The Institute of International and European Affairs Dublin, 2 March 2010 Kunio Mikuriya Secretary General World Customs Organization

Intergovernmental organization specialized in Customs matters Intergovernmental organization specialized in Customs matters Established in Brussels in 1952 Established in Brussels in 1952 Mission Mission To enhance the effectiveness & efficiency of Customs administrations To facilitate trade and secure the international supply chain 176 Members 176 Members Collectively process over 98% of global trade Collectively process over 98% of global trade 2

From a European to a global institution From a European to a global institution Committee for European Economic Cooperation (1947) Committee for European Economic Cooperation (1947)  Customs Committee - predecessor of the WCO  Economic Committee - predecessor of the OECD 17 European countries, including Ireland, were the original Members 17 European countries, including Ireland, were the original Members EU engagement EU engagement All 27 Member States All 27 Member States Status akin to WCO Members (2007) Status akin to WCO Members (2007) An outreach platform to connect with non-EU economies An outreach platform to connect with non-EU economies 3

Protection of domestic industry Protection of citizens Revenue collection of import taxes Trade facilitation Trade supply chain security Environment 4 Customs function

Develop standards for Customs procedures Develop standards for Customs procedures Harmonized System (HS) – tariff classification Harmonized System (HS) – tariff classification Revised Kyoto Convention (RKC) – trade facilitation Revised Kyoto Convention (RKC) – trade facilitation SAFE Framework of Standards – security SAFE Framework of Standards – security Promote international cooperation Promote international cooperation Share information and best practices Share information and best practices Capacity Building Capacity Building Columbus Programme – diagnostics for reform Columbus Programme – diagnostics for reform PICARD Programme – cooperation with universities PICARD Programme – cooperation with universities Fragile states Fragile states Integrity Integrity Regional approach – ownership at the regional level Regional approach – ownership at the regional level 5

Protectionism Protectionism Global trading system Global trading system Supply chain security and facilitation Supply chain security and facilitation Health, safety and the protection of society Health, safety and the protection of society  Environment  IPR border enforcement  Transnational organized crime 6

Global financial crisis & economic downturn Global financial crisis & economic downturn Reduction in Customs revenue Reduction in Customs revenue  Drop in trade volume  Difficulty of accessing trade finance  Increase in fraudulent activities of traders Customs under pressure on revenue collection Customs under pressure on revenue collection Global challenges (1) Customs environment and role? Rise of protectionist trend 7

Global challenges (1)  WCO Communiqué to G20 (London, April 2009) Trade facilitation, capacity building, monitoring Trade facilitation, capacity building, monitoring Incorporated in the G20 Communiqué Incorporated in the G20 Communiqué  From crisis to recovery Fiscal stimulus/discipline Fiscal stimulus/discipline Trade kept open Trade kept open  For fair and efficient revenue collection WCO Revenue package WCO Revenue package Trade facilitation Trade facilitation Customs modernization Customs modernization 8

WTO Doha Round WTO Doha Round  Early conclusion desirable  Trade Facilitation agenda: biggest economic gains expected  Standards available  WCO Revised Kyoto Convention  Political support and mobilization of donors  Aid for trade Regional integration Regional integration  Convergence of rules of origin  Synergy with global standards  Capacity Building, especially for ACP countries Global challenges (2) 9

Risk management approach: WCO SAFE Framework of Standards Risk management approach: WCO SAFE Framework of Standards  Customs-Business Partnership  Less intervention for high-compliance operators  Certified as Authorized Economic Operators (AEO)  Mutual Recognition  Customs network arrangement Against US 100% scanning law Against US 100% scanning law Intervention for all US bound cargo before departure (to be implemented in 2012) Global challenges (3) 10

Green Customs Initiative with UNEP Green Customs Initiative with UNEP  Enforce trade provisions of Multilateral Environment Agreements  Endangered species, ozone depleting substances, hazardous chemicals, hazardous wastes Exchange of information – Environet Exchange of information – Environet Joint operations Joint operations  Hazardous waste (64 countries: Europe-Africa-Asia/Pacific in 2009) Europe-Africa-Asia/Pacific in 2009) Customs and climate change Customs and climate change  Border enforcement measures  Border tax adjustment Global challenges (4) 11

Challenges Challenges  Awareness  Serious criminal behaviour and economic loss  Funding for organized crime  Health hazards caused by users  Enforcement legislation  Operational capacity  Political/business support WCO activities WCO activities  Diagnostic missions to identify gaps  Joint operations to improve coordination  Cooperation with rights holders  Sharing of best practices  Technical assistance and capacity building Global challenges (4) 12

Transborder crime: challenges & opportunities Transborder crime: challenges & opportunities  Source of illicit profit  Major seizure point; +70% of national seizures in drugs and counterfeits at the borders Customs Enforcement Network Customs Enforcement Network  Communication and database for Customs seizures  Joint operations: drugs in Central Asia, money laundering with 84 countries  Cooperation with the police WHO Framework Convention on Tobacco Control WHO Framework Convention on Tobacco Control  Protocol on Illicit Trade in Tobacco Products Global challenges (4) 13

A New strategic direction for Customs A New strategic direction for Customs  10 building blocks  For better international cooperation  Globally Networked Customs  For better coordination at borders  Coordinated Border Management  For better business compliance and mutual benefit  Customs-Business Partnership and more … A relevant, visionary and indispensable Customs for a better world A relevant, visionary and indispensable Customs for a better world 14

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