COCO--ORDINATED BORDER ORDINATED BORDER MANAGEMENT (CBM)MANAGEMENT (CBM)

Customs in the XXI Customs in the XXI CenturyCentury

When I was told I was Delivering this Presentation

The World Customs The World Customs Organization (WCO) is Organization (WCO) is

the only the only intergovernmental intergovernmental organization with organization with

competence in competence in Customs matters.Customs matters.

�� Established in 1952 as the Established in 1952 as the Customs CoCustoms Co --operation operation CouncilCouncil

�� Renamed WCO as working Renamed WCO as working title in 1994title in 1994

�� Headquarters in Brussels Headquarters in Brussels

�� Currently representing 174 Currently representing 174 members from all members from all geographic regions and at geographic regions and at different stages of different stages of developmentdevelopment

Evolution of CustomsEvolution of Customs

Revenue Collection Revenue Collection (Customs duties & excise levy)(Customs duties & excise levy)

Protection of Society <health, safety>Protection of Society <health, safety>(drug trafficking, firearms, environment etc.)(drug trafficking, firearms, environment etc.)

Economic Development Economic Development <trade, investment><trade, investment>(trade facilitation)(trade facilitation)

Custom

s functionC

ustoms function

Protection of Economic InterestsProtection of Economic Interests(domestic industry)(domestic industry)

Security <terrorism>Security <terrorism>(shifting focus to entire supply chain)(shifting focus to entire supply chain)

SAFE Framework and C21SAFE Framework and C21

Customs in the 21Customs in the 21 stst Century (Century ( ““ C21C21”” ):):WCOWCO’’s Strategic Directions Strategic Direction

�� Approved as the future Approved as the future Customs roadmapCustoms roadmap

�� From vision, aspiration to From vision, aspiration to implementationimplementation

�� 10 building blocks for C2110 building blocks for C21

�� Priority BBs: Globally Priority BBs: Globally Networked Customs and Networked Customs and Coordinated Border Coordinated Border ManagementManagement

�� Future role of WCO: Future role of WCO: Standard setting; capacity Standard setting; capacity building; monitor building; monitor implementation; funding; implementation; funding; researchresearch

Coordinated Border Management

�� 22ndnd building block of C21building block of C21

�� Based on collaboration/cooperationBased on collaboration/cooperation

�� RKC GA Chapter 3 and 7 + risk managementRKC GA Chapter 3 and 7 + risk management

�� SAFE Framework (security of supply chain)SAFE Framework (security of supply chain)

�� Data/message standards, UCRData/message standards, UCR

�� Mutual Recognition (includes AEO concept)Mutual Recognition (includes AEO concept)

�� International Trade Single Window International Trade Single Window

BackgroundBackground

�� Increasing volumes of people and goods at Increasing volumes of people and goods at bordersborders�� Greater expectation for speedy clearance timeGreater expectation for speedy clearance time�� Effective application of national laws to protect Effective application of national laws to protect

national interests and securitynational interests and security�� Stagnant or declining resourcesStagnant or declining resources

�� A myriad of inspections and controlsA myriad of inspections and controls�� Customs, medicoCustoms, medico --sanitary, veterinary, phytosanitary, sanitary, veterinary, phytosanitary,

immigration etc.immigration etc.�� Slow clearance time, increased costsSlow clearance time, increased costs

�� CBM as a solutionCBM as a solution�� Open and secure bordersOpen and secure borders

COCO--ORDINATED BORDER ORDINATED BORDER MANAGEMENTMANAGEMENT

�� CBM to address:CBM to address:

-- Multiplicity of agencies at the borderMultiplicity of agencies at the border

-- Financial and staffing limitations Financial and staffing limitations ––

hours of servicehours of service

-- Adoption of international standardsAdoption of international standards

-- Transparency concerning legislationTransparency concerning legislation

-- Coordination of controls with Coordination of controls with

neighbouring and trading countriesneighbouring and trading countries

CoCo--ordinated Border Management ordinated Border Management in the 21in the 21stst centurycentury

MULTIPLICITY OF BORDER MULTIPLICITY OF BORDER AGENCIESAGENCIES

�� Border agencies at different crossing Border agencies at different crossing points will have their competencies points will have their competencies designateddesignated

�� BCPs of neighbouring countries will have BCPs of neighbouring countries will have similar competencies similar competencies

�� Documentary checks will be done at the Documentary checks will be done at the border by lead agency (Customs). border by lead agency (Customs).

