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Customs Reform Project
Adel M. RadwanDirector of the Customs Reform Unit
Presented by
Arab Republic of EgyptArab Republic of Egypt
Ministry of Finance
17-2017-20 AprilApril, 2004, 2004
Customs Reform Project
Overview of Project output and activities
The Main Achievements
The Next Steps
Presentation Outline
Diagnosis: Symptoms
High transaction costs for importers with negative effects on external competitiveness
Imperfect compliance with multilateral agreements and international conventions
Relatively high number of disputes between Customs and the trade community
Limited use of IT in different sites
Ineffective duties relief schemes and customs systems
Customs administration burdened with bureaucracy
Diagnosis: Causes
Outdated legislative and regulatory framework
Cumbersome procedures and high clearance costs for
importers
Diversity and complexity of duty relief schemes
High average tariff rates and complicated tariff structure
Inadequate IT resources and systems
Outdated organizational structure, training strategy and
staffing policy
Our Vision
Integrate Egypt into the global economic system through full compliance with multilateral and bilateral agreements
Create partnership between Customs and the trade community
Enhance private sector external competitiveness through reducing transaction costs
Conceptualization Phase
Reform Principles
The legislative framework should be clear, flexible, and transparent Ports should be gates rather than warehouses The importer/broker should share responsibility with Customs Selectivity/risk management techniques should be used in
document verification and physical inspection Post-release audit and severe sanctions should replace excessive
controls Customs should operate in a fully automation / paperless
environment Tariffs should be generally non-prohibitive and easy to apply
Project Preparation Phase
2002Q1 Q2 Q3 Q4
Establish Advisory Committee
Appoint Project Director
Appoint Project Team
Develop Plan of Action
Secure Sources of Fund
Activities
Project Organizational Structure Steering
Committee
Project Director
Advisory CommitteeMinister of Finance
ValuationTariff Policy
ProceduresHuman Resources IT
Duties Relief/Exemptions
Technical Secretariat
Financial & International Cooperation expert
Legislation
Assistant Director
Customs commissionerSupreme Committee for law
Infra structures
Anti- Smuggling
IC
E- COMMERCE
2002 2003 2004 2005
Conceptualization
Post-Project Evaluation
Customs Reform Project spans a period of 3-4 years from late 2002 until 2005/2006 .
2001
Direct/Indirect Benefits to National Economy
Cost of Clearance
Implementation/Monitoring/Interim Evaluation
Preparation
Problem Identification
Customs Reform Project Project Cycle Project Cycle
Cle
ara
nce
Cost
s/B
enefits
to N
ati
on
al Eco
nom
y
Output 2002 2003 2004 2005 2006
New Customs Law
Streamlined/Simplified Procedures
Accurate Implementation of Article VII
Simplified Duties Relief Schemes
Restructured Organization
Full IT Support in all Ports of Entry
New Consolidated Tariff Structure
Customs Reform Project Reform Master Plan (Living Plan)
Customs Reform Project
Technical Assistance/Coordination with Other Donors
Financial/Technical Assistance (Assistance for Customs and Trade Facilitation (ACTF) Project)
Financial/Technical Assistance (TEP-A, TEP-B, and TEP-C)
CRU
Ministry of Finance
Ministry of Foreign Trade
Ministry of Transportation
Ministry of Industry
IMF
EU
USAIDOther Ministries and Government Agencies
The world Bank
Role of the CRU
Coordinate
Implement
MonitorW B
Trade Community
Concluding Remark
Participation of all Partners and the Support of the GOE are the Keys to Success
Legal Experts/Customs Law Legal Committee
Donor Agencies and International Community
Customs Commission /Project
Team
Trade Community
Advisory Committee
Government of Egypt
Implementation Phase
Activities
2002 2003 2004 2005
New Customs Law Customs Code of Ethics Explanatory Notes for new law Legal references for Procedures manuals Review of inconsistencies and simplification of customs related
regulations
June 2005
Legislation Committee
Implementation Phase
Activities
2002 2003 2004 2005
Operate the Customs Office in the MCTC on a pilot basis
Operate the Customs Office at Ein el Sokhna Port and test new procedures
Develop a risk management system
Develop post-clearance audit
Develop valuation database
