World Customs Organization An Update of Capacity Building Tools

1. World Customs OrganizationAn Update of Capacity Building Tools Global Facilitation Partnership for Transportation and Trade at the World Bank 10 June 2003, Washington D.C. Kunio Mikuriya Deputy Secretary General, WCO

2. Customs Capacity Building ToolsUpdated in 2003 • Customs Capacity Building Strategy • Customs Capacity Building Diagnostic Framework • Supply Chain Initiatives • Time Release Study • Revised Arusha Declaration • Integrity Development Guide • Regional Peer Review and Information Sharing Process

3. WCO and Capacity Building • WCO Mission • Three key strategies (standard setting, international cooperation, training / technical assistance & capacity building) • 50 years of experience in T & TA delivery • WTO Doha Development Agenda • WCO Council Session in 2002 - Resolution on Security and Facilitation of the International Trade Supply Chain - Trade Facilitation agenda - Comprehensive Capacity Building Strategy - Integrity (Global Forum III in Seoul, May 2003) - High-Level Working Group on Capacity Building

4. Customs Capacity Building StrategyPurpose of the Strategy • Market the importance of comprehensive and sustainable capacity building in Customs to key stakeholders • Assist Directors General to make a stronger and more informed case for government support and funding • Provide a sound framework for understanding Customs needs and developing effective capacity building initiatives • Build donor confidence in Customs and provide an alternative to quick fix approaches • Demonstrate that the international Customs community is committed to capacity building • Assist Members to make a more active contribution to national negotiating positions in the lead up to the WTO Ministerial meeting in Cancun, Mexico

5. Customs Capacity Building StrategyContent and Structure of the Strategy 1. Overview of Customs and its importance to stakeholders 2. The case for Comprehensive Capacity Building in Customs 3. What does capacity building mean in the Customs context 4. Lessons learned from previous capacity building programs 5. key capacity building needs and challenges facing Customs 6. Roles and responsibilities of potential stakeholders and partners 7. Role of the WCO 8. Funding options 9. Customs Capacity Building Diagnostic Framework 10. Recommendations for Change

6. Customs Capacity Building Strategy4. Lessons Learned from previous capacity building efforts • Political will and commitment • Greater ownership and participation of Customs personnel • Accurate diagnosis of needs and country specific responses • Realistic donor and government expectations • Adequate resources (human and financial) • Enhanced co-operation and coherence

7. Customs Capacity Building Strategy5. Capacity Building Needs and Challenges (WCO survey & research) • Modern Customs legislation • Compliance with international commitments and standards • Management, leadership and strategic planning • Organization and administrative structures • Information Technology systems and infrastructure • Customs systems and procedures (Revised Kyoto) • Co-operation and Partnership with private sector and other government agencies • Integrity • Resources (human, financial, infrastructure)

8. Customs Capacity Building Strategy8. Funding options • Self Funding • Loans from Donors • Grants from Donors • Private Sector Contributions • User fees and charges • Trust funds • Advantages and disadvantages

9. Customs Capacity Building Diagnostic Framework Why? • Currently there is no standardized and comprehensive approach to identifying and addressing Customs capacity building needs • Previous efforts have often been narrow in focus and had little or no linkage to WCO instruments, tools and best practice approaches • Situational solutions tailored to each country’s reality based on gap analysis • Significant demand from Members and practitioners

10. Customs Capacity Building Diagnostic Framework What? - Content and Structure Introduction and overview Guiding Principles for Customs modernization Readiness Assessment Tool Core Components for Capacity Building in Customs Diagnostic Tool Guidelines on conducting diagnostic studies Guidelines on design, implementation and monitoring Living document for continuous improvement based on feedback from Members and practitioners

11. Customs Capacity Building Diagnostic Framework Guiding Principles for Customs Modernization - Integrity - Co-operation and partnership - Transparency - Standardization - Accountability - Simplification - Consistency and - Minimum Intervention predictability - Facilitation and Control - Client Service - Continuous improvement - Compliance Improvement

12. Customs Capacity Building Diagnostic Framework Readiness Assessment Tool Designed to Assess: • Political will, leadership and stakeholder support • Adequate long term resource and funding base • Functioning public sector and civil service • Sound legal framework and judicial system • Broadly supportive climate for change • Collection of base line data

13. Customs Capacity Building Diagnostic Framework Core Components for Capacity Building in Customs 1. Leadership and Strategic Planning 2. Resources - (human, financial and physical) 3. Organizational and Institutional Framework 4. Legal Framework 5. Customs Systems and Procedures 6. Information and Communication Technology 7. External Co-operation, Communication and Partnership 8. Change Management and Continuous Improvement 9. Good Governance 10. Management Information and Statistics

14. Customs Capacity Building Diagnostic Framework How? - Diagnostic Tool • Overall examination and diagnosis of current situation and opportunities for improvement • Each Component divided into a series of logical Chapters • Each Chapter divided into Sections • Each Section divided into …. 1. 2. 3. 4. Diagnostic Common Possible Useful Questions Weaknesses Solutions & Reference Improvement Materials Options

