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The Fiji Islands Revenue and Customs Authority

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The Fiji Islands Revenue and Customs Authority

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    1. The Fiji Islands Revenue and Customs Authority Supply Chain Security and the Compulsory X-Ray for US Bound Cargo Watisoni Rauicava wrauicava@frca.org.fj

    2. Outline Background Customs Reform and Modernization Program FIRCAs Response Supply Chain Security and the SAFE Framework of Standard Acquisition of X Ray or NII

    3. Background Following Cabinet approval in 2005 for Fiji to implement supply chain security measures. Recommendations of steering committee for the use of Non-Intrusive inspection Devices (NID X-Ray Equipment) Supply Chain Security Promulgation No 14 of 2007 2008 WCO Diagnostic Study for SAFE Framework of Standards

    4. USA Border Control USA has tightened its border security after Sept 11, 2001. 2012 Exporting countries to scan all export before entry to USA Countries not compliant will lose USA market.

    5. Consequence Decrease in total no. of export Decrease in foreign reserve Increase in trade deficient Possibility of devalue of Fiji currency

    6. Fijis Economy Fiji exported $1,209,813 billion in 2007 Main Export Markets USA holds 15% of the total export = $177,855 million United Kingdom holds14% of the total export = $172,152 Australia holds 13% of the total export = $160,416 million Fijis Economy if totally dependant on these markets

    7. Considerations.. Trade facilitation is important and customs can play a vital role A secure trading system is a prerequisite for trade facilitation Being the hub of the Pacific, Fiji is liable to face threats of international terrorism.. The need to adapt to the new international security environment whilst meeting the expectations of trading partners, The x-ray machine will not only boost export through the supply chain security as it will also enhance inbound border control . It is anticipated that a secured trading environment will lead to an increase in import and export which is an advantage to the countries economy.

    8. Concerns. Will this new adoption in management be able to meet the expectations of the organisation and stakeholders concerned? Will the organisations budget be able to absorb such an investment? and Can our small island nation be financially robust to go the extra mile and synchronize its standards to international rules and regulations?

    9. Realized. On the other hand, if Fiji needs to be competent to international standards and regulations, then international initiatives should be promoted in order to strengthen trade and travel against terrorist threats. This new initiative not only meets the security assurance of our trading partners, but most importantly the security of people.

    10. Consultation Customs Reform and Modernization Project Accession to Revised Kyoto Convention Letter of Intent on the SAFE Framework of Standard Review and Amend National Legislation Acquisition of Non Intrusion Inspection Devices FIRCA Response

    11. FPTL Wharf Land Lord Ministry of Labor Customs Brokers Freight forwarders Exporters club Shipping Consultation with Key Stakeholders

    12. Be made aware of the supply chain Initiative Ports --Key stakeholder /Land Lord Type X-Ray equipments intended to be brought in; and Request for de-veining and scanning area Obtain feedback on the proposed solutions based on current and future operations. Strengthen FIRCA /FPCL Business co-operation Port Security assessment Possible streamlining of process to enable predictability and a efficiency Consultations with Ports

    14. IMF Report WCO Diagnostic Report Customs Reform and Modernisation

    15. Highly competitive business environment Blueprint of modern Customs procedures for Governments to implement effective controls & facilitate legitimate trade Entered into force February 2006 The Revised Kyoto Convention

    16. Legal provisions covering core Customs functions (import, export, transit and other procedures) Detailed implementation guidelines for all legal provisions Methods of application and best practices Constantly updated Structure and Content (Revised Kyoto Convention)

    17. Transparency and predictability -Rules for providing information -Clear and transparent appeal procedures (Customs, independent authority, courts) Standardization and simplification of goods declaration and supporting documents - Minimum data requirements - Submission by electronic means - Customs Data Model (supporting initiative) Key Principles of RKC

    18. SAFE Framework of Standards

    19. Objectives and principles of the SAFE Framework The Framework aims to : Establish standards that provide supply chain security and facilitation at a global level to promote certainty and predictability. Enable integrated supply chain management for all modes of transport. Enhance the role, functions and capabilities of Customs to meet the challenges and opportunities of the 21st Century. Strengthen co-operation between Customs administrations to improve their capability to detect high-risk consignments. Strengthen Customs/Business co-operation. Promote the seamless movement of goods through secure international trade supply chains.

    20. Four Core Elements The Framework consists of four core elements. First, the Framework harmonizes the advance electronic cargo information requirements on inbound, outbound and transit shipments. Second, each country that joins the Framework commits to employing a consistent risk management approach to address security threats. Third, the Framework requires that at the reasonable request of the receiving nation, based upon a comparable risk targeting methodology, the sending nation's Customs administration will perform an outbound inspection of high-risk containers and cargo, preferably using non-intrusive detection equipment such as large-scale X-ray machines and radiation detectors. Fourth, the Framework defines benefits that Customs will provide to businesses that meet minimal supply chain security standards and best practices.

    21. The two pillars Two Pillars of the SAFE Framework The Framework, based on the previously described four core elements, rests on the twin pillars of Customs-to-Customs network arrangements and Customs-to-Business partnerships. The two-pillar strategy has many advantages. The pillars involve a set of standards that are consolidated to guarantee ease of understanding and rapid international implementation.

    22. Supply Chain Security Promulgation 14 of 2007 Legislative amendments Customs areas Advance submission of manifests Penalty provisions Secure Export Scheme

    23. Acquisition of X ray Equipment Feasibility Study Consultant/Experts Location Specification Cost Tender process Purchase Training Implementation

    27. Questions and Answers

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