Topics possible points of discussion include but not limited to the following questions. In particular, it describes how customs practices certain have recently evolved in response to the globalization of manufacturing, justintime production processes. Public administration is pleased to offer this publication which summarizes the discussion and papers presented at the meeting of the ad hoc expert group on strategies for improving resource mobilization in developing countries and countries with economies in transition. But countries must give tax reform time to bear fruit. Changing customs and millions of other books are available for amazon kindle. Paradigms of tax reform the philosophy of tax reform has undergone significant changes over the years in keeping with the changing perception of the role of the state. Such physical inspections, however, impede rather than facilitate trade. Purpose of the paper and methodology the study aims to take stock of the changes introduced in customs administration, identify challenges, and initiate a reflection on solutions. Account management serviceams as an application of egyptian. Risk management for targeting customs controls in developing. Challenges and strategies for the reform of customs administration por michael mr. Because of the legally binding nature of the rkc, an rkc contracting party is able to announce that its customs reform and modernization. Of course she expected to hear complaints taxpayers often have many complaints. New actors, industries, and modes of conducting business have emerged, disrupting the traditional global supply chain.
Challenges and strategies for the reform of customs administration kindle edition by keen, michael, international monetary fund. Examining the role of global aviation in containing the spread of infectious diseasewritten testimony of acting commissioner, mark a. Cbp is cognizant of the need to stay modern in order to meet the challenges of an evolving trade landscape. To change the cultural outlook of customs administrations towards business and. Bibliography includes bibliographical references p.
This report an outcome of an expert group meeting held on the challenge of local government financing in developing countries documents both the challenges and solutions related to the ability of local governments to mobilize revenues from local resources. Customs administration reform and modernization in. The ongoing fourth customs reform modernization strategies and action plan. Cargo manifest is a form of reporting to the customs administration the goods that are being brought into the country. In developing a strategy for customsbusiness partnership, wco members. The article shows that significant reduction of the customs fiscal function is identified in the period when latvia joined the eu customs union. Customs reform and modernization strategies and action. Its new role requires a redeployment of its resources to fulfill new functions, or functions that have become more important. Transparency and integrity in customs capacity building projects. Measurement applied to customs and tax administrations in developing countries directions in development nov,2012 by thomas cantens, robert ireland and gael raballand.
The number of customs offices increased with the increase of trade movement and the departments desire to deliver high quality service. One such lesson is that countries that pursue revenue administration measures and tax policy reform in tandem tend to see much larger gains. Department of customs doc has started planned efforts to reform and modernize customs administration for many years. To achieve that, the national customs administrations of the eu act as though they were one. We provide a comprehensive array of customs modernisation and customs reform consultancy services. The efforts of china customs in trade facilitation example 3. The administrations also had their own aims and strategies, coordinated by the minister and the directorates. Having set out this strategyand its benefitsthe paper discusses in depth what is required in terms of trade policy, valuation procedures, dealing with duty reliefs and exemptions, controlling transit movements, organizational reform, use of new technologies, private sector involvement, and designing incentive systems for an effective customs administration. Eport, e customs, e administration eport e customs e administration connecting the physically dispersed operational sectors and local administrations within china customs through its inner network composed of administrative systems for sectoral functions to improve the capacity of.
This paper, based on the considerable practical experience of the imfs fiscal affairs department, sets out a successful. Trade facilitation in developing countries econstor. Deloitte customs seminar two important developments in management of customs operations, the impact of national clearance reform and customs reorganisation on your customs matters 2017 has proved to be an eventful year for china customs. In particular, there must be careful delineation of the functions to be performed by the psi company and those that remain the responsibility of the customs administration.
Customs is vulnerable to corruption because the changes in the organizational. The role of customs administration free download as powerpoint presentation. Customs service patrol begins to utilize seized aircraft to enable aerial surveillance and enforcement. Challenges and strategies for the reform of customs administration 20oct2003 by michael keen, international monetary fund. Even though the latter would ultimately yield greater benefits in terms of higher revenue collection, smoother and faster movement of goods, less corruption, more efficient customs operations and higher trading activity relative to the investment costs. Thanks to a recent customs reform, different customs offices.
Customs reform crm mandate was an improved, more efficient and marketoriented customs regime. Examples of successful drm reforms and the role of. Challenges and strategies for the reform of customs. This article draws on my extensive experience in latvian customs and my appreciation of the importance of change management methods in reforming a customs organisation. Some of the traders indeed expressed their dissatisfaction with uras etax system powered by automated system for customs data asycuda world. Ownership of the reform process requires that the administration itself be involved in the design and implementation of the changes. In addition to the implementation of greatly streamlined customs import procedures through wtorelated legal reforms, automation, and improved risk managementrisk analysis. The department is proud to announce the fifth customs reform and modernization strategies and action plan crmsap covering from july 2017 to july 2021. Transparency and integrity in customs capacity building.
