Sooryadev Singh PURMAH, MBA Team Leader, Customs
(Trade Facilitation & Customs Cooperation)Joined Customs & Excise Dept in Feb 1972
Total area: 67×46 = 2040 sq kmPopulation: 1.3 million (est)Mono-crop economy to a diversified one: sugar, industrial manufacturing, tourism, financial services, freeport activities, ICT, sea food hub87% of tariff lines at zero rateIsland state with no natural resources
World Bank Doing Business 2012 Out of 183 countries:
• Ease of Doing Business - 23rd
• Trading Across Borders - 21st
• Paying Taxes:11th
MRA-Customs Department Collects 34 % state
revenues
670 customs officers
1 Seaport and 1 International Airport
350,000 declarations per year (total)
Triggers for Change: Trade Facilitation v/s Control
Limited resources in contrast with dramatic increase in volume of trade & travel
Globalization: Liberalization of governmental policies on cross-border movement of trade and resources
Technological developmentDevelopment of institutions to support and facilitate
international trade Increased global competitionProtection of society & terrorismPublic criticism
Objectives of Customs Trade Facilitation Programme Attain revenue targets Implement Government
economic policiesReduce economic
distortions associated with smuggling and commercial fraud
Create a ‘level playing field’ for traders
Facilitate honest traders while targeting high risk ones
Promote transparencyPromote voluntary
complianceEnsure predictabilityReduce discretion and
corruption
Managing Change at Mauritius Customs
• WCO Customs Reform & Modernization Programme (CRMP) as from 1998 and Project Management Concept as from end of 2002
• CRMP : Orientation Meeting with policy makers → Diagnosis & Planning: Team of Facilitators - WCO, HM Customs, Revenue Canada: Data Collection, Diagnosis & Report: 3 Workshops
• Project Management Concept: Team constituted & Strategic planning approach
Outcomes of Diagnosis Mission & Implementation Strategy
1. Outcomes• Vision: Towards a clean & efficient Customs• Mission: Fiscal, Economic, Protective, Business Support• Strategic plans: Based on 6 Primary Functions
2. Implementation• Steering Committee• Change Management Team (+ consultants)• Implementation Teams in 6 priority areas
• Work Improvement Teams• Evaluation• Recruitment of expatriates in Oct 2006 & Feb 2009 to boost
ongoing reforms
Major Changes Over The Years1. Paradigm shift: gatekeeper to facilitator2. Partnership with business3. Automation - Customs Management System (CMS/EDI).4. Implementation of WTO Valuation Agreement, Post Clearance
Control System5. Schedule of duties/SOP manuals for officers6. Redeployment of staff and creation of various enforcement units 7. Code of ethics for officers and customer charter for stakeholders8. Complaints Bureau9. Tariff Information Unit10. Autonomous unit for air-freighted goods 11. Customs Investigation and Intelligence Unit including a drug cell12. Non-Intrusive Inspection Techniques (NII): Scanners13. Centralized Risk Management Section
Other Trade Facilitation InitiativesSingle Window office for Cargo InspectionSingle Window office for ExportersEcertificate of originCARGO FAST TRACK Program - AEO projectCargo Community System – Electronic platform for
tracking & tracing of containersExpress Courier Hub Project Integrated Tariff and Tariff Classification Rulings
databases on web-siteRules, regulations, procedures, SOP manual for
stakeholders & administrative forms available on websiteIntranet system for officersAppeal Mechanism Excise reforms
Requisites for Capacity Building in Customs
WCO definition: ‘Developing or acquiring skills, competencies, tools, processes and resources needed to improve the capacity of the administration to carry out its allotted functions and achieve its objectives.’
Sustained Political Will & CommitmentLeadership & Stakeholder SupportOwnership & Participation of Customs PersonnelAdequate Human and Financial ResourcesEffective Human Resource Management PracticesParadigm shift: Gatekeeper Mentality to FacilitatorPartnership with Business CommunityCommunication StrategyStrategic Management Approach & Change Management
Model
Strategies to create a“World Class” Customs Service
Institutional InfrastructuralTechnologyTechnical
assistance/consultantsApply international
Customs conventions , best practices and control techniques (e.g., risk management & post-clearance controls)
Modernize Customs law and regulations
Simplify, standardize & harmonise customs procedures
Effective Human Resource Management Practices
WCO & WTO Trade Facilitation Instruments
HS Convention RKCArusha DeclarationCustoms Reform & Modernization ProgrammeColumbus Programme – WCO Framework of StandardsWTO Valuation AgreementTime Release StudyWCO Data ModelRules of origin
Institutional Change - 1 July 2006 Mauritius Revenue Authority (MRA): revenue depts
under one umbrella as a corporate body to act as agent of government:
Vision: World Class Revenue ServiceMission: Continually reform and modernize in order
to achieve effectiveness and efficiency comprising with highly motivated and skilled staff.
