Customs Reform projects

1
Customs Reform projects

• How can the Bank help

2
A few statements overheard

• I went through Customs
• Customs are so corrupt
• Do we need Customs at all in the global
  economy?
• IT and equipment will solve it all
• What about outsourcing Customs?

3
The role of Customs

• Establish control over goods and vehicles that
  cross or have crossed the border to ensure that
  appropriate rules and standards are complied
  with, and revenue has been paid or secured.

• Revenue mobilization
• Excise, VAT
• Enforcement
• Border control
• Statistics
• Standards
• Facilitation
• Security

4
The way in which projects are planned
5
Specialized-perspective projects

• Usually short term
• Mainly technical
• Highly focused

• May not be sustainable
• Ownership issue
• No interaction

6
Systems-oriented projects

• Focus more on support to the working environment
• Bring state of the art technique
• Example
• IT systems
• Risk management

• Require re-engineering of processes
• May not always be suitable

7
Administrative reform

• A comprehensive approach
• Can be sectoral
• Ensures ownership

• But one size does not fit all
• Customs are often fiercely independent

8
Structural adjustment

• Conditionality
• Measurement of achievement
• Leverage
• Easy to disburse

• Difficult to monitor
• How to benchmark
• Other donors
• But do Customs get the money? How is it used?

9
Output oriented projects

• From the perspective of the end-user
• Cut across agencies
• High visibility

• Support is strong
• Require much more monitoring
• Bring ownership and sustainability

10
What projects need

• Diagnostic
• Baseline
• Analyze all players role and involve them when
  possible
• The private sector They are the end users
• Ownership at the local level

11
What projects may not always need

• High-tech upfront
• Lavish infrastructure
• Computerization before re-engineering
• Massive firing

12
Some past factors of success

• Performance measurement and benchmarks
• Targets and conditionality
• Peer pressure
• Regional sharing
• Dissemination
• Pilot approach

13
Tools and Support

• IMF Changing Customs
• Banks CMH
• Resource manual
• Operational guidelines
• Templates
• Checklists
• Modules
• WCO Capacity Building Diagnostic Framework
• Revised Kyoto Convention
• Revised Arusha Declaration
• Trade Facilitation toolkit

14
The WB Customs modernization Handbook

• Strategy For Customs Modernization
• Organization and Human Resources
• Legal Framework
• Corruption
• Lessons Learned
• World Bank Experience case studies
• Valuation

15
The WB Customs modernization Handbook

• Valuation
• Origin
• Duty Relief and Exemptions
• Transit
• Security
• IT