Risk management

:
a critical Customs tool
Haiti in the spotlight:
Customs' role in an emergency
Customs valuation: 30 years of
the GATT/WTO Agreement
N
o
62
JUNE 2010
www.wcoomd.org
NEWS WCO
World Customs Organization
2 WCO News – N
o
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f l As H i nf O
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3 WCO News – N
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Content
4 Calendar
5 Editorial
6 Buzz
9 Flash info
15 Special dossier
• Getting to grips with risk management
• Initial results of the Custom risk management survey
• Risk management: what can you really manage?
• WCO puts risk management under the microscope
Latest developments
WCO risk management activities
• Risk management: key enablers
• Managing risk in practise: South Africa shares her experience
• How to modernize risk analysis and the selectivity of
Customs controls in developing countries?
• Joint risk analysis on cross-border traffc in Bosnia and
Herzegovina
• Mexico Customs reports success with risk analysis
34 In conversation
• Susanne Aigner and Heike Barczyk; new Deputy Directors
at the WCO Secretariat
36 Our Members world
41 Zoom
• Colombian Customs administration
42 Focus
• Protecting cultural heritage
• Emergency humanitarian aid and the Haiti disaster
• Using statistics to fght corruption
52 Events
• International Customs Day around the world
• Karl Heinz Matthias, Director of the Zollkriminalamt (ZKA),
retires
• WCO Information Technology Conference, Dublin (Ireland)
• The WCO technical Committee on Customs Valuation
celebrates 30 years of the GATT/WTO Agreement
• National and regional Harmonized System Seminars
Editorial note
WCONewsisdistributedfreeofchargeinFrenchand
inEnglishtoCustomsadministrations,internationalor-
ganisations,non-governmentalorganisations,thebusi-
nesscommunityandotherinterestedreaders.Itshould
bementionedthatopinionsexpressedinWCONewsare
thoseofthecontributorsanddonotnecessarilyrefect
theoffcialviewsoftheWorldCustomsOrganization.
Contributions in English or French are welcome but
shouldbesubmittednotlaterthan 10 August 2010.In
thisregard,theWCOreservestherighttopublish,notto
publish,ortoeditarticlestoensuretheirconformitywith
themagazine’seditorialpolicy.TheWCOCommunication
Serviceisavailabletoattendtoallrequestsforsubscrip-
tions,submissionofcontributionsforconsideration,and
anyotherenquiriesrelatingtoWCONews.Pleasee-mail
communication@wcoomd.org
D/2010/0448/5
Copyright©2010WorldCustomsOrganization
Allrightsreserved.Requestsandenquiriesconcerning
translation,reproductionandadaptationrightsshould
beaddressedtocopyright@wcoomd.org
Acknowledgements: TheEditorialTeamwishestoex-
pressitssinceregratitudetoallwhocontributedtothis
publication.
Pictures: Oursinceregratitudealsogoestoallwhokindly
providedphotos,logosanddrawingstoillustratethisissue.
Design: www.inextremis.be
Director of Publication
KunioMikuriya
Editor in Chief
DanielleMaïano
Editors
GrantBusby
LaureTempier
Online subscriptions
http://www.wcoomd.org/
home_press_wco_news.htm
Advertising

BernardBessis
Electronic addresses
Editorial & Subscriptions
wconews@wcoomd.org
Advertising
wconews@bb-communication.com
Publisher
WorldCustomsOrganization
RueduMarché,30
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Tel.:+32(0)22099442
Fax:+32(0)22099262
communication@wcoomd.org
www.wcoomd.org
WCO NeWs N° 62June2010
4 WCO News – N
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62 – June 2010
CAl e nDAR
Calendar of Events
It should be noted that these meetings are mentioned for information purposes and are not all open to the public. Training
workshops are aimed at the private sector. Unless otherwise indicated, all meetings are held in Brussels. Please note that
these dates are indicative only and may be subject to change. This document is regularly updated on the WCO Members’
web site, under the “Information for delegates” section, and on the WCO public web site, www.wcoomd.org , under the
“Events” section.
June
15 - 16 TrainingworkshoponWCODataModelversion3.0
15 - 16 TrainingworkshoponCustomsValuationandTransferPricing
21 - 23 PolicyCommission(63
rd
Session)
24 - 26 Council(115
th
/116
th
Sessions)
26 InternationalDayagainstDrugAbuseandIllicitTraffcking
26 - 27 G-20Summit,Toronto(Canada)
28 - 29 WCORiskManagementForum
September
1 - 2 InternationalCustomsConference:EU-BelgiumPavilionatEXPO2010,Shanghai(China)
7 - 8 AdHocGrouponGloballyNetworkedCustoms
9 - 10 HarmonizedSystemCommitteeWorkingParty
13 - 24 HarmonizedSystemCommittee(46
th
Session)
20 - 24 DataModelProjectTeam
27 - 29 CapacityBuildingCommittee(1
st
Session)
30 - 01/10 IntegritySub-Committee(9
th
Session)
October
1 RegionalOffcesforCapacityBuilding/RegionalTrainingCentres
4 - 8 WCOUNCITRALJointLegalTaskForce(3
rd
Meeting)
11 - 12 PrivateSectorConsultativeGroup(15
th
Meeting)
12 SAFEMembersOnlyMeeting
13 Customs-Businessevent
14 - 15 SAFEWorkingGroup(7
th
Meeting)
18 - 22 PermanentTechnicalCommittee(189
th
/190
th
Sessions)
20 1
st
WorldStatisticsDay
25 - 29 TechnicalCommitteeonCustomsValuation(31
st
Session)
November
2 - 4 2
nd
TechnologyandInnovationConference(Egypt)
3 - 4 WCOCounterfeitingandPiracy(CAP)Group(3
rd
Meeting)
9 - 10 AdHocGrouponGloballyNetworkedCustoms
10 - 13 14
th
InternationalAnti-CorruptionConference(IACC),Bangkok(Thailand)
15 - 24 HarmonizedSystemReviewSub-Committee(41
st
Session)
23 - 25 5
th
WCOPicardConference,AbuDhabi(UAE)
29 - 30 AdministrativeCommitteefortheCustomsConventiononContainers,1972(12
th
Meeting)
December
1 - 3 RevisedKyotoConventionManagementCommittee(9
th
Meeting)
6 - 8 PolicyCommission(64
th
Session)
8 - 10 WorkingGrouponCommercialFraud(6
th
Meeting)

5 WCO News – N
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e Di TORi Al
Dear colleagues and partners,
This edition's special dossier is dedicated to risk management, in preparation for
this year’s WCO Council sessions with a panel discussion, followed by an open
Forum, both centered on this theme. As Council Chair Martyn Dunne details in
his introduction to the special dossier, this concept has been one of the guiding
principles of modern Customs administrations, and is embodied in many WCO
instruments. Together with other critical building blocks, risk management in-
dicates the direction of Customs in the 21
st
century.
Constantly faced with new challenges, Customs should remain responsive in man-
aging emerging risks. One example is natural and other disasters where Customs
is expected to facilitate the expeditious clearance of relief consignments. We still
have fresh memories of the recent earthquakes in Haiti and other countries that
caused such numerous scenes of human tragedy. An associated risk is that of the
illegal trade in cultural heritage, especially illegal outfows from countries that
have suffered natural and other disasters. This issue also touches on the WCO's
efforts in working closely with the Red Cross, UNESCO and other international
organizations to manage these risks.
Another emerging and pressing risk is that of fake medicines and other coun-
terfeit goods that pose direct threats to the health and safety of people. The
WCO has been active in raising awareness about this risk and the contribution
Customs can make in ensuring that the message about this cruel trade is heard
by the public, business and governments. The new partnership with the Chirac
Foundation to fght against fake medicines will provide us with an important
platform to sensitize the world's political leaders.
Customs needs to cooperate with its partners to effectively manage these risks.
The Customs-business partnership, another important building block of the
WCO's Customs in the 21
st
Century strategic policy and the theme of this year’s
International Customs Day, is aimed at improving compliance by business which
will reduce risk for Customs administrations and facilitate trade. The many activi-
ties by our Members on International Customs Day to highlight this important
partnership are also captured in this edition.
I hope that you enjoy reading this latest issue and look forward to seeing you at
the Council sessions in June!
Kunio Mikuriya
SECRETARyGENERAL
Buzz
• Last minute
The5
th
WCOPicardConference,originally
scheduledtotakeplacefrom28-30Sep-
tember2010,hasbeenrescheduledand
willnowtakeplacefrom23-25November
2010.ItwillbeheldinAbuDhabi(UAE)
asplanned.
• Info
The WTO Public Forum 2010 with the
theme “TheForcesShapingWorldTrade”
willbeheldatWTOHeadquartersinGe-
neva from 15-17 September 2010. This
Forum provide an opportunity to take
stockofthelatestdevelopmentsatthe
global level that are having an impact
onthemultilateraltradingsystem,and
identifystepsthatwillcontributetowards
bolsteringinternationaltradefowsand
strengtheningtheWTO.
www.wto.org/english/forums_e/ngo_e/
forum10_background_e.htm
The World Bank Group isprovidingfree
accesstomorethan2000dataindicators
onfnance,trade,health,andhumanand
economicdevelopment,mostofwhich
werepreviouslyavailableonlytopaying
subscribers.
http://data.worldbank.org
• Get reading
TheEuropeanCommissionhaspublished
aComplianceRiskManagementGuidefor
taxadministrations.
http://ec.europa.eu/taxation_customs
The World Bank has published a new
report entitled “Africa Development
Indicators 2010”. This report deals, in
particular, with the issue of “quiet cor-
ruption”-minor,everydaymalpractices
thatneverthelesshavehugerepercussions
inAfrica,particularlyforthepoor.There-
portincludesmorethan450indicatorsof
macroeconomic,sectoralandsocialdata
for53Africancountries.
www.worldbank.org
• Look out for
The WCO’s annual Reports on Drugs,
Tobacco and Cigarettes, and Intellectual
Property Rights willbeissuedinlateJune
2010.
www.wcoomd.org
• On the front page
International Day against Drug Abuse
and Illicit Traffcking willbemarkedon
26June2010.Promotionalmaterial(bro-
chure,logopackage,factsheet)canbe
downloadedfromtheUNODCwebsite.
www.unodc.org/unodc/en/about-
unodc/26-June.html
EU-China International Customs Confer-
ence withthetheme“ModernCustoms:
Buildingbridgestofacilitatelegitimate
tradewhileprotectingcitizens”willtake
placeintheEU-BelgiumPavilionatExpo
2010 in Shanghai from 1-2 September
2010.Theeventisbeingorganizedbythe
European Commission in collaboration
withChineseCustoms.
http://ec.europa.eu/taxation_customs
Achim Steiner has been re-elected Ex-
ecutive Director of the United Nations
Environment Programme (UNEP) for a
fve-yeartermbeginning15June2010.
www.unep.org
John Scanlon has been appointed Secre-
tary-General of CITES. Hewaspreviously
PrincipalAdvisorattheUnitedNations
Environment Programme (UNEP) and
takesoverfromWillemWijnstekerswho
retiredon1May2010afterbeingCITES
Secretary-Generalsince1999.
www.cites.org
• Current events
TheWCOCapacityBuildingDirectorate
meetingsscheduledfortheweekof19to
23April2010werepostponedduetothe
theashcloudcrisisthataffectedairtravel.
The1
st
SessionoftheCapacityBuilding
Committee,the9
th
SessionoftheInteg-
ritySub-CommitteeandtheMeetingof
theRegionalOffcesforCapacityBuild-
ing and Regional Training Centres will
now take place from 27 September to
1October2010.
The posts of Director of Compliance and
Facilitation and Director of Capacity
BuildingintheWCOSecretariatwillfall
vacanton31December2010.TheDirec-
torsGeneraloftheWCO’s176Member
Customsadministrationswillelecttwo
new Directors during their June 2010
Councilsessions.Theywilltakeupoffce
on1January2011.
www.wcoomd.org
Following the death of Antoine Manga,
WCODirectorofTariffandTradeAffairs,
the Deputy Secretary General Sergio
Mujica will take charge of the Directo-
rateuntilanewDirectorassumesoffce.
Electionsforthepostwilltakeplaceatthe
June2011Councilsessions.
www.wcoomd.org
• Accessions
The Republic of Mali, the Republic of
Malta, and the United Arab Emirates de-
positedtheirinstrumentofaccessionto
theInternationalConventionontheSim-
plifcationandHarmonizationofCustoms
Procedures(RevisedKyotoConvention)
withtheWCOrespectivelyon4,11and
31May2010.TheConventionwhichen-
teredintoforceon3February2006now
has69ContractingParties.
www.wcoomd.org
• Appointments
Recently appointed Directors General:
Mrs.MarleneArdayaVásquez(Bolivia);
Mr. Sang-Goo Byun (Korea, Rep. of);
Vice-AdmiralPedroMiguelPérezBetancourt
(Cuba); Mr. Táli s Kravali s (Latvia);
Mrs. Angélique Berg (Netherlands);
Mrs. Gloria Luque Ramí rez (Peru);
Mr . I h o r Ka l e t n i k ( Uk r a i n e) ;
Mr.EnriqueCanonPedragosa(Uruguay).
Contrarytoourearlierannouncement,
Mr. Erling Andersen is still Denmark’s
DirectorGeneralofCustoms.
• For your diary!
11June-21July2010:FootballWorldCup,
SouthAfrica
• WCO trophies
Forthe5
th
yearinsuccession,theWCO
will award the trophy for combating
counterfeiting and piracyduringtheJune
2010Councilsessions.Thisyearthetro-
phywillgotoaCustomsadministration
whichhasdistinguisheditselfinthefght
againsttheillicittraffcinfakemedicines.
AllWCOMembershavebeeninvitedto
participateinthe second edition of the
WCO Photo Competition. The trophy
will be awarded during the June 2010
Councilsessions.PhotoswillshowCus-
tomsservicesinactionintheirday-to-day
work.
f l as h i Nf O
6
WCO News – N
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8 WCO News – N
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62 – June 2010
f l As H i nf O
HCV, viZual and ARD are trademarks of Smiths Detection Group Ltd.
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• Inspection of all kind of containers, trucks
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9 WCO News – N
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62 – June 2010
f l As H i nf O
Changes ahead for the WCO
O
n Saturday 26 June 2010, the
DirectorsGeneralofCustomswho
will have gathered in Brussels for the
115
th
/116
th
Council Sessions will elect
newDirectorstoreplaceMichaelSchmitz,
DirectorofComplianceandFacilitation,
andLarsKarlsson,DirectorofCapacity
Building.
Director of Compliance and Facilitation
Ms.SandraLeeBell
ExecutiveDirector,Regulations
andRulings,OffceofInterna-
tionalTrade,CustomsandBor-
derProtection(UnitedStates)
Mr.UriBruck
Minister-Counsellor(Customs
and Taxation), Embassy of
IsraelinBrussels(Israel)
Mr.HippolyteDjegou
DirectorGeneral,Directorate
GeneralofCustomsandIndi-
rectTaxes(Benin)
Mr.MahmoudElMadna
Researcher,InternationalBest
PracticesCommittee,Strate-
gicPlanningSector,Customs
Authority(Egypt)
Mr.MmadiMoindjie
NationalAdministratorofASy-
CUDA++,DirectorateGeneral
of Customs IT system (Co-
moros)
Mr.GaozhangZhu
DirectorGeneral,International
Cooperation,GeneralAdminis-
trationofCustoms(China)
Director of Capacity Building
Mr.EmadAlTamimi
Head of Computer Section,
CustomsDepartment(Jordan)
Mr.HippolyteDjegou
Director General, Directorate
General of Customs and Indi-
rectTaxes(Benin)
Ms. Christina Felicitas
Msemburi
Commissioner, Human Re-
sources and Administration,
RevenueAuthority(Zimbabwe)
Mr.ErichKieck
Group Executi ve, Customs
Strategy and Policy, Revenue
Service(SouthAfrica)
-1/11-
APPLICATION FOR THE POST OF
CAPACITY BUILDING DIRECTOR
WITHIN THE WORLD CUSTOMS ORGANIZATION
1
1. PARTICULARS
Family name (in capitals)
dr. NAGY
Maiden name (in capitals)
-
First name(s) (in capitals)
János
Sex
x M
□ F
Date of birth
17 April 1956
Place of birth
Budapest

1
Application to be typed, and to be made available in electronic format on request.
Mr.JanosNagy
NationalCommander,Customs
andFinanceGuard(Hungary)
ItwillbetheresponsibilityoftheCouncil
tonominatetwoDirectorstotakeoffce
on1January2011inaccordancewiththe
rulesinforce.
The Secretariat is pleased to announce
thatapplicationsfromthefollowingcan-
didateshavebeenreceivedforthepostsof
DirectorofComplianceandFacilitation
andDirectorofCapacityBuilding.
A press release on the results of the
elections will be issued by the WCO
Secretariat.
More information
www.wcoomd.org
10 WCO News – N
o
62 – June 2010
f l As H i nf O
Farewell Antoine
I
tiswithdeepsadnessthat
theinternationalCustoms
communitylearnedofthe
death of Antoine Marie
MangaMassina,Directorof
Tariff and Trade Affairs in
theWCOSecretariat,who
passed away on 24 April
2010.
Si nce 1 J anuar y 2008
Mr. Manga had been Director of Tariff and Trade Af-
fairs,responsibleformattersrelatingtotheHarmonized
System, origin and valuation - core areas of Customs
activity.From1992to1999hewasDeputyDirectorof
ValuationattheSecretariat.
HisexperienceandtremendousexpertiseinCustomsmat-
terswereacknowledgedbyhispeers,andenabledhimto
occupyseveralhigh-levelpostsinthecourseofhispro-
fessionalcareer,bothinCameroonandabroad,culminat-
inginhisappointmentasCameroon’sDirectorGeneral
ofCustomsin2005.Afterthatitwasonceagaintheturn
oftheWCO,itsMembersandtheinternationalCustoms
communitytobeneftfromhisspiritofopenness,his
abilitytolisten,hispracticalCustomsknowledgeand
hishumanqualities.
OnbehalfoftheinternationalCustomscommunityand
thestaffoftheWCOSecretariat,WCOSecretaryGeneral
Kunio Mikuriya expressed his sincere condolences to
Antoine’sfamily.
Messagesofcondolencemaybesentto
CondolencesManga@wcoomd.org.
More information
www.wcoomd.org
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AZ_WCO_210x144.5_engl_RZ.indd 1 11.05.2010 9:58:01 Uhr
11 WCO News – N
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62 – June 2010
f l As H i nf O
The Cotonou Declaration, a policy
strategy for achieving rapid results
J
ust like any other commodity, medi-
cinesarenowpartoftheglobalization
process.Indevelopingcountries,thefree
movement of medicines has increased
publicaccesstohealthcare,withmore
people instinctively seeking medical
treatment, and has promoted the es-
tablishmentofmedicinepurchasingco-
operatives.Thediversifcationoffunding
fordevelopmentassistanceinthehealth-
caredomainhasbroughtdownthecost
ofmedicinesforpatientsintheworld’s
poorestcountries.
ThesepositiveresultsmeettheMillen-
niumDevelopmentGoals,setalmost10
yearsagoattheUnitedNations.However,
inparallelwiththesepositiveresults,the
tradeinillicitmedicineshasbeenincreas-
ingexponentially.Developingcountries
arecurrentlyunderthreatfromamassive
infuxoffakeanddefectivemedicinesar-
rivingthroughbothcriminalandoffcial
distributionchannels.Theseaccountfor
30%ofmedicinesbroughtintodevelop-
ingcountries.
Comprehensive political action is
required
The causes of this dangerous phenom-
enon are manifold. In addition to pub-
lichealthandsocialsecuritystructural
policieswhicharecostlyandseldomim-
plemented, there are insufficient qual-
itycontrolsonmedicinesplacedonthe
market,problemsinensuringaneffective
Customs reponse, shortcomings in the
enforcement system, and indisputable
fawsinStates’legislativeandregulatory
frameworks.
Thesefactorshavetobeplacedwithina
regional or even international context.
TraffckersexploitStates’weaknessesas
wellastheirlackofcooperationanddif-
fcultiesinharmonizingtheirregulations.
Thisarrayofproblemsrequirespolitical
action that inspires stakeholders and
unitesthestructuresandadministrations
workingineachoftheaffectedareas.
ItisforthatreasonthatJacquesChirac
andanumberofHeadsofStateissuedthe
CotonouDeclarationagainstfakemedi-
cinesinOctober2009.TheDeclaration’s
signatoriespledgetodeveloptherequisite
legislativeandregulatoryprovisionsand
genuinelyhopeforaninternationallegal
frameworkgivingeachpartythemeans
toactinunison.
A solution focusing on three areas
This scourge can only be eradicated
throughacombinationofenforcement
activities and better access to quality
medicines,stringentqualitycontrolson
products,andenhancedtraceabilityand
securityofpharmaceuticaldistribution
channels. The success of this enforce-
mentapproachrestsonthejointimple-
mentationofthesestrategies,aswellas
onsimultaneousoperationsatthesub-
regionallevel.
