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.

Related article

Another WCO resource for the Customs and Trade Professional

The WCO developed the Revenue Package in response to Members’ concerns in regard to falling revenue returns in the light of the global financial crisis and declining duty rates.

Revenue PackageCollection of revenue has historically been the cornerstone of a Customs administration’s responsibilities. For a number of years, Customs has been actively involved in protection of society and trade facilitation initiatives. More recently, the role of Customs has expanded; issues such as the fight against counterfeiting, counter-terrorism activities and the protection of the environment have featured high on the agenda of international Customs work programmes. Alongside these important topics, revenue collection continues to be an area of concern for Customs administrations. The global financial crisis has led to a downturn in international trade which has inevitably hit government revenues. Additionally, the global trend in the reduction of Customs duty rates, through unilateral, regional, and multilateral trade liberalizations, can potentially have the same effect.

The Revenue Package currently consists of all available tools and instruments relevant to revenue collection. This includes, inter alia, formal instruments and Conventions, guidance notes and training material. Members are encouraged to consult the Package to ensure that necessary requirements have been met and that all relevant material has been obtained by the administration and is being utilized as appropriate.

The Revenue Package is divided into six topics :

  • Topic 1. Facilitation and Procedures
  • Topic 2. Customs Valuation
  • Topic 3. Harmonized System/Nomenclature
  • Topic 4. Origin
  • Topic 5. Compliance and Enforcement
  • Topic 6. Capacity Building and Training

Under each topic, the prime text is referenced, where appropriate. For example, for Topic 1 (Facilitation and Procedures), the Revised Kyoto Convention is the prime text. This is followed by a list of supporting instruments and tools for that topic, providing information on content and availability. Web links are included to provide convenient access to the relevant material, which is either freely available to download or available for purchase from the WCO’s Online Bookshop. Source: WCO.

SARS “Trusted Trader” programme under the spotlight

With the implementation of the SARS Customs Modernization Program, accreditation has been revisited and SARS has taken a more robust approach.

South Africa is currently focusing on accreditation for customs procedures only. The Self-assessment Questionnaire was reworked and sent to a number of large importers, inviting them to participate in the “Preferred Trader Pilot Program.” Now more customs accreditation initiatives are underway.

In terms of a future focus on mutual recognition, bilateral discussion between EU and South Africa has commenced. The parties recently agreed to launch a customs project, financed under the Trade, Development and Cooperation Agreement (TDCA) facility, covering the implementation of the WCO SAFE Framework in South Africa. South Africa intends to align its Authorized Economic Operator (AEO) strategy with that of the EU to ensure that standards for both compliance and security match those of the EU.

The EU is South Africa’s main trading partner. The TDCA is the legal basis for relations between the EU and South Africa and provides the framework for cooperation in the social, economic, political and cultural field. Please click here for the full report – refer to  pages 32 -33 for South African AEO article. Source: Ernst & Young

Korea to implement Advance Manifest System

The Korea Customs Service (KCS) will introduce an Advance Manifest System in accordance with WCO standards as well as fulfill its own responsibilities as a governmental agency of duties for collection and border protection. This follows other major trading partners such as the U.S., Canada, EU and China who have already already adopted the Advance Manifest reporting. Known as KAMS, the new system will be implemented by KCS from 1st December, 2011. For more information click the hyperlink to download Korea Customs Advance Manifest System guideline.

WCO News – October 2011 Edition

WCOnews October 2011An eagerly awaited edition of the WCO news magazine once again promises loads of insight into the Customs world. This edition includes – per usual – a variety of topics, amongst which –

  • The Secretary General of the WCO shares his thoughts on global threats and the need to remain vigilant and responsive.
  • Latest developments in WCO areas of work: compliance and enforcement, procedures and facilitation, capacity building and tariff and trade affairs.
  • How the WCO and UNCTAD work together to foster international trade.
  • Using controlled deliveries to combat wildlife crime.
  • Knowledge and dialogue – the focus of the Open Day for Trade and the Knowledge Academy.
  • PICARD Conference promotes research-based knowledge.

There also interesting articles from around the world –

  • East and Southern Africa benefits from new MBA with Customs specialization.
  • New Zealand Customs Service’s role in natural disaster relief.
  • Engaging the trading community in Customs modernization: the Brazilian experience.

The WCO’s website now also features some new stuff, and in particular ‘scholars’ are encouraged to try out some of the ‘free’ e-learning courses. These are not just for the privilege of customs officers. The WCO has been working hard with trade organisations to provide ‘industry wide’ courses and programmes for the trade professional. Source: WCO

WCO Remembers September 11

Picture of Kunio Mikuriya at the World Customs...

WCO's Kunio Mikuriya

To commemorate the 10th anniversary of 9/11, WCO Secretary General, Kunio Mikuriya stated that “security, in particular global trade security, became a priority policy objective and is now part of Customs’ existing border protection portfolio to prevent such attacks from re-occurring”.

“Customs administrations across the globe have made considerable efforts to counter security threats,” stressed the Secretary General. “It is therefore fitting that as we commemorate the anniversary of 9/11, we renew our firm commitment to continue to take speedy action against terrorism and other forms of organized crime,” he concluded.

In response to 9/11, over the last 10 years the WCO has developed many international standards including the renowned SAFE Framework of Standards to Secure and Facilitate Global Trade, and further supported national Customs administrations to implement the Framework through a vigorous and highly successful capacity building programme.

This Framework promotes supply chain security through the submission of advance cargo information, the application of risk management, the use of non-intrusive cargo scanning equipment, the development of Authorized Economic Operator (AEO) programmes, and partnerships between Customs administrations and between Customs and their trade stakeholders.

