gitex 2017 - fca.gov.ae customs magazine - issue 4.pdfiting gitex is a journey into the virtual...

GITEX, which is in its 37th year, is a ‘Smart Wall’, on which the employees of both govern-ment and private institutions in the United Arab Emirates paint a clear picture of what awaits fu-ture generations.In all its aspects, GITEX is growing brighter, with more than 4,100 institutions and companies participating from 70 countries. This includes 1500 new technology companies participating for the first time.This growing number of participants confirms the UAE’s status as the leading smart destination in the region and perhaps in the world. GITEX promotes year on year, the status of the Country as a global practitioner in electronic and intelligent technology applications.The focus of the current exhibition illuminates the great developments of digital transformation, artificial intelligence and virtual reality projects. Vis-iting GITEX is a journey into the virtual world, where artificial intelligence is used to meet human needs, raise the level of well-being and quality of life, and provide the greatest safety, comfort and happiness.This short journey into the virtual world confirms to us the intelligence and vision of our wise leadership and how it will help to overcome the many challenges and difficulties that could hinder progress or allow slow down their dream and vision.During the journey, you feel a sense of joy and pride for this country and that unique leadership that works to make people happy and improve their qual-ity of life. After talking about smart applications, we are talking about smart cities, expanding services, domains, sectors and smart applications.In this regard, the country’s security sector receives the highest mark in its level of interest in service development and the development of new meth-ods and tools. Maximizing the use of digital transformation technology and virtual reality. Leading examples being the smart fingerprint project, and the deployment of ‘state of the art’ surveillance devices and systems.It also draws attention to the initiatives and smart projects in the commercial and economic sectors and the development of the transport and roads infra-structure work that has caught everyone’s attention. The participation of the Customs sector in the country was characterized in both quantity and quality, with a wide range of Customs departments in-cluding Abu Dhabi, Dubai, Sharjah, Ajman, Ras Al Khaimah and Fujairah, participating with their quality smart projects and applications. Among the most prominent projects and customs initiatives are the elec-tronic clearance platform from Abu Dhabi Customs, the Intelligent Risk Sys-tem and the Answer Service from Dubai Customs, and the Mobile Customs Center of Sharjah Customs. The latter is a center equipped with the latest systems for customs operations, inspections and technical analysis. This is the core of an Arab industry in the field of customs equipment and technol-ogy (as mentioned in the previous issue). The mobile center can assist in the implementation of customs operations in cases of emergency.At the next session of GITEX, we will witness a further radical development in the participation of the customs sector in the UAE, under the directives of HH the Commissioner, the Chairman of the Authority, as the scope of participation of the customs departments expands under the umbrella of the Federal Customs Authority. This requires further planning, coordination and partnership in this field.

GITEX 2017from a Customs Perspective

Mohamed Juma BuosaibaThe published articles express the opinion of the writer and do not necessarily reflect the opinion of

the Federal Customs Authority

General Supervisor: H.E Ali Bin Subaih AlKaabi

Commissioner of Customs - Chairman of FCA

Advisory body:

H.H Sheikh Mohamed Bin Abdullah Al NoaimiChairman of Ports & Customs Department - Ajman

H.H Khalid Bin Rashid Al Mu’allaChairman of ports, customs and Free Zone Corporation

- Umm Al Quwain

H.E Mohammed Khadem Al HameliDeputy Director General of General Administration

Customs – Abu Dhabi

H.E Mohammed Meer Abdul Rahman Al SarrahDirector of the Department of Seaports and Customs-

Sharjah

H.E Dr. Mohammed Abdullah Al MehreziDirector General of Customs Department - RAK

H.E Rashid Mohammed HammadDirector General of Customs - Fujairah

Editor -in-chief: Mohamed Juma BuosaibaDeputy Editor-in-chief: Ahmad A bdulla Bin Lahej

Executive Editor-in-chief: Hassan El Kamhawi Legal Consultant: Ahmed Mohamed Albakr

Financial administration: Mohamed AlmarzooqiMarketing and Communication: Asmaa Alawadhi

Designer: Sameer MabroukTranslation: Ala’ Abu Rezeq

Copyeditor: Joe Kelly

Correspondence:Abu Dhabi, United Arab Emirates, P.O.Box

35000 – TEL: +9712-6979700E-mail: [email protected]

A quarterly magazine specializedin customs affairs,

published by the (FCA) UAE

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Distribution: Printing:

Manifest

WomenRepresent 43%of Federal Customs staff

0990’s Dayof Customs

Intelligent risk engineDubai Customs platform to completeapprovals in minutes

UAEConcludes the first AEO Mutual Recognition Arrange-ment with South Korea

14

12

Reports

Reports

Big benefitsawaiting authorizedeconomic operators (AEOs), in UAE and South Korea

20Interview

16

billion Dirhamstotal trade volume of General Non- Oil Trade during the first quarter of 2017

�� Abu Dhabi (Emirates Customs)

HH Ali Bin Sbeeh Al Kaabi, Commissioner of the Federal Customs Authority (FCA), affirmed that the 2018 Zayed Year initiative, launched by His High-ness the President of the UAE, reflects the UAE’s continued cultural development and represents a sustainable development process based on the solid foundations established by the late founding father His Highness Sheikh Zayed bin Sultan Al Nahyan.He said: Sheikh Zayed’s developmental and humani-tarian march represents a global model based on real human interest, development of resources, utiliza-tion of resources and transformation of the desert to a modern society. He pointed out that the devel-opmental model founded by Sheikh Zayed based on a solid foundation of coop-eration between the leader-ship and the people, it in-cludes the enhancement of the women’s role in society, economic diversification, overcoming scarce resourc-es, improving education and achieving social justice.HE Ali Al-Kaabi said that the initiative of His High-ness the President of the UAE in considering the year 2018 as the year of Zayed represents continuing devotion to the Leader and the Founding Father, and affirms the pride of our wise leadership in the princi-ples which he laid down. , It represents a great oppor-tunity to root these principles and human values in the new generations of UAE nationals and residents. Particularly as they did not witness this important era in UAE history and did not realize the major chal-lenges faced by founding fathers to build the state and improve the standard of living of citizens.He stressed that the launch of this initiative repre-sents an important challenge for all institutions in the country. This will require innovation and creativity

in launching initiatives to ensure that they reflect the importance of the founding principles and values that have underpinned the UAE, and the approach of the late Sheikh Zayed, to build the state and strengthen its position in the Gulf region and globally.Mohammed Juma Buosaiba, Director General of FCA, stressed the importance of the 2018 General Zayed initiative in educating the new generations of young people in the UAE and the world about the unique civilization, humanitarian and developmental experience led by the late Sheikh Zayed Bin Sultan Al Nahyan.He pointed out that Sheikh Zayed, in cooperation with his brothers, the founding fathers, constructed and led a model of comprehensive development that

utilizes limited natural re-sources in the service of the people. He pointed out that the developmental and hu-manitarian model of Sheikh Zayed based on a scientific and realistic approach to study. It guides the growth of society in different as-pects, particularly the hu-man aspect, with the aim of bringing about integration of, and interdependence

among all components of society.Buosaiba pointed out that Sheikh Zayed, “may God have mercy on him” succeeded over three decades in the application of the concept of comprehensive de-velopment moving in parallel lines in all areas. This is the, a model that is adopted by the wise leadership in UAE to maintain a rapid pace and keep abreast of the amazing developments of this era.He explained that this development model is based on humanitarian investment in all sectors that affect human life, such as education, public health, housing and social welfare. This humanitarian investment has enabled the UAE to continue to maximize the eco-nomic activity of t society.

“FCA” appreciates the initiativeof the President of the State, naming the

year 2018 as Zayed Year.

