wto workshop on technical assistance and capacity building in trade facilitation 10-11 may 2001,...
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WTO Workshop on Technical Assistance and Capacity Building in Trade Facilitation
10-11 May 2001, Geneva
Overview of Technical Assistance Activities by Japan Customs
Kunio Mikuriya
Director, International Affairs and Research, Customs and Tariff Bureau,
Ministry of Finance, Japan
Objectives
• Assistance in modernization of customs administrations to fulfill their three main missions at national borders - Collection of revenue - Trade facilitation to promote trade & industry - Protection of society from the inflow and outflow of hazardous goods
Collection of revenue
• Secure the national revenue -- Important source of national revenue in the developing countries
-- Example of US Customs; Predominance in the national revenue (1789-1914) before the introduction of income tax
• Trade policy tool - Protection of domestic industry
Attention of Trade CommunityHas Been Shifted to Trade Facilitation
• Lowering of tariffs across the globe (WTO tariff negotiations)
• Cost of complying customs formalities
• Cost of duties to be paid
exceeds
3481kg 2019kg
290kg
Cannabis
Opium, Heroin, Cocaine
Methamphetamine
74.7%
79.0%
71.6%
Border control is the most efficient tool toprotect the society from the drug trafficking -Seizure at national borders in Japan (95-99)
Sharing Japan’s experience on modern customs techniques
• Risk management to strike a balance between the facilitation and border control requirements
• Post-clearance audit• Pre-arrival declaration• Paperless trade and one-stop service• Mutual customs cooperation including
information exchange
Customs procedures based on Risk Management
InterdictionInterdiction•Commercial FraudCommercial Fraud•Illicit drugs, FirearmsIllicit drugs, Firearms•IPR, Endangered wildlifeIPR, Endangered wildlife•Other Controlled ItemsOther Controlled Items
Trade FacilitationTrade Facilitation
Risk AnalysisRisk Analysis
Appropriate Border ControlAppropriate Border Control Protection of Communities from:Protection of Communities from:
Cross-Border Movement ofCross-Border Movement of•GoodsGoods•PeoplePeople
Legitimate trade
Control method
• Change from all documentary and physical inspection to selected inspection based on risk management
• Importance of information gathering and intelligence
Post-clearance Audit
Useful instrument for valuation while avoiding a delay in customs clearance
Correctness of the value of goods declared by importers
On-the-spot controlof contract, invoices,accounting books etc.
Additional Collection of Duties byPost-entry Examination (1997)
67 billion yen from 2582 importersout of 4000 audited
15%19%
26%
8%32%
Invoice errror
Other payment
Ommission ofmaterial priceOmmission ofroyality Otherimproriety
Other paym
Automation of customs procedures
• Sharing experience on automation towards paperless trade in collaboration with the private sector
• Automated risk management and building-up of database
• Pre-arrival declaration• Coordination with other government
agencies
Warehouse
Declaration
Documentary Examination Physical
Inspection of cargo
Release
Vessel
Airplane
Procedures covered by computerization
(from arrival to release of cargo)
Quarantine etc.Duty payment
Cargo
Physical Inspection
Documentary Examination
Immediate Release
Cargo SelectivityCriteria
HighRisk
LowRisk
PhysicalInspection
DocumentExamination
Immediaterelease
Automated Risk Assessment
Customs Intelligence Database (CIS)
• Information on importers, their record, customs examination record and other relevant information
• Support selectivity criteria, post-clearance audit, customs investigation
CustomsComputer
SelectivitycriteriaData and
information
CIS
Cargo Documentary Releaseexamination examination
Result
analysisassessmentof risks
Declaration data
Importer
Customs
Input
Pre-arrival declaration
• Advanced examination based on pre-arrival declaration
• Immediate release upon arrival of cargo
• Further acceleration of trade flow
Inspection of imported foods
NACCS
Plant quarantineAnimal quarantine
Efforts toward the one-stop service -Interface of computer system with other agencies
Licensing
Port authoritiesCustomscomputer
(future plan)
Air cargo 2.3 hours (1991)
0.7 hour (1998)
Sea cargo 26.1 hours (1991)
5.6 hours (1998)
The time needed from import declaration to permit in J apan
Air cargo 2.3 hours (1991)
0.7 hour (1998)
Sea cargo 26.1 hours (1991)
5.6 hours (1998)
The time needed from import declaration to permit in J apan
The time needed from arrival of cargo to file an import declaration
Sea cargo142.1 hours
(1991)
81.1 hours(1998)
Air cargo50.3 hours
(1991)
30.8 hours(1998)
Information exchange between customs
• Key to speed up customs control for revenue purpose (commercial fraud) and protection of society (drug trafficking etc.)
• Bilateral basis – Customs Mutual Assistance Agreement or Memoranda of Understanding
• Regional basis – Regional Intelligence Liaison Office (RILO)
RILORILO
RILO Monthly Bulletin (Seizure Report)RILO Monthly Bulletin (Seizure Report)
Analysis of Customs Seizure InformationAnalysis of Customs Seizure Information
Administration of Network & DatabaseAdministration of Network & Database
<<Regional Intelligence Liaison Office>Regional Intelligence Liaison Office>
Asia-pacific RILO covers24 WCO regional members(Tokyo Customs).