For the imf, the support of improvement in customs administration reflects the recognition that although customs administration would wither away in an ideal world, in practice trade taxes are likely to be a significant source of revenue for many of its members, especially developing countries, for the foreseeable future. Sustained success requires institutional change, which happens only gradually. The customs and excise organization comprised a headquarters office and 31 local offices, each of which handled the collection and administration of vat, excise duties, and customs. Download for offline reading, highlight, bookmark or take notes while you read changing customs. Improving organizational performance is never easy. Kras second corporate plan included strategies to address these challenges and it actuated the revenue administration reform. Challenges and strategies for the reform of customs administration by michael mr. The essence is to establish transparent and simple rules and procedures, and to foster voluntary compliance by building a system of selfassessment supported by welldesigned audit policies. There are about 42 customs centers divided into three categories clearance centers, border centers, and post centers. A document of this type is required from each carrier in all modes of transport sea, air, truck, rail, but the cargo manifest relates to maritime transport.
Download it once and read it on your kindle device, pc, phones or tablets. The paper discusses the main aspects of taxation in south and east asia. Corruption is a deepseated challenge in many tax and customs systems around the world. Thirtyfive aircraft were seized for smuggling by customs patrol in 1932 alone and leads to the establishment of an unofficial customs patrol air group, which enthusiastically patrolled the southern border for smugglers and their aircraft. To continue to effectively fulfill cbps mission, cbp is pursuing an initiative titled the 21st century customs framework 21ccf.
This important initiative is fundamental to docs reform agenda for. Challenges and strategies for the reform of customs administration challenges and strategies for the reform of customs administration this paper, based on the considerable practical experience of the imfs fiscal affairs department, sets out a successful strategy for modernizing customs administration. The role of customs administration trade international trade. This paper, based on the considerable practical experience of the imfs fiscal affairs department, sets out a successful strategy for modernizing customs administration. Having set out this strategy and its benefits the paper discusses in depth what is required in terms of trade policy, valuation procedures, dealing with duty reliefs and exemptions, controlling transit movements, organizational reform, use of new technologies, private sector involvement, and designing incentive systems for an effective. Many countries have been adopting customs modernization and reform initiatives. Customs modernization handbook customs bond commissionerate.
A columbus programme phase 2 implementation tool wcoomd. The study may be useful in facilitating donor support for customs reform programs by providing convergent guidance. Strengthening revenue mobilization in developing countries has long been a central concern of the fund, and its advice has been highly influential. This publication draws on the imfs technical assistance experience to consider the common challenges likely to be encountered by countries in modernising their customs administration, in order to help promote trade. Customs reform and modernization strategies and action plan.
Systems, processes and challenges of public revenue. The duration of the reform episodes ranged from two to seven years. The aim of the reform is to make customs control more precise and intensive while interfere less with the logistical process. Challenges and strategies for the reform of customs administration dec 2003 by michael keen and international monetary fund. Strategies for the reform of customs administration. Customs and border protection budget request for fy2021written testimony of acting. Improving tax collection, raising tax revenue and lessons. Reform of a customs administration must be accompanied by commitment of the government and strongly supported by senior management within the administration. The role of customs in trade facilitation and the efforts of. Since its initiation in last september, the intelligent control reform has been jointly carried forward by many parties for almost half a year. Our primary focus is on enhancing the efficiency and effectiveness of customs and other border administrations.
Mar 29, 2017 big data analytics and customs throughput. Best practices in customs reform lessons from morocco. Treasury office of foreign assets control ofac embargoes and trade sanctions against specific countries and regimes, as well as having any financial transaction with entities on the ofac specially designated nationals list sdn. Deloitte customs seminar two important developments in. Challenges and strategies for the reform of customs administration international monetary fund, forthcoming. In short, both the diagnosis and the response to africas challenges are known, and there is a continental strategy to make it happen. Kunio mikuriya visited castries, the capital city of saint lucia from to 14 february 2020 to discuss the challenges and opportunities of small island economies in the caribbean region. Wco framework of principles and practices on customs. Development of customs fiscal function in latvia in. The wco council vicechair for the esa region and commissioner of customs and excise, botswana unified revenue service burs, mr. This article examines the factors motivating customs reform in various countries. She listened as the taxpayers went through a litany of the challenges they face. Chief customs audit administrator, chief customs administrators, chief customs officers. The single market can only function properly when there is a common application of common rules at its external borders.
