1. WELCOME An introduction to the World Customs Organization and its Instruments

2. Copyright © 2006 /2007 World Customs Organization
Structure of the presentation
The World Customs Organization in brief
The WCO Trade Facilitation Instruments / Standards
The WCO – WTO relationship in the context of the WTO TFNG
Copyright © 2006 World Customs Organization. All rights reserved. Requests and inquiries concerning translation, reproduction and adaptation rights should be addressed to
Copyright © 2006 /2007 World Customs Organization

3. “World Customs Organization”
The WCO, a change of name
In 1994, the Customs Co-operation Council (CCC) adopted the informal working name
“World Customs Organization”
…to better reflect its worldwide membership
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Copyright © 2006 /2007 World Customs Organization

4. The WCO, some brief facts…
▲ As of April : Members*
▲ Two official languages : English and French**
▲ Headquarters : Brussels, Belgium
▲ Budget for 2008/ : € 15 million
▲ Democratic traditions : One Member = One vote
(utilisation de l’espagnol pour les réunions de l’origine et de l’évaluation en douane, utilisation du russe pour le SH)
* excludes the European Communities which, since July 2007, has rights akin to those of a WCO Member for matters falling within its competences as an interim measure
** increased use of Arabic, Portuguese, Russian and Spanish as « working » languages
Copyright © 2006/2007 World Customs Organization
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5. The WCO, an Organization with global reach…
174 Members divided into 6 regions
responsible for processing 98% of international trade
Europe
Americas
Asia Pacific
East and Southern Africa
North Africa, Near and Middle East
West and Central Africa
Red
Yellow
Green
Maroon
Cyan
Magenta
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Copyright © 2006 /2007 World Customs Organization

6. Economic Development <trade, investment>
Evolution of Customs
Revenue Collection of Import Taxes (duties & excise)
Protection of Economic Interests
(domestic industry)
Protection of Society <health, safety>
(drug trafficking, firearms, environment, etc.)
Techniques
Partnership with trade
Risk management
Authorized traders
Use of IT
Co-operation with other agencies
Co-operation with other Customs administrations
Customs function
Economic Development <trade, investment>
(trade facilitation)
Security <terrorism>
(shifting focus to the entire supply chain)
Framework of Standards
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7. The WCO Mission Statement
To enhance the effectiveness and
efficiency of Customs administrations
…by improving their ability to
Apply trade regulations & Trade Facilitation
Protect society
Collect fiscal revenue
...which promotes
economic prosperity and social development
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Copyright © 2006/2007 World Customs Organization

8. Copyright © 2006/2007 World Customs Organization
The WCO’s objective…
…to secure the highest degree of harmony and uniformity in Customs systems
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Copyright © 2006/2007 World Customs Organization

9. The WCO’s key activities I
Developing and maintaining international Customs instruments such as the Harmonized System, the Revised Kyoto Convention, the Istanbul Convention, the Nairobi Convention, the Time Release Study, etc.
Encouraging uniform application of simplified and harmonized Customs systems and procedures and the increased use of IT as well as the implementation of the WCO Data Model (Single Window)
Administering international instruments developed by other multilateral institutions such as the WTO Agreements on Customs Valuation and Origin and the UN Convention on Containers
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Copyright © 2006/2007 World Customs Organization

10. Copyright © 2006/2007 World Customs Organization
…key activities II
Securing and facilitating the movement of goods in the international trade supply chain through the WCO SAFE Framework of Standards to secure and facilitate global trade (implementation of the Authorized Economic Operator system and mutual recognition of such systems)
Promoting integrity in Customs through the revised Arusha Declaration on Integrity and the development of tools that assist Members to implement integrity best practices
Encouraging Customs-to-Customs co-operation and mutual assistance, and collaborating with international organisations on issues that impact on the global Customs community
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Copyright © 2006/2007 World Customs Organization

11. Copyright © 2006/2007 World Customs Organization.
…key activities III
Providing sustainable capacity building guidance and assistance to facilitate Customs modernisation initiatives, and to implement international Customs and trade instruments
Promoting partnerships between Customs and the international business community
Combating transnational organised crime, environmental crime, drug trafficking, money laundering, smuggling, the illicit diamond trade, illegal arms and ammunition, stolen motor vehicles and other Customs offences
Copyright © 2006 World Customs Organization. All rights reserved. Requests and inquiries concerning translation, reproduction and adaptation rights should be addressed to
Copyright © 2006/2007 World Customs Organization.

