Transcript WCO presentation

World Customs Organization
FRAMEWORK OF STANDARDS
TO
SECURE AND
FACILITATE GLOBAL TRADE
(June 2005)
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Copyright © 2005 World Customs Organization. All rights reserved. Requests and inquiries concerning translation,
reproduction and adaptation rights should be addressed to [email protected].
Framework of Standards

Adoption at the Council in June 2005
• Framework
• Letter of Intent to implement the Framework

Letter of Intent
• 144 Members have indicated intention to implement

Implementation of the Framework
• Self-assessment checklist sent to 95 administrations
to assess their CB needs
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The Framework of Standards
(SAFE)

SAFE is a comprehensive instrument that covers all areas
of Customs controls

Gives equal importance to revenue collection, trade
facilitation, and security

Incorporates modern Customs principles (based on
Revised Kyoto Convention)
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Objectives of the Framework of
Standards
Establish standards that provide supply chain
security and facilitation to goods being traded
internationally;
Enable integrated supply chain management for all
modes of transport;
Enhance the capabilities of Customs administrations
to meet the challenges and opportunities of the
21st Century;
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Copyright © 2005 World Customs Organization. All rights reserved. Requests and inquiries concerning translation,
reproduction and adaptation rights should be addressed to [email protected].
Objectives of the Framework of
Standards
Strengthen networking arrangements between Customs
administrations to improve their capability to detect
high-risk consignments;
Promote co-operation between the Customs and
business communities;
Champion the seamless movement of goods through
secure international trade supply chains.
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Copyright © 2005 World Customs Organization. All rights reserved. Requests and inquiries concerning translation,
reproduction and adaptation rights should be addressed to [email protected].
Introduction

Secure & facilitate trade, improve customs operations

Modern customs principles
• Risk management, technology, partnership etc.
• Inclusive of the existing WCO instruments, incl. Revised
Kyoto, improved to address security and facilitation

Avoid unnecessary burden
• Different sets of requirements
• Duplication with other agencies’ requirements
 Modernize customs and prepare for the 21st Century
 Security and facilitation as two sides of the same coin –
efficient & effective customs
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Four core elements




Use of harmonized, advance electronic information to
identify high-risk cargo
• Inbound, outbound, transit
Consistent risk management
• Security threats
Inspection on outbound cargo, using non-intrusive
detection technology
• At the reasonable request of receiving nation
• Comparable risk targeting methodology
Benefit of facilitation for legitimate trade
• Business partnership
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Two pillars


Customs-to-customs network arrangements
• 11 standards
• Encourage cooperation among Customs administrations
on the basis of common and accepted standards
• Use of advance electronic information to identify highrisk cargo
Customs-to-business partnership
• 6 standards
• Establish partnership
• Identify business with a high degree of security
guarantee as “Authorized Economic Operator” (AEO)
• Tangible benefits to AEO
 Quicker movement of low-risk cargo, uniformity and
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predictability, etc.
Benefits

Nation/governments
• Security and facilitation – economic growth & development
• Improve revenue collection, proper application of national
laws and regulations
• Economic & social protection, support foreign investment

Customs
• Exchange of timely and accurate information
• Improve control, better allocation of resources
• Customs reform

Business
• Secure, facilitate and promote international trade
• Authorized Economic Operators
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Authorized Economic Operator
A party involved in the international movement of goods in
whatever function that has been approved by or on behalf
of a national Customs administration as complying with
WCO or equivalent supply chain security standards.
Authorized Economic Operators include inter alia
manufacturers, importers, exporters, brokers, carriers,
consolidators, intermediaries, ports, airports, terminal
operators, integrated operators, warehouses, distributors.
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Tangible Benefits for Businesses





Reduced examinations
Faster processing of shipments
Lower administrative costs
Lower insurance rates in some cases
Creation of an international system for identifying private
businesses that offer a high degree of security
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Enhanced risk management


Shift from 100% physical inspection to intelligence-based
selective approach
Advance data – pre-arrival risk assessment
• Reduction in clearance time
• Time Release Study

A consistent risk management
• WCO Global Information and Intelligence Strategy

Harmonize advance electronic information (security)
• Contained in the Customs Data Model
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Customs Data Model

A maximum framework of standard datasets / electronic
message formats for border procedures

B2B, B2G, G2G exchange of information
 UN/EDIFACT – interoperable with trade/transport
 Current work for regular update
• Information requirements of other agencies
• Single Window
 Unique Consignment Reference (UCR)
• Bring together information to monitor and facilitate trade
• Electronic staple – access key to tracking, audit,
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reconciliation
Framework
of
Standards
To Secure and Facilitate Trade
A
d
Advance
v Information
a
Risk Management
n
c
Inspection
e
I
Benefits
Customs /Customs
Customs/Trade
ISCM
Data Model
UCR
RKC
HS
120 countries
Capacity Building
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Implementation of the Framework

Phased approach
 In accordance with each administration’s capacity
and legislative authority

A holistic approach
 Political will and integrity


Involve other border agencies – integrated border
management and control
WCO Capacity Building
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Implementation of the Framework

Three phase approach

62 Diagnostic Missions completed and 46 in planning
stage (Phase 1)

14 in action planning/implementation phase (phase 2)
WCO Capacity Building

Phase 3 is WCO monitoring
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