�� Physical (non security) checks will be Physical (non security) checks will be conducted inlandconducted inland

�� One border agency will manage the borderOne border agency will manage the border

FINANCIAL LIMITATIONSFINANCIAL LIMITATIONS

�� Joint controls will be the normJoint controls will be the norm-- One countryOne country’’s Customs will be s Customs will be trained/authorized to perform both countries trained/authorized to perform both countries checkschecks

-- One country could specialize in one area and One country could specialize in one area and the other country in anotherthe other country in another

�� Common facilities will be constructedCommon facilities will be constructed

�� Administrations will share the use of Administrations will share the use of equipment equipment

-- XX--rays, scanners, dogs, surveillance rays, scanners, dogs, surveillance equipmentequipment

FINANCIAL LIMITATIONSFINANCIAL LIMITATIONS

�� Certification of exporting countryCertification of exporting country’’s s

authority will be accepted as authority will be accepted as

equivalent for importing countryequivalent for importing country

�� Systems of preSystems of pre--clearance of people clearance of people

and goods will be implementedand goods will be implemented

INTERNATIONAL STANDARDSINTERNATIONAL STANDARDS

�� Only international standards for Only international standards for

certification will be usedcertification will be used

�� Traders better informed and in a Traders better informed and in a

position to complyposition to comply

�� All countries enforcing same All countries enforcing same

standardstandard

INTERNATIONAL STANDARDSINTERNATIONAL STANDARDS

�� Customs documents will be standardized Customs documents will be standardized

and simplifiedand simplified

-- UN layout key/WCO Data ModelUN layout key/WCO Data Model

-- Single Goods Declaration for import Single Goods Declaration for import

and exportand export

-- single transit documentsingle transit document

-- international guarantees for transitinternational guarantees for transit

�� G2G,G2B, B2G and B2B data exchange G2G,G2B, B2G and B2B data exchange

will use international standards will use international standards

IMPROVED TRANSPARENCYIMPROVED TRANSPARENCY

�� Up to date legislation, regulations and Up to date legislation, regulations and procedures will be maintained and procedures will be maintained and published regularly published regularly

�� Enquiry points will be available to the Enquiry points will be available to the publicpublic

�� Standards will be clearly defined and Standards will be clearly defined and readily availablereadily available

�� Certification processes will be readily Certification processes will be readily available and reasonably priced (GATT available and reasonably priced (GATT VIII)VIII)

�� ““Single WindowSingle Window”” border processing will be border processing will be standard (paperless)standard (paperless)

COORDINATION WITH COORDINATION WITH OTHER COUNTRIESOTHER COUNTRIES

�� Juxtaposed offices will have the Juxtaposed offices will have the same hours of service and same same hours of service and same competenciescompetencies

�� Mutual Acceptance Agreements will Mutual Acceptance Agreements will be in place to allow equivalence to be in place to allow equivalence to conforming standards conforming standards –– no need for no need for duplicate testsduplicate tests

PILLARS OF COPILLARS OF CO--ORDINATED ORDINATED BORDER MANAGEMENTBORDER MANAGEMENT

PILLARS OF COPILLARS OF CO--ORDINATED ORDINATED BORDER MANAGEMENTBORDER MANAGEMENT

�� IntraIntra--Service CooperationService Cooperation

�� InterInter--Agency CooperationAgency Cooperation

�� International CooperationInternational Cooperation

INTRAINTRA--SERVICE COOPERATIONSERVICE COOPERATION

�� Cooperation between administrative units Cooperation between administrative units

and border crossing points will be dynamicand border crossing points will be dynamic

�� Cooperation between border crossing Cooperation between border crossing

points and inland control points will also points and inland control points will also

be dynamicbe dynamic

�� Effective two way communication will Effective two way communication will

continuecontinue

INTERINTER--AGENCY COOPERATIONAGENCY COOPERATION

�� Headquarters and border locations will Headquarters and border locations will

have regular interhave regular inter--agency meetingsagency meetings

�� Coordinated examinations when required Coordinated examinations when required

will be the normwill be the norm

�� Integrated interIntegrated inter--agency risk management agency risk management

with Integrated IT systemswith Integrated IT systems

�� Joint controls/investigations will existJoint controls/investigations will exist

�� MoUs delineating clear authority for who MoUs delineating clear authority for who

does what will existdoes what will exist

INTERNATIONAL COOPERATIONINTERNATIONAL COOPERATION

�� Local on both sides of borderLocal on both sides of border

�� BiBi--lateral cooperationlateral cooperation

�� MultiMulti--lateral exchange of information lateral exchange of information to combat crime will be in placeto combat crime will be in place

