1. WCO Standards and Strategies
Coordinated Border Management
Single Window
Capacity Building
Globally Networked Customs
UN/ECE & Georgia Ministry of Finance
Regional Conference on Trade Facilitation
Tbilisi, Georgia June
Gareth Lewis
World Customs Organization (WCO)

2. The World Customs Organization (WCO) is the only intergovernmental organization with competence in Customs matters.
(c) Copyright WCO 2

3. Mission Statement Economic and social well-being of nations.
“To enhance the effectiveness and efficiency of Customs Administrations”
Application of trade regulations
Protection of society
Collection of fiscal revenue
Enhance the effectiveness and efficiency of Customs administrations by;
Developing and maintaining standards for simple, standardised and harmonised Customs systems and procedures;
Assisting in capacity building programmes;
Providing training and technical assistance.
Independent intergovernmental body
Established in 1952 as the Customs Co-operation Council
Renamed WCO as working title in 1994
Headquarters in Brussels
6 regional representatives
Currently representing 171 members from all geographic regions and at different stages of development
Members process > 95% of all international trade
The Convention establishing a Customs Co-operation Council, now known as the “World Customs Organization ”, entered into force in 1952 with 17 participating countries.
After years of membership growth, in 1994 the Council adopted
the working name World Customs Organization, to more clearly
reflect its transition to a truly global intergovernmental institution.
Today the WCO has 171 Members, spread throughout the world, which are responsible for processing over 98% of all international trade.
The WCO employs plus minus 100 Staff members.
Has an annual operating budget of plus minus 13 million Euros
By means of Application of trade:
WTO
Anti dumping measures
System of Import licences
Certificates of origin
Taking into account…..Protection of society:
Mouth and foot disease
BSE
Rabies
Dangerous goods
Hazardous waste
Weapons of mass destruction
And not to forget the ..Collection of fiscal revenue:
Duties
levies
Anti dumping levies
Taxes
VAT
Economic and social well-being of nations.

4. Evolution of Customs Customs function
Revenue Collection of import taxes (duties & excise)
Protection of Economic Interests
(domestic industry)
Protection of Society <health, safety>
(drug trafficking, firearms, environment etc.)
Customs function
Economic Development <trade, investment>
(trade facilitation)
Security <terrorism>
(shifting focus to entire supply chain)
Techniques
Partnership with trade
Risk management
Authorized traders
Use of IT
Co-operation with other agencies
Co-operation with other Customs administrations
The Framework serves several purposes and meets multiple objectives.
These include:
1. Establishing standards that provide supply chain security and facilitation at a global level to promote certainty and predictability.
2. Enabling integrated supply chain management for all modes of transport.
3. Enhancing the role, functions and capabilities of Customs to meet the challenges and opportunities of the 21st Century to detect high-risk consignments.
4. Strengthening Customs-to-Business co-operation.
5. Promoting the seamless movement of goods through secure international trade supply chains. That is, to facilitate the movement of legitimate trade while securing the supply chain from high-risk cargo.
The WCO Framework is designed to encourage cooperation among international customs administrations and with the trade community to secure international supply chains and facilitate the movement of goods. It is comprised of four core elements.
First, the Framework harmonizes advance electronic manifest information requirements on inbound, outbound, and transit shipments.
each Member that joins the Framework must commit to employing a standardized risk management approach to address terrorism and other security threats.
Third, the Framework requires the inspection of outbound high-risk containers by non-intrusive inspection equipment, such as large-scale x-ray machines and radiation detectors, at the request of the destination Member.
Lastly, the Framework defines the concrete benefits to be received by businesses that commit to implementing the Framework’s standards.
The Framework will therefore create standardized criteria for identifying businesses that offer a high degree of security in return for which they will receive such tangible benefits such as speedier clearance of low-risk cargo through customs and fewer customs inspections.
Framework of Standards/C21

5. Current Customs Environment Customs environment and role?
Global financial crisis
Global trade already affected
Access to trade finance
Drop in trade volume
Customs will be affected
Pressure on revenue collection
Diminishing investment on border infrastructure
Rise of protectionist trend
Customs environment and role?

