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Customs in the 21 st Century and the Customs-Business Partnership. WCO Regional Training Centre Brasilia, 7 April 2010. Kunio Mikuriya Secretary General. WCO in brief. Intergovernmental organization specialised in Customs matters Established in Brussels in 1952 Mission
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Customs in the 21st Century and the Customs-Business Partnership WCO Regional Training Centre Brasilia, 7 April 2010 Kunio Mikuriya Secretary General
WCO in brief • Intergovernmental organization specialised in Customs matters • Established in Brussels in 1952 • Mission • Efficiency and effectiveness of Customs • Facilitate trade and secure the global supply chain • 176 Members • Collectively process over 98% of international trade 2
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 • Regional approach – ownership at the regional level 3
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 4
Customs-Business partnership • Two-wayinformation • Business information to identify and minimize risk • Customs information to support business and improve compliance • Customs website http://www.receita.fazenda.gov.br/ 5
Customs-Business Partnership • Consultation mechanism • From an adversarial relationship (mutual mistrust) to a partnership (common confidence) through consultation • Legislation, trade facilitation, Customs reform • WCO • Most committees open to trade • Private Sector Consultative Group 6
Customs-Business Partnership • Cooperation • Compliance: G7 (91) Customs-trade alliance to fight against illicit drug trafficking – Memoranda of Understanding (MOU) • Security: Authorized Economic Operator • Integrity • IT system development: Single Window projectand Data Model • WCO IT Conference and Exhibition • WCO Innovation and Technology Conference 7
More cooperation with Business • Contain protectionism • Global trading system • Supply chain security and facilitation • Protect consumers – fake medicine and other counterfeits 8
More cooperation (1) Customs environment and role? Contain protectionism • Global Financial Crisis • Help recovery while vigilant on protectionism • WCO Communiqué to G20 (London, April 2009) • Trade facilitation, capacity building, monitoring • Incorporated in the G20 Communiqué • Fair and efficient revenue collection • WCO Revenue package • Informal sector, fraud 9
More cooperation (2) Global trading system • WTO Doha Round • Early conclusion desirable • Trade Facilitation: big economic gains expected • Standards available • WCO Revised Kyoto Convention • Political support and mobilization of donors • Support of business • Environmental concerns • Endangered species • Hazardous wastes and chemicals 10
More cooperation (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 11
More cooperation (4) Protect consumers – fake medicine & other counterfeits • Challenges • Awareness • Serious criminal behaviour and economic loss • Funding for organized crime • Health hazards for users • Enforcement legislation • Operational capacity • Political/business support • WCO activities • Cooperation with rights holders • Technical assistance and capacity building 12