JapanKoreaIran
BangladeshPakistan
India
Sri Lanka
Maldives
Nepal
Mongolia
China
Myanmar
Thai
Hong Kong
Macao
Viet Nam Philippines
Malaysia
Singapore
Indonesia
Australia
New Zealand
Fiji
Brunei
Asia/Pacific RILO: 24 Member Administrations
Working hand in hand
WCO - RILO NETWORK
CaribbeanSan Juan (Puerto Rico)
South AmericaValparaiso (Chile)
Eastern & Central Europe Warsaw (Poland)
WCOBrussels (Belgium)
North AfricaCasablanca (Morocco)
West AfricaDakar (Senegal)
East & Southern AfricaNairobi (Kenya)
Central AfricaDouala (Cameroon)
Middle EastRiyadh (Saudi Arabia)
Asia/PacificTokyo (Japan)
Western EuropeCologne (Germany)
Integration of the customs procedures into the international standards
• WTO Valuation
• HS Nomenclature
• Kyoto Convention (simplification and harmonization of customs procedures)
• TRIPs
• Rules of Origin, etc.
• ¶Ž š‚ Ì‹ L“ üStandards
WTO Valuation Agreement (1995)
• Acceptance obligatory for WTO members - Acceptance of GATT Valuation Agreement was optional before the establishment of WTO
• Implementation for developing countries
Need for preparation including introduction of post-entry examination
Principles adopted by the revised Kyoto Convention
• Automation and use of information technology• Risk assessment and selectivity of control• Pre-arrival information• Audit based control• Coordination with other agencies• Transparency of customs regulations• Partnership approach between customs and trade
The Revised Kyoto Convention
• Adopted in June 1999 at WCO Council
• A new instrument adapted to the challenge of trade facilitation
• Need an early ratification by the existing Members to put in force
Technical assistance strategy
• Asia Pacific Region
• WCO member countries based on regional approach
• Needs oriented
Training courses in Japan (6-8 weeks)
1199 participants from 83 economies since 1970• Customs clearance (including automation and
Kyoto Convention)• HS classification• Valuation & post-clearance audit• Enforcement & intelligence analysis• Executive seminar• Chemical analysis• Information technology, etc.
Expert missions
• Long term experts specialized in training, post-clearance audit (ASEAN) and computerization etc.
• Short term experts in chemical analysis (customs laboratory), conducting seminars in various areas
Cooperation with international organizations
• Financial contribution to WCO Customs Cooperation Fund (JPY130 million in 2001)
• Human contribution (dispatching experts) to WCO CCF seminars
APEC Trade and Investment Liberalization and Facilitation
• TILF special account; Japan’s annual contribution of JPY500 million
• Capacity Building to implement WTO agreements (2001-2005)
• Regional seminars & national workshops in valuation, TRIPs and Rules of Origin
Number of courses (participants) in Japan over the last 3 years
1998 1999 2000
Group training
14(149) 16(163) 22(196)
WCO fellowship
2(9) 2(9) 2(9)
WCO Scholarship
(2) (4) (4)
Number of expert missions (experts) over the last 3 years
1998 1999 2000
Long term experts
(3) (3) (4)
Short term experts
6(6) 7(12) 12(23)
WCO 9(13) 22(32) 20(24)
APEC 5(7) 7(9) 7(13)
Needs inventory & planning
• Needs inventory to Asia-Pacific WCO members in September by WCO regional training coordinator (Japan)
• Evaluation & follow-up missions• Plan training courses in April (Japan’s FY: April-
March)• Consultation with WCO in June (FY: July-June)• Avoid overlap of technical assistance
Asia-Pacific Customs Training Needs Inventory
• International Training / Technical Co-operation Activities in 1999/2000 (Table 1)
• Training Needs in 1999 (Table 2)
• International Training / Technical Co-operation Activities Projected (Table 3)
• Training Needs in 2000 (Table 4)
TRAINING ACTIVITIES (1999/2000)
Clearance9%HRD
11%
Other8%
Valuation26%
Customs Area0%
HS13%
Enforcement25%
IPR3%
Rules ofOrigin
2%
ChemicalAnalysis
3%
Clearance14%
Valuation26%
HRD12%
Other4%
Rules ofOrigin
3%
HS8%
Enforcement22%
Customs Area2%
IPR6%
ChemicalAnalysis
3%
TRAINING NEEDS (As of Sep. 1999)TRAINING NEEDS (As of Sep. 1999)
4
12
22
2
26
3
3
14
8
6
0
8
11
25
26
3
2
3
13
9
0 10 20 30 40 50 60
Other
HRD
Enforcement
Customs Area
Valuation
IPR
Rules of Origin
Chemical Analysis
HS
ClearanceTraining Needs
Training Activities
(%)
COMPARISON BETWEEN TRAINING NEEDSAND TRAINING ACTIVITIES
COMPARISON BETWEEN TRAINING NEEDSAND TRAINING ACTIVITIES
Valuation25%
HRD12%
Other3%
Rules ofOrigin
3%
HS7%
Clearance15%
Customs Area2%
Enforcement22%
IPR7%
ChemicalAnalysis
4%
TRAINING NEEDS (As of Sep. 2000)TRAINING NEEDS (As of Sep. 2000)
Success & failure
• Focus on practical application of agreement rather than its theoretical explanation
• Selection of participants
• Usefulness of regional seminar for exchange of information/experience
• Human network
Challenges in the coming years
• Needs for WTO/WCO instruments related training in a practical manner
• Information technology
• Exchange of information
• Human resources development
• Integrity
Maintenance & monitoring of projects
• Evaluation after each training course to improve the service
• Follow-up missions to 6-8 countries annually (interview with former participants & senior management)
Coordination between bilateral donors & international organizations
• Avoid duplication for recipients
• Efficient use of limited human resources
• Coherence and synergy desirable from the planning stage
• More information sharing on technical assistance