6. Possibilities for more?
Take a fresh look
Possibilities for more?

7. C21: A New Strategic Direction
Approved as the future Customs roadmap
From vision, aspiration to implementation
10 building blocks for C21
Priority BBs: Globally Networked Customs and Coordinated Border Management
Future role of WCO: Standard setting; capacity building; monitor implementation; funding; research
Customs in the 21st Century
Globally networked
Co-ordinated border mgt
Intelligence driven Risk-Mgt
Customs-Trade partnership
Modern methods
Enabling technology
Enabling powers
Professional Service Culture
Capacity Building
Integrity 7

8. Customs in the 21st Century
Globally Networked Customs
1st building block of C21
provides the basis of the e-customs strategy
RKC Chapters 3, 6
SAFE Framework (1st Pillar)
Data/message standards, UCR
Focus on exports
Mutual Recognition/MAA (includes AEO)
Strongly related to JCC concept
Challenge for customs
􀂄 Achieve effective and efficient control in a wide
range of mission areas
• Revenue, protection of society, security
• Shift and difference in emphasis, depending on
development stage
􀂄 Respond to the growing needs for trade facilitation
• A major issue for improving national competitiveness
􀂄 Balanced and integrated approach
• Risk management (selective control)
• Use of Information Technology
• Partnership with trade
• Enhance cooperation with other government agencies
• Organizational change 6
Tools for customs to address
the challenge
􀂄 International standards
• WTO Trade rules, UN standards
• WCO standards
􀂄 International cooperation
• Exchange of information
• Sharing best practice
• Global and regional level
􀂄 Capacity building
• WCO Capacity building strategy
• Diagnostic tools for customs reform & modernization
• Regional approach

9. Customs in the 21st Century
Coordinated Border Management
2nd building block of C21
based on collaboration/cooperation
RKC Chapter 3, 7 + risk management
SAFE (security of supply chain)
Data/message standards, UCR
Mutual Recognition (includes AEO concept)
International Trade Single Window
Challenge for customs
􀂄 Achieve effective and efficient control in a wide
range of mission areas
• Revenue, protection of society, security
• Shift and difference in emphasis, depending on
development stage
􀂄 Respond to the growing needs for trade facilitation
• A major issue for improving national competitiveness
􀂄 Balanced and integrated approach
• Risk management (selective control)
• Use of Information Technology
• Partnership with trade
• Enhance cooperation with other government agencies
• Organizational change 6
Tools for customs to address
the challenge
􀂄 International standards
• WTO Trade rules, UN standards
• WCO standards
􀂄 International cooperation
• Exchange of information
• Sharing best practice
• Global and regional level
􀂄 Capacity building
• WCO Capacity building strategy
• Diagnostic tools for customs reform & modernization
• Regional approach

10. C21 – 10 Building Blocks BB3 – Intelligence-driven Risk Management
Scarce resources need to be targeted at the higher end of continuum
Involves risk management at the operational and management levels
BB4 – Customs-Business Partnership
Understand each other & produce mutually beneficial outcomes
Agreements between customs and trusted economic operators (AEO)

11. C21 – 10 Building Blocks
Policy Commission, December 08, Buenos Aires
Discussion made from a high-level strategic perspective
Practical approach for way forward
Inventory of existing WCO standards & programs
Comparative analysis with C21 10 building blocks
WCO Technical Committees
Policy Commission required technical committees to place C21 topics on their agendas
Basic research & case studies
Development of standards & programs
Communication with Members
Management Committee – monthly with Directors
Summary records put on Members website
Attaché briefing session
Through Vice Chair network
Increase participation of Members
Communication with stakeholders
International organizations, donors, private sector
Donor Conference in London
BB5 – Implementation of modern working methods,
procedures and techniques
BB6 – Enabling technologies and tools
BB7 – Enabling (legal) powers
BB8 – Professional, knowledge-based service culture
BB9 – Capacity Building (More later)
BB10 – Integrity

12. WCO priorities – Capacity Building
Implementation of WCO standards
Collaboration with donors & other stakeholders
Regional approach
Areas of capacity building
Trade security & facilitation
Revenue enhancement
Counterfeiting & piracy
Management issues, including integrity

13. WCO Priorities – Research
Understand & manage the challenges
Expanded role
Coordination with other ministries
Emerging issues
Environment protection – international customs day
Regional trade agreements etc.
Customs in the 21st Century
Research unit within the Secretariat

14. Columbus: 21st Century WCO Capacity Building
Support worldwide adoption and implementation of the WCO SAFE Framework of Standards to Secure and Facilitate Global Trade
Promote the WCO International Standards, as the Revised Kyoto Convention
Support implementation of Trade Facilitation initiatives under negotiation at World Trade Organization
Building sustainable Capacity in Customs Administrations
Co-operating with international Capacity Building partners

