Expert Meeting on ICT Solutions to Facilitate Trade at Border Crossings and Ports

1. Expert Meeting on ICT Solutions to Facilitate Trade at Border Crossings and Ports 16–18 October 2006 Geneva Plano Correios

2. NOVEMBER 2003 OCTOBER 2006 Customs Reform CLADEC4

3. VISION • Increase Brazil’s competiveness in the international market through: • A Customs clearance system that: • protects national interests while • improving the efficiency of the global supply chain of companies that compete in the international market Customs Reform CLADEC4

4. MISSION • Improve Brazil’s global competitiveness through the implementation of a Customs clearance system that: • Protects revenue generation • Preserves the environment • Preserves the cultural heritage • Protects national security interests, and • Guarantees the adequate collection of information on trade • Guarantees a more predictable and faster movement of goods • Guarantees that the treatment of traders is based upon objective criteria Customs Reform CLADEC4

5. OBJECTIVE • Develop, propose, obtain approval, and implement a Customs clearance system that protects national interests and facilitates foreign trade Customs Reform CLADEC4

6. CUSTOMS MODERNIZATION OBJECTIVES Transaction Cost (Service Delivery) Current State (4Q04) Harmonization (Data & Information) Revenue (Collections) Low Transparency (Processes & Functions) High Risk (Security & Integrity) Transaction Speed Customs Reform CLADEC4

7. CUSTOMS MODERNIZATION OBJECTIVES Transaction Cost (Service Delivery) Target State (4Q06) Current State (4Q04) Harmonization (Data & Information) Revenue (Collections) Transparency (Processes & Functions) Risk (Security & Integrity) Transaction Speed Customs Reform CLADEC4

8. CUSTOMS MODERNIZATION OBJECTIVES Transaction Cost (Service Delivery) Target State (4Q06) Current State (4Q04) Service Efficiency Data Simplification Harmonization (Data & Information) Revenue (Collections) Accounting Controls Process Simplification Transparency (Processes & Functions) Risk (Security & Integrity) Process Integration Enforcement Transaction Speed Customs Reform CLADEC4

9. THE GOAL Tracking and Informations System Physicial Flow Importing & Exporting Period 1 Fiscal Flow Period 2 Document Flow Period 3 “Intelligent” System of Oversight and Control Primary goals of the modernization proposal: separation of movement of goods and documents, implementation of intelligent tracking systems and risk analysis, implementation of informed control processes and information, and establishment of partnership with the Trade. Customs Reform CLADEC4

10. DISPERSED GROUPS HAVE LITTLE LEVERAGE Customs Reform CLADEC4

11. BUT ONE VOICE BUILDS STRENGTH Customs Reform CLADEC4

12. AN ALLIANCE IS THE MECHANISM TO BRING ABOUT CHANGE • Customs has a strong corporate culture dominated by a control bureaucracy • There is no previous experience of working together with the private sector • Foreign traders interested in change are highly dispersed and not organized to pressure for change. • A momentum for change can be created by forming a coalition of business associations focused on customs reform. Customs Reform CLADEC4

13. ASSOCIATIONS IN THE PROCOMEX ALIANCE • CNC - Confederação Nacional do Comércio • CNI - Confederação Nacional da Indústria • CNT - Confederação Nacional dos Transportes • CACB - Confederação das Associações Comerciais do Brasil • FIESP - Federação das Indústrias do Estado de São Paulo • FIRJAN - Federação das Indústrias do Estado do Rio de Janeiro • FIEMG - Federação das Indústrias do Estado de Minas Gerais • FIEB – Federação das Indústrias do Estado da Bahia • FIEP - Federação das Indústrias do Estado do Paraná • FACESP - Federação das Associações Comercias do Estado de São Paulo • FECOMERCIO – Federação do Comércio do Estado de São Paulo • ACRJ - Associação Comercial do Rio de Janeiro • ABAG - Associação Brasileira de Agribusiness • ABECE - Associação Brasileira das Empresas Comerciais Exportadoras • ABECEX – Associação Brasileira dos Executivos de Comércio Exterior • ABEPRA - Associação Brasileira das Empresas Operadoras de Regimes Aduaneiros • ABIA - Associação Brasileira da Indústria de Alimentos • ABIEC - Associação Brasileira da Indústria Exportadora de Carne • ABIMAQ - Associação Brasileira da Indústria de Máquinas e Equipamentos • ABINEE - Associação Brasileira da Indústria Elétrica e Eletrônica • ABIPLAST - Associação Brasileira da Indústria do Plástico • ABIQUIM - Associação Brasileira da Indústria Química • ABIT - Associação Brasileira da Indústria Têxtil e de Confecção • ABTC - Associação Brasileira de Transportadores de Carga • ABRAEC - Associação Brasileira das Empresas de Transporte Internacional de Cargas • ABRATEC - Associação Brasileira dos Terminais de Contêineres de Uso Público • ABRIFAR - Assoc. Brasileira dos Revendedores e Importadores de Insumos Farmacêuticos   • ABRETI - Associação Brasileira de Empresas Transportadoras Internacionais • ADEBIM - Associação de Empresas Brasileiras para a Integração de Mercados • AEB - Associação de Comércio Exterior do Brasil • AHK - Câmara de Comércio e Indústria Brasil-Alemanha de São Paulo • AMCHAM – RJ - Câmara de Comércio Americana – Rio de Janeiro • AMCHAM – SP – Câmara Americana de Comércio – São Paulo • ANUT - Associação Nacional dos Usuários do Transporte de Carga • ASLOG - Associação Brasileira de Logística • CENTRONAVE – Centro Nacional de Navegação Transatlântica • CETEAL –Centro de Estudos Técnicos e Avançados em Logística • CEXPAR – Instituto Centro de Comércio Exterior do Paraná • CLI – Câmara de Logística Integrada de Comércio Exterior • CBC - Câmara Brasileira de Contêineres e Transporte Multimodal • ELETROS - Associação Nacional de Fabricantes de Produtos Eletroeletrônicos • GIE – Grupo de Investidores Estrangeiros • GMBS – Grupo Metropolitano da Baixada Santista • ICEX - Instituto de Estudos das Operações de Comércio Exterior • NTC - Associação Nacional de Transportes de Cargas e Logística • SINDIPEÇAS – Sindicato Nacional da Indústria de Componentes para Veículos Automotores • SINDIEX – Sindicato do Comércio de Importadores e Exportadores do Estado do Espírito Santo • SOBEET – Soc. Brasileira de Estudos de Empresas Transnacionais e da Globalização Econômica Plano Correios