TheactivitiesundertakenbytheChirac
FoundationsincetheCotonouDeclara-
tionhavefocusedonthreecomplemen-
taryareas:
• Following up on the Cotonou Dec-
laration commitmentsmadebyinter-
nationalpolicymakers
• Supporting and advising the com-
mitteesbeingsetuptocounter“fake
medicines”withinthesignatoryStates
byensuringthatallthestakeholders
areabletovoicetheiropinionstherein
• Promoting a binding legal frame-
work with international scope to
wage war against the production of
and trade in fake medicines
TheskillsofferedbytheWCOarecrucial
for obtaining rapid results in the latter
twoareas.
At State level, joint efforts have to be
madetostrengthenCustoms’roleaspart
ofthemechanismtocombatfakemedi-
cines.Theirrepresentativesmustenter
intofullpartnershipwithhealthprofes-
sionals, consumers, police and judicial
authorities.
On another level, the WCO’s capacity
tonetworkwithitsMembersanditsex-
tremelythoroughknowledgeofCustoms
codesineffectcouldservetheinterestsof
cooperationbetweenStatesaswellasthe
establishmentofamodellegalframework
applicable by all countries. This would
permitthemutualdevelopmentoftools
tocombatfakemedicines.
With the WCO’s assistance, the Chirac
Foundationhasalreadybeenabletosend
amessagetoCustomsoffcersinBenin
underscoringtheimportanceoftheirrole
inthishighlyambitiousproject.Wehope
thatwithnationalCustomsadministra-
tionsonboard,wecancontinuetomakea
jointcallforrapidresultsinthefuture.As
thingscurrentlystand,onceafakemedi-
cinehasclearedCustomsitisimpossible
totraceitwithinaterritory.
Catherine Joubert has been the Managing Di-
rector of the Chirac Foundation since 2010 and
is responsible for coordinating and developing
the Foundation’s programmes concerning ac-
cess to quality medication and water, combat-
ing deforestation, and preserving cultural di-
versity. During her career she has managed the
French Ministry of Foreign Affairs “Bienvenue en
France Association” which promotes exchange
and dialogue between cultures, and worked on
the “Connaissance et Vie d’Aujourd’hui” lecture
series focusing on national, European and inter-
national challenges.
More information
www.fondationchirac.eu
by Catherine Joubert
f l As H i nf O
12
B
earing in mind the severe health
risk factors derived from smoking,
theWorldHealthOrganization(WHO)
launched the idea for an international
instrument to control tobacco. This
idearesultedinthedevelopmentofthe
FrameworkConventiononTobaccoCon-
trol(FCTC)whichcameintoforceinFeb-
ruary2005.
TheConventionwhichcurrentlyhas168
Contracting Parties is a comprehensive
legal instrument for tobacco Control.
Theaspectrelatedtotheillicittradein
tobaccoproductsisincludedinArticle15
oftheConvention.InthisArticle,thePar-
tiestotheConventionrecognizethatthe
eliminationofallformsofillicittradein
tobaccoproducts,includingsmuggling,il-
licitmanufacturingandcounterfeiting,is
anessentialcomponentofglobaltobacco
control.Article15statesthattheParties
shalladoptandimplementeffectiveleg-
islative,executive,administrativeorother
appropriatemeasureswithaviewtoelimi-
natingillicittradeintobaccoproducts.
AtitsfrstsessioninFebruary2006,the
Conference of the Parties (COP) noted
thatArticle15didnotgofarenoughin
facilitatinginternationalcooperationto
enable Parties to effectively eliminate
theillicittrade.Theydecidedtherefore
toestablishanintergovernmentalnego-
tiatingbody(INB)toprepareatemplate
foraProtocolonIllicitTradeinTobacco
Productswhichwillbuilduponandcom-
plementtheprovisionsofArticle15ofthe
FCTC.Sinceitsestablishment,theINBhas
convenedinGenevafourtimeseachyear
since2007.
TheINBconsistsofPartiestotheFCTC
andobserverswhichareStatesnon-Par-
Global system on illicit traffcking in
tobacco products makes progress
ties,internationalintergovernmentalor-
ganizations(notablytheWCO)andnon-
governmentalorganizations(forexample
theFrameworkConventionAlliance).
Todate,keyelementsofthedraftproto-
colinclude:
• measurestocontrolthetobaccoprod-
uct supply chain (including tracking
and tracing of tobacco products, li-
censing,anti-moneylaunderingmeas-
ures,andrestrictionsoninternetsales
oftobaccoproducts)
• measuresdealingwithcriminalization
andenforcement(includingtheestab-
lishmentofoffences,sanctions,penal-
ties,destruction,specialenforcement
techniques)
• international cooperative measures
(including information sharing, co-
operationintechnicalmattersandin
training,andmutuallegalandadmin-
istrativeassistance)
It is extremely challenging to get con-
sensusonbindingmeasurestobeimple-
mented at an international level in the
fghtagainsttheillicittradeintobacco
products.ThefourthsessionoftheINB
endedinfactwithoutafnalagreement.
AlthoughthePartiesdidreachagreement
onsomesignifcantprovisions,otherpro-
visionswerenotfnalized.
Amongthoseonwhichanagreementwas
reachedwastheestablishmentofaglobal
trackingatracingregimeforalltobacco
productsassetoutinArticle7;consid-
eredthecoreelementoftheProtocol.The
trackingandtracingregimecomprisesna-
tionalandregionaltrackingandtracing
systemsandaglobalinformationsharing
focalpointlocatedattheWHOFCTCSec-
retariat,accessibletoallParties.
Thesystemrequiresunique,secureand
non-removableidentifcationmarkings,
suchascodesorstamps,tobeaffxedto
orformpartofallunitpackets,packages
andanyoutsidepackagingofcigarettes
and other tobacco products. By using
theseuniqueidentifcationmarkings,one
canaccesstheportalandreceivespecifc
informationsuchasthedateandloca-
tion of manufacture and the intended
shipment route, date and destination.
TheaimistoassistPartiesindetermin-
ingtheoriginoftobaccoproducts,the
pointofdiversionwhereapplicable,and
tomonitorandcontrolthemovementof
tobaccoproductsandtheirlegalstatus.
The implementation of this and other
important provisions contained in the
ProtocolwillimpactontheworkofCus-
tomssignifcantly.
ThedraftProtocol,thetextofwhichwas
agreed by the INB at its fourth session
inMarch2010,willbeconsideredbythe
COP at its fourth session to be held in
UruguayinNovember2010.
BearinginmindthattheFrameworkCon-
vention is one of the most quickly and
widelyratifedinternationalconventions,
theWCOSecretariatstronglyencourages
its Members to examine the Protocol’s
textandurgesCustomsadministrations
toactivelyparticipatein,orprovideinputs
to,theworkofthenextCOPasfurther
fnal negotiations may in fact lead to a
bindingagreementwithstrongimplica-
tionsforCustomsactivitiesincountering
theillicittradeintobaccoproducts.
TheWCO,theFCTCSecretariatandthe
WHO are continuing to seek synergies
and complementarities in the relevant
areasoftheProtocol.
More information
www.who.int/gb/fctc
www.fctc.org
WCO News – N
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62 – June 2010
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©AustralianCustoms
WCO News – N
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f l As H i nf O
13
Customs info in
a few clicks!
…the EC launches
the frst phase
of the European
Customs
Information Portal
T
he European Customs Information
Portal(ECIP)aimstohelpbusinesses
through the Customs procedures that
have to be followed when importing
goodsintoandexportinggoodsfromthe
EuropeanUnion(EU)orwhentheyare
merelyintransitthroughtheEU.
ThecurrentversionoftheECIPconsti-
tutesasinglepointofaccesstorelevant
andpracticalinformationontheapplica-
tionoftheSafetyandSecurityAmend-
menttotheCustomsCodeandrelated
procedures.ItusesspecialanimatedCus-
tomsscenariostoexplaineachstepofthe
import,exportandtransitproceduresin
aneasywaytoeconomicoperators.Fur-
thermoreitpoolsinformationfromboth
EUMemberStateCustomsPortalsand
EuropeanCommission(EC)sources.
Thewebportalwasjointlydevelopedby
theEC,itsTradeContactGroupandEU
MemberStates.Itfocusesontheeffects
oftheentryintoforceoftheSafetyand
Security Amendment to the Customs
Codeon1July2009.Thewebportalis
publiclyavailableaspartoftheCommis-
sion’sEUROPAwebsite.
Atpresent,theECIPcontainsthreemain
categoriesofinformation.First,itgath-
Publications get with it!
D
uringtheJune2009Coun-
cilsessionstheSecretariat
undertooktomodernizeitspub-
lications.Existingtoolshavebeen
enhancedandnewdevelopments
envisaged.
Modernization of publications
in 2009/2010, we pulled it
off…
ThenewdigitalversionoftheHS,test-
edinJune2009,isnowavailableon
CD-Romandonline.Itcontainsmany
newfunctionssuchasthepossibilityto
keyinnotesandcommentsonitemsand
recoversthem,toplaceapersonalpost-it
onachapter,section,heading,classifca-
tionopinionorexplanatorynote,alin-
guisticsearchengine,etc.
WCO Publications available in differ-
entelectronicformatshavebecomean
integral part of Customs information
portals and professional applications.
Theycertainlymeetusers’expectations
asisdemonstratedbyincreasedsalesof
thesemedia.
SincetheissueofHSAmendingSupple-
mentNo.7,theuseofanewprofessional
editorialtoolhasmeantthatpublications
areavailableatthesametimeviadiffer-
entmedia:inpaper;onCD-Romoron-
line.Translationsofpublicationsareeasily
handledwhilstensuringalignmentwith
theoriginalversions.
Improved service to Members in
2010/2011, on the way…
Aspromised,theSecretariatiscontinu-
ing in its efforts to make publications
available in new languages. In the first
halfof2010Italian,Russian,andSpan-
ishversionsoftheHSDataBase(HSDB)
wereplacedonline.Newtranslationsin
otherlanguagescouldbeaddedthisyear
too.TheSecretariatisinfactlookingfor
volunteersfortrialswithalanguageusing
ideogramsandwithArabic.
2010/2011willbedevotedtoworkonthe
publicationofthe2012versionoftheHS
whichwillbelaunchedinSeptember2011.
TheHSDB,AlphabeticalIndexandanew
versionoftheCompendiumofClassifca-
tionOpinionswillbeavailableforthefrst
timeinallmediaformatsconcurrently.
Let us not forget that the Alphabetical
Indexforthe2007versionoftheHSonly
came out two years after the HS itself
andtheCD-Romwasmadeavailable18
monthslater.We’vecomealongway!
DifferentDirectorateswithintheSecre-
tariathavealsobeenmullingoverpos-
siblewaystomodernizeallotherWCO
publicationsanddevelopnewtools.The
revisedKyotoConventionforexampleis
already available in an internet format
(HTML)andwillbeequippedwithasearch
enginebytheendoftheyear.
Afteradapteditspublicationstocomply
withneweditorialstandards,theSecre-
tariatnowwishestoprovideitsMembers
andthegeneralpublicwithaninnovative,
cutting-edgeservice.From2010,WCO
publicationswillbetestedonaNomad
Tablet PC. Hope to see you to try out
this new medium at the 2011 Council
Sessions!
More information
www.wcoomd.org
>>
©

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14 WCO News – N
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62 – June 2010
f l As H i nf O
Saf et y. . . . t akes j ust
a f ew seconds
Your par t ner i n t he f i ght
agai nst t er r or i sm
and dr ugs
Phone +3 1 - ( 0) 5 8- 29 88 888, Fax: +3 1 - ( 0) 5 8- 29 88 768, i nf o@odsecur i t y. com, www. odsecur i t y. com
secur i t y body scan
ersinformationfromtheCustomssitesof
theCommissionandEUMemberStates.
This information includes databases,
procedures and assistance services as
wellasrelevantpolicyinformationcon-
tainedinvariousCommissionwebsites.
Italsofeaturesanimated“Customssce-
narios”, which take users step-by-step
through different export, import and
transitprocedures.Thesescenariosex-
plaineachstageoftheprocedures,list-
ingresponsibleauthoritiesandrelevant
documentsthathavetobefledateach
stage.Eachscenarioisaccompaniedby
adetailedglossarythatlinkstorelevant
documents, databases and legislation.
Lastbutnotleast,theportalcoversthe
legalframework.
ThefrstphaseoftheECIPwebsiteisa
forerunnertothecomprehensiveCustoms
information portal foreseen at a later
stage.Itisaprojecttotestandstudythe
basicfunctionalitiesofaportalapproach
forCustomsthatcombinesinformation
fromtwosources,namely,theECandEU
MemberStates.TheCommissionplansto
furtherdeveloptheportalonthebasisof
experiencegainedandfeedbackreceived.
Itscoverageandindepthinformationon
Customsproceduresarescheduledtobe
extendedovertime.
More information
http://ec.europa.eu/ecip/
It uses special animated
Customs scenarios to explain
each step of the import, export
and transit procedures in an easy
way to economic operators.
s PeCi Al DOss i e R
15 WCO News – N
o
62 – June 2010
R
iskmanagementisthesystematicapplicationofmanage-
mentpolicies,proceduresandpracticesinordertoiden-
tify,analyse,assess,handle,monitorandanticipaterisk.Risk
management,anintegralpartoftheRevisedKyotoConven-
tion(RKC)andotherWCOinstruments,offersclearandvisible
beneftstotheinternationalCustomscommunity,whichmust
constantlyimproveitseffectivenessanditsperformance,and
beevermoretransparent,responsibleandprofessional.
Butwhatliesbehindthisconcept?Howisitrefectedinthe
feld?ThisisthesubjectofourSpecialDossierwhich,through
theexperiencesofvariouscountriesandthemanydiscussions
heldonthissubject,looksathowriskmanagementcanbede-
velopedinpractice.
Special Dossier
Risk Management
s PeCi Al DOss i e R
Getting to grips with
risk management
by Martyn Dunne, Chairperson of the Council
WCO News – N
o
62 – June 2010 16
andhencelowertransactioncosts;and
improvedcooperationbetweentraders
andCustoms.
Improvedmanagementprocessesleadto
improvedreputation,thecapacitytowork
moreeffectivelywiththesameorfewer
resources,amore‘intelligent’approach
andprofessionalismofstaff,andbetter
resultsoverall,leadingtoCustomsachiev-
ingorganisationalandnationalobjectives.
A different way of doing things
Tomanagerisk,aCustomsadministration
mustmoveawayfromtraditionalmeth-
odsandadoptanewcultureandnewways
ofsolvingproblems,includinganincrease
inaccountabilityfordecisionmaking.Risk
management methodology should be
fexible,adaptable,andtakeintoaccount
changes in the operating environment,
includinginprocessesandlegislation.It
shouldbeabletobeappliedtoanysitu-
ationwhereanundesiredorunexpected
outcomecouldhaveasignifcantimpact
orwhereopportunitiesareidentifed.
RiskmanagementinCustoms,including
intelligenceandoperations,mustreston
modernlegislation.Legislationshoulden-
ableinformationcollectionandsharing,
including internationally where appro-
priate.Itshouldprovidealegalbasisfor
operationsalso.Managementofcustoms
riskalsobeneftsfromaninternational
component. Working across borders
withotherintelligenceandenforcement
agenciesenhancesriskmanagementby
improvinginformationcollectionanden-
forcementoptions.
A key programme for the WCO
TheWCOhasundertakenalotofgood
workinthisareaandriskmanagement
isanintegralpartof:therevisedKyoto
A
s Customs administrations, we are
uniquelypositionedtouseourknowl-
edgeandexpertiseinmanagingthebor-
dertoimplementariskmanagementap-
proach.IngeneraltermsIamsurethatthe
conceptandbeneftsofriskmanagement
arewellunderstood.HoweverIthinkwe
candomoretoensurethereispractical
implementationacrossthefullrangeof
Customsactivity.
What do we mean by risk
management?
As pointed out during the WCO Policy
CommissioninDecemberlastyear,risk
management is not just about having
good processes; it is a way of thinking
that moves an administration towards
proactive,ratherthanreactive,manage-
mentoftheborder.Ontheoperationalor
‘external’front,riskmanagementisanef-
fectiveandeffcientwaytodealwithlarge
volumesofpeople,goodsandcraftwith
limitedresourcesandconstantlychang-
ingrisk,withoutimpingingonlegitimate
tradefows.
Risk targeting provides us with sharper
operational focus. Intelligence analysis
identifies where the greatest risk lies.
Theuseofspecialisttargetingresources
likeTargetingCentresenablesustoef-
fectivelydeployourresourcesandwork
inanintegratedwaywithotheragencies.
Corporate,orinternal,riskmanagementis
alsoveryimportant.Itincludesconcepts
suchasintegrity,leadership,legalissues,
andstakeholderrelations.
What are the benefts?
The benefits of a comprehensive risk
management programme include: bet-
terhumanresourceallocation;increased
revenue;improvedcompliancewithlaws
and regulations; reduced release times
Convention; the SAFE Framework of
Standards; the Columbus Programme;
and the Customs in the 21
st
Century
strategic policy. The WCO Secretariat
is also developing a Risk Management
Compendium.
KunioMikuriya,theSecretaryGeneralof
theWCO,iswellawareoftheimportance
ofriskmanagementand,inparticular,the
need for practical implementation. We
havemaderiskmanagementapriorityfor
2010andtheWCOishostingatwo-day
RiskManagementForumaftertheCoun-
cilSessionsinJune.Atthismeetingwe
willdiscusstheimportanceofriskman-
agementforeachofouradministrations,
identifywaysoftranslatingtheconceptof
riskmanagementintoaction,andensure
thatWCOworkprogrammes,including
thevitalcomponentofcapacitybuilding,
arealigned.
TheWCOcanprovidethetools,butit
isultimatelytheresponsibilityofindi-
vidualCustomsadministrationstomake
surethatthesetoolsareimplemented
tohelpusachieveourobjectives.Itake
thisopportunitytoencourageallDirec-
torsGeneralofCustomstoattendthe
JuneForum.
WCO News – N
o
62 – June 2010
s PeCi al DOss i e R
17
T
oday, Customs risk management (CriM) has
becomeadisciplineforWCOmemberadmin-
istrationsinthecoreoftheirdaytodaybusiness.
Customsadministrationsarelearningtoexploit
CRiMatbothstrategicandoperationallevels,and
haveprovenit’seffectivenessatidentifyingand
interdicting higher priority fiscal and non fiscal
threats.WCOMembersareusingtheprinciples
ofCRiMandseeingthebenefts,including
therecoupmentofevadedrevenueand
interdictionsofsecurityandterrorist
basedthreats,narcotics,prohib-
ited goods, and food and ag-
riculturalthreats,asexam-
ples.Anonline“Google”
search of “Customs
risk management”
brings interesting
resultsandmanyrefer-
ences,includingdozensof
relevantflesandnewsitems
discussing a variety of lessons
learned.Atthesametime,thereis
agapintheacademicCRiMresearch.
Surveydataisnotreadilyavailableand
feweffortstodatehaveformallycollectedandcol-
latedtherightdatathatcanprovideasnapshot
ofthecurrentCRiMenvironmentforsystematic
analysispurposes.
Tohelpfllthisgap,aninitialsurveystudyofWCO
Member administrations was carried out. The
studyfocusesonapproximately20CriMcompo-
nentsthatdealwithestablishingandoperating
CRiMprinciplesandpracticesfrombothstrategic
andoperationalperspectives.ItscopesCRiMto
coverthoserisksassociatedwiththemovementof
goods(excludingforexampleriskswithpassengers
orwithCustomsITprojects).Thestudyalsoex-
ploresthelevelofdetailedunderstanding,insights,
practicalimplementations,tangiblebenefts,and
successmeasurementcriteria,amongstotherfac-
tors,atdifferentadministrations.Themainpartof
thestudydatacollectiontookplacebetweenMay
andAugust2009,afteratwoyearintensiveprepa-
rationphase.Thesurveyreplieswereprovidedby
24administrations(outofthe36invited)fromall
sixWCOregions,representingGDPpercapitaof
between1000and40.000USDollars.
Basedonalltheoutcomesofthesurvey,thefol-
lowing12recommendationshavebeenmadefor
allCustomsadministrationstoconsider:
1. ReviewthecurrentoverallCRiMregime,includ-
ingdefnitions,coreprocesses,alignmentwith
overallcustomsstrategicplans,andriskman-
agementcycles,etc.Ifgapsorinconsistencies
existconsiderrefnement.Trytoestablishfor-
malCRiMstrategicandoperationalprocessesas
partofanestablishedriskmanagementcycle,
withregularupdates,basedonthechanging
operational,criminalandlegalenvironment.
EnsureCRiMisembeddedasthecoreofyour
businessandnotjust“lipservice”oranother
“papertiger”withinyouradministration.