Ali al-Kaabi:The initiative

reflects the continuity of

building society and the process

of sustainable development

Buosiba:Zayed Year - a unique model of comprehensive parallel developments lines

2 3Emirates CustomsEmirates Customs October 2017October 2017

Contents 90’s Day of Customs

Inspects 120 containers and vehicles with X-ray system within one hour

///////

FCA launches a mobiledevice to detect containersin the port of Fujairah Customs�� Abu Dhabi (Emirates Customs)

H.H Ali Bin Sabih Al Kaabi, Com-missioner of Customs, Chairman of the Federal Customs Authority, dis-cussed with Shaikh Saleh bin Mo-hammed Al Sharqi, Head of the De-partment of Industry and Economy, Fujairah; ways to enhance joint co-operation between the Authority and the Department the support mecha-nisms that the Authority can provide to develop customs ports and raise the efficiency of customs work in

the Emirate in line with the devel-opment plan and expansion work in the port of Fujairah.During the meeting, Sheikh Saleh praised the level of cooperation be-tween the two sides in order to raise the level of customs work in the emirate to the highest international standards.H.H Ali Al Kaabi inaugurated the Mobile Inspection Unit to inspect the containers and vehicles using the X-ray system, within the frame-work of the Authority’s plan to sup-

port customs ports in the country with the latest equipment.During the visit, Fujairah Customs delivered 15 “Dosimeter” devices to measure radiation doses in the body to protect inspectors from radioac-tive materials during their work, five customs inspectors (3 males and 2 females) assigned to work at the Port of Fujairah Customs Center in order to reinforce the customs per-sonnel at the port. Five customs inspectors (3 males and 2 females) assigned to work at the Port of Fujairah Customs Cen-ter in order to reinforce the customs personnel at the port.HE Rashid Mohammed Saif Al Ha-mad, Director General of Fujairah Customs, HE Ahmed Abdullah Bin Lahej, Executive Director of Cus-toms Affairs Sector, attended the inauguration. As well as to execute the Techni-cal and Administrative Cooperation terms agreement in customs matters concluded between the parties on 5 March 2015 and after a joint assess-ment by the two parties confirming that their programs (the accredited Economic Operator) are correspond in terms of purpose and general ob-jective to promote the supply chain security and supporting trade facili-tation.H.H Ali Al Kaabi stressed that Fu-jairah Strategic Port is one of the most vital marine facilities in Fu-jairah and the UAE, It occupies a privileged position on the east coast of the country outside the Strait of Hormuz, and is a center for the con-vergence of shipping lines between East and West, and is an outlet for the markets of the Indian subconti-nent and East Africa.The port of Fujairah is the only multi-purpose unit on the east coast of the country and has the infrastruc-ture and the elements to qualify it to play an important strategic role at the local, regional and global levels.

Ali al-Kaabi:We aim to strengthen the inspection capabilities at customs ports with the latest equipment in the framework of continuous modernization and development

FCA: An integrated customs system to combat fake and counterfeit goods�� Abu Dhabi (Emirate Customs)

The FCA confirmed that combating fake and counterfeit goods is one of the strategic objectives of the Authority and the Customs Administrations se in the UAE. This objective is, based on the UAE›s approach to Vision 2021 and the targets of the national agenda aimed to build a competitive knowledge-based economy and protect intellectual property rights.In a press release, the FCA affirmed its’ determination to attract and apply the latest technologies, including electronic, smart applications, scanning, and inspection devices to the field of customs work. This is an important part of its overall mission, to protect society against harmful trade practices, combat smuggling, fraud and counterfeiting, and protect intellectual property rights.In addition, the FCA and the local Customs Administrations now ap-ply an integrated approach, which includes many modern systems and devices in the field of scanning and inspection, smart applications. They operate a new risk engine; to combat fake and counterfeit goods within their overall customs risk management approach. The risk engine, which is to inter-national standards, have increased the efficiency of the FCA and the local Customs Administrations. The system is fed through a num-ber customs and security commu-nication channels that provide the specifications and information related to shipments of goods coming to the country in terms of quality, country of origin, industrial and health specifications, country of origin, etc. The system then analyzes the infor-mation, identifies the level of risk associated with it and issues warnings of illicit or dangerous goods; Administrations can then deal with such goods within the applicable to laws regulations and proceduresIt also pointed out that the system of customs work in the country pro-vides many ways to inspect the goods, including, in addition to tradition-al and manual inspection, fixed and mobile radiation testing devices., All inspections are carried out in accordance with the standards and guide-lines of inspection approved by the UAE and the GCC countries within the framework of the Customs Union.The UAE is the first country in the world to implement the IPM Mobile Anti-Counterfeiting and Piracy Program to detect fraudulent and fake mobile goods. The World Customs Organization (WCO) approved this program in April 2014It also is part of the implementation of the require-ments of the Smart Government Initiative launched by HH Sheikh Mo-hammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, in 2013.


90’s Day of Customs


The Federal Customs Authority has discussed with the Federal Tax Au-thority and the local customs admin-istrations recently the mechanisms and procedures require for the intro-duction of the selective tax in early October. The tax will be applied to goods harmful to public health, such as energy drinks, soft drinks, and, tobacco and its derivatives. During the joint meeting, the role of the Au-thority and the Local Customs Ad-ministrations in the implementation of the tax was discussed.HE Mohamed Juma Buosiba, Di-rector General of the FCA, chaired

the meeting, while the delegation of the FTA was headed by Director General Khalid Ali Al Bustani. The meeting was attended by HE Ahmed Mahbub Musabeh, Director General of Dubai Customs, Mohammed Mir Abdul Rahman, Director General

of Sharjah Customs, Dr. Moham-med Abdullah Al Mehrazi, General Manager of Ras Al Khaimah Cus-toms. Ahmed Abdullah bin Lahej, Executive Director of Customs Affairs Sector (FCA), Rashid Al Kindi, Deputy General Manager of Fujairah Customs, Abdullah Al Khumairi, Director of Customs Af-fairs at Abu Dhabi Customs and a number of Department Directors and Local Customs.The director General said that the FTA is a strategic partner in the fi-nancial system of the federal gov-ernment and represents a new as-pect in moving the comprehensive national development programme

forward. Stressing the importance of the role played by the FTA in the policy of economic diversification and preparations for the post-oil era, they will provide sustainable financial resources to finance de-velopment projects, infrastructure and future plans as well as playing a role in promoting social justice and building a sustainable competitive economy.

He pointed out that it had been agreed to form a team of liaison of-ficers between the two sides to facil-itate and accelerate the implementa-tion of selective tax. Based on the recommendations of the meeting, the Authority met with the National Committee for Tariffs the following day. They discussed the classification of selective taxable goods in preparation for their adop-tion and dissemination to the local Customs Administrations. During the meeting, it was agreed that tax-able goods will not be released until it was confirmed that the appropri-ate tax declaration was issued by the FTA. This will be done via their website. The meeting also discussed the tax status of the taxable goods that are seized by the customs, the penalties imposed on them, the agreement on the free zones as registered in the tax system, and the accounting mechanism for tobacco companies registered in those areas.

At the end of the meeting, the two sides agreed to hold the second co-ordination meeting between them at the end of October to further de-fine the procedures and identify the challenges faced in the implementa-tion process of the tax after the first month of implementation.

In preparation for its launch in early October

Joint team from Customs and Tax established to facilitatethe implementation of Selective Tax

UAE and South Koreaadopt the Operations Manu-al to initiate the “AEO”�� Abu Dhabi (Emirates Customs)

The United Arab Emirates and the Republic of Korea have jointly adopted the Operations Manual for the implementation of a Mutual Recognition Arrangement (MRA)..This is an internationally recognized procedure, in line with World Customs Organizations’ (WCO policy, which provides facilitation benefits to members of each countries accredited Authorized Econom-ic Operators, [(U)AEO], for intra country trade. It further strengthens the security of goods entering and leaving both countries.The guide was agreed during a recent visit by a delegation from the Federal Customs Authority headed by Saud Salem Al-Agroobi, Direc-tor of International Relations. The delegation included representatives of the local Customs Administrations..The manual for the implementation of the Mutual Recognition Ar-rangement between the parties includes how to identify the companies accredited in the program the technical mechanism for application, the exchange of technical information for the monitoring of the ar-rangement and the benefits it provides to each country. HH Ali bin Subeeh Al Kaabi, Chairman of the Federal Customs Au-thority, said that the recent visit of the FCA and the local Customs Administrations delegation to the Korean Customs finalized agree-ment on the work plan for the implementation of Mutual Recognition Arrangement in both countries.He added that South Korea represents a strategic trading partner for the UAE and represents an important Customs partner for the FCA. He pointed out that the volume of non-oil trade (direct trade and free zone trade) for the UAE with South Korea reached AED 106 billion during the period2014 to2016. He pointed out that the AEO program represents a qualitative step for the customs in the UAE. It is of great importance in strengthening partnership with the private sector including small and medium companies that work in the fields of in-ternational trade, logistics, transport and customs clearance.HE Mohammed Jumaa Buosiba , Director General of the Authority, said that the AEO program makes the companies and parties involved in the Customs process an active partner in the management of the international movement of goods and merchandize . It also contributes to improving the commitment of these companies and parties to WCO standards for facilitation of legitimate trade supply chain security and development of world trade.