Morgan, for a senate committee on commerce, science, and transportation hearing. Particolar attention is given to the main issues which emerge from the tax systems of china, india, japan, malysia, south korea and thailand. Regardless of the product, companies need to be concerned with ensuring compliance with u. The customs union is a foundation of the european union and an essential element in the functioning of the single market. Strategies for the reform of customs administration, imf, washington, dc. This paper draws upon the experiences of the fiscal affairs department staff dealing with customs reform in developing countries and on modern customs. Faced with these pressures, the authorities embarked on a thorough reform of customs administration, including the use of riskmanagement techniques, increased emphasis on controls prearrival and postrelease rather than at the point of entry, and improved use of information technology. Trade facilitation handbook part ii technical notes on. Customs administrations around the world play a key role in trade facilitation, revenue collection, community protection and national security. Control selectivity is therefore a key issue in customs administration reform. This strategy outlines new directions for strategic development for immediate and future implementation. Challenges and strategies for the reform of customs administration published on by international monetary fund. Africa suffers from the highest average customs delays in the world, 12 days on average. The report also identifies successful governance mechanisms for efficient.
Challenges and strategies for the reform of customs administration ebook written by mr. Philiso phodiso valashia delivered the first keynote address on the various challenges organizations like customs faced nowadays as they were increasingly engaged in multiple simultaneous changes and played a key. Instead, it should be integrated into an overall strategy for the reform and modernization of a customs administration. In its program, surveillance andthe main perspective heretechnical assistance ta work, the fund has for many years. Improving resource mobilization in developing countries.
The role of the customs elite on the reform process in cameroon thomas cantens november 2010 abstract an ethnographic approach is applied to cameroon customs in order to explore the role and the capacity of the bureaucratic elites to reform their institution. The commission for africa in its 2005 report stated. The importance of change management in reforming customs. Challenges and strategies for the reform of customs administration. As such, the lack of integrity in customs can distort trade and investment opportunities, undermine public trust in government administration and ultimately jeopardise the well being of all citizens. Customs authorities in developing countries are often reluctant to forgo systematic inspections for fear of risking revenue loss. Challenges and opportunities for the internal market and consumer protection in the area of customs and trade facilitation.
Customs modernisation customs reform trade facilitation. In turn, this reduction in median days in customs generates a 7% increase in the value of imports. The transatlantic trade and investment partnership ttip. Its goal was streamlining customs processes for imports and exports. Customs administration 3can make a major contribution to effective revenue mobilization. Using internal and external sources of information to reduce customs evasion.
The reduction took place due to the countrys efforts to improve business environment and strengthen the competitiveness of enterprises, as well as to improve tax administration system. In the 1990s moroccos trade policies were strongly influenced by its agreement with the european union, with the world trade center, and the multifiber agreement, which led the customs and indirect taxes administration to examine its procedures. Many customs reform and modernization programs are designed to introduce customs procedures and techniques in accordance with the rkc, such as risk management and postclearance audit systems. Abstract successful trade policy reform, often requires customs reform. Product trade compliance issues ecustoms visual compliance. We have practical experience of implementing customs modernisation and reform programmes at the highest possible level. Customs administrations are generally advised to carry out a comprehensive reform process in respect of their operations, procedures and systems. International monetary fund this book, based on the practical experience of the imfs fiscal affairs department, sets out a strategy for successfully modernizing customs administration.
The essence is to establish transparent and simple rules and procedures, and to foster voluntary compliance by building a system of selfassessment supported by. In addition, all customs reform and modernization efforts should be focussed on establishing or strengthening the management and administrative capacity of customs. Using internal and external sources of information to. Tax systems and tax reforms in south and east asia. The challenges that worldwide customs administrations face in their political, social. The supervision and control over the handling of foreign mails arriving in the philippines, for the purpose of the collection of the lawful duty on the dutiable articles thus imported and the prevention of.
As sociologist jim march has noted, success requires that organizations balance explorationthe search for new ways of doing thingswith exploitation, the ability to harness new practices and jettison older, less effective ones march, 1991. The ongoing fourth customs reform modernization strategies. An overview of customs reforms to facilitate trade. Examples of successful drm reforms and the role of international cooperation discussion paper.
The future of fiscal frontiers and the modernization of customs administration. Anita montoute, saint lucias acting comptroller of customs, wco secretary general dr. Systems, processes and challenges of public revenue collection in zimbabwe zhou gideon. The core areas of reforms include trade facilitation, automation, capacity enhancement and infrastructure.
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