1 Facilitating Trade in a Secure Environment Towards a collaborative approach to global trade facilitation and security standards UNECE/WCO November 2003, Geneva Kunio Mikuriya Deputy Secretary General, WCO

2 Need for standards from customs’ view Risk assessment based on information supplied at the earliest stage of supply chain, normally by those who generate information Risk assessment based on information supplied at the earliest stage of supply chain, normally by those who generate information Quality control of secure supply chain based on physical and procedural requirements (proper documentation, tracking and trace, physical security of premises etc.) Quality control of secure supply chain based on physical and procedural requirements (proper documentation, tracking and trace, physical security of premises etc.)

3 Prerequisites Multilateral approach, consistent with existing bilateral, regional approaches Multilateral approach, consistent with existing bilateral, regional approaches Two sides of the same coin: the efficient and effective Customs procedures Two sides of the same coin: the efficient and effective Customs procedures Based on existing international standards Based on existing international standards Voluntary compliance by business through extensive consultation with trade, customs and other international organizations Voluntary compliance by business through extensive consultation with trade, customs and other international organizations

4 WCO ’s efforts ACI Guidelines; information requirements and Customs Business Processes ACI Guidelines; information requirements and Customs Business Processes Business Partnership Guidelines; physical and procedural requirement and provide link to ACI Guidelines Business Partnership Guidelines; physical and procedural requirement and provide link to ACI Guidelines Secure and predictable supply chain with facilitative effects Secure and predictable supply chain with facilitative effects

5 ACI Guidelines Customs Data Model; a standardized set of data elements transferred in electronic format, based on UNTDED and UN Layout Keys Customs Data Model; a standardized set of data elements transferred in electronic format, based on UNTDED and UN Layout Keys Unique Consignment Reference (UCR); origin-to-end identification numbering system of consignment, based on existing business standard (ISO) Unique Consignment Reference (UCR); origin-to-end identification numbering system of consignment, based on existing business standard (ISO) Almost completed but need practice and feed-back for further improvement (a living document) Almost completed but need practice and feed-back for further improvement (a living document)

6 Business Partnership Guidelines Guidelines leading to standards Guidelines leading to standards High-level principles agreed in June Council sessions High-level principles agreed in June Council sessions Framework for industry-specific guidelines developed and available Framework for industry-specific guidelines developed and available Several business organizations volunteered develop examples of Guidelines for their sector Several business organizations volunteered develop examples of Guidelines for their sector

7 Standard setting for Business A collaborative approach involving all players necessary A collaborative approach involving all players necessary WCO work based on existing standards and inputs from UN agencies, other governmental and non-governmental international organizations WCO work based on existing standards and inputs from UN agencies, other governmental and non-governmental international organizations All standard setting at different forums should take into account the emerging WCO standards and guidelines, as they will affect all players in the supply chain All standard setting at different forums should take into account the emerging WCO standards and guidelines, as they will affect all players in the supply chain

8 Supply Chain Security Factory Truck Barge Ship Final Destination Truck Container terminal Storage area PortShipPortShip Container terminal Ship Container terminal ISPS Code Import Export 30th June 2004! Standards for Business incorporating ACI guidelines Business Partnership Guidelines

9 Way forward WCO Supports standard setting for business WCO Supports standard setting for business An ISO standard could also be useful in the future An ISO standard could also be useful in the future Need for involvement and consultation of all stakeholders, especially the business sector to assure their voluntary compliance with customs requirement Need for involvement and consultation of all stakeholders, especially the business sector to assure their voluntary compliance with customs requirement Partnership based on trust is the key for the way forward (Brian Parkinson, ICS, at the WCO Task Force, Oct. 2003) Partnership based on trust is the key for the way forward (Brian Parkinson, ICS, at the WCO Task Force, Oct. 2003)