2. Workshop on the presentation of Customs Blueprints for countries of the ENP -Brussels 27/28 May 2008- Customs Blueprints- Pathways to modern customs Christiane Klahr European Commission DG TAXUD B1(International Affairs I)

4. Background: TAXUD Pre-accession strategy The political commitment to enable customs to fulfil their tasks Creation of the necessary legal framework Creation of the operational capacity of customs

5. Operational capacity: Development of Customs blueprints Developed jointly by EU, Member States and Candidate countries guidelines to build up –a modern customs administration and –the necessary operational capacity 13 + 9 (= 22) key areas identified

6. Blueprint Structure

7. Blueprint Structure: 4 categories 1.General management issues- related to administration/organisation of an organisation Legislation Organisation and management Human resource management Customs ethics Internal audit (new key area) Training

8. Blueprint Structure: 4 categories 2. Cooperation/Communication- mainly related to external partners Trade facilitation and relation with business Public relations and communication (new key area) Customs cooperation (new key area)

9. Blueprint Structure: 4 categories 3. Customs specific- operational/technical areas: –Revenue collection (only for CCs) –Risk management (new key area) –Common agricultural policy: export controls (new key area, only for CCs ) –Border and Inland control –Transit and movement of goods –Customs valuation (new key area) –Post-clearance control and audit (new key area) –Investigation and enforcement –Customs Enforcement on Intellectual Property Rights (IPRs) (new key area) –Supply chain security (new key area)

10. Blueprint Structure: 4 categories 4. Supporting- relating to Customs Infrastructure -Infrastructure and equipment –Customs laboratory –Information and communication technology

11. Blueprint structure: Key areas Selected by – priority of customs policy and work – experience with old blueprints – needs (e.g. for EU accession, WTO etc.) No given order of priority – all important – interlinked – depending on individual country needs

12. Blueprint Structure 4 Parts –Aim –Strategic Objective –Key indicator –Cross references Example of checklist for progress measurement and evaluation

13. Blueprint Structure: Aim Broad statement of future expectation Example: Post clearance control: “To develop an effective and efficient post-clearance control and audit service which allows the customs administration to implement its tasks (clearance and control of goods, revenue collection) and to facilitate trade by keeping a balance between trade facilitation and efficient customs controls”.

14. Blueprint Structure: Strategic objective Detailed statement supporting the aim, indicating desired level and quality of expected achievements Example: Post clearance control: “Development of a comprehensive legal basis which gives customs officers the necessary powers to carry out audit/post clearance controls efficiently and effectively”.

15. Blueprint Structure: Key indicator Minimum standards of recommended best practice. Measurable. Example: Post clearance control: Legal powers and responsibilities established, incl. –Power to exercise control –Inspection of records/commercial documents –Entry, visit of any place –Examination of goods and sampling Obligations and rights of traders… Sanctions and penalties… Agreements for cooperation and exchange of information

16. Blueprint Structure: Cross references Indicates very close link to other key areas. Not exhaustive. Example: Post clearance control: Trade Facilitation Customs cooperation Training Risk management

17. Blueprint structure: Some common charateristics Strategy Transparency : Policy, Systems, Legislation Management Responsabilities Resources Training Cooperation Trade Facilitation

18. Future use of Blueprints

19. Future use of blueprints: Why? EXPERIENCE and BEST PRACTICE… From 6 (1968) to 27 (2008) members … TO SHARE

20. Future use of blueprints: Who? Customs administrations of Candidate and Potential Candidate Countries for EU accession ENP and other countries wishing to align with EU standards and practice Countries preparing for WTO accession/commitments Countries/regions aiming at forming a customs union Countries undergoing customs reform Countries wishing to implement international standards

21. Future use of blueprints: How? Guideline for best practice/capacity building Management tool: evaluation, planning Donor coordination Guideline for experts/consultants Basis for TA project development/ assistance  Gaps and needs analysis

22. Gaps and Needs analysis

23. Gap Analysis Compare own situation with the one described in the relevant blueprint For each individual key indicator a) description of the current situation b) identified gaps should address: - technical shortfalls - behavioural shortfalls

24. Gap analysis - example Blueprint Key Indicator Current situation Technical shortfalls Behavioural shortfalls

25. Needs Analysis Based on the outcome of the gap analysis; To determine what needs to be done to bring performance in each customs key area up to the recommended best practice described; Solutions to close the gap and meet the need objective are identified; The final outcome is a kind activity list.

26. Needs Analysis - example

27. Summary of recommended process Customs Blueprints Gap Analysis Needs Analysis Impact assessed solutions BCMP/Action PlanTNA(timing/resources

28. Example: Checklist for planning, progress measurement and evaluation Example of a checklist Blueprint Area: Priority of the blueprint (regular/high/very high): Start date of activity: End date of activity:

29. Key recommendations Strategic approach required –Gaps/needs –Priorities –Responsabilities –Planning –Monitoring –Evaluation Make best use of resources (human and financial

30. Customs Blueprints e-version CD-ROM: Blueprints in html, doc, pdf format Prepared checklists for each blueprint Copyright EC – when adapted, source needs to be cited English only (at the moment) Pdf on the internet (TAXUD)

31. Blueprints are a tool- up to YOU to make use of it

32. Thank you for your attention! Further information: http://ec.europa.eu/taxation_customs/index_en.htm Blueprints online: http://ec.europa.eu/taxation_customs/common/publications/info_ docs/customs/index_en.htm 40 years EU customs union: http://ec.europa.eu/taxation_customs/40customs/index_en.htm Christiane Klahr European Commission DG TAXUD B1 Christiane.klahr@ec.europa.eu

34. Presentation of new key areas

35. New key areas: Internal audit Organisational standards: –Legal basis, clear definition of scope –Code of ethics for auditors (integrity, objectivity, confidentiality, competency) – Training of auditors Operational standards: –Audit strategy –Professional care –Quality assurance

36. New key areas: Public Relations and Communication Develop external communication funtion –With general public –Stakeholders (politics, business community, other authorities, opinion making circles (media etc.)…) Awareness raising and confidence building- strategic approach Clear, specific, timely, but with appropriate level of protection of confidentiality

37. New key areas: Customs cooperation Establish strategy and develop climate of partnership National, cross-border and international cooperation Sufficient administrative capacity (procedures, IT etc.)

38. New key areas: Risk management Strategy for systematic risk identification and implementation legally established Necessary powers/data available and accessible Harmonised model of risk management Determination of high risk areas Cooperation at policy and operational level for information exchange Internal communication Relations with public and Trade (e.g. MoU) Appropriate infrstructure

39. New key areas: Customs valuation Legislation in accordance with WTO rules Post clearance audit system Appeal system Specific training International cooperation

40. New key areas: Post clearance control and audit National customs strategy provides for audit policy Legal base provide for necessary control powers Management system (audit planning, methodology, IT equipment, guidelines) Rights of traders, trade faciliation Training of auditors International cooperation

41. New key areas: Customs Enforcement on IPR Clear Legal base defining role of customs in IPR enforcement in line with international standards Necessary control powers, incl. Customs action Center of operational expertise Customs-business partnership- cooperation with rightholders International cooperation, public awareness Training

42. New key areas: Supply Chain Security Legal basis according to international standards, ensuring necessary powers and information to customs Create systems that provide for –Trade facilitation: benefits to reliable traders AEOs) –Mutual recognition of trade partnership programmes (AEOs) –Risk management –Pre-arrival/pre-departure, pre-post audits etc. International agreements Equipement, training