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 /