Wco

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A study on

world customs organization

Presented To:

Dr. Yogesh C. Joshi

Presented By:

Hitesh Domadia (11F17)

Rajesh Ghediya (11M31)

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Formation : January 26, 1952 (60 years ago)

Type : Intergovernmental organization

Location : Brussels, Belgium

Membership : 178 customs administrations

Official languages : English and French

Secretary General : Kunio MikuriyaWebsite : www.wcoomd.org

Former name : Customs Co-operation Council

Introduction

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The World Customs Organization (WCO), established in 1952 as the

Customs Co-operation Council (CCC) is an independent

intergovernmental body whose mission is to enhance the effectiveness

and efficiency of Customs administrations.

WCO offers its Members a range of Conventions and other international

instruments, as well as technical assistance and training services

provided either directly by the Secretariat, or with its participation. The

Secretariat also actively supports its Members in their endeavors to

modernize and build capacity within their national Customs

administrations.

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Objectives of the study

1. To study the role of world customs organization (WCO)

2. To study the various goals of WCO

3. To study the constitution and history of World Customs

Organization.

4. To study product classification system of WCO.

5. To study the role of WCO in Trade Facilitation.

6. To study the objectives and functions of WCO

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Literature Review

Anderson, H. James and Cheryl W. Gray (2007), Policies and Corruption

Outcomes in Anticorruption in Transition, The World Bank.

The authors analyse corruption in several Eastern European countries in 2002-2005.

The authors assert that during this period customs related bribery decreased in

many countries due to systematic efforts to combat corruption that included the

revision of legislation, implementing risk analysis, random audit, and stronger

enforcement and sanctions mechanisms. Drawing from a project on trade and

transport facilitation in Southeast Europe led by the US, the World Bank, the EU

and eight participating governments, the authors also note a positive impact of

international cooperation for streamlining procedures in these countries which they

assert led to improve efficiency and lower corruption.

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Contd

Cantens, Thomas, and Samson Bilangna (2010), Reforming Customs by

measuring performance: a Cameroon case study World Customs Journal 4.

Public-sector corruption is a problem without easy solutions. Much of the academic

literature describes the problem and its impact on the organization, but fails to offer

possible solutions, especially ones that are social scientifically sound in that they

can be benchmarked and measured over time. In this paper, the authors present the

formulation, implementation, and evaluation of the use of performance contracts

between the Customs Director General and frontline officers conducted at the

Cameroon Customs.

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History of WCO

The history of the WCO began in 1947 when the thirteen

European Governments represented in the Committee for

European Economic Co-operation agreed to set up a Study

Group. In 1948, the Study Group set up two committeesan

Economic Committee and a Customs Committee. The

Economic Committee was the predecessor of the

Organization for Economic Co-operation and Development

(OECD), the Customs Committee became the Customs Co-

operation Council (CCC).

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In 1952, the Convention formally establishing the CCC came into

force. the inaugural Session of the Council was held in Brussels

on 26 January 1953. After years of membership growth, in 1994

the Council adopted the working name World Customs

Organization, to more clearly reflect its transition to a truly global

intergovernmental institution.WCO Members are responsible for

processing more than 98% of all international trade.

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Vision of WCO

The World Customs Organization is internationallyacknowledged as the global centre of Customs

expertise and plays a leading role in the discussion,

development, promotion and implementation of

modern and secure Customs systems and procedures.

It is responsive to the needs of its Members and its

strategic environment, and its instruments and best

practice approaches are recognized as the basis for

sound Customs administration throughout the world.

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Mission of WCO

The World Customs Organization is an independentintergovernmental body whose mission is to enhance

the efficiency and effectiveness of Member Customs

administrations, thereby assisting them to contribute

successfully to national development goals,

particularly in the areas of trade facilitation, revenue

collection, community protection and national

security.

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Working Bodies of WCO

Council

Policy Commission

Finance Committee

Audit Committee

Tariff and trade affairs

Procedures and facilitation

Enforcement and compliance

Capacity building

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Tariff and trade affairsHarmonized System Committee

WCO develops and maintains internationally standardized

system of names and numbers for classifying traded

products. The system is known as The Harmonized

Commodity Description and Coding System (HS).

It comprises about 5,000 commodity groups; each

identified by a six digit code, arranged in a legal and

logical structure and is supported by well-defined rules to

achieve uniform classification.

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Contd

The system is used by more than 200 countries and

economies as a basis for their Customs tariffs and for

the collection of international trade statistics. Over 98

% of the merchandise in international trade is classified

in terms of the HS.

The HS contributes to the harmonization of Customs

and trade procedures, and the non-documentary trade

data interchange in connection with such procedures,

thus reducing the costs related to international trade.

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Classification of product

All existing products can be classified into the existing HS

utilizing the General Rules of Interpretation. This structure

allows for placement through research of the products form

and function.

This applies to all products for classification and is able to

accept new products for which there is no current classification

through the use of the other classification. This term

encompasses all products of the nature in which the Header

and Sub-header describe.

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Trade facilitation

In recent years the term, trade facilitation, has become

extremely popular and, therefore, applied to an ever-

growing number of activities. It is not difficult to

understand how the term, trade facilitation, has come to

apply to a broad range of undertakings. Trade facilitation

is sometimes mistakenly viewed as speeding up the

clearance of goods regardless of revenue and other

implications, thereby solely delivering benefits to the

private sector.