Buosaiba:Classification of taxable goods through the custom tariff to be circulated to local Customs Administrations




Within the overall framework of the Country’s celebration of the Emirati women the FCA celebrated UAE Women›s Day. Acknowledging their part in the development pro-cess of the wise leadership policy to empower women to play a full role in serving the country.On this occasion H.E Ali Al Kaabi, Commissioner of the FCA, congrat-ulated the working women in the Authority and the Customs sector in the country; Stressing that women are a fundamental and important pil-lar within Customs .H.E said the percentage of women within the FCA amounted to 43.1% of the total number of employees currently. The UAE women›s share of the leadership positions in the Authority is about 50%. Emphasiz-ing their conviction of the ability of women to contribute and creative in the specialist field of Customs work.H.H Al Kaabi stressed the commit-ment of the Authority to empower Emirati women in all areas of Cus-

toms work,. praising the great role played by the mother of the UAE Her Highness Sheikha Fatima bint Mubarak Al Ketbi-May Allah prolong her life - ; in supporting the issues of Emirati women, raising their status in in-ternational forums, and enhancing their role in the national develop-ment system.

H.H added «Since the inception of the Union State “Federalism”; Emirati women have made bright achievements in giving and belong-ing that contributed to the UAE›s rise to the highest international centers. Women have now many successful Role models and this development is applauded globally. Again stressing that this is due to the clear direction on the importance of women given by the founding fathers, the generous patronage of Her Highness Sheikha Fatima bint Mubarak Al Ketbi, and the contin-ued support for Emirati woman by our wise leadership «.For his part, H.E Mohamed Juma Buosaiba, Director General of the Authority, congratulated the UAE women. , Saying: «since the estab-lishment of the union state, Emirati women have made a significant im-pression in all walks of life. In light of the national development process and the renaissance witnessed by the country for decades, women have proved their ability to work in terms of effectiveness, love for their home-land, and individual achievement. ”

Women Represent 43%of Federal Customs staff

The FCA celebrates the UAE Women›s Day

Al Kaabi: As part of the UAE leadership Vison 2021 we are keen to empower Emirati women in all areas of customs work,

Buosaiba: Women have proven their ability to work in terms of effectiveness , love for their homeland, and their individual achievement.

In 6 months Dubai Customs delivers 4.5mntransactions, up 4.5%�� Dubai (Emirates Customs)

Dubai Customs processed 4.5 mil-lion transactions in the first half of 2017, posting a growth rate of 4.5 % compared to the 4.3 million transac-tions scored in the same period last year, announced Sultan Ahmed Bin Sulayem, DP World Group chairman and CEO and chairman of Ports, Customs and Free Zone Cor-poration.Bin Sulayem commented that Dubai’s stature as a global trade hub and its sophisticated customs and border services propelled the increase in the number of transac-tions delivered by Dubai Customs. “The positive growth in transactions came despite the general slowdown in world trade which definitely is a strong sign of Dubai’s resilient and healthier economy”, he said. Figures released by Dubai Customs show that Submit Customs Declara-tion service had the biggest share of total transactions at 80.6% with 3.6 million transactions processed. Submit Claim service accounted for 458,000 transactions at 10.2% while Book Inspection Appointment service contributed 139,000 trans-actions at 3.11% and Register Busi-ness 53,400 transactions at 1.1%. Transactions delivered by Dubai Customs covered 19 main services provided through 23 inland, sea and air customs centers across Dubai. The services were catered to cus-tomers through six main channels including Dubai Trade, B2G elec-tronic channel, website, and mobile applications. Sultan Bin Sulayem pointed out that the Ports, Customs and Free Zone Corporation (PCFC) has contrib-uted a great deal to positioning the UAE at the top of global competi-tiveness in terms of the efficiency of customs authorities and trade facili-tation indices.

“Speeding up the delivery of cus-toms services and easing the flow of legitimate trade, Dubai Customs was able to process 9 million trans-actions annually. If we add this fig-ure to the number of transactions delivered by other PCFC entities the overall would reach up to 18 million transactions a year – that is 1.5 million transactions a month, 50,000 transactions a day. We could not have handled such a huge sum of transactions hadn’t we invested in service innovation, technology and smart transformations to double our efficiencies in all aspects of the trade supply chain,” added Bin Sulayem. “Our objective is to continue devel-oping trade and customs services through qualitative initiatives that will ensure Dubai is 10 years ahead of the world in line with its ambi-

tious 10X vision.” On his part, Ahmed Mahboob Mus-abih, director of Dubai Customs said: “Dubai Customs attaches great attention to promoting synergy and partnership with our clients to en-sure them real added value from trading through Dubai.”“The growth achieved in the num-ber of customs transactions is the fruit of our commitment to provid-ing first-class facilities to traders in order to attract more trade and busi-ness into Dubai. We have been keen to develop our capacities in terms of human capital, inspection and scanning technologies, clearance processes and systems and adopting global best practices and standards to step up our readiness levels for the coming Expo 2020 and materi-alize the UAE vision 2021.”

Submit Customs Declaration service had the biggest share of total transactions at 80.6% with 3.6 million transactions processed



696 seizures made by RAK Intl. Airport customs during this year’s 1st half�� RAK (Emirates Cusotms)

The number of seizures made by customs inspectors of RAK Cus-toms at RAK International Airport is 696 seizures during the first six months this year; the seizures varied from prohibited narcotics to sharp weapons and tools and restricted items; items that will be detained until they are released under a per-mit of the competent authority.Mr Mohammed Karam Al Blushi, manager of Customs Centres De-partment at RAK Customs, attrib-uted this success to the vigilance of the customs inspectors at RAK International Airport, who are well-prepared to foil any attempts by smugglers or of those who attempt to threaten the security of society. At the same time, he commended the professionalism of the customs inspection officers, which would not be attained without the persistent support by the higher administration of RAK Customs, notably HE Dr Mohammed Al Mehrezi, RAK Cus-toms Director General, to intensive-ly train the newly recruited customs inspectors by putting them through ‘Asas’ training as a compulsory ori-entation programme. He added that ‘Asas’ training is well designed to provide the customs inspector trainees with necessary inspection skills and techniques which would assist them in handling passenger and goods movement, whether imported and exported in to or from Ras Al Khaimah. Mr Mohammed Karam added that the training is also intended to raise their knowledge on body language and security sense. He explained that all of that has clearly enhanced smoothness of passenger move-ments through RAK International Airport without any real obstacles

or constraints, resulting in notice-ably increased level of customer satisfaction.Mr Karam also praised the support which customs centres are receiving from the Head office, particularly in terms of providing all customs cen-tres, including RAK Airport customs centre, with state-of-the-art and ad-vanced inspection devices, not to mention the newly deployed body scanner at RAK Airport, which has been speeding up checks of suspi-cious passengers, and Smiths Detec-tion baggage X-ray machine and the IonScan machine, a simultaneous narcotics and explosives detector.He explained that all these devices have enhanced customs procedures applied and have minimised the time required to analyse samples taken from suspected baggage, something that does matter in achieving the strategic goals of RAK Customs and

its vision, which addresses the facil-itation of customs clearance proce-dures and increase of customer and staff satisfaction.Al Blushi continued to say that RAK Customs always seeks to consoli-date partnership with strategic part-ners in order to achieve the possible growth rates of trade movements in Ras Al Khaimah. In this regards, he pointed out that RAK Customs and RAK International Airport adminis-tration have been closely working to facilitate customs clearance proce-dures for goods at the Airport Cargo Village, with noticeably improve in trade movement from and in to Ras Al Khaimah.He also confirmed that a number of investors are seeking to increase their importation of goods through RAK Airport due to the level of trade facilitation provided to them in relation to customs clearance proce-

dures, and the permanent presence of customs inspectors, which has clearly manifested itself in quick clearance and facilitated movement of imported shipments.On his side, Mr Hassan Al Dhan-hani, manager of RAK International Airport customs, said that the newly recruited customs inspectors, who have been well trained and quali-fied to use Dhabi customs clearance system, have been able to work as a comprehensive staff; staff who can inspect and examine goods and carry out customs clearance jobs as well.Al Dhanhani noted that RAK Inter-national Airport customs centres is manned with 65 staff in total in or-der to cope up with the increasing passenger movement at the Airport; one of the very vital points of entry of Ras Al Khaimah.He pointed out that both the Depart-ment and staff are giving special care to certain types of accessibil-ity passengers in order to facilitate and quicken their experience while passing through customs controls, particularly during Al Hajj season, which due to start in few weeks’ time. Al Dhanhani said that Al Hajj is considered a season full of pas-senger movement, which normally requires customs staff at the centre to focus more on speeding and fa-cilitating their pass through customs controls whilst receiving returning hajjis with heart-felt smile and con-gratulations. “Staff at RAK International Airport customs have another significant role in raising passengers awareness of items that are prohibited in the country, avoiding them being liable to any legal accountability and sav-ing their time and money,” he added.