12. Copyright © 2006 /2007 World Customs Organization
Structure of the presentation
The World Customs Organization in brief
The WCO Trade Facilitation Instruments / Standards
The WCO – WTO relationship in the context of the WTO TFNG
Copyright © 2006 World Customs Organization. All rights reserved. Requests and inquiries concerning translation, reproduction and adaptation rights should be addressed to
Copyright © 2006 /2007 World Customs Organization

13. WTO July Package - Annex D
1. Negotiations shall aim to clarify and improve relevant aspects of Articles V, VIII and X of the GATT 1994 with a view to further expediting the movement, release and clearance of goods,….

14. WTO July Package - Annex D
Due account shall be taken of the relevant work of the WCO and other relevant international organizations in this area.
(Shall use relevant international standards or parts as a basis – TN/TF/W/131/Rev.1)

15. Revised Kyoto Convention Harmonized System Istanbul Convention
WCO TF Instruments
(referred to in the WTO Members’ 3rd generation proposals)
Revised Kyoto Convention
(TN/TF/W/117/Rev.1, 134, 131/Rev.1, 140)
Harmonized System
(TN/TF/W/126, 131/Rev.1)
Istanbul Convention
(TN/TF/W/ 131/Rev.1)
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16. Immediate Release Guidelines Time Release Study
WCO TF Instruments
(referred to in the WTO Members’ 3rd generation proposals)
Immediate Release Guidelines
(TN/TF/W/ 117/Rev.1)
Time Release Study
(TN/TF/W/ 139/Rev.1)
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17. Revised Koyto Convention (RKC)
International Convention on the simplification and harmonization of Customs procedures (Kyoto Convention, adopted in 1973)
Revised in 1999 after 4 years revision work (consultation with the private sector) and entered into force in February 2006 – 600 legal provisions
Blueprint for Modern Customs procedures
effective controls
facilitate legitimate trade

18. Revised Kyoto Convention (RKC)
Core provisions and definitions of general application to all Customs procedures in ten Chapters of the General Annex - obligatory
Specific Annexes contain Chapters relating to specific procedures (25) - optional
Implementation period for Standards/Recommended Practices (3 years) and Transitional Standards (5 years)
Detailed Guidelines containing information for
- the interpretation of the provisions
- the implementation of the provisions
- methods of application and best practices
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19. Revised Kyoto Convention – Management Committee
Management Committee (Article 6 of the Convention) responsible for
- securing uniformity in the interpretation
- application and in any amendments proposed
59 Contracting Parties (accession process ongoing in many countries)
Observers (WCO Members, UN Members – incl. WTO Members, International Organizations and Trade)
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20. WCO Members (174) 1973 Kyoto (63) RKC (59) OECD (30) EU (27+1)
Latin America (1)
Cuba
Europe (1)
Israel
RKC (59)
Korea NZ
Norway
Australia
Canada
Japan
OECD (30)
Africa, middle-east (10)
Burundi
Cameroon
Côte d'Ivoire
Dem.Rep. Congo*
Gambia
Kenya
Malawi
Nigeria
Rwanda
Saudi Arabia
Switzerland
Turkey US
Algeria
Botswana
China
Croatia
India
Lesotho
Madagascar
Malaysia
Morocco
Pakistan
Senegal
Serbia
South Africa
Uganda
Vietnam
Zimbabwe
Zambia
Austria
Belgium
Bulgaria
Czech
Denmark
Finland
France
Germany
Greece
Hungary
Ireland
Italy
Luxembourg
Netherlands
Poland
Iceland
Mexico
Portugal
Slovak Rep
Spain
Sweden UK
Asia (1)
Sri Lanka* EC
Cyprus
Latvia
EU (27+1)
Lithuania
Slovenia
Malta
Romania
Estonia
Azerbaijan
Egypt
Jordan
Mauritius
Mongolia
Montenegro
Namibia
Other non-CPs
*: Signed subject to ratification (not yet)

