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Global Network at Borders - Borders divide, Customs connects -

Global Network at Borders - Borders divide, Customs connects -. The Institute of International and European Affairs Dublin, 2 March 2010. Kunio Mikuriya Secretary General World Customs Organization. WCO in brief. Intergovernmental organization specialized in Customs matters

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Global Network at Borders - Borders divide, Customs connects -

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  1. Global Network at Borders - Borders divide, Customs connects - The Institute of International and European Affairs Dublin, 2 March 2010 Kunio Mikuriya Secretary General World Customs Organization

  2. WCO in brief • Intergovernmental organization specialized in Customs matters • Established in Brussels in 1952 • Mission • To enhance the effectiveness & efficiency of Customs administrations • To facilitate trade and secure the international supply chain • 176 Members • Collectively process over 98% of global trade 2

  3. WCO and Europe • From a European to a global institution • Committee for European Economic Cooperation (1947) • Customs Committee - predecessor of the WCO • Economic Committee - predecessor of the OECD • 17 European countries, including Ireland, were the original Members • EU engagement • All 27 Member States • Status akin to WCO Members (2007) • An outreach platform to connect with non-EU economies 3

  4. Evolution of Customs Revenue collection of import taxes Protection of domestic industry Protectionof citizens Customsfunction Trade facilitation <Competitiveness> Trade supply chain security Environment 4

  5. WCO main activities • Develop standards for Customs procedures • Harmonized System (HS) – tariff classification • Revised Kyoto Convention (RKC) – trade facilitation • SAFE Framework of Standards – security • Promote international cooperation • Share information and best practices • Capacity Building • Columbus Programme – diagnostics for reform • PICARD Programme – cooperation with universities • Fragile states • Integrity • Regional approach – ownership at the regional level 5

  6. Global challenges for Customs • Protectionism • Global trading system • Supply chain security and facilitation • Health, safety and the protection of society • Environment • IPR border enforcement • Transnational organized crime 6

  7. Global challenges (1) Customs environment and role? Protectionism • Global financial crisis & economic downturn • Reduction in Customs revenue • Drop in trade volume • Difficulty of accessing trade finance • Increase in fraudulent activities of traders • Customs under pressure on revenue collection Rise of protectionist trend 7

  8. Global challenges (1) Protectionism • WCO Communiqué to G20 (London, April 2009) • Trade facilitation, capacity building, monitoring • Incorporated in the G20 Communiqué • From crisis to recovery • Fiscal stimulus/discipline • Trade kept open • For fair and efficient revenue collection • WCO Revenue package • Trade facilitation • Customs modernization 8

  9. Global challenges (2) Global trading system • WTO Doha Round • Early conclusion desirable • Trade Facilitation agenda: biggest economic gains expected • Standards available • WCO Revised Kyoto Convention • Political support and mobilization of donors • Aid for trade • Regional integration • Convergence of rules of origin • Synergy with global standards • Capacity Building, especially for ACP countries 9

  10. Global challenges (3) Supply chain security & facilitation • Risk management approach: WCO SAFE Framework of Standards • Customs-Business Partnership • Less intervention for high-compliance operators • Certified as Authorized Economic Operators (AEO) • Mutual Recognition • Customs network arrangement • Against US 100% scanning law Intervention for all US bound cargo before departure (to be implemented in 2012) 10

  11. Global challenges (4) Environment • Green Customs Initiative with UNEP • Enforce trade provisions of Multilateral Environment Agreements • Endangered species, ozone depleting substances, hazardous chemicals, hazardous wastes • Exchange of information – Environet • Joint operations • Hazardous waste (64 countries: Europe-Africa-Asia/Pacific in 2009) • Customs and climate change • Border enforcement measures • Border tax adjustment 11

  12. Global challenges (4) IPR border enforcement • Challenges • Awareness • Serious criminal behaviour and economic loss • Funding for organized crime • Health hazards caused by users • Enforcement legislation • Operational capacity • Political/business support • WCO activities • Diagnostic missions to identify gaps • Joint operations to improve coordination • Cooperation with rights holders • Sharing of best practices • Technical assistance and capacity building 12

  13. Global challenges (4) Transnational organized crime • Transborder crime: challenges & opportunities • Source of illicit profit • Major seizure point; +70% of national seizures in drugs and counterfeits at the borders • Customs Enforcement Network • Communication and database for Customs seizures • Joint operations: drugs in Central Asia, money laundering with 84 countries • Cooperation with the police • WHO Framework Convention on Tobacco Control • Protocol on Illicit Trade in Tobacco Products 13

  14. Customs in the 21st Century • A New strategic direction for Customs • 10 building blocks • For better international cooperation • Globally Networked Customs • For better coordination at borders • Coordinated Border Management • For better business compliance and mutual benefit • Customs-Business Partnership and more … • A relevant, visionary and indispensable Customs for a better world 14

  15. THANK YOU FOR YOUR ATTENTIONwww.wcoomd.org

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