WCO Economic Competitiveness Package

“Expert Group Meetingon

Transport and Trade Facilitation in ESCWA region”10-11 April 2013, Dubai

• BackgroundEconomic uncertainty due to ongoing Global Financial CrisisWTO negotiationsRegional integration

• Customs’ contributionPromote Revised Kyoto Convention and other toolsEnhance cooperation among all stakeholders in international tradeShare best practices among MembersDevelop new tools as appropriateCapacity building

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Economic Competitiveness Package

ECP: Economic effects

Examples of Trade Facilitation Interventions• Better border and Customs management• Improved infrastructure• Open and competitive market in logistics and service sector• Harmonized regional standards

Reduction of trade costs

Advantage for firms

Better export performance and more FDI

Job creation and increased government revenue

Economic growth and competitiveness

Poverty reduction/ Prosperity

WCO instruments• Customs in 21st Century• Revised Kyoto Convention• SAFE Framework of Standards,

etc.ECP

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Revised Kyoto

Convention

SAFE Framework

of Standards

Time Release Study Guide

Authorized Economic Operator

Data Model

Single Window Compendium

Transit

SMEs

Globally Networked Customs

Risk Management Compendium

Integrity

Coordinated Border

Management

Information Exchange

ECP: Conceptual chart

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Informal Sector

Action Plan in DecemberRegional outreach to assess Members’ needsCase studies to share best practicesDevelop new or adapt existing tools as necessaryCapacity building

Promotion of Revised Kyoto ConventionStrategic discussion on the role of RKC Management CommitteeImplementation, interpretation and systematic review

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PC/Council recommendation: Way forward

Kyoto Communiqué (WCO Policy Commission December 2012)

11. Policymakers worldwide have articulated the positive impact that international trade and trade facilitation have on economic recovery and sustainable growth. As the central public sector border agency, Customs administrations are integral to the smooth movement of goods, conveyances and people across borders.

12. To that end, the WCO has contributed - through its standards, tools, and technical assistance - support for increasing economic growth and competitiveness by Members. This culminated in the adoption of the innovative Economic Competitiveness Package (ECP) at the 119th/120th Council Sessions in June 2012.

13. The ECP assists Customs administrations with border management responsibilities and supports regional integration. The ECP could provide practical implementation guidance in preparation for any future WTO agreement on trade facilitation. Under the ECP, the WCO is collecting innovative and best practices on matters such as coordinated border management (CBM); IPR border enforcement; small and medium sized enterprises (SMEs); informal trade practices; and transit.

14. The Policy Commission endorsed the ECP Action Plan and urged its steady implementation through technical assistance, including needs assessment and gap analysis. The Policy Commission also encouraged regional entities to develop programmes to implement the ECP in co-operation with the WCO and regional development banks.

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Action Plan

Awareness-raising and Member’s needs assessment

4 Areas and 21 Actions for the enhancement of Economic Competitiveness

Promotion of existing instruments and Tools

Regional seminars/workshops, Publication, Needs assessments, etc.

Regional strategic plan, Capacity building, Donor coordination meeting,Accreditation of more experts, E-learning for the RKC, etc.

Collection and dissemination of innovative and best practices on existing tools and Informal trade, SMEs, CBM and Transit, etc.

Collection and dissemination of innovative and best practices

Development of new tools, Further research on ECP,regular report to the PTC, etc.

Development and elaboration of the ECP

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CouncilJune2012

PTCNov 2012

PCDec 2012

PC & Council

June 2013

Dec 2013

Dec 2014

ECP

Concept of ECP

List of componentsSchedule of instruments and tools(technical explanation)List of tools foraccession to the RKCResearch Paper

Action Plan

Best practices

New instruments or tools for the ECP

Capacity Building

Discussion

Discussion

Discussion

Collecting Best Practices

Development of new tools (where appropriate)

Adopted

Adopted

Approval

Approval

Discussion

Development of the ECP

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Adopted

Schedule of existing instruments and toolsThe Schedule provides technical details of all related instruments and tools. It describes prime text and supporting instruments & tools in each area.

Section 1 - PRIME TEXTINSTRUMENT DESCRIPTION AND AVAILABILITY

2-4-1Revised Kyoto Convention (RKC)

Standards 6.3 to 6.5 of the General Annex to the Revised Kyoto Convention set out principles of Customs Risk management. The Guidelines to these Standards cover many aspects of risk management, including control method, supporting infrastructure and examples of a Customs control process.

The Legal Text is available here.The Guidelines are available on the WCO online shop.

2-4 Risk Management

Section 2 - SUPPORTING INSTRUMENTS & TOOLS

INSTRUMENT/TOOL DESCRIPTION AND AVAILABILITY2-4-2 The Compendium on Risk Management

The Compendium was adopted by the Customs Co-operation Council in 2011

- The compendium contains the systematic application of management procedures and practices which provide Customs with the necessary information to address movements or consignments which present a risk.The Compendium is available here.

(Example)

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5 Areas and Examples of tools and instruments

Publication, Establishment of Official Website, Establishment of Enquiry Points, Advance Ruling, etc.

Formalities and Requirements, Simplified Procedures, Risk Management, Audit Based Control, AEO, etc.

Standardization & harmonization of sets of data, Unique Consignment Reference, Single Window, etc.

Customs to Customs Partnerships, Customs to Business Partnership, etc.

Time Release Study, Customs International Benchmarking

Revised Arusha Declaration

Recommendation on the use of world wide web

sites by Customs

Recommendation on the application of HS

Committee Decisions

Technical Guidelines on Binding Origin

Information

1. Transparency & Predictability

Compendium on Risk

Management

Post Clearance Audit Guideline

AEO Guideline

ATA Convention

Istanbul Convention

Customs Guidelines on Integrated Supply Chain

Management

SAFE Framework of Standard

2. Modernized Procedures & formalities

WCO Data Model WCO Unique Consignment Reference

WCO Single Window Compendium

3. Use of Information and Communication Technology (ICT)

Nairobi Convention

SAFE Framework of Standard

Model Bilateral Agreement

4. Partnership and Cooperation

TRS Guide Customs International Benchmarking Manual

5. Performance Measurement

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WTO TF measures referenced toWCO instruments and tools

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Action Plan - Regional needs

Considering the fact that WCO Members’ needs in respect of the ECP are very different, the adequate assessment of such needs is definitely important for the implementation and the development of the ECP.

WCO will Organize regional workshops/seminars for the ECP in all WCO regions by June 2014

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Thank you

Milena BudimirovićTechnical Officer

Procedures and Facilitation Sub-DirectorateWorld Customs Organization (WCO)

milena.budimirovic@wcoomd.org