To further assist its Members and others who play a role in global trade security, the WCO has published a Research Paper – The Customs Supply Chain Security Paradigm and 9/11: Ten Years On and Beyond. Source WCO.

Zero Tolerance – the saga of 100% scanning continues

Various opinions on this subject have been voiced over the last 3 years – the threat of sea and airborne cargo being used as ‘a delivery mechanism’ for a nuclear or terrorist attack. Besides the US calling for 100% scanning of containerised cargoes at point of origin, the reality remains that less than 4% of seaborne containers are being scanned at port of departure.

Post 9/11, the US was quick to initiate a multi-layered approach to securing America against another terrorist attack. This entailed a number of domestic and extra-territorial programmes. At the bottom of each of these lies an authoritarian distrust or question mark against the integrity of entities involved in the international supply chain. In as much as these modern-day Customs’ initiatives aim to deal with tangible and intangible threats, one can begin to question the motives used by many governments and organisations in introducing such programs.

Last year, the US postponed it’s requirement for 100% scanning of inbound boxes by at least two years because of technical and funding issues. (Lets not forget the massive outcry from foreign countries of origin who envisaged their own ports coming to a standstill). The 2014 deadline, as it stands, would require any container heading to the US to be scanned for conventional as well as radioactive threats before being loaded at a foreign port.

However, in June 2011, US Homeland Security chief Janet Napolitano went on record saying that 100% scanning was “probably not the best way to go”. She said Congress was considering a “more layered approach” to container security, a combined system of scanning, data and risk analysis, physical checks and closer co-operation with ports and countries around the world.

Could it be that the promise of mega-deals for the ‘security industry’ is under serious threat given limited success and results from these ‘supply chain’ initiatives? One hears less and less about the awarding of multi-million dollar contracts for non-intrusive equipment. Funding is a big issue, and no less an issue is the question mark which countries of origin have regarding the direct intrusion these US-domestic policies have on their local economies and supply chains.

The WCO went a long way in accommodating and addressing the question of international terrorism which in the view of many helped curbed the ‘paranoia’ which prevailed post 9/11. Still the question of motive and opportunity spurred several organisations and governments to support the many bilateral developments that ensued. The EU Commission for one was infuriated by the bilateral overtures of the CBP and EU Custom’s administrations before diplomatic agreement prevailed.

The bottom line is that a nation’s domestic policy overrides that of the wants and whims of the more affluent states. Several donor programs nowadays offer ‘security equipment’ free of charge to countries packaged with ‘capacity building programmes’ to instil the desired mentality of the donor country or agency. Traditional forms of customs control and human initiative/intuition are being cast out on the trash heap as primitive everywhere, yet there is little to show for the billions of dollars spent on anti-terrorism measures year after year. However, reading the article – Zero Tolerance – you get the impression of a little desperation on the part of the engineers and manufacturers of nuclear based security equipment – almost wishing a further nuclear calamity to prove their point! Source of article: www.portstrategy.com

WCO Knowledge Academy 2011

WCO Knowledge Academy 2011After an absence of almost a decade, the WCO convened a Knowledge Academy at its headquarters in Brussels. It took place right after the WCO Open Day for Trade, and ran for eight days, between 28 June and 8 July 2011. Over 50 delegates from both the private sector and WCO Member administrations travelled to Brussels from all parts of the world to attend the Academy. One of these was local systems architect, Anton Eccles (E-Tradex) based in Cape Town.

A total of 11 modules were offered focussing on key areas of WCO work, namely tariff and trade affairs (HS 2012, Rules of Origin, Valuation, Transfer Pricing), and facilitation and enforcement (WCO Data Model, AEO/SAFE, Risk Management). Following classroom activities participants travelled to the Port of Rotterdam for a presentation by Dutch Customs followed by a boat tour. This visit provided participants with the opportunity to see Customs procedures that were discussed and analyzed during the Academy in actual operation.

Thirty-four speakers, trainers and facilitators were involved: 17 were WCO staff members and they were joined by 17 external experts who were invited to address participants in either plenary sessions or during one of the training courses. Speakers included experts from three international organizations: the World Trade Organization (WTO); the International Monetary Fund (IMF); and the Organization for Economic Co-operation and Development (OECD).

In review, Anton maintains “the course was excellent and we had access to some really knowledgeable people. I think it was a good place to get an overall view of where the world of customs and global trade is moving too. Besides the course itself, the opportunity to share some experiences with people from other countries really gives you a good perspective what we do in South Africa”. The next Knowledge Academy is planned for July 2012.

South African visitors also attended the Trade Open Day.  Louise Wiggett (E-Tradex) and Mark Goodger (GMLS) stressed the importance of good partnerships between customs and trade. Both parties cannot operate effectively in their own capacity and it is only by joining forces that international trade can flow in a compliant, operationally effective and cost effective manner. 

To view a selection of photos from the WCO Council Session 2011, click here!

WCO News – Latest edition

WCO-News-June-2011The June 2011 edition of the WCO News is a bumper 56 pages. You will find several interesting articles relating to the latest developments and initiatives on trade facilitation. A particular article features East Africa’s efforts at facilitation at its land borders. Read also about –

  • Korea’s Client-oriented Logistics Information System which automatically measures the time taken for processing imported cargo at each stage of clearance from arrival at port to release (arrival at port > bonded warehouse > import declaration > permission > release), to diagnose and eliminate bottlenecks in logistics.
  • TradeFIRST, Singapore Customs’ latest initiative to improve trade facilitation through better partnerships with business. TradeFIRST is a single trade facilitation window that integrates the concepts of facilitation, compliance and risk management, and promises to make trade easier, fairer and more secure.
  • Latin America leads the way with AEO implementation, and
  • The concept of multi-layered security.

The Magazine is available in traditional PDF format or as an ebook. www.wcoomd.org