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REPUBLIC OF TURKEY PRIME MINISTRY UNDERSECRETARIAT OF CUSTOMS

REPUBLIC OF TURKEY PRIME MINISTRY UNDERSECRETARIAT OF CUSTOMS Modernisation Project of Turkish Customs H. Cahit SOYSAL csoysal@gumruk.gov.tr FACTORS AFFECTING CUSTOMS ADMINISTRATIONS Growth in Trade Volume Trade Liberalisation Improvements in Technology

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REPUBLIC OF TURKEY PRIME MINISTRY UNDERSECRETARIAT OF CUSTOMS

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  1. REPUBLIC OF TURKEYPRIME MINISTRYUNDERSECRETARIAT OF CUSTOMS Modernisation Project of Turkish Customs H. Cahit SOYSAL csoysal@gumruk.gov.tr

  2. FACTORS AFFECTING CUSTOMS ADMINISTRATIONS • Growth in Trade Volume • Trade Liberalisation • Improvements in Technology • Falling Transport and Communications Costs • Increasing International Competition

  3. WHAT IS EXPECTED FROM CUSTOMS? • Speed up the release of goods • Rationalise the clearance of goods • Simplify procedures • Enhance customs control • Create and transfer statistical data in a timely and reliable manner

  4. MODERNISATION PROJECT OF TURKISH CUSTOMS • Modernisation Project of Turkish Customs is a subcomponent of Public Financial ManagementProject (PFMP) that was signed in 1995 with WorldBank in order to enable institutional reforms withinTurkishGovernment • IMF also provided technical assistance to the project: During July 1996-May 1999 2 Long term, 6 short term advisors worked for Turkish Customs

  5. FOCUS OF THE MODERNISATION PROJECT Modification of customs legislation and procedures to International Standards Development and implementation of Computer systems Reorganisation of customs administration

  6. MODIFICATION OF CUSTOMS LEGISLATION New Customs Law, comprised of 254 articles, was discussed and passed from the Parliament 05.02.2000 New customs procedures were determined for the computerized customs offices Customs Regulation, comprised of 891 articles and 81 appendices came into force 27.10.1999 11.02.1999

  7. DEVELOPMENT AND IMPLEMENTATION OF COMPUTER SYSTEMS A software called BİLGE (BİLgisayarlı Gümrük Etkinlikleri) (Computerized Customs Activities) has been developed and by the end of October 2001, 18 Regional Directorates and 47 Customs Directorates will be automated

  8. The international bid, for the deployment of the BİLGE system signed The pilot implementation of the BİLGE system started August 1999 January 2000 August 1998 The pilot implementation of the CUSTOMS/EDI programstarted DEVELOPMENT AND IMPLEMENTATION OF COMPUTER SYSTEMS

  9. %96 %94 100 90 %92 %91 80 70 IMPORT 60 50 EXPORT 40 30 20 10 0 • May 2001 • END of 2001 DEVELOPMENT AND IMPLEMENTATION OF COMPUTER SYSTEMS The current rate of automated customs transactions and the estimated rate of customs transactions at the end of this year

  10. REORGANISATION OF TURKISH CUSTOMS • In order to flatten the organisation and become more efficient: • 120 customs directorates were either merged or closed down • The functions of Regional Directorate of Customs and • Directorate of Customs Enforcement have been united to • increase service efficiency in 5 regions

  11. LESSONS LEARNT (I) • Never think of an organisation as a largemachine that can be taken apart andreassembled differently whenever needed! • Changes must be approached carefully with implications for both individuals and groups within the organisation

  12. LESSONS LEARNT (II) Commitment of Top Management & Assignment of A Project Leader • It is important to establish a Steering Committee to prove the support of top management • A chief executive should be assigned as the project manager and must have the power and authority needed to make the changes happen

  13. Information era in Customs LESSONS LEARNT (III) Commitment of Top Management & Assignment of A Project Leader

  14. LESSONS LEARNT (IV) Management of Change and Time Plan • It may be necessary to establish a permanent Project Unit with sufficient resources and must not be interrupted by daily operations • Change must be planned by developing an action plan

  15. LESSONS LEARNT (V) Communication and Training • Change presents unknowns that cause anxiety • Communication with stakeholders is a very crucial • feature for avoiding ambiguity-Do it as early as possible! • A Strategic Statement was very helpful in communicating • the reasons and objectives of change to our stakeholders • Customs Consultative Committeealsoprovided • participation from trade bodies to our Project

  16. LESSONS LEARNT (VI) Communication and Training • Adapting new technology means • carrying out procedures in a totally • new way which may cause fear • The fear of new technology can be • eliminated by intensive training • programmes

  17. LESSONS LEARNT (VII) Confidence • Those who have power in the current situation mayresist change since itthreatens their power • Be confident about yourself anddo notstepback in case of any threat! No Change!

  18. Rebellion at the airport! LESSONS LEARNT (VIII) Confidence

  19. MONITORING & REINFORCEMENT • It is very important to check after a suitable time to see if • the changes are working well or not: • If something is going wrong, modifications must be made • On the other hand if changes are working well and the • benefits can be demonstrated use this information to tell • everyone to reinforce the transition

  20. CHALLENGES • Implementation of e-commerce technologies will • require more resources and expertise • E-commerce and the implementation of Just in Time techniques will increase the number of transactions • Adapting e-commerce technology always hold the • possibility of cyber crime, sabotage and loss of system accidentally

  21. Thank you very much for your attention www.gumruk.gov.tr

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