Lebanese Customs Project for Single Window 3-4 March 2011 UN House, Beirut, Lebanon Organized by ESCWA For your convenience this presentation is equipped with a Snooze timer

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Description of NAJM Customs Reform Project Political Economy of Reform: Stakeholder Square Model and NAJM NAJM Time line NAJM as a balancing act between Trade Facilitation and Customs Enforcement Key Performance Indicators, Lessons Learned. IIIIIIIVV

A reform project in Lebanese Customs focused on automation, modernization, and streamlining of procedures. A model for management of reform projects based on dynamics of interaction between the different stakeholders. Using the model ; how NAJM attempted to balance Trade Facilitation and Customs Enforcement Lessons learned and outlook for future. Snooze timer: Slide 4 out of 27

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The Reform Program Political Authority Resource Provider Technical Service Provider Executing Agency Reform Agenda: What to do & Why? Funding Modalities Political Will and Commitment Capacity Building & Sustainability Political Economy of Reform : The Stakeholder Square Model - Generic Case

The Reform Program: NAJM Political Authority: MOF Resource Provider: World Bank, etc … Technical Service Provider: UNCTAD Executing Agency: Customs Political Economy of Reform : The Stakeholder Square Model - Customs NAJM Project Reform Agenda: MOF to facilitate trade, enhance control, align procedures with international standards Donor Community to provide financing of technology and infrastructure Reform Agenda: MOF to facilitate trade, enhance control, align procedures with international standards Donor Community to provide financing of technology and infrastructure Funding and Financing: MOF Managed Pool Fund: World Bank, IMF, Private Sector, EU Association Support, etc Financing UNCTAD ASYCUDA software and other Local Providers Funding and Financing: MOF Managed Pool Fund: World Bank, IMF, Private Sector, EU Association Support, etc Financing UNCTAD ASYCUDA software and other Local Providers Political Commitment: MOF to secure support for Legislative, Procedural & Organizational Change Customs Management to fully engage in reform process Political Commitment: MOF to secure support for Legislative, Procedural & Organizational Change Customs Management to fully engage in reform process Knowledge Transfer: UNCTAD to rely on local expertise in project management and technology development Customs to mobilize skilled and motivated staff for Project Knowledge Transfer: UNCTAD to rely on local expertise in project management and technology development Customs to mobilize skilled and motivated staff for Project

Project Timeline Snooze timer: Slide 8 out of 27

Lebanese Customs NAJM Project Timeline Chronology of Reforms

Lebanese Customs NAJM Project Timeline International Trade Statistics UNCTAD ASYCUDA / NAJM Simplified Harmonized System Tariff Single Administrative Document SAD Simplified Clearance Procedure Risk Management Snooze timer: Slide 10 out of 27

Lebanese Customs NAJM Project Timeline Modern Customs Law Online services NOOR Tax Identification Number TIN Post Clearance Audit NAR Regional Training Center with WCO E-Gov initiatives with MOET, Port Authority, CNSS Snooze timer: Slide 11 out of 29

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Trade Facilitation Customs Enforcement NAJM Balancing Act

Trade Facilitation Customs Enforcement Risk Selectivity Criteria 1997 Common Tax Payer Id with MOF 2002 Post Clearance Audit NAR 2003 MANAR (e-MANIFEST) 2005 Green Lane Release 1997 LITE (Website Services) 1999 NOOR I – DTI Data Entry 2001 NOOR II – DTI Self Assessment 2005 NAJM Balancing Act Snooze timer: Slide 14 out of 27

Trade Facilitation Customs Compliance NAJM Balancing Act International Trade Sector represents 60% of GDP Customs contributes 40% to government revenue

Trade Facilitation Customs Enforcement NAJM Balancing Act In order to achieve its core mission; NAJM must enable customs to provide trade community with timely information regarding their rights, obligations, and to facilitate their customs clearance operations. empower customs for enforcing laws and regulations based on intelligent Risk Management which focuses resources on non compliant practices Snooze timer: Slide 16 out of 27

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NAJM key performance indicators: Snooze timer: Slide 18 out of 27

NAJM key performance indicators: Green Line Ratio, Clearance Time and Effective Tariff Rate

PAYPAY NAJM key performance indicators: Decomposing Clearance Time throughout period 4- Payment and Release 3- Red: Inspection 3- Green: Release Selectivity & Risk Management 2- Acceptance and Registration of Declaration 1- Data Entry of Declaration CLEARANCEPATHCLEARANCEPATH INSPECTINSPECT REGREG Snooze timer: Slide 20 out of 27

A simplified Customs Clearance process leveraging Lessons Learned, Available Technology and World- Wide Best Practice NAJM 2.0 Snooze timer: Slide 21 out of 27

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Prepare your Customs Declaration Online NOOR Assess your Declaration to find out how much you need to pay Secure Other Governmental Approvals online e-GOV Your bank Immediate Release Green Post Clearance Control Blue Documentary check Yellow Inspection Physical / X-Ray Red Release and Exit Link with Port Auth and T/Os Simplified Customs Clearance: NAJM 2.0 Trader ZoneCustoms Zone

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New Process Advantages Electronic end-to-end (No paper Underworld) Clear segregation between Trader and Customs zone (responsibility for delays) Self assessment E-Payment through commercial banks E-Gov integration Leveraging Technology of ASYCUDAWORLD Logistics flow (Inspection and release) Snooze timer: Slide 25 out of 27

Take Home Tips in Simplification  People run systems; not the other way  Don’t dismiss the obvious: Consult then Propose  Change Ownership vs. Change Management  Incremental Change: Bite as much as you can chew  Instead of “Paper-less” speak of “Less Paper”  Instead of “Cash-Less” speak of “Less Cash”   Everybody did his homework; Time to work together Snooze timer: Slide 26 out of 27

Thank you for your time Ghassan Nasrallah Acting Chief of Service for Customs Computer Center