2. ReviewandupdatethecurrentCRiMorgani-
zationalstructurewithinyouradministration
withafocusoninternalgovernance.Clearly
Initial results of the Custom risk
management survey
The growing volume of global trade, as a long term
trend, continues to be a signifcant challenge for
many Customs administrations as we all strive to
maintain an ability to protect our socio-economic
interests from fscal and non-fscal threats. For
many years, Customs administrations have migrated
towards risk managed approaches in order to
maintain control over the movement of people,
goods, and conveyances across borders. Simply put,
Customs administrations have learned by necessity
to focus their resources on high risk cargo while
simultaneously facilitating low risk trade.
by Juha Hintsa and Toni Männistö, Cross-border Research Association
©CBRA
WCO News – N
o
62 – June 2010
s PeCi Al DOss i e R
18
determine and articulate the functions and
responsibilities which are centralized versus
de-centralized;andhowthesefunctionsand
sectionsoftheorganizationinteroperateand
collaborate.Considerevenestablishinginde-
pendentriskmanagement(targeting,analysis
orriskassessment)units,asacomplimentary
operationallayer;withemphasisonproviding
aclearmandate,governance,andinteroper-
abilitywithotherenforcementorintelligence
sections.
3. Consider updating recruitment and career
planning,trainingprograms,recognitionand
rewardsforyourspecializedriskmanagement
offcers,asthisappearstobeoftentheweak
spotregardinghumanresourcemanagement.
MakeCRiMasanappreciatedandrecognized
jobwithinyouradministration.
4. Analyzeandprioritizethefscalandnon-fscal
hazardsandrisksforyouradministrationand
country,lookingatbothstrategicandopera-
tionalimplicationsofriskrealizations.Takea
lookathowdecisionsaremadeonothercus-
tomsproceduresinyouradministrationinclud-
ingbasicimportandexportprocessesandfnd
solutionstopromoteandsupportriskbased
decisionmaking.
5. Take a close look at a broad set of available
qualitativeandquantitativeriskmanagement
tools,techniquesandstandards,andconsider
upgradesinyourcurrentCRiMtoolbox,based
onyouroverallpriorities.Seekabalancebe-
tweenqualitativeandquantitativeapproaches
andmethodologieswithoutrelyingentirelyon
oneortheother.
6. Have an open mind to improve the breadth,
depth,qualityandtimingaspectsofthecom-
mercialdataandothersupportingcontextual
datafedintoyourCRiMprocesses;inparticu-
lar,considerexploitingmorepre-departureand/
orpre-arrivaldata,ascurrentlyithasverylow
priorityglobally.Collaborateproactivelywith
yourtradingcommunitytoseekdatasolutions
thathelptoimproveend-to-endsupplychain
visibility.
7. Checkwhichtypeofintelligenceandotherin-
formationissharedwithotheragenciesinyour
©AustralianCustoms
WCO News – N
o
62 – June 2010
s PeCi Al DOss i e R
19
country, and abroad, and try to identify and
solve any information timing, quality, trust,
legal or other hurdles preventing you from
managingrisksbetterviaproactiveinforma-
tionsharing.Fromaninternalperspective,work
closelywithyourenforcementandintelligence
divisionssotheymayfeedkeyinformationinto
yourriskmanagementunitstoinfuence,sup-
port,anddriveprioritiesatstrategicandtactical
levels.
8. Verifyifanytypesoflegalrestrictionsorpolicy
barriers exist that may be negating CRiM. If
theseexist,considerfndingsolutionstoup-
gradethenationallegislationandregulations,
localorregionalbusinesspractices,oranyother
rootcausesbehindsuchhurdles.
9. Study and apply lessons learned from exist-
ingriskmanagementliterature(includingsup-
ply chain and enterprise risk management),
risk management standards (including AS/
NZS4360andISO31000),andWCOmaterial
suchastheWCORiskManagementGuide,the
GlobalInformationandIntelligenceStrategy,
StandardizedRiskAssessments,theGlobalHigh
RiskIndicatordocument,andWCOe-learning
material.
10. Establish systematic benefits of CRiM, and
buildperformancemeasurementindicators
intoyourCRiMframework.Activelyseekout
themostcost-effcientCRiMenhancements,
andquantitativelymeasurethesuccessofyour
riskbaseddecisionsattheborder.
11. Collaborateandworkcloselywiththeprivate
sectorinyourcountry.Itisimportanttobe
openandtransparentaboutCRiM(without
revealingsecuritysensitivedetails,ofcourse)
andmakethemawareofyourplansforex-
ploitingCRiMinthefuturetofacilitatelow
riskcomplianttrade,and–iffeasible-provide
tangiblebeneftsforwellsecuredandhighly
compliantcompaniesandsupplychains,via
the various CRiM mechanisms you have in
place,nowandinthefuture.
12. Lastbutnotleast,remindyouradministration
thatwhenmovingtowardsactualCRiMim-
plementations,everyregionorcountrylooks
atriskdifferently,thusrequiringtailoredap-
proaches.However,yourapproachtoCRiM
should factor in the necessary alignment
withregionalorglobalpartnerstopromote
thesecurefowoftrade,includinginteroperability
andharmonizationwithelectronicsinglewindow
initiatives,internationalsecuritystandardsand
principles,andcollaborationwithothergovern-
mentpartners,customsadministrations,andthe
tradingcommunity.
Thefullsurveystudyreportisscheduledtobepub-
lishedduringthelastweekofJune,andapresenta-
tionwillbegivenattheWCORiskManagement
Forumon30June2010.Followingthisevent,the
researchteamintendstolaunchapproximately12
casestudies,focusingondetailedenhancements
inCRiMfromCustomsadministrationsglobally.As
thelaststageofthismulti-yearCRiMresearchpro-
gramme,theteamhaspreliminaryplanstodevelop
a“CRiMBestPractices”guidebook,consistingof
shortexamplesonhowCRiMaspectshavebeen
improvedinthepast.
More information
crim@cross-border.org
The study explores the level of detailed
understanding, insights, practical
implementations, tangible benefts, and
success measurement criteria, amongst
other factors, at different administrations.
©AustralianCustoms
s PeCi Al DOss i e R
20
Risk management: what can you really manage?
T
here is so much written about risk manage-
ment,itseemsthatthereisnothinglefttosay.
Conceptually,“risk”isusedtodenoteperils,loss,
dangerousoccurrences,hazards,andevenvulnera-
bilities.Thoseofuswhohadtoteachmanagement
atcollegeanduniversitylevelsknowthatmanage-
mentfromthetimeofHenriFayol’s14principles
in1916tocurrentmanagementteachingincludes
functionalprinciplessuchasplanning,organizing,
commanding,controlling,leading,budgeting;prin-
ciplesinhumanresourceslikepersonneladminis-
tration,humanmotivationandrelations,training,
developmentandperformanceappraisals,andop-
erationalmanagement.Inotherwords,riskman-
agement,involveseveryaspectofanorganization’s
statusandoperations.Butwhataboutsecurityina
globalsupplychain?Inthesupplychainthereare
riskelementslikethirdparties,foreignshippers,
carriers,weather,foreigngovernmentinvolvement,
disruptionintheprocess,timing,language,cargo
qualityandquantity,andotherforces.
Organizations(andfrms)needtofocustheirrisk
management efforts on what they can control.
Therefore,thosetaskedwithriskmanagementdu-
tiesmustunderstandthreedefnitivecategories:
nocontrol;directcontrol;andindirectcontrolwith
indirectcontrolbeingthemostdiffcultsincethe
fundamentalcomponentofriskisthehumanele-
ment,themostdiffcultelementtomanage.
NO control
Globalsupplychainmanagersunderstandthere’s
notmuchtheycandoaboutthebreakoutofwar
ornationalhostility.Whathastraditionallybeen
acceptedasnotunderthecontrolofanorgani-
zationhasbeenexpressedinthelegalconceptof
“forcemajeure”.
“Force majeure literally means “greater force”.
Theseclausesexcuseapartyfromliabilityifsome
unforeseeneventbeyondthecontrolofthatparty
preventsitfromperformingitsobligationsunder
acontract.Typically,forcemajeureclausescover
naturaldisastersorother“ActsofGod”,war,or
thefailureofthirdparties--suchassuppliersand
subcontractors--toperformtheirobligationsto
thecontractingparty.Itisimportanttoremem-
berthatforcemajeureclausesareintendedtoex-
cuseapartyonlyifthefailuretoperformcould
"Those tasked with risk management duties must
understand three defnitive categories: no control;
direct control; and indirect control."
WCO News – N
o
62 – June 2010
By James Giermanski
©InterAmericanDevelopmentBank
s PeCi Al DOss i e R
notbeavoidedbytheexerciseofduecarebythat
party.”(ForceMajeure,http://www.library.yale.
edu/~llicense/forcegen.shtml)
DIRECT control
Withtheincrediblevolumeofrisksinvolvedinthe
securityofaninternationalmovementofcargo,
itseemsthereshouldonlybeoneessentialfocus:
thequalityandcompetencyofpersonnel,from
managerswhohavehadtodevelopandmakepol-
icytothosewhohavetocarryitout.Thus,people
arethesinequanonofmanagingrisk,especially
withrespecttosecurityinthesupplychain.Con-
sequently,organizationsmustdevelopandadhere
topoliciesthatarecarriedoutbyvetted,trustwor-
thypeopleatalllevelsoftheorganization.
Twoexamples,onegovernmentandoneprivate
sector,canbeusedtodemonstratethehuman
roleinsupplychainsecurity:frst,USCustoms
andBorderProtection(CBP)recognizedthisin
itsCustomsTradePartnershipAgainstTerrorism
(C-TPAT);andsecond,thechain-of-custodycon-
tainersecuritysystemnowbeginningtobeused
bytheprivatesector.Thehumanfactorisobvi-
ousinC-TPAT’scorecomponentsthatincludethe
following:
• Business partner security: (a) “Written and
verifableprocessfortheselectionincluding
manufacturers,productsuppliersandvendors.”
• Proceduralsecurity:(i)protectagainstun-mani-
festedmaterialbeingintroducedintoashipment;
(ii)recordkeeping;(iii)internalcontrols–invento-
ries;(iv)manifestprocedures;and(v)documen-
tationverifcations–quantity,quality,marking.
• Physical security: (i) surveillance and light-
ing;(ii)propercommunicationssystems;(iii)
signage considerations; (iv) monitoring pro-
grammeforsensorsandalarms;(v)facilities
– fencing, guards, alarms; (vi) shipping and
receivingcontrols;and(vii)theftprevention
–limitedaccesstoshippingareas,backdock
procedures(warehouserelatedactivityinre-
ceivingorsendingcargo).
• Accesscontrols:(i)identifcationrequirements
–entryandexitlogs,photoid,escorts,pack-
agescans.
• Personnel security: (i) background checks –
criminal,credit,driving,employmenthistory;
(ii)employmentscreening–background,
drugscreening;(iii)codeofconduct–dis-
tributedandacknowledged.
• Education, training, and threat assess-
ment:(i)employeerequirements,incen-
tives.
• Informationtechnologysecurity:(i)pass-
words,usageaccountability.
• Containersecurity:(i)stuffnganddestina-
tioncontrols;(ii)breachdetectiondevices;
and(iii)monitoringshipmentprogress.
• Containerinspection:(a)sevensidedin-
spection(sides,ends/doors,ceiling/foor,
undercarriage).
Eachoftheseinvolvestheactionsofpeople,
fromtheproperselectionoftradepartners
by honest, competent managers, the de-
velopment of policies and verifiable proc-
esses, down to the competent inspection
of containers by warehouse dock person-
nel.Additionally,goodpersonnelselection,
training, and follow-up review limit fraud
andcargolossatterminalanddistribution
sites worldwide. Although the private sec-
tordoesnothaveaccesstothedatamining
andintegratingsoftwareusedbyintelligence
andlawenforcementagencies,goodback-
ground,criminal,andcreditchecksmustbe
madeonallpersonnel,especiallyforfrms
involved with handling cargo in a global
supplychain.
INDIRECT control
Assumingtheuseofgoodpersonnel,there
isstilltheissueoftheftoutsidethecontrol
oftheshipper,consignee,orcarrier.There-
fore, systems must be used to track and
controlcargofromitscontainerstuffngat
origintoitsunloadingatdestination.Smart
containerusagethatemployscontrolfrom
origintodestinationaddressesthe“indirect
control”risk.Ineffect,the“chain-of-custody”
treatmentofcargocanbethemirrorimage
ofthetreatmentofevidenceforprosecution
purposes–forinstance:
• What evidence was found by the law
enforcement officer = what cargo was
actuallyloaded.
21 WCO News – N
o
62 – June 2010
Dr. James R. Giermanski (Jim) is the
Chairman of Powers Global Hold-
ings, Inc. and President of Powers
International, LLC, an international
transportation security company.
He was a Regents Professor at Tex-
as A&M International University
(TAMIU) and is a member of the
graduate faculty at the University of
North Carolina in Charlotte (UNC
Charlotte). Besides having ser ved as
Director of Transportation and Lo-
gistics Studies at TAMIU’s Center for
the Study of Western Hemispheric
Trade, Jim is a reviewer for the US
National Research Council’s Trans-
portation Research Board. He has
authored over 130 articles, books,
and monographs, and has been
published extensively on transpor-
tation and trade issues in addition
to having written the International
Insight column in Logistics Manage-
ment for fve years.
As a former FBI special agent, OSI
special agent and a Colonel in
the Office of Special Investiga-
tions where he handled counter-
intelligence matters, he currently
provides transportation security
lectures on C-TPAT, and other Cus-
toms and Border Protection (CBP)
programmes. Jim holds a Masters
degree from UNC Charlotte, a
Masters degree from Florida Inter-
national University, and a Doctorate
from the University of Miami.
s PeCi Al DOss i e R
WCO News – N
o
62 – June 2010 22
• Identifcationoftheoffcerwhofound
theevidence=identifcationoftheac-
countableindividualverifyingthecargo.
• Offcer’ssignatureasthefrstcomponent
oforlinkintheevidencechain=anelec-
tronicsignatureofthepersonverifying
thatthepropercargoandquantitywas
loaded.
• Thecontrolofevidencebyathirdparty
intheevidenceroomawaitinguseintrial
=third-partycommandcenter’scontrol
ofcargomovement,breachdetectionand
notifcations.
• ReceiptandRemovalofevidencefortrial=re-
ceiptandUnloadingofthecargobyanidenti-
fed,accountablepersonatdestination.
Thus,likethechainofevidence,supplychainrisk
managementisfundamentallyanissueofcontrol.
Whatisabsolutelyclearisthatthe“humanele-
ment”istheessentialcoreofthatissue.Global
supplychainandcontainersecuritysystemsare
inextricablylinkedtodetailedpersonnelselection,
theircompetence,andperformance.Controlling
risksinanyinternationalsupplychainsystemmust
begin,beexecutedby,andendwiththehuman
component.Therefore,thatcombinationofdirect
controlinpersonnelselection,andindirectcontrol
ofintermediariesthroughsystems–humanquality
combinedwithsystemquality–isorshouldbethe
mainfocusofriskmanagementwithintheglobal
supplychain.
More information
powersintnlinc@bellsouth.net
Global supply chain
and container
security systems are
inextricably linked to
detailed personnel
selection, their
competence, and
performance.
OMD actualités – N
o
62 – Juin 2010
s PeCi Al DOss i e R
23
WCO puts risk management under
the microscope
Lastest developments
T
heCustomsinthe21
st
Century(C21)
strategicpolicyapprovedbytheWCO
CouncilduringitsannualsessionsinJune
2008,identifedtheneedforapositive
andproactiveapproachtothemanage-
mentofCustoms.Thethirdbuildingblock
in C21 identifes intelligence-driven risk
managementasoneofthe10keybuilding
blocksofaforward-lookingstrategyfor
Customs.Togiveeffecttothedirection
oftheCouncil’sthinking,theSecretariat
hasbeenundertakingareviewofexist-
ingWCOriskmanagementinstruments
andtools.
Researchhasidentifedawidevarietyof
resourcesattheWCOthatdealwithrisk
managementinvaryingdegrees.These
include, inter alia, the 2003 WCO Risk
Management Guide, the revised Kyoto
Convention,theGlobalIntelligenceand
InformationStrategyanditse-learning
modules,andtheWCOCapacityBuild-
ing Development Compendium. How-
ever,noneoftheseindividualresources
completelyexplaintheimplementationof
CustomsRiskManagementorthedetail
behindtheconceptsofintelligence-driven
risk managementoramulti-layeredrisk
managementapproach.
Thepurposeofthereviewistodraftasin-
glecompendiumthatwillprovideWCO
Members with a framework for imple-
mentingorganizationalriskmanagement
systems,togetherwithinstructionsand
methodstoapplyriskmanagementand
assessmentthroughoutanadministration.
ThenewRiskManagementCompendium
acknowledges and builds upon existing
WCOriskmanagementmaterialwiththe
scopeexpandedtoinclude,asappropriate,
workdonebytheInternationalStandards
Organization(ISO)onriskmanagement
standardsingeneral.Linkswillbedrawn
fromdocumentssuchastheISO/IEC73-
Vocabulary,theISO/IEC31000-Principles
andGuidelinesonImplementation,and
theISO31010-RiskAssessmentTech-
niques,aswellasotherrelevantreferences
andexperiencesinthisfeld.
RiskManagementhasbeenapriorityfor
WCOcapacitybuildingsupportformany
years.TheSafeFrameworkofStandards
recognizesriskmanagementasoneofits
corecomponentsandtheColumbusPro-
grammehasbeenprovidingassistancein
differentformatstosupportimplemen-
tationthroughdiagnostics,development
consultancies,training,seminars,etc.
Diagnosticmissionsconductedunderthe
ColumbusProgrammerevealthatmany
Customsadministrationshavealreadyin-
troducedbasicprocedures,routinesand
solutions for operational risk manage-
WCO News – N
o
62 – June 2010
ment.However,theyalsorevealthatin
manycasesitissomewhatlimitedtorisk
assessmentandtargeting,mainlyfocus-
ingonCustoms’revenuecollectionrole.
Fromaglobalperspective,thereisaneed
forfurtherdevelopmentofriskmanage-
ment to improve risk prevention, risk
mitigationandcorrespondingallocation
ofresourcesbasedonintelligence-driven
riskdecisions.Theseissuesareexpected
tobefurtherexploredanddevelopeddur-
ingthecomingWCORiskManagement
ForuminJune2010.
More information
www.wcoomd.org
s PeCi Al DOss i e R
WCO risk management activities
R
iskmanagementiskeytotheoverall
reconciliationoftherequirementsof
enforcement, security and facilitation.
OneofthebiggestchallengesCustoms
administrations are facing today is to
determinehowtobestapplyriskman-
agementtoidentifyandmitigateriskat
theoperationallevel.Astheonlyinter-
nationalintergovernmentalorganization
thatdealswithCustomsproceduresgov-
erningtradebetweencountries,theWCO
hasdevelopedavarietyofdifferenttools
whichcanassistandfacilitateitsMem-
bers’workinmanagingrisk.
WCO Global Information and
Intelligence Strategy
Intelligence is a key component of risk
management. It is produced from the
collectionandprocessingofinformation
and is used primarily by Customs deci-
sion-makersatalllevelstosupporttheir
decision-makingprocesses.
TheWCOGlobalInformationandIntelli-
genceStrategy(GIIS)setsoutwhatintel-
ligenceis,identifesitsactualorpotential
source,forwhomitisbeingproduced;and
whyitisneeded.GIISalsosetsoutthe
intelligencecycle;fundamentalprinciples
and processes that underpin all intelli-
genceactivity.
Risk Assessment, Profling and
Selectivity
Attheoperationallevel,riskassessment,
proflingandselectivityformanimpor-
tantpartofCustoms’workinrelationto
bordercontrols.Thepurposeofborder
controlsistoensurethatallmovements
ofgoods,conveyancesandpersonsthat
crossnationalbordersoccurwithinthe
laws, regulations and procedures that
governthem.
A common characteristic of a border
crossingisthehighvolumeofimports,
exportsandpassengers,makingitimpos-
sibletocheckeverythingandeveryone.
Thesolutionistoconcentrateresources
on identifying and examining high-risk
passengers,cargoandconveyances.
InordertoassistitsMemberstomoreef-
fcientlyallocatetheirresourcestoidenti-
fedhigh-riskareas,theWCOSecretariat
developed several training modules on
RiskAssessment,ProflingandSelectivity:
AirCargoandAircraftforFrontlineCus-
tomsOffcers;PassengersforFrontline
CustomsOffcersatAirports;Vesselsand
SeaCargoforFrontlineOffcers;Training
inRiskManagementforSupervisors;and
FrontlineCustomsOffcersatLandBorder
Crossings.Updatedversionswillbeavail-
ableforWCOMembersin2011.
