Tag / World Customs Organization

by Mike Poverello

WCO ICT Conference 2013 a resounding success!

WCO ICT Conference 2013 - Dubai

WCO ICT Conference 2013 – Dubai

The 2013 WCO IT Conference & Exhibition was held in Dubai, United Arab Emirates (UAE), from 14 to 16 May 2013 and co-hosted by Dubai Customs. The Conference theme, “Effective Solutions for Coordinated Border Management”, attracted over 1,000 participants from 93 countries and 56 Customs administrations, including 14 Directors General of Customs, other governmental agencies and the private sector, who were actively involved in sharing available information technologies, lessons learned from experience, and future visions.

The Conference was opened in the presence of His Highness Sheikh Mohammed Bin Rashid al Maktoum, UAE Vice-President, Prime Minister and Ruler of Dubai, showing strong support for the innovative approach towards Customs modernization. In his opening speech, His Highness, Lieutenant General, Sheikh Saif Bin Zayed Al Nahyan, UAE Deputy Prime Minister and Minister of the Interior, welcomed the participants and stressed the importance of collaboration for effective, coordinated border management applying technology. Secretary General Kunio Mikuriya said that the contribution of Customs to economic competitiveness required better communication, cooperation, coordination and collaboration with other border agencies. In this connection, technology enabled coordinated border management, and the WCO had developed the Data Model with a standardized data set that met the requirements of border regulatory agencies. He also stressed the importance of partnership with the private sector in finding innovative solutions for IT applications, which was the objective of this Conference.

The participants enjoyed a series of panel sessions with high-level speakers from Customs, other governmental agencies, international organizations and the private sector, discussing various aspects of coordinated border management and effective solutions in applying technology. Dr. Anwar Mohammed Gargash, UAE Minister of State for Foreign Affairs, shared his country’s vision of trade facilitation through investment in infrastructure and technology, as well as consistent policy development, while honouring international obligations.

A very large number of service providers joined the Exhibition and Tech Talks to explain the latest innovations in information technology, and they listened to the needs of Customs and other border regulatory agencies in their efforts to work together to develop joint IT solutions. Source: WCO

 

by Mike Poverello

Rwanda Customs Process Made Easier for Tax Compliant Traders

Headquarters of the Rwanda Revenue Authority

Headquarters of the Rwanda Revenue Authority

Thirteen companies, three of them Rwandan, last week signed a Memorandum of understanding with Rwanda Revenue Authority to be accorded preferential treatment when clearing their goods at customs. The Authorized Economic Operator (AEO) is a regional trade facilitation program recommended by the world customs organization to ease trade and customs clearance for tax compliant and prominent importers and exporters.

Delay in clearing goods at customs is one of the major impediments to smooth trading within the East African Community (EAC). It also contributes to making the EAC region one of the most expensive places to do business despite being the second most growing economy in the world. The AEO creates some kind of obstacle-free zone where traders in the import or export business, known to be complaint with customs requirements, are accorded special treatment to ease the process of clearing their goods while in transit.

The pilot project will see how the system works in reality and the beneficiaries have all been informed of their rights and which ports or borders to claim them from. Rwanda customs officials issue special identifiers to the beneficiaries to help them identify the benefiting traders once their goods appear at any of the designated custom points. These identifiers will be recognizable everywhere in the five partner states of the EAC where the beneficiaries will pass and claim their privileges as AEO.

The growth of global trade and increasing security threats to the international movement of goods have forced customs administrations to shift their focus more and more to securing the international trade flow and away from the traditional task of collecting customs duties.

Recognizing these developments, the World Customs Organization (WCO) drafted the WCO Framework of Standards to Secure and Facilitate global trade (SAFE). In the framework, several standards are included that can assist customs administrations in meeting these new challenges and developing an Authorized Economic Operator programme is a core part of SAFE. Source: AllAfrica.com

by Mike Poverello

Enforcement, Risk Management and Preferred Trade come together in the SACU Region

Enforcement, Risk Management and Preferred Trade come together in the SACU Region

Enforcement, Risk Management and Preferred Trade come together in the SACU Region

A WCO workshop on the topics of Enforcement, Risk Management and Preferred Trader was conducted in April in Johannesburg, South Africa, with the involvement of the WCO Secretariat, UK Customs and the member countries of the Southern African Customs Union – SACU (Botswana, Lesotho, Namibia, South Africa and Swaziland). Capacity Building in the mentioned areas in the SACU Region is part of the WCO Sub-Saharan Customs Capacity Building Programme financed by the Swedish Government through the Swedish International Development Cooperation Agency, SIDA.

