1. Delivering Trade Facilitation
Customs Modernisation
An Essential Component for
Effective Border Management
Workshop on Trade Facilitation and Aid for Trade
12-13 March 2009, Addis Ababa
Trevor Simumba - Senior Advisor- Customs & Trade Facilitation
Valentina Mintah – Senior Solutions Specialist –Public Finance Management IT

2. Owned by The Crown Agents Foundation
Foundation’s social and developmental objectives
Owned by The Crown Agents Foundation
Permanent Members
Elected Members
Crown Agents
Profit
Crown Agents is a private limited company
Group of companies/subsidiaries ultimately owned by The Crown Agents Foundation
Permanent Members – 13
Elected Members - 26
Company limited by guarantee, owned by the members
Non profit distributing beyond allocation of funds to developmental purposes – training scholarships (max £200K)

3. Crown Agents World Wide
Europe and Former Soviet Union:
Albania Azerbaijan
Bosnia Bulgaria
Denmark Georgia
Kyrgyzstan Macedonia
Romania Ukraine
Russia
United Kingdom
Over 40 offices worldwide
Asia:
Afghanistan
Bangladesh
India
Japan
Malaysia
Pakistan
Philippines Singapore
Vietnam
Americas/Caribbean:
Bahamas
USA Miami
USA Washington
This is our current range of international offices and agents, with just over half being run by permanent CA staff. This Office network will be rationalised over the coming months in accordance with the Strategic Review.
So what do they do and why do we need them?
Middle East:
Iraq
Jordan
United Arab Emirates
Yemen
Africa:
Angola Mozambique Sudan
Ethiopia Nigeria Tanzania
Ghana Rwanda Uganda
Kenya Sierra Leone Zambia
Malawi Zimbabwe
Australasia:
New Zealand

4. What is Trade Facilitation?
The simplification, harmonisation, standardisation, and modernisation of trade procedures* in the interests of reducing transaction costs between government and business.
*Trade Procedures being understood as activities, practices and formalities associated with the administration of the transference of goods and services across national borders.

5. World Trade Organisation World Customs Organisation
Legal and Policy Framework
World Trade Organisation
GATT Articles V, VII, and X
Doha Round TF dossier
World Customs Organisation
Kyoto Convention,
SAFE Framework of Standards
United Nations
UNECA, UNCEFACT, UNCTAD
Regional Institutions
EU, COMESA, ECOWAS, SADC/SACU
NAFTA, Mercosur, ASEAN, etc.
Trade Facilitation
Operational Components
Efficient MIS
Regulatory
Transparency
GATT Articles:
V – freedom of transit
VII – fees and formalities
X – regulatory transparency
Integrated Border Management = government inter-agency / departmental cooperation
Integrated
Border Management
(IBM)
Simplified
Procedures
Service-Level
Agreements
Government –
Business Dialogue
Application
of International
Standards
Risk-Based
Controls
Single Window
Harmonisation

6. The Challenges for Customs Administrations
Trade Facilitation
The Challenges for Customs Administrations
Striking the right balance between trade facilitation, customs control and security
Need for greater mutual understanding between public and private sectors, based on genuine partnership and consultation
To increase awareness by public authorities of the wider impact their actions have upon international supply chains and its consequences for the wider economy
To adopt an inter-agency ‘single window’ operational approach – Integrated Border Management
Move away from transaction based control systems to audit-based whole trader control - ‘trusted trader’
To fully take into account business practices when implementing legislative, procedural and ICT based change
To develop a professional knowledge based service culture
Companies are increasingly competing on the efficiency of their globalised supply chains. Modern forms of international production networks are splitting the value chain into ever smaller slices which can be produced in different countries depending upon their comparative advantage for the different portions of the value chain. To achieve the speed these require firms have to be able to reassure customs authorities (particularly in the US and other OECD countries) on the security of their supply chains. WCO Framework of Standards and the Authorised Economic Operator.