15. WCO Key Instruments Revised Kyoto Convention
‘SAFE’ Framework of standards
WCO Customs Data Model &
UCR
Istanbul/ ATA Convention
Time Release Study
Harmonised System
Integrated Supply Chain Management Guidelines
The Convention on the Simplification and Harmonization of Customs Procedures (Kyoto Convention) into force growth in international cargo and developments in information technology the WCO Council adopted the revised Kyoto Convention in June1999 as the blueprint for modern and efficient Customs procedures in the 21st century In force Feb. 2006
Safe framework of standards: the attack on the twin towers in New York accelerated the development of a set of standards for increasing the level of security of border crossing goods and transport equipment. Win win situation >>>AEO simplified procedures “gold card treatment“
WCO Data Model is a package with standardised and harmonised data requirements and standardised messages to exchange electronic messages/declarations with Customs and in the near future with other Government Agencies as well.
The UCR (old name Unique Consignment Reference number) can be used to track and trace goods and goods consignments and all relevant information and documentation. Specifically tracking back to the source of which the goods came from Electronic staple.
The A.T.A. allowing the free movement of goods across borders and temporary admission into a Customs territory. a single document known as the A.T.A. carnet. Due to this system, Trade enjoys considerable simplification of Customs formalities. is now the document most widely used by Trade for this purpose
Time Release Study
Harmonised System (HS) of tariff nomenclature is used as a basis for the classification of Goods and therefore also as basis for the collection of Customs duties and international trade statistics by almost all countries. About 98 % of world trade, use the Harmonised System. It is therefore one of the most important instruments in world trade.

16. WCO
SAFE Framework 16 16

17. SAFE Framework Principles
Standards to Secure and Facilitate Global Trade
Pillar 1, Customs-to-Customs networking
Pillar 2, Customs-to-Business partnership (AEO)
(Proposed) Pillar 3, Customs-to-OGA partnership
Relationship to single window
Columbus Program (+ diagnostic studies)
Implications of 100% scanning in the US
Seal Integrity Program
Integrated Supply Chain Management Guidelines
Advance cargo information
Legally enabling environment
Use of UCR
The Framework of Standards has its foundation in 2 major Pillars, the first dealing with Customs-to-Customs issues in terms of commonality of effort and information exchange. The second pillar concerns the dealings between Customs Administrations and Business and introduces the Authorized Economic Operator concept which, in essence, defines compliant business entities.
These two Pillars are amplified and built upon by two Annexes which track the Pillar concept with the first dealing with Customs-to-Customs and the second with Customs-to-business dealings. There Annexes merely provide further concrete details regarding the Main Body Framework elements.
The first Annex is also supported by an Appendix regarding Container Sealing Arrangements. These provisions were non-controversial because they had their origin directly from the provisions of the Revised Kyoto Convention.
The Framework of Standards is solely an expression of resolve to act, and does not include any schedule or time table.
Integrated Supply Chain Management
Cargo Inspection Authority
Modern Technology in Inspection Equipment
Risk-Management Systems
High-Risk Cargo or Container
Advance Electronic Information
Targeting and Communication
Performance Measures
Security Assessments
Employee Integrity
Outbound Security Inspections
Pillar 2
Partnership
Security
Communication
Authorization
Technology
Facilitation
June 2009

18. Revised Kyoto Convention
Cp 1 General Principles
(e.g., partnership with the trade)
Cp 2 Definitions
Cp 3 Clearance and other Customs formalities
(e.g., Juxtaposed posts, standardized and simplified documents, incomplete declaration, pre-arrival processing, authorized traders, border agencies coordination, separation of release from clearance)
Cp 4 Duties and Taxes
(e.g., deminimis, deferred payment)
Cp 5 Security/Guarantee
(e.g., collaterals)
Cp 6 Customs control
(e.g., risk management, audit-based controls, mutual administrative assistance, co-operation with the trade)
Cp 7 Application of information technology
Cp 8 Relationship between the Customs and third parties
(e.g., Customs brokers)
Cp 9 Information, decisions and rulings supplied by the Customs
(e.g., Publication of information, advance rulings)
Cp 10 Appeals in Customs matters
(A Blueprint for Modern
Customs Administration)

