world customs organization

Risk management:a critical Customs tool

Haiti in the spotlight:Customs' role in an emergency

Customs valuation: 30 years of the GATT/WTO Agreement

No 62 JUNE 2010

www.wcoomd.orgNEWSW C O

World Customs Organization

2 WCO News – No 62 – June 2010

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3WCO News – No 62 – June 2010

Content 4 Calendar

5 Editorial

6 Buzz

9 Flash info

15 Special dossier • Getting to grips with risk management • Initial results of the Custom risk management survey • Risk management: what can you really manage? • WCO puts risk management under the microscope Latest developments WCO risk management activities • Risk management: key enablers • Managing risk in practise: South Africa shares her experience • How to modernize risk analysis and the selectivity of

Customs controls in developing countries? • Joint risk analysis on cross-border traffic in Bosnia and

Herzegovina • Mexico Customs reports success with risk analysis

34 In conversation • Susanne Aigner and Heike Barczyk; new Deputy Directors

at the WCO Secretariat

36 Our Members world

41 Zoom • Colombian Customs administration

42 Focus • Protecting cultural heritage • Emergency humanitarian aid and the Haiti disaster • Using statistics to fight corruption

52 Events • International Customs Day around the world • Karl Heinz Matthias, Director of the Zollkriminalamt (ZKA),

retires • WCO Information Technology Conference, Dublin (Ireland) • The WCO technical Committee on Customs Valuation

celebrates 30 years of the GATT/WTO Agreement • National and regional Harmonized System Seminars

Editorial noteWCONewsisdistributedfreeofchargeinFrenchandinEnglishtoCustomsadministrations,internationalor-ganisations,non-governmentalorganisations,thebusi-nesscommunityandotherinterestedreaders.ItshouldbementionedthatopinionsexpressedinWCONewsarethoseofthecontributorsanddonotnecessarilyreflecttheofficialviewsoftheWorldCustomsOrganization.Contributions in English or French are welcome butshouldbesubmittednotlaterthan 10 August 2010.Inthisregard,theWCOreservestherighttopublish,nottopublish,ortoeditarticlestoensuretheirconformitywiththemagazine’seditorialpolicy.TheWCOCommunicationServiceisavailabletoattendtoallrequestsforsubscrip-tions,submissionofcontributionsforconsideration,andanyotherenquiriesrelatingtoWCONews.Pleasee-mailcommunication@wcoomd.org

D/2010/0448/5

Copyright©2010WorldCustomsOrganizationAllrightsreserved.Requestsandenquiriesconcerningtranslation,reproductionandadaptationrightsshouldbeaddressedtocopyright@wcoomd.org

Acknowledgements: TheEditorialTeamwishestoex-pressitssinceregratitudetoallwhocontributedtothispublication.

Pictures: Oursinceregratitudealsogoestoallwhokindlyprovidedphotos,logosanddrawingstoillustratethisissue.

Design: www.inextremis.be

Director of PublicationKunioMikuriya

Editor in ChiefDanielleMaïano

EditorsGrantBusbyLaureTempier

Online subscriptionshttp://www.wcoomd.org/home_press_wco_news.htm

Advertising

BernardBessis

Electronic addresses

Editorial & Subscriptions [email protected]

Advertising [email protected]

PublisherWorldCustomsOrganizationRueduMarché,30B-1210BrusselsBelgium

Tel.:+32(0)22099442Fax:+32(0)[email protected]

WCO NeWs N° 62June2010


C A l e n D A R

Calendar of EventsIt should be noted that these meetings are mentioned for information purposes and are not all open to the public. Training workshops are aimed at the private sector. Unless otherwise indicated, all meetings are held in Brussels. Please note that these dates are indicative only and may be subject to change. This document is regularly updated on the WCO Members’ web site, under the “Information for delegates” section, and on the WCO public web site, www.wcoomd.org , under the “Events” section.

June

15 - 16 TrainingworkshoponWCODataModelversion3.0 15 - 16 TrainingworkshoponCustomsValuationandTransferPricing 21 - 23 PolicyCommission(63rdSession) 24 - 26 Council(115th/116thSessions) 26 InternationalDayagainstDrugAbuseandIllicitTrafficking 26 - 27 G-20Summit,Toronto(Canada) 28 - 29 WCORiskManagementForum

September 1 - 2 InternationalCustomsConference:EU-BelgiumPavilionatEXPO2010,Shanghai(China) 7 - 8 AdHocGrouponGloballyNetworkedCustoms 9 - 10 HarmonizedSystemCommitteeWorkingParty 13 - 24 HarmonizedSystemCommittee(46thSession) 20 - 24 DataModelProjectTeam 27 - 29 CapacityBuildingCommittee(1stSession) 30 - 01/10 IntegritySub-Committee(9thSession)

October 1 RegionalOfficesforCapacityBuilding/RegionalTrainingCentres 4 - 8 WCOUNCITRALJointLegalTaskForce(3rdMeeting) 11 - 12 PrivateSectorConsultativeGroup(15thMeeting) 12 SAFEMembersOnlyMeeting 13 Customs-Businessevent 14 - 15 SAFEWorkingGroup(7thMeeting) 18 - 22 PermanentTechnicalCommittee(189th/190thSessions) 20 1stWorldStatisticsDay 25 - 29 TechnicalCommitteeonCustomsValuation(31stSession)

November 2 - 4 2ndTechnologyandInnovationConference(Egypt) 3 - 4 WCOCounterfeitingandPiracy(CAP)Group(3rdMeeting) 9 - 10 AdHocGrouponGloballyNetworkedCustoms 10 - 13 14thInternationalAnti-CorruptionConference(IACC),Bangkok(Thailand) 15 - 24 HarmonizedSystemReviewSub-Committee(41stSession) 23 - 25 5thWCOPicardConference,AbuDhabi(UAE) 29 - 30 AdministrativeCommitteefortheCustomsConventiononContainers,1972(12thMeeting)

December 1 - 3 RevisedKyotoConventionManagementCommittee(9thMeeting) 6 - 8 PolicyCommission(64thSession) 8 - 10 WorkingGrouponCommercialFraud(6thMeeting)

5WCO News – No 62 – June 2010 5

e D i T O R i A l

Dear colleagues and partners,

This edition's special dossier is dedicated to risk management, in preparation for this year’s WCO Council sessions with a panel discussion, followed by an open Forum, both centered on this theme. As Council Chair Martyn Dunne details in his introduction to the special dossier, this concept has been one of the guiding principles of modern Customs administrations, and is embodied in many WCO instruments. Together with other critical building blocks, risk management in-dicates the direction of Customs in the 21st century.

Constantly faced with new challenges, Customs should remain responsive in man-aging emerging risks. One example is natural and other disasters where Customs is expected to facilitate the expeditious clearance of relief consignments. We still have fresh memories of the recent earthquakes in Haiti and other countries that caused such numerous scenes of human tragedy. An associated risk is that of the illegal trade in cultural heritage, especially illegal outflows from countries that have suffered natural and other disasters. This issue also touches on the WCO's efforts in working closely with the Red Cross, UNESCO and other international organizations to manage these risks.

Another emerging and pressing risk is that of fake medicines and other coun-terfeit goods that pose direct threats to the health and safety of people. The WCO has been active in raising awareness about this risk and the contribution Customs can make in ensuring that the message about this cruel trade is heard by the public, business and governments. The new partnership with the Chirac Foundation to fight against fake medicines will provide us with an important platform to sensitize the world's political leaders.

Customs needs to cooperate with its partners to effectively manage these risks. The Customs-business partnership, another important building block of the WCO's Customs in the 21st Century strategic policy and the theme of this year’s International Customs Day, is aimed at improving compliance by business which will reduce risk for Customs administrations and facilitate trade. The many activi-ties by our Members on International Customs Day to highlight this important partnership are also captured in this edition.

I hope that you enjoy reading this latest issue and look forward to seeing you at the Council sessions in June!

Kunio MikuriyaSECRETARyGENERAL

Buzz• Last minuteThe5thWCOPicardConference,originallyscheduledtotakeplacefrom28-30Sep-tember2010,hasbeenrescheduledandwillnowtakeplacefrom23-25November2010.ItwillbeheldinAbuDhabi(UAE)asplanned.

• InfoThe WTO Public Forum 2010 with the theme “TheForcesShapingWorldTrade”willbeheldatWTOHeadquartersinGe-nevafrom15-17September2010.ThisForumprovideanopportunitytotakestockofthelatestdevelopmentsattheglobal level thatarehavingan impactonthemultilateraltradingsystem,andidentifystepsthatwillcontributetowardsbolsteringinternationaltradeflowsandstrengtheningtheWTO.www.wto.org/english/forums_e/ngo_e/forum10_background_e.htm

The World Bank Group isprovidingfreeaccesstomorethan2000dataindicatorsonfinance,trade,health,andhumanandeconomicdevelopment,mostofwhichwerepreviouslyavailableonlytopayingsubscribers.http://data.worldbank.org

• Get readingTheEuropeanCommissionhaspublishedaComplianceRiskManagementGuidefortaxadministrations.http://ec.europa.eu/taxation_customs

The World Bank has published a new report entitled “Africa Development Indicators 2010”. This reportdeals, inparticular,withtheissueof“quietcor-ruption”-minor,everydaymalpracticesthatneverthelesshavehugerepercussionsinAfrica,particularlyforthepoor.There-portincludesmorethan450indicatorsofmacroeconomic,sectoralandsocialdatafor53Africancountries.www.worldbank.org

• Look out forThe WCO’s annual Reports on Drugs, Tobacco and Cigarettes, and Intellectual Property Rights willbeissuedinlateJune2010.www.wcoomd.org

• On the front pageInternational Day against Drug Abuse and Illicit Trafficking willbemarkedon

26June2010.Promotionalmaterial(bro-chure,logopackage,factsheet)canbedownloadedfromtheUNODCwebsite.w w w.unodc.org/unodc/en/about-unodc/26-June.html

EU-China International Customs Confer-ence withthetheme“ModernCustoms:Buildingbridgestofacilitatelegitimatetradewhileprotectingcitizens”willtakeplaceintheEU-BelgiumPavilionatExpo2010 inShanghai from1-2September2010.TheeventisbeingorganizedbytheEuropeanCommissionincollaborationwithChineseCustoms.http://ec.europa.eu/taxation_customs

Achim Steiner has been re-elected Ex-ecutive Director of the United Nations Environment Programme (UNEP)forafive-yeartermbeginning15June2010.www.unep.org

John Scanlon has been appointed Secre-tary-General of CITES. HewaspreviouslyPrincipalAdvisorattheUnitedNationsEnvironment Programme (UNEP) andtakesoverfromWillemWijnstekerswhoretiredon1May2010afterbeingCITESSecretary-Generalsince1999.www.cites.org

• Current eventsTheWCOCapacityBuildingDirectoratemeetingsscheduledfortheweekof19to23April2010werepostponedduetothetheashcloudcrisisthataffectedairtravel.The1stSessionoftheCapacityBuildingCommittee,the9thSessionoftheInteg-ritySub-CommitteeandtheMeetingoftheRegionalOfficesforCapacityBuild-ingandRegionalTrainingCentreswillnowtakeplace from27Septemberto1October2010.

The posts of Director of Compliance and Facilitation and Director of Capacity BuildingintheWCOSecretariatwillfallvacanton31December2010.TheDirec-torsGeneraloftheWCO’s176MemberCustomsadministrationswillelecttwonew Directors during their June 2010Councilsessions.Theywilltakeupofficeon1January2011.www.wcoomd.org

Following the death of Antoine Manga, WCODirectorofTariffandTradeAffairs,the Deputy Secretary General Sergio

MujicawilltakechargeoftheDirecto-rateuntilanewDirectorassumesoffice.ElectionsforthepostwilltakeplaceattheJune2011Councilsessions.www.wcoomd.org

• AccessionsThe Republic of Mali, the Republic of Malta, and the United Arab Emirates de-positedtheirinstrumentofaccessiontotheInternationalConventionontheSim-plificationandHarmonizationofCustomsProcedures(RevisedKyotoConvention)withtheWCOrespectivelyon4,11and31May2010.TheConventionwhichen-teredintoforceon3February2006nowhas69ContractingParties.www.wcoomd.org

• AppointmentsRecentlyappointedDirectorsGeneral:Mrs.MarleneArdayaVásquez(Bolivia);Mr. Sang-Goo Byun (Korea, Rep. of);Vice-AdmiralPedroMiguelPérezBetancourt(Cuba); Mr. Tális Kravalis (Latvia);Mrs. Angélique Berg (Netherlands);Mrs. Gloria Luque Ramírez (Peru);M r . I h o r K a l e t n i k ( U k r a i n e ) ;Mr.EnriqueCanonPedragosa(Uruguay).

Contrarytoourearlierannouncement,Mr. Erling Andersen is still Denmark’sDirectorGeneralofCustoms.

• For your diary!11June-21July2010:FootballWorldCup,SouthAfrica

• WCO trophiesForthe5thyearinsuccession,theWCOwill award the trophy for combating counterfeiting and piracyduringtheJune2010Councilsessions.Thisyearthetro-phywillgotoaCustomsadministrationwhichhasdistinguisheditselfinthefightagainsttheillicittrafficinfakemedicines.

AllWCOMembershavebeeninvitedtoparticipateinthe second edition of the WCO Photo Competition.Thetrophywillbeawardedduring the June2010Councilsessions.PhotoswillshowCus-tomsservicesinactionintheirday-to-daywork.

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Changes ahead for the WCO

On Saturday 26 June 2010, theDirectorsGeneralofCustomswho

will have gathered in Brussels for the115th/116th Council Sessions will electnewDirectorstoreplaceMichaelSchmitz,DirectorofComplianceandFacilitation,andLarsKarlsson,DirectorofCapacityBuilding.

Director of Compliance and Facilitation

Ms.SandraLeeBell

ExecutiveDirector,RegulationsandRulings,OfficeofInterna-tionalTrade,CustomsandBor-derProtection(UnitedStates)

Mr.UriBruck

Minister-Counsellor(Customsand Taxation), Embassy ofIsraelinBrussels(Israel)

Mr.HippolyteDjegou

DirectorGeneral,DirectorateGeneralofCustomsandIndi-rectTaxes(Benin)

Mr.MahmoudElMadna

Researcher,InternationalBestPracticesCommittee,Strate-gicPlanningSector,CustomsAuthority(Egypt)

Mr.MmadiMoindjie

NationalAdministratorofASy-CUDA++,DirectorateGeneralof Customs IT system (Co-moros)

Mr.GaozhangZhu

DirectorGeneral,InternationalCooperation,GeneralAdminis-trationofCustoms(China)

Director of Capacity Building

Mr.EmadAlTamimiHead of Computer Section,CustomsDepartment(Jordan)

Mr.HippolyteDjegou

DirectorGeneral,DirectorateGeneralofCustomsandIndi-rectTaxes(Benin)

Ms. Christina FelicitasMsemburi

Commissioner, Human Re-sources and Administration,RevenueAuthority(Zimbabwe)

Mr.ErichKieck

Group Executive, CustomsStrategyandPolicy,RevenueService(SouthAfrica)

-1/11-

APPLICATION FOR THE POST OF CAPACITY BUILDING DIRECTOR

WITHIN THE WORLD CUSTOMS ORGANIZATION1

1. PARTICULARS

Family name (in capitals)

dr. NAGY

Maiden name (in capitals)

-

First name(s) (in capitals)

János

Sex x M □ F

Date of birth

17 April 1956

Place of birth

Budapest 1 Application to be typed, and to be made available in electronic format on request.

Mr.JanosNagyNationalCommander,CustomsandFinanceGuard(Hungary)

ItwillbetheresponsibilityoftheCounciltonominatetwoDirectorstotakeofficeon1January2011inaccordancewiththerulesinforce.

TheSecretariatispleasedtoannouncethatapplicationsfromthefollowingcan-didateshavebeenreceivedforthepostsof

DirectorofComplianceandFacilitationandDirectorofCapacityBuilding.

Apress releaseonthe resultsof theelectionswillbe issuedbytheWCOSecretariat.

More informationwww.wcoomd.org


f l A s H i n f O

Farewell Antoine

ItiswithdeepsadnessthattheinternationalCustoms

communitylearnedofthedeath of Antoine MarieMangaMassina,DirectorofTariffandTradeAffairs intheWCOSecretariat,whopassed away on 24 April2010.

Since 1 Januar y 20 08Mr.MangahadbeenDirectorofTariffandTradeAf-fairs,responsibleformattersrelatingtotheHarmonizedSystem,originandvaluation-coreareasofCustomsactivity.From1992to1999hewasDeputyDirectorofValuationattheSecretariat.

HisexperienceandtremendousexpertiseinCustomsmat-terswereacknowledgedbyhispeers,andenabledhimto

occupyseveralhigh-levelpostsinthecourseofhispro-fessionalcareer,bothinCameroonandabroad,culminat-inginhisappointmentasCameroon’sDirectorGeneralofCustomsin2005.AfterthatitwasonceagaintheturnoftheWCO,itsMembersandtheinternationalCustomscommunitytobenefitfromhisspiritofopenness,hisabilitytolisten,hispracticalCustomsknowledgeandhishumanqualities.

OnbehalfoftheinternationalCustomscommunityandthestaffoftheWCOSecretariat,WCOSecretaryGeneralKunioMikuriyaexpressedhissincerecondolencestoAntoine’sfamily.

[email protected].


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f l A s H i n f O

The Cotonou Declaration, a policy strategy for achieving rapid results

Justlikeanyothercommodity,medi-cinesarenowpartoftheglobalization

process.Indevelopingcountries,thefreemovementofmedicineshas increasedpublicaccesstohealthcare,withmorepeople instinctively seeking medicaltreatment, and has promoted the es-tablishmentofmedicinepurchasingco-operatives.Thediversificationoffundingfordevelopmentassistanceinthehealth-caredomainhasbroughtdownthecostofmedicinesforpatientsintheworld’spoorestcountries.

ThesepositiveresultsmeettheMillen-niumDevelopmentGoals,setalmost10yearsagoattheUnitedNations.However,inparallelwiththesepositiveresults,thetradeinillicitmedicineshasbeenincreas-ingexponentially.Developingcountriesarecurrentlyunderthreatfromamassiveinfluxoffakeanddefectivemedicinesar-rivingthroughbothcriminalandofficialdistributionchannels.Theseaccountfor30%ofmedicinesbroughtintodevelop-ingcountries.

Comprehensive political action is requiredThecausesofthisdangerousphenom-enonaremanifold.Inadditiontopub-lichealthandsocialsecuritystructuralpolicieswhicharecostlyandseldomim-plemented,thereareinsufficientqual-itycontrolsonmedicinesplacedonthemarket,problemsinensuringaneffectiveCustomsreponse,shortcomingsintheenforcementsystem,and indisputableflawsinStates’legislativeandregulatoryframeworks.

Thesefactorshavetobeplacedwithinaregionaloreveninternationalcontext.TraffickersexploitStates’weaknessesaswellastheirlackofcooperationanddif-ficultiesinharmonizingtheirregulations.Thisarrayofproblemsrequirespoliticalaction that inspires stakeholders andunitesthestructuresandadministrationsworkingineachoftheaffectedareas.

ItisforthatreasonthatJacquesChiracandanumberofHeadsofStateissuedtheCotonouDeclarationagainstfakemedi-cinesinOctober2009.TheDeclaration’ssignatoriespledgetodeveloptherequisitelegislativeandregulatoryprovisionsandgenuinelyhopeforaninternationallegalframeworkgivingeachpartythemeanstoactinunison.

A solution focusing on three areasThis scourge can only be eradicatedthroughacombinationofenforcementactivitiesandbetteraccess toqualitymedicines,stringentqualitycontrolsonproducts,andenhancedtraceabilityandsecurityofpharmaceuticaldistributionchannels.Thesuccessofthisenforce-mentapproachrestsonthejointimple-mentationofthesestrategies,aswellasonsimultaneousoperationsatthesub-regionallevel.

TheactivitiesundertakenbytheChiracFoundationsincetheCotonouDeclara-tionhavefocusedonthreecomplemen-taryareas:

• Following up on the Cotonou Dec-laration commitmentsmadebyinter-nationalpolicymakers

• Supporting and advising the com-mitteesbeingsetuptocounter“fakemedicines”withinthesignatoryStatesbyensuringthatallthestakeholdersareabletovoicetheiropinionstherein

• Promoting a binding legal frame-work with international scope to wage war against the production of and trade in fake medicines

TheskillsofferedbytheWCOarecrucialforobtainingrapidresultsinthelattertwoareas.

AtState level, jointeffortshavetobemadetostrengthenCustoms’roleaspartofthemechanismtocombatfakemedi-cines.Theirrepresentativesmustenterintofullpartnershipwithhealthprofes-sionals,consumers,policeand judicialauthorities.

Onanother level, theWCO’scapacitytonetworkwithitsMembersanditsex-tremelythoroughknowledgeofCustomscodesineffectcouldservetheinterestsofcooperationbetweenStatesaswellastheestablishmentofamodellegalframeworkapplicablebyallcountries.Thiswouldpermitthemutualdevelopmentoftoolstocombatfakemedicines.

WiththeWCO’sassistance,theChiracFoundationhasalreadybeenabletosendamessagetoCustomsofficersinBeninunderscoringtheimportanceoftheirroleinthishighlyambitiousproject.WehopethatwithnationalCustomsadministra-tionsonboard,wecancontinuetomakeajointcallforrapidresultsinthefuture.Asthingscurrentlystand,onceafakemedi-cinehasclearedCustomsitisimpossibletotraceitwithinaterritory.

Catherine Joubert has been the Managing Di-rector of the Chirac Foundation since 2010 and is responsible for coordinating and developing the Foundation’s programmes concerning ac-cess to quality medication and water, combat-ing deforestation, and preserving cultural di-versity. During her career she has managed the French Ministry of Foreign Affairs “Bienvenue en France Association” which promotes exchange and dialogue between cultures, and worked on the “Connaissance et Vie d’Aujourd’hui” lecture series focusing on national, European and inter-national challenges.