Dubai Customs carriesout 133 IPR seizures worth AED 72.6 million�� Dubai (Emirates Customs)

Dubai Customs has firmly stood against infringements of intellec-tual property rights in order to protect society and the economy from the harm of counterfeit goods, and to support a competitive invest-ment environment in Dubai by enabling producers to avoid losses arising from imitation of their brands.The number of seizures of IPR-infringing items carried out by Dubai Customs in the first half of 2017 was 133 seizures, worth up to AED 72.6 million.The seized goods included electronics, watches, glasses, clothing, fabrics, perfumes and cosmetics, medicines and medical equipment, tires, auto spare parts, telephones and accessories, computers and other imports.Yousef Ozair Mubarak, Director of IPR Department said: «Intellec-tual property rights protection gains double importance in the evolu-tion course of our national economy at the current stage, particularly that the UAE has an orientation to focus on unleashing the spirit of creativity and innovation in government work and in society at large.» «Accordingly, we put the protection of intellectual property rights on top of our priorities at Dubai Customs, and are working to im-prove the level of our performance in dealing with counterfeit goods, by providing the best levels of training for staff and inspectors in the circuit, to enable them to detect counterfeiting and piracy efficiently, backed by the best innovations and technologies in the control and inspection field» he added. Ozair pointed out that Dubai Customs equips its centers with the most advanced inspection equipment to efficiently guarantee the best results in controlling and seizing counterfeited products. “We also cooperate with the World Intellectual Property Organiza-tion (WIPO) and with other relevant authorities to coordinate efforts against counterfeiting” he added.

In first half of 2017




The UAE participated in the 129thand 130th meetings of the Council of the World Customs Or-ganization (WCO) held at the head-quarters of the Organization in the Belgian capital Brussels. The delegation was headed by Ali bin Sabih Al Kaabi, Customs Com-missioner and Chairman of the Federal Customs Authority. The delegation included Ahmed Mah-boob Musabeh, Director General of Dubai Customs, Mohammed Mir Abdulrahman, Director Gen-eral of Sharjah Customs, Ahmad Al Khaili, manager of His Excellency, commissioner and Chairman of Au-thority office and Saud Al-Agroobi, Director of International Relations Department at the FCA.On the side-lines of the meetings, His Excellency Ali bin Sabih Al Kaabi, Customs Commissioner and Chairman of the Federal Cus-

toms Authority met with Kunio Mikuria, Secretary-General of the World Customs Organization, and discussed with him ways to further develop cooperation between the UAE and the World Customs Or-ganization through the exchange of best practices and latest customs developments. Taking advantage of the leading role played by UAE Customs in studies carried out by the World Organization.The meeting touched upon the role of the North African, Middle East and Near East Region Office for Ca-pacity Building (ROCB) currently hosted by the UAE in Abu Dhabi Customs. Kuneo Mikuria thanked the UAE for its important role in supporting and developing customs in the region through hosting the of-fice.His Excellency Commissioner Ali Al Kaabi affirmed that the UAE is an active member of WCO’s pro-grams and initiatives in its pivotal

role as an important trading player in the global trade map and a re-gional trading centre. He pointed out that the UAE is committed to all agreements concluded with the World Customs Organization and is keen to apply the best practices in customs work and to achieve its ob-jectives by raising the level of cus-toms work in the country to become a global leader. He explained that the Abu Dhabi Customs hosting of the WCO Re-gional Capacity Building Office of underlines the important role played by the UAE in the international cus-toms and stressed the importance of the support provided by UAE to develop customs institutions and promote customs performance in the countries of the Middle East and North AfricaRecognition ArrangementWhen at the Council Meeting, the UAE signed its’ first Mutual Rec-ognition Agreement. This was with

South Korea as part of the interna-tional extension of the Authorized Economic Operator program recent-ly implemented in the UAE. The agreement was signed by on behalf of the UAE by Ali Al Kaabi .Speaking at the signing, His Ex-cellency Ali Al-Kaabi said that the Authorized Economic Operator program is the latest in the series of development programs and proce-dures adopted by the Customs Sec-tor in the UAE. The program meets the requirements of the WTO Trade Facilitation Agreement, which was ratified by the UAE in last April,-the first Arab country to do so.His Excellency added, ‘The pro-gram reflects the importance of partnership between customs and the private sector, strengthening the security system of the state and fa-cilitating trade, though expediting the clearance of permitted goods, preventing prohibited goods, and providing a matrix of incentives and

benefits for trade ’.His Excellency added that this de-velopment is in pursuit of its objec-tives under the UAE Vision 2021 which sets the national development agenda. This is through an integrat-ed system of measures, designed to ensure the balanced implementation of the two aspects of the customs equation “safe society and trade fa-cilitation.” The Federal Customs Authority, in cooperation with the local Customs Administrations have approved the implementation of the Authorized Economic Operator programme at the country level. The Authority also seeks to maximize the benefit for the accredited companies by signing Mutual Recognition Arrangements between the UAE and trading part-ners globally. This will enable local-ly accredited companies to benefit from the system privileges in terms of the procedures and incentives in the partner countries.

The ‘Authorized Economic Op-erator’ program provides many ad-vantages to supply chain partners including the ability to complete clearance procedures before the ar-rival of the shipment the inclusion of participants in Mutual Recogni-tion Agreements and preferential customs treatment. The program in-cludes all parties in the supply chain - importers, exporters, manufactur-ers, clearing agents, transporters, in-termediaries of transporting compa-nies, brokers, ports and airports.On the side-lines of the meeting at the World Customs Organization, the UAE delegation held bilateral meetings with a number of delega-tions of the member countries, dur-ing which they discussed means of cooperation, enhancing customs relations, exchanging experiences, information and best customs and trade practices. .Co-operation agreementThe UAE delegation signed an agreement on cooperation and mu-tual administrative assistance in the field of customs with the Republic of Belarus. It also held a bilateral meeting with Pierre Chabar, Deputy Director General of the Customs of Argentina, to consider the best prac-tices and activate the mutual admin-istrative cooperation and assistance agreement signed between the two countries.The meetings reviewed the WTO Agreement on Trade Facilitation, which entered into force in February 2017. They examined how to apply the provisions of the Agreement through a program called “Merca-tor” and other tools, indicators and best practices provided by the World Customs Organization.

UAE Concludes the first AEO Mutual RecognitionArrangement with South Korea

Al-Kaabi heads the delegation of the State to the Council of the World Customs Organization meetings

Concluding an agreement for co-operation on administrative and technical assistance with Belarus


Reports

Collecting local awards & international acclaim

Intelligent risk engineDubai Customs platform to completeapprovals in minutes�� Dubai (Emirates Customs)

The World Customs Organization (WCO) praised the ‘Intelligent Risk Engine” in it’s recent Columbus mission report, The ‘engine’ was de-veloped and implemented by Dubai Customs and was considered by the international organization as a world-class system. It also made the further recommendation that all cus-toms departments around the world should learn from this system.Dubai Customs continues to achieve a clear and integrated vision and strategy. In addition its leading ini-tiatives in the field of digital tech-nology have led to it been recom-mended as a model to be followed at local, regional and international levels. The WCO Mission report concluded that Dubai Customs is working hard and continuously to achieve the WCO vision.`Dubai Customs is a pioneer in the development of digital technol-ogy through improvements in all its smart services, and the creation of programs and systems that simplify customs procedures to facilitate the clearance processes, and dramati-cally reduce the need for stakehold-ers to be physically involved. This has produced significant savings in costs for both traders and govern-ment. The Dubai Customs Department has devised advanced systems to facili-tate and enhance trade such as the Mirsal 2 system, Intelligent Risk Engine, the Smart Workspace Plat-form and the Advanced Container Inspection System. The Department has also launched the Authorized

Economic Operator (AEO) program under the umbrella of the FCA. These smart and innovative systems and programs have succeeded in en-hancing the value of Dubai’s foreign trade.

