Customs use of inspection companies Background & Way Forward.
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Transcript of Customs use of inspection companies Background & Way Forward.
Customs use of inspection companiesBackground & Way Forward
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Evolution of inspection services• 1960s : PSI developed (mainly for exchange
control)• 1980s : Used for strengthening Customs controls;
particularly in developing countries, including verification of Customs values and classification
• 1995 : WTO Agreement on PSI … sets out standards, e.g. obligation to follow principles of WTO Valuation Agreement
• 2000s : Transition to destination inspection activities; broader scope, incl. scanners, single window activities.
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Trend
1980s 1990s 2000s 20140
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10
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Countries with inspection contracts
Countries with inspection con-tracts
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Current position
•Several countries considering termination•Niamey Declaration
▫ Agreement by DGs in West & Central Africa Region
•WTO Agreement on Trade Facilitation– Article 10.5 Pre-shipment Inspection :
▫ 5.1. Members shall not require the use of pre-shipment inspections in relation to tariff classification and customs valuation.
▫ 5.2. Without prejudice to the rights of Members to use other types of pre-shipment inspection not covered by paragraph 5.1, Members are encouraged not to introduce or apply new requirements regarding their use
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Way forward for Customs administrations
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Effective control infrastructure for Customs valuation, classification and origin
•Take broader view of risk management : ▫ Develop importer profiles (assess compliance)▫ Analyse statistical trends (import/export)▫ Trader segmentation (size and compliance)
•Implement compliance-based post-clearance audit
•Advance rulings for classification, origin and valuation
•Effective/commensurate penalties
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Benefits
•Less reliance on valuation databases
•Better targeting = effective revenue collection + reduced port interventions/physical exams
•Compatibility with WTO Agreement on Trade Facilitation
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Needs•Plan, plan, plan!•Staff training/re-training
▫Not just theory skills and knowledge▫Specialist skills (e.g. accounting, IT, audit)▫Need to change way of thinking
•Communication channels with business▫Work with informal sector, encourage
formalisation of procedures▫Appropriate IT support
•Continued integrity programmes
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What can WCO provide?•Revenue Package programme provides
access to all tools and instruments•New materials in 2012 focus on practical
aspects•Phase II in development. By June 2015 :
▫New diagnostic tools for valuation, origin and PCA
▫Guidance for countries terminating contracts
▫Good practices for : Informal trade challenges Identifying/tackling revenue risks & gap Origin irregularities
• Further capacity building/technical assistance