More informationwww.fondationchirac.eu

by Catherine Joubert

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12

Bearing in mind the severe healthriskfactorsderivedfromsmoking,

theWorldHealthOrganization(WHO)launchedtheideaforaninternationalinstrument to control tobacco. ThisidearesultedinthedevelopmentoftheFrameworkConventiononTobaccoCon-trol(FCTC)whichcameintoforceinFeb-ruary2005.

TheConventionwhichcurrentlyhas168ContractingPartiesisacomprehensivelegal instrument for tobacco Control.TheaspectrelatedtotheillicittradeintobaccoproductsisincludedinArticle15oftheConvention.InthisArticle,thePar-tiestotheConventionrecognizethattheeliminationofallformsofillicittradeintobaccoproducts,includingsmuggling,il-licitmanufacturingandcounterfeiting,isanessentialcomponentofglobaltobaccocontrol.Article15statesthatthePartiesshalladoptandimplementeffectiveleg-islative,executive,administrativeorotherappropriatemeasureswithaviewtoelimi-natingillicittradeintobaccoproducts.

AtitsfirstsessioninFebruary2006,theConferenceoftheParties(COP)notedthatArticle15didnotgofarenoughinfacilitatinginternationalcooperationtoenableParties toeffectivelyeliminatetheillicittrade.Theydecidedthereforetoestablishanintergovernmentalnego-tiatingbody(INB)toprepareatemplateforaProtocolonIllicitTradeinTobaccoProductswhichwillbuilduponandcom-plementtheprovisionsofArticle15oftheFCTC.Sinceitsestablishment,theINBhasconvenedinGenevafourtimeseachyearsince2007.

TheINBconsistsofPartiestotheFCTCandobserverswhichareStatesnon-Par-

Global system on illicit trafficking in tobacco products makes progress

ties,internationalintergovernmentalor-ganizations(notablytheWCO)andnon-governmentalorganizations(forexampletheFrameworkConventionAlliance).

Todate,keyelementsofthedraftproto-colinclude:

• measurestocontrolthetobaccoprod-uctsupplychain(includingtrackingandtracingoftobaccoproducts, li-censing,anti-moneylaunderingmeas-ures,andrestrictionsoninternetsalesoftobaccoproducts)

• measuresdealingwithcriminalizationandenforcement(includingtheestab-lishmentofoffences,sanctions,penal-ties,destruction,specialenforcementtechniques)

• internationalcooperativemeasures(including information sharing, co-operationintechnicalmattersandintraining,andmutuallegalandadmin-istrativeassistance)

It isextremelychallengingtogetcon-sensusonbindingmeasurestobeimple-mentedataninternationallevelinthefightagainsttheillicittradeintobaccoproducts.ThefourthsessionoftheINBendedinfactwithoutafinalagreement.AlthoughthePartiesdidreachagreementonsomesignificantprovisions,otherpro-visionswerenotfinalized.

AmongthoseonwhichanagreementwasreachedwastheestablishmentofaglobaltrackingatracingregimeforalltobaccoproductsassetoutinArticle7;consid-eredthecoreelementoftheProtocol.Thetrackingandtracingregimecomprisesna-tionalandregionaltrackingandtracing

systemsandaglobalinformationsharingfocalpointlocatedattheWHOFCTCSec-retariat,accessibletoallParties.

Thesystemrequiresunique,secureandnon-removableidentificationmarkings,suchascodesorstamps,tobeaffixedtoorformpartofallunitpackets,packagesandanyoutsidepackagingofcigarettesandothertobaccoproducts.Byusingtheseuniqueidentificationmarkings,onecanaccesstheportalandreceivespecificinformationsuchasthedateandloca-tionofmanufactureandtheintendedshipmentroute,dateanddestination.TheaimistoassistPartiesindetermin-ingtheoriginoftobaccoproducts,thepointofdiversionwhereapplicable,andtomonitorandcontrolthemovementoftobaccoproductsandtheirlegalstatus.The implementationofthisandotherimportantprovisionscontainedintheProtocolwillimpactontheworkofCus-tomssignificantly.

ThedraftProtocol,thetextofwhichwasagreedbytheINBatitsfourthsessioninMarch2010,willbeconsideredbytheCOPatitsfourthsessiontobeheldinUruguayinNovember2010.

BearinginmindthattheFrameworkCon-ventionisoneofthemostquicklyandwidelyratifiedinternationalconventions,theWCOSecretariatstronglyencouragesitsMemberstoexaminetheProtocol’stextandurgesCustomsadministrationstoactivelyparticipatein,orprovideinputsto,theworkofthenextCOPasfurtherfinalnegotiationsmayinfactleadtoabindingagreementwithstrongimplica-tionsforCustomsactivitiesincounteringtheillicittradeintobaccoproducts.

TheWCO,theFCTCSecretariatandtheWHOarecontinuingtoseeksynergiesandcomplementarities intherelevantareasoftheProtocol.

More informationwww.who.int/gb/fctcwww.fctc.org

WCO News – No 62 – June 2010

©A

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alia

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©AustralianCustoms


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13

Customs info in a few clicks!

…the EC launches the first phase of the European Customs Information Portal

TheEuropeanCustoms InformationPortal(ECIP)aimstohelpbusinesses

throughtheCustomsproceduresthathave to be followed when importinggoodsintoandexportinggoodsfromtheEuropeanUnion(EU)orwhentheyaremerelyintransitthroughtheEU.

ThecurrentversionoftheECIPconsti-tutesasinglepointofaccesstorelevantandpracticalinformationontheapplica-tionoftheSafetyandSecurityAmend-menttotheCustomsCodeandrelatedprocedures.ItusesspecialanimatedCus-tomsscenariostoexplaineachstepoftheimport,exportandtransitproceduresinaneasywaytoeconomicoperators.Fur-thermoreitpoolsinformationfrombothEUMemberStateCustomsPortalsandEuropeanCommission(EC)sources.

ThewebportalwasjointlydevelopedbytheEC,itsTradeContactGroupandEUMemberStates.ItfocusesontheeffectsoftheentryintoforceoftheSafetyandSecurityAmendment to theCustomsCodeon1July2009.ThewebportalispubliclyavailableaspartoftheCommis-sion’sEUROPAwebsite.

Atpresent,theECIPcontainsthreemaincategoriesofinformation.First,itgath-

Publications get with it!

DuringtheJune2009Coun-cilsessionstheSecretariat

undertooktomodernizeitspub-lications.Existingtoolshavebeenenhancedandnewdevelopmentsenvisaged.

Modernization of publications in 2009/2010, we pulled it off…ThenewdigitalversionoftheHS,test-edinJune2009,isnowavailableonCD-Romandonline.Itcontainsmanynewfunctionssuchasthepossibilitytokeyinnotesandcommentsonitemsandrecoversthem,toplaceapersonalpost-itonachapter,section,heading,classifica-tionopinionorexplanatorynote,alin-guisticsearchengine,etc.

WCO Publications available in differ-entelectronicformatshavebecomeanintegral part of Customs informationportals and professional applications.Theycertainlymeetusers’expectationsasisdemonstratedbyincreasedsalesofthesemedia.

SincetheissueofHSAmendingSupple-mentNo.7,theuseofanewprofessionaleditorialtoolhasmeantthatpublicationsareavailableatthesametimeviadiffer-entmedia:inpaper;onCD-Romoron-line.Translationsofpublicationsareeasilyhandledwhilstensuringalignmentwiththeoriginalversions.

Improved service to Members in 2010/2011, on the way…Aspromised,theSecretariatiscontinu-ing in itsefforts tomakepublicationsavailableinnewlanguages.Inthefirsthalfof2010Italian,Russian,andSpan-ishversionsoftheHSDataBase(HSDB)wereplacedonline.Newtranslationsinotherlanguagescouldbeaddedthisyeartoo.TheSecretariatisinfactlookingforvolunteersfortrialswithalanguageusingideogramsandwithArabic.

2010/2011willbedevotedtoworkonthepublicationofthe2012versionoftheHS

whichwillbelaunchedinSeptember2011.TheHSDB,AlphabeticalIndexandanewversionoftheCompendiumofClassifica-tionOpinionswillbeavailableforthefirsttimeinallmediaformatsconcurrently.LetusnotforgetthattheAlphabeticalIndexforthe2007versionoftheHSonlycameouttwoyearsaftertheHSitselfandtheCD-Romwasmadeavailable18monthslater.We’vecomealongway!

DifferentDirectorateswithintheSecre-tariathavealsobeenmullingoverpos-siblewaystomodernizeallotherWCOpublicationsanddevelopnewtools.TherevisedKyotoConventionforexampleisalreadyavailableinaninternetformat(HTML)andwillbeequippedwithasearchenginebytheendoftheyear.

Afteradapteditspublicationstocomplywithneweditorialstandards,theSecre-tariatnowwishestoprovideitsMembersandthegeneralpublicwithaninnovative,cutting-edgeservice.From2010,WCOpublicationswillbetestedonaNomadTabletPC.Hopetoseeyoutotryoutthisnewmediumat the2011CouncilSessions!


>>

©T

axud


f l A s H i n f O

S a f e t y. . . . t a k e s j u s t a f e w s e c o n d s

Yo u r p a r t n e r i n t h e f i g h t a g a i n s t t e r r o r i s m

a n d d r u g s

P h o n e + 3 1 - ( 0 ) 5 8 - 2 9 8 8 8 8 8 , Fa x : + 3 1 - ( 0 ) 5 8 - 2 9 8 8 7 6 8 , i n f o @ o d s e c u r i t y. c o m , w w w. o d s e c u r i t y. c o m

s e c u r i t y b o d y s c a n

ersinformationfromtheCustomssitesoftheCommissionandEUMemberStates.This information includes databases,procedures and assistance services aswellasrelevantpolicyinformationcon-tainedinvariousCommissionwebsites.Italsofeaturesanimated“Customssce-

narios”,whichtakeusersstep-by-stepthrough different export, import andtransitprocedures.Thesescenariosex-plaineachstageoftheprocedures,list-ingresponsibleauthoritiesandrelevantdocumentsthathavetobefiledateachstage.Eachscenarioisaccompaniedbyadetailedglossarythatlinkstorelevantdocuments,databasesand legislation.Lastbutnotleast,theportalcoversthelegalframework.

ThefirstphaseoftheECIPwebsiteisaforerunnertothecomprehensiveCustomsinformationportal foreseenata laterstage.ItisaprojecttotestandstudythebasicfunctionalitiesofaportalapproachforCustomsthatcombinesinformation

fromtwosources,namely,theECandEUMemberStates.TheCommissionplanstofurtherdeveloptheportalonthebasisofexperiencegainedandfeedbackreceived.ItscoverageandindepthinformationonCustomsproceduresarescheduledtobeextendedovertime.

More informationhttp://ec.europa.eu/ecip/

It uses special animated

Customs scenarios to explain

each step of the import, export

and transit procedures in an easy

way to economic operators.

s P e C i A l D O s s i e R


Riskmanagementisthesystematicapplicationofmanage-mentpolicies,proceduresandpracticesinordertoiden-

tify,analyse,assess,handle,monitorandanticipaterisk.Riskmanagement,anintegralpartoftheRevisedKyotoConven-tion(RKC)andotherWCOinstruments,offersclearandvisiblebenefitstotheinternationalCustomscommunity,whichmustconstantlyimproveitseffectivenessanditsperformance,andbeevermoretransparent,responsibleandprofessional.

Butwhatliesbehindthisconcept?Howisitreflectedinthefield?ThisisthesubjectofourSpecialDossierwhich,throughtheexperiencesofvariouscountriesandthemanydiscussionsheldonthissubject,looksathowriskmanagementcanbede-velopedinpractice.

Special DossierRisk Management


Getting to grips with risk management

by Martyn Dunne, Chairperson of the Council


andhencelowertransactioncosts;andimprovedcooperationbetweentradersandCustoms.

Improvedmanagementprocessesleadtoimprovedreputation,thecapacitytoworkmoreeffectivelywiththesameorfewerresources,amore‘intelligent’approachandprofessionalismofstaff,andbetterresultsoverall,leadingtoCustomsachiev-ingorganisationalandnationalobjectives.

A different way of doing things

Tomanagerisk,aCustomsadministrationmustmoveawayfromtraditionalmeth-odsandadoptanewcultureandnewwaysofsolvingproblems,includinganincreaseinaccountabilityfordecisionmaking.Riskmanagement methodology should beflexible,adaptable,andtakeintoaccountchangesintheoperatingenvironment,includinginprocessesandlegislation.Itshouldbeabletobeappliedtoanysitu-ationwhereanundesiredorunexpectedoutcomecouldhaveasignificantimpactorwhereopportunitiesareidentified.

RiskmanagementinCustoms,includingintelligenceandoperations,mustrestonmodernlegislation.Legislationshoulden-ableinformationcollectionandsharing,includinginternationallywhereappro-priate.Itshouldprovidealegalbasisforoperationsalso.Managementofcustomsriskalsobenefitsfromaninternationalcomponent. Working across borderswithotherintelligenceandenforcementagenciesenhancesriskmanagementbyimprovinginformationcollectionanden-forcementoptions.

A key programme for the WCO

TheWCOhasundertakenalotofgoodworkinthisareaandriskmanagementisanintegralpartof:therevisedKyoto

AsCustomsadministrations,weareuniquelypositionedtouseourknowl-

edgeandexpertiseinmanagingthebor-dertoimplementariskmanagementap-proach.IngeneraltermsIamsurethattheconceptandbenefitsofriskmanagementarewellunderstood.HoweverIthinkwecandomoretoensurethereispracticalimplementationacrossthefullrangeofCustomsactivity.

What do we mean by risk management?

AspointedoutduringtheWCOPolicyCommissioninDecemberlastyear,riskmanagement is not just about havinggoodprocesses; it isawayofthinkingthatmovesanadministrationtowardsproactive,ratherthanreactive,manage-mentoftheborder.Ontheoperationalor‘external’front,riskmanagementisanef-fectiveandefficientwaytodealwithlargevolumesofpeople,goodsandcraftwithlimitedresourcesandconstantlychang-ingrisk,withoutimpingingonlegitimatetradeflows.

Risktargetingprovidesuswithsharperoperationalfocus.Intelligenceanalysisidentifieswhere thegreatest risk lies.TheuseofspecialisttargetingresourceslikeTargetingCentresenablesustoef-fectivelydeployourresourcesandworkinanintegratedwaywithotheragencies.Corporate,orinternal,riskmanagementisalsoveryimportant.Itincludesconceptssuchasintegrity,leadership,legalissues,andstakeholderrelations.

What are the benefits?

The benefits of a comprehensive riskmanagementprogrammeinclude:bet-terhumanresourceallocation;increasedrevenue;improvedcompliancewithlawsandregulations;reducedreleasetimes

Convention; the SAFE Framework ofStandards;theColumbusProgramme;and the Customs in the 21st Centurystrategicpolicy.TheWCOSecretariatisalsodevelopingaRiskManagementCompendium.

KunioMikuriya,theSecretaryGeneraloftheWCO,iswellawareoftheimportanceofriskmanagementand,inparticular,theneedforpracticalimplementation.Wehavemaderiskmanagementapriorityfor2010andtheWCOishostingatwo-dayRiskManagementForumaftertheCoun-cilSessionsinJune.Atthismeetingwewilldiscusstheimportanceofriskman-agementforeachofouradministrations,identifywaysoftranslatingtheconceptofriskmanagementintoaction,andensurethatWCOworkprogrammes,includingthevitalcomponentofcapacitybuilding,arealigned.

TheWCOcanprovidethetools,butitisultimatelytheresponsibilityofindi-vidualCustomsadministrationstomakesurethatthesetoolsareimplementedtohelpusachieveourobjectives.ItakethisopportunitytoencourageallDirec-torsGeneralofCustomstoattendtheJuneForum.


s P e C i a l D O s s i e R

17

Today,Customsriskmanagement(CriM)hasbecomeadisciplineforWCOmemberadmin-

istrationsinthecoreoftheirdaytodaybusiness.CustomsadministrationsarelearningtoexploitCRiMatbothstrategicandoperationallevels,andhaveprovenit’seffectivenessatidentifyingandinterdictinghigherpriorityfiscalandnonfiscal

threats.WCOMembersareusingtheprinciplesofCRiMandseeingthebenefits,including

therecoupmentofevadedrevenueandinterdictionsofsecurityandterrorist

basedthreats,narcotics,prohib-itedgoods,andfoodandag-

riculturalthreats,asexam-ples.Anonline“Google”

search of “Customsrisk management”brings interesting

resultsandmanyrefer-ences,includingdozensof

relevantfilesandnewsitemsdiscussingavarietyof lessons

learned.Atthesametime,thereisagapintheacademicCRiMresearch.Surveydataisnotreadilyavailableand

feweffortstodatehaveformallycollectedandcol-latedtherightdatathatcanprovideasnapshotofthecurrentCRiMenvironmentforsystematicanalysispurposes.

Tohelpfillthisgap,aninitialsurveystudyofWCOMember administrations was carried out. Thestudyfocusesonapproximately20CriMcompo-nentsthatdealwithestablishingandoperatingCRiMprinciplesandpracticesfrombothstrategicandoperationalperspectives.ItscopesCRiMtocoverthoserisksassociatedwiththemovementofgoods(excludingforexampleriskswithpassengersorwithCustomsITprojects).Thestudyalsoex-ploresthelevelofdetailedunderstanding,insights,practicalimplementations,tangiblebenefits,andsuccessmeasurementcriteria,amongstotherfac-tors,atdifferentadministrations.ThemainpartofthestudydatacollectiontookplacebetweenMayandAugust2009,afteratwoyearintensiveprepa-rationphase.Thesurveyreplieswereprovidedby24administrations(outofthe36invited)fromallsixWCOregions,representingGDPpercapitaofbetween1000and40.000USDollars.

Basedonalltheoutcomesofthesurvey,thefol-lowing12recommendationshavebeenmadeforallCustomsadministrationstoconsider:

1. ReviewthecurrentoverallCRiMregime,includ-ingdefinitions,coreprocesses,alignmentwithoverallcustomsstrategicplans,andriskman-agementcycles,etc.Ifgapsorinconsistenciesexistconsiderrefinement.Trytoestablishfor-malCRiMstrategicandoperationalprocessesaspartofanestablishedriskmanagementcycle,withregularupdates,basedonthechangingoperational,criminalandlegalenvironment.EnsureCRiMisembeddedasthecoreofyourbusinessandnotjust“lipservice”oranother“papertiger”withinyouradministration.

2. ReviewandupdatethecurrentCRiMorgani-zationalstructurewithinyouradministrationwithafocusoninternalgovernance.Clearly

Initial results of the Custom risk management survey

The growing volume of global trade, as a long term trend, continues to be a significant challenge for many Customs administrations as we all strive to maintain an ability to protect our socio-economic interests from fiscal and non-fiscal threats. For many years, Customs administrations have migrated towards risk managed approaches in order to maintain control over the movement of people, goods, and conveyances across borders. Simply put, Customs administrations have learned by necessity to focus their resources on high risk cargo while simultaneously facilitating low risk trade.

by Juha Hintsa and Toni Männistö, Cross-border Research Association

©CBRA



18

determineandarticulatethefunctionsandresponsibilitieswhicharecentralizedversusde-centralized;andhowthesefunctionsandsectionsoftheorganizationinteroperateandcollaborate.Considerevenestablishinginde-pendentriskmanagement(targeting,analysisorriskassessment)units,asacomplimentaryoperationallayer;withemphasisonprovidingaclearmandate,governance,andinteroper-abilitywithotherenforcementorintelligencesections.

3. Consider updating recruitment and careerplanning,trainingprograms,recognitionandrewardsforyourspecializedriskmanagementofficers,asthisappearstobeoftentheweakspotregardinghumanresourcemanagement.MakeCRiMasanappreciatedandrecognizedjobwithinyouradministration.

4. Analyzeandprioritizethefiscalandnon-fiscalhazardsandrisksforyouradministrationandcountry,lookingatbothstrategicandopera-tionalimplicationsofriskrealizations.Takealookathowdecisionsaremadeonothercus-tomsproceduresinyouradministrationinclud-

ingbasicimportandexportprocessesandfindsolutionstopromoteandsupportriskbaseddecisionmaking.

5. Takeacloselookatabroadsetofavailablequalitativeandquantitativeriskmanagementtools,techniquesandstandards,andconsiderupgradesinyourcurrentCRiMtoolbox,basedonyouroverallpriorities.Seekabalancebe-tweenqualitativeandquantitativeapproachesandmethodologieswithoutrelyingentirelyononeortheother.

6. Haveanopenmindtoimprovethebreadth,depth,qualityandtimingaspectsofthecom-mercialdataandothersupportingcontextualdatafedintoyourCRiMprocesses;inparticu-lar,considerexploitingmorepre-departureand/orpre-arrivaldata,ascurrentlyithasverylowpriorityglobally.Collaborateproactivelywithyourtradingcommunitytoseekdatasolutionsthathelptoimproveend-to-endsupplychainvisibility.

7. Checkwhichtypeofintelligenceandotherin-formationissharedwithotheragenciesinyour

©AustralianCustoms



19

country,andabroad,andtrytoidentifyandsolveanyinformationtiming,quality,trust,legal or other hurdles preventing you frommanagingrisksbetterviaproactiveinforma-tionsharing.Fromaninternalperspective,workcloselywithyourenforcementandintelligencedivisionssotheymayfeedkeyinformationintoyourriskmanagementunitstoinfluence,sup-port,anddriveprioritiesatstrategicandtacticallevels.

8. VerifyifanytypesoflegalrestrictionsorpolicybarriersexistthatmaybenegatingCRiM.Iftheseexist,considerfindingsolutionstoup-gradethenationallegislationandregulations,localorregionalbusinesspractices,oranyotherrootcausesbehindsuchhurdles.

9. Studyandapplylessonslearnedfromexist-ingriskmanagementliterature(includingsup-plychainandenterprise riskmanagement),risk management standards (including AS/NZS4360andISO31000),andWCOmaterialsuchastheWCORiskManagementGuide,theGlobalInformationandIntelligenceStrategy,StandardizedRiskAssessments,theGlobalHighRiskIndicatordocument,andWCOe-learningmaterial.