21. Key Principles of RKC (I)
Transparency and predictability
- Rules for providing information
- Clear and transparent appeal procedures
(Customs, independent authority, courts)
Standardization and simplification of goods declaration and supporting documents
- Minimum data requirements
- Provisional / Incomplete Goods Declaration
- Submission by electronic means
Simplified procedures for all operators
Separating release from clearance procedures
slides 5 and 6
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22. Key Principles of RKC (II)
“Fast track” procedures for authorized persons with good compliance records
such as : release of goods with minimum information to identify goods (with subsequent declaration)
Pre-arrival information (prior lodgement and registration of the Goods declaration and supporting documents – cargo declaration)
Maximum use of information technology
- Use of international standards
- Consultation of all relevant parties when introducing computer applications
- Electronic commerce methods as an alternative to paper-based requirements
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23. Key Principles of RKC (III)
Minimum necessary controls to ensure compliance
Risk management
- Identify high risk consignments based on risk analysis (intelligence)
- Shift from documentary and physical checks to targeted checks
- Facilitation of legitimate trade while maintaining effective control
- Effective and efficient deployment of Customs resources
Audit based controls Post-clearance audit
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24. Key Principles of RKC (IV)
Juxtaposed Customs office and joint controls
Co-ordinated intervention Inspection with other border agencies
Partnership with the trade - Formal consultative relationships - Memoranda of Understanding (MOU)
Benefits of an effective implementation of the RKC for Economy/Customs/Trade

25. Main Trade Facilitation Techniques
Standard and simplfied
procedures and practices
Risk
Management
Programme
Risk Assessment
Pre-arrival
Declaration
System of
appeals
Control Techniques
Post Entry Audits
Publication of
accurate, up-to-date
information & Advance Rulings
Maximum use of
Information
Technology
Automation
Partnership
with the Trade
WORLD CUSTOMS ORGANIZATION

26. Harmonized System
- "HS" is a multipurpose international product Nomenclature developed by the WCO (through the Harmonized System Committee)
- Used by more than 200 countries and economies as a basis for their Customs tariffs and for the collection of international trade statistics
- 136 countries and the EC have signed the HS Convention (entered into force on 1 January 1988) and are Contracting Parties (April 2009)
- Universal economic language and code for goods, and an indispensable tool for international trade
- Recommendation (1996) on the introduction of programmes for binding pre-entry classification information
DQTCOCT2001.PPT 4

27. What is the HS ? 21 SECTIONS of goods grouped together into sectors
96 CHAPTERS
1,221 4-digit headings (2007 Version). Goods are arranged in the HS in order of their degree of manufacture
5,052 6-digit subheadings (2007 Version) and
General Interpretative Rules 6
DQTCOCT2001.PPT

28. What is the HS ? The goods - their description - 6-digit subheadings :
Dolls
Lawn-tennis rackets
Yogurt 6
DQTCOCT2001.PPT

29. Istanbul Convention / ATA System
- No duties and taxes collected for the temporary importation of goods
Covered by an internationally valid guarantee system
ATA Carnet replaces national Customs formalities
Istanbul Convention merges 13 existing temporary admission agreements into a single instrument
54 Contracting Parties - entered into force on 27 November 1993

30. Istanbul Convention / ATA System
- First half of 2008, 88,865 ATA Carnets were issued for goods representing a total value of US$ 11,711,747,130
During the corresponding period of 2007, 83,712 ATA Carnets were issued for goods representing a total value of US$ 9,163,847,511
e-ATA Carnet initiative

