Post on 03-Jun-2018
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Sooryadev Singh PURMAH, MBA
Team Leader, Customs
(Trade Facilitation & Customs Cooperation)Joined Customs & Excise Dept in Feb 1972
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Total area: 67×46 = 2040 sq km
Population: 1.3 million (est)Mono-crop economy to a diversified one: sugar,industrial manufacturing, tourism, financialservices, freeport activities, ICT, sea food hub
87% of tariff lines at zero rateIsland state with no natural resources
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World Bank Doing Business 2012Out of 183 countries:
•
Ease of Doing Business - 23rd
• Trading Across Borders - 21st
• Paying Taxes:11th
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MRA-Customs Department Collects 34 % state
revenues
670 customs officers
1 Seaport and 1
International Airport
350,000 declarations per
year (total)
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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 development
Development of institutions to support and facilitateinternational trade
Increased global competition
Protection of society & terrorism
Public criticism
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Objectives of
Customs Trade Facilitation Programme Attain revenue targets
Implement Governmenteconomic policies
Reduce economicdistortions associatedwith smuggling andcommercial fraud
Create a ‘level playing field’ for traders
Facilitate honest traders while targeting high riskones
Promote transparency
Promote voluntarycompliance
Ensure predictability
Reduce discretion andcorruption
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Managing Change at Mauritius
Customs
• WCO Customs Reform & Modernization
Programme (CRMP) as from 1998 andProject Management Concept as from end of2002
• CRMP : Orientation Meeting with policy makers→
Diagnosis & Planning: Team of Facilitators - WCO, HMCustoms, Revenue Canada: Data Collection, Diagnosis &Report: 3 Workshops
• Project Management Concept : Team constituted &
Strategic planning approach
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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
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Major Changes Over The Years1. Paradigm shift: gatekeeper to facilitator
2. Partnership with business
3. Automation - Customs Management System (CMS/EDI).
4. Implementation of WTO Valuation Agreement, Post Clearance
Control System5. Schedule of duties/SOP manuals for officers
6. Redeployment of staff and creation of various enforcement units
7. Code of ethics for officers and customer charter for stakeholders
8. Complaints Bureau
9. Tariff Information Unit10. Autonomous unit for air-freighted goods
11. Customs Investigation and Intelligence Unit including a drug cell
12. Non-Intrusive Inspection Techniques (NII): Scanners
13. Centralized Risk Management Section
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Other Trade Facilitation Initiatives Single Window office for Cargo Inspection Single Window office for Exporters
Ecertificate of origin
CARGO FAST TRACK Program - AEO project
Cargo Community System – Electronic platform fortracking & tracing of containers
Express Courier Hub Project
Integrated Tariff and Tariff Classification Rulingsdatabases on web-site
Rules, regulations, procedures, SOP manual forstakeholders & administrative forms available on website
Intranet system for officers
Appeal Mechanism
Excise reforms
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Requisites for Capacity Building in
CustomsWCO definition: ‘ Developing or acquiring skills,
competencies, tools, processes and resources needed toimprove the capacity of the administration to carry out itsallotted functions and achieve its objectives.’
Sustained Political Will & Commitment
Leadership & Stakeholder Support
Ownership & Participation of Customs Personnel
Adequate Human and Financial Resources
Effective Human Resource Management Practices Paradigm shift: Gatekeeper Mentality to Facilitator
Partnership with Business Community
Communication Strategy
Strategic Management Approach & Change ManagementModel
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WCO & WTO Trade Facilitation
Instruments HS Convention
RKC
Arusha Declaration
Customs Reform & Modernization Programme
Columbus Programme – WCO Framework of Standards
WTO Valuation Agreement
Time Release Study
WCO Data Model
Rules of origin
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Institutional Change - 1 July 2006Mauritius Revenue Authority (MRA): revenue depts
under one umbrella as a corporate body to act as agent
of government:
Vision: World Class Revenue Service
Mission: 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
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MAURITIUS REVENUE AUTHORITY
ORGANISATION STRUCTURE
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Existing Offices Renovated to Improve Customer Service
‘RED/GREEN’ Channel @ SSRCustomer Counters @ SSR Air Cargo
Open Concept Offices @ IKS Building‘One Stop Shop’ @ Dragon House
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“Single Window” Cargo Inspectio
Office at Port
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Custom House
Fully Operational since December 2009
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AUTOMATION - CMS/EDI: Continuous
enhancement since 1998 From 22 to 5 steps, minimal physical contact
officers/brokers, real time information
Electronic submission of cargo manifest, matching with
customs declarations
Rates 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 permit
External Users: Ministries, VAT, Port Authority, Freeport,Brokers Frei ht A ents
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Port AirportNuctech X-Ray Scanners ( operational since Feb 2006)
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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
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K9 Drug Detector Dogs
DUTIES AND TAXES COLLECTED BY CUSTOMS
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Year 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08
2008/09
2nd ½09
CustomsDuty(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 onImports(billions)
3.42 4.07 5.65 6.34 7.68 8.47 9.45 11.45 8.51 6.17
Total dutiesand taxes(bilions)
11.88 12.26 14.51 16.13 18.40 18.28 18.92 22.03 22.16 11.61
C ustoms D uty
Exc ise D uty
VAT on Imports
Total duties and tax es
DUTIES AND TAXES COLLECTED BY CUSTOMS
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2008 2009 2010
red channel 18 16 17
green/yellow channel 82 84 83
0
10
20
30
40
50
60
70
80
90
%
CHANNELING OF DECLARATIONS
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Integrity Internal Affairs & Internal Audit Divisions within
MRA
2006: Customs Department awarded by ICAC theBest Anti-Corruption Framework Award in thePublic Service and the most improved public sectorinstitution.
2010: Integrity Risk Assessment conducted forwhole MRA: MRA awarded Best Anti-CorruptionFramework & ranked first in ManagementCommitment and Integrity Management
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Projects in the pipeline Mauritius Trade Portal based on the Single
Window Concept
Paperless Customs Internal Appeal Mechanism & Prescribed
Administrative Penalties
Accounts Manager.
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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, butdelivery is long and painful.’