Intelligent System The “Risk Engine” system, which developed by Dubai Customs using its own ‘in house’ team, is classified as a smart system to be fed through multiple channels with informa-tion on customs data for goods and persons. The Customs Intelligence Department at Dubai Customs ana-lyzes this information to identify risks expediting the completion of procedures for the clearance of le-gitimate trade and intercepting sus-pected shipments. Within the framework of the De-partment’s vision to become “the world’s leading customs administra-tion in support of legitimate trade, the system helps provide a high level of service to customers, saves time and effort, ensures trade facili-tation and protects the community

from the dangers of smuggling, “ .It enables the Department to fulfil its mission to protect society, promote economic development through facilitation. It enhances the com-petitiveness of Dubai, in particular, and the UAE in general with global competitiveness and inward invest-ment.

Outstanding ProjectIntelligent Risk engine system won Dubai Customs local and interna-tional accolades for its uniqueness and innovation. The project won the Dubai Government Excellence Program Award for the Most Distin-guished Technical/Technical Project (2012-2013).In real terms, the system has con-tributed significantly to achieving the objectives of facilitating legiti-mate trade, and protecting the local and international community from the dangers of smuggling through the identification and by intercep-tion of suspected shipments. Non-hazardous transactions, which were automatically approved through the risk engine system, reached 97% in 2016 of total customs transactions in that year, which providing cus-tomer satisfaction services.Example of the seizures that have been made as a direct result of the system are 8.6 million Tablets tram-adol worth 100 million dirhams 500 thousand tablets Captagon worth 25 million dirhams. And 171.2 kg of Cocaine worth 200 million dirhams (one of the largest seizures of its kind in the country during the past five years), African ivory worth 15 million.

Customs Transactions Innovative Customs regulations and services at Dubai Customs, in par-ticular the Intelligent Risk Engine System, have allowed an increase in the number of customs transac-tions processed by Dubai Customs whilst reducing transaction time. Between 2009 and 2016 there has been a 536% increase in the number of Customs transaction completed in 10 minutes or less.Overall, the number of customs transactions during the first quar-ter of 2017 rose to 2.329 million compared with 2.241 million in the first quarter of 2016, indicating the continued growth in customs trans-actions. The number of customs transactions completed by Dubai

Customs in 2016 about 9.1 million compared to 9 million in 2015 and 8.6 in 2014.Customs transactions include 19 major services provided by Dubai Customs to its customers through 23 land, sea and air customs centers across the Emirate of Dubai. These transactions are completed through 6 channels of service delivery in-cluding Dubai Trade, B2G Business Channel, the website of the depart-ment, and smart phones/device ap-plications

Latest smart appsIn accordance with the directives of H.H Sheikh Mohammed bin Rashid Al Maktoum Vice President and Prime Minister of the UAE and Rul-

er of Dubai, Dubai Customs contin-ues to enhance its ability to execute customs transactions quickly and efficiently through the development and use of the latest smart IT appli-cations to provide commercial and customs services to customers. This work fully supports the objectives on the development people’s happi-ness through the facilitation of gov-ernment services and the promotion of the UAE’s global and regional leadership This has helped to consolidate the UAE’s international standing as a global model for all countries in their application of the latest infor-mation technologies. .In preparation for the hosting of Dubai Expo 2020, the Department is implementing new projects and initiatives to move to a higher level of achievement. It coordinates its ef-forts with all federal and local gov-ernment agencies to provide excel-lent services. It is also working to implement what will be developed by the cities of the world ten years after the implementation of the Dubai X10 initiative and will fur-ther a move to the implementation of the “The UAE Centennial 2071” launched, to determine the future objectives of the state by the wise leadership.

he system contributes to providing World Class services to customers and it ensures the facilitation of trade and protection of society.

Automatic completion of approvals in less than two minutes for 97% of legitimate customs transactions during 2016

15Emirates CustomsOctober 201714 Emirates Customs October 2017

Reports

H.H Ali Al Kaabi:Continued growth demonstration in the foreign trade of the state reflects the development of the national economy, despite challenges

3.2%growth rate achieved

billion Dirhamstotal trade volume of General Non- Oil Trade

during the first quarter of 2017

245 46Billion DirhamsRe-Exports

Billion DirhamsExports

Billion DirhamsImports

�� Abu Dhabi (Emirates Customs):

UAE Non-oil trade continues its growth demonstration during the first quarter of this year to reach 401 billion dirham’s, comparing to 388 billion dirham’s in in the same quarter of 2016; achieving a growth rate of 3.2% - FCA.Statistical Data of FCA revealed an increase of Non-oil general trade volume (direct trade and free zones) during the first quarter of this year compared with the same quarter of the previous year, from 401 billion dirhams compared with 388 billion dirhams during the same quarter of 2016.The FCA noted that the share of foreign direct trade –during the first quarter of this year- accounted for 68% of the total trade of the country worth 272 billion dirhams. While free trade in the UAE accounted for 32% of the total trade, equivalent to 129 billion dirhams. HE the Commissioner Ali bin Sabih Al Kaabi, Chairman of the FCA, in a press release said that the continued momentum of growth in the country’s foreign trade in 2016 with the outside world reflects the growth and development of the na-tional economy. Despite the trade and economic challenges witnessed by the countries of the region and the world during the current year due to the retreat in world oil prices and the slowdown of international trade movement and retreat of in-ternational economic growth rates.H.H the commissioner the chair-man of FCA said that the primary

110

October 2017 Emirates Customs 17 Emirates Customs16

Reports

statistics of U.A.E General Non-Oil Trade volume in 2016, is regarded as important economic indicators of the national economy wellbeing and the increase of competitiveness of national products in the world mar-kets, and reflects the success of the wise leadership in transforming the economic diversification policy to a tangible reality, Resulted in several positive consequences on markets activity and the ability of the com-parativeness of national products.H.H added : foreign trade volume and the wide patch of trade partners reflects the importance of U.A.E as a trade gateway in the area and the world, pointing out to the contribu-tion of the services of logistics & infrastructural in telecommunica-tion , land ,see and air transportation and trade, in addition to service pro-vided by Financial sector and facili-tated procedures in all ports which contribute to develop trade move-ment during last few years.The statistics data shows that the U.A.E imports value grows in nar-

row limits not exceeding 5.2% dur-ing 2017.as import value 245 billion AED .against 233 billion in the pre-vious year. While exports reached, 46 billion AED and the re-exports grow by 7.4% and reaches 110 bil-lion during the mentioned quarter against 102.4 billion AED for the first quarter of 2016.The Non-oil total foreign trade weight amount reached around 57 billion, 26 billion tons of which is import weight, 26 billion tons ex-ports weight and 5 billion ton re-exports weight.H.H mentioned that the U.A.E part-ners trade map doesn’t show any

change in the ranking of geograph-ic regions .the stability of partners’ structure reflects the strong com-mercial relations of U.A.E and its position as a main component of the world trade map.FCA stated that the structure of trade partners’ as geographic region remain stable during 2017. Asia & Pacific region comes at the top of the trade partners in the Non –oil foreign trade. Its total trade reached 43% from the total trade volume. Europe region follows with 80.5 billion with 21% of the total. Then North Africa and Middle East with 74 billion with 19.5%. Then Ameri-ca & Caribbean with 38 billion and 10%. In the fifth, rank Came East &South Africa region with share 12.6 billion & 3.3%. Finally came West and Central Africa region with 11.6 billion and 3.1% of the total Non –oil trade volume.H.H. Al Kaabi then praised the ef-forts of all workers of all customs departments, exits and ports in cus-toms inspection, dispatches release

and clearance time reduction to ap-proach international rates. Pointing out that release of many dispatches takes only few minutes because of the developed methods of inspec-tion & examination adopted in local customs departments.H.H Ali Al Kaabi said that G.C.C countries considered as one of com-mercial partners of U.A.E, the share of these countries in the total trade of the UAE stabilized from 11% during the first quarter of this year.In this regard, FCA statistic data revealed an increment in the value of non-oil general trade with GCC countries to reach 45 Billion AED in 2017. The imports reached 13.7 Billion AED, the exports 9.2 Billion AED and the re-exports 22 Billion AED. Saudi Arabia ranked first of GCC countries with trade volume 99.billion AED and next came Ku-wait with value of 7.3 billion then Oman with 7.1. Finally Bahrain with 4.2 billion AED.H.H. Ali Al Kaabi stated that the ad-vanced position of Arab Countries

in the map of UAE Non-oil foreign trade, pointing to the big share of Arab Countries, which reached 19% of total volume of Non- oil general trade in 2017. Arab countries rep-resent the main destination of UAE Exports & Re-exports.As regarding top commodities dealt with during the first quarter of 2017, FCA primary data shows that Man-ufactured and Semi manufactured Gold ranked first of the top com-modities imported, with value rated 14%, then Phone Cells with value of 24.2 billion AED rated 10%, then Cars with value of 14.5 rated 6%, Diamond with value of 12.6 rated 5

% , and Petroleum Oils with value of 10.2 rated 4% of total imports value.As Non-oil exports data, Raw Gold occupied the first rank among top exported commodities with value of 12 and 26% of total export value during the first quarter of the year, then Raw aluminum with value 5.3 billion and 12% , then Jewelry and Precious Metals with value of 5 bil-lion and 11% and Pollymers of Eth-ane with value of 2.7 billion and 6% , Cigarettes exports reached 1.6 with rate 4% of total volume of Non- oil general trade in the first quarter of this year.Phone Cells came at the top of re-exported commodities during the first quarter of this year, valued 17 and rate of 15% of the total re-ex-port value, then came diamond with 13.1 billion value and 12% rate, then cars by 9%and value of 9.6 billion. jewelry and precious metals valued 6.2 billion and rated 6 % of the total, then raw and Semi manufactured with value of 5.3 billion and 5% of the total re-export value.