An assessment including lessons learned was conducted concerning Operation Auto, targeted at second hand motor vehicles. This first ever regional enforcement operation in the 102 years of history of SACU presented good results as around 250 vehicles were seized by the Customs administrations. The Regional Intelligence Liaison Office contributed actively in the assessment process, ensuring that also future enforcement operations will benefit from the experiences gained.

The development of further risk management capacity is ongoing at the regional level and discussions were held concerning the establishment of common risk profiles. A number of high risk products have been identified and the formulation of profiles to engage illegal trade in these areas is ongoing.

Regarding the Preferred Trader program, progress can also be reported as SACU Members are approaching implementation at operational level. This project component fits very well with the risk management component as the latter is the foundation of the Preferred Trader approach. The process of selecting high compliant, low risk economic operators for the upcoming pilot scheme is well underway while capacity in verification and post clearance audit is being enhanced. A launch of (a pilot of) the regional Preferred Trade program is tentatively envisaged for the second half of 2013. Source: WCO

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by Mike Poverello

EAC Traders Encouraged to Grab AEO Business Opportunities

EACThe EAC business community has been asked to take advantage of the Authorized Economic Operator (AEO) scheme that seeks to cut down costs of doing business in the East African member states.

The AEO programme, launched in Dar es Salaam on Wednesday, is an entity involving importers, clearing agents, transport companies authorized to import and move cargo within the EAC region with minimal inspections and other customs interventions at checkpoints.

The Permanent Secretary in the Ministry of East African Cooperation Dr Stergomena Tax, launching the World Customs Organisation (WCO)-AEO pilot programme said, “The AEO status can provide companies with significant competitive advantages in terms of supply chain certainty and reduced import costs and finally to the final consumer.”

Apart from reduced transport costs, Dr Tax said the programme would also pull down storage charges because of minimal customs border inspections as well as few checkpoints or road blocks for transit goods.

The Swedish Ambassador to Tanzania Mr Lennarth Hjelmåker said the AEO scheme is a broader compliance strategy to reward compliant traders with simplification benefits which are concrete and predictable.

“Regional integration and cooperation are factors which are important for development, including creation of favourable conditions under which private sector can operate and provide for economic growth with focus on sustainability,” he said.

Sweden, through the Swedish International Development Cooperation (SIDA), has been supporting the work carried out by the WCO-EAC-AEO programme since 2008. Speaking on behalf of the Tanzania Revenue Authority (TRA) Commissioner General Mr Saleh Mshoro, the revenues body’s Finance Director said efficiency and effectiveness of customs procedures can significantly boost the nation’s economic competitiveness.

The launching of AEO programme marks the beginning of a journey between the region’s revenues authorities and the business communities in facilitating smooth and win win trading activities. Source: Tanzania Daily News

by Mike Poverello

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

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by Mike Poverello

WCO News – Innovation for Customs Progress

WCO News - No.70 February 2013No introduction needed here. This Edition of WCO News focusses on innovation with a collection of articles from around the globe. In addition to the highlights listed above, check out what’s happening in the world of Non-Intrusive Inspection.

  • Serbian Customs showcases its new Command and Control centre and anti-smuggling capability demonstrating efficient distribution of information between its head quarters and border-crossings and use of mobile X-ray scanners.
  • Dutch Customs discusses its foray into the unique territory of rail scanning, having recently acquired the worlds fastest X-ray rail scanner.
  • The head of Rapiscan Systems presents the changing requirements of customs cargo screening, particularly the emergence of ‘fused technologies’ that maximise the capabilities of non-intrusive detection and material discrimination.

Singapore Customs leads the way in the exploration and promotion of ‘green’ technologies having facilitated two R&D projects on eco-friendly vehicles.

Certificates of origin also feature. As part of its commitment to further facilitate trade by strengthening origin compliance through innovative thinking, the International Chamber of Commerce World Chambers Federation (ICC WCF) recently created an international certificate of origin certification and accreditation chain which will, as a first step, concentrate on non-preferential certificates of origin (COs) – the most common certificates issued by Chambers, and the only ones Chambers are authorized to issue in most countries. Learn how they intend to implement the Certificate of Origin (CO)  certification and accreditation chain scheme and what the underlying benefits are.