Inadditiontothemodules,anothermod-
ulehasbeendevelopedundertheWCOe-
learningprogram(CustomsControls,Risk
Assessment,ProflingandSelectivity)to
helpCustomsoffcersdecidehowtouse
availableresourcestoselectpassengers
and/orgoodstobecontrolled,andhow
thoroughthecontrolsshouldbe.
Risk Indicators
RiskproflingisthemeansbywhichCus-
toms puts risk management into prac-
tice. It replaces random examination
of documents and goods with planned
andtargetedworkingmethods,making
maximumuseofCustomsresources.The
proflingprocessisbasedonspecifedse-
lectivitycriteriacalledriskindicators.
TheWCOSecretariathasseveralinstru-
ments that identify the most common
riskindicators,enablingWCOMembers
todeveloptheirownsetofriskindicators
fordailyusebyfrontlineoffcers:Stand-
ardized Risk Assessments; Model Risk
Indicators/Profiles; General High-Risk
Indicators; and the Handbook for Cus-
tomsOffcersonRiskIndicators:Factors
for Intellectual Property Infringement.
TogetherwithWCOMembers,theSecre-
tariatisalsocurrentlyproducingriskindi-
catordocumentsandmanualsforair,sea
andlandbordercrossingsbasedonthe
differentlogisticalstages(pre-arrival,ar-
rivalandpost-arrival).Thesedocuments
willbefnalizedin2011.
Analysis Guidelines
Riskanalysisisanessentialpartofriskas-
sessmentandprovidesvaluableinforma-
tiontodecision-makersonwhetherrisks
underconsiderationneedtobetreated
aswellasavailableandmostappropriate
treatmentpossibilities.Withinthiscon-
text,theWCOSecretariatisintheproc-
essofdevelopinganalysisguidelinesfor
Membersoutliningthebasicprinciples,
processesandtypesofriskanalysis.These
AnalysisGuidelineswillbemadeavailable
in2011also.
CEN - Customs Enforcement
Network
Analyzingdataoninternationalseizures
can improve a WCO Member’s under-
standingofglobalrisksandallowthemto
refnetheirproflingandtargetingactiv-
ity.ThereforetoolssuchastheCustoms
EnforcementNetwork(CEN),whichoffers
plentyofdifferentfeatures(seizureand
concealmentpicturedatabases,acom-
munication network, an alert system,
etc.)canbeaveryusefulinstrumentand
assistMembersinmanagingrisksespe-
ciallyinthefeld.
Annual Reports
TheSecretariatpreparesannualreports
ondrugs,tobaccoandintellectualprop-
ertyrightswhichprovideaglobalover-
viewofillicittradeintheseproducts.They
assistCustomsadministrationstobetter
understandthelatesttrendsintherisk
environment,enablingthemtopreparea
moreeffcientresponsetotherisksposed
bythesespecifcproductsonsociety.
Post Clearance Audit
Audit-based controls complement risk
analysismethods.Theybothcontribute
tomaintainingthebalancebetweentrade
facilitationandcontrol.PostClearance
24 WCO News – N
o
62 – June 2010
Risk management: key enablers
by David Widdowson
25
s PeCi Al DOss i e R
Auditisregardedasoneofthemostef-
fectivemeasuresforcomplianceverifca-
tionandfordetectingcommercialfraud,
especiallyvaluationfraud.
Considering that a number of Customs
administrationsarestillinneedofassist-
anceinthisfeld,WCOGuidelinesonPost
Clearance Audit (PCA) were developed
andareaimedatprovidingspecifcguid-
anceonessentialelementstointroduce
PCA.TheGuidelinesalsoincludeacom-
pilationofexistingbestpractices.
A package of essential tools soon
Mostofthetoolsmentionedinthisarti-
clewillbeincorporatedintothe“Toolsfor
RiskManagement”sectionoftheWCO
RiskManagementCompendiumthatthe
SecretariatplanstopublishinJune2011
(seearticleonpage23).
More information
enforcement@wcoomd.org
Much has been written about the management of risk
in the Customs context, and there is no shortage of
commentary on best practice procedures, operational
guidelines, strategic frameworks, and so on. Rather
than cover old ground, in this article I will focus on what
I consider to be some of the more critical yet often
overlooked enablers of effective risk management.
hadbeenassignedtoaddress,itbecame
apparentthat,formanyeconomies,the
primaryreasonforimplementingthevari-
ousinitiativeshadverylittletodowith
mitigatingtheriskofterrorismattempts
–itwasmoreconcernedwithmaintain-
ingahealthytradingrelationshipwiththe
UnitedStates.Notwishingtodebatethe
meritsorotherwiseofsuchastandpoint,
theimportantconsiderationfromarisk
management perspective is to ensure
thattherelevantriskhasbeenproperly
identifed,toavoidthepossibilityofin-
troducingextraneousvariablesintothe
subsequentriskmanagementdecision-
makingprocess.
Appreciate the value of identify-
ing low risks
Itisnowwidelyacceptedthattraders
withagoodrecordofcompliancerequire
alowerlevelofscrutinythanthosewith
ahistoryofpoorcompliance,orthose
aboutwhichlittleisknown.Thisconcept
isintegraltotheWCO’sSAFEFrame-
work of Standards which promotes a
range of benefits for Authorised Eco-
nomicOperators(AEO)byvirtueoftheir
lowriskstatus.Alongwithother‘trusted
trader’regimes,theAEOprogrammere-
fectssoundprinciplesofriskmanage-
mentbyidentifyinglowriskmembersof
theinternationaltradingcommunityto
reducethesizeofthe‘riskpie’,thereby
Understand the true nature of risk
Whenever I’m asked to provide a com-
mentary on risk management, my first
questionis,‘Risktowhat?’.Determining
theanswertothisquestionisnotalways
assimpleasitsounds.Forexample,short-
lyafter9/11,Iinterviewedsenioroffcials
from twenty Customs administrations
whohadbeentaskedwithimplementing
arangeofsupplychainsecurityinitiatives.
Indiscussingtherisksthattheseoffcers
WCO News – N
o
62 – June 2010
©InterAmericanDevelopmentBank
WCO News – N
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62 – June 2010 26
aidingthedeploymentofresourcesto-
wardspotentiallyhigh-riskoperators.
Comparethispositiontothetraditional
Customsauditwhichisintendedtoassess
thedegreetowhichacompanyiscomply-
ingwiththerelevantregulatoryrequire-
mentsandnot,assomeassume,simply
todetecterrorsinacompany’sregulatory
dealings.Theimportantpointhereisthat
suchanassessment,regardlessofthere-
sult,assistsindeterminingwherefuture
complianceresourcesshouldbedirected.
A corollary to this is that an auditor’s
fndingofcomplianceisequallyasgood
a‘result’asafndingofnon-compliance.
Thisisoftenoverlooked,sinceafndingof
non-compliancegenerallybringswithit
atangiblerevenuereturntogovernment
whereastheidentifcationofacompliant
traderdoesnot.
Accept that political risks are
a priority
Thehighestrisksfacinganyorganisation,
includingCustomsadministrations,are
politicalinnature.Failingtoeffectively
managetheseriskswillsignifcantlyun-
derminetheorganisation’scredibility.At
anationallevel,themitigationofpolitical
riskstranslatesintogovernmentpriority
settingwhichisrefectedinaneconomy’s
focusonparticularelementsofitsCus-
tomschartersuchasrevenuecollection,
peoplesmuggling,security,ortradefa-
cilitation.Ifrequentlyseeadministrations
beingcriticisedfordirectingtheirefforts
andresourcestowardscertainactivities
atthedirectexpenseofwhatothermem-
bersoftheinternationalCustomscom-
munityconsidermoreimportantCustoms
functions.Thebottomlineisthat,inany
economy, the management of political
riskswillalwaystakeprecedence.
One means of mitigating political risks
whichisoftenoverlooked,istosecurean
activeroleforCustomsinthegovernment
policy-makingprocess.Forexample,so
oftenrevenuetargets–atermthatIab-
hor–aresetintheabsenceofanyappar-
entscientifcrigour.Inmanycases,wesee
politicallyexpedienttargetsof‘xpercent
abovelastyear’scollections’.ACustoms
inputintotherevenueforecastingproc-
esswillattheveryleasthelptoavoida
FinanceMinistryfait accompli whichwill
dominatetheadministration’sfocusfor
thefollowingtwelvemonths.
Achieve congruence
Intervention by exceptionisatermwhichI
frstcoinedinthe80stodescribearegu-
latorycompliancestrategythatisbased
on the principles of risk management.
Itimpliesregulatoryinterventionwhen
thereisalegitimateneedforit;interven-
tionbasedonidentifedrisk.Andwhile
many administrations now espouse a
policyofinterventionbyexception,there
isroutinelyalackofcongruencebetween
organisational policy and operational
practice.
I once watched a particular South East
Asianadministrationrituallyopeneach
andeveryexpressconsignmentthathad
arrivedearlierthatmorning.Ipointedto
apassingtruckthatwascarryingacon-
tainerfromthenearbywharf,andasked
theRegionalDirectorwhetherthesame
levelofCustomsscrutinywasappliedto
seacargo.Theanswerwasapredictable
‘no’,butthereasonwasnotsopredict-
able–‘riskmanagement’.Thisexplana-
tioncommonlybeliesthetrueoperational
approachofmanyadministrations,that
is,whatcanbeexaminedwillbeexam-
ined,regardlessoftherisk.Furthermore,
the number of ‘high risk transactions’
tendstobedirectlyproportionaltothe
resourcesavailabletoconducttheneces-
saryexaminations.Forexample,thein-
spectionrateofcargoshippedbyamajor
forwarderincreasedsignifcantlyduring
therecentglobaleconomiccrisis,andI
wassomewhatbemusedtodiscoverthat
thesamenumberofinspectionswasbe-
ingconductedthroughoutthatperiodde-
spitethefactthattheleveloftradehad
plummeted.Idoubt,however,thatthe
trader’sriskratinghadchangeddramati-
callyduringthatperiod.
Unfortunately,suchastateofaffairsis
not uncommon. Administrations tend
togotogreatlengthstoshowtheyhave
introducedariskmanagementpolicybut
thereiscommonlyalackofcongruence
betweenthewrittenpolicyandwhathap-
pensinpractice.Atopicalexampleisthe
currentdebateonhowbesttomitigate
securityrisks.Considerthis–ifatrader
s PeCi Al DOss i e R
©CPB
s PeCi Al DOss i e R
27 WCO News – N
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62 – June 2010
According to the WCO Risk Management Guide,
all organizations benefts from the application of
a risk management strategy since this benefts
organizational performance as a whole. Risk
management in any organization consists of well-
defned steps which, when taken in sequence,
support better decision making by contributing to
greater insight into risks and their impact.
F
orCustomsadministrations,theadoptionof
riskmanagementasanorganizationalphiloso-
phyisessentialsinceitprovidesquantifableim-
provementsintheeffectivenessandeffciencyof
theadministrationasawhole.Riskmanagement
canoperateinanyorganizationwithmanualor
automatedapplicationsrangingfromtacticalto
strategicapproaches.Itcanbeappliedtonearly
everydecision-makingsituationalso.
IntheSouthAfricancontext,Customsriskman-
agement–thesystematicapplicationofmanage-
ment procedures and practices which provide
Customswiththenecessaryinformationtoad-
dressmovementsorconsignmentswhichpresent
arisk–hasbeenpartoftheoperationalapproach
formanyyearsintheformofanenterprisewide
BusinessIntelligenceUnit,andmorerecentlythe
CustomsRiskManagementDivision(CRM)whose
mainpurposeistheidentifcation,classifcation,
disseminationandmitigationofcompliancerisk.
Various CRM officers (Operational Specialists:
Risk)aredeployedtoeithertheCentralRiskUnit
(CRU)basedinportsandoffcesaroundthecoun-
try,ortheNationalTargetingCentre(NTC)which
wasestablishedduring2009.
OffcersintheCRUareresponsiblemainlyforfo-
cusingontacticalportandregionalspecifccom-
plianceriskissuesandcases,inlinewithnational
strategicparameters,andsupportportoperations
byperforming,onadailybasis,riskidentifcation,
analysis and product dissemination/mitigation.
Managing risk in practise:
South Africa shares
her experience
27
demonstratesacommitmenttoglobal
supplychainsecuritybyachievingand
maintainingAEOstatus,doestherere-
mainagenuinelyrisk-basedneedforthe
cargotobescanned,andforthetrader
toprovideadvanceinformationtothe
authoritieswhograntedthatstatus?
Achieve internal congruence
Theissueofcongruencealsoextendsto
theinternalmechanismsofanorganisa-
tion.Againandagain,Iseethesituation
where an officer has correctly applied
therelevantpolicyonriskmanagement,
onlytolaterdiscoveraproblemwiththe
consignmentortransactioninquestion.
Theresult?Managerialdispleasureand
theallocationof‘blame’.Itisinevitable
that some things will slip through the
cracks–noteventhemosteffectiverisk
management system is fail-safe, and
managersneedtorecogniseandaccept
thisfactandsupporttheirstaffindeedas
wellasinword.Itremindsmeofacertain
politician’swarningtoanadministration
thatwasdebatingtheformalintroduc-
tionofriskmanagement:‘Iwishyouluck
butyouwillbeheldaccountableifany-
thinggoeswrong!’
Iwouldliketoleaveyouwiththispart-
ingthought.Itisatruismthat,evenwith
thebestsystemsandproceduresinplace,
thingswillgowrongfromtimetotime
anditisthereforeincumbentonman-
agerstofocusnotonlyonhowrisksare
managedbutonhowthosewhomanage
therisksaresupported.
Professor David Wid-
dowson is the CEO of
the Centre for Customs
and Excise Studies at the
University of Canberra
in Australia. He is also
Editor-in-Chief of the
World Customs Journal,
and the President of the
International Network of
Customs Universities.
More information
David.Widdowson@canberra.edu.au
Offcers must, on a
daily basis, collect
relevant data,
analyse, compare
and weigh this
data, then make
logical deductions
and derive fndings
that will focus
efforts on high risk
or the highest risk
consignments.
s PeCi Al DOss i e R
28 WCO News – N
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62 – June 2010 28
Themainrecipientsoftheserisk-relatedproducts
aretheoperationalcargoteams,theenforcement
teams(forexample,theCustomsBorderControl
Unit),andPostClearanceAuditteams.
Inordertoperformtheirtasks,
offcersmust,onadailybasis,
collectrelevantdata(andthis
is collected from databases
within Customs or external
to Customs), analyse, com-
pareandweighthisdata,then
make logical deductions and
derive findings that will fo-
cuseffortsonhighriskorthe
highestriskconsignments.An
offcerthereforefollows,ona
dailybasis,thestepsofestab-
lishingthecontext,identifying
therisk,analysingtherisk,as-
sessingandprioritisingtherisk
andthenaddressingtherisk.
A risk management officer is
as such responsible for sup-
porting operations through
managingriskand“fllingthe
gaps”wherethesemayoccur.
Operationalstaffhavespecifc
skillsandmustbedirectedto
focus areas where their skills
canbeoptimallyused,andthis
canonlybedoneiftheyknow
whichconsignmentshavebeen
identifedaspotentiallybeing
ofhighrisk.Clearly,operational
staffshouldnotspendtimeon
performingmethodologicalrisk
managementstepswhichare
performedbytheCRM.
However, it is essential to note that as risk is
“owned”byOperations,themerefactthatrisk
managementoffcersperformthedailymethodo-
logicalstepsasindicated,doesnotdetractfrom
thefactthatCustomsoffcersatalllevelsandin
allareassupporttheriskprocessbyforexample,
reportingonsuspiciousactivities,reportingthor-
oughlyandwithinrequiredtimeframesoninci-
dentsandinterventions,supplyfeedbackonrisks
thatweretobetested,etc.Thepointofpivotalim-
portanceisthatriskmanagementoffcersdonot
owntheprocessofrisk;riskmanagementmerely
fulflstheroleofatechnicalorsupportexperts.
StaffintheNationalTargetingCentreareresponsi-
bleforidentifying,evaluating,classifyingandtrack-
ingcomplianceriskandmustprescribeoperational
responsesinrelationtoharmfulgoodsaswellas
activitiesofindividualsandotherentitiesandpar-
ticipantsinthesupplychainresponsibleformove-
mentsofgoodsacrossSouthAfrica’sbordersand
throughitsterritorywhereaseriouscommercial
and/orsecuritythreatataninternational,regional
and/ornationallevelisposed.TheCustomsNTC
isthereforeresponsibleforidentifyingandinter-
preting the international, regional and national
economicandsecurityenvironment,toalignits
focusaccordingtothreatsmanifestedineachand
toadviseontheimplementationofmeasuresin
ordertomitigatethreatsinadvanceinasfaras
imported;exportedortransitgoodsareconcerned.
TheNTCaimstoensurethatthefollowingaremade
arealityduringthe2010/11fnancialyear:thepre-
loadingoftargetingofgoods,peopleandconveyanc-
es(“Tier1”targetingbasedonadvanceinformation);
thedevelopmentandmaintenanceofthenational
defaultweightsets/proflesbasedondifferentrisk
andthreatassessments;tosupportport-leveltar-
getingandpre-selectionhubs(Note:Preselection
hubsmaybedevelopedbasedonmodalitiesandare
dependentonadvancedelectronicinformation);the
maintenanceofasystemofalerts;thedevelopment
andmaintenanceofnationalseizureandoffenceda-
tabases;andtocomputeriskandthreatlevels.
Riskmanagementstaffmustbeinquisitive,under-
standthebusinessofCustoms,andapplysystem-
aticallytheknowledgetheyhaveinordertoderive
empiricalresultsthatwillguideoperationalefforts.
From the above examples, it is evident that the
feldofriskmanagementisessentialinaresource
challengedenvironment,notonlyfromarevenue
perspectivebutalsofromasecurityperspective,
andallCustomsadministrationsshouldadoptrisk
managementprinciplesandestablishariskman-
agementcapacityinordertoensurefocusedand
costeffectiveoperations.
More information
www.sars.gov.za
The feld of risk management is essential
in a resource challenged environment,
not only from a revenue perspective but
also from a security perspective.
©SARS
s PeCi Al DOss i e R
29
How to modernize risk analysis and
the selectivity of Customs controls in
developing countries?
by Anne-Marie Geourjon, Grégoire Rota Graziosi and Bertrand Laporte
WCO News – N
o
62 – June 2010
T
he WCO’s revised Kyoto Convention (RKC)
recommendsthatphysicalcontrolsbelimited.
Thisisalsooneoftheproposalsbeingdiscussedas
partoftheWTOnegotiationsontradefacilitation.
Also,thepromotionofethicalconductisanim-
portantaspectofthereformsbeingundertakenin
developingcountriesinordertomodernizetheir
Customsservices,andlimitationofcontrolsises-
sentialinordertoaddresstherisksofcollusion
betweenoffcerandimporter,whicharegreatest
prior to the removal of goods. This means that
therecanbenoalternativetothetargetingand
selectivityofcontrols.Howeversomereluctance
hasbeenencountered:onthepartofstaff,who
aredisinclinedtochangetheirworkingmethods
andfearthattheywilllosebenefts;andonthe
partofauthorities,concernedabouttheirCustoms
revenuesand,therefore,worriedbytheideaofre-
leasinggoodswithoutphysicalinspection,asthey
represent“security”forthedutiesandtaxespay-
able.Thisiswhyitisnecessarytoidentifyoptimal
conditionsfortargetingoperationsforcontrols,so
thatthereisnoriskoflossofrevenue.
Theselectivityofcontrolsinvolvesidentifyingthe
mosthighriskoperationsanddirectingthedecla-
rationsintodifferentcontrolchannelsasappropri-
ate.Targetingisperformedeitherusingtraditional
methods,orusingmoreinnovativemethodswhich
employmodernriskanalysistools.
In the traditional methods, targeting is carried
outonarandombasisand/orusingriskcriteria.
Theidentifcationoftheriskcriteriaiscarriedout
“manually” and relies on the Customs officer’s
experience and judgement, based on available
information on transaction histories, or based
onintelligence.Thetargetingcriteria,validated
byaCommitteeperhaps,arefactoredintotheIT
system’sselectivitymoduleandare,intheory,re-
viewedperiodically.Therearetwodrawbacksto
thesemethods:theyrelyonhumanintervention
andjudgement,whichconstitutesariskinitself;
and they require a great deal of effort in order
toadapt,inrealtime,tonewformsofCustoms
fraud.Hencetheattractionofeliminatinghuman
intervention to the greatest extent possible by
usingmoresophisticatedautomaticriskanalysis
methods.
Theideaistoadoptanapproachidenticaltothat
employed in many sectors (banking, insurance,
nuclearenergy)foranalysingrisk,basedonthe
useofscientifcmethods,andadaptittotheCus-
tomscontext.Thisistheapproachtakenbyprivate
frmsinparticularthatmarketriskanalysissystems
(Smartlane,Profler,SIAR,WebFountain,etc)to
Customsadministrations.