31. Immediate Release Guidelines (adopted in June 2003)
Identification of a set of data that was to be provided for grant of release of goods as well as procedures to be followed (4 categories of goods)
Submission of cargo information in advance of the arrival of the goods for risk assessment purposes
Clarification of coverage
All operators
All means of transport
Promoted by the international business community

32. Time Release Study Useful tool:
= to measure the average time taken between the arrival of the goods and their release, and at each intervening step (including intervention by agencies other than Customs)
Useful tool:
to identify problems and bottlenecks; and
to stimulate efforts to improve the efficiency and effectiveness
IT software available ( + training)
WCO Web-based service is available
Widely used by WCO Members (regional approach)

33. Parties involved (example)
Payment of the duty/tax by the importer
Manifest from the ship
Technical conformity certificate from the Standard Board
Import licence from the Trade Board
Receipt issued by the bank
Arrival of vessels 
Lodge import
declaration
with Customs
Lodge import
declaration
with Customs 
Obtain import
permission
Obtain import
permission 
Delivery of
goods from
Customs
storage

34. ARRIVAL - TRANSFER INTO HOZEI AREA
Feb 1991
47.6
94.5
26.1
- 81%
Mar 2001
31.1
37.8
4.9
(Hours)
ARRIVAL - TRANSFER INTO HOZEI AREA
TRANSFER INTO HOZEI AREA - DECLARATION
DECLARATION - PERMISSION
Copyright © 2006 World Customs Organization. All rights reserved. Requests and inquiries concerning translation, reproduction and adaptation rights should be addressed to
Source: Customs and Tariff Bureau, Ministry of Finance, Japan

35. Other relevant WCO TF Instruments
The SAFE Framework of Standards to secure and facilitate global trade
The WCO Data Model (Version 3)
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36. SAFE Framework of Standards
Adopted by the Council in June 2005 (revised in 2007) and mainly developed according to the RKC principles
To date, 155 of the WCO’s 174 Members have signed a “letter of intent” to implement the SAFE FoS
The principles of SAFE are found in different Customs legislation (AEO Programme)
Columbus Programme to implement the SAFE
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reproduction and adaptation rights should be addressed to

37. Objectives of the SAFE FoS
Establish standards that provide supply chain security and facilitation to goods being traded internationally;
Enable integrated supply chain management for all modes of transport;
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.
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reproduction and adaptation rights should be addressed to

38. The Core Principles Advance electronic information
Common Risk management approach; 27 key data elements
Inspection of high-risk cargo at port of origin; export controls
+ Use of modern technologies (scanners, e-seals,…)
Enhanced trade facilitation for legitimate trade; Authorized Economic Operator (AEO) concept
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reproduction and adaptation rights should be addressed to

39. Structures: 2 Pillars / 17 Standards
Pillar 1: Customs-to-Customs Cooperation; Using Commonly Accepted Standards to both secure and facilitate trade (11 Standards)
Pillar 2: Customs-to-Business Partnership; Identify secure business partners / Offer tangible benefits (6 Standards) + AEO Guidelines
Importance of Co-ordinated Border Management and the Single Window concept
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reproduction and adaptation rights should be addressed to

40. WCO Data Model
= maximum framework of standardized sets of data & electronic messages (EDIFACT & XML) to complete border procedures
1996 to 2002 G7 Initiative (WCO Data Model is a continuing effort to standardize, harmonize and reduce Customs data requirements initiated by the G7)
Version 1.0 – the Data Sets (2002)
Version 1.1 – security concern (2003)
Version 2.0 – modelling, conveyances and Customs transit (2005)

41. WCO Data Model └> Customs Procedures (IM,EX, Transit / TIR, CR)
- Version 3.0 – response, XML, data structure, more transit, Other Government Agencies / SW (2009)
└> Customs Procedures (IM,EX, Transit / TIR, CR)
└> Supports “Single Window” environment - Incorporates “OGA” data - agriculture, food safety, hazardous waste (Basel Conv.) - Also looks at response messages and an increased scope for Customs transit - Considers the implications of XML, refinement of our models and basic data structures
- WCO Recommendation on the use of the WCO DM to be adopted in June 2009