Core Values: Integrity, Responsiveness, Fairness, Transparency, Accountability
MAURITIUS REVENUE AUTHORITY ORGANISATION STRUCTURE
Existing Offices Renovated to Improve Customer ServiceExisting Offices Renovated to Improve Customer Service
‘RED/GREEN’ Channel @ SSR Arrivals
Customer Counters @ SSR Air Cargo
Open Concept Offices @ IKS Building ‘One Stop Shop’ @ Dragon House
“Single Window” Cargo Inspection Office at Port
Custom House
Fully Operational since December 2009
AUTOMATION - AUTOMATION - CMS/EDI: Continuous enhancement since 1998From 22 to 5 steps, minimal physical contact
officers/brokers, real time informationElectronic submission of cargo manifest, matching with
customs declarationsRates according to HS entered, automatic calculation, etc.Risk management module: Entry Selection/Selectivity
Criteria/identify risk factors - Green/Yellow/Red/Blue.Release of goods through message to freight stations.Transfer of FCL containers: automated transfer document.Epayment, E certificate of origin, Valuation database, Tariff
rulings, Integrated tariff, Import permitExternal Users: Ministries, VAT, Port Authority, Freeport,
Brokers , Freight Agents
Port AirportNuctech X-Ray ScannersNuctech X-Ray Scanners((operational since Feb 2006)operational since Feb 2006)
Training and Development Initiatives • Management Development , Project
Management , Investigative & Control Techniques, Risk Management
• Post clearance auditing• Laws & Regulations, Processes & Procedures• ICT & Integrity • Customer Care, Performance Management
System
Staff and Stakeholder Training Staff and Stakeholder Training
K9 Drug Detector DogsK9 Drug Detector Dogs
Year 2000/01
2001/02
2002/03
2003/04
2004/05
2005/06
2006/07
2007/08
2008/09
2nd ½ 09
Customs Duty (billions)
3.47 3.29 3.50 4.04 3.93 3.09 2.14 2.68 1.54 0.82
Excise Duty (billions)
4.99 4.90 5.36 5.75 6.79 6.72 7.33 7.90 12.11 4.62
VAT on Imports (billions)
3.42 4.07 5.65 6.34 7.68 8.47 9.45 11.45 8.51 6.17
Total duties and taxes (bilions)
11.88 12.26 14.51 16.13 18.40 18.28 18.92 22.03 22.16 11.61
2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2nd ½ 090.00
5.00
10.00
15.00
20.00
Customs Duty
Excise Duty
VAT on Imports
Total duties and taxes3.47 3.29 3.504.04 3.93
3.092.14
2.681.54
0.82
4.99 4.90 5.36 5.756.79 6.72
7.337.90
12.11
4.623.424.07
5.656.34
7.688.47
9.45
11.45
8.51
6.17
11.88 12.26
14.51
16.13
18.40 18.2818.92
22.03 22.16
11.61
C us toms D uty
E x c is e D uty
VAT on Imports
Total duties and tax es
DUTIES AND TAXES COLLECTED BY CUSTOM S
2008 2009 2010red channel 18 16 17green/yellow channel 82 84 83
0
10
20
30
40
50
60
70
80
90
%
CHANNELING OF DECLARATIONS
IntegrityInternal Affairs & Internal Audit Divisions within
MRA2006: Customs Department awarded by ICAC the
Best Anti-Corruption Framework Award in the Public Service and the most improved public sector institution.
2010: Integrity Risk Assessment conducted for whole MRA: MRA awarded Best Anti-Corruption Framework & ranked first in Management Commitment and Integrity Management
Projects in the pipelineMauritius Trade Portal based on the Single
Window ConceptPaperless Customs Internal Appeal Mechanism & Prescribed
Administrative PenaltiesAccounts Manager.
End Note• In today’s world, the only constant is change - Need for
continuous improvement• For change to be sustainable - Need for trust and
commitment through leadership, employee participation, communication & motivation
• Comment from a change agent: ‘Customs reform is like pregnancy. It is often fun and easy to conceive, but delivery is long and painful.’
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