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Global Network at Borders - Borders divide, Customs connects The Institute of International and European Affairs Dublin, 2 March 2010 Kunio Mikuriya Secretary General World Customs Organization WCO in brief Intergovernmental organization specialized in Customs matters Established in Brussels in 1952 Mission To enhance the effectiveness & efficiency of Customs administrations To facilitate trade and secure the international supply chain 176 Members Collectively process over 98% of global trade 2 WCO and Europe From a European to a global institution Committee for European Economic Cooperation (1947) Customs Committee - predecessor of the WCO Economic Committee - predecessor of the OECD 17 European countries, including Ireland, were the original Members EU engagement All 27 Member States Status akin to WCO Members (2007) An outreach platform to connect with non-EU economies 3 Evolution of Customs Protection of domestic industry Protection of citizens Trade facilitation <Competitiveness> Trade supply chain security Environment Customs function Revenue collection of import taxes 4 WCO main activities Develop standards for Customs procedures Harmonized System (HS) – tariff classification Revised Kyoto Convention (RKC) – trade facilitation SAFE Framework of Standards – security Promote international cooperation Share information and best practices Capacity Building Columbus Programme – diagnostics for reform PICARD Programme – cooperation with universities Fragile states Integrity Regional approach – ownership at the regional level 5 Global challenges for Customs Protectionism Global trading system Supply chain security and facilitation Health, safety and the protection of society Environment IPR border enforcement Transnational organized crime 6 Global challenges (1) Protectionism Global financial crisis & economic downturn Reduction in Customs revenue Drop in trade volume Difficulty of accessing trade finance Increase in fraudulent activities of traders Customs under pressure on revenue collection Rise of protectionist trend Customs environment and role? 7 Global challenges (1) Protectionism WCO Communiqué to G20 (London, April 2009) Trade facilitation, capacity building, monitoring Incorporated in the G20 Communiqué From crisis to recovery Fiscal stimulus/discipline Trade kept open For fair and efficient revenue collection WCO Revenue package Trade facilitation Customs modernization 8 Global challenges (2) Global trading system WTO Doha Round Early conclusion desirable Trade Facilitation agenda: biggest economic gains expected Standards available WCO Revised Kyoto Convention Political support and mobilization of donors Aid for trade Regional integration Convergence of rules of origin Synergy with global standards Capacity Building, especially for ACP countries 9 Global challenges (3) Supply chain security & facilitation Risk management approach: WCO SAFE Framework of Standards Customs-Business Partnership Less intervention for high-compliance operators Certified as Authorized Economic Operators (AEO) Mutual Recognition Customs network arrangement Against US 100% scanning law Intervention for all US bound cargo before departure (to be implemented in 2012) 10 Global challenges (4) Environment Green Customs Initiative with UNEP Enforce trade provisions of Multilateral Environment Agreements Endangered species, ozone depleting substances, hazardous chemicals, hazardous wastes Exchange of information – Environet Joint operations Hazardous waste (64 countries: Europe-Africa-Asia/Pacific in 2009) Customs and climate change Border enforcement measures Border tax adjustment 11 Global challenges (4) IPR border enforcement Challenges Awareness Serious criminal behaviour and economic loss Funding for organized crime Health hazards caused by users Enforcement legislation Operational capacity Political/business support WCO activities Diagnostic missions to identify gaps Joint operations to improve coordination Cooperation with rights holders Sharing of best practices Technical assistance and capacity building 12 Global challenges (4) Transnational organized crime Transborder crime: challenges & opportunities Source of illicit profit Major seizure point; +70% of national seizures in drugs and counterfeits at the borders Customs Enforcement Network Communication and database for Customs seizures Joint operations: drugs in Central Asia, money laundering with 84 countries Cooperation with the police WHO Framework Convention on Tobacco Control Protocol on Illicit Trade in Tobacco Products 13 Customs in the 21st Century A New strategic direction for Customs 10 building blocks For better international cooperation Globally Networked Customs For better coordination at borders Coordinated Border Management For better business compliance and mutual benefit Customs-Business Partnership and more … A relevant, visionary and indispensable Customs for a better world 14 THANK YOU FOR YOUR ATTENTION www.wcoomd.org