Customs Reform – Challenges and Solutions/ Kiev December

Private and confidential Customs Reform – Challenges and Solutions Reactive approach to its business is being replaced by far more proactive style Increased “partnerships” with business Focus on assisting in the creation of a “business enabling environment” Increased expectations of public and private sectors in terms of performance 2

Private and confidential Customs Reform – Challenges and Solutions Huge increases in the level of world wide trade and movement of people Greater technical complexity in the modern world Deteriorating security Significant changes in focus dependant upon political and economic climate 3

Private and confidential Customs Reform – Challenges and Solutions The role of Customs can vary but generally includes some of the following elements: Law Enforcement and Security Protecting Society Facilitating Trade and increasing National Competitiveness Supply Chain Security Policy Advice Provision of Trade Statistics Revenue Generation 4

Private and confidential Customs Reform – Challenges and Solutions SIDE 1 TRADE FACILITATION Delivering a Trade Enabling Environment Reduce clearance times Simplification and Harmonisation of Legislation and Procedures Transparent processes Increased predictability Customs – Business Partnerships Stakeholder involvement Communication and access to information 5 SIDE 2 LAW ENFORCEMENT Pressure to increase Revenue Deteriorating security across world Increased sophistication of criminal activity Greater complexity of trade transactions Emphasis on protecting society (drugs, weapons, unsafe medicines, intellectual property rights) Responsibilities under regional and international protocols = BALANCE

Customs Reform – Challenges and Solutions/ So given these challenges, what can Customs do to try and achieve an acceptable balance ? 6

Private and confidential Customs Reform – Challenges and Solutions Essential to use intelligence and analysis as means of directing limited resources to areas of greatest risk Move controls away from border where possible (PCA) Greater Customs 2 Customs and Customs 2 Business Cooperation/Partnerships Increase technical and vocational capacity of staff Automation 7

Private and confidential Customs Reform – Challenges and Solutions Data and Information/Intelligence Sharing AEO Programmes Stakeholder Involvement Mutual Assistance Communication 8

Private and confidential Customs Reform – Challenges and Solutions Communication: Ensure that the role of Customs is understood (internally and externally). Customs supports trade, Customs protects society Clear and consistent rules and regulations will result in more predictability and transparency and therefore greater inward investment. Standardise procedures and processes across the Country Customs have a duty to apply laws in a manner which is fair and transparent (level playing field). Reward compliance. Businesses and Civil Society as a whole have a duty to be honest and compliant 9

Private and confidential Customs Reform – Challenges and Solutions DCFTA: Improved access to EU markets – 500 million people within a couple of hours EU rules complicated – but if you can meet them you can trade anywhere Customs can support exporters – simplification, reduce unnecessary documents and processes Reduced clearance times Revenue (Customs duties) likely to reduce 10

Hot Off The Press/ Ukraine has ratified the WTO TFA - With 63 member states now having done so, it leaves about 40 ratifications short before TFA becoming legally binding through the WTO Agreement….plenty of ramifications for Customs! 11

Thank you /