New International Customs Standards toward E-customs Customs Standards toward E-customs E-Customs to E-Commerce, & E-Commerce for E-Government GH. Saffari Taheri Director General of Training & Research Department I. R. IRAN Customs Adm. (IRICA)

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Evolution of customs Revenue Collection of import taxes (duties & excise) Protection of Society (drug trafficking, firearms, environment, counterfeit etc.) Economic Development (trade facilitation) Customs function Protection of Economic Interests (domestic industry) Security (shifting focus to entire supply chain) IRICA-TRC, SAF-TAH

Main Challenges for customs Administrations Achieve effective and efficient control in discharging its responsibilities (revenue, protection of society, security) Achieve effective and efficient control in discharging its responsibilities (revenue, protection of society, security) Respond to the growing need for trade facilitation Respond to the growing need for trade facilitation (economic competitiveness / business environment) (economic competitiveness / business environment) Standard / best practice for modern customs procedures (WCO’s 175 member customs administrations) Standard / best practice for modern customs procedures (WCO’s 175 member customs administrations) International cooperation International cooperation Capacity building Capacity building IRICA-TRC, SAF-TAH

The Main Customs Mission State ment Making a logic balance between Compliance & Facilitation IRICA-TRC, SAF-TAH

Principles for modern customs (E-Customs) Risk management Risk management Partnership with trade Partnership with trade Use of Information Technology Use of Information Technology Contained in the WCO revised Kyoto Convention for modern customs procedures Contained in the WCO revised Kyoto Convention for modern customs procedures IRICA-TRC, SAF-TAH

Risk management Collect and analyze information to identify high risk consignments (selectivity) Collect and analyze information to identify high risk consignments (selectivity) Accurate information in a timely manner Accurate information in a timely manner (advance information), (API & ACI) (advance information), (API & ACI) From the right party in business and other government agencies From the right party in business and other government agencies G2G information exchange G2G information exchange Better resource allocation Better resource allocation Facilitate legitimate trade Facilitate legitimate trade IRICA-TRC, SAF-TAH

Partnership with trade Understanding of customs requirements and Improved compliance Understanding of customs requirements and Improved compliance Cooperation in providing information Cooperation in providing information Simplified procedures for authorized traders Simplified procedures for authorized traders Audit-based control Audit-based control Consultation (responding to the need of trade community) Consultation (responding to the need of trade community) Transparency and predictability Transparency and predictability Cost reduction and efficiency gain Cost reduction and efficiency gain Simplification (reduction of face-to-face interaction) Simplification (reduction of face-to-face interaction) IRICA-TRC, SAF-TAH

Use of Information Technology E-commerce (doing business electronically) E-commerce (doing business electronically) Availability of data in the commercial information system (paperless) Availability of data in the commercial information system (paperless) Infrastructure for automated system and business engineering Infrastructure for automated system and business engineering Use of traders’ IT system Use of traders’ IT system “Single window” for trading partners, supported by customs IT, interfaced with other government agencies “Single window” for trading partners, supported by customs IT, interfaced with other government agencies Use of international standards in the interchange of electronic data Use of international standards in the interchange of electronic data IRICA-TRC, SAF-TAH

Use of standards for E-Customs WCO Kyoto IT Guidelines WCO Kyoto IT Guidelines Assist customs in making decision to computerize, developing system, and tackling common issues (legal, security, interface etc)Assist customs in making decision to computerize, developing system, and tackling common issues (legal, security, interface etc) WCO Data Model WCO Data Model Standardize electronic message format for transferring dataStandardize electronic message format for transferring data Unique Consignment Reference (UCR) Unique Consignment Reference (UCR) Enable customs to control the movement of goods in trade supply chain by issuing a reference number to each consignmentEnable customs to control the movement of goods in trade supply chain by issuing a reference number to each consignment IRICA-TRC, SAF-TAH

