Transcript Slide 1

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
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Intergovernmental organization
specialized in Customs matters
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Established in Brussels in 1952
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Mission
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To enhance the effectiveness
& efficiency of Customs administrations
To facilitate trade and secure the
international supply chain
176 Members
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Collectively process over 98% of global trade
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WCO and Europe
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From a European to a global institution
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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
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All 27 Member States
Status akin to WCO Members (2007)
An outreach platform to connect with non-EU
economies
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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
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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
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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
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Global challenges (1)
Protectionism
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Global financial crisis & economic downturn
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Reduction in Customs revenue
Drop in trade volume
 Difficulty of accessing trade finance
 Increase in fraudulent activities of traders
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Customs under pressure on revenue
collection
Rise of
protectionist trend
Customs environment and role?
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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
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Global challenges (2)
Global trading system
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WTO Doha Round
Early conclusion desirable
 Trade Facilitation agenda: biggest economic gains
expected
 Standards available
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WCO Revised Kyoto Convention
Political support and mobilization of donors
 Aid for trade
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Regional integration
Convergence of rules of origin
 Synergy with global standards
 Capacity Building, especially for ACP countries
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Global challenges (3)
Supply chain security & facilitation
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Risk management approach: WCO SAFE
Framework of Standards
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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)
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Global challenges (4)
Environment
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Green Customs Initiative with UNEP
Enforce trade provisions of Multilateral
Environment Agreements
 Endangered species, ozone depleting substances,
hazardous chemicals, hazardous wastes
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Exchange of information – Environet
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Joint operations
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Hazardous waste (64 countries:
Europe-Africa-Asia/Pacific in 2009)
Customs and climate change
Border enforcement measures
 Border tax adjustment
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Global challenges (4)
IPR border enforcement
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Challenges
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Awareness
Serious criminal behaviour and economic loss
 Funding for organized crime
 Health hazards caused by users
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Enforcement legislation
 Operational capacity
 Political/business support
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WCO activities
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Diagnostic missions to identify gaps
Joint operations to improve coordination
Cooperation with rights holders
Sharing of best practices
Technical assistance and capacity building
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Global challenges (4)
Transnational organized crime
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Transborder crime: challenges & opportunities
Source of illicit profit
 Major seizure point; +70% of national seizures in
drugs and counterfeits at the borders
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Customs Enforcement Network
Communication and database for Customs seizures
 Joint operations: drugs in Central Asia,
money laundering with 84 countries
 Cooperation with the police
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WHO Framework Convention on
Tobacco Control
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Protocol on Illicit Trade in Tobacco Products
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Customs in the 21st Century
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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 …
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A relevant, visionary and indispensable
Customs for a better world
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