Also, learn how the EU proposes to strengthen supply chain security. Click Here! to access the magazine.

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by Mike Poverello

UCR and GS1 data to meet?

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

For more of the latest news and happenings at the WCO, please follow the news feed alongside (right).

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by Mike Poverello

Building Resilience in Supply Chains

WEF - Building Resilience in Supply ChainsOn 24 January 2013, the Secretary General of the WCO, Kunio Mikuriya, participated in a press conference dedicated to the launch of the World Economic Forum’s (WEF) Building Resilience in Supply Chains 2013 report. Sander van ‘t Noordende, Accenture’s Group Chief Executive for Management Consulting, introduced the report and its major findings, such as the top supply chain risks that include extreme weather, natural disasters, physical and cyber security threats, along with economic and political volatility. He highlighted that the report argued the need for a coherent and consistent framework to deal with supply chain resilience, partnerships between government, Customs and businesses, and the sharing information flows for risk assessment purposes.

Secretary General Mikuriya pointed out that supply chain resilience is very important for Customs, whose functions include ensuring that legitimate trade continues even in cases of disruption, an issue which has been addressed by a set of standards and instruments developed by the WCO, in particular, the 2011 WCO Resolution on the Role of Customs in Natural Disaster Relief.  He also stressed the importance of public-private partnerships in order to share security responsibility with trusted traders through the implementation of the WCO SAFE Framework of Standards to Secure and Facilitate Global Trade and its integral Authorized Economic Operator (AEO) programme.

Cooperation at intergovernmental level with longstanding partners of the WCO, such as the International Maritime Organization (IMO), the International Civil Aviation Organization (ICAO), the Universal Postal Union (UPU), the International Air Transport Association (IATA), the International Road Transport Union (IRU) and the World Shipping Council (WSC), was also emphasized by the Secretary General as being key to harmonizing standards and creating synergies among different stakeholders. In addition, he pointed out that transparency and trust among stakeholders in supply chains was of the utmost importance, as this led to a global cohesive approach and even stronger partnerships.

The Secretary General of the IMO, Koji Sekimizu, addressed the concerns of the maritime sector, in particular, the sustainability of international transportation within the context of supply chain resilience. He mentioned that along with the WCO, the IMO has built its approach on risk assessment and risk management, resulting in the adoption of the International Ship and Port Facility Security Code (ISPS Code), a comprehensive set of measures to enhance the security of ships and port facilities. He also touched on the issues of port infrastructure, piracy and port security, and underlined the importance of cooperation with other stakeholders, such as the WCO and ICAO. Source: WCO

by Mike Poverello

SARS – Modernisation milestone materialising

Interfront logo2

Its been some time since I’ve penned an article on the South African Customs Modernisation Programme. Aside from it being the SA Revenue Service’s prerogative to communicate and publish notice of its internal developments and plans, some caution always needs to be exercised observing bureaucratic protocol, ensuring that the official message is forthcoming from SARS. Given the widespread interest in the programme as well as the development of the Interfront [formerly Tatis] integrated customs border management solution (iCBMs) as a wholly owned development of South Africa, I think it not out of place to inform the public interest on this matter. Readership of this blog has an extensive global following and a specific interest in Interfront developments.

Unlike ASYCUDA, Sofix, e-Biscus, and a host of other integrated Customs-tailored business solution offerings, Interfront’s solution for SARS will not include a client user frontend. In other words, the Interfront system (iCBMs) will essentially drive declaration backend processing. This comprises a fully integrated declaration validation and processing engine, supported by a sophisticated tariff engine and duty calculator; the latter offering future web-based services for customs users. In order to compliment the SARS corporate and standardised user interface approach, the iCBMs interfaces with SARS’s revenue accounting, trader registration, risk management, and case management workflow systems. Not only does this leverage cost savings and efficiencies, but ensures a unified ‘workspace’ for all of SARS employees.

