09 - gfv customs workshop - panel - trade-customs partnership - torero

8/4/2019 09 - GFV Customs Workshop - Panel - Trade-Customs Partnership - Torero

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GLOBAL FORUM V

Trade and Customs Partnership to Fight against

Corruption and Safe guarding Integrity

BY Eugene TOREROVICE CHAIR, WCO ESA REGION

Wold Customs Organisation

East and Southern Africa Region


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WCO ESA Region 2

Introduction

The Customs world has to accept that theincentives and opportunities exist in all revenue-collecting agencies to engage in corrupt practices.

Based on this premise, every Customsadministration should attempt to provide aframework for legal and administrativeprocedures that are necessary to detect, punish,and reduce such undesirable behavior.

The trade community has a role to play inpromoting integrity


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WCO ESA Region 3

Building a system to promote integrity in customsadministration requires:

Putting in place measures to combat corruption;

On-going vigilance to ensure that the measures continue tooperate and that corrupt behavior is detected and dealt with.

Top Leadership commitment to address the problem andacting as role models. This should go beyond merestatements that corruption will not be tolerated to the actualactions.

Building a system to promote integrity inCustoms Administrati

on


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WCO ESA Region 4

Main elements to promote integrity in Customsadministration

1. Clear legal, regulatory, and administrative framework forCustoms Management;

2. simple, transparent procedures;3. a professional customs administration;

4. performance standards;5. code of conduct;6. Effective internal audit systems with independence.7. Whistle blowing programs8. Business co-operation

9.Customs co-operation


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WCO ESA Region 5

Note!!!

In support of these elements, there should also be an atmosphere thatencourages the following;

Dialogue with the trade community,

An independent, honest judicial system, and

A press that is interested, able, and allowed to raise issues of

corruption.


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WCO ESA Region 6

1. Clear legal, regulatory, andadministrative framework for

Customs Management

From a customs administrators point of view, simple,clear legislation creates the framework for the

development of systems and procedures that areeasily understood by both the trade community andthe officials.

Laws and regulations related to Customs should be

easily accessible and understandable, and clearcriteria should guide administrative discretion in theirapplication.


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WCO ESA Region 7

Effective penalty system

A good penalty system should provide the administrator with theability to impose administrative penalties for minor offences.

This may include:

fines, for example, for broken seals on vehiclestransporting goods in-transit and presentation ofdeclarations with an unacceptable level errors.

Serious cases of fraud, including the bribing ofrevenue officials, should result in more serious actions,including criminal prosecution


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WCO ESA Region 8

Provide an independent appeal mechanism

Every customs law, no matter how well written, iscapable of being interpreted differently.

In order to preserve the independence of theofficials and the integrity of the system, it isimportant that taxpayers have the ability tochallenge decisions and be assured of a fair and

equitable hearing and that decisions are widelypublicized.


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WCO ESA Region 9

2. Simple, transparent procedures

It is the responsibility of the customs administratorsto put in place simple, easily understood systemsand procedures. The reasons for this approach aretwofold.

Firstly, it reduces the compliance costs forthe importers and exporters and,

Secondly, it reduce: the opportunities forcorruption.


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WCO ESA Region 10

Simple, transparent procedures (contd)

To be effective and to reduce the opportunities for corruption,

Customs systems should be based on the following:

one step process minimize the information and documentation requirement

consistent interpretations,

Computerization may reduce customs interventions


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WCO ESA Region 11

3. Professional customs administrationsThe development of professional Customsadministrations is important, not only to improvethe effectiveness of these administrations but, atthe same time, to address issues of corruption.

The best way of ensuring fairness and neutralityin the administration of the Customsadministration is to develop professional

administrations with clearly definedresponsibilities and accountability forperformance, including :


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WCO ESA Region 12

Professional management

Customs administration to perform effectivelyrequire skilled, knowledgeable supervisors andmanagers.


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WCO ESA Region 13

Challenge

Too often the senior officials in the administrationschange as governments change and individuals withlittle or no knowledge of legislation, regulations, systems,and procedures are put in charge of collecting the

revenue.

In these circumstances, staff may perceive that they havelimited career opportunities in the organization, little, if

any, "loyalty" to the organization and, perhaps,consequently be more open to corruption


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WCO ESA Region 14

Management controls

These are an essential component of well-run customsadministrations. This includes:

a clear statement of goals and objectives;

well documented operating procedures;

supervision of day- to-day activities; and

a regular review of the outputs of employees.

Consideration of results of internal audits.

feedback from importers and exporters, and

views of employees in evaluating theoperations of an office.