10. EstablishsystematicbenefitsofCRiM,andbuildperformancemeasurementindicatorsintoyourCRiMframework.Activelyseekoutthemostcost-efficientCRiMenhancements,andquantitativelymeasurethesuccessofyourriskbaseddecisionsattheborder.

11. Collaborateandworkcloselywiththeprivatesectorinyourcountry.ItisimportanttobeopenandtransparentaboutCRiM(withoutrevealingsecuritysensitivedetails,ofcourse)andmakethemawareofyourplansforex-ploitingCRiMinthefuturetofacilitatelowriskcomplianttrade,and–iffeasible-providetangiblebenefitsforwellsecuredandhighlycompliantcompaniesandsupplychains,viathevariousCRiMmechanismsyouhave inplace,nowandinthefuture.

12. Lastbutnotleast,remindyouradministrationthatwhenmovingtowardsactualCRiMim-plementations,everyregionorcountrylooksatriskdifferently,thusrequiringtailoredap-proaches.However,yourapproachtoCRiMshould factor in the necessary alignmentwithregionalorglobalpartnerstopromote

thesecureflowoftrade,includinginteroperabilityandharmonizationwithelectronicsinglewindowinitiatives,internationalsecuritystandardsandprinciples,andcollaborationwithothergovern-mentpartners,customsadministrations,andthetradingcommunity.

Thefullsurveystudyreportisscheduledtobepub-lishedduringthelastweekofJune,andapresenta-tionwillbegivenattheWCORiskManagementForumon30June2010.Followingthisevent,theresearchteamintendstolaunchapproximately12casestudies,focusingondetailedenhancementsinCRiMfromCustomsadministrationsglobally.Asthelaststageofthismulti-yearCRiMresearchpro-gramme,theteamhaspreliminaryplanstodevelopa“CRiMBestPractices”guidebook,consistingofshortexamplesonhowCRiMaspectshavebeenimprovedinthepast.

More information [email protected]

The study explores the level of detailed

understanding, insights, practical

implementations, tangible benefits, and

success measurement criteria, amongst

other factors, at different administrations.

©AustralianCustoms


20

Risk management: what can you really manage?

Thereissomuchwrittenaboutriskmanage-ment,itseemsthatthereisnothinglefttosay.

Conceptually,“risk”isusedtodenoteperils,loss,dangerousoccurrences,hazards,andevenvulnera-bilities.Thoseofuswhohadtoteachmanagementatcollegeanduniversitylevelsknowthatmanage-mentfromthetimeofHenriFayol’s14principlesin1916tocurrentmanagementteachingincludesfunctionalprinciplessuchasplanning,organizing,commanding,controlling,leading,budgeting;prin-ciplesinhumanresourceslikepersonneladminis-tration,humanmotivationandrelations,training,developmentandperformanceappraisals,andop-erationalmanagement.Inotherwords,riskman-agement,involveseveryaspectofanorganization’sstatusandoperations.Butwhataboutsecurityinaglobalsupplychain?Inthesupplychainthereareriskelementslikethirdparties,foreignshippers,carriers,weather,foreigngovernmentinvolvement,disruptionintheprocess,timing,language,cargoqualityandquantity,andotherforces.

Organizations(andfirms)needtofocustheirriskmanagementeffortsonwhattheycancontrol.Therefore,thosetaskedwithriskmanagementdu-tiesmustunderstandthreedefinitivecategories:nocontrol;directcontrol;andindirectcontrolwithindirectcontrolbeingthemostdifficultsincethefundamentalcomponentofriskisthehumanele-ment,themostdifficultelementtomanage.

NO control

Globalsupplychainmanagersunderstandthere’snotmuchtheycandoaboutthebreakoutofwarornationalhostility.Whathastraditionallybeenacceptedasnotunderthecontrolofanorgani-zationhasbeenexpressedinthelegalconceptof“forcemajeure”.

“Forcemajeure literallymeans“greaterforce”.Theseclausesexcuseapartyfromliabilityifsomeunforeseeneventbeyondthecontrolofthatpartypreventsitfromperformingitsobligationsunderacontract.Typically,forcemajeureclausescovernaturaldisastersorother“ActsofGod”,war,orthefailureofthirdparties--suchassuppliersandsubcontractors--toperformtheirobligationstothecontractingparty.Itisimportanttoremem-berthatforcemajeureclausesareintendedtoex-cuseapartyonlyifthefailuretoperformcould

"Those tasked with risk management duties must

understand three definitive categories: no control;

direct control; and indirect control."


By James Giermanski

©InterAmericanDevelopmentBank


notbeavoidedbytheexerciseofduecarebythatparty.”(ForceMajeure,http://www.library.yale.edu/~llicense/forcegen.shtml)

DIRECT control

Withtheincrediblevolumeofrisksinvolvedinthesecurityofaninternationalmovementofcargo,itseemsthereshouldonlybeoneessentialfocus:thequalityandcompetencyofpersonnel,frommanagerswhohavehadtodevelopandmakepol-icytothosewhohavetocarryitout.Thus,peoplearethesinequanonofmanagingrisk,especiallywithrespecttosecurityinthesupplychain.Con-sequently,organizationsmustdevelopandadheretopoliciesthatarecarriedoutbyvetted,trustwor-thypeopleatalllevelsoftheorganization.

Twoexamples,onegovernmentandoneprivatesector,canbeusedtodemonstratethehumanroleinsupplychainsecurity:first,USCustomsandBorderProtection(CBP)recognizedthisinitsCustomsTradePartnershipAgainstTerrorism(C-TPAT);andsecond,thechain-of-custodycon-tainersecuritysystemnowbeginningtobeusedbytheprivatesector.Thehumanfactorisobvi-ousinC-TPAT’scorecomponentsthatincludethefollowing:

• Businesspartnersecurity: (a)“Writtenandverifiableprocessfortheselectionincludingmanufacturers,productsuppliersandvendors.”

• Proceduralsecurity:(i)protectagainstun-mani-festedmaterialbeingintroducedintoashipment;(ii)recordkeeping;(iii)internalcontrols–invento-ries;(iv)manifestprocedures;and(v)documen-tationverifications–quantity,quality,marking.

• Physicalsecurity: (i)surveillanceand light-ing;(ii)propercommunicationssystems;(iii)signageconsiderations;(iv)monitoringpro-grammeforsensorsandalarms;(v)facilities– fencing,guards,alarms; (vi) shippingandreceivingcontrols;and(vii)theftprevention–limitedaccesstoshippingareas,backdockprocedures(warehouserelatedactivityinre-ceivingorsendingcargo).

• Accesscontrols:(i)identificationrequirements–entryandexitlogs,photoid,escorts,pack-agescans.

• Personnelsecurity:(i)backgroundchecks–criminal,credit,driving,employmenthistory;

(ii)employmentscreening–background,drugscreening;(iii)codeofconduct–dis-tributedandacknowledged.

• Education, training,andthreatassess-ment:(i)employeerequirements,incen-tives.

• Informationtechnologysecurity:(i)pass-words,usageaccountability.

• Containersecurity:(i)stuffinganddestina-tioncontrols;(ii)breachdetectiondevices;and(iii)monitoringshipmentprogress.

• Containerinspection:(a)sevensidedin-spection(sides,ends/doors,ceiling/floor,undercarriage).

Eachoftheseinvolvestheactionsofpeople,fromtheproperselectionoftradepartnersby honest, competent managers, the de-velopmentofpoliciesandverifiableproc-esses,downtothecompetent inspectionofcontainersbywarehousedockperson-nel.Additionally,goodpersonnelselection,training,andfollow-upreviewlimit fraudandcargolossatterminalanddistributionsitesworldwide.Althoughtheprivatesec-tordoesnothaveaccesstothedataminingandintegratingsoftwareusedbyintelligenceandlawenforcementagencies,goodback-ground,criminal,andcreditchecksmustbemadeonallpersonnel,especiallyforfirmsinvolved with handling cargo in a globalsupplychain.

INDIRECT control

Assumingtheuseofgoodpersonnel,thereisstilltheissueoftheftoutsidethecontroloftheshipper,consignee,orcarrier.There-fore, systems must be used to track andcontrolcargofromitscontainerstuffingatorigintoitsunloadingatdestination.Smartcontainerusagethatemployscontrolfromorigintodestinationaddressesthe“indirectcontrol”risk.Ineffect,the“chain-of-custody”treatmentofcargocanbethemirrorimageofthetreatmentofevidenceforprosecutionpurposes–forinstance:

• What evidence was found by the lawenforcement officer = what cargo wasactuallyloaded.


Dr. James R. Giermanski (Jim) is the Chairman of Powers Global Hold-ings, Inc. and President of Powers International, LLC, an international transportation security company. He was a Regents Professor at Tex-as A&M International University (TAMIU) and is a member of the graduate faculty at the University of North Carolina in Charlotte (UNC Charlotte). Besides having ser ved as Director of Transportation and Lo-gistics Studies at TAMIU’s Center for the Study of Western Hemispheric Trade, Jim is a reviewer for the US National Research Council’s Trans-portation Research Board. He has authored over 130 articles, books, and monographs, and has been published extensively on transpor-tation and trade issues in addition to having written the International Insight column in Logistics Manage-ment for five years.

As a former FBI special agent, OSI special agent and a Colonel in the Office of Special Investiga-tions where he handled counter-intelligence matters, he currently provides transportation security lectures on C-TPAT, and other Cus-toms and Border Protection (CBP) programmes. Jim holds a Masters degree from UNC Charlotte, a Masters degree from Florida Inter-national University, and a Doctorate from the University of Miami.



• Identificationoftheofficerwhofoundtheevidence=identificationoftheac-countableindividualverifyingthecargo.

• Officer’ssignatureasthefirstcomponentoforlinkintheevidencechain=anelec-tronicsignatureofthepersonverifyingthatthepropercargoandquantitywasloaded.

• Thecontrolofevidencebyathirdpartyintheevidenceroomawaitinguseintrial=third-partycommandcenter’scontrolofcargomovement,breachdetectionandnotifications.

• ReceiptandRemovalofevidencefortrial=re-ceiptandUnloadingofthecargobyanidenti-fied,accountablepersonatdestination.

Thus,likethechainofevidence,supplychainriskmanagementisfundamentallyanissueofcontrol.Whatisabsolutelyclearisthatthe“humanele-ment”istheessentialcoreofthatissue.Globalsupplychainandcontainersecuritysystemsareinextricablylinkedtodetailedpersonnelselection,theircompetence,andperformance.Controllingrisksinanyinternationalsupplychainsystemmustbegin,beexecutedby,andendwiththehumancomponent.Therefore,thatcombinationofdirectcontrolinpersonnelselection,andindirectcontrolofintermediariesthroughsystems–humanqualitycombinedwithsystemquality–isorshouldbethemainfocusofriskmanagementwithintheglobalsupplychain.

More [email protected]

Global supply chain and container

security systems are inextricably linked to

detailed personnel selection, their

competence, and performance.

OMD actualités – No 62 – Juin 2010


23

WCO puts risk management under the microscope

Lastest developments

TheCustomsinthe21stCentury(C21)strategicpolicyapprovedbytheWCO

CouncilduringitsannualsessionsinJune2008,identifiedtheneedforapositiveandproactiveapproachtothemanage-mentofCustoms.ThethirdbuildingblockinC21identifies intelligence-driven risk managementasoneofthe10keybuildingblocksofaforward-lookingstrategyforCustoms.TogiveeffecttothedirectionoftheCouncil’sthinking,theSecretariathasbeenundertakingareviewofexist-ingWCOriskmanagementinstrumentsandtools.

ResearchhasidentifiedawidevarietyofresourcesattheWCOthatdealwithriskmanagementinvaryingdegrees.Theseinclude, interalia,the2003WCORiskManagementGuide,therevisedKyotoConvention,theGlobalIntelligenceandInformationStrategyanditse-learningmodules,andtheWCOCapacityBuild-ing Development Compendium. How-ever,noneoftheseindividualresourcescompletelyexplaintheimplementationofCustomsRiskManagementorthedetailbehindtheconceptsofintelligence-driven risk managementoramulti-layeredriskmanagementapproach.

Thepurposeofthereviewistodraftasin-glecompendiumthatwillprovideWCOMemberswitha framework for imple-mentingorganizationalriskmanagementsystems,togetherwithinstructionsandmethodstoapplyriskmanagementandassessmentthroughoutanadministration.

ThenewRiskManagementCompendiumacknowledgesandbuildsuponexistingWCOriskmanagementmaterialwiththescopeexpandedtoinclude,asappropriate,workdonebytheInternationalStandards

Organization(ISO)onriskmanagementstandardsingeneral.LinkswillbedrawnfromdocumentssuchastheISO/IEC73-Vocabulary,theISO/IEC31000-PrinciplesandGuidelinesonImplementation,andtheISO31010-RiskAssessmentTech-niques,aswellasotherrelevantreferencesandexperiencesinthisfield.

RiskManagementhasbeenapriorityforWCOcapacitybuildingsupportformanyyears.TheSafeFrameworkofStandardsrecognizesriskmanagementasoneofitscorecomponentsandtheColumbusPro-grammehasbeenprovidingassistanceindifferentformatstosupportimplemen-tationthroughdiagnostics,developmentconsultancies,training,seminars,etc.

DiagnosticmissionsconductedundertheColumbusProgrammerevealthatmanyCustomsadministrationshavealreadyin-troducedbasicprocedures,routinesandsolutionsforoperationalriskmanage-


ment.However,theyalsorevealthatinmanycasesitissomewhatlimitedtoriskassessmentandtargeting,mainlyfocus-ingonCustoms’revenuecollectionrole.

Fromaglobalperspective,thereisaneedforfurtherdevelopmentofriskmanage-ment to improve risk prevention, riskmitigationandcorrespondingallocationofresourcesbasedonintelligence-drivenriskdecisions.Theseissuesareexpectedtobefurtherexploredanddevelopeddur-ingthecomingWCORiskManagementForuminJune2010.



WCO risk management activities

Riskmanagementiskeytotheoverallreconciliationoftherequirementsof

enforcement,securityandfacilitation.OneofthebiggestchallengesCustomsadministrations are facing today is todeterminehowtobestapplyriskman-agementtoidentifyandmitigateriskattheoperationallevel.Astheonlyinter-nationalintergovernmentalorganizationthatdealswithCustomsproceduresgov-erningtradebetweencountries,theWCOhasdevelopedavarietyofdifferenttoolswhichcanassistandfacilitateitsMem-bers’workinmanagingrisk.

WCO Global Information and Intelligence Strategy

Intelligenceisakeycomponentofriskmanagement. It is produced from thecollectionandprocessingofinformationandisusedprimarilybyCustomsdeci-sion-makersatalllevelstosupporttheirdecision-makingprocesses.

TheWCOGlobalInformationandIntelli-genceStrategy(GIIS)setsoutwhatintel-ligenceis,identifiesitsactualorpotentialsource,forwhomitisbeingproduced;andwhyitisneeded.GIISalsosetsouttheintelligencecycle;fundamentalprinciplesandprocessesthatunderpinall intelli-genceactivity.

Risk Assessment, Profiling and Selectivity

Attheoperationallevel,riskassessment,profilingandselectivityformanimpor-tantpartofCustoms’workinrelationtobordercontrols.Thepurposeofbordercontrolsistoensurethatallmovementsofgoods,conveyancesandpersonsthatcrossnationalbordersoccurwithinthelaws, regulationsandprocedures thatgovernthem.

A common characteristic of a bordercrossingisthehighvolumeofimports,exportsandpassengers,makingitimpos-sibletocheckeverythingandeveryone.Thesolutionistoconcentrateresources

onidentifyingandexamininghigh-riskpassengers,cargoandconveyances.

InordertoassistitsMemberstomoreef-ficientlyallocatetheirresourcestoidenti-fiedhigh-riskareas,theWCOSecretariatdevelopedseveraltrainingmodulesonRiskAssessment,ProfilingandSelectivity:AirCargoandAircraftforFrontlineCus-tomsOfficers;PassengersforFrontlineCustomsOfficersatAirports;VesselsandSeaCargoforFrontlineOfficers;TraininginRiskManagementforSupervisors;andFrontlineCustomsOfficersatLandBorderCrossings.Updatedversionswillbeavail-ableforWCOMembersin2011.

Inadditiontothemodules,anothermod-ulehasbeendevelopedundertheWCOe-learningprogram(CustomsControls,RiskAssessment,ProfilingandSelectivity)tohelpCustomsofficersdecidehowtouseavailableresourcestoselectpassengersand/orgoodstobecontrolled,andhowthoroughthecontrolsshouldbe.

Risk Indicators

RiskprofilingisthemeansbywhichCus-tomsputsriskmanagementintoprac-tice. It replaces random examinationofdocumentsandgoodswithplannedandtargetedworkingmethods,makingmaximumuseofCustomsresources.Theprofilingprocessisbasedonspecifiedse-lectivitycriteriacalledriskindicators.

TheWCOSecretariathasseveralinstru-mentsthatidentifythemostcommonriskindicators,enablingWCOMemberstodeveloptheirownsetofriskindicatorsfordailyusebyfrontlineofficers:Stand-ardized Risk Assessments; Model RiskIndicators/Profiles; General High-RiskIndicators;andtheHandbookforCus-tomsOfficersonRiskIndicators:FactorsforIntellectualPropertyInfringement.TogetherwithWCOMembers,theSecre-tariatisalsocurrentlyproducingriskindi-catordocumentsandmanualsforair,seaandlandbordercrossingsbasedonthedifferentlogisticalstages(pre-arrival,ar-

rivalandpost-arrival).Thesedocumentswillbefinalizedin2011.

Analysis Guidelines

Riskanalysisisanessentialpartofriskas-sessmentandprovidesvaluableinforma-tiontodecision-makersonwhetherrisksunderconsiderationneedtobetreatedaswellasavailableandmostappropriatetreatmentpossibilities.Withinthiscon-text,theWCOSecretariatisintheproc-essofdevelopinganalysisguidelinesforMembersoutliningthebasicprinciples,processesandtypesofriskanalysis.TheseAnalysisGuidelineswillbemadeavailablein2011also.

CEN - Customs Enforcement Network

Analyzingdataoninternationalseizurescan improveaWCOMember’sunder-standingofglobalrisksandallowthemtorefinetheirprofilingandtargetingactiv-ity.ThereforetoolssuchastheCustomsEnforcementNetwork(CEN),whichoffersplentyofdifferentfeatures(seizureandconcealmentpicturedatabases,acom-munication network, an alert system,etc.)canbeaveryusefulinstrumentandassistMembersinmanagingrisksespe-ciallyinthefield.

Annual Reports

TheSecretariatpreparesannualreportsondrugs,tobaccoandintellectualprop-ertyrightswhichprovideaglobalover-viewofillicittradeintheseproducts.TheyassistCustomsadministrationstobetterunderstandthelatesttrendsintheriskenvironment,enablingthemtoprepareamoreefficientresponsetotherisksposedbythesespecificproductsonsociety.

Post Clearance Audit

Audit-basedcontrolscomplementriskanalysismethods.Theybothcontributetomaintainingthebalancebetweentradefacilitationandcontrol.PostClearance


Risk management: key enablersby David Widdowson

25


Auditisregardedasoneofthemostef-fectivemeasuresforcomplianceverifica-tionandfordetectingcommercialfraud,especiallyvaluationfraud.

ConsideringthatanumberofCustomsadministrationsarestillinneedofassist-anceinthisfield,WCOGuidelinesonPostClearanceAudit(PCA)weredeveloped

andareaimedatprovidingspecificguid-anceonessentialelementstointroducePCA.TheGuidelinesalsoincludeacom-pilationofexistingbestpractices.

A package of essential tools soon

Mostofthetoolsmentionedinthisarti-clewillbeincorporatedintothe“Toolsfor

RiskManagement”sectionoftheWCORiskManagementCompendiumthattheSecretariatplanstopublishinJune2011(seearticleonpage23).


Much has been written about the management of risk in the Customs context, and there is no shortage of commentary on best practice procedures, operational guidelines, strategic frameworks, and so on. Rather than cover old ground, in this article I will focus on what I consider to be some of the more critical yet often overlooked enablers of effective risk management.

hadbeenassignedtoaddress,itbecameapparentthat,formanyeconomies,theprimaryreasonforimplementingthevari-ousinitiativeshadverylittletodowithmitigatingtheriskofterrorismattempts–itwasmoreconcernedwithmaintain-ingahealthytradingrelationshipwiththeUnitedStates.Notwishingtodebatethemeritsorotherwiseofsuchastandpoint,theimportantconsiderationfromariskmanagement perspective is to ensurethattherelevantriskhasbeenproperly

identified,toavoidthepossibilityofin-troducingextraneousvariablesintothesubsequentriskmanagementdecision-makingprocess.

Appreciate the value of identify-ing low risks

Itisnowwidelyacceptedthattraderswithagoodrecordofcompliancerequirealowerlevelofscrutinythanthosewithahistoryofpoorcompliance,orthoseaboutwhichlittleisknown.ThisconceptisintegraltotheWCO’sSAFEFrame-workofStandardswhichpromotesarangeofbenefitsforAuthorisedEco-nomicOperators(AEO)byvirtueoftheirlowriskstatus.Alongwithother‘trustedtrader’regimes,theAEOprogrammere-flectssoundprinciplesofriskmanage-mentbyidentifyinglowriskmembersoftheinternationaltradingcommunitytoreducethesizeofthe‘riskpie’,thereby

Understand the true nature of risk

WheneverI’maskedtoprovideacom-mentaryonriskmanagement,myfirstquestionis,‘Risktowhat?’.Determiningtheanswertothisquestionisnotalwaysassimpleasitsounds.Forexample,short-lyafter9/11,IinterviewedseniorofficialsfromtwentyCustomsadministrationswhohadbeentaskedwithimplementingarangeofsupplychainsecurityinitiatives.Indiscussingtherisksthattheseofficers




aidingthedeploymentofresourcesto-wardspotentiallyhigh-riskoperators.

