Customs and Border Management
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The document discusses the evolving role of customs and border management, emphasizing the need for high performance in customs to facilitate legitimate trade while combating innovative threats such as counterfeit and smuggling. It highlights the importance of establishing single window systems for streamlined trade processes and coordinated border management across agencies. Technical advancements, efficient risk management, and international cooperation are essential to address current challenges and enhance customs operations.
Customs and Border Management
- 1. Customs and Coordinated Border Management • Customs Environments • Trends and Challenges • Business Case and Solutions Alain Clò E-Government and High Performance Specialist
- 2. Agenda • Customs Public agencies • Evolving Role of Customs • High Performance Customs • Customs Single Window – Trade Process • Border Management - Paradigm Shift • Economic and Customs Landscapes • Addressable Business in Customs Alain Clò- eGovernment Specialist 2
- 3. Customs Public agencies • Central Administration : – Customs management systems – Trade Tariff systems – Trade Quota monitoring systems – Export licensing systems • Customs Border control : – EDI – Anti-Smuggling • Airport- & Port Authorities : – EDI – Customs declarations – Cargo management systems • (Logistics companies/Freight forwarders) Alain Clò- eGovernment Specialist 3
- 4. eCustoms EcoSystem Custom National Gov't Management Ensures Reporting Reporting System Trader is legitimate, System Trader checks export quota & Applies for Export Licensev ensures quota for country of destination has not been WTO/WCO exceeded Harmonized Codes/Tariff WTO/WCO National Quota System Shipping/Logistics Company Ensures all appropriate paperwork is in order & accompanies Product Tariff Transports product to destination System/ Calculator CMS Harmonized Codes Country of Destination Local Shipping/ National Gov't Logistics Partner Port Authorities Monitor status &location of shipment Represents Trader to Country Perform Cargo Management Accept shipment &performs Customs of destination National & Scheduling for local port Declaration. Gov't Accept shipment & performs Customs Declaration Cargo Management
- 5. Evolving Role of Customs • Traditional Role of Customs is Revenue Collections from – Customs Duties and Value Added Taxes – Excise Taxes • Provides Major Revenue Source for States – ~1/3 of National Budgets • The Pressure comes – from Merchandise Volume Growth (Annual Export WTO) China 35% India 26% EU 21% US 13% – And Growing Innovative Threats such as counterfeit, frauds, smuggling, terrorism • World Wide Trade will be around 60$ Trillion by 2020 Alain Clò- eGovernment Specialist 5
- 6. High Performance Customs • High Performance is needed for Customs in order to – Facilitate Legitimate Trade / Optimize the Global Supply Chain – Protect Nations and Citizen from Innovative Threats (counterfeit, frauds, smuggling, terrorism) • Hot Topics are – Single Window System – Coordinated Border Management – Risk Assessment - Authorized Economic Operator – SOA, Identity Management, RFID Alain Clò- eGovernment Specialist 6
- 7. Single Window Systems • Facilitate Legitimate Trade • Single Window for customs services – Paperless, On-Line G2B2G (government-to-business-to- government) cooperation, On-Line C2B (customs to business), One Point of Contact for access to declarations, permits, etc ... – Transforming ot Migrating Bespoke* Legacy Systems to net- and network-centric services using international and regional standards for customs processes (WCO etc.), InterOperable Integrated e- Customs Services systems • Move to modern systems using International and Regional Standards (UN,WTO) Alain Clò- eGovernment Specialist 7
- 8. Customs Single Window - Scenario World Trade Organization World Customs Organization European Commission Politicies DataBase Tariff and Quota Ministry of Finance Single Window Scope Import Risk Licenses Managment Customs Border Control Request Payments of (fraud, counterfeit, Excises, VAT laundry, smuggling, Registration and Duties weapons, drugs, Calculation of Sanitary checks,...) Logistics Duties Traders Exchanges- Alerts Scanner, RFID Foreign Portal Access Customs Logistics Alain Clò- eGovernment Specialist Trader 8
- 9. Trade Processes B2G Alain Clò- eGovernment Specialist 9
- 10. Trusted Foundation Software Alain Clò- eGovernment Specialist 10
- 11. Example: ICDTS National Bank Traders Reference Data Excise ZEFIR Subsystem Module Budget Accounting and TOR Module Tax/Customs Clearing System Reporting Module Analytical Subsystem Customs (Data Warehouse) Validation Government Module CELINA Gateway Declaration Processing System (Export, Risk Analysis Import, Transit) Module Operational Tariff Users in Ministry of with Tariff Calculator Finance and Customs Agencies EU systems: ISZTAR (Master Tariff) TARIC, NCTS, TQS, Central Statistical Office EBTI, ISPP, SMS and CCN/CSI EU NCTS (Transit) others Other Government systems Other Customs systems Alain Clò- eGovernment Specialist *) Modules under development 11
