World Customs Organization An Update of Capacity Building Tools

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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

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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

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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

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Customs Capacity Building Strategy Purpose 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

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Customs Capacity Building Strategy Content 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

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Customs Capacity Building Strategy 4. 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

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Customs Capacity Building Strategy 5. 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)

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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

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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 countrys
  reality based on gap analysis
• Significant demand from Members and
  practitioners

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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)

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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

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WCO Time Release StudyDevelopment of Software

• 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)

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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

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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?

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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)

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For Further Information ...www.wcoomd.org

• Capacity Building Strategy and Diagnostic
  Framework
• Gerard McLinden, Customs Modernization
  Sub-Directorate
• gerard.mclinden_at_wcoomd.org
• Supply Chain Initiatives
• Will Robinson, Enforcement Sub-Directorate
• will.robinson_at_wcoomd.org
• Integrity tools
• Shahid Sheikh, Customs Modernization
  Sub-Directorate
• Shahid.sheikh_at_wxoomd.org