19. THE REVISED CONVENTION CHAPTERS OF THE GENERAL ANNEX
1 - General principles
2 - Definitions
3 - Clearance and other Customs formalities
4 - Duties and taxes
5 - Security
6 - Customs control
7 - Application of information technology
8 - Relationship between the Customs and third parties
9 - Information, decisions and rulings supplied by
the Customs
10 - Appeals in Customs matters
APPLICATION OF INFORMATION TECHNOLOGY
7.1. Standard
Customs shall apply information technology to support Customs operations, where it is cost-effective and efficient for the Customs and for the trade. Customs shall specify the conditions for its application.
7.2. Standard
When introducing computer applications, Customs shall use relevant internationally accepted standards.
7.3. Standard
The introduction of information technology shall be carried out in consultation with all relevant parties directly affected, to the greatest extent possible.
7.4. Standard
New or revised national legislation shall provide for:
electronic commerce methods as an alternative to paper-based documentary requirements;
electronic as well as paper-based authentication methods;
the right of the Customs to retain information for their own use and, as appropriate, to exchange such information with other Customs administrations and all other legally approved parties by means of electronic commerce techniques.

20. WCO Data Model (Version 3.0 and Single Window)
Considered as the authoritative source of B2G and G2G data
Compatible with ISO, UN/CEFACT and other international codes: Interoperable with trade & transport
Began with the G7 initiative and moved to the WCO (January 2002)
WCO Customs DM ver. 2.0: Full Customs and transport for release at border
WCO DM ver. 3.0: Initial Single Window version; other border regulatory agencies (agriculture, food safety etc) took part in deliberations directly or indirectly

21. WCO Data Model Building Blocks
WCO Data Model – Version 3.0
Message implementation/XML guidelines
Data models (info & BP)
Harmonized maximum data sets
From my point of view it is very important to stress out that the WCO Customs Data Model is a product which consists of various components. All components together are building the so called WCO Customs Data Model. These building blocks are:
The harmonized maximum data sets;
Data models;
International code standards and
Message implementation guidelines.
Code standards, Data Model Principles

22. Single Window to Government
Single point of data submission
Integrated Risk Assessment (?)
Transmitted to appropriate authorities
Ability to reuse data – “submit once use many times”
Single point of response
Data standardisation
Combined online trans. status
Online report capability
Customs has dominant border role
US ITDS and SAFE Port Act
Similar legislative/administrative arrangements in CA, AU, KO, NL etc.
Technological neutrality for data standards
Adopting a whole-of-government approach to border regulatory processes and associated data
The Single Window environment is a complex technical issue, but it cannot work without the political, administrative, policy and legal issues being examined first.
Be sure to get the policy, legal and administrative frameworks analysed and sorted before looking at technical options.

23. Streamlined Reporting
The SW “Wheel”
Regulation Reform
Enablers
Trade Facilitation
International Supply
Chain Security
Integrated Risk
Assessment
International
Collaboration
of Information
Exchange
G2G Exchange of
Information
Interconnectivity
Ports
Certificates, Permits,
Licences,
Consolidated Fee
Structure Review
Standard Processes
Across Agencies,
Streamlined Reporting
Data Hub
SDS
Legislative Review
& Amendment
Agency and Industry
Change Management
Identity Management
Security, Access
& Privacy
Architecture
This wheel shows the areas adoption of a Standardised Data Set could be expected to impact dependant on the extent of implementation.
Option A: Implement the SDS into Current Environment
the SDS option explores the impact of introducing the SDS into the current environment without the implementation of a Single Window system.
which is effectively a whole of government information collection system for trade activity and a messaging system that would translate and pass information to the appropriate authority’s existing systems.
would provide a mandatory single point of submission and a single point of response for all government related international trade activities. This option provides a comprehensive view of international trade activity, an opportunity for increased integrated risk assessment and more complete statistical reporting.
seeks to maximise the use of “international” trade data. Here, export data (provided by exporters or other governments) could be used to pre-populate and validate import and transit data. This would be dependent on having a Unique Consignment Reference (UCR) or other supply chain track and trace system in place. Option D development would be in concert with B or C above.
Option B: Front-End with Single Window Capabilities
Option C: Fully Functional Domestic Single Window
Option D International Single Window
These include data architecture, information exchange (B2G, G2G and N2N), the potential for standardised processing and legislative and process review.
Now I will explain the 4 options being explored for submission to Government.

24. Gareth Lewis +32 2209 9355 gareth.lewis@wcoomd.org
For more information:
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