15. Customs Capacity Building Diagnostic Framework Guidelines on the conduct of Diagnostic Studies • Practical advice and guidance on how to undertake diagnostic study missions • Planning and preparation • Data and Information gathering • Developing stakeholder ownership, participation and support • Reporting of results

16. Customs Capacity Building Diagnostic Framework Guidelines on Design, Implementation and Monitoring • Preparation of action plans, project proposals and costing schedules • Identification of project objectives, inputs/activities, outputs, performance indicators, assumptions etc. • Development of a Logical Framework • Implementation advice - input/activity sequencing, project management, stakeholder participation, program support • Monitoring and Evaluation

17. Customs Capacity Building Diagnostic Framework When? • Readiness assessment and Diagnostic Tool piloted in Uganda in May • First version of the Framework will be ready for release in November 2003 • First facilitators will be trained in its use in late 2003 • Available for general use in 2004

18. Supply Chain initiativesOverview • Multilateral approach in consistency with bilateral and regional approach • WCO Resolution on Security and Trade Facilitation of International Trade Supply Chain (June 2002) • Task Force with active participation of stakeholders • Security and facilitation: two sides of the same coin, efficient and effective Customs procedures • Risk management based on information supplied as early as possible • Risks associated with all types of security, including economic security, community protection and terrorist attacks • Implementation of the Revised Kyoto Convention

19. Supply Chain initiativesPackage of Tools to be completed by June 2003 • Re-examination of the Customs Data Model to ensure it includes the necessary data elements to identify high-risk goods : – 27 key data elements to be submitted as advance information • Development of guidelines for a legal and other procedural basis to enable the advance electronic transmission of Customs data: - Multilateral instrument on Mutual Administrative Assistance - Guidelines for national laws -“Advance Cargo Information” (ACI) Customs Guidelines • Development of guidelines for cooperation between Customs and private industry - High Level Business Guidelines

20. Supply Chain InitiativesLonger-term activities • Promotion of the security and facilitation tools • Identification of Customs needs in establishing a supply chain security regime 　　　　　　　　　　 　- Capacity Building Strategy / Diagnostic Framework • Identification of potential donors • Development of Customs techniques and implementation of procedures 　　　　　　　　　　　　　　　　　- Review of Customs Container Convention (1972) 　　　- Development of a Global Information and Intelligence strategy (common risk-assessment methodologies, standard risk file) • Development of databank on advanced technology 　　　　　- Customs Exhibition on security technology (22-24 September 2003, Budapest)

21. Supply Chain InitiativesFuture work • Legal framework for security and facilitation • Implementation of the Advance Cargo Information guidelines • Guidelines for cooperation with business to be developed for each business sector • Further study on potential sources of funding • Implementation of Capacity Building Strategy and Diagnostic Framework • Seek opportunities for partnership with international and regional organizations

22. WCO Time Release StudyDevelopment ofSoftware • To determine the average time required between the arrival of goods and their release • Assists administrations to identify bottlenecks causing delay and find solutions for those delays • Assists administrations to measure the effectiveness of the policy change in their procedures (periodic review) • Software for Customs administrations funded by the World Bank (currently under development)

23. Revision of the Arusha DeclarationAnti-corruption strategies • Leadership and commitment at the management level • Simplified regulatory framework • Transparency to enhance predictability, appeal mechanism • Automation to reduce opportunities for corruption • Reform and modernisation for faster and more user-friendly Customs: Eliminate temptations to bribe officers • Audit and investigation capabilities • Code of conduct • Human resource management: selection, training, salary, promotion, rotation, training, and performance appraisal • Morale and organisational culture: Pride in Customs agency • Relationship with the private sector Original Declaration in 1993, revised in 2003

24. Integrity Development GuideOngoing continuous improvement process in integrity • Self-Assessment: Assess the current strategies and identify areas for further improvement • Integrity Action Plan: Identify responsible officials, establish timelines, and select verifiable performance indicators • Evaluation: • Anticipated outcomes achieved? • Further improvement required? • New initiatives?

25. Regional Peer Review and Information Sharing Process • Self Assessment using the Integrity Development Guide • Peer Review by a Customs administration in the region • Sharing of Best Practice • Results of the review itself would remain the property of the administration Peer review to start later this year Participation – voluntary Global Forum III on Fighting Corruption and Safeguarding Integrity(Seoul, May 2003)

26. For Further Information ...www.wcoomd.org Capacity Building Strategy and Diagnostic Framework Gerard McLinden, Customs Modernization Sub-Directorate gerard.mclinden@wcoomd.org Supply Chain Initiatives Will Robinson, Enforcement Sub-Directorate will.robinson@wcoomd.org Integrity tools Shahid Sheikh, Customs Modernization Sub-Directorate Shahid.sheikh@wxoomd.org