The structure of the partners maintains its stability and Asia, Aus-tralia and the Pacific region account for 43% of total trade

The growth of the value of re-exports increased by 7.4% in 3 months, telephones and dia-monds in the foreground

Phone Cells 17 billion AED

diamond13.1 billion AED

cars9.6 billion AED

jewelry and precious metals6.2 billion AED

raw and Semi manufactured5.3 billion AED

Raw Gold occupied12 billion AED

Raw aluminum5.3 billion AED

Jewelry and Precious Metals5 billion AED

Pollymers of Ethane2.7 billion AED

Cigarettes1.6 billion AED

Manufactured and Semi manufactured Gold34.7 billion Phone Cells24.2 billion AED

Cars14.5 billion AED

Diamond12.6 billion AED

Petroleum Oils10.2 billion AED

re-exportedAs Non-oil exports

imported

%15

%12

%9

%6%5

%14

%10

%6%5%4

%26

%12

%11

%6

%4

Asia & Pacific

162.6Europe

080.5North Africa and Middle East

074

America & Caribbean038

West and Central Africa11.6

East &South Africa12.6

%43%21

%10 %3.1 %3.3

%19.5

FCA stated that the structure of trade partners’ as geographic region remain stable during 2017 Value by billion dirhams


Reports

What, in your opinion, are the key aspects of the Customs co-operation between South Korea and the UAE?

Korea-UAE Customs Mutual Assis-tance Agreement, serves as the cor-nerstone for strengthening cooperative ties between Korea and UAE customs authorities.To create a favorable and safe trade environment for Korea and UAE, as economically important partners. In-formation exchange for illegal and il-licit trade control and mutual support for customs modernization, are being

vigorously implemented, and this part-nership will be further expanded, in ad-dition to recognition of AEO.

What is your assessment of the value of this co-operation?

The two customs authorities have en-during cooperation with various activi-ties including the 2nd customs heads’ meeting (Sep 2016) and the working-level meeting (Mar 2017).KCS believes that we have witnessed few substantial results such as, the signing of AEO MRA (Jul 2017).

What is your view of the de-velopment undertaken in UAE Customs during the current period, in developing perfor-mance and community secu-rity?

UAE ranked first in the index of the ef-fectiveness of customs bodies, which is considered to be a reliable evidence of excellence, recognized by customs at the global level. It is also highly appre-ciated that, the increased efficiency of the customs procedures, reduces costs and enhances the happiness of the par-

ties concerned.KCS is interested in adopting 24/7 SMART Customs, using cutting-edge IT devices and would like to share rel-evant information/advantages.KCS recognizes that, FCA is putting much effort in interceptions, using pre-inspections and cutting-edge technolo-gies, to address trade security risks and threats.KCS recognizes the various approach-es undertaken by FCA to secure logis-tics safety, such as collaboration with the regional customs offices and ex-change with the private sector, and it also wishes to share relevant informa-tion with FCA through meetings and discussions.

What is your view of the re-cently signed Mutual Recogni-tion arrangement and what are the benefits the two countries?

KCS believes that the customs proce-dure will be significantly streamlined, thanks to reduced inspections, priori-tized clearance, and direct communica-tion with customs contacts.

AEOs of both nations, will be granted the clearance benefits, to allow them to reduce logistics costs and to increase export growth. By doing so, our two customs may focus their resources on high-risk entities.

How can we mutually support and build on the development of the MRA?

The two customs, may create a new benefit or update the existing ones through regular review meetings, to evaluate the operations of the program.In detail, to facilitate the implementa-tion of the Explanatory Note signed

on Aug 29,2017. The pilot run will be launched with the 2 or 3 selected com-panies, and the full pledged program will be adopted (Apr 1, 2018), after monitoring the results of the pilot proj-ect. The review meeting, will be held annu-ally at a minimum, to assess and ana-lyze the clearance benefits and their use to open the program to more entities.

What are the key development plans that South Korea Cus-toms are currently implement-ing to improve customs perfor-mance?

KCS established a mid- to long-term plan, that reflects rapidly changing cus-toms environment, and is strategically promoting improvements in customs performance.KCS is implementing a performance-oriented organizational culture, by introducing the performance manage-ment system (CPM), which is the mod-ification of the Balanced Score Card (BSC) used by the private sector.

With the increasing security

United Arab Emirates and South Korea, seek to create safe trade environment for both countries, in addition to, information exchange to control illicit trade and joint support to modernize customs and enhance partnership and mutual recognition of Authorized “AEO”, said Kim Young Moon South Ko-rean Customs Commissioner. Kim said in special interview with (UAE Customs Magazine) that, UAE ranking first in “Customs Bodies Efficiency Index”, is a global recognition of the quality of per-formance in UAE, pointing to how much Korean customs appreciates the efficiency of customs procedures in the country, as they help in re-ducing costs and strengthening the happiness of the concerned parties. He confirmed that, Korean Cus-toms Service, appreciates the big efforts exerted by Federal Customs Authority and local customs de-partments, in inspection processes, using preinspections and cutting-edge technologies, to address trade security risks and threats.He believes that, customs authori-ties in both countries, are able to provide new benefits and increase the existing ones, in the application of AEO program, through review periodical meetings, to assess the operations of the AEO program. Kim noted that, the Korean Customs Service, has developed a medium to long-term plan for the development of customs work, which reflects the rapid change in the customs environment, and is implementing a regulatory culture of reform through a performance management program.The Korean Customs Commission-er explained that, customs author-ity has launched an integrated risk management system that includes, Targeting Center for Border Customs to prevent threats at the border customs points, noting that, Customs Department aims to build a customs cadre with competence, expertise and operational orienta-tion, related to the customs sector.

Interview by: Hassan El Kamhawi

Customs Commissioner Kim Young,in Special Interview

Big benefitsawaiting authorized eco-nomic operators (AEOs), in UAE and South Korea

UAE ranking first in “Customs Bodies Efficiency Index”, is a global recognitionof performance quality

We target safe trade environment in both countries, information exchange and support, to modernize customs and enhance partnership.


Interview

risks globally, what are the most important features of the South Korean Customs Plan to meet these challenges and security risks?

The Ministry of Environment and the Ministry of Food and Drug Safety, will expand joint-safety inspection and joint enforcement centers and strengthen the detection system for illegal and harm-ful goods, by using scientific inspection equipment such as, portable X-ray de-tector.Regarding drug enforcement, the dedi-cated enforcement teams are, stationed in major sea/airports with ion scanners and body scanners to block the incom-ing drugs at the customs border.

Evading Customs controls through smuggling is a global phenomenon with negative impact on national economies. What are the main strategies in South Korea Customs to meet the challenges in this area?

Special enforcement measures are, fre-quently enforced for areas where fre-quent smuggling such as, counterfeits, gold bars, medicines, medical supplies, and tobacco, as KCS plans to deal with smuggling more effectively, through the profiling and monitoring system.Moreover, KCS installed the “Customs Border Targeting Center (CBTC)”, for comprehensive analysis of import and export risk intelligence at the customs border, and overseeing risk manage-ment tasks such as, selecting high-risk travelers and items.

What significant seizures have been made by South Korean Customs in the last year?

Major interceptions in 2016 (based on no. of cases); Tobacco (493 cases), drugs (423 cases), gold (27 cases).