Thetargetingsystemisbasedonfourdifferent
approaches:thefrstconsistsofcheckinganyop-
erationthatinvolvesunknownqualities(newim-
porter,forexample);thesecondisbasedonthe
inspectionoftheimportdeclarationandthestatis-
ticalstudyoftheoverallseriesandpasthistoryof
fraudinordertoassesstherisk;thethirdinvolves
thesystematiccontrolofanoperationonthebasis
offactorslinkedtocertaincharacteristics;andthe
fourthconsistsofapurelyrandomselection,used
inparticulartoregulatetherateofcontrols.Itis
thesecondapproachwhichformstheheartofthe
systemandgivesitits“rational”(non-subjective)
character,enablingtheentiretargetingsystemto
beautomated.
Withthisapproach,eachnewclearanceopera-
tion has a fraud probability (overall score). For
thispurpose,fraudcriteria(forexample,importer,
product,origin,etc)areinitiallyidentifedusing
historicaldata;next,weightingcoeffcientswhich
refecttherelativeimportanceofeachcriterion
areappliedtothem.Therelevantfraudcriteriaand
theirweightingsaredeterminedusingascientifc
method,forexamplebyeconometricanalysis.Any
newclearanceoperationwillthenbegivenanover-
allscorewhichevaluatestheriskoffraud(thepre-
dictedprobabilityoffraud)withreferencetothe
characteristicsoftheoperation(thefraudcriteria).
Thisscoreenablesthedeclarationtobedirected
automaticallyintooneofthecontrolchannels.
Aproportionofthedeclarationsdirectedtothe
greenchannelaresubsequentlyredirectedunder
thefourthapproach.Approachesoneandthree
canbeusedtodirectoperationsstraighttothered
channel.Theresultsofcontrolsarefedin,continu-
The selectivity of
controls involves
identifying the
most high risk
operations and
directing the
declarations into
different control
channels
30 WCO News – N
o
62 – June 2010 OMD actualités – N
o
62 – Juin 2010
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s PeCi Al DOss i e R
31 WCO News – N
o
62 – June 2010
ouslyenhancingthedatahistory,andthisenables
thefraudcriteriaandtheirweightingcoeffcients
tobekeptup-to-date.
Thisapproachhasbeentestedbytwocountries
1

inAfrica.CountryAemploystheservicesofapre-
inspectioncompany,whereascountryBhasnever
usedsuchservices,butrecordsalllitigationcases
in its IT system. Intuitively country B’s method
should be less effective, because the quality of
theavailableinformationislower.Thepredictive
powerofthemethodisevaluatedbyrecalculating,
post-facto,thetotalscorewhichwouldhavebeen
assignedtoeachoperation,andlookingatwhether
theoperationwasinfactfraudulent.IncountryA,
bycontrollingjust25%ofoperations,themethod
picksup93%oftheadjustmentscarriedoutby
thepre-inspectioncompany.IncountryB,bycon-
trolling2.3%ofoperations,themethodpicksup
83.8%ofoperationsgivingrisetolitigation.Using
aprivatecompanyto“guarantee”thatdatawillbe
of“good”qualityisnotessentialwhendeveloping
asystemofthiskind.
Assumingthatthereisasignifcantrelationshipbe-
tweenthenumberofcasesoffraudidentifedand
theamountexpectedtobederivedfromadjust-
ments,thegoodpredictivepowerofthemethod
ensuresthatrevenueswillbestableintheshort
term.Inthemediumterm,thescientifcandau-
tomaticnatureofthemethod,byreducingthein-
tegrityrisk(corruptbehaviour)aswellasenabling
thequalityofcontrolstobeimprovedwillhavea
positiveimpactonrevenue.Theimpactontrade
facilitationisimmediate!
Whattechnicalcapabilitiesarerequiredtoputthis
kindofsystemintooperation?Thescientifcanaly-
sisofhistoricaldatacallsforpost-universitylevel
skillsindataminingandstatisticaldecisiontheory.
Thesystem,althoughautomated,doesnotrequire
“heavy-duty” programming, but an integrated,
openclearancesystem.Post-clearancecontrols
and investigative and intelligence activities are
necessaryinordertohuntoutnewfraudtrends
andfeedthesystemmorerapidlythanwouldbe
thecasewiththepurelyrandomselectionofop-
erationstobecontrolled.
Leving aside the specific skills of data mining
andstatisticaldecisiontheory,Customshasthe
know-howrequired.Onequestionremains–can
1
Geourjon,A-M.andB.Laporte(2005):“Riskmanagementfortargetingcus-
tomscontrolsindevelopingcountries:ariskyventureforrevenueperform-
ance?”,Public Administration and Development,25,p.105-113;Geourjon,
A-M.andB.Laporte(2004):“L’analysederisquepourciblerlescontrôles
douaniersdanslespaysendéveloppement:uneaventurerisquéepourles
recettes?”,Politique et Management Public, Vol.22,n°4, p.96-109.
theadministration’scom-
mitment to this project
createthesynergywhich
isvitaltoitssuccess,par-
ticularlyintermsofmo-
bilizingthenecessaryre-
sourcesandestablishing
appropriateinstitutional
structures?
Recoursetoprivatesec-
tor services can be en-
visagedtohelpCustoms
usesystemsofthiskind
which operate on the
basis of Customs data;
thiscouldinvolveeither
softwareacquisitionand
start-up (design phase
only),oranoutsourcing
contract(designandim-
plementation).However,
recent work
2
based on
information theory has
highlighted the incom-
patibility of associating
withinthesamecontract,
i.e.,withthesameprivate
company, an inspection
programmeforimportsandaCustomsmoderni-
zationobjective(includingriskanalysis).Thisisbe-
causeacompanywhichisbeingpaidbyacountry
tocarryoutinspections,whetherpre-shipmentor
atdestination,hasnointerestinsucceedingwith
thesecondobjectiveofCustomsmodernization,
therebyputtinganendtoahighlylucrativeinspec-
tionprogramme.Thesuccessofthesecontracts
willdependuponcompliancewithcertainrules
3
on
compatibilityofthecontractobjectives,modesof
payment,informationfows
4
,andevencontracting
parties(MinistryofFinanceorRevenueAuthor-
ityforaninspectionprogramme,Customsforthe
modernizationobjective).
More information
CERDI-CNRS, University of Auvergne
www.u-clermont1.fr
2
Dequiedt,V.,Geourjon,A.-M.andG.Rota-Graziosi,2009,“LesProgrammes
deVérifcationdesImportations(PVI)àlalumièredelathéoriedel’agence”,
Afrique Contemporaine,230(2),151-166;Dequiedt,V.,Geourjon,A.-M.and
G.Rota-Graziosi,2009,“OntheDesignofPreshipmentInspectionPro-
grams”,EtudesetDocumentsduCERDIN°10.
3
Ineconomics,therecentbranchof“contracttheory”aimstoidentifythe
optimalcontractforthePrincipal,i.e.,thecontractingpublicauthority.
4
Inthisconnection,itisnotdesirableforcontractsrelatingtoimport
inspectionprogrammestoincludethetaskofprovidingCustomswiththe
riskanalysisresultstobeusedforselectivitypurposes.
©InterAmericanDevelopmentBank
32
B
etween 2006 and 2009, the Inter-
nationalOrganizationforMigration
(IOM)ledanECfundedprojecttoassist
thecountryinthedesignandimplemen-
tationofanationalstrategyandaction
planonintegratedbordermanagement.
Risk analysis formed one of the com-
ponents of the project, reflecting the
authorities’ awareness of the friction
betweenontheonehand,thenecessity
toestablisheffectivebordercontroland
ontheotherhand,thelimitedphysical
meansattherelevantagencies’disposal.
The Balkans region is, and always has
been,animportanttransitpointforgoods
andpeopletoandfromtheEU.Addition-
ally,BosniaandHerzegovinaisincreas-
inglyasourceanddestinationcountryfor
cross-bordertraffcaswell.Thesheervol-
umeoftraffcmakesitpracticallyimpos-
sibletocarryout100%checks.However,
theprocessofdeterminingwhattocheck
andwhattoskipwasinmanyrespectsstill
initsinfancy.
Fromtheoutsetoftheprojecttherewas
aclearconsensusamongthestakeholders
(IndirectTaxationAuthority,BorderPo-
lice,StateVeterinaryOffce,StatePlant
HealthProtectionAgency,andtheService
forForeigners’Affairs)thatinter-agency
cooperationwouldaddsignifcantvalue
totheprocessofriskanalysis.However,
theformofthisinteragencycooperation
waslesswellunderstood.TheMinistry
ofSecurityandtheheadsoftheborder
management agencies also gradually
grewaccustomedtothethoughtofgoing
beyondamereexchangeofliaisonoffc-
ers.Theconveningofsenior-levelstudy
visitstoRotterdamharbor,totheWCO,
andtoHeathrow’sJointBorderOperation
Centerassistedthedevelopmentofboth
asharedunderstandingandthenecessary
conceptual buy-in for the idea of cen-
tralizationandthepartialamalgamation
oftheanalyticalfunctionsoftheborder
managementagenciesintoasingleJoint
AnalysisCentre(JAC).Theagenciesthen
established the JAC, through an inter-
agencyMOU,asadepartmentwithinthe
BorderPolice,butstaffedbyallagencies
onasecondmentbasis.
The objective of the JAC is to supply
participating agencies with actionable
operationallevelinformationaswellas
withstrategiclevelinformationongen-
eraltrendsanddevelopmentsincross-
bordertraffc.TheworkplanoftheJAC
isagreedperiodicallybetweenthepartici-
patingbordermanagementagencies.The
agenciesprovidetheJACwithanupdated
replica of their corporate data through
each agency’s Local Analysis Center
(LAC)datawarehouse.Forexample,in-
formationfromasingleagency’svarious
internaldatabasesisfrstfunneledtoits
own LAC where it is processed for the
s PeCi Al DOss i e R
organization’sownanalyticalpurposes.
Itisthen(partiallyorwholly)replicated
foranalysisofpossibleinter-agencyrela-
tionsortrendsindatabytheJAC.This
requiredanextensiveandongoingprocess
ofstandardizationandnormalizationof
datainordertobeabletoestablishlinks
between fields from the databases of
thedifferentorganizations,orevenfrom
withinoneorganization.
Confidentiality and privacy of data is
protected by synchronized anonymiza-
tionoffeldsholdingpersonallyidentif-
ableinformation,inadditiontophysical,
proceduralandorganizationalmeasures.
TheanalystsattheJACarethereforeat
nopointpresentedwithnames,addresses
ortelephonenumbersofpersonsofin-
terest,butmerelywiththefactthatthe
codesrepresentingthenamesmatchbe-
tweendifferentdatabases.Ifthatlinkis
deemedtobeofoperationalsignifcance,
thenauthorizedinvestigatorsmayrequest
thereleaseofthecorrespondingpersonal
informationfromtherelevantagencies.
Thismayresultinanupdatedentryona
watchlistorevenaproposalforaninter-
Bosnia and Herzegovina: joint risk analysis on
cross-border traffc
by Richard Ots
The application of risk management processes to the cross-border movement of goods
and people in Bosnia and Herzegovina has gone through some remarkable changes over
recent years. From a fragmented approach on the fringes of some border management
agencies’ operational processes, it is now well on its way to becoming an integral element
in the country’s comprehensive approach to border management.
WCO News – N
o
62 – June 2010
Some of the staff from the Joint Analysis Centre
Mexico Customs reports its
progress on applying risk analysis
to core processes
A
saCustomsadministration,oneof
Mexico’smainprioritiesistocontrib-
utetothestrengtheningofnationalsecu-
ritybycombatingcriminalorganizations.
This,inturn,refectsamajorobjectiveof
the 2007-2012 National Development
Plan:tocrippletheillicitproftsofthese
organizations.
Inrecentyears,theMexicanTaxAdminis-
trationServiceandMexicoCustomshave
dedicatedconsiderablefnancialandhu-
man resources to enhancing their pro-
grammestodetectillicitgoodsatports
ofentrythroughariskanalysisandintel-
ligencestrategy.
A valuable source to generate intelli-
genceistheadvanceinformationMexico
Customsreceivesonincomingmaritime
shipments.Furthermore,Mexicoiscom-
mittedtotheimplementationofPillar1of
theWCOSAFEFrameworkofStandards,
which entails the use of advance infor-
mationandriskmanagementsystemsby
WCOMembers.
Agoodexampleoftheeffectiveuseofrisk
analysis,basedonadvanceinformation
totargetpiratedandcounterfeitgoods,is
therecentseizuresthatwerecarriedout
atthePortsofLazaroCardenas,Manza-
nillo, Ensenada, Veracruz and Altamira
in2009;inthesecases,theportswere
alertedtothearrivalofsuspiciousship-
mentsbytheintelligenceunitatCustoms
headquarters.
s PeCi Al DOss i e R
33
Alsoin2009,in94of504targetedcon-
tainers,riskwasconfrmedandthegoods
seized. They contained approximately
1,053tonsofmerchandise,representing
morethan50%ofallpiratedgoodsseized
by Mexico Customs (33 million pirated
units).Theseunprecedentedseizuresin
2009werethedirectresultoftheuseof
Customsintelligenceandtheapplication
ofriskanalysisaswellastheactionstaken
bytheMexicangovernment.
TheTaxAdministrationServiceandMex-
icoCustomsarepermanentlycommitted
toenhancingtheirprocedures,infrastruc-
tureandtechnologyinordertoeffciently
fghtillicittrade.
More information
www.sat.gob.mx
Counterfeit brands in electronic goods (Duracell, Motorola, Sony, Sony Ericsson)
Counterfeit brands in apparel and accessories
(Lacoste, Puma, Abercrombie, Tous, Mont
Blanc, Hugo Boss)
agency operation. An important part
of the work of the analysts does not
requirethislevelofdetailthough.The
creationandupdateofriskproflesfor
useatbordercrossingpointsdoesnot
entailactualnameordetailedaddress
information.Similarly,fortheproduc-
tionofoverviewsofgeneraltrendsand
developments the coded information
providesasuffcientlevelofdetail.
TheJACisequippedwithindustrystand-
ardsoftwareforriskanalysisinlawen-
forcementenvironments,inadditionto
sophisticatedsoftwarefordatamining.
Staffhavecompletedadvancedtraining
ontheuseofthesoftwareaswellason
riskanalysis,strategicintelligence,ap-
pliedstatistics,thecollectionanduseof
opensourceinformation,andonreport-
ingandpresentation.
With the creation of the JAC and its
continued development, Bosnia and
Herzegovinaismakingsignifcantsteps
torationalizetheallocationofitsbor-
dermanagementresources.Theagen-
ciescontinuetoincreasethequalityand
quantityofdatafowingtoitsanalytical
structuresbyimprovingthecaptureof
data at the border, digitizing existing
archivesandfurtherstandardizingand
normalizingthestructureoftheirdata-
bases.AsMr.ErminPesto,Headofthe
SectorforBorderandGeneralSecurity
attheMinistryofSecuritysaid,“TheJAC
allowsustobettertargetourefforts,in-
creasingthesuccessrateofcheckswhile
facilitatingthelegitimatefowofgoods
andpeopleacrossourborders.”
More information
Richard Ots
International Organization
for Migration
rots@iom.int
WCO News – N
o
62 – June 2010
34 WCO News – N
o
62 – June 2010
Two Deputy Directors have recently been appointed
to the WCO Secretariat; Susanne Aigner in the
Compliance and Facilitation Directorate, and
Heike Barczyk in the Capacity Building Directorate.
WCO News conducted a speed interview with these
two new members of the management team.
Susanne Aigner:Istartedtoworkforcustomsbyaccidentas
aftermyDoctorateinlaw,Icouldn’tfndajobinanareaIwould
reallyhaveenjoyedworkingin,likeworkingforoneoftheas-
sociationsdefendingmigrants’rightsorpursuingdeveloping
countries’interests.TheAustrianMinistryofFinancewasat
thattimesearchingforwomenwhospokeEnglishandFrench,
inparticularforroleswithinthecustomsbranch.AsIdidnot
wanttotakeupajobwithalawfrm,IdecidedthatIwould
workforCustomsuntilIfoundsomethingelsemoretomylik-
ing.ThefunnythingwasthatIlikedCustomsworkfromthevery
beginning.Aftertheobligatory3yearsoftrainingandeduca-
tioninCustomsandtaxmatters,Iwasaskedtoworkforthe
MinistryofFinanceonInternationalmatters
andFreeTradearrangements,amongother
ontheGeneralSystemofPreferencesand
UNCTAD. After several years as Deputy
HeadofUnit,in1995ImovedtoBrusselsto
workfortheEUInstitutions,includingatDG
TAXUD’s“US/CanadaDesk”whichinvolved
responsibilityforthenegotiationoftheEC-
USAgreementonCSI.In2005,TAXUDset
up a special sector dealing with security,
whichIled,andwhichhadacentralrolein
draftingthecustomssecuritylegislationand
thedevelopmentoftheEUAuthorizedEco-
nomicOperator(AEO).Duringthistime,Iwasalsoresponsible
forthetechnicalnegotiationswiththirdcountrieslikeJapan,US
andChinatowardsmutualrecognitionofAEOs,securitymeas-
uresandcontrolresults.During2009,ImanagedtheUnitin
chargeofRiskManagementandSecurityandwhilecontinuing
toworkonsecurity/AEO,IpersonallyfocusedalotontheEC
RiskManagementFrameworkandSystemandtheConvergence
ofControlsactivitieswithintheEU.
Speed Interviews
Heike Barczyk:Well,inbrief:Myworklifestartedinthe90’s,
whenIworkedfortheGermanForeignServiceforthreeyears
(ofwhichIspentoneyearinSenegal).ThenIwentbacktouni-
versity,studiedlaw,passedtwonationalLegalStateExamsand
becamealawyer.AftertwoyearsofworkmainlyonLabourand
CommercialLaw,I“rediscovered”thePublicServiceandwentto
theCustomsCriminologicalOffce(ZKA)inCologne,Germany.
ThereIworkedfrstasHeadoftheAnti-DrugsSectionandlater
asHeadoftheRegionalIntelligenceLiaisonOffce(RILO)for
WesternEurope–myfrstdeeperexperiencewiththeWCO,by
theway.ThelastpostbeforemystarthereinBrusselswaswithin
theGermanMinistryofFinanceinBonn,whereIwastheDeputy
HeadoftheDivisiononInternationalCustomsCo-operation.
WCO News : What prompted you to
apply for your new post ?
S. A.: After more than 5 years in one job
and in particular after more than 8 years
ofworkingonsecuritymatters,Ifeltready
forachange.WhenthejobattheWCOwas
published, I thought this would be exactly
whatIwouldliketodoatthisstageofmy
career:moreinternationalthanmyEurope-
an-focusedactivity;evenmorechallenging
as I would have to cooperate with 176 in-
steadof27memberadministrations;while
atthesametimenotsomethingcompletelyunknowntome
asIhadbeenworkingonthesamefleattheCommissionand
asIwouldcontinuecooperatingwithmanyofthecolleaguesI
knewfrompreviousroles.Thenewrolewouldhoweverhavea
differentfocus,seeingthingsfromtheWCOangleandthusgiv-
ingmearangeofnewchallengingopportunitiesandhopefully
abroaderperspective.IalsothinkthattheDDjobwillallowme
tocontinuebuildinguponmyEUexperience,sharingthisexpe-
WCO News: Tell us about your career to date?
Susanne: My new role
would have a different
focus, seeing things from
the WCO angle and thus
giving me a range of new
challenging opportunities...
i n COnVe RsAT i On
Susanne Aigner (left) and Heike Barczyk (right)
35 WCO News – N
o
62 – June 2010
riencewithotherswhileenhancingmyownunderstandingof
Memberadministrationsandcustomspoliciesandprocedures
otherthanthoseoftheEU.Ihavealwaysenjoyedworkingwith
colleaguesfromdifferentpartsoftheworld,jointlyseeking
solutionstocommonissuesandIamthereforedelightedtobe
workinginaDirectoratewithverymanydifferentnationalities
fromalmostallcontinents.
H. B.:Ifelttheapplicationwouldbea“natural”stepforwardfor
me.Havingworkedintheinternationalareaforquiteawhile,
butmoreorlessfromanationalperspective,Iwantedtoexpand
mypersonalexperienceandworkattheWCOonamoreglobal
level.Inthiscontext,theCapacityBuilding
areaisinmyviewoneofthemostchal-
lengingtaskswithintheworkoftheWCO
inservingMembers’needs.Moreover,from
thepastIknewthattheteamoftheCa-
pacityBuildingDirectorateisaverygood
andhighlymotivatedone–whichwasob-
viouslyabonus,too.
WCO News: What are your short-term
objectives ?
