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Further Development of Customs. Riga, 26 November 2008 15 th Anniversary of the State Revenue Service of Latvia. Kunio Mikuriya Secretary General elect World Customs Organization (WCO). Latvia in Global Customs Community. 1990 Restoration of Independence 1992 Accession to WCO

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slide1

Further Development of Customs

Riga, 26November 2008

15th Anniversary of the State Revenue Service of Latvia

Kunio Mikuriya

Secretary General elect

World Customs Organization (WCO)

slide2

Latvia in Global Customs Community

  • 1990 Restoration of Independence
  • 1992 Accession to WCO
  • 1993 State Revenue Service
  • 1996 Accession to Harmonized System
  • 1999 Accession to WTO
  • 2001 Accession to Revised Kyoto Convention
  • 2004 Accession to European Union
slide3

Current Customs Environment

  • 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?

slide4

Customs in financial crisis

  • Trade is not cause of financial turmoil, but could be part of solution
    • Efficiency of economy
    • Fresh capital inflow
    • New export opportunities
  • Efficient customs supports sound trade
    • Facilitation, predictability & security in trade
    • Revenue fraud, smuggling
    • Protection of health & safety of citizens – illicit drugs, firearms, counterfeiting, environment etc.
    • Transnational organized crime
slide5

Confidence in trade & customs

  • WTO Doha negotiations
    • Trade facilitation as win-win situation
    • Efficient border procedures based on WCO standards
  • Political support necessary
    • Financial & human resources for customs modernization
    • Investment in transport & trade infrastructure
    • Coordination with other agencies
    • Compliance – cooperation with tax authorities & business
slide6

Global Customs System

  • “Customs in the 21st Century” approved by WCO Council, June 08
  • Ten building blocks for customs in the 21st C.
  • Linkage with EU strategic initiatives
    • Security & safety demand
    • E-Customs Strategy
    • 2008 Modernized EU Customs Code
slide7

C21 – Ten building blocks

  • #1 – Globally networked customs
    • Seamless end-to-end supply chains
    • Shift from traditional import control to the entire supply chain, including export control
    • Advance electronic exchange of data
    • Mutual recognition of controls and AEO
  • #2 – Better coordinated border management
    • Involve all agencies that regulate cross-border movement of passengers, goods and conveyances
    • Single window
    • One-stop shop
slide8

C21 – Ten building blocks

  • #3 – Intelligence-driven Risk Management
    • Scarce resources need to be targeted at the higher end of continuum
    • 100% scanning
  • #4 – Customs-Business Partnership
    • Understand each other & produce mutually beneficial outcomes
    • Agreements between customs and trusted economic operators (AEO)
slide9

C21 – Ten building blocks

  • #5 – Implementation of modern working methods, procedures and techniques
    • Moving from transaction-based controls to system-based controls
    • Audit-based controls
  • #6 – Enabling technologies and tools
    • Using new technologies to enhance processing, risk management, intelligence and non-intrusive detection
slide10

C21 – Ten building blocks

  • #7 – Enabling (legal) powers
    • Legal authority that enhances enforcement powers
    • Advance information
    • Sharing information domestically and internationally
    • Safety of customs officers
  • #8 – Professional, knowledge-based service culture
    • Knowledge-based and customs-oriented model
    • Minimizing administrative burden on legitimate trade
slide11

C21 – Ten building blocks

  • #9 – Capacity Building
    • Capacity building still crucial for customs modernization and needs to be sustainable
    • Need to promote effective performance criteria for monitoring and evaluation
  • #10 – Integrity
    • Corruption remains a challenge that requires attention
slide12

Moving C21 forward

  • Inventory of existing WCO standards & programs
    • Comparative analysis with ten building blocks
    • Identify the gap & develop best practice & guidelines
  • Basic research & case studies
    • Establishment of WCO research unit
    • Universities & research institutes
    • International & regional organizations
    • Business associations
  • Capacity building
    • Implementation of standards
    • Management development
slide13

Thank you very much!

  • For more information, please visit
          • WCO Web-site: www.wcoomd.org