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Sooryadev Singh PURMAH, MBA

Team Leader, Customs

(Trade Facilitation & Customs Cooperation)Joined Customs & Excise Dept in Feb 1972



Total area: 67×46 = 2040 sq km

Population: 1.3 million (est)Mono-crop economy to a diversified one: sugar,industrial manufacturing, tourism, financialservices, freeport activities, ICT, sea food hub

87% of tariff lines at zero rateIsland state with no natural resources



World Bank Doing Business 2012Out of 183 countries:

•

Ease of Doing Business - 23rd

• Trading Across Borders - 21st

• Paying Taxes:11th



MRA-Customs Department Collects 34 % state

revenues

670 customs officers

1 Seaport and 1

International Airport

350,000 declarations per

year (total)



Triggers for Change: Trade Facilitation

v/s Control Limited resources in contrast with dramatic increase

in volume of trade & travel

Globalization: Liberalization of governmental policies

on cross-border movement of trade and resources

Technological development

Development of institutions to support and facilitateinternational trade

Increased global competition

Protection of society & terrorism

Public criticism



Objectives of

Customs Trade Facilitation Programme Attain revenue targets

Implement Governmenteconomic policies

Reduce economicdistortions associatedwith smuggling andcommercial fraud

Create a ‘level playing field’ for traders

Facilitate honest traders while targeting high riskones

Promote transparency

Promote voluntarycompliance

Ensure predictability

Reduce discretion andcorruption



Managing Change at Mauritius

Customs

• WCO Customs Reform & Modernization

Programme (CRMP) as from 1998 andProject Management Concept as from end of2002

• CRMP : Orientation Meeting with policy makers→

Diagnosis & Planning: Team of Facilitators - WCO, HMCustoms, Revenue Canada: Data Collection, Diagnosis &Report: 3 Workshops

• Project Management Concept : Team constituted &

Strategic planning approach



Outcomes of Diagnosis Mission &

Implementation Strategy

1. Outcomes

• Vision: Towards a clean & efficient Customs

• Mission: Fiscal, Economic, Protective, Business Support

•Strategic plans: Based on 6 Primary Functions

2. Implementation

• Steering Committee

• Change Management Team (+ consultants)

• Implementation Teams in 6 priority areas

• Work Improvement Teams

• Evaluation

• Recruitment of expatriates in Oct 2006 & Feb 2009 to

boost ongoing reforms



Major Changes Over The Years1. Paradigm shift: gatekeeper to facilitator

2. Partnership with business

3. Automation - Customs Management System (CMS/EDI).

4. Implementation of WTO Valuation Agreement, Post Clearance

Control System5. Schedule of duties/SOP manuals for officers

6. Redeployment of staff and creation of various enforcement units

7. Code of ethics for officers and customer charter for stakeholders

8. Complaints Bureau

9. Tariff Information Unit10. Autonomous unit for air-freighted goods

11. Customs Investigation and Intelligence Unit including a drug cell

12. Non-Intrusive Inspection Techniques (NII): Scanners

13. Centralized Risk Management Section



Other Trade Facilitation Initiatives Single Window office for Cargo Inspection Single Window office for Exporters

Ecertificate of origin

CARGO FAST TRACK Program - AEO project

Cargo Community System – Electronic platform fortracking & tracing of containers

Express Courier Hub Project

Integrated Tariff and Tariff Classification Rulingsdatabases on web-site

Rules, regulations, procedures, SOP manual forstakeholders & administrative forms available on website

Intranet system for officers

Appeal Mechanism

Excise reforms



Requisites for Capacity Building in

CustomsWCO definition: ‘ Developing or acquiring skills,

competencies, tools, processes and resources needed toimprove the capacity of the administration to carry out itsallotted functions and achieve its objectives.’