42. WCO Data Model provides this common understanding
Compatible with ISO, UN/CEFACT and other international codes
Key for effective and efficient for B2G and G2G exchange and sharing of information - Trade and Transport organizations involved in its development / maintenance
Standardized and harmonized information requirements and procedures are essential └> common understanding └> effective and efficient └> all parties in the international cross-border movement
WCO Data Model provides
this common understanding

43. WCO Data Model – Some of the benefits
Seamless transaction / faster release (single, global data set and uniform electronic messages to conduct business)
more effective exchange of information between export and import
aligned export and import data requirements (export information reused at import)
includes data requirements of other governmental regulatory authorities (eliminating redundancies and differences)
└> Single Window environment
└> traders to submit information only once

44. Evolution of WCO standards (not exhaustive)
Simplification and modernization of procedures
Harmonization of coding and data
Standardization of procedures
Support tools for national TF initiatives
Data Model
Version 3.0 (2009)
AEO Guidelines (2007)
HS Convention (2007)
Post-clearance audit Guidelines (2006)
Diagnostic Framework* (Guide) (2003)
Data Model
Version 2.0 (2005)
SAFE Framework of Standards (2005)
ICT Guidelines (2004)
Time Release Study (2003)
Resolution on UCR and Implementation Guide (2004)
Immediate Release Guidelines (2003)
Benchmarking Manual (Guide) (2003)
HS Convention (2002)
Risk Management Guide (2003)
Recommendation on the use of WWW (1999)
Data Model
Version 1.1 (2003)
Revised Kyoto Convention and its Guidelines(1999)
Data Model
Version 1.0 (2002)
Recommendation on Pre-entry classification (1996)
Guidelines for Express Consignments Clearance (1993)
HS Convention (1997)
Istanbul Convention (1990)
Kyoto Convention (1973)
HS Convention (1988)
ATA Convention (1963)
Convention establishing a CCC (1950)
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*Diagnostic Framework is a living document and contains entire Customs themes, including the TF

45. Copyright © 2006 /2007 World Customs Organization
Structure of the presentation
The World Customs Organization in brief
The WCO Trade Facilitation Instruments / Standards
The WCO – WTO relationship in the context of the WTO TFNG
Copyright © 2006 World Customs Organization. All rights reserved. Requests and inquiries concerning translation, reproduction and adaptation rights should be addressed to
Copyright © 2006 /2007 World Customs Organization

46. Modalities of TF negotiations
This is a rough history of the WTO trade facilitation work.
Trade facilitation was put on the WTO agenda at the1st WTO Ministerial Conference in Singapore in 1996.
Then, mainly work was done by the WTO Council for Trade in Goods, namely, CTG.
New Round, so called, Doha Development Agenda, was launched in Nov 2001, where the launch of trade facilitation negotiations was agreed subject to the consensus on the modalities of negotiations.
Just some minutes past the midnight, very early morning of 1 August, the WTO agreed the modalities of negotiations on trade facilitation.
Real negotiations have not started yet; the chairperson was appointed just two weeks ago.
Probably, some of you are not familiar with the WTO decision making structure; I will show it to you.
Trade facilitation needs and priorities
TA/CB during and after the negotiations
Collaborative capacity building efforts by international organizations
(Annex D Organizations = IMF, OECD, UNCTAD, WCO, World Bank)
Due account to the relevant work of the WCO
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47. WCO: Guiding Principles
Participation of Customs administrations in preparing national positions
Enhanced co-operation in the work of the WCO and WTO
Involvement of other border agencies
Need for full support for Customs capacity building efforts
Compatible and complementary relationship between the work of the two Organizations