S. A.: ThefrstthingIhavetodoistolearn
allabouttheareasIamresponsibleforasDD;thisIwillhaveto
doveryquicklyasIamalreadybeingsentonmissionduringthe
veryfrstdaysofApril.ThesecondthingIwanttodoisbuilda
strongrelationshipwithmyexcellentteam,todiscussandset
prioritiesandgoalsforthegroupandthenthroughmycollabo-
rativeleadershipstyleworktoensuretheissuesthatimpacton
thewholeoftheDirectorateareaddressedinatimely,joinedup
andcoordinatedmannernowthatbothDeputyDirectorposts
areflled.Therearemanycrosscuttingissues(likeCoordinated
BorderManagement,RiskManagementorGloballyNetworked
Customs)thattouchuponfacilitationaswellascompliance/
enforcement.Earlydiscussionssincemyarrivalshouldleave
youinnodoubttheDirectorandthetwoDeputiesareunited
intheirwishtoensurethattheDirectorateworksaseffciently
andeffectivelyaspossibleandisenabledtomakeprogresson
thesecrosscuttingissues.Fortherest,Iamsuretherearemany
challengeswaitingforme!
H. B.:IarrivedattheWCOsecretariatwhenwewerestillpre-
paringthreeimportantmeetingsintheCapacityBuildingarea
scheduledforAprilthisyear.Itwouldhavebeenthefrstmeet-
ingoftheC.B.Committeeever,themeetingoftheIntegrity
Sub-CommitteeandthemeetingoftheRegionalOffceson
C.B.(ROCBs)andtheRegionalTrainingCenters(RTCs).Unfor-
tunately,duetothevolcaniceruptioninIcelandandthestopof
airtraffctoandfromNorthernEuropeatthattime,thesemeet-
ingshadtobepostponedattheverylastmomenttoautumnthis
year.Obviously,workingonthepreparationsforthesemeetings
andmakingmypersonalcontributionthatthemotivationofthe
participantsofthemeetingsremainsasvividasdemonstrated
then,isofcourseoneofmyprimaryworkobjectives.
Onamoreprivatebasis,IstillhavetosettleinhereinBrussels.
AndIwouldliketoimprovemySpanishlanguageskillswhich
havenotreallybeentrainedsincemyschooltime…
WCO News : If you had to change career, what job
would you choose ?
S. A.: IfIhadtochangecareerotherthanbuildinguponmyexpe-
riencegainedsofar(andthusremainingeitherintheCustomsor
tradearea),Iwouldliketodosomethingtotallydifferent.During
my studies, I used to work in an art gal-
leryandalsofororganizersofconcertsof
contemporaryclassicalmusic.Iorganized
exhibitionsandconcertsandalsoselected
artistsforexhibitions/concertsonspecifc
themesaspartofajuryorascurator.If
moneydidn’tmatteratall,Iwouldtryto
dosomethingsimilarandorganiseexhibi-
tionsandconcerts,inparticularforyoung
artistswhoareoftenexcellentbutarenot
givenanyopportunitytoshowtheirwork.
WhenIwasyoungerIwantedtobeonthe
stageintheatre;Itrieditandseemedto
havesometalent.IamhoweverhappythatIneverpursuedthis
anyfurtherandthatallIdonowadaysisenjoyperformancesby
otheractors.Anyway,don’tweallacttoacertainextentwhen
wechairmeetingsandnegotiateagreements?
H. B.:Amongfriends,wehavefromtimetotimeaskedourselves
whatwewouldhavelikedtobecomeifwehadnottakenthe
careerpathwehavetaken.Oneofmyfavouriteanswersisthat
Icouldhavebecomea–hopefullysuccessful–archeologist…
Inreality,ifIhadtochangemycareerrightnow-awayfrom
Customs,theinternationalareaandthePublicService,IthinkI
wouldmostprobablybecomealawyeragain.
O. A.: And one fnal thought ….
S. A.: IamveryhappythatIamworkingasDDEnforcementat
WCO;forthetimebeingIenjoyeverydayandthinkthatIcan
activelycontributetotheorganization’sworkandeffciency.
Ihopeitstayslikethisandthatmystaffandtheorganization
morewidelyseeitinasimilarlight!
H. B.:Iammorethanhappythatthehypotheticalquestionbe-
foredoesnotdescribemypresentsituation…,butthatright
nowIcanreallylookforwardtosomeexcitingyearsandwork
tocomeintheWCO!
More information
www.wcoomd.org
Heike: Having worked in the
international area but more or
less from a national perspective,
I wanted to expand my personal
experience and work on a more
global level..
i n COnVe RsAT i On
36 WCO News – N
o
62 – June 2010
T
he Brazilian Customs administra-
tion (Receita Federal do Brasil)
has announced the establishment of
new detector dog centres in six impor-
tant Customs units. The use of detec-
tor dogs will align the administration
with global best practices on combat-
ing illicit acts related to foreign trade
operations, in particular the traffc in
illegal drugs and unauthorized posses-
sion of currency.
Toensurethesuccessofthetrainingpro-
gramme,instructorshavetoselectdogs
thatareatleast18monthsoldandwho
display drive, good physical resistance
and lots of energy. Once selected, the
animals will be evaluated periodically
tofullytesttheirability.Uponreaching
theageofseven,thedogswillberetired
from service. Those who demonstrate
excellent natural skills when perform-
ingtheir“duties”willbesingledoutfor
breedingpurposes.
Usingsnifferdogshasprovedsuccessfulin
Brazil.Majorseizuresinthelasttwoyears
includetheseizureof630kgofcocaine
atthePortofImbitubain2008,300kg
ofdrugsinVictoriaandRiodeJaneiroin
2009,and1.5tonsofcocaineboundfor
EuropeatthePortofParanaguá.Inthe
stateofParanáalone42kgofcrack,3.8
tonsofcocaine,and3tonsofmarijuana
Brazil sets up new detector
dog centres
offoreignoriginwereseizedin2009by
Customsstaff.
More information
waltoedson.arruda@receita.fazenda.
gov.br
OUR Me MBe Rs WORl D
©BrazilianCustoms
©BrazilianCustoms
©BrazilianCustoms
37 WCO News – N
o
62 – June 2010
C
ontinuingitsmodernizationefforts,
theAlgerianCustomsadministration
hasintroducedanewfacilitationmecha-
nism granted to economic operators,
designed to encourage investment and
promote economic activity. This is be-
ingdoneinaccordancewiththeRevised
KyotoConvention,whichhasbeenratifed
byAlgeria.
To promote this new procedure and to
perfectthetextoftheimplementingleg-
islation,on4March2010AlgerianCus-
toms organized a “Customs-Business”
meetinginAlgiersattheHeadquartersof
ALGEX(Algerianexternaltradepromo-
tionagencyoverseenbytheTradeMinis-
try).Inadditiontoexternalcontributors,
this meeting brought together senior
Customsoffcials,managersofcompanies
involvedinOPTIMEXPORT(aprogramme
designedtobuildtheexportcapacitiesof
Algeriansmallandmediumbusinesses),
employersorganizationsandbusinesses,
andpartnersofALGEXandCACI(Algerian
ChamberofCommerceandIndustry).
Following speeches by ALGEX Director
GeneralMohammedBennini,TradeMin-
isterElHachemiDjaâboub,andDirector
General of Customs Mohamed Abdou
Bouderbala, a “Customs-ALGEX-CACI”
Agreementwassigned.Itsaimistopro-
moteexports,apartfromhydrocarbons,
andtoestablishalastingpartnershipso
astoguaranteethesuccessoftheAEO
status.
Themeetingwasmarkedbymanyinter-
esting contributions covering the new
AEOstatusaslaiddownintheAlgerian
CustomsCode,theproblemofcommuni-
cationinbusinesslife,AEOstatusonthe
basisofFrenchandthewiderEuropean
experience,andtheprioritiesoftheOPTI-
MEXPORTproject,aswellastestimonies
fromtwoAlgerianentrepreneursontheir
relationswithCustoms.TheSecretariat
made a presentation with the theme
“Modernvaluesattheserviceofadynam-
icandeffcientCustoms-Businesspart-
nership”.Onthefringesoftheplenary,a
workshopcomposedofCustomsoffcials
andrepresentativesofthebusinessworld
debatedissueslinkedtothelaunchofthis
newapproachtobusinesses.
Participants formulated recommenda-
tionsdesignedtoallowCustomsandits
partnerstodevelopandstrengthenthis
partnershipthroughconcretemeasures.
They believed in particular that it was
necessary to establish the “Customs-
Algerian Customs: the value of modernization
to export promotion
ALGEX-CACI” Agreement
at regional level, bring-
ingtogetherallconcerned
stakeholders,tostrengthen
communication between
Customs and business at
the national and regional
levels, to facilitate access
to information and to of-
ficial documents, and fi-
nallytotakeaccountofthe
concernsofstakeholdersin
order to achieve solutions
which were advantageous
to all sides and respected
theinterestsofall.
The Customs- Busi ness
partnership established at
thismeetingwilltranslate
intotheestablishmentofa
consultationbodyrespon-
sible for agreeing on the
termsoftheapplicationfor
AEOstatusandtheawardcriteria.Eve-
ryoneexpressedtheirsatisfactionwith
themeasurestakenbyCustomsasthey
fall within the scope of its moderniza-
tionstrategyanddemonstrateAlgerian
Customs’ evolution towards a service-
orientedorganizationdeliveringbenefts
toeconomicoperators.
More information
www.douane.gov.dz
OUR Me MBe Rs WORl D
©BrazilianCustoms
©BrazilianCustoms
38 WCO News – N
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62 – June 2010
APublicRelationsUnithasbeenes-
tablishedtoserveasaSecretariatfor
theCPPMinitsdailyoperations.The
CPPMconsistsoftwohierarchicallev-
els:aManagementBoardandthree
Technical Working Groups. These
workinggroupsarecharacterizedby
types of investments and industry
sectors:theCustomsExport-Orient-
edGarmentIndustryWorkingGroup;
theCustomsExport-OrientedNon-
Garment Industry Working Group;
andtheCustomsDomesticMarket-
OrientedBusinessWorkingGroup.
Although the Cambodia Develop-
ment Council (CDC) organized the
Government-PrivateSectorForum
(GPSF) with fruitful outcomes un-
dertheleadershipofSamdechAkka
Moha Sena Padei Techo Hun Sen
(the PrimeMinisteroftheKingdom
ofCambodia),astherewasnofor-
mal mechanism in the past some
Customs-relatedissuesidentifedin
theForumhadnotbeenconsulted
or solved effciently at the techni-
cal level before being brought to
theGPSF.
TheGeneralDepartmentofCustoms
and Excise expects that this new
mechanismwilldealmoreeffcientlywith
many Customs-related issues and mis-
understandings,especiallywithregards
tocargoclearanceprocedures,informal
costsandunnecessarydelays.
More information
cheasamnang@hotmail.com
O
n International Customs Day in
PhnomPenh,theCustoms-Private
Sector Partnership Mechanism (CPPM)
wasestablishedforthefrsttimeinCam-
bodia’shistorywiththeapprovalofthe
RoyalGovernmentofCambodia.Theof-
fciallaunchwaspresidedoverbyH.E.Dr.
PenSiman,DelegateoftheRoyalGovern-
mentofCambodia,DirectorGeneralof
CustomsandExciseandalsoChairperson
oftheCPPM.
This historical event was attended by
the Management Board of the General
DepartmentofCustomsandExciseand
representativesoftheprivatesectorin-
cludingtheChairpersonsoftheCambo-
diaChamberofCommerce,theGarment
ManufacturingAssociationofCambodia,
theSmallandMediumEnterpriseAssocia-
tion,thedeveloperandinvestorsofthe
Special Economic Zone, the Transport
Association,theFreightForwarderAsso-
ciation,somelargetaxpayers,andhigh
compliancetraders.
ThemainpurposeoftheCPPMistoraise
awarenessamongallstakeholders,toac-
celeratebettercooperation,andtoensure
effcienciesintheimplementationofthe
Government’s trade facilitation policy
andalsothepolicyoftheWCO,especially
theWCOSAFEFrameworkofStandards.
CPPM’sobjectivesinclude:
• Building trust, mutual understand-
ing, and cooperation between Cus-
toms and the private sector.
• Promoting fscal morality and trade
facilitation in order to enhance com-
pliance with laws and regulations.
• Ensuring that all Customs-related
issues are consulted or solved at
the CPPM before they are brought
to other mechanisms, such as the
inter-government body or the Gov-
ernment-Private Sector Forum.
• Promoting private sector participa-
tion, to the greatest possible extent,
in the process of solving all Cus-
toms-related issues.
TheunderlyingideaistoenhancetheCus-
toms-privatesectorpartnership,which
willpromoteapolicyofopenness,and
encouragetheexchangeofideasbetween
Customsadministrationsandprivatesec-
tor stakeholders in order to efficiently
facilitateinternationaltrade,andensure
globalsafetyandsecurity.
Cambodia’s Customs-private sector
partnership mechanism
Question-Answers session
The Customs Management Board and private sector representatives
Offcial launch
Networking
OUR Me MBe Rs WORl D
39 WCO News – N
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62 – June 2010
Malaysia’s “Megaport Initiative”
S
inceNovember2009,the“Megaport
Initiative”toscreencargocontainers
todeter,detectandinterdictillicittraf-
fckinginnuclearandotherradioactive
materialshasbeenoperationalatKlang
PortinMalaysia.Theagreementtoim-
plementthisInitiativewassignedon27
February 2008 and prior to the com-
missioning, 16 senior Customs officers
receivedMegaportInitiativetrainingin
WashingtonDCinJan2009.
TheinitiativeisaprogrammeoftheU.S.
DepartmentofEnergy’s(DOE)National
NuclearSecurityAdministration(NNSA).
ItisakeycomponentoftheSecondLine
ofDefense(SLD)programmeundertaken
topreventtheproliferationofnuclearma-
terialsfollowingthecollapseoftheSoviet
Unionin1991andthesubsequentendof
theColdWar.
Through the Megaport Initiative, DOE
workscollaborativelywithforeigngov-
ernments to equip selected sea ports
withradiationdetectionequipment.The
installationofequipmentandtrainingof
the host country personnel is provided
byDOE.Aftercommissioning,theequip-
mentishandedovertothehostgovern-
mentandtheprogrammeisfullyoperated
bypersonnelofthehostcountry.
Allcontainers–whetherforimport,ex-
portortransshipment–arescannedusing
theRadiationPortalMonitor(RPM)inte-
gratedwithOpticalCharacterRecognition
(OCR)systems(toidentifythecontainer
number).ASecondaryInspectionStation
issetupateachterminaltocarryouta
morethoroughinspectionusingAdvance
SpectroscopicPortals(ASP)andhandheld
radioactiveisotopeidentifcationdevices
andotherhandheldequipment.ACentral
AlarmStation(CAS)servesasthecontrol
andcommunicationcentre.
ImplementationoftheMegaportsInitia-
tivewillenhancetheTerminalOperator’s
compliancewiththeInternationalShip
and Port Facility Security (ISPS) Code
andmakePortKlangasaferport,which
iscrucialinturningitintoaregionalhub.
Inthefrstthreemonthssincethecom-
missioningandhandingoveroftheequip-
ment in Malaysia, a total of 849,599
containerswerescreenedbyaradiation
portalmonitorlocatedinstrategicareas
intheportand13,118containerstriggered
primaryinspectionalarms.However,sub-
sequentevaluationsrevealedtheabsence
ofnuclearmaterialsotherthannaturally
occuringradioactivematerials.
TheMegaportInitiativewasestablished
in2003bytheUS;atpresent19portsare
alreadyoperational,25portsareinthe
implementationphase,andover25ports
arependingfornegotiation.
More information
Razif Abbu
rza9906f@yahoo.com
OUR Me MBe Rs WORl D
©MalaysiaCustoms
©MalaysiaCustoms
©MalaysiaCustoms ©MalaysiaCustoms
40 WCO News – N
o
62 – June 2010
l A Vi e De s Me MBRe s
Centre for Customs and Excise Studies
University of Canberra
Australia
Knowledge Beyond Borders
WCO Accredited Courses
Master of International Customs Law and Administration •
Master of Customs Administration •
Graduate Diploma in International Customs Law and Administration •
GraduateCertifcateinInternationalCustomsLawandAdministration •
GraduateDiplomainExciseStudies •
GraduateCertifcateinExciseStudies •
customs.centre@canberra.edu.au
www.customscentre.canberra.edu.au
Australian Government Registered
Higher Education provider # 00212K
Full time and part time enrolments now being accepted
Study online or on campus
Research •
Consultancy •
Vocational Programs •
Postgraduate Programs •
41 WCO News – N
o
62 – June 2010
ZOOM
Colombia’s Directorate of National
Tax and Customs
T
he Directorate of National Tax and
Customs (DIAN) in Colombia is re-
sponsibleforprovidingacomplianceand
facilitation service vis-à-vis economic
operatorsinorderfortax,Customsand
exchange-rate system rules to be met.
DIANaimstocollectalltaxes,expedite
foreigntradeoperations,andencourage
faircompetition.
Transforming the organization
TheDIANmanagementteam,whichwas
appointedatthestartofthefrsttermin
offceofÁlvaroUribe,thePresidentofthe
Republic,observedacutestructuralprob-
lemsintheorganization.Theseproblems
werecreatinginsurmountablediffculties
withrespecttotheachievementofthe
institution’smission.
Anauditoftheorganizationwascarried
out,makingitpossibletostartonaco-
herentsolutiontotackletheproblems.
Roadmapsweredrawnuptoachieveex-
cellenceintermsofoperation,tomake
theorganizationmoreservice-oriented,
toconsolidateautonomyandlegitimacy,
andtocontributetothecountry’scom-
petitiveness. In addition, the following
strategicactionswereidentifed:develop
andimplementanewmanagementmod-
el;restructuretheorganization;promote
thelegalreformsrequired,andeffectively
manageconditions.
A new management model
DIAN founded its management model
–theSingleModelforRevenue,Service
andAutomatedControl(ModeloÚnicode
Ingresos,ServicioyControlAutomatizado
–MUISCA)–onthebasisofconcerted,
coordinatedandorderlymanagementof
processes,peopleandtechnology.These
pillars are fundamental to its manage-
ment,aswellascriticalanddecisivefac-
tors in its efficiency and effectiveness
and,consequently,initsproperperform-
anceofitsrolewithintheState.
MUISCA is based on three strategic
principleswhichunderpinitandlendit
strength:integration,unity,viabilityand
magnitude.Itspurposebeingtopromote
theadoptionofbestpracticeatalllevels
intheorganization,forexample:
• Coordinatetheorganization’splanning
andoperationinitsstrategy.
• Review, tailor, simplify, measure and
monitorprocessesandprocedureswith
theaimofattainingthehighestlevels
ofexcellenceandquality.
• Promotethetechnologicalchangesup-
portingDIANprocesses,withaviewto
sustainabilityandmasscoverage.
• Cultivateandmanageknowledge,hu-
mantalentandchangeintheorgani-
zation.
DIAN moves forward
Thefollowingkeyfactorsarehighlighted
astheyunderpinthesuccessoftheMUIS-
CAmanagementmodel:
• The backing of senior management
withintheorganizationaswellaswithin
nationalgovernment,andthesupport
of the World Bank which backed the
projectandindeedapprovedanewloan
tocontinuewiththedevelopmentof
outstandingtopicsuntil2012.
• DIANoffcialswhowereexpertsonthe
processes involved and familiar with
theneedsoftheorganizationwerein
charge of identifying and developing
the procedures provided through IT-
basedelectronicservices,assistedbya
groupofconsultants.
• Implementationtookplaceintandem
with a support and assistance pro-
grammeforthepublic.
• IntermsofCustomsmatters, follow-
ing the international guidelines of the
World Customs Organization was vi-
tal as it enabled DIAN to be inside
Customs with greater visibility at the
international level.
• The joint work with the Ministry of
External Trade and the bodies which
grant approvals in import /export
processes was also important – the
Single Window for External Trade
and the Single System for Simulta-
neous Inspection have been consoli-
dated with these bodies, using the
concept of the “procedural chain”.
MUISCAhasenabledtheDirectorateofNa-
tionalTaxandCustomstomoveforward.
Contacts
Director General of National Tax and
Customs
Dr. Néstor Díaz Saavedra
Tel:+5716079325/9475
Fax:+5716079383
Email:direcciongeneral@dian.gov.co
DirectorofOrganizationalManagement
Ms. María Elena Botero Mejía
Tel:+5716079999
Email:mboterom1@dian.gov.co
Website:www.dian.gov.co
42 WCO News – N
o
62 – June 2010
Overview
Culturalheritageisthelegacyoftangibleartworksthatexpress
thevalueofacultureandthecharacteristicsofasociety.For
everynation,culturalheritagerepresentsafundamentalsource
oflife,civilizationaswellasauniqueassetforitsfuture.Through
thepreservationandpromotionoftheirnationalculturalprop-
ertyandheritage,societiestransfertheirownidentityontofu-
turegenerations.