A comprehensive global rules and standards for E-Customs WTO Trade Facilitation Negotiations WTO Trade Facilitation Negotiations Complementary to WCO standardsComplementary to WCO standards Iran Accession Working Party (established on 26 May 2005)Iran Accession Working Party (established on 26 May 2005) WCO Framework of Standards to secure and facilitate global trade WCO Framework of Standards to secure and facilitate global trade Adoption at the WCO Council (23-25 June 2005)Adoption at the WCO Council (23-25 June 2005) A structured framework to prevent potential terrorist threats, deter trans-national organized crime and smugglers, and protect revenue collection, while facilitating legitimate tradeA structured framework to prevent potential terrorist threats, deter trans-national organized crime and smugglers, and protect revenue collection, while facilitating legitimate trade IRICA-TRC, SAF-TAH

WCO Framework of Standards - Four core elements Harmonizing advance electronic manifest information to allow risk assessment Harmonizing advance electronic manifest information to allow risk assessment Inbound, outbound, transitInbound, outbound, transit Using a consistent risk management approach Using a consistent risk management approach Using non-intrusive detection equipment to effect examinations Using non-intrusive detection equipment to effect examinations Outbound inspectionOutbound inspection Benefits to nations, customs and business Benefits to nations, customs and business IRICA-TRC, SAF-TAH

Two pillars of the WCO Framework Customs-to-customs pillar Customs-to-customs pillar Encourage cooperation among customs administrations on the basis of common and accepted standards, including the revised Kyoto Convention, Data Model, UCREncourage cooperation among customs administrations on the basis of common and accepted standards, including the revised Kyoto Convention, Data Model, UCR Use of advance electronic information to identify high-risk containers or cargoUse of advance electronic information to identify high-risk containers or cargo Outbound, inbound, transit security inspection of cargoOutbound, inbound, transit security inspection of cargo Custom-to-business pillar Custom-to-business pillar Establish partnershipEstablish partnership Identify business with a high degree of security guarantee as “Authorized Economic Operator (AEO)”Identify business with a high degree of security guarantee as “Authorized Economic Operator (AEO)” Tangible benefits to AEOTangible benefits to AEO Quicker movement of low-risk cargo, uniformity and predictability Quicker movement of low-risk cargo, uniformity and predictability

Implementation of the WCO Framework Phased approach Phased approach In accordance with the each administration’s capacity and infrastructureIn accordance with the each administration’s capacity and infrastructure Legislative authorityLegislative authority Capacity building Capacity building Accurate diagnosis for preparing country-specific programsAccurate diagnosis for preparing country-specific programs WCO diagnostic tools WCO diagnostic tools Sustainable human and financial resourcesSustainable human and financial resources Political supportPolitical support Integrity as a cornerstoneIntegrity as a cornerstone IRICA-TRC, SAF-TAH

Time Release Study To measure the average time between the arrival and the release of goods – and each step To measure the average time between the arrival and the release of goods – and each step Useful tool to : Useful tool to : Identify problems and bottlenecks, including those caused by customs, other border agencies and trade; Identify problems and bottlenecks, including those caused by customs, other border agencies and trade; Measure the performance of IT and other policy measures; and Measure the performance of IT and other policy measures; and Stimulate efforts to improve the efficiency and effectiveness Stimulate efforts to improve the efficiency and effectiveness WCO guide available WCO guide available Software developed in cooperation with the World Bank Software developed in cooperation with the World Bank IRICA-TRC, SAF-TAH

مجبور نيستم از ببر تندتر بدوم، فقط بايد از تو جلو بزنم ! دو مرد كه به جنگل رفته بودند ناگهان با ببري روبرو شدند. يكي از آنها سريعا كفش ورزشي پوشيد. ديگري پرسيد : " واقعا فكر مي كني با اين كفش ها بتواني از اين ببر تندتر بدوي؟ " دان تپ اسكات، به همه مديران اينگونه هشدار مي‌دهد كه، در سال 2020 وقتي كه به پشت سر خود نگاه كنيم، احتمالاً خواهيم ديد كه شركتها به دو دسته تقسيم شده‌اند، آنهايي كه تحولات اطراف خود را با حساسيت دنبال مي‌كنند و از مهلكه مي‌رهند و آنهايي كه در پارادايم‌هاي قديمي خود گرفتار آمده و از فعاليت در اقتصاد نوين باز مي‌مانند.

Thank you for your kind attention! GH. Saffari Taheri Director General of Training & Research Department I. R. IRAN Customs Adm. (IRICA) IRICA-TRC, SAF-TAH