Customs Reform – Challenges and Solutions/KievDecember 2015

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2Private and confidential

Customs Reform – Challenges and Solutions

• Reactive approach to its business is being replaced by far more proactive style

• Increased “partnerships” with business

• Focus on assisting in the creation of a “business enabling environment”

• Increased expectations of public and private sectors in terms of performance

3Private and confidential

Customs Reform – Challenges and Solutions

• Huge increases in the level of world wide trade and movement of people

• Greater technical complexity in the modern world

• Deteriorating security

• Significant changes in focus dependant upon political and economic climate

4Private and confidential

Customs Reform – Challenges and Solutions

The role of Customs can vary but generally includes some of the following elements:

• Law Enforcement and Security• Protecting Society• Facilitating Trade and increasing National Competitiveness• Supply Chain Security• Policy Advice• Provision of Trade Statistics• Revenue Generation

5Private and confidential

Customs Reform – Challenges and Solutions

SIDE 1

TRADE FACILITATION

• Delivering a Trade Enabling Environment• Reduce clearance times• Simplification and Harmonisation of Legislation

and Procedures• Transparent processes• Increased predictability• Customs – Business Partnerships• Stakeholder involvement• Communication and access to information

SIDE 2

LAW ENFORCEMENT

• Pressure to increase Revenue• Deteriorating security across world• Increased sophistication of criminal activity• Greater complexity of trade transactions• Emphasis on protecting society (drugs, weapons,

unsafe medicines, intellectual property rights)• Responsibilities under regional and international

protocols

• = BALANCE

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Customs Reform – Challenges and Solutions/

So given these challenges, what can Customs do to try and achieve an acceptable balance ?

7Private and confidential

Customs Reform – Challenges and Solutions

• Essential to use intelligence and analysis as means of directing limited resources to areas of greatest risk

•Move controls away from border where possible (PCA)

• Greater Customs 2 Customs and Customs 2 Business Cooperation/Partnerships

• Increase technical and vocational capacity of staff

• Automation

8Private and confidential

Customs Reform – Challenges and Solutions

• Data and Information/Intelligence Sharing

• AEO Programmes

• Stakeholder Involvement

•Mutual Assistance

• Communication

9Private and confidential

Customs Reform – Challenges and Solutions

Communication:• Ensure that the role of Customs is understood (internally and

externally). Customs supports trade, Customs protects society• Clear and consistent rules and regulations will result in more

predictability and transparency and therefore greater inward investment. Standardise procedures and processes across the Country• Customs have a duty to apply laws in a manner which is fair and

transparent (level playing field). Reward compliance.• Businesses and Civil Society as a whole have a duty to be

honest and compliant

10Private and confidential

Customs Reform – Challenges and Solutions

DCFTA:• Improved access to EU markets – 500 million people within a

couple of hours• EU rules complicated – but if you can meet them you can trade

anywhere• Customs can support exporters – simplification, reduce

unnecessary documents and processes• Reduced clearance times• Revenue (Customs duties) likely to reduce

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Hot Off The Press/Ukraine has ratified the WTO TFA - With 63 member states now having done so, it leaves about 40 ratifications short beforeTFA becoming legally binding through the WTO Agreement….plenty of ramifications for Customs!

Thank you /