ComparethispositiontothetraditionalCustomsauditwhichisintendedtoassessthedegreetowhichacompanyiscomply-ingwiththerelevantregulatoryrequire-mentsandnot,assomeassume,simplytodetecterrorsinacompany’sregulatorydealings.Theimportantpointhereisthatsuchanassessment,regardlessofthere-sult,assistsindeterminingwherefuturecomplianceresourcesshouldbedirected.Acorollarytothis is thatanauditor’sfindingofcomplianceisequallyasgooda‘result’asafindingofnon-compliance.Thisisoftenoverlooked,sinceafindingofnon-compliancegenerallybringswithit

atangiblerevenuereturntogovernmentwhereastheidentificationofacomplianttraderdoesnot.

Accept that political risks are a priority

Thehighestrisksfacinganyorganisation,includingCustomsadministrations,arepoliticalinnature.Failingtoeffectivelymanagetheseriskswillsignificantlyun-derminetheorganisation’scredibility.At

anationallevel,themitigationofpoliticalriskstranslatesintogovernmentprioritysettingwhichisreflectedinaneconomy’sfocusonparticularelementsofitsCus-tomschartersuchasrevenuecollection,peoplesmuggling,security,ortradefa-cilitation.Ifrequentlyseeadministrationsbeingcriticisedfordirectingtheireffortsandresourcestowardscertainactivitiesatthedirectexpenseofwhatothermem-bersoftheinternationalCustomscom-munityconsidermoreimportantCustomsfunctions.Thebottomlineisthat,inanyeconomy,themanagementofpoliticalriskswillalwaystakeprecedence.

Onemeansofmitigatingpoliticalriskswhichisoftenoverlooked,istosecurean

activeroleforCustomsinthegovernmentpolicy-makingprocess.Forexample,sooftenrevenuetargets–atermthatIab-hor–aresetintheabsenceofanyappar-entscientificrigour.Inmanycases,weseepoliticallyexpedienttargetsof‘xpercentabovelastyear’scollections’.ACustomsinputintotherevenueforecastingproc-esswillattheveryleasthelptoavoidaFinanceMinistryfait accompli whichwilldominatetheadministration’sfocusforthefollowingtwelvemonths.

Achieve congruence

Intervention by exceptionisatermwhichIfirstcoinedinthe80stodescribearegu-latorycompliancestrategythatisbasedontheprinciplesof riskmanagement.Itimpliesregulatoryinterventionwhenthereisalegitimateneedforit;interven-tionbasedonidentifiedrisk.Andwhilemany administrations now espouse apolicyofinterventionbyexception,thereisroutinelyalackofcongruencebetweenorganisational policy and operationalpractice.

IoncewatchedaparticularSouthEastAsianadministrationrituallyopeneachandeveryexpressconsignmentthathadarrivedearlierthatmorning.Ipointedtoapassingtruckthatwascarryingacon-tainerfromthenearbywharf,andaskedtheRegionalDirectorwhetherthesamelevelofCustomsscrutinywasappliedtoseacargo.Theanswerwasapredictable‘no’,butthereasonwasnotsopredict-able–‘riskmanagement’.Thisexplana-tioncommonlybeliesthetrueoperationalapproachofmanyadministrations,thatis,whatcanbeexaminedwillbeexam-ined,regardlessoftherisk.Furthermore,thenumberof ‘high risk transactions’tendstobedirectlyproportionaltotheresourcesavailabletoconducttheneces-saryexaminations.Forexample,thein-spectionrateofcargoshippedbyamajorforwarderincreasedsignificantlyduringtherecentglobaleconomiccrisis,andIwassomewhatbemusedtodiscoverthatthesamenumberofinspectionswasbe-ingconductedthroughoutthatperiodde-spitethefactthattheleveloftradehadplummeted.Idoubt,however,thatthetrader’sriskratinghadchangeddramati-callyduringthatperiod.

Unfortunately,suchastateofaffairsisnot uncommon. Administrations tendtogotogreatlengthstoshowtheyhaveintroducedariskmanagementpolicybutthereiscommonlyalackofcongruencebetweenthewrittenpolicyandwhathap-pensinpractice.Atopicalexampleisthecurrentdebateonhowbesttomitigatesecurityrisks.Considerthis–ifatrader


©CPB



According to the WCO Risk Management Guide, all organizations benefits from the application of a risk management strategy since this benefits organizational performance as a whole. Risk management in any organization consists of well-defined steps which, when taken in sequence, support better decision making by contributing to greater insight into risks and their impact.

ForCustomsadministrations,theadoptionofriskmanagementasanorganizationalphiloso-

phyisessentialsinceitprovidesquantifiableim-provementsintheeffectivenessandefficiencyoftheadministrationasawhole.Riskmanagementcanoperateinanyorganizationwithmanualorautomatedapplicationsrangingfromtacticaltostrategicapproaches.Itcanbeappliedtonearlyeverydecision-makingsituationalso.

IntheSouthAfricancontext,Customsriskman-agement–thesystematicapplicationofmanage-ment procedures and practices which provideCustomswiththenecessaryinformationtoad-dressmovementsorconsignmentswhichpresentarisk–hasbeenpartoftheoperationalapproachformanyyearsintheformofanenterprisewideBusinessIntelligenceUnit,andmorerecentlytheCustomsRiskManagementDivision(CRM)whosemainpurposeistheidentification,classification,disseminationandmitigationofcompliancerisk.

VariousCRMofficers(OperationalSpecialists:Risk)aredeployedtoeithertheCentralRiskUnit(CRU)basedinportsandofficesaroundthecoun-try,ortheNationalTargetingCentre(NTC)whichwasestablishedduring2009.

OfficersintheCRUareresponsiblemainlyforfo-cusingontacticalportandregionalspecificcom-plianceriskissuesandcases,inlinewithnationalstrategicparameters,andsupportportoperationsbyperforming,onadailybasis,riskidentification,analysisandproductdissemination/mitigation.

Managing risk in practise: South Africa shares her experience

27

demonstratesacommitmenttoglobalsupplychainsecuritybyachievingandmaintainingAEOstatus,doestherere-mainagenuinelyrisk-basedneedforthecargotobescanned,andforthetradertoprovideadvanceinformationtotheauthoritieswhograntedthatstatus?

Achieve internal congruence

Theissueofcongruencealsoextendstotheinternalmechanismsofanorganisa-tion.Againandagain,Iseethesituationwhereanofficerhascorrectlyappliedtherelevantpolicyonriskmanagement,onlytolaterdiscoveraproblemwiththeconsignmentortransactioninquestion.Theresult?Managerialdispleasureandtheallocationof‘blame’.Itisinevitablethatsomethingswillslipthroughthecracks–noteventhemosteffectiveriskmanagement system is fail-safe, andmanagersneedtorecogniseandacceptthisfactandsupporttheirstaffindeedaswellasinword.Itremindsmeofacertainpolitician’swarningtoanadministrationthatwasdebatingtheformalintroduc-tionofriskmanagement:‘Iwishyouluckbutyouwillbeheldaccountableifany-thinggoeswrong!’

Iwouldliketoleaveyouwiththispart-ingthought.Itisatruismthat,evenwiththebestsystemsandproceduresinplace,thingswillgowrongfromtimetotimeanditisthereforeincumbentonman-agerstofocusnotonlyonhowrisksaremanagedbutonhowthosewhomanagetherisksaresupported.

Professor David Wid-dowson is the CEO of the Centre for Customs and Excise Studies at the University of Canberra in Australia. He is also Editor-in-Chief of the World Customs Journal, and the President of the International Network of Customs Universities.


Officers must, on a

daily basis, collect

relevant data,

analyse, compare

and weigh this

data, then make

logical deductions

and derive findings

that will focus

efforts on high risk

or the highest risk

consignments.


28 WCO News – No 62 – June 201028

Themainrecipientsoftheserisk-relatedproductsaretheoperationalcargoteams,theenforcementteams(forexample,theCustomsBorderControlUnit),andPostClearanceAuditteams.

Inordertoperformtheirtasks,officersmust,onadailybasis,collectrelevantdata(andthisis collected from databaseswithin Customs or externalto Customs), analyse, com-pareandweighthisdata,thenmake logicaldeductionsandderive findings that will fo-cuseffortsonhighriskorthehighestriskconsignments.Anofficerthereforefollows,onadailybasis,thestepsofestab-lishingthecontext,identifyingtherisk,analysingtherisk,as-sessingandprioritisingtheriskandthenaddressingtherisk.

Ariskmanagementofficer isas such responsible for sup-porting operations throughmanagingriskand“fillingthegaps”wherethesemayoccur.Operationalstaffhavespecificskillsandmustbedirectedtofocusareaswheretheirskillscanbeoptimallyused,andthiscanonlybedoneiftheyknowwhichconsignmentshavebeenidentifiedaspotentiallybeingofhighrisk.Clearly,operationalstaffshouldnotspendtimeonperformingmethodologicalriskmanagementstepswhichareperformedbytheCRM.

However, it is essential to note that as risk is“owned”byOperations,themerefactthatriskmanagementofficersperformthedailymethodo-logicalstepsasindicated,doesnotdetractfromthefactthatCustomsofficersatalllevelsandinallareassupporttheriskprocessbyforexample,reportingonsuspiciousactivities,reportingthor-oughlyandwithinrequiredtimeframesoninci-dentsandinterventions,supplyfeedbackonrisksthatweretobetested,etc.Thepointofpivotalim-portanceisthatriskmanagementofficersdonotowntheprocessofrisk;riskmanagementmerelyfulfilstheroleofatechnicalorsupportexperts.

StaffintheNationalTargetingCentreareresponsi-bleforidentifying,evaluating,classifyingandtrack-ingcomplianceriskandmustprescribeoperationalresponsesinrelationtoharmfulgoodsaswellasactivitiesofindividualsandotherentitiesandpar-ticipantsinthesupplychainresponsibleformove-mentsofgoodsacrossSouthAfrica’sbordersandthroughitsterritorywhereaseriouscommercialand/orsecuritythreatataninternational,regionaland/ornationallevelisposed.TheCustomsNTCisthereforeresponsibleforidentifyingandinter-pretingtheinternational,regionalandnationaleconomicandsecurityenvironment,toalignitsfocusaccordingtothreatsmanifestedineachandtoadviseontheimplementationofmeasuresinordertomitigatethreatsinadvanceinasfarasimported;exportedortransitgoodsareconcerned.

TheNTCaimstoensurethatthefollowingaremadearealityduringthe2010/11financialyear:thepre-loadingoftargetingofgoods,peopleandconveyanc-es(“Tier1”targetingbasedonadvanceinformation);thedevelopmentandmaintenanceofthenationaldefaultweightsets/profilesbasedondifferentriskandthreatassessments;tosupportport-leveltar-getingandpre-selectionhubs(Note:Preselectionhubsmaybedevelopedbasedonmodalitiesandaredependentonadvancedelectronicinformation);themaintenanceofasystemofalerts;thedevelopmentandmaintenanceofnationalseizureandoffenceda-tabases;andtocomputeriskandthreatlevels.

Riskmanagementstaffmustbeinquisitive,under-standthebusinessofCustoms,andapplysystem-aticallytheknowledgetheyhaveinordertoderiveempiricalresultsthatwillguideoperationalefforts.Fromtheaboveexamples,itisevidentthatthefieldofriskmanagementisessentialinaresourcechallengedenvironment,notonlyfromarevenueperspectivebutalsofromasecurityperspective,andallCustomsadministrationsshouldadoptriskmanagementprinciplesandestablishariskman-agementcapacityinordertoensurefocusedandcosteffectiveoperations.

More informationwww.sars.gov.za

The field of risk management is essential

in a resource challenged environment,

not only from a revenue perspective but

also from a security perspective.

©SARS


29

How to modernize risk analysis and the selectivity of Customs controls in developing countries?

by Anne-Marie Geourjon, Grégoire Rota Graziosi and Bertrand Laporte


TheWCO’s revisedKyotoConvention (RKC)recommendsthatphysicalcontrolsbelimited.

ThisisalsooneoftheproposalsbeingdiscussedaspartoftheWTOnegotiationsontradefacilitation.

Also,thepromotionofethicalconductisanim-portantaspectofthereformsbeingundertakenindevelopingcountriesinordertomodernizetheirCustomsservices,andlimitationofcontrolsises-sentialinordertoaddresstherisksofcollusionbetweenofficerandimporter,whicharegreatestpriortotheremovalofgoods.Thismeansthattherecanbenoalternativetothetargetingandselectivityofcontrols.Howeversomereluctancehasbeenencountered:onthepartofstaff,whoaredisinclinedtochangetheirworkingmethodsandfearthattheywilllosebenefits;andonthepartofauthorities,concernedabouttheirCustomsrevenuesand,therefore,worriedbytheideaofre-leasinggoodswithoutphysicalinspection,astheyrepresent“security”forthedutiesandtaxespay-able.Thisiswhyitisnecessarytoidentifyoptimalconditionsfortargetingoperationsforcontrols,sothatthereisnoriskoflossofrevenue.

Theselectivityofcontrolsinvolvesidentifyingthemosthighriskoperationsanddirectingthedecla-rationsintodifferentcontrolchannelsasappropri-ate.Targetingisperformedeitherusingtraditionalmethods,orusingmoreinnovativemethodswhichemploymodernriskanalysistools.

Inthetraditionalmethods,targetingiscarriedoutonarandombasisand/orusingriskcriteria.Theidentificationoftheriskcriteriaiscarriedout“manually”andreliesontheCustomsofficer’sexperienceand judgement,basedonavailableinformationontransactionhistories,orbasedonintelligence.Thetargetingcriteria,validatedbyaCommitteeperhaps,arefactoredintotheITsystem’sselectivitymoduleandare,intheory,re-viewedperiodically.Therearetwodrawbackstothesemethods:theyrelyonhumaninterventionandjudgement,whichconstitutesariskinitself;andtheyrequireagreatdealofeffort inordertoadapt,inrealtime,tonewformsofCustomsfraud.Hencetheattractionofeliminatinghumaninterventiontothegreatestextentpossibleby

usingmoresophisticatedautomaticriskanalysismethods.

Theideaistoadoptanapproachidenticaltothatemployedinmanysectors(banking,insurance,nuclearenergy)foranalysingrisk,basedontheuseofscientificmethods,andadaptittotheCus-tomscontext.Thisistheapproachtakenbyprivatefirmsinparticularthatmarketriskanalysissystems(Smartlane,Profiler,SIAR,WebFountain,etc)toCustomsadministrations.

Thetargetingsystemisbasedonfourdifferentapproaches:thefirstconsistsofcheckinganyop-erationthatinvolvesunknownqualities(newim-porter,forexample);thesecondisbasedontheinspectionoftheimportdeclarationandthestatis-ticalstudyoftheoverallseriesandpasthistoryoffraudinordertoassesstherisk;thethirdinvolvesthesystematiccontrolofanoperationonthebasisoffactorslinkedtocertaincharacteristics;andthefourthconsistsofapurelyrandomselection,usedinparticulartoregulatetherateofcontrols.Itisthesecondapproachwhichformstheheartofthesystemandgivesitits“rational”(non-subjective)character,enablingtheentiretargetingsystemtobeautomated.

Withthisapproach,eachnewclearanceopera-tionhasafraudprobability(overallscore).Forthispurpose,fraudcriteria(forexample,importer,product,origin,etc)areinitiallyidentifiedusinghistoricaldata;next,weightingcoefficientswhichreflecttherelativeimportanceofeachcriterionareappliedtothem.Therelevantfraudcriteriaandtheirweightingsaredeterminedusingascientificmethod,forexamplebyeconometricanalysis.Anynewclearanceoperationwillthenbegivenanover-allscorewhichevaluatestheriskoffraud(thepre-dictedprobabilityoffraud)withreferencetothecharacteristicsoftheoperation(thefraudcriteria).Thisscoreenablesthedeclarationtobedirectedautomaticallyintooneofthecontrolchannels.Aproportionofthedeclarationsdirectedtothegreenchannelaresubsequentlyredirectedunderthefourthapproach.Approachesoneandthreecanbeusedtodirectoperationsstraighttotheredchannel.Theresultsofcontrolsarefedin,continu-

The selectivity of

controls involves

identifying the

most high risk

operations and

directing the

declarations into

different control

channels

30 WCO News – No 62 – June 2010OMD actualités – No 62 – Juin 2010

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ouslyenhancingthedatahistory,andthisenablesthefraudcriteriaandtheirweightingcoefficientstobekeptup-to-date.

Thisapproachhasbeentestedbytwocountries1inAfrica.CountryAemploystheservicesofapre-inspectioncompany,whereascountryBhasneverusedsuchservices,butrecordsalllitigationcasesinitsITsystem.IntuitivelycountryB’smethodshouldbelesseffective,becausethequalityoftheavailableinformationislower.Thepredictivepowerofthemethodisevaluatedbyrecalculating,post-facto,thetotalscorewhichwouldhavebeenassignedtoeachoperation,andlookingatwhethertheoperationwasinfactfraudulent.IncountryA,bycontrollingjust25%ofoperations,themethodpicksup93%oftheadjustmentscarriedoutbythepre-inspectioncompany.IncountryB,bycon-trolling2.3%ofoperations,themethodpicksup83.8%ofoperationsgivingrisetolitigation.Usingaprivatecompanyto“guarantee”thatdatawillbeof“good”qualityisnotessentialwhendevelopingasystemofthiskind.

Assumingthatthereisasignificantrelationshipbe-tweenthenumberofcasesoffraudidentifiedandtheamountexpectedtobederivedfromadjust-ments,thegoodpredictivepowerofthemethodensuresthatrevenueswillbestableintheshortterm.Inthemediumterm,thescientificandau-tomaticnatureofthemethod,byreducingthein-tegrityrisk(corruptbehaviour)aswellasenablingthequalityofcontrolstobeimprovedwillhaveapositiveimpactonrevenue.Theimpactontradefacilitationisimmediate!

Whattechnicalcapabilitiesarerequiredtoputthiskindofsystemintooperation?Thescientificanaly-sisofhistoricaldatacallsforpost-universitylevelskillsindataminingandstatisticaldecisiontheory.Thesystem,althoughautomated,doesnotrequire“heavy-duty”programming,butanintegrated,openclearancesystem.Post-clearancecontrolsandinvestigativeandintelligenceactivitiesarenecessaryinordertohuntoutnewfraudtrendsandfeedthesystemmorerapidlythanwouldbethecasewiththepurelyrandomselectionofop-erationstobecontrolled.

Leving aside the specific skills of data miningandstatisticaldecisiontheory,Customshastheknow-howrequired.Onequestionremains–can

1Geourjon,A-M.andB.Laporte(2005):“Riskmanagementfortargetingcus-tomscontrolsindevelopingcountries:ariskyventureforrevenueperform-ance?”,Public Administration and Development,25,p.105-113;Geourjon,A-M.andB.Laporte(2004):“L’analysederisquepourciblerlescontrôlesdouaniersdanslespaysendéveloppement:uneaventurerisquéepourlesrecettes?”,Politique et Management Public, Vol.22,n°4, p.96-109.

theadministration’scom-mitmenttothisprojectcreatethesynergywhichisvitaltoitssuccess,par-ticularlyintermsofmo-bilizingthenecessaryre-sourcesandestablishingappropriateinstitutionalstructures?

Recoursetoprivatesec-tor services can be en-visagedtohelpCustomsusesystemsofthiskindwhich operate on thebasis of Customs data;thiscouldinvolveeithersoftwareacquisitionandstart-up (design phaseonly),oranoutsourcingcontract(designandim-plementation).However,recent work2 based oninformation theory hashighlighted the incom-patibilityofassociatingwithinthesamecontract,i.e.,withthesameprivatecompany,an inspectionprogrammeforimportsandaCustomsmoderni-zationobjective(includingriskanalysis).Thisisbe-causeacompanywhichisbeingpaidbyacountrytocarryoutinspections,whetherpre-shipmentoratdestination,hasnointerestinsucceedingwiththesecondobjectiveofCustomsmodernization,therebyputtinganendtoahighlylucrativeinspec-tionprogramme.Thesuccessofthesecontractswilldependuponcompliancewithcertainrules3oncompatibilityofthecontractobjectives,modesofpayment,informationflows4,andevencontractingparties(MinistryofFinanceorRevenueAuthor-ityforaninspectionprogramme,Customsforthemodernizationobjective).

More informationCERDI-CNRS, University of Auvergnewww.u-clermont1.fr

2Dequiedt,V.,Geourjon,A.-M.andG.Rota-Graziosi,2009,“LesProgrammesdeVérificationdesImportations(PVI)àlalumièredelathéoriedel’agence”,Afrique Contemporaine,230(2),151-166;Dequiedt,V.,Geourjon,A.-M.andG.Rota-Graziosi,2009,“OntheDesignofPreshipmentInspectionPro-grams”,EtudesetDocumentsduCERDIN°10.

3Ineconomics,therecentbranchof“contracttheory”aimstoidentifytheoptimalcontractforthePrincipal,i.e.,thecontractingpublicauthority.

4Inthisconnection,itisnotdesirableforcontractsrelatingtoimportinspectionprogrammestoincludethetaskofprovidingCustomswiththeriskanalysisresultstobeusedforselectivitypurposes.


32

Between2006and2009,the Inter-nationalOrganizationforMigration

(IOM)ledanECfundedprojecttoassistthecountryinthedesignandimplemen-tationofanationalstrategyandactionplanonintegratedbordermanagement.Risk analysis formed one of the com-ponents of the project, reflecting theauthorities’ awareness of the frictionbetweenontheonehand,thenecessitytoestablisheffectivebordercontrolandontheotherhand,thelimitedphysicalmeansattherelevantagencies’disposal.

The Balkans region is, and always hasbeen,animportanttransitpointforgoodsandpeopletoandfromtheEU.Addition-ally,BosniaandHerzegovinaisincreas-inglyasourceanddestinationcountryforcross-bordertrafficaswell.Thesheervol-umeoftrafficmakesitpracticallyimpos-sibletocarryout100%checks.However,theprocessofdeterminingwhattocheckandwhattoskipwasinmanyrespectsstillinitsinfancy.