Major interceptions against increasing trend of new smuggling in 2016; Pas-senger > 14.3kg (2015) 27.1kg (2016, 89%). Express Cargo > 6.0kg (2015) 6.3kg (2016, 5%)Adopted special thematic measures, to cope with the diversification of drug smuggling routes and prevent the in-flow of narcotics through new smug-gling routes, such as travelers’ items.

Customs clearance based on the risk management system is a cornerstone of the Customs role. What are the most impor-tant initiatives being imple-mented to develop the customs clearance system in South Korea?

KCS has introduced the integrated risk management system, including CBTC, to block threats right at the customs border.CBTC, strives to enhance information exchange related to risks at borders and collaboration with competent agencies, at home and abroad. With these efforts, the center is strengthening safety mea-sure at borders by, various means such as, applying adequate Cargo Selectivity on high-risk items.

How is the trading Community engaged in developing the cus-toms processes?

Through discussions on changes in customs processes and ways to win-

win cooperation by frequent meetings with exporters/importers, forwarders, and bonded warehouse operators.Also, KCS exchanges information such as, market trends, domestic and overseas prices, and smuggling with related entities, listens to difficulties such as, regulatory reform and system improvement and shares its direction of enforcement activities.

What is the average customs clearance time in South Korea and are there any important South Korean Customs initia-tives in this area?

KCS, plans and seeks; To expand the scope of documents filed electroni-cally, when submitting export/import declarations such as, invoice and sales contracts.To reduce the time required for clear-ance significantly by, shifting the sys-tem for verifying requirements, needed for clearance from a manual check by customs officials to electronic customs audit.To raise electronic customs audit rate from 2% to 5%.

Customs plays an important role in the fight against fraud, counterfeiting and the protec-tion of intellectual property rights. What is the role of South Korea’s customs in this area and what trends and patterns

have the Customs dealt with?KCS, is in charge of conducting crimi-nal investigations, on trade-related laws such as, violations of customs act, foreign trade act, and violations of in-tellectual property rights.Recently, circulation of counterfeits through the internet and SNS is in-creasing, and KCS is preventing coun-terfeits by, conducting intensive moni-toring and special enforcement with private companies such as, web portal companies.

What are the most important policies and procedures that South Korea Customs imple-ments to combat fraud, coun-terfeiting and piracy?

KCS, is implementing preemptive mea-sures such as, strengthening the collec-tion of information on brands, that are expected to have increased counterfeit products, through data analysis and x-ray inspection and stricter preventions in counterfeits etc.KCS and KIPO (Korea Intellectual Property Office), are reinforcing joint enforcement structure, through various opportunities by, increasing informa-tion sharing with worldwide customs administrations to prevent the circula-tion of IPR infringing products of Ko-rean brands.

What is the South Korea Cus-toms approach to development

and maintaining the efficiency and skills ofits customs person-nel?

FTA, AEO, counter-terrorism, and drug interception training which are reflected, in the curriculum of training programs, are pro-actively responding to changes in trade environment and security threats.KCS, aims to build efficiency and skills of customs personnel with field opera-tion oriented and case-based training programs, by expanding training infra-structures such as, customs field train-ing complex and mobile-learning.Customs field training complex: By creating an identical environment with the actual field operations, the same fa-cilities and systems as the site can be used to conduct operational education in the major customs areas.

WTO expects a slowdown in global trade in the coming years. What is the expected im-pact of this slowdown on trade movement in the ROK in gen-eral and Customs in particular?

With Korea’s export-oriented econom-ic structure, export-supporting policies of KCS, carries immense importance.In this FTA era, KCS, supports traders, and also expands mutual recognition agreements (AEO MRA), for law-abid-ing traders in principal trading partners and countries with rapidly emerging trade volume, while strengthening im-

plementation of existing agreements.The world has witnessed the launch of many global trade initiatives. Which in your view are the most significant of these initiatives and what is the role of South Korea Customs in their implementation?

The trade facilitation agreement, which will carry legally binding force in the future WTO system, is the most impor-tant global trade initiative, since it is the first multilateral agreement, which was concluded and entered into force after the WTO inauguration in 1995.KCS, has set the WTO TFA implemen-tation as, a top priority and supports the capacity-building projects, namely the invitation seminars and BPR(Business Process Reengineering) program, re-lated to the trade facilitation and cus-toms environment of developing coun-tries, by utilizing its ODA budget and the WCO Customs Cooperation Fund (CCFK).

What are their repercussions on the global trade and trade with the Middle East?w

Customs authorities around the world, strive to find a right balance between Trade Facilitation and Trade Safety, and this wouldn’t be possible without the customs cooperation. KCS, plans to achieve these two goals at the same time by streamlining the customs pro-cedures and joint investigations.In particular, the trade between Korea and the Middle East, is being diversi-fied from, the energy-oriented structure of the past to, infrastructure and con-sumer goods, and the trade volume is also continuously increasing. There-fore, cooperative relations between the two customs should be further strengthened.

Launching of integrated risk management system and Targeting Center, to prevent threats at customs points.

Medium- long term plan to develop Korean Customs performance, reflects the change in customs environment.


Interview

New Concepts In line with Technological Development

Future CustomsCooperation and Courage manage change

ed structurally in the ‘secret’ world of enforcement. As it risk management evolved it was appreciated that it had a more strategic role, and in the more devel-oped organisations it is now used an organizational decision making and resource deployment tool, closely related to strategy and policy. It also opened the door to the new concept of compliance management. Recog-nising for the first time the high lev-els of legitimate trade and the need to provide more facilitative controls. Whilst risk management has provid-ed a much improved basis for apply-ing control, there are still a signifi-cant number of customs and border management authorities which con-tinue to have their risk management function located in their enforce-ment divisions rather than in their

strategy and planning departments. From the simple beginning of com-pliance management, the trade facil-itation agenda emerged as the domi-nant theme. Through the reduction of bureaucracy and more consulta-tion with the trading community the concept has led to the development of procedures which have greatly reduced clearance time and cost for both government and business. It currently remains the main goal of national, regional, international de-velopment, supported by global in-stitutions and regional development banks. Refinements in thinking have led to the introduction of further ini-tiatives as centralised/regionalised clearance, audit based controls and Authorised Economic Operators, supported by Mutual Recognition Arrangements.

Though much progress has been made developmental challenges re-main. Trade facilitation has been in-terpreted by some Customs Organ-isations as their primary goal and in others there is a mind-set where it is seen as a weakening of authority and control - particularly by staff at an operational staff level. It is dying out but the attitude that compliant trade are still ‘the enemy’ has not yet fully disappeared.There is still essential work to be done to improve the understanding that the methods used to facilitate compliant trade maintain control in line with the core functions of Cus-toms. Many have, in fact, evolved from methods that were developed to provide improved control. From a trading perspective many of the techniques developed have been

Having been asked to write on the future requirements and develop-ments in Customs, I have taken the opportunity to look back on the les-sons learnt during my 41 years of experience in the field and the privi-lege I have had to work globally for 30 of those years in the develop-ment of Customs services in over 80 countries. This has being largely direct engagement in the countries and also periods working in interna-tional institutions such as the WCO and the EU Commission. As with all ‘predictions’ of the fu-ture it claims no certainty but is pro-duced to contribute to and stimulate pragmatic debate.This period has seen the emergence of the Asia/Pacific region as an eco-nomic powerhouse, and the grow-ing consumer classes worldwide, driving a huge expansion in both the volume and pace of world trade. In parallel it has also seen the ex-pansion of international crime and terror which has equally taken the opportunity to develop more sophis-ticated and networked approaches.The common theme for Customs has being constant change as it has adapted to deal with the develop-ments in global trade and security. Significant steps in this journey have been the introduction of the concepts of risk management, trade facilitation, supply chain security, and single window. Advances in these areas are underpinned by the

developments in communication and computerisation and detection technologies. The rate of change itself has also moved exponentially and looks set to continue.Over the same period, a relative lev-el of stability has come from the fact that purpose of core Customs’ func-tions i.e. the regulation and manage-ment of trade, and to a lesser extent people, at the points of entry, to pro-vide economic competitiveness and security, supply chain security, gov-ernment revenues and social pro-tection has NOT CHANGED. The priority given to each is determined by the governmental policies and development levels of individual nations. Though the functions remain, the structures of border and revenue management have needed to change

and adapt to reduce bureaucracy, costs, and encourage compliance. The concept of an independent Cus-toms service has become increas-ingly rare as nations create Revenue Authorities and Border Agencies.EvolutionLooking at how the concepts of risk management, trade facilitation, sup-ply chain security and the single window have evolved, provides an interesting basis on which to look at the likely future development need.Risk management in Customs as a concept seemed to develop simulta-neously in many places. Initially it was developed as a means of iden-tifying and targeting non-compliant trade and criminal activity, closely linked to the gathering of hard intel-ligence for use by Investigation and anti-smuggling forces. Often locat-

Joe Kelly Customs AdvisorCommissioners Office – FCA

Government Policies and Levels of States Development Defines Priorities of Establishments of Customs Works Around the World.

