Global Network at Borders - Borders divide, Customs connects - APEC CUSTOMS-BUSINESS DIALOGUE (ACBD) Tokyo, 13 September 2010 Kunio Mikuriya Secretary General World Customs Organization

WCO in brief Intergovernmental organization specialized in Customs matters Established in Brussels in 1952 Mission Efficiency and effectiveness of Customs Facilitate trade and secure global supply chain 177 Members Collectively process over 98% of global trade Cooperation with APEC & regional integration 2 2

Evolution of Customs and WCO Revenue Package – Fair and efficient collection of revenue HS, valuation, origin Revenue collection Protection of industry RILO & CEN – exchange of information & joint operations for drug trafficking, precursor chemicals, counterfeits etc. Protection of citizens Customs function Trade facilitation Revised Kyoto Convention, Technology, Risk management Techniques Partnership with trade Risk management Authorized traders Use of IT Co-operation with other agencies Co-operation with other Customs administrations Trade security SAFE standards, Columbus program, AEO Environment Green Customs initiative 3

Global challenges for Customs Economic recovery Global trading system Supply chain security and facilitation Health, safety and the protection of society Environment IPR border enforcement Transnational organized crime 4

Economic recovery WCO Communiqué to G20 (London, April 2009) Global challenges (1) Economic recovery WCO Communiqué to G20 (London, April 2009) Against protectionism Trade facilitation, capacity building, monitoring From crisis to recovery Fiscal stimulus/discipline Trade kept open For fair and efficient revenue collection WCO Revenue Package Trade facilitation Customs modernization 5

Global trading system WTO Doha Round Regional integration Global challenges (2) Global trading system WTO Doha Round Trade Facilitation agenda: biggest economic gains expected Standards available WCO Revised Kyoto Convention Political support and mobilization of donors Aid for trade Regional integration Market connectivity Convergence with rules of origin Certificates 6

Supply chain security & facilitation Global challenges (3) Supply chain security & facilitation 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 Alternative to US 100% scanning law International cooperation Together with US administration Support of US and global business 7

Environment Green Customs Initiative with UNEP Global challenges (4) Environment 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 Joint operations Hazardous waste (64 countries: Europe-Africa-Asia/Pacific in 2009) Customs and climate change Border enforcement measures Border tax adjustment 8

IPR border enforcement Global challenges (4) IPR border enforcement Challenges Awareness Health hazards to users Economic loss and funding for organized crime Enforcement legislation Operational capacity Political/business support WCO activities Diagnostic missions to identify gaps Operational training for risk management PMI – Sharing information using CEN to enhance Interface between Private sector (right holders) and Members 9

Transnational organized crime Global challenges (4) Transnational organized crime Trans-border crime: challenges & opportunities Source of illicit profit Major seizure point – +70% of national seizures of drugs and counterfeits at the borders Customs Enforcement Network Communication and database for Customs seizures Joint operations Drugs in Central Asia, money laundering with 84 countries Global Shield operation Trace and monitor global movement of precursor chemicals for improvised explosive devices In cooperation with UNODC & Interpol 10

Customs in the 21st Century 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 11

Customs-Business partnership 2 ways of information Business information to identify and minimize risk Customs information to improve compliance and obtain benefit Customs website 12

Customs-Business partnership Consultation mechanism From often adversary relationships (mutual mistrust) to partnership (mutual trust) through consultation Legislation, trade facilitation, Customs reform WCO Most committees open to trade Private Sector Consultative Group 13

Customs-Business partnership Cooperation G7 (91) Customs-trade alliance to fight drug trafficking – Memoranda of Understanding (MOU) Compliance to Security: AEO program IT system development: Single Window project　and Data Model WCO IT Conference, WCO Technology & Innovation Forum IPR: Interface and cooperation with business Integrity 14

Customs-Business partnership Theme of 2010 International Customs Day Cornerstone of modern Customs operations (RKC) World Customs Forum, Istanbul, Turkey, 7-8 October Review of WCO MOUs with Business Enlarge the scope of information sharing from drug-related area to wider operations and performance Many national initiatives Dialogue sessions, signing of MOUs Observatory for Time Release, Integrity Partnership for IPR, trusted traders, AEO, etc. 15

Partnership based on dialogue & trust towards global connectivity www Partnership based on dialogue & trust towards global connectivity www.wcoomd.org