the pathway to fair and efficient revenue collection …

... the pathway to fair and efficient revenue collection …

WHAT IS THE REVENUE PACKAGE? Response to Members’ concerns regarding falling

revenue returns and declining duty rates Revenue collection still high priority and

challenge to many Members Action Plan developed to meet Members’ needs Focus on verification of duty liability A “Package” of new and existing tools and

instruments First of WCO’s coordinated Packages :

2

3

KEY TOPICS

Customs ValuationPreferential OriginClassification

1 2 3

Post-Clearance Audit4

4

•Trade Facilit

ation IS ….

•The enemy of

revenue

collection !!!NO!

5

CHALLENGES TO EFFECTIVE VALUATION CONTROLS IN DEVELOPING COUNTRIES

6

Infrastructure challenges new diagnostic tools

Large informal sector weak/non-existent

audit trail cash transactions

MANAGING VALUATION RISKDisciplined use of valuation

databases/price data Use as risk indicator only Derive data from previous Customs

declarations Safeguards against mis-application

Analyse aggregate statistical data & trends

Focus on importer profiling/ trade segmentation

Effective risk management = trade facilitation

7

CUSTOMS VALUATION – RIGHTS and OBLIGATIONS

WTO Agreement provides ‘balance’WTO Decision 6.1

Assist/educate businessProportionate penalties for non-compliance

Rights and

obligations of

importerRights

and obligation

s of Customs8

BALANCING CUSTOMS CONTROLS

Pre-arrival : Advance rulings:-Guidance available on classification, origin and valuationConsolidated guidelines produced

Clearance : targeted controls (e.g. informal trade)

Post-clearance : PCA :-WCO Guidelines, Volumes 1 and 2E-learning and trainer accreditation programmes Diagnostic tool (in preparation)

9

KEY MESSAGES – POST-CLEARANCE AUDIT

Need to clarify definition / misunderstandings :Not an enforcement tool or internal audit

Use PCA as a compliance tool PCA is the only effective mechanism to control

valuation – access to documents, time etc. Plan migration of controls to post-clearance

environment Infrastructure/human resource needs WCO Guidelines – two modules

10

Reliance on database

Effective

PCA

PCA v. use of a valuation database

Implementation of PCA

KEY MESSAGES – PREFERENTIAL ORIGIN

Guidelines on preferential origin verification

Irregularities study Mutual administrative assistance

system between FTA partners, not always working well

Difficulties verifying preferential origin at importation

Study on certification Trend towards self-certification Subsequent verification will focus on

originating status of the goods

12

KEY MESSAGES – TARIFF CLASSIFICATION

Infrastructure for tariff classification work

Diagnostic tool Critical backbone of

international trading system

150 Contracting Parties

HS-2017 amendments adopted13

LINK TO WTO AGREEMENT ON TRADE FACILITATION

Advance rulings (Art. 3)Risk management (Art. 7.4)PCA (Art. 7.5)Termination of inspection contracts (Art.

10.5)Exchange of information (Art. 12)

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15

•Trade Facilit

ation IS ….

•The friend of

revenue

collection !!!

FINAL MESSAGE

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THANK YOU!