Itisvitalthereforetoprotectculturalitemsfromany
attempttocompromisetheirintegritybyputtingin
placeallneededmeasurestopreventcrimessuchas
theft,lootingorillicittraffcking.Infact,onceapiece
ofhistoryornationalidentityislost,inmostcasesit
islostforeverandthedetrimenttohumanityisoften
incalculable.Thetruevalueofculturalpropertycanbe
appreciatedonlyifconditionssuchasorigin,traditionand
historyarefullyrespectedandsafeguarded.Eachtimea
culturalobjectistakenfromitsoriginalcontext,notonly
doesitcreateavoidinacountry’snationalheritagebut
theartifactitselfisseriouslyimpoverished.Inthissense,
thetheftandtraffckingofculturalitemsrepresentsone
of the oldest forms of crime and is a scourge as old as
historyitself.
The ongoing increase in the illicit trafficking in cultural
goodsandthedamagecausedbythistradeisofgreatcon-
cerntotheglobalCustomscommunityandtheroleofCustoms
infghtingthisformofcross-bordercrimeisrecognizedasbeing
ofparamountimportance.Indeed,preservingculturalheritage
andstemmingillicitphenomenaliketraffckingandsmuggling
transcendsborders,andasaprimaryborderagency,Customsis
well-placedtofghtcriminalorganizationstraffckingartaswell
aslooters,smugglersandunscrupulousartdealers.
International efforts
Over recent years, the WCO has strengthened inter-
national cooperation with other important players
involvedinthisbattleinordertoimproveandaug-
menttheprotectionofculturalpropertyagainstillicit
importsandexports,andillegaltransfersofownership.
IthasdonethisonthebasisofMemorandaofUnder-
standingsignedwithINTERPOL,UNESCO,andICOM(In-
ternationalCouncilofMuseums).TheWCOisalsoactively
involvedinworldwideprojectsandcapacitybuildingactivi-
tiesaimedatraisingenhancedawarenessanddeveloping
effectiveenforcementtoolsspecifcallyrelatingtothe
protectionofculturalheritage.
In 2005, the WCO provided technical assistance to
UNESCObyjointlydevelopingtheWCO-UNESCOModel
ExportCertifcateforCulturalObjects.Thisjointworkre-
fectedtheincreaseinillicitexportsofculturalobjects,ef-
fortstoaddressthelegalaspects,andputnewemphasison
Customs and cultural property:
keeping heritage criminals at bay
f OCUs
Small statuette from Bactria, chlorite and calcite, 3
rd
millennium BC. Anthropomorphic pendant, Diquís, Costa Rica, 1000-1500 AD.
Bronze foundation fgurine, end of the 3
rd
millennium BC. Iraq Museum.
©AgencephotographiquedelaRMN–Chuzeville ©DirkBakker,DIA-FS
©PhotoScala,Florence
43 WCO News – N
o
62 – June 2010
f OCUs
thepracticalimportanceofexportcertifcates
designedspecifcallyforculturalgoods.This
certifcateimplementstheprovisionsofAr-
ticle6oftheUNESCOConventiononthe
MeansofProhibitingandPreventingtheIl-
licitImport,ExportandtransferofOwner-
shipofCulturalPropertyof1970.TheArticle
requiresUNESCOmembers“tointroducean
appropriatecertifcateinwhichtheexporting
statewouldspecifythattheexportofthecultural
propertyinquestionisauthorized”.
TheadoptionatnationalleveloftheWCO-UNESCOModelEx-
portwillhelptosecurethereturnofillicitlyexportedcultural
objectsastheCertifcateenablesCustomstoidentifyandtrace
theseitems.
CooperationwithICOMisextremelyimportantalso.TheirRed
Listsofendangeredculturalobjects(seearticlepage44)rep-
resentausefultooltohelpmuseums,arttraders,collectors,
andCustomsandpoliceoffcerstoidentifyobjectsthatmay
havebeenillegallyexportedormaybesubjecttoillicittrade.
TheWCO’spartnershipwithINTERPOLentailsWCOparticipa-
tioninINTERPOL’simportantExperts’GrouponStolenCultural
Propertythatmeetsonanannualbasisandwhichsetsoutrec-
ommendationsonhowtobettertacklethisillicitphenomenon.
TheWCOwillcontinuetointensifyitspresenceontheglobal
stagebyparticipatinginmanydifferentforaandeventsdedi-
catedtotheprotectionofculturalheritage.
Cooperation bares fruit
Cooperativeeffortsarejustasimportantinthefghtagainstthe
illicitcross-bordertradeinculturalproperty.
Attheregionallevel,forexample,theWCORegionalIntelligence
LiaisonOffceforEastandEasternEurope(RILOECE)iscurrently
runningavaluableinitiativenamed“ProjectObelisk”aimedat
savingtheregion’sculturalheritage.ItwasinitiatedbyRILO
ECEin2002toactivelyencouragecountriesintheregionto
detectillegaltraffckingofworksofartandreportseizuresto
theCustomsEnforcementNetwork(CEN)database.TheProject
willstrengthentheactivitiesofCustomsservicesandimprove
cooperationbetweenthemandotherrelevantlawenforcement
agenciesintheregion.
Asacasestudy,let’sconsiderItalyforinstance.Withmorethan
3400museums,2100archeologicalareasand43UNESCOworld
heritagesites,Italyhastheworld’svastestculturalheritage.Its
Customsandborderagencies(AgenziadelleDoganeandthe
GuardiadiFinanza)areengagedonadailybasisinprotectingthe
country’sculturalheritagefromanykindofillicitexportation.
Ontheotherhand,Italyisalsobeneftingfromthecoordinated
actionsofotherCustomsadministrationsespeciallywithregards
totherepatriationandreturnofculturalobjectsil-
legallyexported.Justbywayofexample,effective
cooperationbetweenCustomsled,twoyearsago,
totherepatriationtoItalyof50vasesdatingfrom
the3
rd
tothe4
th
centuriesBC.Thesevaseswere
seizedinPerpignanin2007byFrenchCustoms.An-
otherexampleisthereturnofstolenartifactstoItaly
bytheU.S.ImmigrationandCustomsEnforcement(ICE)
in2009.AmongtheculturalobjectsreturnedtotheItalianau-
thoritiesbyICEwereaCorinthiancolumnkraterdatingbetween
580and670BCandaPompeiwallpanelfresco.
Keeping up the fght
CulturalHeritagewillcontinuetorepresentapriorityforthe
WCO.Ascriminalsinvolvedinculturalheritagecrimeschange
theirtactics,newformsofcooperationaswellasnewenforce-
menttoolswillhavetobedevelopedinordertocombatthis
phenomenonandpreservethecharacterofourculturallegacy
andthereforeournationalidentities.Capacitybuildingtoohas
animportantroletoplay.BybuildingthecapacityofCustoms
Painting, archangel with harquebus, 18
th
century AD.
Indo-Greek silver coin, 2
nd
century BC.
©MNAAHP
©KabulNationalMuseumandFrenchNationalLibrary
44 WCO News – N
o
62 – June 2010
f OCUs
administrationstoeffectivelycombatthisformofcrimewill
resultinbetterborderenforcement;essentialinthefghtagainst
allformsofillicittrade.
Equally important is the improvement of relations between
Customs authorities and between Customs and its various
stakeholdersincludingotherlawenforcementagenciesandthe
T
heInternationalCouncilofMuse-
ums (ICOM)haspublisheditsRed
ListofEndangeredCulturalObjectsof
CentralAmericaandMexico(2009),
theseventhRedListinICOM’spro-
grammetocombatillicittraffcking
inculturalproperty.
TheRedListshavebeendesignedas
anaidtoidentifycategoriesofcul-
turalitemswhichareparticularly
vulnerabletoillicittraffc.Theyare
disseminatedtoCustomsauthori-
tiesworldwideandarealsoavailableon-
lineinseverallanguagesatICOM’swebsite.
ICOMhasalreadypublishedRedListsforthefollowingcountries
andregions:
· RedListofAfricanArchaeologicalObjects(2000)
· RedListofLatin-AmericanCulturalObjectsatRisk(2002)
· EmergencyRedListofIraqiAntiquitiesatRisk(2003)
· RedListofAfghanistanAntiquitiesatRisk(2006)
· RedListofPeruvianAntiquitiesatRisk(2007)
· RedListofCambodianAntiquitiesatRisk(2009)
· RedListofEndangeredCulturalObjectsofCentral America
and Mexico (2009)
Police and Customs authorities are encouraged to carry out
in-depthinvestigationswhendealingwithculturalartefacts
identifedinRedLists.However,theseListsdonotpretendto
beexhaustiveandanyculturalitemwhichmaycomefromthe
regionand,ingeneral,fromacountryorregionforwhichaRed
Listhasbeenpublished,shouldbesubjectedtodetailedscrutiny
andprecautionarymeasures.
Threenewprojectsareunderwayforpublishingin2010,cover-
ingHaiti,ColombiaandChinarespectively.
More information
http://icom.museum/redlist
About the Red Lists
Gold stupa-shaped reliquary, 1
st
century AD. Leather-bound manuscript, Guatemala, 19
th
century.
©MCD-MLA
©TrusteesoftheBristisMuseum
businesscommunityasthiswillallowformoreexchangeof
informationandintelligencewhichisthekeytosuccessful
borderenforcement.
More information
enforcement@wcoomd.org
http://portal.unesco.org/culture/en
INTERPOL steps up its fght
against traffcking in cultural
property
D
espitetheglobalfnancialcrisisandits
repercussionsontheartmarket,illegal
tradeinculturalpropertycontinuestofour-
ishworldwide.
A very specifc crime
Informationontheftsofworksofartrecord-
eddailybyINTERPOL,andtheINTERPOL
Unitspecializedinthisfeld,illustratethe
permanenceofaphenomenonwhichspares
noregionoftheglobe,fromLatinAmerica,
victimofthearchaeologicalpillageofsites
whichexistedlongbeforeColumbus,toCen-
tralandEasternEurope,withthedisappear-
anceoficonsfromOrthodoxchurches,andAsiawithattackson
theheritageoftheKhmercivilization.
Theftsgivenwidermediacoverage,suchasthearmedrobbery
ofaMagrittepaintingfromamuseumontheoutskirtsofBrus-
sels(Belgium)inSeptember2009,ormorerecentlyofaDegas
pastelinMarseille(France)atthebeginningof2010,remindthe
worldoftheexistenceofthisveryspecifccrime.
Twiceayear,moreover,INTERPOLissuesaposteron“TheMost
WantedWorksofArt”toraisepublicawarenessofsixkeystolen
works(see photo above).
Need for an international data base of stolen
works of art
Tocounterthisscourge,INTERPOLhasdevelopedadatabase
integratingphotographsanddescriptionsofworksofartsto-
len from the four corners of the globe. This now catalogues
over35,000itemsandisconstantlyupdatedbyINTERPOL188
Membercountries.Incontinuousevolutionsinceitwas s e t
upin1995,thisdatabasehasnowmadeamajorstep
forward,havingbeenopenedtothepublicsinceAu-
gust2009.
Thisinitiative,crucialtoanyattempttofght
theillegaltradeinstolenarteffectively,per-
mits not just law enforcement services but any
otherinterestedpartytoconsulttheinformationin
thedatabasedirectlyandinstantaneously.
Toobtainonlineaccesstothedatabase–www.In-
terpol.int/Public/WorkOfArt/dbaccess.asp–users
mustfrstregisterandbegivenapassword.On-
lineaccessconstitutesanextremelyimportantstep
forwardasitofferseveryoneanopportunityto
verifythataworkofarthasnotbeenreported
stolen,atthesametimemakingitmoredif-
fculttosellfakeculturalproperty.
Whatismore,itisnowdiffcultforanysellerorbuyertoargue
thatitisimpossibletoverifywhetherornotanobjecthasbeen
registeredasstolen.Thesuccessexperiencedbythedifferent
stakeholdersinvolvedinfghtingtraffckinginstolengoodsdem-
onstratesinhindsightjusthowvitalthisstepwas.Sofaraccess
hasalreadybeengrantedtomorethan1,300usersin60ormore
countries,andthisfgureisgrowingallthetime.
Allsectorsofactivitywithaninterestinthisissuearerepre-
sented:lawenforcementagencies;headsofculturalinstitutions;
artmarketprofessionals;andevenprivatecollectors.Thiswide
rangenaturallyincludesCustoms,with40orsorepresentatives
fromaround20countriesondifferentcontinents.
ThisinvolvementbyCustomsauthoritiesrefectsthekeyrole
playedbyCustomsadministrationsinthefghtagainstunau-
thorizedexportsofculturalproperty,withnumerousobjects
seizedonaregularbasis.
Foritspart,theWCOworkscloselywithINTERPOL,
andhasdonesoformanyyearsinfghtingthistype
ofcross-bordercrime–amoregeneralCooperation
AgreementhaslinkedthetwoOrganizationssince
November1998.
Quiteapartfromthenewsteptakeninmakingthe
databaseaccessibleonlinetoawiderpublic,otherprojects
arecurrentlyunderwaytoimprovetheeffciencyandper-
formanceoftheINTERPOLdatabaseevenmore.
Onthetechnicallevel,forinstance,thereareplanstouse
asystemofrecognitionbasedonimagesimilaritiesto
facilitatesearchesinthedatabase.
OMD News – N
o
62 – June 2010 45
Saint Michael Archangel, Mexico, 18
th
century.
©R.VelascoAlonso,INAH
f OCUs
Painting by Picasso, 1938, stolen in March 1999
in France
©INTERPOL

- En cas de découverte ou de renseignements concernant ces affaires, prière d’aviser les services de police qui informeront leur B.C.N. INTERPOL.
- Should any of these items be discovered or any information concerning these cases become available, please inform the police who will contact their INTERPOL NCB.
Publié par INTERPOL - Published by INTERPOL - B.P. 6041 - 69411 LYON CEDEX 06 (FRANCE)
N°39 (b)
December
Décembre 2009
1 2 3
OBJET : Paire de vases
ITEM: Pair of vases
AUTEUR : Inconnu
ARTIST : Unknown
DATE DUVOL : Entre le 12 août et le 1er septembre 2009
DATE OF THEFT : Between12 August and1st September 2009
B.C.N. :
NCB : PARIS
N° de dossier : 2009/31393 File No. :
LIEU DUVOL : Palais
PLACE OF THEFT : Palace
DIMENSIONS : Hauteur / Height : 60 cm
OBJET : Tableau
ITEM: Painting
AUTEUR : Ignacio de Ries ARTIST :
DATE DU VOL : Entre le 12 février et le 24 mars 2008
DATE OF THEFT : Between12 February and24 March2008
B.C.N. : MADRID NCB :
N° de dossier : 2009/25976 File No. :
LIEU DUVOL : Transport public
PLACE OF THEFT : Public transport
DIMENSIONS : 112.1 x 136.8 cm
OBJET : Antéfxe
ITEM: Ante-fxae
AUTEUR : Inconnu
ARTIST : Unknown
DATE DUVOL : Entre le 21 et le 22 juillet 2009
DATE OF THEFT : Between 21 and 22 July 2009
B.C.N. : VIENNE
NCB : VIENNA
N° de dossier : 2009/30068 File No. :
LIEU DUVOL : Site archéologique
PLACE OF THEFT : Archaeological site
DIMENSIONS : 21 x 19 x 2 cm
6
OBJET Sculpture ITEM
AUTEUR : Inconnu
ARTIST : Unknown
DATE DUVOL : Entre le 18 et le 19 septembre 2009
DATE OF THEFT : Between 18 and 19 September 2009
B.C.N. : NEW DELHI NCB :
N° de dossier : 2009/32911 File No. :
LIEU DUVOL : Temple
PLACE OF THEFT :
DIMENSIONS : 90 x 56 cm
4
OBJET : Statue ITEM:
AUTEUR : Inconnu
ARTIST : Unknown
DATE DUVOL : 1er janvier 2008
DATE OF THEFT : 1st January 2008
B.C.N. : SAN SALVADOR NCB :
N° de dossier : 2009/36884 File No. :
LIEU DUVOL : Eglise
PLACE OF THEFT : Church
DIMENSIONS : 115 x 45 x 32 cm
5
OBJET : Tableau
ITEM: Painting
AUTEUR : René Magritte ARTIST :
DATE DUVOL : 24 septembre 2009
DATE OF THEFT : 24 September 2009
B.C.N. : BRUXELLES
NCB : BRUSSELS
N° de dossier : 2009/31315 File No. :
LIEU DUVOL : Musée
PLACE OF THEFT : Museum
DIMENSIONS : 60 x 80 cm
46 WCO News – N
o
62 – June 2010
ThisiswhyINTERPOL,alongsideUNESCO,ICOM
andtheWCO,ishelpingtomobilizetheinterna-
tionalcommunitytoensurethepreservationof
Haitianculturalproperty.
ThealertspromptlysentouttoallMembercoun-
triesafterthecatastrophe,tomakethemaware
ofthevulnerabilityofHaitianheritageandthe
risksofillegalimportsofculturalpropertyfrom
thiscountry,wereoneofthefrstresponsesto
countertheurgencyoftheproblem.
The imminent publication, under the aegis of
ICOM,ofaRedListofat-riskHaitianculturalproperty,likethe
listsdrawnupforCambodiaandAfghanistan,alsodemonstrates
thegravityofthesituation.
Finally,themobilizationoftheinternationalcommunityissoon
tobeformalizedbythesettingup,atUNESCO’sinitiative,ofan
internationalcoordinatingcommitteeforHaitianculturetowhich
INTERPOL,inclosecollaborationwithitspartners,willbeoffer-
ingitsexperienceandknow-howincrisismanagementmatters.
More information
www.Interpol.int
woa@Interpol.int
s.thefo@Interpol.int
Oneofthemostimportantobjectivesisbasedon
aCouncilofEuroperecommendationtopromote
improveddatainputintotheINTERPOLdatabase.
TheuseofanITmechanismallowingautomatic
integrationofdatafromMembercountriesiscur-
rentlybeingexamined.Theimplementationofthis
kindofsystemiskeytoinputtingevenmoredata
intothedatabase,asitseemsthatmanycoun-
tries communicate far too little information to
INTERPOL.
However,itisunrealistictoclaimtobestamping
outtraffckingunlessallnationsareonboardand
activelyparticipating.
Inthisareaofcrime,asinmanyothers,theneedforstrong
internationalcooperationisprovingessential.
Mobilizing the international community to safeguard
world heritage
ParticularlydramaticeventssuchastheIraqwarortherecent
earthquakeinHaitiunderlinethedemandforinternationalco-
operationsincetheheritageofthecountriesconcernedisseri-
ouslythreatened.
InHaiti,forinstance,artistictreasuresareatrealriskasthe
reigningchaosispropitioustotheftandtraffcking.
f OCUs
Ivory plaque from Nimrud,
9
th
-8
th
centuries BC (stolen).
©IraqMuseum
47 WCO News – N
o
62 – June 2010
f OCUs
Swift delivery of emergency humanitarian aid
…a priority for the international Customs community
In the event of natural disasters and other
catastrophes, humanitarian aid from the
international community needs to be delivered
on site as quickly as possible in order to help
survivors. But at the same time, the absence of
adequate control mechanisms at the national
level can lead to a food of inappropriate
international “aid” which is not suited to the
needs of those who require it.
R
eliefconsignmentsneedtobeclearedquicklyandcarefully,
whichcallsforspeciallyadaptedprocedures.Givenitsposi-
tionatborders,Customsplaysakeyroleinfacilitatingtheexpe-
ditiousmovementofgoodssentasemergencyhumanitarianaid.
AccordingtoastudybytheInternationalFederationofRedCross
andRedCrescentSocieties(IFRC)in2007,thereareamultitude
ofinternationalinstrumentsrecommendingfacilitationmeas-
urestosimplifyandrationalizetheclearanceofhumanitarian
reliefconsignments.Ofthese,threeofthemostimportantones
havebeendrawnupbytheWCO,namelytheWCORecommen-
dationtoexpeditetheforwardingofreliefconsignmentsinthe
eventofdisasters(8June1970),therevisedKyotoConvention
(RKC),inparticularSpecifcAnnexJ5,andtheIstanbulConven-
tionontemporaryadmission,inparticularAnnexB9.These
instrumentsservedasamodelforthedevelopmentin2007of
new“GuidelinesfortheDomesticFacilitationandRegulation
ofInternationalDisasterReliefandInitialRecoveryAssistance”
thatwereadoptedbytheStatesPartiestotheGenevaConven-
tionsin2007.
Itisgenerallyimpossibletoforeseewhenandwherenatural
disasterswillstrike,ortheirscale,althoughonoccasionsome
canbepredicted.Unfortunately,naturaldisastershavebeenin
thenewsalltoooftenrecently.Asaresultthereof,theWCO’s
PermanentTechnicalCommittee(PTC)devotedalargepartof
its187
th
/188
th
Sessionsfrom1-3March2010toreviewingthe
currentsituation;whathasbeendoneandwhatmorecould
bedone.
