WCO presentation

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WCO instruments proposed in the WTO negotiations
Meeting of Core Group, African Group and
Caribbean Group 8 November 2005, Geneva
Kunio Mikuriya Tadatsugu Toni Matsudaira World
Customs Organization (WCO)
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WTO July Package - Annex D

• 9. Due account shall be taken of the relevant
  work of the WCO and other relevant international
  organizations in this area.

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WCO instruments addressed in the WTO proposals

• HS
• (TN/TF/W/24, 45, 46, 52)
• Revised Kyoto Convention
• (TN/TF/W/ 30, 34, 36, 39, 42, 45, 46, 49, 50, 52,
  53, 55, 58)
• Customs Data Model
• (TN/TF/W/ 18, 46, 57)
• Immediate Release Guidelines
• (TN/TF/W/ 10, 44, 45, 50)
• Time Release Study Guide
• (TN/TF/W/ 18, 45, 46)
• Istanbul Convention
• (TN/TF/W/ 30)

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Compilation L.1. Objective Criteria for Tariff
Classification (TN/TF/W/43)
Main Measure(s) Proposed Require objective
criteria for the tariff classification of goods.
(TN/TF/W/24) Suggested Approach/Means "...
requiring the use of objective tests, and (...)
requiring Members to adopt the World Customs
Organization's Convention on the Harmonized
Commodity Description and Coding System ('the HS
Convention') "... establish criteria that
classification decisions and any necessary tests
should satisfy, such as objectivity, scientific
basis, wide acceptance and impartiality." See
also TN/TF/W/46
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H S

• Universal economic language and code for
  transportable goods
• Used by over 190 countries and economies (120
  Contracting Parties)
• Basis for tariff application, GATT tariff
  schedule, trade negotiations, trade statistics,
  implementation of border measures (quota,
  controls, etc)
• Periodic Review
• 5 year interval in principle,
• HS2002 as current version, HS2007 review work
  underway
• Uniform application assured by WCO HS Committee
• Interpretation (Explanatory note, Compendium of
  classification opinions)
• Dispute settlement (Recommendations)
• Technical assistance by WCO Secretariat
• HS infrastructure, advance rulings
  (classification advice)

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Compilation Release clearance of goods,
formalities, transit (TN/TF/W/43)

• K.1.(c) Risk Management
• Use risk management and risk analysis as defined
  in the WCO Revised Kyoto Convention Guidelines.
  (TN/TF/W/49)
• H.1.(d) Use of International Standards
• Recommendation to accede to the conventions
  administered by the World Customs Organization
  (WCO) which seek to harmonize and simplify
  customs procedures, in particular the
  International Convention on the Simplification
  and Harmonization of Customs Procedures (Kyoto
  Convention), (TN/TF/W/30)
• M.3.(c) Disciplines on Transit Formalities and
  Documentation Requirements.
• "....give careful consideration to the
  possibility of acceding to international
  instruments relating to Customs transit if they
  are in a position to implement them. If this is
  not possible, when drawing up bilateral or
  regional agreements with a view to setting up
  international Customs transit procedure, they
  should consider the Standards and Recommended
  Practices of Annex E of the Revised Kyoto
  Convention of 1999." ( TN/TF/W/39).

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Revised Kyoto Convention

• Originally adopted in 1973 and revised in 1999
• Use of modern technology (automation)
• Use of modern techniques (risk management,
  partnership with trade)
• Legal structure
• Main body, General Annex (core principles),
  Specific Annexes (standards for specific
  procedures)
• Guidelines (guide for implementation, best
  practice) constantly updated
• Entry into force on 3 February 2006 (accession by
  40 members)
• Kyoto Management Committee
• Accession open to WCO/UN members
• Consistent with and complementary to the WTO rules

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Measures covered by the WCO instruments

• Pre-arrival declaration
• Express shipment
• Post clearance audit
• Authorized traders
• Co-operation
• Automation
• Transit

• Publication of information
• Advance Rulings
• Appeals
• Fees
• Standardized and simplified documents
• Risk Assessment

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Compilation H.1.(d) Use of International
Standards
Main Measure(s) Proposed Members should
agree to use international standards and
instruments as the basis for their import and
export procedures and requirements (...)
(TN/TF/W/46) Suggested Approach/Means "The
data set developed within the WCO data model, UN
EDIFACT (UN Electronic Data Interchange for
Administration, Commerce and Transport) and the
UN Layout Key could be identified as basic
reference points/standards for using
international standards as a basis for
documentation and data requirements (...), and
WTO Members may wish to identify others. " Also
see TN/TF/W/18 TN/TF/W/57
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UN instruments

