WCO SAFE Framework of Standards & Data Model

1. WCO SAFE Framework of Standards & Data Model UN/ECE, UN/ESCAP and Eurasian Economic Community Integration Committee Secretariat International Conference on Trade Facilitation Gareth Lewis, WCO

2. Outline • Customs environment • WCO Framework of Standards • Key Instruments (Data Model, UCR)

3. World Customs Organization • To improve the effectiveness and efficiency of Customs Administrations • Established in 1952, HQ in Brussels • 169 members 98% of World Trade Model Legislation Standards Conventions Decisions Recommendations Forum for Discussion Exchange ideas Joint Initiatives Trade Consultation Capacity Building Diagnosis Plan Implement Review

4. Customs Environment • Prime agency to interdict transborder illegal traffic • Legislative mandate & expertise in border control • International business and transport • Information management & risk identification • Investigation and prevention of border offences • Smuggling (arms, drugs, controlled or prohibited goods) • Money laundering • Illegal movement of dangerous materials • Not only goods, but also conveyances, crew & passenger traffic

5. Customs Environment Admissibility of goods Trade facilitation Foreign direct investment Just-in time Inventory control Predictable processing Statistic Fewer resources Lower costs Information technology Logistics • Collect taxes Security Increase in volume • Maintain Exchequer yield Drugs IPR Dangerous goods Environmental Globalization Cultural More awareness Protect society Int’l commitments Regional Trade Agreement Governance, Integrity

6. Protection of Economic Interests (domestic industry) Protection of Society <health, safety> (drug trafficking, firearms, environment etc.) Economic Development <trade, investment> (trade facilitation) Security <terrorism> (shifting focus to entire supply chain) Framework of Standards Evolution of Customs Revenue Collection of import taxes(duties & excise) Customs function

7. Security Concerns • Customs environment after terrorist attacks • Awareness of the need for enhanced border control • Refocus control strategy from mainly import to the entire supply chain including export • Enhanced cooperation with border agencies / trade • Global Customs response coordinated by WCO • Adoption of Resolution on Security and Facilitation of the International Trade Supply Chain • Objective to look beyond borders to point of origin of trade supply chain • Overwhelming Support • Customs Directors General, international bodies, trading organizations • International Task Force to develop required measures

8. Package of Measures Non-binding measures including legal, procedural and risk assessment instruments to protect the supply chain at the earliest stage Need for enhanced cooperation with other border agencies and business Revised Kyoto Convention Refocus Customs to export & supply chain

9. SAFE Framework Principles • Standards to Secure and Facilitate Global Trade • Pillar 1, Customs-to-Customs networking • Pillar 2, Customs-to-Business partnerships • Seal Integrity Program • Covers all areas of modern Customs controls

10. FOUR CORE ELEMENTS • Advance electronic manifest information • Common risk-management approach; 27 Key data elements • Inspection of high-risk cargo at port of origin; export controls • Enhanced trade facilitation for legitimate trade; Authorized Economic Operator (AEO) concept

11. SAFE Framework of Standards Advance I Customs /Customs Customs/Trade Advance Information Risk Management Inspection Benefits ISCM Data Model UCR RKC HS 120 countries Capacity Building

12. WCO Instruments for Trade Facilitation • Harmonized system • Revised Kyoto Convention • Integrated Supply Chain Management Guidelines • (Customs) Data Model • UCR • Time Release Study

13. WCO (Customs) Data Model • 1996 G7 Data Sets • 2002 WCO CDM V1.0 • 2003 Security Concerns V1.1 • 2005 Conveyance, Transit, UMM V2.0 • 2008 Response, XML, (more) Transit, OGA “single window” environment V3.0 • EDIFACT Messages, MIGs • Alignment with CCTS, UNTDED

14. Kyoto Customs Data Principles • Common data sets, uniform electronic messages, coded representations • Maximum data requirements for the routine exchange of information between Customs or OGA and the trader/transport entity • Countries to require as little information as necessary for Customs control purposes • Release on minimum information

15. International Code Standards • HARMONIZED SYSTEM & UCR • ISO 3166 COUNTRY CODES • ISO 4217 CURRENCY CODES • ISO 6346 CONTAINER CODES • UN/ECE RECOMMENDATIONS • No. 5 - INCOTERMS • No. 7 - REPRESENTATION OF DATE/TIME • No. 16 - UN/LOCODE • No. 19 - MODE OF TRANSPORT • No. 20 - UNITS OF MEASURE

16. Unique Consignment Reference Number (UCR) • Critical part of WCO’s Integrated Supply Chain Management Guidelines/FoS • Resolution & Implementation Guidelines passed by Council in 2004 • “Electronic Staple” end-to-end identifier based upon ISO 15459 “Licence Plate” • UK/Aus Project based upon SSCC for bulk wine & spirit

17. THANK YOU gareth.lewis@wcoomd.org Phone: +32 2209 9355