1. 1 FRAMEWORK OF STANDARDS TO SECURE AND FACILITATE GLOBAL TRADE ( June 2005) World Customs Organization FRAMEWORK OF STANDARDS TO SECURE AND FACILITATE GLOBAL TRADE ( June 2005) Copyright © 2005 World Customs Organization. All rights reserved. Requests and inquiries concerning translation, reproduction and adaptation rights should be addressed to copyright@wcoomd.org.

2. 2 Framework of Standards Adoption at the Council in June 2005 Adoption at the Council in June 2005 FrameworkFramework Letter of Intent to implement the FrameworkLetter of Intent to implement the Framework Letter of Intent Letter of Intent 144 Members have indicated intention to implement144 Members have indicated intention to implement Implementation of the Framework Implementation of the Framework Self-assessment checklist sent to 95 administrations to assess their CB needsSelf-assessment checklist sent to 95 administrations to assess their CB needs

3. 3 The Framework of Standards (SAFE) SAFE is a comprehensive instrument that covers all areas of Customs controls SAFE is a comprehensive instrument that covers all areas of Customs controls Gives equal importance to revenue collection, trade facilitation, and security Gives equal importance to revenue collection, trade facilitation, and security Incorporates modern Customs principles (based on Revised Kyoto Convention) Incorporates modern Customs principles (based on Revised Kyoto Convention)

4. 4 Objectives of the Framework of Standards Establish standards that provide supply chain security and facilitation to goods being traded internationally; Enable integrated supply chain management for all modes of transport; Enhance the capabilities of Customs administrations to meet the challenges and opportunities of the 21st Century; Copyright © 2005 World Customs Organization. All rights reserved. Requests and inquiries concerning translation, reproduction and adaptation rights should be addressed to copyright@wcoomd.org.

5. 5 Objectives of the Framework of Standards Strengthen networking arrangements between Customs administrations to improve their capability to detect high-risk consignments; Promote co-operation between the Customs and business communities; Champion the seamless movement of goods through secure international trade supply chains. Copyright © 2005 World Customs Organization. All rights reserved. Requests and inquiries concerning translation, reproduction and adaptation rights should be addressed to copyright@wcoomd.org.

6. 6 Introduction Secure & facilitate trade, improve customs operations Secure & facilitate trade, improve customs operations Modern customs principles Modern customs principles Risk management, technology, partnership etc.Risk management, technology, partnership etc. Inclusive of the existing WCO instruments, incl. Revised Kyoto, improved to address security and facilitationInclusive of the existing WCO instruments, incl. Revised Kyoto, improved to address security and facilitation Avoid unnecessary burden Avoid unnecessary burden Different sets of requirementsDifferent sets of requirements Duplication with other agencies’ requirementsDuplication with other agencies’ requirements  Modernize customs and prepare for the 21 st Century Security and facilitation as two sides of the same coin – efficient & effective customs Security and facilitation as two sides of the same coin – efficient & effective customs

7. 7 Four core elements Use of harmonized, advance electronic information to identify high-risk cargo Use of harmonized, advance electronic information to identify high-risk cargo Inbound, outbound, transitInbound, outbound, transit Consistent risk management Consistent risk management Security threatsSecurity threats Inspection on outbound cargo, using non-intrusive detection technology Inspection on outbound cargo, using non-intrusive detection technology At the reasonable request of receiving nationAt the reasonable request of receiving nation Comparable risk targeting methodologyComparable risk targeting methodology Benefit of facilitation for legitimate trade Benefit of facilitation for legitimate trade Business partnershipBusiness partnership

8. 8 Two pillars Customs-to-customs network arrangements Customs-to-customs network arrangements 11 standards11 standards Encourage cooperation among Customs administrations on the basis of common and accepted standardsEncourage cooperation among Customs administrations on the basis of common and accepted standards Use of advance electronic information to identify high- risk cargoUse of advance electronic information to identify high- risk cargo Customs-to-business partnership Customs-to-business partnership 6 standards6 standards 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, etc. Quicker movement of low-risk cargo, uniformity and predictability, etc.

9. 9 Benefits Nation/governments Nation/governments Security and facilitation – economic growth & developmentSecurity and facilitation – economic growth & development Improve revenue collection, proper application of national laws and regulationsImprove revenue collection, proper application of national laws and regulations Economic & social protection, support foreign investmentEconomic & social protection, support foreign investment Customs Customs Exchange of timely and accurate informationExchange of timely and accurate information Improve control, better allocation of resourcesImprove control, better allocation of resources Customs reformCustoms reform Business Business Secure, facilitate and promote international tradeSecure, facilitate and promote international trade Authorized Economic OperatorsAuthorized Economic Operators

10. 10 Authorized Economic Operator A party involved in the international movement of goods in whatever function that has been approved by or on behalf of a national Customs administration as complying with WCO or equivalent supply chain security standards. Authorized Economic Operators include inter alia manufacturers, importers, exporters, brokers, carriers, consolidators, intermediaries, ports, airports, terminal operators, integrated operators, warehouses, distributors.

11. 11 Tangible Benefits for Businesses Reduced examinations Reduced examinations Faster processing of shipments Faster processing of shipments Lower administrative costs Lower administrative costs Lower insurance rates in some cases Lower insurance rates in some cases Creation of an international system for identifying private businesses that offer a high degree of security Creation of an international system for identifying private businesses that offer a high degree of security

12. 12 Enhanced risk management Shift from 100% physical inspection to intelligence-based selective approach Shift from 100% physical inspection to intelligence-based selective approach Advance data – pre-arrival risk assessment Advance data – pre-arrival risk assessment Reduction in clearance time Reduction in clearance time Time Release Study Time Release Study A consistent risk management A consistent risk management WCO Global Information and Intelligence Strategy WCO Global Information and Intelligence Strategy Harmonize advance electronic information (security) Harmonize advance electronic information (security) Contained in the Customs Data Model Contained in the Customs Data Model

13. 13 Customs Data Model A maximum framework of standard datasets / electronic message formats for border procedures A maximum framework of standard datasets / electronic message formats for border procedures B2B, B2G, G2G exchange of information B2B, B2G, G2G exchange of information  UN/EDIFACT – interoperable with trade/transport  Current work for regular update Information requirements of other agenciesInformation requirements of other agencies Single WindowSingle Window  Unique Consignment Reference (UCR) Bring together information to monitor and facilitate tradeBring together information to monitor and facilitate trade Electronic staple – access key to tracking, audit, reconciliationElectronic staple – access key to tracking, audit, reconciliation

14. 14 Framework of Standards Advance IAdvance I Advance Information Risk Management Inspection Benefits Customs /Customs Customs/Trade ISCM Data Model UCR RKC HS To Secure and Facilitate Trade 120 countries Capacity Building

15. 15 Implementation of the Framework Phased approach Phased approach In accordance with each administration’s capacity and legislative authority In accordance with each administration’s capacity and legislative authority A holistic approach A holistic approach Political will and integrity Political will and integrity Involve other border agencies – integrated border management and control Involve other border agencies – integrated border management and control WCO Capacity Building WCO Capacity Building

16. 16 Implementation of the Framework Three phase approach Three phase approach 62 Diagnostic Missions completed and 46 in planning stage (Phase 1) 62 Diagnostic Missions completed and 46 in planning stage (Phase 1) 14 in action planning/implementation phase (phase 2) WCO Capacity Building 14 in action planning/implementation phase (phase 2) WCO Capacity Building Phase 3 is WCO monitoring Phase 3 is WCO monitoring

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