7. Case Study: Angola
Trade Facilitation in Practice – Key Results to date
Customs clearance time for business slashed from an average of 21 days to 48 hrs.
Introduction of risk-based controls, speeding up the flow for legitimate traders.
1,731% increase in government revenue between years 2000 (baseline) and 2009 (up from U$215m to U$4bn+ respectively).
1st SADC country to implement the SADC format single administrative document.
Automated customs entry processing (TIMS) at Luanda’s air and sea ports and key regional border posts (including direct trader input).
New Consolidated Customs Code & Regulations introduced, aligned with internationally agreed standards e.g. WTO Rules for Customs Valuation.
Customs Code of Conduct and ‘customer’ Service Standards adopted, improving transparency and predictability for business

8. Case Study: Angola How they were achieved
Key to success – close working partnership between CA and the Government of Angola with a strategic approach
High level policy commitment to change - political will
A detailed review of the legal and policy framework to adopt best practice and align with recognised international and regional standards (e.g. WCO, WTO and SADC)
Strengthening capacity of Customs personnel through: staff and management development programmes, mentoring schemes and graduate recruitment
The streamlining of processes and procedures in line with recognised international standards (e.g. UN/CEFACT)

9. Lessons Learned
Early ‘buy in’ by key stakeholders in Government and private sector
Early development and implementation of systems and processes to enhance integrity and transparency
The centrality of client country ownership throughout the programme (e.g. joint working and senior level mentoring)
Adoption of appropriate information technology (TIMS) to support the re-engineering of processes and procedures
The importance of collaborative working based upon institution transformation through a sustained long term technical assistance support programme to instil best practice aligned with internationally recognised standards

10. Crown Agents & Single Window
An important building block for the realization of the Trade Facilitation Goal

11. Single Window Environment
Interoperability
Ubiquitous
Anytime Access
Shipping Line
Manifest Data
report agent
Forwarder
Trade Firm
Bank
National
Single Window
Trade Related Agencies
Data Provider
Communication Network Service Provider
Airline
Bonded Transportation
Inspection Company
Customs Broker
Warehouse
All stakeholders stand to benefit from
SIMPLE, TRANSPARENT and EFFECTIVE trade processes.

12. Advanced Tier Agencies
Service Offerings
Model 1: Targeted Model
Advanced Tier Agencies
SOLUTION
Automation
Mid Tier Agencies
SOLUTION
Base Tier Agencies
SOLUTION
Operational Efficiency

13. All Inclusive Single Window
Adopted Model
Model 2: All Inclusive Model
All Inclusive Single Window
Model
Automation
Operational Efficiency

14. Alignment - Solution
A Business model that adapts to each participant’s environment
Technology that supports BOTH advanced organisations (XML) and those reliant on document-based processes (PDF)
Alignment of technology components
Minimal entry requirements
Little or no re-engineering required
Fast Scale Up path
WORKING TOWARDS AN AGREED VISION AND STANDARD

15. Alignment – Holistic Approach
Comprehensive Gap and Operations Analysis
Alignment with existing Trade initiatives
Leveraging and amplifying current and planned programmes
Seeking value from all existing programmes
Interoperability
Integration with Regional Single Window
ACROSS ALL AGENCIES

16. Technology Evaluation
Crown Agents
Single Window Roadmap
Detailed approach that integrates Strategy Confirmation and Goal Definition
Technology Evaluation

17. Public Sector Benefits
Benefits of a
Single Window Approach
ECONOMY - PUBLIC SECTOR - PRIVATE SECTOR – CITIZEN
Public Sector Benefits
Boost to Economic Growth
Improved Competitiveness
Increased Government Revenue
Co-ordination of the controls and inspections of the various governmental authorities
Response to Heightened Security Needs
A professional, transparent, accountable, auditable, efficient and automated Customs Service
INTERNATIONAL COMPETITIVE ADVANTAGE

18. Private Sector Benefits
Benefits of a
Single Window Approach (cont’d)
PRIVATE SECTOR – PUBLIC SECTOR – CITIZEN - ECONOMY
Private Sector Benefits
Assuring Transparency
Predictability
Saving Time –Clearance, Compliance etc
Cost Savings
Creating Customer Value
Improving Supply Chain Security and Performance
INTERNATIONAL COMPETITIVE ADVANTAGE

19. Questions & Answers PLEASE FEEL FREE TO CONTACT US:
THANK YOU FOR YOUR ATTENTION.
PLEASE FEEL FREE TO CONTACT US:
Trevor Simumba:
Valentina Mintah:
Kevin Atkinson: