1. REPUBLIC OF TURKEY PRIME MINISTRY UNDERSECRETARIAT OF CUSTOMS H. Cahit SOYSAL csoysal@gumruk.gov.tr Modernisation Project of Turkish Customs

2. FACTORS AFFECTING CUSTOMS ADMINISTRATIONS Growth in Trade Volume Trade Liberalisation Improvements in Technology Falling Transport and Communications Costs Increasing International Competition

3. WHAT IS EXPECTED FROM CUSTOMS? Speed up the release of goods Rationalise the clearance of goods Simplify procedures Enhance customs control Create and transfer statistical data in a timely and reliable manner

4. MODERNISATION MODERNISATION PROJECT OF TURKISH TURKISH CUSTOMS Modernisation Project of Turkish Customs is a subcomponent of Public Financial Management Project (PFMP) that was signed in 1995 with World Bank in order to enable institutional reforms within Turkish Government IMF also provided technical assistance to the project: During July 1996-May 1999 2 Long term, 6 short term advisors worked for Turkish Customs

5. FOCUS OF THE MODERNISATION PROJECT Reorganisation of customs administration Development and implementation of Computer systems Modification of customs legislation and procedures to International Standards

6. 27.10.1999 05.02.2000 New Customs Law, comprised of 254 articles, was discussed and passed from the Parliament Customs Regulation, comprised of 891 articles and 81 appendices came into force 11.02.1999 New customs procedures were determined for the computerized customs offices MODIFICATION OF CUSTOMS LEGISLATION

7. DEVELOPMENT AND IMPLEMENTATION OF COMPUTER SYSTEMS A software called BİLGE A software called BİLGE (BİLgisayarlı Gümrük Etkinlikleri) (Computerized Customs Activities) has been developed and by the end of October 2001, 18 Regional Directorates and 47 Customs Directorates will be automated

8. January 2000 The international bid, for the deployment of the BİLGE system signed August 1999 The pilot implementation of the CUSTOMS/EDI program started August 1998 The pilot implementation of the BİLGE system started DEVELOPMENT AND IMPLEMENTATION OF COMPUTER SYSTEMS

9. The current rate of automated customs transactions and the estimated rate of customs transactions at the end of this year 0 10 20 30 40 50 60 70 80 90 100 May 2001END of 2001 IMPORT EXPORT %91 %94 %96 %92 DEVELOPMENT AND IMPLEMENTATION IMPLEMENTATION OF COMPUTER SYSTEMS

10. In order to flatten the organisation and become more efficient: 120 customs directorates were either merged or closed down The functions of Regional Directorate of Customs and Directorate of Customs Enforcement have been united to increase service efficiency in 5 regions REORGANISATION OF TURKISH CUSTOMS

11. Never think of an organisation as a large machine that can be taken apart and reassembled differently whenever needed! Changes must be approached carefully with implications for both individuals and groups within the organisation LESSONS LEARNT (I)

12. LESSONS LEARNT LEARNT (II) Commitment of Top Management & Assignment of A Project Leader It is important to establish a Steering Committee to prove the support of top management A chief executive should be assigned as the project manager and must have the power and authority needed to make the changes happen

13. Commitment of Top Management & Assignment of A Project Leader LESSONS LEARNT LEARNT (III) Information era in Customs

14. LESSONS LEARNT LEARNT (IV) Management of Change and Time Plan It may be necessary to establish a permanent Project Unit with sufficient resources and must not be interrupted by daily operations Change must be planned by developing an action plan

15. LESSONS LEARNT LEARNT (V) Communication and Training Change presents unknowns that cause anxiety Communication with stakeholders is a very crucial feature for avoiding ambiguity-Do it as early as possible! A Strategic Statement was very helpful in communicating the reasons and objectives of change to our stakeholders Customs Consultative Committee also provided participation from trade bodies to our Project

16. LESSONS LEARNT LEARNT (VI) Communication and Training Adapting new technology means carrying out procedures in a totally new way which may cause fear The fear of new technology can be eliminated by intensive training programmes

17. LESSONS LEARNT LEARNT (VII) Confidence No Change! Those who have power in the current situation may resist change since it threatens their power Be confident about yourself and do not step back in case of any threat!

18. Confidence LESSONS LEARNT (VIII) Rebellion at the airport!

19. MONITORING & REINFORCEMENT It is very important to check after a suitable time to see if the changes are working well or not: If something is going wrong, modifications must be made On the other hand if changes are working well and the benefits can be demonstrated use this information to tell everyone to reinforce the transition

20. CHALLENGES Implementation of e-commerce technologies will require more resources and expertise E-commerce and the implementation of Just in Time techniques will increase the number of transactions Adapting e-commerce technology always hold the possibility of cyber crime, sabotage and loss of system accidentally

21. Thank you very much for your attention Thank you very much for your attention www.gumruk.gov.tr