- 12. Function List Tariff data Duty and tax clearing Posting of Debtors’ Main processes Commodity codes Duty rates amounts due management Guarantees’ & Tariff Bank support Deposits’ Tax rates Traders’ support measures Support Roles’ Non-tariff Liquidation Registering Legal basis Vindication management measures Assets’ Sale Status Guarantee Binding tariff Sensitive General General management management information goods’ lists Collaterals Ledger License Amendment Tariff Budget Traders Traders Traders Duty anddue Amount tax Expenses and Traders management service Tariff data calculator Costs support Discipline support support support support clearing Control Balancing Recording and Verification of Collection Release for Notification w/previous risk analysis declaration of dues procedure declarations Declaration processing Alain Clò- eGovernment Specialist 12
- 13. Technical Architecture Front Office Integration & Customs Security Back Office Logistics saml:ldaps https:ssl WS-Security Customs Identity Processing Management Traders Customs e- ID Gateway or Customs Portal Users Integration : JMSGrid DMZ1 Police Firewalls Portal in Cluster DMZ2 Cluster of Web Servers and Coastal Http Transactions Identity Server Cluster mode Cluster DBMS Clustered Load Balancing Workflow in Cluster mode High End Servers Guards ESB + JMS Grid Storage systems Alain Clò- eGovernment Specialist 13
- 14. Design, Development, Implementation • Single Window Design – Automate Single Window – Re-engineer BackOffices – Simplify Trade Documents and Eliminate Duplication – Streamline Trade Transactions Processes • Capability Assessment, Partner/Supplier Selection, Design, • Build, Test, Implement, Operate, Mandate, Governance • Issues : – Trade Processes / Chain Effect / Everything Must Fit – Manage Project Risks, Inter-Institutional Dependancies – Resistance to Change / Organizational / All Electronic • Success Factors : Relevancy to Firms, Commitment from Top Government, Cooperation between private sectors and government, Simplification, Standardization Alain Clò- eGovernment Specialist 14
- 15. Border Management - Paradigm Shift • Control focus • Facilitation/control balance • High levels of Physical inspection • Intervention by exception • Focus on the goods • Focus on information • Focus on identifying non-compliance • Compliance/non-compliance balance • One size fits all • Flexible solutions for different clients • Limited use of ICT • Extensive use of ICT • Adversarial relationship with trade • Constructive partnership with trade • Competition between agencies • Single window (or single submission) • Limited incentives for compliance • Strong incentives for compliance • Limited cooperation with neighbors • Extensive cooperation and sharing • Limited operational statistics • Clear measures of performance Alain Clò- eGovernment Specialist 15
- 16. Other Challenges and Trends • Efficient Risk Management (risk-classification-increased/ reduced control), Authorized Economic Operator • Coordinated Border Management, Cross Border and Cross- Agency Information Exchange/ reporting co-operation (tax authorities – border security – health & food inspectorates) • Fraud Detection (customs duties and taxes) • Anti-Smuggling Alain Clò- eGovernment Specialist 16
- 17. Economic and Customs Landscapes Initiatives TransEuropean Customs InfoNet EU CUSTOMS & and Customs and Tax systems FISCALIS 2007-2013 Single Window Paperless customs US Single Window ASEAN Customs modernisation and Single Window TradeNet and TradeExchange SINGAPORE Alain Clò- eGovernment Specialist 17
- 18. Addressable Business in Customs • Every country must have an IT system for – Customs duties and import tax collection – Supporting all customs and country protection – Procedures (movement of goods) • 149 countries in WTO • 25 + 5 EU countries (HS codes, national procedures) • Evolution of role and operations of customs Authorities and agencies means the need to restructure customs infrastructure every 10-20 years. • An automated custom system 5M$ average • Addressable WW Customs Solution IT Markets : > 3Billion $ Alain Clò- eGovernment Specialist 18
- 19. Layers – Who Does What Politics, Quotas and Tariff : European Commission DG Taxud, WCO, WTO Ces intitutions développent les directives politiques, et fournissen aux pays des outils de type Base de Données Quota et Tariff. World Bank, United Nations, UNECE, UNCTAB, USAID Ces organismes fournissent des fonds financiers aux pays en voie de développement et sont souvent maître d'ouvrage. Consultants, Integrators : Accenture, Crown Agents, IntraCom, Gainde Ces sociétés sont maître d'oeuvre/ouvrage des projets Douanes. E-Customs Solutions and ISVs: Bull, Crimson Logic, IBM Ces sociétés développent et vendent des logiciels pour les Douanes. Vendors, Products, Technologies: Microsoft, IBM, Oracle, SAP Ces sociétés développent et vendent des produits informatiques non spécifiques aux Douanes. Alain Clò- eGovernment Specialist 19
- 20. References • EU Commission – Customs and Taxations http://ec.europa.eu/taxation_customs/index_en.htm • Accenture Customs 2020 http://www.accenture.com/Global/Services/By_Industry/Governm • e-Customs Best Practices, Global Government, Sun Microsystems, Inc. Alain Clò- eGovernment Specialist 20
- 21. Customs and Coordinated Border Management • Business Development • Project and Team Management • Solution Architect Alain Clò E-Government and Thank You ! High Performance Specialist Alain Clò- eGovernment Specialist 21