Risk Management is An Organizational Unit for Decision Making and a Tool for Launching Resources Linked to Political Strategy.


Free Zone

of great benefit to multinational and large national business, the small and medium business have not been able to enjoy similar advances.Since the start of the new millenni-um the concept of supply chain se-curity has added another dimension to the development of more inte-grated and facilitative approaches to control. It has helped to develop an understanding in the trading, logis-tics and transportation communities that they have a crucial role in, and much to contribute, to the security agenda. Progress on both trade facilitation and supply chain security has high-lighted the need for Customs to bet-ter understand business and business to better understand government. The concept that government fully understands business is a dangerous one, similarly whilst government can be more business-like in its or-ganisation and management, it is not a business.As a relative newcomer Single Win-dow is still an evolving concept. There are many single windows under development, some are clear-ance computer systems, some Cus-toms management systems, some port partnership systems. These have largely been technology based approaches. Though they provide significant steps in the right direction, the con-cept as originally envisaged is that single window is a series of linked common policies and procedures throughout border management and governmental engagement with business, to reduce duplication, share resources and promote secure trade. This core aspect of Single Window needs further stimulus at national level if the long term eco-nomic benefits are to be realised. Underpinning all of these devel-opments has been the continuing evolution of computerisation and other technologies. Not only in the development of communications, connectivity and access that has made implementation of the con-

cepts more practical, but by chang-ing the nature of supply chain itself with the emergence of e-commerce and ‘Uber’ style delivery. The pace of development through to the digi-tal age has in it itself forced both government and business to react to change more quickly.

In some areas, however, the technol-ogy has been allowed to drive the policy and procedures rather than the other way round. To maximise the potential that the digital age brings it is essential that both gov-ernment and trade have the capac-ity to clearly and quickly define the requirement.The futureAdding to these observations on the state of progress that has been made, there are some areas in which it is relatively safe to predict the likely future.The globalisation of world trade, whilst having ebbs and flows will continue to be the major driver for change. Supply chain security and protection of society will remain a dominant influence. The growth in e-commerce will continue and new in-

novative business and delivery meth-ods will support it. The development of Single Window will be a central element of government policyTransport itself is evolving -in the aviation industry direct from Sidney to London by 2025, the increasing amount of airfreight that is now be-ing carried as ‘hold-Cargo’ in ship-ping the increasing capacity vessels and the development of mega-ports/feeder ports - the re-emergence of rail transport.From a regulation and control per-spective, the primary purpose and functions of Customs with regard to trade management will not change but independent Customs organ-isations will have to change in line with the fundamental principles of the Single Window.Digitalization Artificial Intelligence

and robotics will take over many of the basic, information, analysis and decision making functions of trade management, reducing discretion and human intervention. The use of systems audit as a control tool will increase and the potential for digita-lization to support the audit process will increase.Criminal and terrorist organisa-tion will continue to develop new and creative methods. The sophis-tication and capacity of detection equipment will continue to improve, supporting the anti-smuggling and security agenda. Perhaps ironically, allowing for 100% checking with-out disturbing the time and cost of the supply chain.Change will be a permanent feature and the pace of change will contin-ue to increase. The need for horizon scanning will no longer be a luxury, it will a core requirement.Allowing for the fact that the next new concept has not yet been in-vented, it is my view that the prin-ciples governing the foreseeable fu-ture are; further understanding and implementation of risk management and the Single Window. The challengeThere will be many detailed chal-lenges to face moving forward, but there are two overall areas in which a step-change is necessary.Firstly, in the relationship with all elements of the supply chain. This needs to develop to a new level where co-operation moves to col-laboration, where the business need to be more fully engaged, not just

consulted, in the decision making, design and implementation of both policy and procedures. This could lead to building systems jointly, linking business and government systems in a more integrated man-ner, so avoiding duplication and saving/sharing cost. Who better to help control E-commence that those who involved in E-commence. Advances in digital and technologi-cal development, and its increased accessibility, will enable small and medium enterprises to participate in the benefits of the new approach. It is essential that they are part of the collaboration process.This collaboration would more nat-urally provide Customs with early indications of future trade develop-ments and allow business to better understand their role in the security agenda. Secondly, within the government agencies themselves future collabo-ration is the key. It is time to move beyond interdepartmental protec-tionism, to share information, re-sources and technical development and minimise duplication and cost. Within the border management agen-cies there has been considerable movement in this direction, but it is still very much work in-progress. As systems audit is increasingly used as a control method, collaboration needs to be extended to other govern-ment agencies involved in the moni-toring and management of trade and revenue collection. The removal of multiple controls from the frontiers should not be replaced by multiple audits at the traders’ premises. An important first step in this process is to work jointly to develop a common risk analysis and assessment.In closing, it should be recognised that Customs has the history and experience of the fundamental ap-proach required, which other gov-ernment departments arguably do not. The future, therefore, is not a threat but an opportunity to lead on this collaborative agenda should it have the courage to do so!.

Concept of Supply Chain security add a New Extent for developing more Integrated Methods Controls in the New Millennium.

Digitalization, Artificial Intelligence and Robots, Play many key roles in customs work.


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Ali Al Kaabi

The United Arab Emirates continues to en-hance its global position as the leading regional trade hub-providing gateway to the region and the world. Despite the challenges from global economic growth and the political and security turmoil in many regions of the world. In addition to the significant slowdown in trade growth in countries such as China, Ja-pan, America, South Korea etc. , the UAE’s foreign trade continues to overcome these challenges and expand its trade and economy.This growth is not just a coincidence, but a natural result of the economic development policies of the wised leadership to sustain-able development, economic diversification to implement the long-term post-oil prepared-ness strategy.The growth of non-oil foreign trade in the UAE is not accidental; it is a key part of a planned and targeted growth strategy. The country is at the forefront of many of the in-dependent global indicators issued by inter-national institutions, which measure competi-tiveness and monitor global changes in the economy and trade.The UAE has recently been ranked first in the Arab world and 17th in the World Com-petitiveness Report 2017-2018, issued by the World Economic Forum (Davos) in Switzer-land. The report ranked the UAE among the top 20 competitive economies in the world for the fifth consecutive year.These positive indicators not only confirm the quality of current performance and the extent of achievement in the field of development, construction and the provision of a growth-

oriented economic infrastructure, but also confirms the expected growth of the economy in the medium and long term.Over the past years, the country’s Customs sector (the Federal Customs Authority, the lo-cal Customs Administrations, their associated businesses and the private sector) has been able to build and provide a stimulating en-vironment for trade. This has been achieved through developing a range of facilities and initiatives that have significant impact on at-tracting foreign investment and transform the UAE into a regional and global center.In recent years, the Customs sector has imple-mented a number of major initiatives, impor-tant amongst these has been the development of the customs infrastructure at the customs points of entry, though the adoption of risk a management strategy, the introduction of lat-est electronic and intelligent systems in the field of clearance of goods and the deploy-ment of the latest inspection technology.. In addition there has been the implementa-tion of the accredited AEO programme, the simplification and unification of customs pro-cedures, the development of ports, the adop-tion of the ‘first entry points’ procedure for the GCC countries, and the expansion of the measurement of performance against interna-tional conventions.These initiatives reduce the burden on busi-ness and enhance the security of the UAEInternally the FCA has invested heavily in raising the efficiency and professionalism of Customs staff of the human element through training, this is underline by the initial agree-ment with the Rabdan Academy to provide academic accreditation and a customs-training program that provides the national competen-cies required to work in the Customs sector.Through the analysis of these indicators, ini-tiatives and achievements, and in light of the strong encouragement and guidance of the wise leadership, to improve the UAEs global competitiveness indicators to reach the top global position. They have also ensured that the development carried out is fully in line with the projects and initiatives of the govern-ment strategy for UAE centennial 2071.We expect, during the UAE Centennial, a bright future and with growth for the UAE’s non-oil foreign trade, and the expansion of the export of national products to internation-al market.

UAE centennial 2071and the future of trade

The Meeting is renewed

gitex 2017 - fca.gov.ae customs magazine - issue 4.pdfiting gitex is a journey into the virtual...

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