Delivering Trade Facilitation Customs Modernisation An Essential Component for Effective Border Management Workshop on Trade Facilitation and Aid for Trade 12-13 March 2009, Addis Ababa Trevor Simumba - Senior Advisor- Customs & Trade Facilitation Valentina Mintah – Senior Solutions Specialist –Public Finance Management IT

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Crown Agents World Wide Europe and Former Soviet Union: Albania Azerbaijan Bosnia Bulgaria Denmark Georgia Kyrgyzstan Macedonia Romania Ukraine Russia United Kingdom Over 40 offices worldwide Asia: Afghanistan Bangladesh India Japan Malaysia Pakistan Philippines Singapore Vietnam Americas/Caribbean: Bahamas USA Miami USA Washington This is our current range of international offices and agents, with just over half being run by permanent CA staff. This Office network will be rationalised over the coming months in accordance with the Strategic Review. So what do they do and why do we need them? Middle East: Iraq Jordan United Arab Emirates Yemen Africa: Angola Mozambique Sudan Ethiopia Nigeria Tanzania Ghana Rwanda Uganda Kenya Sierra Leone Zambia Malawi Zimbabwe Australasia: New Zealand

What is Trade Facilitation? The simplification, harmonisation, standardisation, and modernisation of trade procedures* in the interests of reducing transaction costs between government and business. *Trade Procedures being understood as activities, practices and formalities associated with the administration of the transference of goods and services across national borders.

World Trade Organisation World Customs Organisation Legal and Policy Framework World Trade Organisation GATT Articles V, VII, and X Doha Round TF dossier World Customs Organisation Kyoto Convention, SAFE Framework of Standards United Nations UNECA, UNCEFACT, UNCTAD Regional Institutions EU, COMESA, ECOWAS, SADC/SACU NAFTA, Mercosur, ASEAN, etc. Trade Facilitation Operational Components Efficient MIS Regulatory Transparency GATT Articles: V – freedom of transit VII – fees and formalities X – regulatory transparency Integrated Border Management = government inter-agency / departmental cooperation Integrated Border Management (IBM) Simplified Procedures Service-Level Agreements Government – Business Dialogue Application of International Standards Risk-Based Controls Single Window Harmonisation

The Challenges for Customs Administrations Trade Facilitation The Challenges for Customs Administrations Striking the right balance between trade facilitation, customs control and security Need for greater mutual understanding between public and private sectors, based on genuine partnership and consultation To increase awareness by public authorities of the wider impact their actions have upon international supply chains and its consequences for the wider economy To adopt an inter-agency ‘single window’ operational approach – Integrated Border Management Move away from transaction based control systems to audit-based whole trader control - ‘trusted trader’ To fully take into account business practices when implementing legislative, procedural and ICT based change To develop a professional knowledge based service culture Companies are increasingly competing on the efficiency of their globalised supply chains. Modern forms of international production networks are splitting the value chain into ever smaller slices which can be produced in different countries depending upon their comparative advantage for the different portions of the value chain. To achieve the speed these require firms have to be able to reassure customs authorities (particularly in the US and other OECD countries) on the security of their supply chains. WCO Framework of Standards and the Authorised Economic Operator.

Case Study: Angola Trade Facilitation in Practice – Key Results to date Customs clearance time for business slashed from an average of 21 days to 48 hrs. Introduction of risk-based controls, speeding up the flow for legitimate traders. 1,731% increase in government revenue between years 2000 (baseline) and 2009 (up from U$215m to U$4bn+ respectively). 1st SADC country to implement the SADC format single administrative document. Automated customs entry processing (TIMS) at Luanda’s air and sea ports and key regional border posts (including direct trader input). New Consolidated Customs Code & Regulations introduced, aligned with internationally agreed standards e.g. WTO Rules for Customs Valuation. Customs Code of Conduct and ‘customer’ Service Standards adopted, improving transparency and predictability for business

Case Study: Angola How they were achieved Key to success – close working partnership between CA and the Government of Angola with a strategic approach High level policy commitment to change - political will A detailed review of the legal and policy framework to adopt best practice and align with recognised international and regional standards (e.g. WCO, WTO and SADC) Strengthening capacity of Customs personnel through: staff and management development programmes, mentoring schemes and graduate recruitment The streamlining of processes and procedures in line with recognised international standards (e.g. UN/CEFACT)

Lessons Learned Early ‘buy in’ by key stakeholders in Government and private sector Early development and implementation of systems and processes to enhance integrity and transparency The centrality of client country ownership throughout the programme (e.g. joint working and senior level mentoring) Adoption of appropriate information technology (TIMS) to support the re-engineering of processes and procedures The importance of collaborative working based upon institution transformation through a sustained long term technical assistance support programme to instil best practice aligned with internationally recognised standards

Crown Agents & Single Window An important building block for the realization of the Trade Facilitation Goal

Single Window Environment Interoperability Ubiquitous Anytime Access Shipping Line Manifest Data report agent Forwarder Trade Firm Bank National Single Window Trade Related Agencies Data Provider Communication Network Service Provider Airline Bonded Transportation Inspection Company Customs Broker Warehouse All stakeholders stand to benefit from SIMPLE, TRANSPARENT and EFFECTIVE trade processes.

Advanced Tier Agencies Service Offerings Model 1: Targeted Model Advanced Tier Agencies SOLUTION Automation Mid Tier Agencies SOLUTION Base Tier Agencies SOLUTION Operational Efficiency

All Inclusive Single Window Adopted Model Model 2: All Inclusive Model All Inclusive Single Window Model Automation Operational Efficiency

Alignment - Solution A Business model that adapts to each participant’s environment Technology that supports BOTH advanced organisations (XML) and those reliant on document-based processes (PDF) Alignment of technology components Minimal entry requirements Little or no re-engineering required Fast Scale Up path WORKING TOWARDS AN AGREED VISION AND STANDARD

Alignment – Holistic Approach Comprehensive Gap and Operations Analysis Alignment with existing Trade initiatives Leveraging and amplifying current and planned programmes Seeking value from all existing programmes Interoperability Integration with Regional Single Window ACROSS ALL AGENCIES

Technology Evaluation Crown Agents Single Window Roadmap Detailed approach that integrates Strategy Confirmation and Goal Definition Technology Evaluation

Public Sector Benefits Benefits of a Single Window Approach ECONOMY - PUBLIC SECTOR - PRIVATE SECTOR – CITIZEN Public Sector Benefits Boost to Economic Growth Improved Competitiveness Increased Government Revenue Co-ordination of the controls and inspections of the various governmental authorities Response to Heightened Security Needs A professional, transparent, accountable, auditable, efficient and automated Customs Service INTERNATIONAL COMPETITIVE ADVANTAGE

Private Sector Benefits Benefits of a Single Window Approach (cont’d) PRIVATE SECTOR – PUBLIC SECTOR – CITIZEN - ECONOMY Private Sector Benefits Assuring Transparency Predictability Saving Time –Clearance, Compliance etc Cost Savings Creating Customer Value Improving Supply Chain Security and Performance INTERNATIONAL COMPETITIVE ADVANTAGE

Questions & Answers PLEASE FEEL FREE TO CONTACT US: THANK YOU FOR YOUR ATTENTION. PLEASE FEEL FREE TO CONTACT US: Trevor Simumba: trevor.simumba@crownagents.co.uk Valentina Mintah: valentina.mintah@crownagents.co.uk Kevin Atkinson: kevin.atkinson@crownagents.co.uk www.crownagents.com