Customs Reform

1
Customs Reform

• The experience of the World Bank

2
Essential Cooperation and information

• Manage by objectives rather than by institution
• Delegation of powers
• Cross-designation of officials
• Single window
• Role of private sector
• Website

3
What is needed to do a project

• Diagnostic
• Baselines
• Ownership
• Objectives Integration and/or accession
• Change management
• Measurement

4
Risk management

• Selectivity only addresses part of the problem
• Narrowly focused
• Too dependent on local systems
• Can be easily diverted
• Not always sustainable
• Interpreted as excluding security

• Risk management must apply to the entire
  logistics chain
• Must be shared
• Must include security
• Addresses all aspects of control
• Involves rewards for compliance

5
Integration

• Taskforce rather than administration
• IT can provide support (single window)
• Training must be entirely reshaped
• Reforms must be set in concrete

6
Regional User SurveyFirst phase strengthening
baseline and methodology

• Objectives
• - supplementing performance measurements through
  survey, interviews and discussion groups to
  analyze improvement of border agencies
  performance in each country
• - drawing attention to decision makers on areas
  of priority improvements (strong tool)
• Sample 150 companies, with validation from
  international cities
• Six dimensions Customs law Communication
  Procedures Personnel Logistics Integrity
• Phasing methodology refined after phase I to
  increase comparability of results (2002, 2003)
  transfer to Chambers of Commerce in phase II

7
User Survey Results
Example
8
Pilot site concept

• Objective
• To improve operational efficiency
• To promote cooperation among border agencies and
  across borders
• Concept
• Small scale operational approach
• Ownership by participants
• Incubator for new ideas and initiatives
• Monitoring

9
Change Management Convince rather than impose

• List core functions affecting import, export,
  transiting, payments, suspense schemes, and cross
  border movements of individuals
• Identify the corresponding enabling legislation
  and associated secondary regulations and
  operational guidelines
• Prepare accordingly a matrix of interactions

10
The legislative critical path
11
Evaluate legislative and regulatory interactions

• Develop a best practice model in coordination
  with international donors, identify the gaps with
  the local model
• Recommend a reform path to optimize the business
  model and subsequently harmonize it with
  international standards
• Factor local strengths

12
Detect potential socio-institutional blockages

• vested interests
• corrupt and/or criminal practices
• traditional, religious and cultural standards
• administrative and organizational templates
• multi ethnic communities

13
Documented job process flowchart

• Monitoring indicators
• Avoidance strategy
• Remedial action consistent with the project
  achievement critical path

14
Identify relevant elements of the social pact

• List operations and processes which are thwarted
• Risk management Identify the mechanisms with
  which officials carry out risk-managed activities
  
• Establish the relationships and mechanisms that
  ensure accountability and reporting

15
Prepare a communication strategy

• Disseminate within the administration new
  objectives and operations
• Feedback
• Priorities
• Field inputs

16
Some other requirements

• Legislation
• Intern-agency relations map
• Preventive and enforcement role is an issue and
  an example

17
Change management Act 2

• Act 1 was to work out the environment and make
  action recommendations
• Act 2 Assist in designing policies

18
Change management Act 3

• Act 1 was to work out the environment and make
  action recommendations
• Act 2 Assist in designing policies
• Sustainability
• Networking
• Training
• Gradual approximation

19
Results on the ground Savings
20
Savings to the economy

• Each idle truck has a cost of US 15 per hour

• Multiply total number of trucks by time reduction
• RESULT
• In SEE, approximately
• US 6.4 in 2003

21
Results

• Reports on corruption are very encouraging
• Transit times and costs are reducing
• Seizures are increasing
• Reasonable chances of sustainability
• But there is a lot we cannot do on our own

22
What are we doing now?

• South East Europe
• Russia
• Central Asia
• Afghanistan
• South East Asia
• Brazil