Much of the Interfront technology is therefore hidden to the customs user, with traders experiencing an identical interface with SARS Customs, as it does today. From the outset of the Customs Modernisation Programme (July 2010), the approach has followed pragmatic migration of customs electronic clearance processing – across its 30 odd legacy systems – towards an integrated clearance process that could mimic the functionality featured on the new iCBMs. The modern technology and scalability of Interfront offers the ability and agility to enhance service levels and efficiencies to another level. At the same time, operational policies and procedures have been modernised with the aim and intent of meeting the requirements contained in Customs new Control and Duty Bills.

Much of the ‘change’ experienced by both customs officers and the trade over the last 2 years has prepared the country for the eventual migration to the new system. These have been significant, and at times painful changes, not without anxiety and apprehension. Over the last 6 months an even more painstaking and taxing effort has been expended by the Customs Modernisation Team, Interfront and other service providers in addressing a seamless harmonisation and switchover of customs business from disparate legacy systems to a new customs technology platform. The “Parallel Run” has witnessed the daily comparison of customs clearance data between the old and new systems, identification and logging of disparities (bugs), modification of the two environments to ensure the same result is achieved. This has not been an easy and simple process, as any country having undergone a system switchover can attest to.

This month, February 2013, service providers to the customs industry are readying their resources to commence user testing. This implies that service providers (computer bureaus) will engage their clients to prepare test cases for submission to customs to test the new Interfront process. Given that Customs legacy systems and Interfront have been synchronised to a high level of compatibility, the process for traders should not reveal much difference to what they have experienced over the period of modernisation over the last 2 years. One area of note will be the structure and content of Customs Response messages. Traders will have to familiarise themselves and test their interpretation of these messages to ensure they perform or respond appropriately to the instructions.

Satya Prasad Sahu - Technical Officer at the WCO provided members of SACU, SADC and the EAC comprehensive guidelines for the development of the GNC Utility Block concept in Africa (February 2012)

Satya Prasad Sahu – Senior Technical Officer at the WCO provided members of SACU, SADC and the EAC comprehensive guidelines for the development of the GNC Utility Block concept in Africa (February 2012)

In terms of compliance and compatibility with international developments, the new iCBMs is engineered on the WCO Data Model. All relevant simplification processes as exemplified in the Revise Kyoto Convention are likewise factored into its design, although not all of these will be immediately available with the initial rollout. Introduction of the new Customs Control and Duty Acts will require these principles to be fully functional and operational, however.

The WCO Data Model is the pivotal design component around which most of the new system’s business and validation rules are centred. This in itself is a major achievement as it bodes well for all future ‘cross border’, customs-2-customs connectivity initiatives. In this regard SARS is well advanced in bilateral and multilateral projects with key trading partners, for example IBSA (cross-global trilateral initiative), and in Africa, we are working with SACU, SADC, COMESA and the EAC to bring about regional customs connectivity. On a bilateral basis, initiatives with Swaziland, Mozambique and Zimbabwe are developing nicely. A significant contributor to cross border/cross global customs connectivity is undoubtedly the excellent work brought about by the dedicated members of the WCO’s Globally Networked Customs adhoc workgroup. In June last year, the WCOs policy Commission unanimously endorsed the GNC architecture and Utility Block approach. African customs connectivity efforts have likewise adopted this model which ensures harmonisation and uniformity in approach, legal dispensation, data exchange, risk management and procedure. The WCO moreover plays a overseeing role in many of these GNC and capacity building initiatives across the globe – this assists greatly in sharing and learning of experiences.

I would think that the above should be sufficient to wet the appetites of customs practitioners, traders, ICT technocrats, and perhaps even legislators and bureaucrats on developments in South Africa. Subsequent to the launch of Interfront SARS will make its ideas and strategy relating to forthcoming initiatives known to trade and the business community. A Year of Innovation? Yes, and hopefully a happy tale that will bode well for the South African trade and supply chain logistics community, and some good fortune for Interfront in its business development in the region and beyond!

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by Mike Poverello

WCO announces the passing of Bill Nolle – proponent of the WCO Data Model

Australian Customs hosted visits from three international experts on trade data harmonisation - Bill Nolle, Dietmar Jost and Eric Sunstrum.

Australian Customs hosted visits from three international experts on trade data harmonisation – Bill Nolle, flanked by Dietmar Jost and Eric Sunstrum of the WCO.

It is with sadness we [WCO] learnt that our former colleague, the former Chairperson of the DMPT passed away on 29 December 2012 after a brief period of illness. He was fighting a very aggressive cancer.