Fromtheoutsetoftheprojecttherewasaclearconsensusamongthestakeholders(IndirectTaxationAuthority,BorderPo-lice,StateVeterinaryOffice,StatePlantHealthProtectionAgency,andtheServiceforForeigners’Affairs)thatinter-agencycooperationwouldaddsignificantvaluetotheprocessofriskanalysis.However,theformofthisinteragencycooperationwaslesswellunderstood.TheMinistryofSecurityandtheheadsofthebordermanagement agencies also graduallygrewaccustomedtothethoughtofgoingbeyondamereexchangeofliaisonoffic-ers.Theconveningofsenior-levelstudyvisitstoRotterdamharbor,totheWCO,

andtoHeathrow’sJointBorderOperationCenterassistedthedevelopmentofbothasharedunderstandingandthenecessaryconceptualbuy-inforthe ideaofcen-tralizationandthepartialamalgamationoftheanalyticalfunctionsofthebordermanagementagenciesintoasingleJointAnalysisCentre(JAC).TheagenciesthenestablishedtheJAC,throughan inter-agencyMOU,asadepartmentwithintheBorderPolice,butstaffedbyallagenciesonasecondmentbasis.

The objective of the JAC is to supplyparticipatingagencieswithactionableoperationallevelinformationaswellaswithstrategiclevelinformationongen-eraltrendsanddevelopmentsincross-bordertraffic.TheworkplanoftheJACisagreedperiodicallybetweenthepartici-patingbordermanagementagencies.TheagenciesprovidetheJACwithanupdatedreplicaoftheircorporatedatathrougheach agency’s Local Analysis Center(LAC)datawarehouse.Forexample,in-formationfromasingleagency’svariousinternaldatabasesisfirstfunneledtoitsownLACwhere it isprocessedforthe


organization’sownanalyticalpurposes.Itisthen(partiallyorwholly)replicatedforanalysisofpossibleinter-agencyrela-tionsortrendsindatabytheJAC.Thisrequiredanextensiveandongoingprocessofstandardizationandnormalizationofdatainordertobeabletoestablishlinksbetween fields from the databases ofthedifferentorganizations,orevenfromwithinoneorganization.

Confidentiality and privacy of data isprotectedbysynchronizedanonymiza-tionoffieldsholdingpersonallyidentifi-ableinformation,inadditiontophysical,proceduralandorganizationalmeasures.TheanalystsattheJACarethereforeatnopointpresentedwithnames,addressesortelephonenumbersofpersonsofin-terest,butmerelywiththefactthatthecodesrepresentingthenamesmatchbe-tweendifferentdatabases.Ifthatlinkisdeemedtobeofoperationalsignificance,thenauthorizedinvestigatorsmayrequestthereleaseofthecorrespondingpersonalinformationfromtherelevantagencies.Thismayresultinanupdatedentryonawatchlistorevenaproposalforaninter-

Bosnia and Herzegovina: joint risk analysis on cross-border traffic

by Richard Ots

The application of risk management processes to the cross-border movement of goods and people in Bosnia and Herzegovina has gone through some remarkable changes over recent years. From a fragmented approach on the fringes of some border management agencies’ operational processes, it is now well on its way to becoming an integral element in the country’s comprehensive approach to border management.


Some of the staff from the Joint Analysis Centre

Mexico Customs reports its progress on applying risk analysis to core processes

AsaCustomsadministration,oneofMexico’smainprioritiesistocontrib-

utetothestrengtheningofnationalsecu-ritybycombatingcriminalorganizations.This,inturn,reflectsamajorobjectiveofthe2007-2012NationalDevelopmentPlan:tocrippletheillicitprofitsoftheseorganizations.

Inrecentyears,theMexicanTaxAdminis-trationServiceandMexicoCustomshavededicatedconsiderablefinancialandhu-manresourcestoenhancingtheirpro-grammestodetectillicitgoodsatportsofentrythroughariskanalysisandintel-ligencestrategy.

A valuable source to generate intelli-genceistheadvanceinformationMexicoCustomsreceivesonincomingmaritimeshipments.Furthermore,Mexicoiscom-mittedtotheimplementationofPillar1oftheWCOSAFEFrameworkofStandards,whichentailstheuseofadvanceinfor-mationandriskmanagementsystemsbyWCOMembers.

Agoodexampleoftheeffectiveuseofriskanalysis,basedonadvanceinformationtotargetpiratedandcounterfeitgoods,istherecentseizuresthatwerecarriedoutatthePortsofLazaroCardenas,Manza-nillo,Ensenada,VeracruzandAltamirain2009;inthesecases,theportswerealertedtothearrivalofsuspiciousship-mentsbytheintelligenceunitatCustomsheadquarters.


33

Alsoin2009,in94of504targetedcon-tainers,riskwasconfirmedandthegoodsseized. They contained approximately1,053tonsofmerchandise,representingmorethan50%ofallpiratedgoodsseizedbyMexicoCustoms(33millionpiratedunits).Theseunprecedentedseizuresin2009werethedirectresultoftheuseofCustomsintelligenceandtheapplicationofriskanalysisaswellastheactionstakenbytheMexicangovernment.

TheTaxAdministrationServiceandMex-icoCustomsarepermanentlycommittedtoenhancingtheirprocedures,infrastruc-tureandtechnologyinordertoefficientlyfightillicittrade.

More informationwww.sat.gob.mx

Counterfeit brands in electronic goods (Duracell, Motorola, Sony, Sony Ericsson)

Counterfeit brands in apparel and accessories (Lacoste, Puma, Abercrombie, Tous, Mont Blanc, Hugo Boss)

agencyoperation.Animportantpartoftheworkoftheanalystsdoesnotrequirethislevelofdetailthough.Thecreationandupdateofriskprofilesforuseatbordercrossingpointsdoesnotentailactualnameordetailedaddressinformation.Similarly,fortheproduc-tionofoverviewsofgeneraltrendsanddevelopmentsthecodedinformationprovidesasufficientlevelofdetail.

TheJACisequippedwithindustrystand-ardsoftwareforriskanalysisinlawen-forcementenvironments,inadditiontosophisticatedsoftwarefordatamining.Staffhavecompletedadvancedtrainingontheuseofthesoftwareaswellasonriskanalysis,strategicintelligence,ap-pliedstatistics,thecollectionanduseofopensourceinformation,andonreport-ingandpresentation.

With thecreationof the JACand itscontinued development, Bosnia andHerzegovinaismakingsignificantstepstorationalizetheallocationofitsbor-dermanagementresources.Theagen-ciescontinuetoincreasethequalityandquantityofdataflowingtoitsanalyticalstructuresbyimprovingthecaptureofdataattheborder,digitizingexistingarchivesandfurtherstandardizingandnormalizingthestructureoftheirdata-bases.AsMr.ErminPesto,HeadoftheSectorforBorderandGeneralSecurityattheMinistryofSecuritysaid,“TheJACallowsustobettertargetourefforts,in-creasingthesuccessrateofcheckswhilefacilitatingthelegitimateflowofgoodsandpeopleacrossourborders.”

More informationRichard OtsInternational Organization for Migration [email protected]



Two Deputy Directors have recently been appointed

to the WCO Secretariat; Susanne Aigner in the

Compliance and Facilitation Directorate, and

Heike Barczyk in the Capacity Building Directorate.

WCO News conducted a speed interview with these

two new members of the management team.

Susanne Aigner:IstartedtoworkforcustomsbyaccidentasaftermyDoctorateinlaw,Icouldn’tfindajobinanareaIwouldreallyhaveenjoyedworkingin,likeworkingforoneoftheas-sociationsdefendingmigrants’rightsorpursuingdevelopingcountries’interests.TheAustrianMinistryofFinancewasatthattimesearchingforwomenwhospokeEnglishandFrench,inparticularforroleswithinthecustomsbranch.AsIdidnotwanttotakeupajobwithalawfirm,IdecidedthatIwouldworkforCustomsuntilIfoundsomethingelsemoretomylik-ing.ThefunnythingwasthatIlikedCustomsworkfromtheverybeginning.Aftertheobligatory3yearsoftrainingandeduca-tioninCustomsandtaxmatters,IwasaskedtoworkfortheMinistryofFinanceonInternationalmattersandFreeTradearrangements,amongotherontheGeneralSystemofPreferencesandUNCTAD. After several years as DeputyHeadofUnit,in1995ImovedtoBrusselstoworkfortheEUInstitutions,includingatDGTAXUD’s“US/CanadaDesk”whichinvolvedresponsibilityforthenegotiationoftheEC-USAgreementonCSI.In2005,TAXUDsetupaspecialsectordealingwithsecurity,whichIled,andwhichhadacentralroleindraftingthecustomssecuritylegislationandthedevelopmentoftheEUAuthorizedEco-nomicOperator(AEO).Duringthistime,IwasalsoresponsibleforthetechnicalnegotiationswiththirdcountrieslikeJapan,USandChinatowardsmutualrecognitionofAEOs,securitymeas-uresandcontrolresults.During2009,ImanagedtheUnitinchargeofRiskManagementandSecurityandwhilecontinuingtoworkonsecurity/AEO,IpersonallyfocusedalotontheECRiskManagementFrameworkandSystemandtheConvergenceofControlsactivitieswithintheEU.

Speed Interviews

Heike Barczyk:Well,inbrief:Myworklifestartedinthe90’s,whenIworkedfortheGermanForeignServiceforthreeyears(ofwhichIspentoneyearinSenegal).ThenIwentbacktouni-versity,studiedlaw,passedtwonationalLegalStateExamsandbecamealawyer.AftertwoyearsofworkmainlyonLabourandCommercialLaw,I“rediscovered”thePublicServiceandwenttotheCustomsCriminologicalOffice(ZKA)inCologne,Germany.ThereIworkedfirstasHeadoftheAnti-DrugsSectionandlaterasHeadoftheRegionalIntelligenceLiaisonOffice(RILO)forWesternEurope–myfirstdeeperexperiencewiththeWCO,bytheway.ThelastpostbeforemystarthereinBrusselswaswithintheGermanMinistryofFinanceinBonn,whereIwastheDeputyHeadoftheDivisiononInternationalCustomsCo-operation.

WCO News : What prompted you to apply for your new post ?

S. A.: Aftermorethan5years inone joband inparticularaftermorethan8yearsofworkingonsecuritymatters,Ifeltreadyforachange.WhenthejobattheWCOwaspublished,IthoughtthiswouldbeexactlywhatIwouldliketodoatthisstageofmycareer:moreinternationalthanmyEurope-an-focusedactivity;evenmorechallengingas Iwouldhavetocooperatewith176 in-steadof27memberadministrations;while

atthesametimenotsomethingcompletelyunknowntomeasIhadbeenworkingonthesamefileattheCommissionandasIwouldcontinuecooperatingwithmanyofthecolleaguesIknewfrompreviousroles.Thenewrolewouldhoweverhaveadifferentfocus,seeingthingsfromtheWCOangleandthusgiv-ingmearangeofnewchallengingopportunitiesandhopefullyabroaderperspective.IalsothinkthattheDDjobwillallowmetocontinuebuildinguponmyEUexperience,sharingthisexpe-

WCO News: Tell us about your career to date?

Susanne: My new role

would have a different

focus, seeing things from

the WCO angle and thus

giving me a range of new

challenging opportunities...

i n C O n V e R s A T i O n

Susanne Aigner (left) and Heike Barczyk (right)


riencewithotherswhileenhancingmyownunderstandingofMemberadministrationsandcustomspoliciesandproceduresotherthanthoseoftheEU.Ihavealwaysenjoyedworkingwithcolleaguesfromdifferentpartsoftheworld,jointlyseekingsolutionstocommonissuesandIamthereforedelightedtobeworkinginaDirectoratewithverymanydifferentnationalitiesfromalmostallcontinents.

H. B.:Ifelttheapplicationwouldbea“natural”stepforwardforme.Havingworkedintheinternationalareaforquiteawhile,butmoreorlessfromanationalperspective,IwantedtoexpandmypersonalexperienceandworkattheWCOonamoregloballevel.Inthiscontext,theCapacityBuildingareaisinmyviewoneofthemostchal-lengingtaskswithintheworkoftheWCOinservingMembers’needs.Moreover,fromthepastIknewthattheteamoftheCa-pacityBuildingDirectorateisaverygoodandhighlymotivatedone–whichwasob-viouslyabonus,too.

WCO News: What are your short-term objectives ?

S. A.: ThefirstthingIhavetodoistolearnallabouttheareasIamresponsibleforasDD;thisIwillhavetodoveryquicklyasIamalreadybeingsentonmissionduringtheveryfirstdaysofApril.ThesecondthingIwanttodoisbuildastrongrelationshipwithmyexcellentteam,todiscussandsetprioritiesandgoalsforthegroupandthenthroughmycollabo-rativeleadershipstyleworktoensuretheissuesthatimpactonthewholeoftheDirectorateareaddressedinatimely,joinedupandcoordinatedmannernowthatbothDeputyDirectorpostsarefilled.Therearemanycrosscuttingissues(likeCoordinatedBorderManagement,RiskManagementorGloballyNetworkedCustoms)thattouchuponfacilitationaswellascompliance/enforcement.EarlydiscussionssincemyarrivalshouldleaveyouinnodoubttheDirectorandthetwoDeputiesareunitedintheirwishtoensurethattheDirectorateworksasefficientlyandeffectivelyaspossibleandisenabledtomakeprogressonthesecrosscuttingissues.Fortherest,Iamsuretherearemanychallengeswaitingforme!

H. B.:IarrivedattheWCOsecretariatwhenwewerestillpre-paringthreeimportantmeetingsintheCapacityBuildingareascheduledforAprilthisyear.Itwouldhavebeenthefirstmeet-ingoftheC.B.Committeeever,themeetingoftheIntegritySub-CommitteeandthemeetingoftheRegionalOfficesonC.B.(ROCBs)andtheRegionalTrainingCenters(RTCs).Unfor-tunately,duetothevolcaniceruptioninIcelandandthestopofairtraffictoandfromNorthernEuropeatthattime,thesemeet-ingshadtobepostponedattheverylastmomenttoautumnthisyear.Obviously,workingonthepreparationsforthesemeetingsandmakingmypersonalcontributionthatthemotivationofthe

participantsofthemeetingsremainsasvividasdemonstratedthen,isofcourseoneofmyprimaryworkobjectives.Onamoreprivatebasis,IstillhavetosettleinhereinBrussels.AndIwouldliketoimprovemySpanishlanguageskillswhichhavenotreallybeentrainedsincemyschooltime…

WCO News : If you had to change career, what job would you choose ?

S. A.: IfIhadtochangecareerotherthanbuildinguponmyexpe-riencegainedsofar(andthusremainingeitherintheCustomsortradearea),Iwouldliketodosomethingtotallydifferent.During

mystudies,Iusedtoworkinanartgal-leryandalsofororganizersofconcertsofcontemporaryclassicalmusic.Iorganizedexhibitionsandconcertsandalsoselectedartistsforexhibitions/concertsonspecificthemesaspartofajuryorascurator.Ifmoneydidn’tmatteratall,Iwouldtrytodosomethingsimilarandorganiseexhibi-tionsandconcerts,inparticularforyoungartistswhoareoftenexcellentbutarenotgivenanyopportunitytoshowtheirwork.WhenIwasyoungerIwantedtobeonthestageintheatre;Itrieditandseemedto

havesometalent.IamhoweverhappythatIneverpursuedthisanyfurtherandthatallIdonowadaysisenjoyperformancesbyotheractors.Anyway,don’tweallacttoacertainextentwhenwechairmeetingsandnegotiateagreements?

H. B.:Amongfriends,wehavefromtimetotimeaskedourselveswhatwewouldhavelikedtobecomeifwehadnottakenthecareerpathwehavetaken.OneofmyfavouriteanswersisthatIcouldhavebecomea–hopefullysuccessful–archeologist…Inreality,ifIhadtochangemycareerrightnow-awayfromCustoms,theinternationalareaandthePublicService,IthinkIwouldmostprobablybecomealawyeragain.

O. A.: And one final thought ….

S. A.: IamveryhappythatIamworkingasDDEnforcementatWCO;forthetimebeingIenjoyeverydayandthinkthatIcanactivelycontributetotheorganization’sworkandefficiency.Ihopeitstayslikethisandthatmystaffandtheorganizationmorewidelyseeitinasimilarlight!

H. B.:Iammorethanhappythatthehypotheticalquestionbe-foredoesnotdescribemypresentsituation…,butthatrightnowIcanreallylookforwardtosomeexcitingyearsandworktocomeintheWCO!


Heike: Having worked in the

international area but more or

less from a national perspective,

I wanted to expand my personal

experience and work on a more

global level..

i n C O n V e R s A T i O n


The Brazilian Customs administra-tion (Receita Federal do Brasil)

has announced the establishment of new detector dog centres in six impor-tant Customs units. The use of detec-tor dogs will align the administration with global best practices on combat-ing illicit acts related to foreign trade operations, in particular the traffic in illegal drugs and unauthorized posses-sion of currency.

Toensurethesuccessofthetrainingpro-gramme,instructorshavetoselectdogsthatareatleast18monthsoldandwhodisplaydrive,goodphysicalresistanceandlotsofenergy.Onceselected,theanimalswillbeevaluatedperiodicallytofullytesttheirability.Uponreachingtheageofseven,thedogswillberetiredfromservice.Thosewhodemonstrateexcellentnaturalskillswhenperform-

ingtheir“duties”willbesingledoutforbreedingpurposes.

UsingsnifferdogshasprovedsuccessfulinBrazil.Majorseizuresinthelasttwoyearsincludetheseizureof630kgofcocaineatthePortofImbitubain2008,300kgofdrugsinVictoriaandRiodeJaneiroin2009,and1.5tonsofcocaineboundforEuropeatthePortofParanaguá.InthestateofParanáalone42kgofcrack,3.8tonsofcocaine,and3tonsofmarijuana

Brazil sets up new detector dog centres

offoreignoriginwereseizedin2009byCustomsstaff.


O U R M e M B e R s W O R l D

©BrazilianCustoms

©BrazilianCustoms

©BrazilianCustoms


Continuingitsmodernizationefforts,theAlgerianCustomsadministration

hasintroducedanewfacilitationmecha-nism granted to economic operators,designedtoencourageinvestmentandpromoteeconomicactivity.This isbe-ingdoneinaccordancewiththeRevisedKyotoConvention,whichhasbeenratifiedbyAlgeria.

Topromotethisnewprocedureandtoperfectthetextoftheimplementingleg-islation,on4March2010AlgerianCus-tomsorganizeda “Customs-Business”meetinginAlgiersattheHeadquartersofALGEX(Algerianexternaltradepromo-tionagencyoverseenbytheTradeMinis-try).Inadditiontoexternalcontributors,this meeting brought together seniorCustomsofficials,managersofcompaniesinvolvedinOPTIMEXPORT(aprogrammedesignedtobuildtheexportcapacitiesofAlgeriansmallandmediumbusinesses),employersorganizationsandbusinesses,andpartnersofALGEXandCACI(AlgerianChamberofCommerceandIndustry).

FollowingspeechesbyALGEXDirectorGeneralMohammedBennini,TradeMin-isterElHachemiDjaâboub,andDirectorGeneralofCustomsMohamedAbdouBouderbala,a“Customs-ALGEX-CACI”Agreementwassigned.Itsaimistopro-moteexports,apartfromhydrocarbons,andtoestablishalastingpartnershipsoastoguaranteethesuccessoftheAEOstatus.

Themeetingwasmarkedbymanyinter-estingcontributionscoveringthenewAEOstatusaslaiddownintheAlgerianCustomsCode,theproblemofcommuni-cationinbusinesslife,AEOstatusonthebasisofFrenchandthewiderEuropeanexperience,andtheprioritiesoftheOPTI-MEXPORTproject,aswellastestimoniesfromtwoAlgerianentrepreneursontheirrelationswithCustoms.TheSecretariatmade a presentation with the theme“Modernvaluesattheserviceofadynam-icandefficientCustoms-Businesspart-nership”.Onthefringesoftheplenary,a

workshopcomposedofCustomsofficialsandrepresentativesofthebusinessworlddebatedissueslinkedtothelaunchofthisnewapproachtobusinesses.

Participantsformulatedrecommenda-tionsdesignedtoallowCustomsanditspartnerstodevelopandstrengthenthispartnershipthroughconcretemeasures.Theybelieved inparticularthat itwasnecessary to establish the “Customs-

Algerian Customs: the value of modernization to export promotion

ALGEX-CACI”Agreementat regional level, bring-ingtogetherallconcernedstakeholders,tostrengthencommunication betweenCustoms and business atthenationaland regionallevels,tofacilitateaccessto informationandtoof-ficial documents, and fi-nallytotakeaccountoftheconcernsofstakeholdersinordertoachievesolutionswhichwereadvantageoustoall sidesandrespectedtheinterestsofall.

T he Customs- Businesspartnershipestablishedatthismeetingwilltranslateintotheestablishmentofaconsultationbodyrespon-sible for agreeing on thetermsoftheapplicationfor

AEOstatusandtheawardcriteria.Eve-ryoneexpressedtheirsatisfactionwiththemeasurestakenbyCustomsastheyfallwithinthescopeof itsmoderniza-tionstrategyanddemonstrateAlgerianCustoms’evolutiontowardsaservice-orientedorganizationdeliveringbenefitstoeconomicoperators.

More informationwww.douane.gov.dz


©BrazilianCustoms

©BrazilianCustoms


APublicRelationsUnithasbeenes-tablishedtoserveasaSecretariatfortheCPPMinitsdailyoperations.TheCPPMconsistsoftwohierarchicallev-els:aManagementBoardandthreeTechnical Working Groups. Theseworkinggroupsarecharacterizedbytypesof investmentsand industrysectors:theCustomsExport-Orient-edGarmentIndustryWorkingGroup;theCustomsExport-OrientedNon-GarmentIndustryWorkingGroup;andtheCustomsDomesticMarket-OrientedBusinessWorkingGroup.

AlthoughtheCambodiaDevelop-mentCouncil(CDC)organizedtheGovernment-PrivateSectorForum(GPSF)withfruitfuloutcomesun-dertheleadershipofSamdechAkkaMoha Sena Padei Techo Hun Sen(the PrimeMinisteroftheKingdomofCambodia),astherewasnofor-mal mechanism in the past someCustoms-relatedissuesidentifiedintheForumhadnotbeenconsultedorsolvedefficientlyatthetechni-cal level before being brought totheGPSF.

