WCO PSCG Presentation to Policy Commission

June 2014

Participants in PSCG Meeting, 22nd-23rd June 2014

AAEI BASC Boeing Co. De La Rue International Deutsche Post DHL FedEx FIATA Fonterra Cooperative Group Ltd GEA Hutchison Port Holdings IATA IAPH

IBM ICC IFCBA IKEA IRU L Brands Microsoft Corporation Renault Nissan OPORA Russia Procomex SABMiller Samsung Electronics Company WSC

Highlights of PSCG Meeting

Vision

Taking Stock - membership diversity footprint

Single Issue Meeting – future of PSCG

Influence, advice and support – what have we done?

Orientation Package Annex – prioritisation & alignment

Pillars of PSCG focus

Commentary on proposed new structure

To inform, advise and support the Secretary General, WCO Policy Commission and WCO Member Administrations to enhance their effectiveness and efficiency from a private sector perspective.

Inform: to impart informationAdvise: to recommend or suggestSupport: to give assistance

Vision

Where has the PSCG been?

And where has it influenced, advised and supported…

AEO Benefits AEO Template Co-Chair SWG Co-Chair Data Quality Experts WG Annex to Orientation Package Triangle of Influence Makers, Movers and Shakers ACAS – First participants and recommended standards for inclusion in SAFE by 2015

Contributed in GNC Support Capacity Building initiatives Supported WCO Committees, Conferences and Events through presentations, participation, and sponsorship AEO/MRA survey feedback (plus translation/distribution) Value Chain Mapping outlined

...and still to do!

Cross-reference PSCG work to WCO instruments, tools, committees

Representation and ability to address regional diversity

WTO/ATF Value Chain Mapping PSCG Member commitment We can do more...

7

PSCG Membership Footprint

Industry SectorsAviationDairy/Food Consumer Electronics Retail Wholesale/Retail Technology Devices + Services Pharmaceutical Print + Paper Automotive Brewing Petrochemical

As to more diversity...

Answer Choices Responses

South America, North America, Central America & Caribbean

100%

Europe 84%

Far East, South & South East Asia, Australia and Pacific Islands

84%

North Africa, Near and Middle East 80%

West and Central Africa 64%

East and Southern Africa 68%

PSCG Survey Question:What activity/membership does your organization have in WCO regions?

4 Pillars of PSCG Transparency Predictability Efficiency Engagement

Harmonisation of

procedures

Consistency

during

negotiation

and after

implementation of

Free Trade

Agreements

Post-entry

adjustments

Multi-agency

Coordination including

single windows

Resolving Customs

valuation conflicts

with tax laws

Implementation of

Centres of Excellence

Further introduction of

AEO benefits

Enhanced risk

assessment strategy

and filing mechanisms

Paperless filings

Account-based

processing

Consultative

Committees

which benefit

both Customs

and the private

sector

New business

models,

business

processes and

how value

chains work –

B2B, B2C:

