V Global Forum on Fighting Corruption and Safeguarding Integrity – South Africa

1. V Global Forum on Fighting Corruption and Safeguarding Integrity – South Africa Trade and Customs Partnership to fight against corruption and safeguard integrity Renee Stein Director, Global Trade Policy Microsoft Corporatation

2. Agenda • National Case Study – United States • International Case Study – PSCG • Benefits of Customs-Private Sector Partnership • Challenges to Customs-Private Sector Partnership

3. National Case Study – U.S. Model • Departmental Advisory Committee on Commercial Operations of the Bureau of Customs and Border Protection (COAC) • Advises the Secretaries of the Dept. of the Treasury and the Dept. of Homeland Security on the commercial operations of Customs and Border Protection and related DHS functions

4. Objectives and Scope of Activities • Commercial operations • Consider such issues as cargo and supply chain security, including • the Customs Container Security Initiative (CSI); • the Customs-Trade Partnership Against Terrorism (C-TPAT); • completion of the Automated Commercial Environment (ACE) • the International Trade Data System (ITDS); • timely issuance of Customs rulings; • uniform treatment and enforcement across the ports; • streamlined processing and data requirements; and • audit procedures.

5. Member Composition • 20 members and two government Co-chairs from Treasury and CBP. • Government Co-chairs preside over all Committee meetings • Manage the Committee's deliberations, but do not vote on Committee actions to provide advice. • assist thecommitteein setting the Committee's agenda and with other managerial duties to ensure the Committee operates in accordance with law. • Committee members shall be appointed by and serve at the pleasure of the Secretary of the Treasury and the Secretary of Homeland Security. Candidates shall be drawn from: • the trade or transportation community served by CBP and related DHS and Treasury functions; including the trade industry sectors, public interest organizations, or other groups whose members are affected by Customs commercial operations. • shall represent the interests of either importers (and their agents) or those associated with the carriage of international freight. • shall be selected to avoid geographic or regional concentration.

6. Subcommittees • Establish subcommittees for any purpose consistent with this charter subject to the approval of the Co-chairs. • May not work independently of the chartered committee and must report their recommendations and advice to the COAC for full deliberation and discussion.

7. COAC Advance Data Elements Subcommittee Recommendations • The proposed security filing (SF) data elements and definitions should: • align with those of the WCO SAFE Framework • align with the ISO UNTEDE 2005 7372:2005 definitions and the ACE/ITDS definitions • Parties to File the Data • How the Data Elements Will be Filed • Implementation of the Data Elements • Final Regulations

8. Other Key Issues of Past COACs • Development and Implementation of the Customs-Trade Partnership Against Trade (C-TPAT) • Focused Audit and Importer Self Assessment Program • Improving the Binding Ruling Program • Provided Advice of the implementation of the 24 Hour Rule

9. International Case Study - PSCG • WCO Private Sector Consultative Group (PSCG) • Acting under authority of the June 2005 Resolution of the Customs Cooperation Council on the SAFE Framework of Standards • Advisors to both the High Level Strategic Group on Trade Security and Facilitation (“the HLSG”) and the Secretary General • On progress and issues relating to implementation of the Framework of Standards to Secure and Facilitate Global Trade

10. Membership • Determined by the Secretary General • Limited to not more than 30 participants representing the business community • Representative of the private sector interests engaged in and affected by the trade security and facilitation measures of the World Customs Organization • Membership represent the interests of a broad range of business entities, taking into account regional and geographic factors

11. Purpose and Scope • Advising the HLSG and the Secretary General on the full range of issues concerning the Framework of Standards, to include such issues • Enhanced border and cargo supply chain security, • Customs modernization and automation, • Capacity building, • Compliance assessment, • Commercial enforcement and uniformity, • International efforts to harmonize customs practices and procedures, and • Strategic planning.

12. Tasks Ahead • Consulting on the substance and timing of future substantive amendments which will be necessary in order that the SAFE Framework remain relevant in relation to trade community business practices; • Consulting on matters related to implementation of the SAFE Framework, including: • Mutual recognition • Ensuring participation by the part of the trade community representing small and medium sized enterprises

13. Expanding Advisory Role • Secretary General • a resource available for consultation on a range of programs and topics • the Policy Commission and other standing bodies within the organization • extend the tenure of the PSCG and to define its mandate only in general terms

14. PSCG Advisory Issues • Implementation of the SAFE Framework • Implementation of the Authorized Economic Operator Program • Validation and Accreditation • Mutual Recognition • SME Engagement • Pilot Programs

15. Working Groups/Think Tanks • Changes to and Maintenance of the SAFE Framework • AEO Implementation • Mutual Recognition • SME’s • Capacity Building • Pilot Programs

16. Benefits of the Partnership • Changing roles and relationships • Change Management • Increased Business Awareness and Involvement • ID impediments to Trade Facilitation • Legal Framework • Ensuring Global Harmonization • 2-Way Technical Training

17. Other Partnership Benefits • Partnership / assistance priorities • Appreciation Business Difficulties • Political Influence • Cost Of Compliance • Institutionalized Input • Pilot Programs Stakeholders

18. Challenges to Partnership • Lack of Mutual Trust • Cultural change must be a priority • Lack of Organizational (Trade and Customs) Support • Lack of National Priority • Lack of Open Communication • Lack of Private sector Awareness

19. Thank You!