wco revenue package - phase ii

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The WCO Revenue Package Phase II

The WCO Revenue Package Phase IIVarsha SinghLeonardo Macedo

Is Revenue Collection still a Strategic Priority for Customs Today?Question

1. Revenue Collection Traditional role of Customs 2.Community Protection Public health Drugs Environment 3.Security Terrorism Firearms 4.Trade Facilitation Compliant; non-compliant trader 5.Collecting trade data Import, Export Responsibilities of Customs

Declining revenue - global financial crisis &falling duty rates

Collection of revenue historically cornerstone & continues to be an area of concern for Customs administrations

Customs - protection of society and trade facilitation

Expanded role of Customs: fight against counterfeiting, counter-terrorism activities and the protection of the environment

June 2012: Phase I Revenue Package; June 2013: Phase II; June 2015 a second series of tools and materialsBackgroundIn response, the WCO Council passed the following Resolution in June 2009: The WCO Secretariat and Members should enhance even further the delivery of effective capacity building, especially as a response to declining revenue collection and obstacles to trade facilitation caused by the global economic downturn.

What has been the WCO Response?Question

Revenue Package Phase II

Diagnostic toolsClassification; valuation & origin

PCA InfrastructureDiagnostic FW; route map; self assessment

Tech. GuidelinesAdvance rulings - classification; origin; valuation

Origin toolsIrregularity typology; comparative study & guidelines on cert. of origin

Tools for reducing revenue risks and gapsMirror analysis guide; undervaluation textiles/Italian experience

Informal Trade PoliciesGood practice guide; case studies

Assist. Members termination of private sector inspection contractGood practice guide; case studies

Customs Valuation & Transfer PricingWCO Guide; update e-learning module; tech. discussions - TCCV

What is the link between the Revenue Package and the TFA?Question

Advance rulings (Art. 3)Inconsistency of decisions RKC std 9.9 (binding ruling)Bring about certainty and predictability

Agreement on Trade Facilitation

Risk management (Art. 7.4)Gate keeper to risk managerRisk management system (skills, process, technology, information)Move to faster release and clearance

PCA (Art. 7.5)Audit skillsAppropriate legislationRecords

Agreement on Trade Facilitation

Termination of inspection contracts (Art. 10.5)End tariff classification & customs valuation PSI Encourage not to extend the practice

Exchange of information (Art.12.2) Specific information on imports & export WCO DMGNCLegal basis

Agreement on Trade Facilitation

If Customs administrations want to meet the provisions of the TFA and ensure revenue collection how will they benefit?Question

Fair & efficient revenue collection Improved compliance levelsEffective risk management Facilitating compliant trade