Speeches: Ray Mc Donagh, WCO Deputy Director, World Customs Organisation (WCO)

"A well-functioning and ethical Customs is essential to the smooth operation of an effective transit. While Customs is essential, we need co-operation with other sectors including transport, communication and financial institutions for effective transit. Transit requires the political will."

(click on photo to enlarge)

by Ray Mc Donagh
WCO Deputy Director, World Customs Organisation (WCO)

Trade Facilitation and Control = the Dilemma

The WCO is an intergovernmental body whose mission is to enhance the effectiveness and efficiency of Customs administrations. The WCO has more than 160 Member administrations world-wide accounting for 98 % of world trade. To fulfil its mission, the WCO develops and maintains instruments and recommendations for the standardization and simplification of Customs systems and procedures. We also provide Members with training and technical assistance to implement trade and Customs instruments and best practices.

While Customs administrations have to carry out their traditional functions such as revenue collection, protection of society and safeguarding security of the trade supply chain, they also have to strive for increased trade facilitation to promote investment and reduce poverty in a highly competitive environment.

The WCO has developed and maintains a range of internationally agreed Conventions, instruments and best-practice approaches that collectively provide a sound blueprint for modern Customs administration. In order to achieve simplification and harmonization of Customs procedures, the revised Kyoto Convention (International Convention on the Simplification and Harmonization of Customs Procedures) was adopted by the WCO Council in June 1999. This Convention offers practical solutions to address the objectives of revenue collection and border control, while at the same time delivering practical trade facilitation dividends. The revised Kyoto Convention is a sound blueprint for modern Customs procedures and is totally compatible with, and complementary to, the WTO Agreements. While the WTO rules set out high principles (such as predictability, transparency, partnership and the use of modern techniques including risk management), the WCO instruments provide the administrative basis and practical guidance to ensure their effective implementation.

The WCO has also developed the Time Release Study that identifies both problem areas and potential corrective actions to increase efficiency in clearance procedures.

In responding to the growing concern on security, the WCO Council in June 2002 adopted the 'Resolution on Security and Facilitation of the International Trade Supply Chain' and established a Task Force, which recently produced a report containing a package of measures to implement the Resolution. The WCO Council of this year approved the package presented, including the amendment of the Customs Data Model to ensure it includes necessary data for identify high-risk cargo, Principles on the transmission of advanced cargo information to Customs, and Guidelines for co-operative arrangements between Customs and Private Industry.

The international Customs community, through the WCO, has developed a comprehensive Customs Capacity Building Strategy. This Strategy presents a case for a more focussed, co-ordinated and well-resourced approach to undertaking capacity building in the Customs administrations of developing and least-developed countries.

* Capacity Building can be defined as 'developing or acquiring the skills, competencies, tools, process and resources needed to improve the capacity of an administration to carry out its allotted functions and achieve objectives'.

All capacity building activities in Customs should be focussed on increasing Customs' performance in respect of each of the key principles outlined in the revised Kyoto Convention.

Moreover, the WCO is developing a Customs Capacity Building Diagnostic Framework that will provide a comprehensive and standardised methodology for the diagnosis of needs and the design and development of appropriate capacity building programmes to match individual requirements.

A well-functioning and ethical Customs is essential to the smooth operation of an effective transit. In a wider context, it can assist governments in a range of national development objectives. Transit does, however, entail a wider scope than Customs. While Customs is essential, we need co-operation with other sectors including transport, communication and financial institutions for effective transit. Transit requires the political will and commitment for joint and genuine co-operative actions. The WCO is ready to co-operate in its implementation and provide necessary support to landlocked and transit developing countries.

For further information on any of the above please contact the WCO website (www.wcoomd.org)

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