Bill Nolle was a fabulous contributor to our [WCO] area of work and he has left his imprint in many aspects of our work at the Data Model Project Team and the Information Management Sub Committee. Version 3.0 of the WCO Data Model owes its richness and quality thanks to Bill’s splendid contribution. Bill authored the WCO Single Window Data Harmonization Guidelines/ UN/CEFACT Recommendation 34.  We [WCO] owe it to Bill the methodology of Gather-Define-Analyze-Reconcile for data simplification and harmonization. Bill brought passion to his work. His speeches and interventions were always intense and engaging and he will be missed in his professional environment.

His legacy includes an eLearning module in which you can hear him explain how data harmonization was carried out in Jordan. The module remains a favorite for the professional users and trainers alike.

Bill retired from US Customs and Border Protection where he worked for 30 years. He and his wife moved to the Outer Banks from Frederick, MD in 2009, to be near the beach that he loved. At the time of his death he was employed by Nathan Associates Incorporated and Crown Agents as a consultant. Bill travelled extensively during his tenures with US Customs and Border Protection, Nathan Incorporated, and Crown Agents, making friends on each continent in the world.

The following obituary was posted by a colleague in Jordan –

Bill has been a breath of fresh air that visited our country (Jordan), every once in a while as Customs Consultant. He was an inspiration and a driving force to all,  giving advice when needed, and always willing to help. A proud husband, father and (Opa), that we felt his family was our own, Not to forget, a professional Pita Bread baker,  we were hoping to someday try. One would think, God loved him so,  and wanted him closer more. Bill will always be in our hearts,  a father figure, a teacher, and a colleague holding one of the greatest hearts I’ve known. My deepest condolences to his loving family, and may he rest in peace.   Posted by: Juliette Najjar – Amman – Jordan – Friend / Colleague   Jan 17, 2013.

Sources: WCO, Gallup Funeral Services, and www.tributes.com

by Mike Poverello

Customs 2013 – the Year of Innovation

web_innovationWhile contemplating next year’s challenges and opportunities, I suppose it’s not a bad time to reflect on the WCO‘s theme for Customs Inc. in 2013. The Secretary General of the WCO, Kunio Mikuriya, is pleased to announce that 2013 will be dedicated to promoting innovation under the slogan “Innovation for Customs progress”. He believes that WCO Members and their partners will have the opportunity to promote innovative ideas and practices that they have implemented, new partnerships that they have developed, as well as creative solutions and technologies that they have adopted. Customs and its stakeholders are urged to be innovative and creative in taking forward the innovation theme in all its facets throughout 2013.

The Year of innovation 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.

Considering the age of the WCO (CCC), I thought the pictures below might conjure up some yesteryear profiles of male and female customs officers. These come from a book A Ladybird ‘Easy-Reading’ Book – ‘People at Work’ – The CUSTOMS OFFICER, which was around when I was a youngster in primary school. Needless to say, the content is perhaps meaningless where the period ‘gate-keeper’ approach to customs control has since been superseded by ‘automated risk management’, i.e. where a computer tells a customs officer what to search for, or what is suspicious or worthwhile expending energy on. Passenger processing has likewise seen a revolution in technology aids and controlled procedures. In many places it is the biometric reader which ‘facilitates’ expedited passenger/traveller processing. While verbal interrogation is still used it is merely a ‘level’ in the ‘layered’ approach in the modern customs risk management process. X-ray body scanners and drug-loo’s complete the customs officer’s enforcement toolkit. Yet, it still takes the ingenuity of a customs officer (and many instances his detector dog) to raise the ‘portcullis’ on crime.

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by Mike Poverello

New WCO Website

New look WCO WebsiteVisit the new WCO website. My impression is a very cool, uncluttered and refreshing design tailored for easy of use and the burgeoning social media space. Navigation is now a synch with the entire website content accessible via menu bar. Visit http://www.wcoomd.org/en.aspx now!

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by Mike Poverello

New Zealand – Contraband now available On-line

New Zealand Customs popular Contraband magazine is now available as an online publication. You can still however locate and link to previous publications that are downloadable in .pdf format. The latest edition includes articles on  –

  • What’s My Duty?, an import duty estimator to help people buying goods online know how much duty and GST they may be liable for.
  • China and NZ Customs to work more closely together on to combat the smuggling of pharmaceutical products used to manufacture methamphetamine.
  • Kunio Mikuriya, Secretary General of the World Customs Organization’s (WCO) visit to New Zealand – commending the Service for its strong reputation for border management of Customs.

