WCO and Efficient Information Flows

1. WCO andEfficient Information Flows Takashi Matsumoto March 2005

2. Structure of the Presentation • WCO in brief • WCO work in this field • WCO Regional Office for Capacity Building (ROCB)

3. WCO in brief • Customs Co-operation Council (CCC), Established in 1952, Headquarters: Brussels Since 1994: World Customs Organization (WCO) • Independent intergovernmental organization • 164 Members (Customs administrations ) covering 99% of world trade

4. complementary synergy complementary synergy International co-operation, sharing information, best practices Capacity Building synergy complementary What is the WCO doing? Rule and Standard Setting Efficient and Effective Customs

5. Efficient and Effective Customs is prerequisite: to further facilitate trade; and to further enhance security Efficient information flow is a key to enhance efficiency and effectiveness of Customs

6. Efficient Information Flows Parties involved for Customs procedure Foreign Customs Foreign Customs Customs Port Authority Importer Customs Broker Quarantine Airline Food sanitation Shipping Company Import License Carrier Warehouse Forwarder Shipping Agent Container Yard Bank

7. Capacity Building Related work of the WCO Single Window Integrated Supply Chain Mgt. Unique Consignment Reference WCO Data Model, Business Partnerships, Standard Risk Assessment Revised Kyoto Convention, Mutual Administrative Assistance, etc.

8. Revised Kyoto Convention • International Convention on the Simplification and Harmonization of Customs Procedures, 1973 • Revised in 1999, waiting for the entry into force (expected very near future) • Core principles are binding commitments • Consistent with and complementary to the WTO/GATT Articles

9. Higher transparency and predictability Standardized and simplified documents Minimum requests and intervention Divorce of release from clearance Use of risk management Specially simplified procedures for authorized traders Maximum use of information technology Co-operation with other agencies and foreign counterparts Partnership with the trade Core principles

10. WCO Customs Data ModelKyoto Customs Data Principles • Common data sets and uniform electronic messages for cargo report, import, and export declarations for the clearance of “ordinary goods” • Maximum data requirements for the routine exchange of information between Customs and the trader • Countries to require as little information as necessary for Customs control purposes • Release on minimum information

11. WCO Customs Data Model • Harmonized maximum data sets for import, export and transit • Common electronic messages based on EDIFACT; XML to follow • International code standards (WCO, ISO, UN, others) • Version 1 (2002) = G7 Initiative • Version 1.1 (2003) = G7 + Security • Version 2.0 (June 2005) = WCO + OGA G8 countries and APEC economies agreed to implement Data Model by 2005, where possible

12. Unique Consignment Reference Number (UCR) • Reported to Customs at any point during a Customs Procedure • Applied to all international goods movements for which Customs control is required • Used only as an access key for audit, consignment tracking and information reconciliation purposes • Unique at both national and international level • Applied at consignment level • Issued as early as possible in the international transaction

13. Integrated Supply Chain Management (ISCM) Guidelines • Mandatory advance information • Based on revised Kyoto Convention • Using WCO Data Model + UCR • Enhance Customs-to-Customs co-operation (bilaterally, multilaterally) • Mutual recognition • Single window • Partnership with trade • Authorized Supply Chain

14. What is ROCB? • WCO Asia Pacific Regional Office for Capacity Building (ROCB) • Established July 2004 and formally opened September 2004 in Bangkok (Thai Customs Department) • Support Capacity Building activities of AP Member Customs Administration

16. Security Capacity Building Rule of Origin Revenue Collection Enforcement Trade Facilitation IPR Protection Missions of Customs and CB

17. Technical Assistance Partnership with Donors Diagnosis Missions of ROCB ROCB

18. Diagnosis Activities • To hold two WCO Diagnostic Framework workshop in Asia Pacific Region (Thailand and India) to foster Diagnosis experts. • To dispatch diagnosis experts to requesting countries in collaboration with WCO to identify capacity building areas and suggest possible solutions. • Whole administration • Particular areas; e.g. IT, IPR, Import/Export, etc.

19. Technical Assistance (Regional Seminar) • TF and Revised Kyoto (India) (Jan. 31-Feb. 4) • Non-preferential ROO (Sri Lanka) (Feb. 21-25) • HS Multipurpose (Japan) (February 21-25) • Diagnosis Framework Facilitators (India)( Mar. 14-18) • Framework of Standard on Secure and Facilitate Global Trade (Hong Kong) (Mar. 22-24) • Synthetic Drugs and its Precursor Chemicals (Philippines) (Apr. 18-22, 2005) • WTO Valuation Agreement (Malaysia) (National Seminar) • HS Multipurpose (China) (Feb. 21-25) • Updating of HS 2002 (Bhutan) (Apr. 4-8) • WTO Valuation Agreement (Bhutan) (June), etc.

20. Partnership with Donors • The World Bank: Modernization of Customs • E.g.: Afghanistan, Cambodia, Vietnam, Indonesia, etc. • ADB: Development Programs including Customs modernization • e.g. GMS, Central Asia, Afghanistan and neighboring • Cooperation fund for security issues (ADB, APEC) • WTO: Trade Facilitation Seminars • Donor Countries: Bilateral Technical Assistance

21. Thank you Takashi Matsumoto rocbap@asianet.co.th