Transcript CUSTOMS REFORM & MODERNIZATION

Fight against
Corruption in
Customs
János Nagy
Commissioner
Customs & Finance Guard
Republic of Hungary
Heritage of the third millenium is corruption :
Corruption is like AIDS:
 AIDS attacks the individual’s immune
system
 Corruption attacks the immune system
of society
 The known cases of corruption are only
the tip of the iceberg
 The material damages of corruption are
nothing compared to the ethic damages.
Causes of coruption:
 Intransparent
decision making process
 Lack of public scrutiny
 Inefficient controls
 Low risk of being detected
 „Shortage”
 Slow work procceses
 Weak judiciary system
 Selection problems
 Subjective factors
International co-operation
World Customs Organization
 Bilateral
agreements and projects EU Octopus
Project
 UN Global Program
 International Anti-corruption arrangements
 Conferences, exchange of information and
experience
Customs against corruption
Corruption jeopardises:
–Public confidence towards
customs
–Collection of revenues
–Increase of legal trade
Usual forms:
Gifts
 Donations

 Outside sponsors
 Free entertainment,
holidays
 Favoritism
Usual forms in Customs:
At border offices:
 Extraordinary
treatment
 Exercice of no or
inefficient controls
 Fictious entry or exit
controls fiktív
Usual forms in Customs:
At inland offices :
 Extraordinary
clearence
 Clearence without
checks
 Falsification of
documents
 Issue of false documents
Integrity in Customs - A Problem
“There are few public agencies in which the classic
pre-conditions for institutional corruption are so
conveniently presented as in a Customs
administration. The potent mixture of
administrative monopoly coupled with the exercise
of wide discretion, particularly in a work
environment that may lack proper systems of
control and accountability, can easily lead to
corruption”
James Shaver, WCO Secretary General (1998)
WCO EFFORTS
• The Arusha Declaration (1993, 2003)
• WCO Integrity Surveys (1998) (2000)
• WCO Integrity Forum (1998)
• WCO Integrity Working Group (1998)
• WCO Integrity Action Plan (from 1999)
• Integrity Workshops (from 1998)
• Global Fora on Fighting Corruption
The Revised
Arusha Declaration
1. Leadership and commitment from management
Responsibility and accountability
2. Harmonized and simplified Customs laws, regulations,
administrative guidelines and procedures
International standards – Low rates – No exemptions
3. Transparency
Certainty and predictability for clients
Consistent and easily accessible laws and procedures
Appeal system with independent adjudication
4. Automation
The Arusha Declaration (continued)
5. Reform and modernization
Inefficient practices lead to bribery
6. Audit and Investigation
Internal and external audit, check programs
Investigation and prosecution
Positive – Repressive strategies, Reporting corruption
7. Code of Conduct
8. HR Management
Salaries, Selective recruitment, Promotions
Rotation & relocation, Training, Appraisal
9. Morale and Organizational Culture
10. Relationship with the private sector
WCO Integrity Forum (1998)
Recommendations from the Forum:
• Work with the private sector and provide forum
• Work with other international organizations
• Provide leadership in Integrity Matters
• Strong link to Reforms and Modernization
• Update and implement the Arusha Declaration
• Establish the WCO Integrity WG and Action Plan
• Encourage regional activities
WCO Integrity Survey 1998
Areas researched:
• Forces impacting on Customs Integrity and Conduct
• Administrative Policy Elements to Ensure Integrity
• Trade and Tariff Policy Measures
• Guidance to Ensure the Implementation of Standards
• Evaluation Mechanisms
• Measures to Reduce Opportunities
• How ethical values are Communicated
• New Initiatives and Sharing of Best Practices
Forces Impacting on Customs Integrity and Conduct
Greater public and media
scrutiny
Transparency of government
decision-making processes
(accountability)
Increased expectations from
the public for quality services
Government performance
reviews
International trade
liberalization
Relationship between
opportunities for fraud and
the rise of criminal tendencies
0
10
20
30
40
50
60
70
80
90 100
Administrative Policy Elements Relied on
to Ensure Integrity
Instruction manuals to guide
staff on how to apply procedures
A disciplinary system and a will
to ensure the application
of procedures
An effective system of
internal control
Modern and transparent
Customs legislation
Transparent and fair recruitment
procedures
Service conditions conducive
to ethical behavior
0
10
20
30
40
50
60
70
80
90
100
The link to Customs reforms
“ … the very steps you would take to reform
government to reduce corruption are the same
steps you would take to reform government to
increase efficiency.”