14. CHALLENGES • Customs does not have a tradition of working with or listening to the private sector. • “Brazil is different” • Not invented here syndrome • Lack of community spirit • Multiplicity of needs • Dependency on Government systems monopoly -SERPRO Customs Reform CLADEC4

15. OUR STRATEGY • Create legitimacy • Generate a focused movement • Develop the conditions for change • Bring about desired change Customs Reform CLADEC4

16. DEVELOP LEGITIMACY • Obtain the needed institutional framework • Develop a consensus about the type of change • Obtain recognition by the private sector • Become accepted by customs Customs Reform CLADEC4

17. 1 Partnership Customs Reform CLADEC4

18. ACTION PLAN ORIGINAL UNCTAD Regional Meeting2003 Feb Jan Dec Mar Apr May Jun Jul Aug Set Oct Nov Nov Exploratory Phase Formation of Private Sector Alliance Public Sector Alliance Naming of working group Final Proposal Second Phase – Working Group 7 8 9 1 3 4 5 6 2 Preparatory Meeting UNCTAD World Summit in São Paulo TIC & Commerce ENAEX PROCOMEX Seminar Implementation Customs Reform CLADEC4

19. ADJUSTMENTS Leadership Second Phase – Working Group Building Confidence Credibility Second Phase – Working Together Customs Reform CLADEC4

20. PARTNERSHIP Win-Win Plano Correios

21. TRUST!! Customs Reform CLADEC4

22. MEMBERS OF THE INSTITUTE DHL 3M ABRETI BASF S.A. BERNARDI, LEVA & GUIMARÃES GALLO ADV BOSH DELOITTE CISA TRADING COLUMBIA COMEXPORT COTIA TRADING DEICMAR DELOITTE TOUCHE TOHMATSU DRY PORT EATON EMBRAER FEDEX FERTIMPORT/BUNGE FIAT GRUPO CCE HAMBURG SÜD INDAIÁ LOGÍSTICA KUEHNE & NAGEL LIBRA TERMINAIS LOCALFRIO ARMAZENS MAHLE METAL LEVE MATTEL METROPOLITAN NYK LINE ROLLS-ROYCE BRASIL SANTOS BRASIL SCHENKER DO BRASIL SIEMENS TITO GLOBAL TRADE TNT EXPRESS TRADEWORKS LOGÍSTICA UNILEVER UPS VOLKSWAGEN TRANSPORT Customs Reform CLADEC4

23. BRAZIL IS RIPE FOR CHANGE • Tremendous export growth • More integration in world economy • World Bank loan • Trend around the world • Brazilian role in WCO • Trade facilitation becomes an objective of COANA Customs Reform CLADEC4

24. Customs Reform CLADEC4

25. Customs Reform CLADEC4

26. CHALLENGES • INSTITUTIONAL STRUCTURE • Government • Number of Authorities • Private Sector • Conflicting Objectives • Short-term focus • CONTINUE TO FOCUS ON NORMS RATHER THAN PROCESSES • LIMITED SYSTEMS RESOURCES • LIMITED INTERNATIONAL INTEGRATION Customs Reform CLADEC4

27. KEY STRATEGIES • Framework Agreement is the new paradigm • Customs working with Customs • NEED FOR A NEW INTERNATIONAL ICT SYSTEM • ASYCUDA? • Integration of efforts? • IATA ? • NEED FOR A INTERNATIONALLY RECOGNIZED RISK CERTIFICATION SYSTEM • AEO • BASC • C-T PAT • EUROPEAN • Engagement of non customs authorities • WTO Customs Reform CLADEC4

28. PROCOMEX Aliança Pró - Modernização Logística do Comércio Exterior John Edwin Mein john@procomex.org.br 55-11-3812-4566 Plano Correios