TheGeneralDepartmentofCustomsand Excise expects that this new

mechanismwilldealmoreefficientlywithmanyCustoms-relatedissuesandmis-understandings,especiallywithregardstocargoclearanceprocedures,informalcostsandunnecessarydelays.


On International Customs Day inPhnomPenh,theCustoms-Private

SectorPartnershipMechanism(CPPM)wasestablishedforthefirsttimeinCam-bodia’shistorywiththeapprovaloftheRoyalGovernmentofCambodia.Theof-ficiallaunchwaspresidedoverbyH.E.Dr.PenSiman,DelegateoftheRoyalGovern-mentofCambodia,DirectorGeneralofCustomsandExciseandalsoChairpersonoftheCPPM.

This historical event was attended bytheManagementBoardoftheGeneralDepartmentofCustomsandExciseandrepresentativesoftheprivatesectorin-cludingtheChairpersonsoftheCambo-diaChamberofCommerce,theGarmentManufacturingAssociationofCambodia,theSmallandMediumEnterpriseAssocia-tion,thedeveloperandinvestorsoftheSpecialEconomicZone, theTransportAssociation,theFreightForwarderAsso-ciation,somelargetaxpayers,andhighcompliancetraders.

ThemainpurposeoftheCPPMistoraiseawarenessamongallstakeholders,toac-celeratebettercooperation,andtoensureefficienciesintheimplementationoftheGovernment’stradefacilitationpolicyandalsothepolicyoftheWCO,especiallytheWCOSAFEFrameworkofStandards.CPPM’sobjectivesinclude:• Building trust, mutual understand-

ing, and cooperation between Cus-toms and the private sector.

• Promoting fiscal morality and trade facilitation in order to enhance com-pliance with laws and regulations.

• Ensuring that all Customs-related issues are consulted or solved at the CPPM before they are brought to other mechanisms, such as the inter-government body or the Gov-ernment-Private Sector Forum.

• Promoting private sector participa-tion, to the greatest possible extent, in the process of solving all Cus-toms-related issues.

TheunderlyingideaistoenhancetheCus-toms-privatesectorpartnership,whichwillpromoteapolicyofopenness,andencouragetheexchangeofideasbetweenCustomsadministrationsandprivatesec-torstakeholders inordertoefficientlyfacilitateinternationaltrade,andensureglobalsafetyandsecurity.

Cambodia’s Customs-private sector partnership mechanism

Question-Answers session

The Customs Management Board and private sector representatives

Official launch

Networking



Malaysia’s “Megaport Initiative”

SinceNovember2009,the“MegaportInitiative”toscreencargocontainers

todeter,detectandinterdictillicittraf-fickinginnuclearandotherradioactivematerialshasbeenoperationalatKlangPortinMalaysia.Theagreementtoim-plementthisInitiativewassignedon27February 2008 and prior to the com-missioning,16seniorCustomsofficersreceivedMegaportInitiativetraininginWashingtonDCinJan2009.

TheinitiativeisaprogrammeoftheU.S.DepartmentofEnergy’s(DOE)NationalNuclearSecurityAdministration(NNSA).ItisakeycomponentoftheSecondLineofDefense(SLD)programmeundertakentopreventtheproliferationofnuclearma-terialsfollowingthecollapseoftheSovietUnionin1991andthesubsequentendoftheColdWar.

ThroughtheMegaport Initiative,DOEworkscollaborativelywithforeigngov-ernments to equip selected sea portswithradiationdetectionequipment.TheinstallationofequipmentandtrainingofthehostcountrypersonnelisprovidedbyDOE.Aftercommissioning,theequip-mentishandedovertothehostgovern-mentandtheprogrammeisfullyoperatedbypersonnelofthehostcountry.

Allcontainers–whetherforimport,ex-portortransshipment–arescannedusing

theRadiationPortalMonitor(RPM)inte-gratedwithOpticalCharacterRecognition(OCR)systems(toidentifythecontainernumber).ASecondaryInspectionStationissetupateachterminaltocarryoutamorethoroughinspectionusingAdvanceSpectroscopicPortals(ASP)andhandheldradioactiveisotopeidentificationdevicesandotherhandheldequipment.ACentralAlarmStation(CAS)servesasthecontrolandcommunicationcentre.

ImplementationoftheMegaportsInitia-tivewillenhancetheTerminalOperator’scompliancewiththeInternationalShipandPortFacilitySecurity(ISPS)CodeandmakePortKlangasaferport,whichiscrucialinturningitintoaregionalhub.

Inthefirstthreemonthssincethecom-missioningandhandingoveroftheequip-ment in Malaysia, a total of 849,599containerswerescreenedbyaradiationportalmonitorlocatedinstrategicareasintheportand13,118containerstriggeredprimaryinspectionalarms.However,sub-sequentevaluationsrevealedtheabsenceofnuclearmaterialsotherthannaturallyoccuringradioactivematerials.

TheMegaportInitiativewasestablishedin2003bytheUS;atpresent19portsarealreadyoperational,25portsareintheimplementationphase,andover25portsarependingfornegotiation.

More informationRazif [email protected]


©MalaysiaCustoms

©MalaysiaCustoms

©MalaysiaCustoms©MalaysiaCustoms


l A V i e D e s M e M B R e s

Centre for Customs and Excise Studies

University of CanberraAustralia

Knowledge Beyond Borders

WCO Accredited Courses

Master of International Customs Law and Administration•Master of Customs Administration•Graduate Diploma in International Customs Law and Administration•GraduateCertificateinInternationalCustomsLawandAdministration•GraduateDiplomainExciseStudies•GraduateCertificateinExciseStudies•

[email protected]

Australian Government Registered Higher Education provider # 00212K

Full time and part time enrolments now being acceptedStudy online or on campus

Research•Consultancy•Vocational Programs•Postgraduate Programs•


Z O O M

Colombia’s Directorate of National Tax and Customs

TheDirectorateofNationalTaxandCustoms(DIAN) inColombia isre-

sponsibleforprovidingacomplianceandfacilitation service vis-à-vis economicoperatorsinorderfortax,Customsandexchange-ratesystemrulestobemet.DIANaimstocollectalltaxes,expediteforeigntradeoperations,andencouragefaircompetition.

Transforming the organization

TheDIANmanagementteam,whichwasappointedatthestartofthefirstterminofficeofÁlvaroUribe,thePresidentoftheRepublic,observedacutestructuralprob-lemsintheorganization.Theseproblemswerecreatinginsurmountabledifficultieswithrespecttotheachievementoftheinstitution’smission.

Anauditoftheorganizationwascarriedout,makingitpossibletostartonaco-herentsolutiontotackletheproblems.Roadmapsweredrawnuptoachieveex-cellenceintermsofoperation,tomaketheorganizationmoreservice-oriented,toconsolidateautonomyandlegitimacy,andtocontributetothecountry’scom-petitiveness.Inaddition,thefollowingstrategicactionswereidentified:developandimplementanewmanagementmod-el;restructuretheorganization;promotethelegalreformsrequired,andeffectivelymanageconditions.

A new management model

DIANfounded itsmanagementmodel–theSingleModelforRevenue,ServiceandAutomatedControl(ModeloÚnicode

Ingresos,ServicioyControlAutomatizado–MUISCA)–onthebasisofconcerted,coordinatedandorderlymanagementofprocesses,peopleandtechnology.Thesepillarsarefundamentaltoitsmanage-ment,aswellascriticalanddecisivefac-tors in itsefficiencyandeffectivenessand,consequently,initsproperperform-anceofitsrolewithintheState.

MUISCA is based on three strategicprincipleswhichunderpinitandlenditstrength:integration,unity,viabilityandmagnitude.Itspurposebeingtopromotetheadoptionofbestpracticeatalllevelsintheorganization,forexample:• Coordinatetheorganization’splanning

andoperationinitsstrategy.• Review,tailor,simplify,measureand

monitorprocessesandprocedureswiththeaimofattainingthehighestlevelsofexcellenceandquality.

• Promotethetechnologicalchangesup-portingDIANprocesses,withaviewtosustainabilityandmasscoverage.

• Cultivateandmanageknowledge,hu-mantalentandchangeintheorgani-zation.

DIAN moves forward

ThefollowingkeyfactorsarehighlightedastheyunderpinthesuccessoftheMUIS-CAmanagementmodel:• The backing of senior management

withintheorganizationaswellaswithinnationalgovernment,andthesupportoftheWorldBankwhichbackedtheprojectandindeedapprovedanewloantocontinuewiththedevelopmentofoutstandingtopicsuntil2012.

• DIANofficialswhowereexpertsontheprocesses involvedandfamiliarwiththeneedsoftheorganizationwereinchargeofidentifyinganddevelopingtheproceduresprovidedthroughIT-basedelectronicservices,assistedbyagroupofconsultants.

• Implementationtookplaceintandemwith a support and assistance pro-grammeforthepublic.

• IntermsofCustomsmatters, follow-ing the international guidelines of the World Customs Organization was vi-tal as it enabled DIAN to be inside Customs with greater visibility at the international level.

• The joint work with the Ministry of External Trade and the bodies which grant approvals in import/export processes was also important – the Single Window for External Trade and the Single System for Simulta-neous Inspection have been consoli-dated with these bodies, using the concept of the “procedural chain”.

MUISCAhasenabledtheDirectorateofNa-tionalTaxandCustomstomoveforward.

ContactsDirector General of National Tax andCustomsDr. Néstor Díaz SaavedraTel:+5716079325/9475Fax:+5716079383Email:[email protected]

DirectorofOrganizationalManagementMs. María Elena Botero MejíaTel:+5716079999Email:[email protected]

Website:www.dian.gov.co


Overview

Culturalheritageisthelegacyoftangibleartworksthatexpressthevalueofacultureandthecharacteristicsofasociety.Foreverynation,culturalheritagerepresentsafundamentalsourceoflife,civilizationaswellasauniqueassetforitsfuture.Throughthepreservationandpromotionoftheirnationalculturalprop-ertyandheritage,societiestransfertheirownidentityontofu-turegenerations.

Itisvitalthereforetoprotectculturalitemsfromanyattempttocompromisetheirintegritybyputtinginplaceallneededmeasurestopreventcrimessuchastheft,lootingorillicittrafficking.Infact,onceapieceofhistoryornationalidentityislost,inmostcasesitislostforeverandthedetrimenttohumanityisoftenincalculable.Thetruevalueofculturalpropertycanbeappreciatedonlyifconditionssuchasorigin,traditionandhistoryarefullyrespectedandsafeguarded.Eachtimeaculturalobjectistakenfromitsoriginalcontext,notonlydoesitcreateavoidinacountry’snationalheritagebuttheartifactitselfisseriouslyimpoverished.Inthissense,thetheftandtraffickingofculturalitemsrepresentsoneoftheoldestformsofcrimeandisascourgeasoldashistoryitself.

Theongoingincreaseintheillicittraffickinginculturalgoodsandthedamagecausedbythistradeisofgreatcon-

cerntotheglobalCustomscommunityandtheroleofCustomsinfightingthisformofcross-bordercrimeisrecognizedasbeingofparamountimportance.Indeed,preservingculturalheritageandstemmingillicitphenomenaliketraffickingandsmugglingtranscendsborders,andasaprimaryborderagency,Customsiswell-placedtofightcriminalorganizationstraffickingartaswellaslooters,smugglersandunscrupulousartdealers.

International efforts

Overrecentyears,theWCOhasstrengthenedinter-nationalcooperationwithother importantplayersinvolvedinthisbattleinordertoimproveandaug-menttheprotectionofculturalpropertyagainstillicitimportsandexports,andillegaltransfersofownership.

IthasdonethisonthebasisofMemorandaofUnder-standingsignedwithINTERPOL,UNESCO,andICOM(In-

ternationalCouncilofMuseums).TheWCOisalsoactivelyinvolvedinworldwideprojectsandcapacitybuildingactivi-tiesaimedatraisingenhancedawarenessanddevelopingeffectiveenforcementtoolsspecificallyrelatingtotheprotectionofculturalheritage.

In 2005, the WCO provided technical assistance toUNESCObyjointlydevelopingtheWCO-UNESCOModelExportCertificateforCulturalObjects.Thisjointworkre-flectedtheincreaseinillicitexportsofculturalobjects,ef-fortstoaddressthelegalaspects,andputnewemphasison

Customs and cultural property: keeping heritage criminals at bay

f O C U s

Small statuette from Bactria, chlorite and calcite, 3rd millennium BC. Anthropomorphic pendant, Diquís, Costa Rica, 1000-1500 AD.

Bronze foundation figurine, end of the 3rd millennium BC. Iraq Museum.

©AgencephotographiquedelaRMN–Chuzeville ©DirkBakker,DIA-FS

©PhotoScala,Florence


f O C U s

thepracticalimportanceofexportcertificatesdesignedspecificallyforculturalgoods.ThiscertificateimplementstheprovisionsofAr-ticle6oftheUNESCOConventionontheMeansofProhibitingandPreventingtheIl-licitImport,ExportandtransferofOwner-shipofCulturalPropertyof1970.TheArticlerequiresUNESCOmembers“tointroduceanappropriatecertificateinwhichtheexportingstatewouldspecifythattheexportoftheculturalpropertyinquestionisauthorized”.

TheadoptionatnationalleveloftheWCO-UNESCOModelEx-portwillhelptosecurethereturnofillicitlyexportedculturalobjectsastheCertificateenablesCustomstoidentifyandtracetheseitems.

CooperationwithICOMisextremelyimportantalso.TheirRedListsofendangeredculturalobjects(seearticlepage44)rep-resentausefultooltohelpmuseums,arttraders,collectors,andCustomsandpoliceofficerstoidentifyobjectsthatmayhavebeenillegallyexportedormaybesubjecttoillicittrade.TheWCO’spartnershipwithINTERPOLentailsWCOparticipa-tioninINTERPOL’simportantExperts’GrouponStolenCulturalPropertythatmeetsonanannualbasisandwhichsetsoutrec-ommendationsonhowtobettertacklethisillicitphenomenon.

TheWCOwillcontinuetointensifyitspresenceontheglobalstagebyparticipatinginmanydifferentforaandeventsdedi-catedtotheprotectionofculturalheritage.

Cooperation bares fruit

Cooperativeeffortsarejustasimportantinthefightagainsttheillicitcross-bordertradeinculturalproperty.

Attheregionallevel,forexample,theWCORegionalIntelligenceLiaisonOfficeforEastandEasternEurope(RILOECE)iscurrentlyrunningavaluableinitiativenamed“ProjectObelisk”aimedatsavingtheregion’sculturalheritage.ItwasinitiatedbyRILOECEin2002toactivelyencouragecountriesintheregiontodetectillegaltraffickingofworksofartandreportseizurestotheCustomsEnforcementNetwork(CEN)database.TheProjectwillstrengthentheactivitiesofCustomsservicesandimprovecooperationbetweenthemandotherrelevantlawenforcementagenciesintheregion.

Asacasestudy,let’sconsiderItalyforinstance.Withmorethan3400museums,2100archeologicalareasand43UNESCOworldheritagesites,Italyhastheworld’svastestculturalheritage.ItsCustomsandborderagencies(AgenziadelleDoganeandtheGuardiadiFinanza)areengagedonadailybasisinprotectingthecountry’sculturalheritagefromanykindofillicitexportation.

Ontheotherhand,ItalyisalsobenefitingfromthecoordinatedactionsofotherCustomsadministrationsespeciallywithregards

totherepatriationandreturnofculturalobjectsil-legallyexported.Justbywayofexample,effectivecooperationbetweenCustomsled,twoyearsago,totherepatriationtoItalyof50vasesdatingfromthe3rdtothe4thcenturiesBC.ThesevaseswereseizedinPerpignanin2007byFrenchCustoms.An-

otherexampleisthereturnofstolenartifactstoItalybytheU.S.ImmigrationandCustomsEnforcement(ICE)

in2009.AmongtheculturalobjectsreturnedtotheItalianau-thoritiesbyICEwereaCorinthiancolumnkraterdatingbetween580and670BCandaPompeiwallpanelfresco.

Keeping up the fight

CulturalHeritagewillcontinuetorepresentapriorityfortheWCO.Ascriminalsinvolvedinculturalheritagecrimeschangetheirtactics,newformsofcooperationaswellasnewenforce-menttoolswillhavetobedevelopedinordertocombatthisphenomenonandpreservethecharacterofourculturallegacyandthereforeournationalidentities.Capacitybuildingtoohasanimportantroletoplay.BybuildingthecapacityofCustoms

Painting, archangel with harquebus, 18th century AD.

Indo-Greek silver coin, 2nd century BC.

©MNAAHP

©KabulNationalMuseumandFrenchNationalLibrary


f O C U s

administrationstoeffectivelycombatthisformofcrimewillresultinbetterborderenforcement;essentialinthefightagainstallformsofillicittrade.

EquallyimportantistheimprovementofrelationsbetweenCustomsauthoritiesandbetweenCustomsand itsvariousstakeholdersincludingotherlawenforcementagenciesandthe

TheInternationalCouncilofMuse-ums (ICOM)haspublisheditsRed

ListofEndangeredCulturalObjectsofCentralAmericaandMexico(2009),theseventhRedListinICOM’spro-grammetocombatillicittraffickinginculturalproperty.

TheRedListshavebeendesignedasanaidtoidentifycategoriesofcul-turalitemswhichareparticularlyvulnerabletoillicittraffic.TheyaredisseminatedtoCustomsauthori-

tiesworldwideandarealsoavailableon-lineinseverallanguagesatICOM’swebsite.

ICOMhasalreadypublishedRedListsforthefollowingcountriesandregions:

· RedListofAfricanArchaeologicalObjects(2000)· RedListofLatin-AmericanCulturalObjectsatRisk(2002)

· EmergencyRedListofIraqiAntiquitiesatRisk(2003)· RedListofAfghanistanAntiquitiesatRisk(2006)· RedListofPeruvianAntiquitiesatRisk(2007)· RedListofCambodianAntiquitiesatRisk(2009)· RedListofEndangeredCulturalObjectsofCentral America

and Mexico (2009)

PoliceandCustomsauthoritiesareencouragedtocarryoutin-depthinvestigationswhendealingwithculturalartefactsidentifiedinRedLists.However,theseListsdonotpretendtobeexhaustiveandanyculturalitemwhichmaycomefromtheregionand,ingeneral,fromacountryorregionforwhichaRedListhasbeenpublished,shouldbesubjectedtodetailedscrutinyandprecautionarymeasures.

Threenewprojectsareunderwayforpublishingin2010,cover-ingHaiti,ColombiaandChinarespectively.

More informationhttp://icom.museum/redlist

About the Red Lists

Gold stupa-shaped reliquary, 1st century AD. Leather-bound manuscript, Guatemala, 19th century.

©MCD-MLA©TrusteesoftheBristisMuseum

businesscommunityasthiswillallowformoreexchangeofinformationandintelligencewhichisthekeytosuccessfulborderenforcement.

More [email protected]://portal.unesco.org/culture/en

INTERPOL steps up its fight against trafficking in cultural property

Despitetheglobalfinancialcrisisanditsrepercussionsontheartmarket,illegal

tradeinculturalpropertycontinuestoflour-ishworldwide.

A very specific crimeInformationontheftsofworksofartrecord-eddailybyINTERPOL,andtheINTERPOLUnitspecializedinthisfield,illustratethepermanenceofaphenomenonwhichsparesnoregionoftheglobe,fromLatinAmerica,victimofthearchaeologicalpillageofsiteswhichexistedlongbeforeColumbus,toCen-tralandEasternEurope,withthedisappear-anceoficonsfromOrthodoxchurches,andAsiawithattacksontheheritageoftheKhmercivilization.

Theftsgivenwidermediacoverage,suchasthearmedrobberyofaMagrittepaintingfromamuseumontheoutskirtsofBrus-sels(Belgium)inSeptember2009,ormorerecentlyofaDegaspastelinMarseille(France)atthebeginningof2010,remindtheworldoftheexistenceofthisveryspecificcrime.

Twiceayear,moreover,INTERPOLissuesaposteron“TheMostWantedWorksofArt”toraisepublicawarenessofsixkeystolenworks(see photo above).

Need for an international data base of stolen works of artTocounterthisscourge,INTERPOLhasdevelopedadatabaseintegratingphotographsanddescriptionsofworksofartsto-lenfromthefourcornersoftheglobe.Thisnowcataloguesover35,000itemsandisconstantlyupdatedbyINTERPOL188Membercountries.Incontinuousevolutionsinceitwas s e tupin1995,thisdatabasehasnowmadeamajorstepforward,havingbeenopenedtothepublicsinceAu-gust2009.

Thisinitiative,crucialtoanyattempttofighttheillegaltradeinstolenarteffectively,per-mitsnotjustlawenforcementservicesbutanyotherinterestedpartytoconsulttheinformationinthedatabasedirectlyandinstantaneously.

Toobtainonlineaccesstothedatabase–www.In-terpol.int/Public/WorkOfArt/dbaccess.asp–usersmustfirstregisterandbegivenapassword.On-lineaccessconstitutesanextremelyimportantstepforwardasitofferseveryoneanopportunitytoverifythataworkofarthasnotbeenreported

stolen,atthesametimemakingitmoredif-ficulttosellfakeculturalproperty.

Whatismore,itisnowdifficultforanysellerorbuyertoarguethatitisimpossibletoverifywhetherornotanobjecthasbeenregisteredasstolen.Thesuccessexperiencedbythedifferentstakeholdersinvolvedinfightingtraffickinginstolengoodsdem-onstratesinhindsightjusthowvitalthisstepwas.Sofaraccesshasalreadybeengrantedtomorethan1,300usersin60ormorecountries,andthisfigureisgrowingallthetime.

Allsectorsofactivitywithaninterestinthisissuearerepre-sented:lawenforcementagencies;headsofculturalinstitutions;artmarketprofessionals;andevenprivatecollectors.ThiswiderangenaturallyincludesCustoms,with40orsorepresentativesfromaround20countriesondifferentcontinents.