Source: New Zealand Customs Service

 

by Mike Poverello

New Edition – World Customs Journal

A much-awaited edition of the World Customs Journal has been published and is available on their website follow this link. In his editorial, Professor David Widdowson reflects on the recent WCO conference on Excise Administration and Enforcement.  “An important subject for discussion at the Excise Summit was the increasing incidence of illicit international trade, particularly in relation to alcohol and tobacco products, and we are pleased to provide a useful overview of the topic in Section 3 of this edition of the World Customs Journal”, states Professor Widdowson (World Customs Journal, vol. 6, no. 2, p. v).  It is not often that the subject of Excise attracts much or any real conference publicity, so it is all the more a treat to have such a bumper edition on the subject with papers and articles from academics and practitioners.

In South Africa, the subject is somewhat subdued given the emphasis and prominence accorded to the Customs Modernisation Programme. Of late there have been determined efforts within the SARS administration to initiate some focus on Excise. This is only right since many of the so-called excise manufacturers and supporting industries play a significant role not only towards their contribution to the South African fiscus, but likewise have linkages with the import and export logistics supply chain. For this reason alone, the WCJ September 2012 Edition comes at a fortuitous time. I would also encourage you to read the article by Elizabeth Allen (a collaborator on my blog) titled – The Illicit Trade in Tobacco Products and How to Tackle It. 

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by Mike Poverello

Reform by Numbers – a reference work on Customs reform

The word ‘reform’ is a constant in the daily life of a customs officer. No customs administration among the 177 members of the World Customs Organization has not had a reform program in progress or planned. This is ultimately quite normal.A new World Bank publication “Reform by Numbers” will no doubt appeal to customs and tax reform experts and change agents.

It was written in the context of new and innovative policies for customs and tax administration reform. Eight chapters describe how measurement and various quantification techniques may be used to fight against corruption, improve cross-border celerity, boost revenue collection, and optimize the use of public resources. More than presenting ‘best practices’ and due to the association of academics and practitioners, the case studies explore the conditions under which measurement has been introduced and the effects on the administrative structure, and its relations with the political authority and the users. By analyzing the introduction of measurement to counter corruption and improve revenue collection in Cameroon, two chapters describe to which extent the professional culture has changed and what effects have been noted or not on the public accountability of fiscal administrations. Two other chapters present experiments of uses of quantification to develop risk analysis in Cameroon and Senegal.

By using mirror analysis on the one hand and data mining on the other hand, these two examples highlight the importance of automated customs clearance systems which collect daily extensive data on users, commodities flows and officials. One chapter develops the idea of measuring smuggling to improve the use of human and material resources in Algeria and nurture the questioning on the adaptation of a legal framework to the social context of populations living near borders. Finally, two examples of measurement policies, in France and in South Korea, enlighten the diversity of measurement, the specificities of developing countries and the convergences between developing and developed countries on common stakes such as trade facilitation and better use of public funds.

The “gaming effect” is well known in literature about performance measurement and contracts performance, because there is a risk of reduced performance where targets do not apply, which is detrimental to the overall reform. It is crucial to keep in mind that, by themselves, indicators “provide an incomplete and inaccurate picture” and therefore cannot wholly capture the reality on the ground. Measurement indicators must be carefully chosen to ensure that knowledge is being uncovered.

Measurement, for purposes of reform, should not be “copied and pasted” from one country to another. Due consideration must be given to the varying aims of the customs service and the specific political, social, economic, and administrative conditions in the country.

Measurement applied to experimentation is also about how donors, experts, and national administrations work together. On the one hand, national administrations in developing countries ask for technical assistance, standards, and expertise that are based on experiences of developing countries and use experts from such countries.These requests encourage the dissemination of such models. On the other hand, reforms of customs or tax administrations are represented as semi-failures in terms of the initial expected outcomes set by donors and politicians – usually the end of a reform is the time when donors and local administrations become aware of the gaps of their own representations of success.

While scientific and academic in approach, lets hope it means more than just miserable experimentation in target countries.

The book is available for free reading online – www.scribd.com or you can purchase from amazon.com.