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Contd

Indeed, when the WTO Doha Development Round

started, some observers wondered if trade facilitation

might not be better described as trade efficacy. This

implies that the goal of the negotiations should include

the achievement of the broad objectives of Customs

controls, such as revenue collection, security and

community protection in an efficient manner, thereby

facilitating legitimate trade.

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World Customs Organisation In The

21st Century

The main focus of WCO is Enhancing Growth and Development through

Trade Facilitation and Border Security.

CUSTOMS ENVIRONMENT

The following issues, identified through a process of scanning the

international environment and drivers, have guided the preparation of the

2009/2010 - 2011/2012 Strategic Plan.

The environment in which the WCO and its Members operate will

continue to be defined by the core roles of Customs: (1) Revenue

collection; (2) National security; (3) Community protection; (4) Trade

facilitation; and (5) Collecting trade data.

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Challenges faced by WCOThe following list includes many of the current challenges

faced by Customs administrations around the world

today:

The need for the Customs community to be responsive tothe global financial crisis and join global efforts to sustain

confidence in the trading system. It is important to avoid

the introduction of new barriers to trade, or measures that

will increase costs and generate additional delays at the

border. The use of risk management is a key element in

this connection;

d

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Contd

Continued investment by the private sector in modern

manufacturing, information and supply chain

management systems, supported by information and

communication technologies, and a resultant increase in

expectations for prompter and more cost-efficient and

predictable border processing of goods and people.

Heightened awareness of the external drivers that add

complexity to the global trade landscape, including

initiatives to further liberalize trade and more complex

trade rules

C d

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Contd

Proliferation of regional trade agreements involving

preferential rules of origin, resulting in a variety of rules of

origin and procedures, which add costs to both governments

and business.

Heightened awareness of the adverse economic and social

effects of the infringement of Intellectual Property Rights.

More complex policy and procedural requirements associated

with meeting international commitments and standards for

efficient and effective border procedures, that enhance co-

ordination and co-operation among border agencies.

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Challenges For Governments

The central challenge that states face is to ensure that

globalization becomes a positive force for all the worlds

people.

a) Promoting socio-economic development: Ensuring the proper

management of social and economic development by

developing and implementing appropriate socio-economic

policies;

b) Creating the conditions for economic growth: Ensuring a

level playing field and nurturing an efficient international

trading system, which is critical to economic growth and the

collection of state revenues;

C td

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Contdc) Controlling borders: Ensuring secure borders is one of the oldest

functions of the state. Carrying out this responsibility in a very

open world is more important and challenging than ever. States

are recognizing that international trade and economic integration

raise new global security challenges that have to be addressed

internationally so that common solutions can be developed;

d) Providing security: The concept of providing security, also one of

the core functions of the state, has expanded from the traditional

notion of military and political national security to also includenational economic security; and Protecting citizens: Protecting

citizens against threats such as contaminated food, unsafe toys

and consumer products, fake medicines and other counterfeit

products also provide new imperatives for Customs.

C d

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Contd

e) Protecting citizens: Protecting citizens against threats

such as contaminated food, unsafe toys and consumer

products, fake medicines and other counterfeit

products also provide new imperatives for Customs.

21 t C t C t A N

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21st Century Customs: A New

Dynamic Role

The role of Customs is to control the movement of

goods and thereby secure the states interests and

safeguard revenue collection. The key aims have been

to ensure compliance with state policies and laws

applicable to the cross-border movement of goods, to

combat smuggling, and to secure borders, whilst

ensuring the facilitation of legitimate trade.

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Future Role Of The WCO

The WCO is an inter-governmental organization

representing its Members at global level. In order to

address the challenges facing Customs, the WCO needs a

new supportive strategy that includes:

Strengthening the value proposition offered by Customs

to support the international trading system, facilitate

international trade and enhance safety and security at the

border;

C td

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Contd

Representing the Customs communitys point of view at

global level and strengthening relationships with otherinternational organizations by establishing and

maintaining high-level and technical relationships with

relevant international organizations to promote Customs

and the role of the WCO;

Providing sustainable Customs capabilities through

capacity building;

Repositioning the WCO Secretariat to support its

Members;

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Goals of WCO

Goal 1 - International Co-operation and Information Sharing

Goal 2 - Harmonization and Simplification of Customs Systems

and Procedures

Goal 3 - Compliance and Enforcement

Goal 4 - Trade Facilitation

Goal 5 - Supply Chain Security and Facilitation

Goal 6 - Capacity Building

Goal 7 - Promotion and Marketing

Goal 8 - Research and Analysis

Goal 9 - Good Governance and Use of Resources

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E-learning Programme

In 2003 the World Customs Organization (WCO) introduced

an e-learning program as an essential element of its training

strategy to improve the quality and quantity of training in

customs administration worldwide.

With its worldwide membership, the WCO is now recognised

as the voice of the global customs community.

The WCO also facilitates anti-counterfeiting and piracy

initiatives, public-private partnerships, integrity promotion,

and sustainable global customs capacity building programmes.

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The WCO e-learning program is a comprehensive,

groundbreaking training tool which offers an integrated

learning environment designed to facilitate easy and effective

training to cover the broad scope of the international trade

environment.

With the positive application of the WCO e-learning program,

the competency levels of customs and trade administration, a

key issue for the 21st century, should be systematically

improved.

Contd

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Contd

The WCO e-learning program is a comprehensive,

groundbreaking training tool which offers an integrated

learning environment designed to facilitate easy and effective

training to cover the broad scope of the international trade

environment.

With the positive application of the WCO e-learning program,

the competency levels of customs and trade administration, akey issue for the 21st century, should be systematically

improved.

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