�� Common training programmes will Common training programmes will be conductedbe conducted

�� International Conventions will be International Conventions will be acceded to and their measures acceded to and their measures implementedimplemented

ADVANCE INFORMATIONADVANCE INFORMATION

�� Submission of advance cargo information Submission of advance cargo information

is the key to Risk Management is the key to Risk Management –– systems systems

for this will be implementedfor this will be implemented

�� Paramount importance in trade facilitation Paramount importance in trade facilitation

and integrated border managementand integrated border management

�� Single Windows will be functionalSingle Windows will be functional

SINGLE WINDOWSINGLE WINDOW

A single window is defined as an A single window is defined as an

intelligent facility that allows parties intelligent facility that allows parties

involved in trade and transport to involved in trade and transport to

lodge standardized information and lodge standardized information and

documents with a single entry point documents with a single entry point

to fulfill all import, export and transit to fulfill all import, export and transit

related regulatory requirements. related regulatory requirements.

The Single Window facility The Single Window facility should allowshould allow ::

�� Lodgement of standardised information Lodgement of standardised information and documents with a single entry point and documents with a single entry point (to fulfil all export, import and transit (to fulfil all export, import and transit related regulatory requirements) related regulatory requirements)

�� if the information is electronic, then if the information is electronic, then individual data elements should only be individual data elements should only be submitted once submitted once

The Single Window facility The Single Window facility should:should:

�� Support the sharing of information by a Support the sharing of information by a legal framework that provides privacy and legal framework that provides privacy and security in the exchange of informationsecurity in the exchange of information

�� CoCo--ordinate the controls of the various ordinate the controls of the various governmental authorities, where governmental authorities, where appropriateappropriate

�� Provide facilities to receive payment of Provide facilities to receive payment of duties and other chargesduties and other charges

�� Provide access to Provide access to trade related government trade related government informationinformation

From the Present to the FutureFrom the Present to the Future

A political mandateA political mandate

�� Appointment of an implementation agencyAppointment of an implementation agency�� A mandate and authority over other relevant A mandate and authority over other relevant

border agenciesborder agencies�� New domestic legislation drafted when New domestic legislation drafted when

necessarynecessary�� Memoranda of Understanding (MOU) with other Memoranda of Understanding (MOU) with other

agencies and other governmentsagencies and other governments

�� Domestic and international CBMDomestic and international CBM�� Strong political willStrong political will�� A strong lead agencyA strong lead agency�� Coordination of controls and information Coordination of controls and information

exchangeexchange

Domestic interagency cooperationDomestic interagency cooperation�� Functions of InterFunctions of Inter --Ministerial Committee:Ministerial Committee:

�� Review of each border agencyReview of each border agency�� Mission, procedures, and data requirementsMission, procedures, and data requirements�� Comparison of each otherComparison of each other ’’s requirements s requirements �� Identify redundancies & aspects of little added val ueIdentify redundancies & aspects of little added val ue�� Eliminate Eliminate ““ turf warsturf wars ””

�� Eliminate redundancies and assign Eliminate redundancies and assign competencies to each agencycompetencies to each agency

�� Finalize MoUs with each agency clearly stating Finalize MoUs with each agency clearly stating roles and responsibilities at border.roles and responsibilities at border.

Use of international standardsUse of international standards�� Improve effectiveness of CBMImprove effectiveness of CBM

�� Simplification & harmonization of operational & Simplification & harmonization of operational & technical standardstechnical standards

�� Understanding of requirements by traders and Understanding of requirements by traders and resultant improved complianceresultant improved compliance

�� Revised Kyoto ConventionRevised Kyoto Convention�� Transparency, predictabilityTransparency, predictability�� Necessary standards for IBMNecessary standards for IBM

�� SAFE Framework of StandardsSAFE Framework of Standards�� Identification of security risks by advance Identification of security risks by advance

information information �� Integrated Supply Chain Management GuidelinesIntegrated Supply Chain Management Guidelines

�� WCO Data ModelWCO Data Model

Thank you for your Thank you for your attention attention Asha Menon

World Customs OrganizationWorld Customs Organization

Rue du MarchRue du Marchéé 30, 1210 Brussels30, 1210 Brussels

Tel : + 32 (0)2Tel : + 32 (0)2--209209--93479347Fax: + 32 (0)2Fax: + 32 (0)2--209209--94939493http://www.wcoomd.orghttp://www.wcoomd.org

ee--mail: mail: asha.menonasha.menon@wcoomd.org@wcoomd.org