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The recent WCO agenda and the Framework of Standards. GFP meeting 20 September 2005, Geneva. Kunio Mikuriya Deputy Secretary General World Customs Organization (WCO). The recent WCO agenda. Security and facilitation of supply chain

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The recent WCO agenda and

the Framework of Standards

GFP meeting

20 September 2005, Geneva

Kunio Mikuriya

Deputy Secretary General

World Customs Organization (WCO)

the recent wco agenda
The recent WCO agenda
  • Security and facilitation of supply chain
    • WCO Framework of Standards to Secure and Facilitate Global Trade (the Framework)
  • WTO negotiations on trade facilitation
  • Capacity building
  • Combat against counterfeiting

Framework of Standards

  • Adoption at the Council in June 2005
    • Framework
    • Letter of Intent to implement the Framework
  • Letter of Intent
    • 95 written letters received, as of August 31
    • EU and its 25 member states expressed their intention to join in the near future
  • Implementation of the Framework
    • Self-assessment checklist sent to 95 administrations to assess their CB needs


  • Secure & facilitate trade, improve customs operations
  • Modern customs principles
    • Risk management, technology, partnership etc.
    • Inclusive of the existing WCO instruments, incl. Revised Kyoto, improved to address security and facilitation
  • Avoid unnecessary burden
    • Different sets of requirements
    • Duplication with other agencies’ requirements
  • Modernize customs and prepare for the 21st Century
    • Security and facilitation as two sides of the same coin – efficient & effective customs
four core elements
Four core elements
  • Use of harmonized, advance electronic information to identify high-risk cargo
    • Inbound, outbound, transit
  • Consistent risk management
    • Security threats
  • Inspection on outbound cargo, using non-intrusive detection technology
    • At the reasonable request of receiving nation
    • Comparable risk targeting methodology
  • Benefit of facilitation for legitimate trade


  • Nation/governments
    • Security and facilitation – economic growth & development
    • Improve revenue collection, proper application of national laws and regulations
    • Economic & social protection, support foreign investment
  • Customs
    • Exchange of timely and accurate information
    • Improve control, better allocation of resources
    • Customs reform
  • Business
    • Secure, facilitate and promote international trade
    • Authorized Economic Operators
two pillars
Two pillars
  • Customs-to-customs network arrangements
    • 11 standards
    • Encourage cooperation among Customs administrations on the basis of common and accepted standards
    • Use of advance electronic information to identify high-risk cargo
  • Customs-to-business partnership
    • 6 standards
    • Establish partnership
    • Identify business with a high degree of security guarantee as “Authorized Economic Operator” (AEO)
    • Tangible benefits to AEO
      • Quicker movement of low-risk cargo, uniformity and predictability, etc.
enhanced risk management
Enhanced risk management
  • Shift from 100% physical inspection to intelligence-based selective approach
  • Advance data – pre-arrival risk assessment
    • Reduction in clearance time
    • Time Release Study
  • A consistent risk management
    • WCO Global Information and Intelligence Strategy
  • Harmonize advance electronic information (security)
    • Contained in the Customs Data Model

Customs Data Model

  • A maximum framework of standard datasets / electronic message formats for border procedures
  • B2B, B2G, G2G exchange of information
  • UN/EDIFACT – interoperable with trade/transport
  • Current work for regular update
    • Information requirements of other agencies
    • Single Window
  • Unique Consignment Reference (UCR)
    • Bring together information to monitor and facilitate trade
    • Electronic staple – access key to tracking, audit, reconciliation

Implementation of the Framework

  • Phased approach
    • In accordance with each administration’s capacity and legislative authority
  • A holistic approach
    • Political will and integrity
  • Involve other border agencies – integrated border management and control
  • WCO Capacity Building
    • Replies to checklists
    • Donor meeting – 3 Oct.
    • High-Level Strategic Group – 10,11 Oct.

WTO proposals

  • Art V (transit) – simplified, transparent transit
  • Art VIII (fees and formalities) – risk management, automation, electronic submission, single window, border agency coordination, clearance time etc.
  • Art X (publication and appeal) – website, advance rulings, consultation, appeal procedures etc.
  • Customs-related proposals are basically covered by Revised Kyoto Convention
    • WCO instruments included in some proposals
  • WTO agenda: an opportunity for customs/business
    • Political attention
    • Support implementation of RKC, Framework

Capacity Building

  • A comprehensive approach based on inte’l standards
  • WCO’s role
    • Assist members in ownership for modernization
    • Intervention at early stage (diagnostic, program planning) and evaluation stage
    • Enhance political awareness and coordination
    • Diagnostic tools and developing a pool of experts
    • Regional approach
    • Research, partnership with universities
  • Establishment of WCO Capacity Building Directorate


  • G8 statement (June 2005)
    • Enforcement of IPR protection
    • WCO, Interpol to play an active role
  • WCO activities
    • Awareness raising for political support
    • Model legislation and other tools to assist customs in enhancing enforcement
  • Way forward
    • IPR Task Force on 26, 27 October to formulate a strategy
    • Customs legal authority
    • Capacity building