Centralize cashier functions and develop electronic means of payment
Procedures Committee
June 2005
Implementation Implementation PhasePhase
Activities
Streamline temporary admission and duty drawback procedures
Issue relevant decrees to enhance duty relief schemes
Examine possible means to rationalize exemptions
Conduct an analysis of customs systems applicable to free zones
2002 2003 2004 2005
Exemptions and Special regimes Committee
June 2005
Implementation Phase
Activities
Automate all customs procedures at all ports of entry
Develop regional interfaces to connect all ports of entry
Provide MCTC IT support
Provide Ein el Sokhna IT support
Centralize data entry and cashier functions
Establish call centers, kiosks, and video conference facilities
Launch a dynamic website and EDI systems
2002 2003 2004 2005
Information Technology Committee
Dec. 2005
Implementation Phase
Activities
Establish new departments and functions (e.g., risk management unit, post-release unit)
Review the current structure and consider consolidating logically related functions
Develop new incentives and promotion systems
Train MCTC staff and regular customs staff on new procedures
Develop the curriculum and facilities of the Customs institutes
Human Resources Committee
2002 2003 2004 2005
Dec. 2005
Implementation Phase
Activities
Examine inconsistencies in the current tariff structure
Design alternative tariff structures
Study the impact of reducing tariff rates on revenues
Publish the integrated tariff on compact disks
2002 2003 2004 2005
Tariff Policy Committee
June 2005
Implementation Phase
Activities
Adherence to the WTO Valuation Agreement Valuation database Trained customs staff Trained Stakeholder
2002 2003 2004 2005
Valuation Committee
June 2005
Implementation Phase
Activities
Develop system for Valuation database Risk management database Customs information available electronically
2002 2003 2004 2005
Information Center Committee
Oct. 2005
Implementation Phase
Activities
Inspection handbook Intelligence gathering methodology Redistribution of security resources Database of enforcement actions
2002 2003 2004 2005
Anti-Smuggling Committee
June 2005
intro.html
Customs Encyclopedia Customs Web Site
Procedures Manuals
Valuation Manuals
Risk Management System
Pre-arrival release Exemptions Manuals
IT Support to Modernized Ports
Quick Action teams Training staff in the
customs valuation field
Workshops
Export encyclopedia
Performance and programs balances
system in the Egyptian customs
Participating in developing
Damietta
Interactive Integrated Tariff
Insert10-Digit HTS Code
Insert10-Digit HTS Code
MFN Tariff Rates
Preferential Tariff Rates
prices
Restrictions and Prohibitions
Laws and regulations
Procedures before Reform in the Egyptian Ports
Advanced Center
Registry Record#46
1
Importer premises
E-Data Entry
Through
General Organization for export & import Control
GOEIC
Physical Inspection and competent controls
2
NO
COORDINATIO
N
Cashier
3 Payment
Release of Goods
Customs Complexes
Procedures at modernized ports
CustomsGOEIC
Front window
EDI*
Data entry by the Importer
* EDI: Electronic Data Interchange
E-PAYMENT THROUGH THE BANK
Release of Goods
physical inspection and Competent controls
1
2
3
One-Stop Shop
port
Pre-arrival Process
123
Lodgment of declaration and presentation of
documents
Classification and calculation
of duties
Payment and review of release
order
MCTC
Contact point at port of entry
4
Release of goods
5
Arrival of Goods
Prior to the arrival of goods
physical inspection and Competent
controls
(MCTC)Model Customs and Tax Center
Sales Tax Department
Income Tax Department
Customs Commission
MCTC
Coordinate with Sales and Income Tax departments in post-clearance audits
Regional Offices
Advantages
Test new procedures (e.g., pre-processing of import documents and risk management techniques)
Sohkna Port /MCTC Procedures
Sokhna Port
• Electronic linkages with the trade community and other agencies• Pre-processing of import documents• Electronic means of payment
Alexandria Port
Dekheila Port
Short Term
Medium Term(
Port Said Port
Damietta Port
MCTC
Cairo Airport
Operational
Customs Web Site
intro.html
Publishing of EncyclopediaActivation of the CustomsWeb Site
Publishing of Manuals
Model Customs Center(One stop shop)
Clients Service
Modernization of Dammitta Port & Cairo Cargo
Terminal
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