(Vice-President Al Gore,
1st Global Forum on Fighting Corruption,
Washington, USA, 1999)
The WCO Integrity Action Plan
•
Promote ethical and professional behavior by
Customs through carefully articulated integrity
policies and programs
• Mobilize expertise to explain and maintain the
highest standards of integrity in WCO Members
• Stimulate a safer environment for Customs
(public sector and business)
The WCO Integrity Workshop
Objectives:
• Raise awareness of the need for reinforcing Customs
Integrity
• Disseminate information on developments, trends,
experiences, and best practices
• Assist the development of effective management skills,
structures and practices focussed on Integrity
• Devise a national/regional Customs Integrity Action
Plan
The WCO Integrity Workshop
Content
• Intended for senior managers at both
policy and operational levels
• What others do in the international arena
Sharing information on best practices
• Diagnostic study / SWOT analyses
• Developing strategies and policies:
Action planning exercise
• Involvement from both other government
agencies and private sector
WCO Integrity Self
Assessment Guide
• Based on the provisions of the Arusha Declaration
• Designed to assist Member administrations to analyse
their current situation and identify solutions which fit their
culture, needs, resources and operating environment
• Non prescriptive
• Flexible
• Compatible with wider reform and modernisation
strategies
WCO Model Code of Ethics
and Conduct
• Designed to provide a model for the development of
national Codes of Conduct
• Based on the unique Customs operating environment
• Already agreed as the APEC Region model
• Contains 11 key elements
• Designed to complement rather than replace civil
service codes
Lessons from the 2000 survey
Assistance need in the development of:
• Integrity
strategies/programs
• Code of Conduct
• Educational material/workshop focussed
on Integrity
• Effective management practices
• Exchange of information on best
practices and co-operation
internationally
The perpetretors:
Under
age of 30
Less than 5 years in service
Mainly front line officers
No more lonely wolves
Negative trends:
 Increased
number of chain actions
 Increased values
 Organized and international actions
 Sofisticated methods
Korrupciós krim inalitás az összlétszám hoz viszonyítva az elkövetők
szám a alapján
1,181%
1,200%
1,000%
0,802%
0,802%
0,800%
0,600%
0,837%
0,811%
0,737%
0,709%
0,540%
0,494%
0,400%
0,200%
0,000%
1993
1994
1995
1996
1997
1998
1999
2000
2001
What has been done by the Hungarian Customs?
Legal Instruments
 Rules of:
-- accepting gifts and donations
-- use of private mobile phone
-- possession of money
 Code of Ethics
 Control by the National Security Office
(Sensitive positions)
 Investigation by the Public Prosecutor
 Information leaflets
 Customs strategy against corruption and
measure plan
What has been done by the Hungarian Customs?
Technical and technological measures
Customs registration (VÁMREG 1.0)
Technological order
Specialised customs clearance
points
 Closed circuit video
Vehicle identification
system
What has been done by Hungarian Customs?
Organizational measures
 Internal Affairs
Division
 Internal Audit Division
 Risk Management Division
 Public Procurement Division
 Central Investigation Service (for major
cases)
 „Customs Commando”
 Specialized Revisers
 Mobile Control Units (for service cars)
What has been done by Hungarian Customs ?
Human resource management
 Selective recruitment
 Psychological tests
Training
on ethics
Professional training
Anti-Corruption Strategy of the
Hungarian Government
{Gov. Decree No. 1023/2001 (III.14.)}
 Asset
Declaration
 Screening of preparatory work for new
pieces of legislation
 Review of rules on business
confidentiality
 Review of Customs and excise legislation
 Transparency of decisions and processes
(Glass pocket Law)
 Anti-Corruption Bodies
Anti-Corruption Strategy of Hungarian Customs:
 Transparency
– In decision making
– In Customs legislation (fewer
exemptions)
 Less descretionary power (risk
management, automation)
 Bar coded Customs declaration forms
 Recruitment: competition, probationary
period, integrity, criminal records
 Fair salaries
 Rotation of officers
Organized crime and corruption has
international character, does not
stop at national frontiers!
Important: Joint thinking and action!
It is not enough to be clean, but one
needs look clean.
Contact and information
Dr. Janos Nagy
Commissioner,
Customs & Finance Guard, Republic of Hungary
• H-1095 Budapest, Mester u. 7.
• tel: + 36 - 1 - 2180084
• fax: + 36 - 1 - 4569501
• e-mail: [email protected]
• Internet: http://www.vam.hu