electronic Business (UN/CEFACT) and the International Standards Organization (ISO) on standardization and specifications for supply chain management, the work on the Unique Consignment Reference Number (UCR) and the use of GS1 data for Customs risk assessment purposes.

The most recent collaboration includes the addition of a barcode function to the Interface Public Members (IPM) – the WCO’s information tool to fight violations of intellectual property rights at borders. Secretary General Mikuriya urged GS1 members to leverage the collaboration with the WCO at the global level by getting in touch with their respective local Customs administrations. GS1 members appreciated his speech and pledged to explore and enhance cooperation with Customs administrations. Source: WCO

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Delegates from the SADC member states gathered in Port Louis, Mauritius between 9 and 13 October to establish a SADC Customs ICT strategy for the region. The conference, sponsored by the United Nations Economic Commission for Africa, coincided with the 200th anniversary of Customs in Mauritius.

Following recent developments on IT connectivity and data exchange in the region, the conference addressed other areas of ICT in Customs which have a significant influence not only for internal Customs processing but its impact and effect on the broader stakeholder community. The conference was well attended with representatives from Angola, Mozambique, Lesotho, Swaziland, Namibia, Botswana, Tanzania, Zimbabwe, Seychelles, Mauritius, Democratic Republic of Congo, Malawi, and South Africa.

The event also drew international interest with representatives from the World Customs Organisation, Trans-Kalahari Corridor, SA Trade Hub, the East African Community, Southern African Customs Union, and the UN Economic Commission for Africa.

“Customs Connects, Borders Divide” conveyed the central theme for the event with the WCO IT and Capacity Building expert, Mats Wicktor, providing an enabling platform upon which the conference deliberations occurred. A detailed presentation clearly outlined the WCO’s the basis for standards, recommendations and guidelines, with specific reference to the Data Model, the Unique Consignment Reference and the most recent developments on Globally Networked Customs (GNC).

Other keynote addresses were made by Mozambique (DGA) on their experience in implementing the Single Window concept (for more details on this project visit URL: http://tfig.unece.org/case-stories.html).  Host nation Mauritius presented their Cargo Community System, and a number of other IT developments namely, e-Certificate of Origin, valuation database for 2nd hand motor vehicles, and the recently implemented Customs Enforcement Network (CEN) solution. SARS presented its Customs Modernisation journey highlighting some of the key ICT products and features and the respective efficiencies and trade facilitation benefits introduced for trade. Furthermore, it elaborated on its current bilateral data exchange initiatives with Swaziland, Zimbabwe, Mozambique as well as the IBSA countries.

The business end of the conference saw the finalisation, tabling and vetting of a draft SADC Customs ICT strategy. The strategy provides a broad framework, focussed around the concept of Customs-to-Customs data exchange. It seeks to create synergy between member states in regard to aspects such as transit management, common risk and enforcement principles, the entrenching of the One Stop Border Post concept, as well as automation of certificates of origin. From a SADC point of view, the strategy will support the realisation of its Strategic Plan – envisaged to include a Customs Union.