• UN Layout Key
• Revised Kyoto Convention
• The paper format of the Goods declaration
  shall conform to the UN-layout key.
• Standardized trade documents in size, format,
  data elements (including customs goods
  declaration)
• UN/EDIFACT
• Electronic Data Interchange for Administration,
  Commerce and Trade

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WCO Data Model

• Harmonized maximum data sets their electronic
  message format to complete border procedures
• Effective efficient tool for B2B, B2G, G2G
  exchange of information
• Compatible with UN/EDIFACT
• Interoperable with trade and transport
• Cover border measures other than Customs
• Supporting Single Window
• latest version June 2005

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Compilation K.1. (b) Expedited Procedures for
Express Shipments
Main Measure(s) Proposed "... an agreement on
trade facilitation should promote the widespread
implementation of the procedures of the WCO on
Express Consignments" as the "international
standard procedures for clearance of express
goods." (TN/TF/W/45) Also see TN/TF/W/10 and 44
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Immediate Release Guidelines

• Scope
• Shipments requested for immediate release
• Express consignment carriers, freight
  forwarders, and postal services
• Categorization of shipments into 4 categories
• Correspondence and documents
• Low value consignments with no duties and taxes
  
• Low value dutiable consignments
• High value consignments
• Procedures dataset specific to each category
• Pre-arrival declaration data processing

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Compilation F.2 Maintenance and Reinforcement of
Integrity and Ethical Conduct Among Officials
(a) Establishment of a Code of Conduct (b)
Computerized System to Reduce/Eliminate
Discretion (c) System of Penalties (d)
Technical Assistance to Create/Build up
Capacities to Prevent and Control Customs
Offences (e) Appointment of Staff for Education
and Training (f) Coordination and Control
Mechanisms In particular, TN/TF/W/60 lists up
WCO Arusha Declaration and implementation tools
as important reference
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Arusha Declaration

• Adopted in 1993 and revised in 2003
• Leadership commitment
• Simplification of procedures and automation
• Reduce opportunities for malpractices
• Adequate human resource management
• Recruit, training, rotation, remunerations etc.
• Partnership with private sector
• Tools for implementation (Model code of ethics
  and conduct, Integrity Self-Assessment Guide,
  Action Plan)

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Capacity Building during negotiations

• Assistance in understanding of issues
• Information sheets for negotiators
• Promote customs involvement in supporting
  negotiators
• Identification of needs priorities
• Self-assessment checklists (proposal-based
  checklists under consideration)
• WTO trade facilitation negotiations support guide
  (WB)
• Needs assessment questionnaire inventory (WTO)
• Time release study

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Capacity Building for implementation

• Enhance effectiveness and efficiency of customs
  administration to discharge its responsibilities
  in revenue collection, protection of society,
  security and facilitation of global trade
• Base Customs procedures on international
  standards and best practices
• A broad and comprehensive process that cannot be
  tackled on a narrow technical or single issue
  basis
• Connect capacity building needs and funding

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Customs Capacity Building Strategy(adopted June
2003 by WCO Council)

• Lesson learned - Need for
• Political will and commitment
• Greater ownership and participation of Customs
  personnel
• Accurate diagnosis of needs and country specific
  responses
• Realistic donor and government expectations
• Adequate resources (human and financial)
• Enhanced co-operation and coherence

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WCO assistance in CB

• Assist in ownership approach
• Intervention at early stage
• Diagnostics
• Action planning
• Business case for funding to address donors
• Pool of experts
• Training material
• E-learning
• Collaborative efforts with other international
  organizations and donors
• Regional approach
• Regional Training Center
• Regional Office for Capacity Building, Asia
  Pacific
• Synergy with existing regional institutions and
  initiatives

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For more information www.wcoomd.org Preparation
for WTO trade facilitation negotiations WCO
trade facilitation initiatives and
simplification of customs procedures Rue du
Marché 30, 1210 Brussels Tel 32
(0)2-209-9353 Fax [phone] http//www.w
coomd.org e-mail tadatsugu.matsudaira_at_wcoomd.org