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WCO ESA Region 15

Compensation and working conditionsCustoms administrators must be provided with sufficientcompensation to reduce the incentive to engage in corrupt

practices.

While civil service pay can never be at a level that willdiscourage all corrupt behavior, compensation can be set at alevel that provides a good standard of Living and eliminates the

need to accept "facilitation fees".


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WCO ESA Region 16

Appropriate working conditions

The provision of appropriate working conditions is alsoimportant. This includes:

1. proper' office space, equipment (e.&, telephones,computers, and transportation), and supplies.

2. The administration should not have to rely onimporters, exporters, or their agents to provide anyfacilities or equipment which could imply that a favor

is expected in return.


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WCO ESA Region 17

Staff rotationAny regulatory agency is better able to carry out itsfunctions in an impartial manner if it remains at armslength from those it is charged with regulating.

Revenue agencies are no different in this regard.Accordingly, it is important that staff rotations takeplace on a regular basis to reduce opportunities forcollusion.


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WCO ESA Region 18

4. Performance standards

Customs administrations should put in place performancestandards that enable policy makers, management, and the

public to measure how well an administration is performing.


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WCO ESA Region 19

Firstly, it enables the policy makers including Ministers to holdheads of administrations accountable, if agreed standards arenot met.

Secondly it enables management to measure the performance ofoffices and individuals and to identity potential problems.

Thirdly, it makes very clear to the employees that there areexpectations and that their performance will be measuredagainst these expectations.

Fourthly, the public is aware of what is expected and, therefore,should be willing and encouraged to bring to the attention ofmanagement cases where the standards have not been met.

Advantages


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WCO ESA Region 20

Too often, the only performance standard established for theadministrations is the requirement to meet certain revenuetargets. This is not enough, particularly if corruption is aproblem.

Performance standards, in Customs administrations, shouldinclude the following:

NOTE


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WCO ESA Region 21

In customs administrations, there should be clearly articulatedstandards for the various functions that are performed.

For importers, it is very important that they know the time that thegoods will be under customs control.

By establishing service standards and making them known to staff andto importers and exporters,

An administration can establish monitoring mechanisms to identifytransactions, offices, and officers that do not meet the requiredstandards.

Reports from the monitoring system may also help to identify areas thatshould be investigated for potential corrupt practices.

Service standards


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WCO ESA Region 22

It is important that employees and importers andexporters be aware of the conduct that is expected ofboth parties.

By clearly articulating expectations, customsadministrators can hold employees accountable forperformance and take appropriate action.

Many administrations publish a 'code of conduct"with these expectations.

For such a code to be effective; it must also include adescription of the disciplinary actions.

5. Code of conduct


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WCO ESA Region 23

While it is the overall responsibility of managementto monitor performance and to ensure thatoperational policies are being followed andperformance standards are being met, this must be

supplemented by effective internal audit.

Internal audit activities should include:-

compliance with operational procedures

Operational procedures should be clearly definedand laid out in manuals or procedure guides.

6. Effective internal audit


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WCO ESA Region 24

The customs legislation should providefor a reward to whistle blowers

7. Whistle blowing program


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WCO ESA Region 25

The Business community has a role to play inpromoting integrity; Sign a MOUs on facilitating trade as provided for

under Pillar 2 of SAFE,

Trade associations could help in capacity buildingsuch as the accounting associations, Business Associations could also develop integrity

codes of conduct, Develop integrity advocacy programs.

8. Business co-operation


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WCO ESA Region 26

Member administrations are at varying stages ofintegrity development;

Majority of member administrations have; Signed MOUs amongst themselves thus implementing Pillar

1 of SAFE

Examples: Joint Border controls, Informationsharing on advance cargo, joint integrity training programs;

Developed codes of conducts; Established audit and investigation units Embraced WCO trade facilitation instruments such as the

KYOTO convention.

9. Regional perspective


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WCO ESA Region 27

In particular, the WCO ESA region has demonstrated itscommitment to promoting integrity through the NAIROBIINTEGRITY RESOLUTION of 24th Feb. 2007.

In addition Member administrations AGREED to:

Develop a regional integrity model code of conduct; Undertake peer reviews; Harmonize risk management systems,

Embrace integrity development tools of the WCO; Develop a regional pool of experts on integrity, Promote customs to customs co-operation and where possible share

infrastructure such as NII. Set up a C2B partnership week

The challenge is walking the talk!Finally, there is no easy or quick solution to the issue of integrity

9. Regional perspective (Contd)


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WCO ESA Region 28

Thank you for your attention

09 - gfv customs workshop - panel - trade-customs partnership - torero

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