1 Further Development of Customs Riga, 26 November 2008 15 th Anniversary of the State Revenue Service of Latvia Kunio Mikuriya Secretary General elect.

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Further Development of CustomsFurther Development of Customs

Riga, 26Riga, 26 November 2008November 2008

1515thth Anniversary of the State Revenue Service of Latvia Anniversary of the State Revenue Service of Latvia

Kunio MikuriyaSecretary General elect

World Customs Organization (WCO)

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Latvia in Global Customs CommunityLatvia in Global Customs Community

1990 Restoration of Independence1990 Restoration of Independence

1992 Accession to WCO1992 Accession to WCO

1993 State Revenue Service1993 State Revenue Service

1996 Accession to Harmonized System1996 Accession to Harmonized System

1999 Accession to WTO1999 Accession to WTO

2001 Accession to Revised Kyoto Convention2001 Accession to Revised Kyoto Convention

2004 Accession to European Union2004 Accession to European Union

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Current Customs EnvironmentCurrent Customs Environment

Global financial crisisGlobal financial crisis

Global trade already affectedGlobal trade already affected Access to trade finance Access to trade finance Drop in trade volumeDrop in trade volume

Customs will be affectedCustoms will be affected Pressure on revenue collectionPressure on revenue collection Diminishing investment on border infrastructureDiminishing investment on border infrastructure Rise of protectionist trendRise of protectionist trend

Customs environment and role?

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Customs in financial crisisCustoms in financial crisis

Trade is not cause of financial turmoil, but could Trade is not cause of financial turmoil, but could be part of solutionbe part of solution

Efficiency of economyEfficiency of economy Fresh capital inflowFresh capital inflow New export opportunitiesNew export opportunities

Efficient customs supports sound trade Efficient customs supports sound trade Facilitation, predictability & security in tradeFacilitation, predictability & security in trade Revenue fraud, smugglingRevenue fraud, smuggling Protection of health & safety of citizens – illicit drugs, Protection of health & safety of citizens – illicit drugs,

firearms, counterfeiting, environment etc.firearms, counterfeiting, environment etc. Transnational organized crimeTransnational organized crime

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Confidence in trade & customsConfidence in trade & customs

WTO Doha negotiationsWTO Doha negotiations Trade facilitation as win-win situationTrade facilitation as win-win situation Efficient border procedures based on WCO standardsEfficient border procedures based on WCO standards

Political support necessary Political support necessary Financial & human resources for customs Financial & human resources for customs

modernizationmodernization Investment in transport & trade infrastructureInvestment in transport & trade infrastructure Coordination with other agenciesCoordination with other agencies Compliance – cooperation with tax Compliance – cooperation with tax

authorities & business authorities & business

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Global Customs System Global Customs System

““Customs in the 21Customs in the 21stst Century” approved by WCO Century” approved by WCO Council, June 08Council, June 08

Ten building blocks for customs in the 21Ten building blocks for customs in the 21stst C. C.

Linkage with EU strategic initiativesLinkage with EU strategic initiatives Security & safety demandSecurity & safety demand E-Customs StrategyE-Customs Strategy 2008 Modernized EU Customs Code2008 Modernized EU Customs Code

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C21 – Ten building blocks C21 – Ten building blocks #1 – Globally networked customs#1 – Globally networked customs

Seamless end-to-end supply chainsSeamless end-to-end supply chains Shift from traditional import control to the entire supply Shift from traditional import control to the entire supply

chain, including export controlchain, including export control Advance electronic exchange of dataAdvance electronic exchange of data Mutual recognition of controls and AEOMutual recognition of controls and AEO

#2 – Better coordinated border management #2 – Better coordinated border management Involve all agencies that regulate cross-border Involve all agencies that regulate cross-border

movement of passengers, goods and conveyancesmovement of passengers, goods and conveyances Single windowSingle window One-stop shopOne-stop shop

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C21 – Ten building blocksC21 – Ten building blocks #3 – Intelligence-driven Risk Management#3 – Intelligence-driven Risk Management

Scarce resources need to be targeted at the higher end Scarce resources need to be targeted at the higher end of continuumof continuum

100% scanning100% scanning

#4 – Customs-Business Partnership#4 – Customs-Business Partnership Understand each other & produce mutually beneficial Understand each other & produce mutually beneficial

outcomesoutcomes Agreements between customs and trusted economic Agreements between customs and trusted economic

operators (AEO)operators (AEO)

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C21 – Ten building blocksC21 – Ten building blocks #5 – Implementation of modern working methods, #5 – Implementation of modern working methods,

procedures and techniquesprocedures and techniques Moving from transaction-based controls to system-Moving from transaction-based controls to system-

based controlsbased controls Audit-based controlsAudit-based controls

#6 – Enabling technologies and tools#6 – Enabling technologies and tools Using new technologies to enhance processing, risk Using new technologies to enhance processing, risk

management, intelligence and non-intrusive detectionmanagement, intelligence and non-intrusive detection

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C21 – Ten building blocksC21 – Ten building blocks #7 – Enabling (legal) powers#7 – Enabling (legal) powers

Legal authority that enhances enforcement powersLegal authority that enhances enforcement powers Advance informationAdvance information Sharing information domestically and internationallySharing information domestically and internationally Safety of customs officersSafety of customs officers

#8 – Professional, knowledge-based service #8 – Professional, knowledge-based service culture culture

Knowledge-based and customs-oriented modelKnowledge-based and customs-oriented model Minimizing administrative burden on legitimate tradeMinimizing administrative burden on legitimate trade

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C21 – Ten building blocksC21 – Ten building blocks #9 – Capacity Building#9 – Capacity Building

Capacity building still crucial for customs modernization Capacity building still crucial for customs modernization and needs to be sustainableand needs to be sustainable

Need to promote effective performance criteria for Need to promote effective performance criteria for monitoring and evaluationmonitoring and evaluation

#10 – Integrity #10 – Integrity Corruption remains a challenge that requires attentionCorruption remains a challenge that requires attention

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Moving C21 forwardMoving C21 forward Inventory of existing WCO standards & programsInventory of existing WCO standards & programs

Comparative analysis with ten building blocksComparative analysis with ten building blocks Identify the gap & develop best practice & guidelinesIdentify the gap & develop best practice & guidelines

Basic research & case studiesBasic research & case studies Establishment of WCO research unitEstablishment of WCO research unit Universities & research institutesUniversities & research institutes International & regional organizationsInternational & regional organizations Business associationsBusiness associations

Capacity buildingCapacity building Implementation of standardsImplementation of standards Management developmentManagement development

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Thank you very much!

For more information, please visit

WCO Web-site: www.wcoomd.org