Sustained Political Will & Commitment

Leadership & Stakeholder Support

Ownership & Participation of Customs Personnel

Adequate Human and Financial Resources

Effective Human Resource Management Practices Paradigm shift: Gatekeeper Mentality to Facilitator

Partnership with Business Community

Communication Strategy

Strategic Management Approach & Change ManagementModel



WCO & WTO Trade Facilitation

Instruments HS Convention

RKC

Arusha Declaration

Customs Reform & Modernization Programme

Columbus Programme – WCO Framework of Standards

WTO Valuation Agreement

Time Release Study

WCO Data Model

Rules of origin



Institutional Change - 1 July 2006Mauritius Revenue Authority (MRA): revenue depts

under one umbrella as a corporate body to act as agent

of government:

Vision: World Class Revenue Service

Mission: Continually reform and modernize in order to

achieve effectiveness and efficiency comprising with

highly motivated and skilled staff.Core Values: Integrity, Responsiveness, Fairness,

Transparency, Accountability



MAURITIUS REVENUE AUTHORITY

ORGANISATION STRUCTURE



Existing Offices Renovated to Improve Customer Service

‘RED/GREEN’ Channel @ SSRCustomer Counters @ SSR Air Cargo

Open Concept Offices @ IKS Building‘One Stop Shop’ @ Dragon House



“Single Window” Cargo Inspectio

Office at Port



Custom House

Fully Operational since December 2009



AUTOMATION - CMS/EDI: Continuous

enhancement since 1998 From 22 to 5 steps, minimal physical contact

officers/brokers, real time information

Electronic submission of cargo manifest, matching with

customs declarations

Rates according to HS entered, automatic calculation, etc.

Risk management module: Entry Selection/Selectivity

Criteria/identify risk factors - Green/Yellow/Red/Blue.

Release of goods through message to freight stations. Transfer of FCL containers: automated transfer document.

Epayment, E certificate of origin, Valuation database, Tariff

rulings, Integrated tariff, Import permit

External Users: Ministries, VAT, Port Authority, Freeport,Brokers Frei ht A ents



Port AirportNuctech X-Ray Scanners ( operational since Feb 2006)



Training and Development Initiatives

• Management Development , Project

Management , Investigative & Control

Techniques, Risk Management

• Post clearance auditing

• Laws & Regulations, Processes &

Procedures

• ICT & Integrity

• Customer Care, Performance Management

System



K9 Drug Detector Dogs

DUTIES AND TAXES COLLECTED BY CUSTOMS



Year 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08

2008/09

2nd ½09

CustomsDuty(billions)

3.47 3.29 3.50 4.04 3.93 3.09 2.14 2.68 1.54 0.82

Excise Duty(billions)

4.99 4.90 5.36 5.75 6.79 6.72 7.33 7.90 12.11 4.62

VAT onImports(billions)

3.42 4.07 5.65 6.34 7.68 8.47 9.45 11.45 8.51 6.17

Total dutiesand taxes(bilions)

11.88 12.26 14.51 16.13 18.40 18.28 18.92 22.03 22.16 11.61

C ustoms D uty

Exc ise D uty

VAT on Imports

Total duties and tax es

DUTIES AND TAXES COLLECTED BY CUSTOMS



2008 2009 2010

red channel 18 16 17

green/yellow channel 82 84 83

0

10

20

30

40

50

60

70

80

90

%

CHANNELING OF DECLARATIONS



Integrity Internal Affairs & Internal Audit Divisions within

MRA

2006: Customs Department awarded by ICAC theBest Anti-Corruption Framework Award in thePublic Service and the most improved public sectorinstitution.

2010: Integrity Risk Assessment conducted forwhole MRA: MRA awarded Best Anti-CorruptionFramework & ranked first in ManagementCommitment and Integrity Management



Projects in the pipeline Mauritius Trade Portal based on the Single

Window Concept

Paperless Customs Internal Appeal Mechanism & Prescribed

Administrative Penalties

Accounts Manager.



End Note• In today’s world, the only constant is change - Need for

continuous improvement

• For change to be sustainable - Need for trust and

commitment through leadership, employee

participation, communication & motivation

• Comment from a change agent: ‘Customs reform is like

pregnancy. It is often fun and easy to conceive, butdelivery is long and painful.’

overall impl mus e

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