ThisinvolvementbyCustomsauthoritiesreflectsthekeyroleplayedbyCustomsadministrationsinthefightagainstunau-thorizedexportsofculturalproperty,withnumerousobjects

seizedonaregularbasis.

Foritspart,theWCOworkscloselywithINTERPOL,andhasdonesoformanyyearsinfightingthistypeofcross-bordercrime–amoregeneralCooperationAgreementhaslinkedthetwoOrganizationssinceNovember1998.

Quiteapartfromthenewsteptakeninmakingthedatabaseaccessibleonlinetoawiderpublic,otherprojectsarecurrentlyunderwaytoimprovetheefficiencyandper-formanceoftheINTERPOLdatabaseevenmore.

Onthetechnicallevel,forinstance,thereareplanstouseasystemofrecognitionbasedonimagesimilaritiesto

facilitatesearchesinthedatabase.

OMD News – No 62 – June 2010 45

Saint Michael Archangel, Mexico, 18th century. ©R.VelascoAlonso,INAH

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Painting by Picasso, 1938, stolen in March 1999 in France

©INTERPOL

- En cas de découverte ou de renseignements concernant ces affaires, prière d’aviser les services de police qui informeront leur B.C.N. INTERPOL.- Should any of these items be discovered or any information concerning these cases become available, please inform the police who will contact their INTERPOL NCB.

Publié par INTERPOL - Published by INTERPOL - B.P. 6041 - 69411 LYON CEDEX 06 (FRANCE)

N°39 (b)DecemberDécembre 2009

1 2 3OBJET : Paire de vasesITEM : Pair of vases

AUTEUR : InconnuARTIST : Unknown

DATE DU VOL : Entre le 12 août et le 1er septembre 2009DATE OF THEFT : Between 12 August and 1st September 2009

B.C.N. :NCB :

PARIS

N° de dossier : 2009/31393File No. :

LIEU DU VOL : PalaisPLACE OF THEFT : Palace

DIMENSIONS : Hauteur / Height : 60 cm

OBJET : TableauITEM : Painting

AUTEUR : Ignacio de RiesARTIST :

DATE DU VOL : Entre le 12 février et le 24 mars 2008DATE OF THEFT : Between 12 February and 24 March 2008

B.C.N. : MADRIDNCB :


LIEU DU VOL : Transport publicPLACE OF THEFT : Public transport

DIMENSIONS : 112.1 x 136.8 cm

OBJET : Antéfi xeITEM : Ante-fi xae


DATE DU VOL : Entre le 21 et le 22 juillet 2009DATE OF THEFT : Between 21 and 22 July 2009

B.C.N. : VIENNENCB : VIENNA


LIEU DU VOL : Site archéologiquePLACE OF THEFT : Archaeological site

DIMENSIONS : 21 x 19 x 2 cm

6OBJET

SculptureITEM


DATE DU VOL : Entre le 18 et le 19 septembre 2009DATE OF THEFT : Between 18 and 19 September 2009

B.C.N. : NEW DELHINCB :


LIEU DU VOL : TemplePLACE OF THEFT :

DIMENSIONS : 90 x 56 cm

4OBJET :

StatueITEM :


DATE DU VOL : 1er janvier 2008DATE OF THEFT : 1st January 2008

B.C.N. : SAN SALVADORNCB :


LIEU DU VOL : EglisePLACE OF THEFT : Church

DIMENSIONS : 115 x 45 x 32 cm

5OBJET : TableauITEM : Painting

AUTEUR : René MagritteARTIST :

DATE DU VOL : 24 septembre 2009DATE OF THEFT : 24 September 2009

B.C.N. : BRUXELLESNCB : BRUSSELS


LIEU DU VOL : MuséePLACE OF THEFT : Museum

DIMENSIONS : 60 x 80 cm


ThisiswhyINTERPOL,alongsideUNESCO,ICOMandtheWCO,ishelpingtomobilizetheinterna-tionalcommunitytoensurethepreservationofHaitianculturalproperty.

ThealertspromptlysentouttoallMembercoun-triesafterthecatastrophe,tomakethemawareofthevulnerabilityofHaitianheritageandtherisksofillegalimportsofculturalpropertyfromthiscountry,wereoneofthefirstresponsestocountertheurgencyoftheproblem.

The imminentpublication,undertheaegisofICOM,ofaRedListofat-riskHaitianculturalproperty,likethelistsdrawnupforCambodiaandAfghanistan,alsodemonstratesthegravityofthesituation.

Finally,themobilizationoftheinternationalcommunityissoontobeformalizedbythesettingup,atUNESCO’sinitiative,ofaninternationalcoordinatingcommitteeforHaitianculturetowhichINTERPOL,inclosecollaborationwithitspartners,willbeoffer-ingitsexperienceandknow-howincrisismanagementmatters.

More informationwww.Interpol.int [email protected]@Interpol.int

OneofthemostimportantobjectivesisbasedonaCouncilofEuroperecommendationtopromoteimproveddatainputintotheINTERPOLdatabase.TheuseofanITmechanismallowingautomaticintegrationofdatafromMembercountriesiscur-rentlybeingexamined.Theimplementationofthiskindofsystemiskeytoinputtingevenmoredataintothedatabase,asitseemsthatmanycoun-triescommunicatefartoolittleinformationtoINTERPOL.

However,itisunrealistictoclaimtobestampingouttraffickingunlessallnationsareonboardandactivelyparticipating.

Inthisareaofcrime,asinmanyothers,theneedforstronginternationalcooperationisprovingessential.

Mobilizing the international community to safeguard world heritageParticularlydramaticeventssuchastheIraqwarortherecentearthquakeinHaitiunderlinethedemandforinternationalco-operationsincetheheritageofthecountriesconcernedisseri-ouslythreatened.

InHaiti,forinstance,artistictreasuresareatrealriskasthereigningchaosispropitioustotheftandtrafficking.

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Ivory plaque from Nimrud, 9th-8th centuries BC (stolen).

©IraqMuseum


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Swift delivery of emergency humanitarian aid

…a priority for the international Customs community

In the event of natural disasters and other catastrophes, humanitarian aid from the international community needs to be delivered on site as quickly as possible in order to help survivors. But at the same time, the absence of adequate control mechanisms at the national level can lead to a flood of inappropriate international “aid” which is not suited to the needs of those who require it.

Reliefconsignmentsneedtobeclearedquicklyandcarefully,whichcallsforspeciallyadaptedprocedures.Givenitsposi-

tionatborders,Customsplaysakeyroleinfacilitatingtheexpe-ditiousmovementofgoodssentasemergencyhumanitarianaid.

AccordingtoastudybytheInternationalFederationofRedCrossandRedCrescentSocieties(IFRC)in2007,thereareamultitudeofinternationalinstrumentsrecommendingfacilitationmeas-urestosimplifyandrationalizetheclearanceofhumanitarianreliefconsignments.Ofthese,threeofthemostimportantoneshavebeendrawnupbytheWCO,namelytheWCORecommen-dationtoexpeditetheforwardingofreliefconsignmentsintheeventofdisasters(8June1970),therevisedKyotoConvention(RKC),inparticularSpecificAnnexJ5,andtheIstanbulConven-tionontemporaryadmission,inparticularAnnexB9.Theseinstrumentsservedasamodelforthedevelopmentin2007ofnew“GuidelinesfortheDomesticFacilitationandRegulationofInternationalDisasterReliefandInitialRecoveryAssistance”thatwereadoptedbytheStatesPartiestotheGenevaConven-tionsin2007.

Itisgenerallyimpossibletoforeseewhenandwherenaturaldisasterswillstrike,ortheirscale,althoughonoccasionsomecanbepredicted.Unfortunately,naturaldisastershavebeeninthenewsalltoooftenrecently.Asaresultthereof,theWCO’sPermanentTechnicalCommittee(PTC)devotedalargepartofits187th/188thSessionsfrom1-3March2010toreviewingthecurrentsituation;whathasbeendoneandwhatmorecouldbedone.

TheUNOfficeforCoordinationofHumanitarianAffairs(OCHA)andtheIFRChadanopportunitytopresenttheirworkatthismeeting.OCHAinparticular,encouragedWCOMemberstosigntheModelAgreementonCustomsFacilitationbetweentheUnitedNations(UN)andgovernmentsconcerningreliefcon-signmentsandthepossessionsofreliefpersonnelintheeventofdisastersandemergencies(astakenintoaccountintheRKC)

sincefewcountrieshavesigneditsofar.Atthenationallevel,discussionspreparatorytothesignatureofthiskindofagree-mentaregenerallyinter-ministerial,althoughthefinaldecisionisoftentakenatthepoliticallevel.

Additionally, inordertomanagetheinterventionofalargenumberofNGOsintheeventofnaturaldisasters,whichob-structstheclearanceprocess,theModelAgreementprovidesfortheuseofaModelCertificateallowingtheUNtoguaranteethatanNGOoranindividualisabonafideparticipantintheUNreliefoperationbeingundertakenattherequestofthegovern-mentandassuchisentitledtotheapplicationoftheCustomsfacilitationmeasuresprovidedforundertheAgreement.

Thecentralisationoftheformalities,andoftheprocessingofreliefconsignments,isessentialifwearetomanagehumani-tarianaideffectively,andCustomsisideallyplacedtooccupyakeyroleinthecoordinationandmanagementofhumanitariancrises.TothisendOCHAmaintainsa“DirectoryofNationalFocalPointsandLegislationforCustomsFacilitationinInter-nationalEmergencyHumanitarianAssistance”onitswebsite:

Haiti : a Makeshift camp


www.reliefweb.int.WCOMembers are invited toprovidetheUNwiththecontactdetailsofnationalCustomsfocalpointsand/ortoensurethatthesede-tailsareup-to-date.

Foritspart,theIFRCen-couragedWCOMembers

toensurethattheirdomesticregulatoryframeworksareprop-erlypreparedforthemostcommonCustomsproblemsencoun-teredintheeventofadisaster(asdescribedinits2007studyandinseveraldozencasestudiesavailableonitswebsite:www.ifrc.org/idrl.Thedisasterreliefandrecoveryguidelines(mentionedearlierinthisarticle)couldproveusefulinsuchanappraisal.TheIFRCalsonotedthatnationalRedCrossandRedCrescentSocietiesoftenhaveextensiveexperienceandexpertiseinthisfieldthattheycanshare.

Atthecloseofthediscussions,andtakingaccountoftheurgentneedtoestablishefficientclearancesystems,thePTCidentified

thissubjectasoneofitsmainprioritiesoverthenext12months.AworkingsessionwillthereforebedevotedtothisissueatthePTC’snextmeetinginOctober2010.

TheWCOSecretariatiscurrentlydraftingaMemorandumofUnderstandingoncooperationbetweentheWCOandOCHAontheonehand,andbetweentheWCOandtheIFRContheother,whichitintendstosignveryshortly.ItisalsoinvolvedinanAdvisoryConsultativeCommitteerecentlysetupbytheIFRCtodrawupmodelnationallegislationcoveringinternationalaidintheeventofadisaster,whichhelditsfirstmeetinginGenevaon19April2010.Finally,itisinterestingtonotethatthePolicyCommissionhasalsoincludedthisissueontheagendaforitsnextsessioninJune2010.

WCOmeasuresonemergencyhumanitarianaidareavailableonitswebsite.

More informationwww.wcoomd.orgwww.reliefweb.intwww.ifrc.org/idrl

f O C U s

Haiti: “Rather than give up, Customs must forge ahead!”

At4.53p.m.localtimeon12January2010,adevastatingearthquakeregistering7ontheRichterscalestruckHaiti

approximately15kmwestofthecapital,Port-au-Prince.

ThistremorofunprecedentedviolencecausedthecollapseofmanydwellingsandhotelsaswellasgovernmentbuildingsofsturdierconstructionsuchasthePresidentialPalace,theParlia-ment,theMinistryofFinance,theMinistryofPublicWorks,themainprisonandtheTaxationOffice.Thedeathtollstandsatover300000,withhundredsofthousandsinjuredandmillionsofHaitianslefthomeless.

Sincethequake,over450settlements–mostcommonlycon-sistingofmakeshiftcamps–havesprungupinanunplannedmannerinPort-au-Prince.Theonsetoftherainyseasonisnowthegreatestcauseforconcern,giventhataccesstoproperwa-terproofshelterwillnotbeavailabletoallthedisaster’svictims.Whatismore,therainwillworsensanitaryconditionsandsub-stantiallyincreasetheriskofepidemicsanddisease.

InMay2010,theWCOSecretariatvisitedHaitianCustomsinPort-au-Princetoexpressthesympathyandsupportofthein-ternationalCustomscommunityasawhole.Thequakeobviously

didnotspareHaitianCustoms.NineCustomsofficersperishedinthedisaster,some15wereseriouslyinjuredandallwithoutexceptionlostfamilymembers.

Customsinfrastructurewasalsobadlydamaged.Theirhead-quartersbuildingisonthevergeofcollapseandthefullstaffcomplement has been transferred to the Customs School

Customs headquarters in ruins

©CPB


premises.ThesepremisesaretoocrampedandtheDirectorateGeneral’sdivisionshavetoworkinshiftsasthereisnotenoughroomforeveryone.ThebuildingsatPort-au-PrinceInternationalAirportarealsooutofcommissionandCustomshastakenupresidenceinahangerfittedoutatveryshortnoticesothatof-ficerscanperformtheirduties.

Port facilities too were completely levelled by the quake(wharves,warehouses,administrativebuildings,etc.).Pendingreconstruction,theUnitedStateshasloanedtheportauthoritiestwofloatingdocksthatenablesomecommercialvesselstoberth.DeepdraughtvesselshavenooptionbuttounloadtheircargointheDominicanRepublic.ThecontainersarethentransportedoverlandviaMalpasseCustomsoffice(theborderpostlinkingthetwocountries),whichdoesnothavesufficientcapacitygiventhecircumstances.Onceattheoffice,thegoodsareplacedunderatransitprocedureuntiltheyreachPort-au-Prince.

Inspiteofalltheseproblems,HaitianCustomssucceededinget-tingthe“ASyCUDA”Customsclearancesystemupandrunningagainwithinafortnightofthedisaster;animportantfeatasCus-tomscurrentlygenerates65%ofthecountry’stotaltaxrevenue.

TheDirectorGeneralofHaitianCustoms,Mr.Jean-JacquesVal-entin,hastheuseofasmallofficeintheCustomsSchoolwherehewelcomedtheWCOrepresentative.Duringthediscussionsheunderscoredhisadministration’soutstandingeffortsduring

f O C U s

thistimeofcrisisandhisstaff’saccessibilityandreceptive-nessdespitethedifficultiesencountered.“Ratherthangiveup,Customsmustforgeahead!”saidMr.Valentin.SuchisthewatchwordadoptedbytheDirectorGeneralandhisDirectorstomaintaintheirmotivationinthefaceofacatastropheofthisscale.


Port-au-Prince commercial port out of service

(1) A district of Port-au-Prince levelled

by the quake

(2) The remains of the Finance Ministry

(3) Malpasse border office linking Haiti

and the Dominican Republic

(1)

(2)

(3)


f O C U s

Using Statistics to Fight Corruptionby Bryane Michael and Nigel Moore

ManyCustomsmanagersthinktheyneedexpensivecomputersystems

andcomputerexpertstodetectcorrup-tionusingstatisticalmethods.Thisisnottrue!Therearemanywaysforadiligentmanagertoquicklyandrelativelyeas-ilyidentifysuspiciousactivitiesacrossawiderangeofCustomsoperations.WewilltrytoshowhowaregionalCustomsmanagercandetectcorruptionjustbylookingatgraphsofdata.

CanyoufindthetwoorthreesuspiciousinspectorsinthedatagraphshowninFig-ure1?Lookfordatapointswhichlookunusual–justuseyourcommonsense.TheFigurecomparestheclearancetimesforanumberofinspectorsandthevalueofinspectionstheycarryout.Ofcourse,theinspectorswhotaketoolongaresus-picious.However,theoneinspectorwhoclearstooquicklyalsorepresentsarisk.Wehavecolouredthesepointsforeasyreference.

Thesimplegraphshowsthebasiccon-ceptofrisk.youmaybeusedtothinkingabouttheloneinspectoratafarawaybordercrossingatnightasacorruption“risk.” The modern manager thoughalsothinksofriskasstatisticalvariance.Namely,howmuchdifferencesarethereingroupsofdata?LookingatFigure1,weactuallyseetwogroupsofdata–onegroup(clearinggoodsbetween3and6hours)andasecondgroupoutsidethisnorm(i.e.around2hoursand7hours

respectively).Thesecondgroupofofficersisaconcernbecausetheyareoutsidethenormalrange.Thestatisticshavethereforehighlightedthemforfurtherattention.Asamanagerweneedtoestablishwhatthereasonsfortheseanomaliesare.

Howcanwelookatthevariance(orriskinourjargon)ofperformanceindicatorsweareinterestedin(likeclearancetimes)withoutprintingthousandsofgraphsanddataplots?Maybeyourememberfromyourmathsclassesthenotionofastandarddeviation.Thestandarddeviation(representedbytheGreekletters)measuresthedispersionorspreadofdata.Averageimportvalues,timesrequiredforclearanceorothervariablesweareinterestedinwillhaveastandarddeviationwhichhelpsusmeasurethe“risk”ofcorruption,inefficiency(orjustrandomunpredictability).ThestandarddeviationinFigure1forclearancetimesisbetween3and6hours.

Figure 1: An Anti-Corruption Rorschach Test

100

150

200

250

300

2 2.5 3 3.5 4 4.5 5 5.5 6 6.5 7

time for clearance (hours)

value (thousands)

Source: We have made up these data for this example.

Val

ueo

fgoo

ds

(Tho

usan

ds)


f O C U s

youcaneasilycalculatethestandardde-viationofsuchthingsasimportvaluesorclearancetimesusingMicrosoftExcel.Figure2showshowthiscanbedoneus-inganotherexample–thetimestwobor-derpoints(BlueNorthandBlueSouth)taketodetectaCustomsoffence.Eventhoughgroup1workinginBlueNorthatfirstglanceappearmore“efficient”(theydetectedmoreoffences),theyareinfactalsomoreriskythantheBlueSouthgroupwhenlookingatthestandarddeviationofthetwogroups.This isbecausethestandarddeviationoftimesindetectedoffencesequaledabout2.4daysinBlueNorthwhereasBlueSouth’sratevariedbylessthanoneday.Asshown,tofindthestandarddeviationsofthesegroups,justselectthedata,and–inanewcell–type“stdev.”Inthebrackets,choosethedatayouwant.youseetwostandarddevia-tionsinFigure2.

Fromastatisticalpointofview, riskyCustomsofficers(andgroups)arethere-fore those who are “different.” Theyhavehigherstandarddeviations–theyaremoreabnormal.Theyincludeindi-vidualswhoaredifferentfromtherestofthegroup.Fromastatisticalanalysisperspective, being different is “bad”.Managersneedtoestablishthecauseforsuchdifferences.

Statisticsservesasatoolthatcanhelpusidentifyandquantifyrisks–inthiscasetheriskofcorruption.Andstatisticscanalsoallowustoquantifythecost(onav-erage)ofcorruptioninCustoms.Namely,theexpectedvalueofcorruptioninapartofCustomsoperationsequalsthevalueofgoodsclearedmultipliedbytheprobabil-itythatofficersaretakingbribes.Forex-ample,if50Customsofficershavea15%probabilityoftaking€50,000inbribeseach,thentheexpectedlevelofcorrup-tioninthatgroupisequalto€375,000.Wejustmultiplytheprobabilityofbribe-takingbytheamounttheseinspectorsmaybetaking.

Infraction BlueNorth BlueSouth1 2.4 24.22 1.3 22.13 4.3 23.34 5.3 25.25 3.5 23.16 6.3 24.47 7.4 24.68 5.3 24.59 6.4 22.110 7.5 22.311 2.5 2312 1.3 24.213 11.6 24.7 =stdev(C4:C18)14 7.1 23.915 9.9 24.1

Average 5.5 23.7Standarddev. 2.38 0.85

Manyreadersmayseriouslydoubtthevalueofusingastatistics-basedapproachtohelpfightcorruption.Weknowthejokesaboutstatistics–andhowunusualtheseconceptsmayseemwhenreadforthefirsttime.Statisticsisonlyonetoolamongmanytodetectandpreventcorruption.WearenotsuggestingthatyouturnyourCustomsserviceintoastatisticsfaculty.Nordowesuggestyoufireyourintelligenceofficersandinvestigators.Instead,wesuggestthatyourmanagersaretrainedtousebasicstatisticalanalysisskillstohelpidentifypossiblecorruptactivitiesi.e.onesthatasimplegraphmayshowalltooclearly.

Whilewehavetriedtomakethesubjectsimple,pleasedon’taccuseanyoneofcor-ruptionwithouthavingaprofessionallookatthedatafirst!

FurtherinformationonthesubjectcanalsobefoundinourcompanionarticleintheWorldCustomsJournal(www.worldcustomsjournal.org).Wecanalsobecontacteddirectlyviaemailshouldyouwishtoclarifyanypointsorhaveaspecificquestionyouwouldlikeustoanswer.

Abouttheauthors:


Figure2:UsingExceltoCalculateStandardDeviations

Nigel Moore is an independent Customs Expert.

Bryane Michael works at the Stockholm School

of Economics.


On International Customs Day, Baha-masorganizedapublicforumwithlocalbrokerage companies and the generalpublic that included a question andanswersessionandtheexchangeofideasandconcerns.

CambodiaestablisheditsCustoms-Pri-vateSectorPartnershipMechanismaimedatraisingawarenessamongallstakehold-ers,acceleratingbettercooperation,andensuringefficienciesintheimplementa-tionofthegovernment’stradefacilita-tionpolicyandalsopoliciesoftheWCO,especiallytheWCOSAFEFrameworkofStandards.