The availability of

transparent

procedures

including binding

rulings

The need for

intellectual

Property

enforcement

and respect for the

role of rights

Holders

Voluntary disclosure

w/out penalty

Ensure that SMEs

are engaged in

Customs issues

4 Pillars of PSCG in relation to TFA Transparency Predictability Efficiency Engagement

• ARTICLE 1: PUBLICATION ANDAVAILABILITY OF INFORMATION

• ARTICLE 5: OTHER

MEASURES TO ENHANCE IMPARTIALITY, NON-DISCRIMINATION AND TRANSPARENCY

• ARTICLE 10: FORMALITIES CONNECTED WITH IMPORTATION AND EXPORTATION AND TRANSIT

•ARTICLE 2: OPPORTUNITY TO COMMENT, INFORMATION BEFORE ENTRY INTO FORCE AND CONSULTATION

•ARTICLE 3: ADVANCE RULINGS

•ARTICLE 10: FORMALITIES CONNECTED WITH IMPORTATION AND EXPORTATION AND TRANSIT

• ARTICLE 7: RELEASE AND CLEARANCE OF GOODS

• ARTICLE 8: BORDER AGENCY COOPERATION

• ARTICLE 9: MOVEMENT OF GOODS UNDER CUSTOMS

CONTROL INTENDED FOR IMPORT

• ARTICLE 10: FORMALITIES CONNECTED WITH IMPORTATION AND EXPORTATION AND TRANSIT

- ARTICLE 2: OPPORTUNITY TO COMMENT, INFORMATION BEFORE ENTRY INTO FORCE AND CONSULTATION

-ARTICLE 13: INSTITUTIONAL ARRANGEMENTS

PSCG Proposal for Change

PSCG COMMENTARY ON DRAFT TERMS OF REFERENCE FOR THE PRIVATE SECTOR CONSULTATIVE GROUP

Original PSCG Terms of Reference: Drafted - September 2005 Revised - May 2014Confirmed by the Council - [date of confirmation]

Private Sector Consultative GroupChairperson : Member of private sectorVice-Chairperson: Member of private sectorEstablished : 2005Secretariat : WCODuration : Unspecified

PSCG Proposal for Change

1. Mandate

The Private Sector Consultative Group (hereinafter referred to as the “PSCG”), is formed for the purpose of informing, advising and supporting the WCO Secretary General, the Policy Commission and any other standing bodies of the WCO as appropriate and WCO Members to enhance their effectiveness and efficiency from a private sector perspective and provide consultation as and when requested.

PSCG Proposal for Change

2. Membership

The WCO Secretary General in close consultation with the Chair and the Regional Vice-Chairs of the Council appoints all PSCG members.

The PSCG consists of no fewer than 20 members.

The PSCG consists of businesses and associations involved in the global value chain.

PSCG member terms will last three years, the term running from 1 July to 30 June.

PSCG members cannot serve more than two consecutive three-year terms.

The PSCG will employ a system of rotation where members leave the PSCG after their term is completed.

Former PSCG members can be re-appointed to the PSCG after a one-year hiatus.

To promote continuity, the WCO Secretary General will appoint no more than six or seven new PSCG members every year so that terms are staggered.

PSCG Proposal for Change

3. Scope

The scope of the PSCG is to inform, advise and provide support on new and evolving business strategies, practices and models as well as specific matters relating to trade facilitation, enhanced border and cargo supply chain security, Customs modernization and automation, capacity building, compliance assessment including valuation and classification issues, commercial enforcement and uniformity, international efforts to harmonize Customs practices and procedures, and strategic planning.

The PSCG is to play an important role in the presentation of views and perspectives as expressed by trade, and in this respect should be recognized as a primary resource for WCO Members.

PSCG Proposal for Change

4. Key Deliverables

The PSCG’s key deliverables are:

to inform and advise the WCO Secretary General and WCO Members on Customs and international trade matters from the perspective of the private sector such as preparing position papers on topical matters,

to contribute to the development of WCO standards, tools and instruments,

to support the adoption and effective implementation of WCO and other relevant international instruments,

to assist the WCO in meeting its needs in the regions.

PSCG Proposal for Change

5. Means of Operation

The PSCG deliberations and decisions shall be made on the basis of group consensus and will recognise the diversity of views expressed to illustrate to the WCO the complexity of the issues raised.

The PSCG elects its Chairperson and Vice-Chairperson from within the PSCG membership. The PSCG Chairperson and Vice-Chairperson are subject to the same three-year term of office and rotation policy.

The Secretary General will make appropriate arrangements to ensure that during the first year under the new governance terms the PSCG will have no fewer than 20 members. This may require a temporary adjustment to the new term length rules for some appointments during the new PSCG’s first term.

The PSCG will have Observer status with the WCO and may be invited to attend official WCO meetings where the Terms of Reference of such meetings permit such attendance.

The June Policy Commission agenda will include specific designated items pertaining to international trade, for which PSCG members and relevant non-PSCG Observers will be invited to attend.

The PSCG will determine during its June plenary session the meetings in the WCO Calendar, which it plans to attend for the coming year. The PSCG will consider virtual meeting facilities for intersessional work.

Representatives of appointed WCO members and the Secretariat shall actively participate in PSCG meetings.

PSCG Proposal for Change

6. Resources Required

The PSCG may meet at WCO Headquarters.

Thank you

www.wcopscg.org