48. WCO work in this area
This is a rough history of the WTO trade facilitation work.
Trade facilitation was put on the WTO agenda at the1st WTO Ministerial Conference in Singapore in 1996.
Then, mainly work was done by the WTO Council for Trade in Goods, namely, CTG.
New Round, so called, Doha Development Agenda, was launched in Nov 2001, where the launch of trade facilitation negotiations was agreed subject to the consensus on the modalities of negotiations.
Just some minutes past the midnight, very early morning of 1 August, the WTO agreed the modalities of negotiations on trade facilitation.
Real negotiations have not started yet; the chairperson was appointed just two weeks ago.
Probably, some of you are not familiar with the WTO decision making structure; I will show it to you.
Promotion of Customs engagement (message, letters, WCO meeting documents, briefing sessions,…)
Contribution to the negotiation process
Provision of technical inputs
Promotion of compatibility of WCO instruments (WCO tools to implement WTO principles)
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49. WCO work in this area Provision of resource persons
OECD TF Cost survey
World Bank TF Needs identification
WTO Regional Workshops,…
Capacity Building (WTO TF Needs Assessment)
– extended pool of WCO experts
– participation of the WCO in more than 20 NA workshops
This is a rough history of the WTO trade facilitation work.
Trade facilitation was put on the WTO agenda at the1st WTO Ministerial Conference in Singapore in 1996.
Then, mainly work was done by the WTO Council for Trade in Goods, namely, CTG.
New Round, so called, Doha Development Agenda, was launched in Nov 2001, where the launch of trade facilitation negotiations was agreed subject to the consensus on the modalities of negotiations.
Just some minutes past the midnight, very early morning of 1 August, the WTO agreed the modalities of negotiations on trade facilitation.
Real negotiations have not started yet; the chairperson was appointed just two weeks ago.
Probably, some of you are not familiar with the WTO decision making structure; I will show it to you.
Copyright © 2006 World Customs Organization. All rights reserved. Requests and inquiries concerning translation, reproduction and adaptation rights should be addressed to

50. Possible Customs gains
This is a rough history of the WTO trade facilitation work.
Trade facilitation was put on the WTO agenda at the1st WTO Ministerial Conference in Singapore in 1996.
Then, mainly work was done by the WTO Council for Trade in Goods, namely, CTG.
New Round, so called, Doha Development Agenda, was launched in Nov 2001, where the launch of trade facilitation negotiations was agreed subject to the consensus on the modalities of negotiations.
Just some minutes past the midnight, very early morning of 1 August, the WTO agreed the modalities of negotiations on trade facilitation.
Real negotiations have not started yet; the chairperson was appointed just two weeks ago.
Probably, some of you are not familiar with the WTO decision making structure; I will show it to you.
High and sustained political commitment to Customs reform and modernization
Receive TA/CB support
Compatible and complementary relationship with WCO work
Better understanding of Customs by others
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51. WTO vis-à-vis WCO TF Instruments
WTO rules set high principles while the WCO instruments provide implementation tools of these high principles with detailed standards
Consistency of the measures negotiated at the WTO vis-à-vis the WCO instruments
- the majority of the proposed WTO texts are compatible with
the WCO instruments
- a minority of the WTO measures do not currently appear
to be covered by WCO instruments
Scope of many proposals is wider than Customs (involvement of
other border agencies)
This is a rough history of the WTO trade facilitation work.
Trade facilitation was put on the WTO agenda at the1st WTO Ministerial Conference in Singapore in 1996.
Then, mainly work was done by the WTO Council for Trade in Goods, namely, CTG.
New Round, so called, Doha Development Agenda, was launched in Nov 2001, where the launch of trade facilitation negotiations was agreed subject to the consensus on the modalities of negotiations.
Just some minutes past the midnight, very early morning of 1 August, the WTO agreed the modalities of negotiations on trade facilitation.
Real negotiations have not started yet; the chairperson was appointed just two weeks ago.
Probably, some of you are not familiar with the WTO decision making structure; I will show it to you.
Copyright © 2006 World Customs Organization. All rights reserved. Requests and inquiries concerning translation, reproduction and adaptation rights should be addressed to

52. Thank You for Your Attention
Thierry Piraux
Telephone : +32 (0) Fax : +32 (0)
________________________________________________________________________________________________________
WCO Publications Service WCO Information Service
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