Cambodia:Q&Aduringtheofficiallaunchofthenewmechanism

TheSecretariattoohastakenupthechallenge by setting in motion a

projecttorevisitall itsMemorandaofUnderstandingwiththeprivatesectorwithaviewtoexploringwhethertheyarestillfitforpurpose,whethertheyneedtobeupdatedandstrengthenedorwhethertheyneedtobecompletelyrenegotiatedtotakeonboardnewopportunitiesandchallengesoftoday’sinternationaltradingenvironment.Acentralpartoftheprojectistoensurethatexchangeofinformationprovisionsarereinforcedtothegreatestextentpossibleassharingofinformationisrecognizedasplayingakeyroleinen-hancingCustoms-Tradeoperationsandperformance.

AsmallsamplingofconcretenationalCustoms initiatives reported to WCONewsappearbelow:

KoreaCustomsService(KCS)signednu-merousMOUswithbusinesses,reinforc-ingtheKCSsurveillancenetworkoverdrugs,gunsandsmugglingactivities.TheKCSbusinesspartnershipisparticularlystrongonIPRissues,illustratednotablybytheCyberMonitoringTeamwhichenablesCustomsandcustomer-grouprepresent-ativestokeepwatchontransactionsofcounterfeitgoodsincyberspace.

TheRoyalMalaysianCustomsDepart-mentconductedaCustoms-PrivateSec-torConsultativeMeetingtodiscussvari-ousaspectsofCustomsmattersinordertoenhancetradefacilitation.

NorwaychosetodedicateInternationalCustomsDaytotheCustoms-BusinessPartnership in the fightagainstcoun-terfeiting,astrategicallyimportantis-suethatillustrateditsgoodcooperationwithbusiness.NorwegianCustomsandExcisecooperatesonadailybasiswiththeConfederationofNorwegianEnter-prises.Theyinvitedthepresstowitnesshowmanycounterfeitproductsaredis-coveredatthemainmailterminalduringasingleweek.

Following the WCO’s decision to dedicate 2010 to promoting the importance and necessity for Customs-Business partnerships especially in light of the fact that partnerships form one of the 10 core building blocks in the WCO Customs in the 21st Century strategic policy, Customs administrations around the world have rallied to concretise the Secretary General of the WCO’s call by undertaking a number of positive initiatives in this area.

Customs community rallies to improve Customs-Business partnerships

Cambodia Customs Management Board and private sector

representatives

Cambodia: Q&A during the official launch of

the new mechanism

Malaysia's Director General of

Customs with the Minister of

Finance who presented Certificates

of Merit to the private sector

Malaysia: Customs and the private sector

consult

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UkrainianCustomshighlightedthelat-estdevelopmentsinitscooperationwithbusiness:theimplementationoftheAEOconceptfortrustedtraders(theso-called“white”and“green”lists);thelaunchofthe“e-Customs”projectandtheintro-ductionof its firstphase,namely, the“e-Declaration”.Thetradingcommunitywereinvitedtocommentonthesebreak-throughsandonthedynamicsoftheCus-tomsbusiness.

Côted’IvoirelaunchedaTimeReleaseObservatorytoenhanceitsrelationshipwithbusiness.Ithadsetupseveralcon-sultationcommitteeswiththeprivatesectorandannouncedtheestablishmentofanationalcommitteeonIPRs.Businessrepresentativestooktheopportunitytocommentonthechangesmadeand,whilerecognizingprogressmade,highlightedthenecessity toaccelerateclearancesandtomovetoapaperlessenvironment.

WiththeassistanceoftheWCO,MoroccolaunchedanIntegrityObservatoryaspartoftheireffortstoenhancethebusinessenvironment.

BruneiCustomsannouncedthatitplanstodevelopseveralactivitieswiththebusi-nesscommunityduring2010,includinganumberofdialoguesessionstoexchangeideasandexperience.Bruneihighlightedtheneedtochangeitsmindsetandup-gradeworkingprocessesandperform-ance,encourageapro-businessattitude,andbetterunderstandtheneedsofentre-preneurswhodonotwanttobehinderedwithregulationsandproceduresthatarenolongerrelevant.

InMali,aSeminaronCustoms-BusinessPartnershipswasanoccasiontohighlighttheeffortsmadebyCustomssuchasthereviewoftheCustomscode,theagree-mentswithneighbouringcountriesontransitprocedures,theongoingITinte-grationofCustomsprocedures,theuseofscannerequipmenttoreduceclearancetimes,etc.Otherprojectstofacilitateandsimplifyprocedurestosupportbusinessdevelopmentareunderway.

TunisiausedInternationalCustomsDaytolaunchtheTunisianAEOprogrammeandtoexplainindetailtheconditionsand

requirementsacompanyneedstofulfilltoobtainthisnewstatus.

InCameroon,adebatetookplacedur-ingwhichthemainissuesandobstacleshinderingtradewerediscussed.DelegatesrecognizedthatmanythingshavebeenputintoplacetodeveloptheCustoms-BusinessPartnershipincludingaBusinessCustomsForumandacommitteetopro-moteintegrity.Alldelegatesalsounder-linedtheneedforregulationstobewellappliedandforeveryplayerinthe“tradechain”tocomplywiththeirresponsibility.

The2010InternationalCustomsDaycel-ebrationscorrespondedwiththeopeningoftheMeetingofCustomsOfficersfromtheWestAfricanEconomicandMonetaryUnioninNiger.Customsrepresentativesfrom the eight member countries ex-changedexperiencesinordertofindso-lutionsthatwouldfacilitateanincreaseintradeandeconomicintegration.

HongKongCustomsannouncedtherolloutofitselectronicRoadCargoSystem(ROCARS)tofacilitateroadcargoclear-

Korea Customs Commissioner poses with Ambassadors accredited

to Korea

China awards Certificates of Merit to Customs officers and business representatives

Representatives

from the private

sector honoured by

Indonesian Customs

Customs officers and

their business partners

cycle together in

Indonesia

e V e n T s


ances.ROCARSwasdevelopedinclosecollaborationwithindustryandallowsshipperstosubmitroadcargodataelec-tronically in advance of the Customsclearance.

IsraelicelebrationscoveredbothInter-nationalCustomsDayandits60thanni-versaryduringwhichtheynotedthepastthroughtothepresentwhilelookingintothefuture.Theireventemphasizedthein-volvementofandclosecooperationbe-tweenIsraelCustomsandthecountry’sforeigntradecommunity.

TheworkdonebyHerMajesty’sRevenueandCustomsintheUnitedKingdomtohelpinternationaltradewasplacedunderthespotlight.Thisworkcoverseverythingfromhelpingmajorcarmanufacturerstosharingandexchanginginformationonseacontainers,throughtoreducingtheamountofpaperworkforFastParcelOp-eratorswhocompleteCustomsentriesonbehalfofimporters.

JordanCustomscontinuedtoenhanceitspartnershipwiththeprivatesectorwithparticularemphasisonsupplychainse-curityandtheprotectionofintellectualpropertyrights.TheirCustoms-BusinessPartnershipCouncilprovidesaplatformforthefrankexchangeofviewsonissuesthatdetereconomicgrowthandhindertheflowofgoods.

Portugal’sCustomsadministrationandtheLisbonTradeAssociationmettoim-provetheirperformancethroughpartner-shipandSudanCustomssignedanMOUwithamajorcompanytocombatcom-mercialfraud.

Moregenerally,ceremoniestookplaceacross theglobecelebrating theworkofCustomsinkeepingthemovementofgoodsflowingandthereforeencourag-ingtrade.ManyCustomsadministrationawarded Customs officers with WCOCertificatesofMeritfordisplayingpro-fessionalismandskill.

Given the focus on Customs-BusinessPartnershipsin2010,theWCOdecidedthatitwouldbeappropriatetoalsoawardCertificatesofMerittoprivatesectorin-dividuals and organizations that wereplayingapositivepartinthisarea.ManyCustomsadministrationsfollowedsuitbyawardingcertificatestotheirnationalpri-vatesectorrepresentativeswhoseworkhadcontributedtotransparencyandim-provedtrade.


Japan awards certificates to private sector representatives Italy honours deserving Customs officers Canada Border Services Agency hosts a public

information event

New Zealand Customs holds an open day that included a number of displays, detector dog demonstrations and tours of the Hawk IV vessel.

e V e n T s


Canada Border Services Agency hosts a public

information event

Canada Border Services Agency hosts a public information event German Customs investigators receive Certificates

of Merit

Awarding Certificates of Merit to Customs

officers in the Dominican Republic

A Portuguese Customs officer receives a WCO

Certificate of Merit Dutch Customs officers pose with their Certificates of Merit

Israel's Director General of Customs and the Director General of the Tax Au-

thority hand out a Certificate of Appreciation to the previous Director General

of the Department of Customs & VAT in the presence of senior officials

New Zealand Customs holds an open day that included a number of displays, detector dog demonstrations and tours of the Hawk IV vessel.

An ICD poster in Norway showing fake medicines and the words

"Do not let this into the country".

Private sector and Customs representatives meet in Ukraine

e V e n T s


Fusing data to deliver integrated business solutions

The page turns at the German Zollkriminalamt

Thiswasonlythesecondtimethat

the WCO has helditsannualITConfer-

enceandExhibitioninEuropesincetheveryfirsteventinBrusselsbackin2002.TheunexpectedroleoftheIcelandicvol-canoaddedanewdimensiontotheproc-essandwhileregistrationswereaffectedinthelastweekorso,participantshadatrulywonderfulexperienceintheIrishcapitalfrom28-30April.Thisoutcomewasdowntotheeffortsofmanyindividu-als,buttheWCOowesahugethankyoutoitsco-host,theIrishRevenueCom-missioner,JosephineFeehily,whotookanenormousamountoftimefromherbusyscheduletobeaveryvisiblepartofallproceedings.

AfteralongandverysuccessfulcareerwiththeGermanCustomsadminis-

tration,Karl-HeinzMatthias,theHeadof theGermanZollkriminalamt (ZKA)retiredon30April2010afterhavingdi-rectedtheZKAfor20years.TheZKAisresponsibleforCustomscriminalinves-tigations.GuestsfromvariouscountriesjoinedKarl-HeinzattheZKAofficesinColognetosayfarewellandtowishhimwellinhisretirement.

TheWCOhascountedondedicatedsup-portbytheZKAinmanydifferentCus-tomscompliancemattersovertheyears.Duringtheearlynineties,Karl-Heinzandhisofficerssupportedmanyoperationalprogrammesandprojectsinitiatedbythe

Thereweremanyotherindividualeffortsinvolvedinmakingthe2010eventsuchanoutstandingsuccess;theentireteamattheOfficeoftheRevenueCommis-sionersworkedtirelessly,withflairandgreatfriendlinessinsupportingtheWCOcontingentandtheofficialconferenceor-ganizers.Itisimportanttonotethecon-tributionfromourmaineventsponsor,Accenture,andalltheothersponsorsandexhibitorswithoutwhomnothingwouldhavebeenpossible–thisistheWCOyearoftheCustoms-BusinessPartnershipandtheITConferenceandExhibitionisatan-gibledemonstrationofthatpartnership.

Thereweremanymemorablemomentsforallparticipants.Onthefirsteveningatthehistoricallyimportantandverylovely

WCO.TheyhostedtheBalkanInfo,MarInfoandCargoInfosystemsandactivelyassistedinorganizinganumberofdrugrelatedenforcementoperationssuchasCarmenItoIV,andlaterOperationRoad-runnerandfollowupoperationswhichtargeteddrugs,counterfeits,precursorsandotherenforcementissues.Progress-ingfromtheseoperations,theWCOlaterdevelopeditsvariousCENapplicationswhicharethecornerstoneofmodernCus-tomsandlawenforcementcooperation.

Karl-Heinzveryearlyrealizedtheimpor-tanceofcommunicationandintelligenceinCustomslawenforcementandofferedtheZKAasa“home”fortheWCO’sRe-gional Intelligence Liaison Office forWestern Europe (RILO WE). RILO WEwillalwaysbeassociatedwithhisnameandhissupporttotheWCO.Hisvision,hisdeterminationandhisinternationallyrecognizedcompetenceinenforcementmattersmadehimmanyfriendsintheinternationallawenforcementcommu-nityandunderlinedinmanyinstancesthe

MansionHouseindowntownDublinallweretreatedtothecrystalclearpurityofthevoicesofatroupeofCelticsing-ersthatprovidedanevocative,almosthauntingexperiencethatallpresentshallneverforget.NomentionofIrelandcanbecompletewithouttheword“Guinness”andthenexteveningwashostedatoneofthetrulysymboliciconsofIreland–theGuinnessStorehouse–andtherecannotbeamoreappropriatesettingforatra-ditionalIrisheveningwithgreatviewsofthecityofDublin,thelovelydancingandofcourse,theGuinness!

FromtheopeningaddressbyConorLeni-han,theIrishMinisterforScience,Technol-ogyandInnovationtotheclosingspeechesbyJosephineFeehilyandSergioMujica,theWCODeputySecretaryGeneral,therewasanexcellentline-upofspeakersfromCus-tomsandtheprivatesector.TheWCOhasbuiltanenviablerecordofsuccesswiththeITConferenceandExhibitionatlocationsallovertheworldand2010haskeptthatrecordintact.Therewerehighlypertinent

crucialroleCustomshastoplayinfightingallformsofCustomsandExciserelatedcrime.TheWCOalsobenefitedthroughKarl-Heinz’ssupportinprovidingmanyhighlyqualifiedexpertstorunoperationsandtoevaluateWCOdrivenprogrammes.

Hislegendary“Newyear’sReception”atoraroundthedateofInternationalCus-tomsDayon26January,wasoftenusedbyKarl-HeinztopersonallyawardWCOCertificatesofMerittodedicatedCus-tomsofficials.AsafriendoftheWCO,Karl-HeinzwillalwaysberememberedforhislonglastingcommitmenttotheZKAandtheWCO,andforhispersonalcontri-butiontoimprovingglobalCustomslawenforcement.

WewishKarl-Heinzandhisfamilyalltheverybestforthefuture.

More informationwww.zoll.de

FUSING DATA TO TRANSFORM

BUSINESS PROCESSES

2010 WCO IT Conference & Exhibition

28-30 April 2010 • Dublin • Ireland

S

Corporate Event Sponsor

Hosted By

Irish Tax & Customs

Karl-Heinz Matthias at his farewell reception

e V e n T s


“Looking back, looking forward”

TheTechnicalCommitteeonCustomsValuationheldalandmarkeventdur-

ingitsrecentsessionatWCOHeadquar-terstocelebratethe30thanniversaryoftheGATT/WTOValuationAgreement.

TheeventwasanopportunitytotakestockofhowtheValuationAgreementwasworkingintoday’sinternationaltrad-ingenvironment,takingintoaccountthevastchangeswhichhavetakenplaceoverthepast30years.ItwasrecognisedthattheAgreementwasfirstdraftedatatimewheninternationaltradeasweknowit

todaywasstillinitsinfancy-worldtradevolumehassincein-creasedby525%.Thisposes difficulties fortoday’sCustomsvalu-ationspecialists;sup-ply chains and multi-nationalstructureshavebecomeevermoreso-phisticatedandcomplex,andlargepaymentsarebeingmadefor intellec-tualpropertyrightsandotherservicesconnectedwithimportedgoods.Forthesereasons,theTechnicalCommitteehasbeenworkinghardontrickytechnicalquestionssuchaswhethercertainroyaltypaymentsshouldbepartoftheCustomsvalue,therelevanceoftransferpricingtoCustomsvalue,anddeterminingwhichpartiesinachainshouldberegardedasthebuyerandsellerforCustomsvalua-tionpurposes.

Inmostdevelopingcountries,effectiveimplementationandapplicationoftheWTOValuationAgreementisoftenquot-edasoneofthemainproblemsfacedbyCustomsadministrations.Informaltradeacrossnationalbordershasincreasedandbecomemorediverse,oftenaccompaniedbysuspectedfalseinvoicesandunder-valuation.Theseissueswereaddressedduring the anniversary event and arealsobeingconsideredinthecontextoftheWCO’sRevenuePackagewhichwasdesignedtostrengthenfairandefficientrevenuecollectioninlightoftheglobalfi-nancialcrisisandconsequentialdecliningdutyrates.AseriesofWorkshops,fundedbyJapan,iscurrentlybeingheldineach

ofthesixWCOregions.WCOMembersarebeingencour-agedtoutilizeexistingrele-vanttoolsandinstrumentsandarebeinggiventheop-portunityto identifyanddiscussareaswheretheywould appreciate moreguidance.Todate,valu-ation,particularlyinthecontext of commercialfraud, has emerged asthemainthemewherefurtherhelpissought.

Aswellaslookingbackoverthepast30yearsatthelessonslearnt,speak-ersandpanellistsalsolookedforwardtofuturechallengesforCustomsvaluationandconsideredwaystoaddressthem.Thereisaneedforincreasedcommercialawareness,sothatCustomscanenhanceits understanding of modern businesspracticesandmeetbusinessexpectations.TheimportanceofstrongpartnershipsbetweenCustomsadministrationswasalsoemphasized.TheclosetiesbetweentheWCOandtheWTOwerefurtherre-inforcedduringtheeventwhichstretchesbacktothecreationoftheWTOin1995.

Finally,thecelebrationwasalsoatimefornostalgia;aValuationMuseumofin-terestingartefactsandphotoswassetupandsomefamiliarfacesfromthevalua-tionworld,pastandpresent,wereabletocatchupwitholdfriendsandcolleagues.


presentationson thecomplex subjectofbusinesstransformationthroughthefusionofdataandtheexhibitionstandsallowedvendorstoshowcasetheirexper-tiseandworld-classsolutionstoaneageraudience.

FinallythereisthesubjectofDublinit-selfandIrelandmorebroadly.Everybodythereshallhavelastingimpressionsofthekind,welcomingandhumorouspeo-plewhoarethebasisoftherichculturalexperiencethatIrelandoffers.


e V e n T s


WCO’s continued commitment to enhancing tariff classification

Improvingtariffclassificationwork isrecognisedasapriority in theWCO

StrategicPlan,whichcallsfortheimple-mentationofbestpracticesinthisarea.These best practices are enshrined intwoveryimportantWCOCouncilRec-ommendationsonthe introductionofprogrammesforbindingpre-entryclas-sificationinformation(1996)andontheimprovementoftariffclassificationworkandrelatedinfrastructure(1998).

Since1988,whenthefirstversionoftheHScameintoforce,theWCOSecretariathasbeenassistingWCOMembersintheireffortstoimplementtheHSandenhancetariff classification work. In the earlymonthsof2010,fiveHSseminarstookplaceattheregionalandnationallevelwiththesupportoftheOrganization.

Seminar in East and Southern AfricaModernisationoftariffclassificationworkwasthetopicofaseminarthattookplaceinMombasa(Kenya)from8-11FebruarywhichgatheredalmosttheentireregionofEastandSouthernAfricatogether.Twenty-sevenCustomsofficersfrom20countriesdiscussedhowbesttoorganisetheirtariffclassificationinfrastructurebyprojectingthestandardsrecommendedbytheWCOontocurrentpractices,byidentifyingcom-monstrengthsandweaknesses,andbycontemplatingmeasuresneededtokeeptariffclassificationworkinlinewithmod-ernstandardsandrequirements.TheSemi-naralsofocusedonaddressingproblemsintheareaofestablishingadvancetariffrulingprogrammes–anissuethatremainshighontheWCOagenda.

Seminar in West and Central AfricaFrom15-19February,aregionalseminarfortheWestandCentralAfricaregionfocusingonHS2007tookplaceinOua-gadougou (BurkinaFaso).Twenty-twoparticipantsfromsevencountrieswereintroducedtotheworkoftheWCOHScommittees and sub-committees, toWCO Council Recommendations, andtotheHS2007amendments.TheywerealsoacquaintedwiththeWCOcommod-itydatabasewhichoffersthepossibilityofsearchingbykeywordorbyusinganHScodenumber,HSpublications,andtheWCOHSe-learningtools.

Workshop in Timor-LesteEnhancingtheabilityofTimor-LesteCus-tomsofficerstoclassifygoodsandtojus-tifytheirclassificationdecisionswasthemainreasonbehindanationalWCOHSCapacityBuildingWorkshopheldinDili(Timor-Leste)from8-12February.

The25participantslearntthemechanicsofclassification–thestep-by-stepproc-essoffirstidentifyinggoods,andsecondidentifyingthepossiblechaptersusingtheTableofContents,thenlocatingtheappro-priateheadings,next,consideringtherela-tiveSectionandChapterNotesand,finally,classifyinginthesixdigitsubheading.

Diagnostic in LiberiaIn2009aWCOdiagnosticmissionwasconducted inLiberiaduringwhichtheneedtoassistthecountryintheHSareawasidentified.Asaresult,aworkshopontheimplementationoftheHSConventionandtheWCOclassificationworkmodelwas organised during March 2010 toidentifytheorganizationalstrengthsandweaknessesoftariffclassificationworkinordertodeterminespecificneedsforas-sistance.WiththehelpofWCOexperts,participantsanalyzedthecurrentsitua-tion,identifiedobjectivesanddevelopedanactionplanforthemodernisationoftariffclassificationworkinLiberia.

Seminar for the Customs Union of Belarus, Kazakhstan and the Russian FederationAseminaronmanagingthechallengesposedbyacommontariffandCustomspolicyincludingtariffclassificationissuesinthenewlyestablishedCustomsUnionbetween Belarus, Kazakhstan and theRussianFederationtookplacefrom17-18FebruaryinMinsk(Belarus).Theseminarprovidedclarificationoncertainproce-duresandmechanismsformanagingtheCustomsUnion’sHSrelatedactivities,aswellasmorepracticalinformationontheuseoftheHSindailywork.

ConclusionThesetrainingopportunitiesareastepto-wardstheconcreteimprovementofthesituationinthefield.Customsadminis-trationstoomusttakepracticalmeasurestoimplementWCOinstrumentsontariffclassificationworkandthelatestversionoftheHSwhichcatersforgoodscurrentlybeingtradedinternationally.

ThenextversionoftheHSnomenclaturewillenterintoforceon1January2012.Customsadministrationsareencouragedto begin the process of implementingHS2012intheirnationalCustomstarifforstatisticalnomenclatures.


In Timor-Leste

In Kenya

In Liberia

e V e n T s

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