TheUNOffceforCoordinationofHumanitarianAffairs(OCHA)
andtheIFRChadanopportunitytopresenttheirworkatthis
meeting.OCHAinparticular,encouragedWCOMembersto
signtheModelAgreementonCustomsFacilitationbetweenthe
UnitedNations(UN)andgovernmentsconcerningreliefcon-
signmentsandthepossessionsofreliefpersonnelintheevent
ofdisastersandemergencies(astakenintoaccountintheRKC)
sincefewcountrieshavesigneditsofar.Atthenationallevel,
discussionspreparatorytothesignatureofthiskindofagree-
mentaregenerallyinter-ministerial,althoughthefnaldecision
isoftentakenatthepoliticallevel.
Additionally, in order to manage the intervention of a large
numberofNGOsintheeventofnaturaldisasters,whichob-
structstheclearanceprocess,theModelAgreementprovides
fortheuseofaModelCertifcateallowingtheUNtoguarantee
thatanNGOoranindividualisabonafdeparticipantintheUN
reliefoperationbeingundertakenattherequestofthegovern-
mentandassuchisentitledtotheapplicationoftheCustoms
facilitationmeasuresprovidedforundertheAgreement.
Thecentralisationoftheformalities,andoftheprocessingof
reliefconsignments,isessentialifwearetomanagehumani-
tarianaideffectively,andCustomsisideallyplacedtooccupya
keyroleinthecoordinationandmanagementofhumanitarian
crises.TothisendOCHAmaintainsa“DirectoryofNational
FocalPointsandLegislationforCustomsFacilitationinInter-
nationalEmergencyHumanitarianAssistance”onitswebsite:
Haiti : a Makeshift camp
48 WCO News – N
o
62 – June 2010
www.reliefweb.int.WCO
Members are invited to
provide the UN with the
contactdetailsofnational
Customsfocalpointsand/
ortoensurethatthesede-
tailsareup-to-date.
Foritspart,theIFRCen-
couragedWCOMembers
toensurethattheirdomesticregulatoryframeworksareprop-
erlypreparedforthemostcommonCustomsproblemsencoun-
teredintheeventofadisaster(asdescribedinits2007studyand
inseveraldozencasestudiesavailableonitswebsite:www.ifrc.
org/idrl.Thedisasterreliefandrecoveryguidelines(mentioned
earlierinthisarticle)couldproveusefulinsuchanappraisal.
TheIFRCalsonotedthatnationalRedCrossandRedCrescent
Societiesoftenhaveextensiveexperienceandexpertiseinthis
feldthattheycanshare.
Atthecloseofthediscussions,andtakingaccountoftheurgent
needtoestablisheffcientclearancesystems,thePTCidentifed
thissubjectasoneofitsmainprioritiesoverthenext12months.
Aworkingsessionwillthereforebedevotedtothisissueatthe
PTC’snextmeetinginOctober2010.
TheWCOSecretariatiscurrentlydraftingaMemorandumof
UnderstandingoncooperationbetweentheWCOandOCHA
ontheonehand,andbetweentheWCOandtheIFRConthe
other,whichitintendstosignveryshortly.Itisalsoinvolvedin
anAdvisoryConsultativeCommitteerecentlysetupbytheIFRC
todrawupmodelnationallegislationcoveringinternationalaid
intheeventofadisaster,whichhelditsfrstmeetinginGeneva
on19April2010.Finally,itisinterestingtonotethatthePolicy
Commissionhasalsoincludedthisissueontheagendaforits
nextsessioninJune2010.
WCOmeasuresonemergencyhumanitarianaidareavailable
onitswebsite.
More information
www.wcoomd.org
www.reliefweb.int
www.ifrc.org/idrl
f OCUs
Haiti: “Rather than give up, Customs must
forge ahead!”
A
t4.53p.m.localtimeon12January2010,adevastating
earthquakeregistering7ontheRichterscalestruckHaiti
approximately15kmwestofthecapital,Port-au-Prince.
Thistremorofunprecedentedviolencecausedthecollapseof
manydwellingsandhotelsaswellasgovernmentbuildingsof
sturdierconstructionsuchasthePresidentialPalace,theParlia-
ment,theMinistryofFinance,theMinistryofPublicWorks,the
mainprisonandtheTaxationOffce.Thedeathtollstandsat
over300000,withhundredsofthousandsinjuredandmillions
ofHaitianslefthomeless.
Sincethequake,over450settlements–mostcommonlycon-
sistingofmakeshiftcamps–havesprungupinanunplanned
mannerinPort-au-Prince.Theonsetoftherainyseasonisnow
thegreatestcauseforconcern,giventhataccesstoproperwa-
terproofshelterwillnotbeavailabletoallthedisaster’svictims.
Whatismore,therainwillworsensanitaryconditionsandsub-
stantiallyincreasetheriskofepidemicsanddisease.
InMay2010,theWCOSecretariatvisitedHaitianCustomsin
Port-au-Princetoexpressthesympathyandsupportofthein-
ternationalCustomscommunityasawhole.Thequakeobviously
didnotspareHaitianCustoms.NineCustomsoffcersperished
inthedisaster,some15wereseriouslyinjuredandallwithout
exceptionlostfamilymembers.
Customsinfrastructurewasalsobadlydamaged.Theirhead-
quartersbuildingisonthevergeofcollapseandthefullstaff
complement has been transferred to the Customs School
Customs headquarters in ruins
©CPB
49 WCO News – N
o
62 – June 2010
premises.ThesepremisesaretoocrampedandtheDirectorate
General’sdivisionshavetoworkinshiftsasthereisnotenough
roomforeveryone.ThebuildingsatPort-au-PrinceInternational
AirportarealsooutofcommissionandCustomshastakenup
residenceinahangerfttedoutatveryshortnoticesothatof-
fcerscanperformtheirduties.
Port facilities too were completely levelled by the quake
(wharves,warehouses,administrativebuildings,etc.).Pending
reconstruction,theUnitedStateshasloanedtheportauthorities
twofoatingdocksthatenablesomecommercialvesselstoberth.
Deepdraughtvesselshavenooptionbuttounloadtheircargo
intheDominicanRepublic.Thecontainersarethentransported
overlandviaMalpasseCustomsoffce(theborderpostlinkingthe
twocountries),whichdoesnothavesuffcientcapacitygiventhe
circumstances.Onceattheoffce,thegoodsareplacedundera
transitprocedureuntiltheyreachPort-au-Prince.
Inspiteofalltheseproblems,HaitianCustomssucceededinget-
tingthe“ASyCUDA”Customsclearancesystemupandrunning
againwithinafortnightofthedisaster;animportantfeatasCus-
tomscurrentlygenerates65%ofthecountry’stotaltaxrevenue.
TheDirectorGeneralofHaitianCustoms,Mr.Jean-JacquesVal-
entin,hastheuseofasmalloffceintheCustomsSchoolwhere
hewelcomedtheWCOrepresentative.Duringthediscussions
heunderscoredhisadministration’soutstandingeffortsduring
f OCUs
thistimeofcrisisandhisstaff’saccessibilityandreceptive-
nessdespitethediffcultiesencountered.“Ratherthangive
up,Customsmustforgeahead!”saidMr.Valentin.Suchisthe
watchwordadoptedbytheDirectorGeneralandhisDirectors
tomaintaintheirmotivationinthefaceofacatastropheof
thisscale.
More information
enforcement@wcoomd.org
Port-au-Prince commercial port out of service
(1) A district of Port-
au-Prince levelled
by the quake
(2) The remains of the
Finance Ministry
(3) Malpasse border
offce linking Haiti
and the Dominican
Republic
(1)
(2)
(3)
50 WCO News – N
o
62 – June 2010
f OCUs
Using Statistics to Fight Corruption
by Bryane Michael and Nigel Moore
M
anyCustomsmanagersthinkthey
needexpensivecomputersystems
andcomputerexpertstodetectcorrup-
tionusingstatisticalmethods.Thisisnot
true!Therearemanywaysforadiligent
managertoquicklyandrelativelyeas-
ilyidentifysuspiciousactivitiesacrossa
widerangeofCustomsoperations.We
willtrytoshowhowaregionalCustoms
managercandetectcorruptionjustby
lookingatgraphsofdata.
Canyoufndthetwoorthreesuspicious
inspectorsinthedatagraphshowninFig-
ure1?Lookfordatapointswhichlook
unusual–justuseyourcommonsense.
TheFigurecomparestheclearancetimes
foranumberofinspectorsandthevalue
ofinspectionstheycarryout.Ofcourse,
theinspectorswhotaketoolongaresus-
picious.However,theoneinspectorwho
clearstooquicklyalsorepresentsarisk.
Wehavecolouredthesepointsforeasy
reference.
Thesimplegraphshowsthebasiccon-
ceptofrisk.youmaybeusedtothinking
abouttheloneinspectoratafaraway
bordercrossingatnightasacorruption
“risk.” The modern manager though
alsothinksofriskasstatisticalvariance.
Namely,howmuchdifferencesarethere
ingroupsofdata?LookingatFigure1,we
actually see two groups of data – one
group(clearinggoodsbetween3and6
hours)andasecondgroupoutsidethis
norm (i.e. around 2 hours and 7 hours
respectively).Thesecondgroupofoffcersisaconcernbecausetheyareoutsidethe
normalrange.Thestatisticshavethereforehighlightedthemforfurtherattention.
Asamanagerweneedtoestablishwhatthereasonsfortheseanomaliesare.
Howcanwelookatthevariance(orriskinourjargon)ofperformanceindicators
weareinterestedin(likeclearancetimes)withoutprintingthousandsofgraphsand
dataplots?Maybeyourememberfromyourmathsclassesthenotionofastandard
deviation.Thestandarddeviation(representedbytheGreekletters)measuresthe
dispersionorspreadofdata.Averageimportvalues,timesrequiredforclearanceor
othervariablesweareinterestedinwillhaveastandarddeviationwhichhelpsus
measurethe“risk”ofcorruption,ineffciency(orjustrandomunpredictability).The
standarddeviationinFigure1forclearancetimesisbetween3and6hours.
Figure 1: An Anti-Corruption Rorschach Test
100
150
200
250
300
2 2.5 3 3.5 4 4.5 5 5.5 6 6.5 7
time for clearance (hours)
value (thousands)
Source: We have made up these data for this example.
V
a
l
u
e

o
f

g
o
o
d
s

(
T
h
o
u
s
a
n
d
s
)
51 WCO News – N
o
62 – June 2010
f OCUs
youcaneasilycalculatethestandardde-
viationofsuchthingsasimportvaluesor
clearance times using Microsoft Excel.
Figure2showshowthiscanbedoneus-
inganotherexample–thetimestwobor-
derpoints(BlueNorthandBlueSouth)
taketodetectaCustomsoffence.Even
thoughgroup1workinginBlueNorthat
frstglanceappearmore“effcient”(they
detectedmoreoffences),theyareinfact
alsomoreriskythantheBlueSouthgroup
whenlookingatthestandarddeviation
of the two groups. This is because the
standarddeviationoftimesindetected
offencesequaledabout2.4daysinBlue
NorthwhereasBlueSouth’sratevariedby
lessthanoneday.Asshown,tofndthe
standarddeviationsofthesegroups,just
selectthedata,and–inanewcell–type
“stdev.”Inthebrackets,choosethedata
youwant.youseetwostandarddevia-
tionsinFigure2.
From a statistical point of view, risky
Customsoffcers(andgroups)arethere-
fore those who are “different.” They
havehigherstandarddeviations–they
are more abnormal. They include indi-
vidualswhoaredifferentfromtherest
ofthegroup.Fromastatisticalanalysis
perspective, being different is “bad”.
Managers need to establish the cause
forsuchdifferences.
Statisticsservesasatoolthatcanhelpus
identifyandquantifyrisks–inthiscase
theriskofcorruption.Andstatisticscan
alsoallowustoquantifythecost(onav-
erage)ofcorruptioninCustoms.Namely,
theexpectedvalueofcorruptioninapart
ofCustomsoperationsequalsthevalueof
goodsclearedmultipliedbytheprobabil-
itythatoffcersaretakingbribes.Forex-
ample,if50Customsoffcershavea15%
probability of taking €50,000 in bribes
each,thentheexpectedlevelofcorrup-
tioninthatgroupisequalto€375,000.
Wejustmultiplytheprobabilityofbribe-
taking by the amount these inspectors
maybetaking.
Infraction BlueNorth BlueSouth
1 2.4 24.2
2 1.3 22.1
3 4.3 23.3
4 5.3 25.2
5 3.5 23.1
6 6.3 24.4
7 7.4 24.6
8 5.3 24.5
9 6.4 22.1
10 7.5 22.3
11 2.5 23
12 1.3 24.2
13 11.6 24.7 =stdev(C4:C18)
14 7.1 23.9
15 9.9 24.1
Average 5.5 23.7
Standarddev. 2.38 0.85
Manyreadersmayseriouslydoubtthevalueofusingastatistics-basedapproachto
helpfghtcorruption.Weknowthejokesaboutstatistics–andhowunusualthese
conceptsmayseemwhenreadforthefrsttime.Statisticsisonlyonetoolamong
manytodetectandpreventcorruption.Wearenotsuggestingthatyouturnyour
Customsserviceintoastatisticsfaculty.Nordowesuggestyoufreyourintelligence
offcersandinvestigators.Instead,wesuggestthatyourmanagersaretrainedtouse
basicstatisticalanalysisskillstohelpidentifypossiblecorruptactivitiesi.e.onesthat
asimplegraphmayshowalltooclearly.
Whilewehavetriedtomakethesubjectsimple,pleasedon’taccuseanyoneofcor-
ruptionwithouthavingaprofessionallookatthedatafrst!
Furtherinformationonthesubjectcanalsobefoundinourcompanionarticleinthe
WorldCustomsJournal(www.worldcustomsjournal.org).Wecanalsobecontacted
directlyviaemailshouldyouwishtoclarifyanypointsorhaveaspecifcquestionyou
wouldlikeustoanswer.
Abouttheauthors:
More information
bryane.michael@eueconomics.org
Figure2:UsingExceltoCalculateStandardDeviations
Nigel Moore is an
independent Customs
Expert.
Bryane Michael works at
the Stockholm School
of Economics.
52 WCO News – N
o
62 – June 2010
On International Customs Day, Baha-
masorganizedapublicforumwithlocal
brokerage companies and the general
public that included a question and
answersessionandtheexchangeofideas
andconcerns.
Cambodia established its Customs-Pri-
vateSectorPartnershipMechanismaimed
atraisingawarenessamongallstakehold-
ers,acceleratingbettercooperation,and
ensuringeffcienciesintheimplementa-
tionofthegovernment’stradefacilita-
tionpolicyandalsopoliciesoftheWCO,
especiallytheWCOSAFEFrameworkof
Standards.
Cambodia:Q&Aduringtheoffciallaunchofthe
newmechanism
T
heSecretariattoohastakenupthe
challenge by setting in motion a
project to revisit all its Memoranda of
Understanding with the private sector
withaviewtoexploringwhethertheyare
stillftforpurpose,whethertheyneedto
beupdatedandstrengthenedorwhether
theyneedtobecompletelyrenegotiated
totakeonboardnewopportunitiesand
challengesoftoday’sinternationaltrading
environment.Acentralpartoftheproject
istoensurethatexchangeofinformation
provisionsarereinforcedtothegreatest
extentpossibleassharingofinformation
isrecognizedasplayingakeyroleinen-
hancingCustoms-Tradeoperationsand
performance.
A small sampling of concrete national
Customs initiatives reported to WCO
Newsappearbelow:
KoreaCustomsService(KCS)signednu-
merousMOUswithbusinesses,reinforc-
ing the KCS surveillance network over
drugs,gunsandsmugglingactivities.The
KCSbusinesspartnershipisparticularly
strongonIPRissues,illustratednotablyby
theCyberMonitoringTeamwhichenables
Customsandcustomer-grouprepresent-
ativestokeepwatchontransactionsof
counterfeitgoodsincyberspace.
The Royal Malaysian Customs Depart-
mentconductedaCustoms-PrivateSec-
torConsultativeMeetingtodiscussvari-
ousaspectsofCustomsmattersinorder
toenhancetradefacilitation.
NorwaychosetodedicateInternational
Customs Day to the Customs-Business
Partnership in the fight against coun-
terfeiting, a strategically important is-
suethatillustrateditsgoodcooperation
withbusiness.NorwegianCustomsand
Excise cooperates on a daily basis with
theConfederationofNorwegianEnter-
prises.Theyinvitedthepresstowitness
howmanycounterfeitproductsaredis-
coveredatthemainmailterminalduring
asingleweek.
Following the WCO’s decision to dedicate 2010 to
promoting the importance and necessity for Customs-
Business partnerships especially in light of the fact that
partnerships form one of the 10 core building blocks in the
WCO Customs in the 21
st
Century strategic policy, Customs
administrations around the world have rallied to concretise
the Secretary General of the WCO’s call by undertaking
a number of positive initiatives in this area.
Customs community rallies to improve
Customs-Business partnerships
Cambodia Customs Management Board and private sector
representatives
Cambodia: Q&A during the offcial launch of
the new mechanism
Malaysia's Director General of
Customs with the Minister of
Finance who presented Certifcates
of Merit to the private sector
Malaysia: Customs and the private sector
consult
e Ve nTs
53 WCO News – N
o
62 – June 2010
Ukrainian Customs highlighted the lat-
estdevelopmentsinitscooperationwith
business:theimplementationoftheAEO
conceptfortrustedtraders(theso-called
“white”and“green”lists);thelaunchof
the“e-Customs”projectandtheintro-
duction of its first phase, namely, the
“e-Declaration”.Thetradingcommunity
wereinvitedtocommentonthesebreak-
throughsandonthedynamicsoftheCus-
tomsbusiness.
Côte d’Ivoire launched a Time Release
Observatorytoenhanceitsrelationship
withbusiness.Ithadsetupseveralcon-
sultation committees with the private
sectorandannouncedtheestablishment
ofanationalcommitteeonIPRs.Business
representativestooktheopportunityto
commentonthechangesmadeand,while
recognizing progress made, highlighted
the necessity to accelerate clearances
andtomovetoapaperlessenvironment.
WiththeassistanceoftheWCO,Morocco
launchedanIntegrityObservatoryaspart
oftheireffortstoenhancethebusiness
environment.
BruneiCustomsannouncedthatitplans
todevelopseveralactivitieswiththebusi-
nesscommunityduring2010,includinga
numberofdialoguesessionstoexchange
ideasandexperience.Bruneihighlighted
theneedtochangeitsmindsetandup-
grade working processes and perform-
ance,encourageapro-businessattitude,
andbetterunderstandtheneedsofentre-
preneurswhodonotwanttobehindered
withregulationsandproceduresthatare
nolongerrelevant.
InMali,aSeminaronCustoms-Business
Partnershipswasanoccasiontohighlight
theeffortsmadebyCustomssuchasthe
reviewoftheCustomscode,theagree-
ments with neighbouring countries on
transitprocedures,theongoingITinte-
grationofCustomsprocedures,theuse
ofscannerequipmenttoreduceclearance
times,etc.Otherprojectstofacilitateand
simplifyprocedurestosupportbusiness
developmentareunderway.
TunisiausedInternationalCustomsDay
tolaunchtheTunisianAEOprogramme
andtoexplainindetailtheconditionsand
requirementsacompanyneedstofulfllto
obtainthisnewstatus.
In Cameroon, a debate took place dur-
ingwhichthemainissuesandobstacles
hinderingtradewerediscussed.Delegates
recognizedthatmanythingshavebeen
putintoplacetodeveloptheCustoms-
BusinessPartnershipincludingaBusiness
CustomsForumandacommitteetopro-
moteintegrity.Alldelegatesalsounder-
linedtheneedforregulationstobewell
appliedandforeveryplayerinthe“trade
chain”tocomplywiththeirresponsibility.
The2010InternationalCustomsDaycel-
ebrationscorrespondedwiththeopening
oftheMeetingofCustomsOffcersfrom
theWestAfricanEconomicandMonetary
UnioninNiger.Customsrepresentatives
from the eight member countries ex-
changedexperiencesinordertofndso-
lutionsthatwouldfacilitateanincreasein
tradeandeconomicintegration.
HongKongCustomsannouncedtheroll
outofitselectronicRoadCargoSystem
(ROCARS)tofacilitateroadcargoclear-
Korea Customs Commissioner poses with Ambassadors accredited
to Korea
China awards Certifcates of Merit to Customs offcers and business representatives
Representatives
from the private
sector honoured by
Indonesian Customs
Customs offcers and
their business partners
cycle together in
Indonesia
e Ve nTs
54 WCO News – N
o
62 – June 2010
ances.ROCARSwasdevelopedinclose
collaboration with industry and allows
shipperstosubmitroadcargodataelec-
tronically in advance of the Customs
clearance.
IsraelicelebrationscoveredbothInter-
nationalCustomsDayandits60
th
anni-
versaryduringwhichtheynotedthepast
throughtothepresentwhilelookinginto
thefuture.Theireventemphasizedthein-
volvementofandclosecooperationbe-
tweenIsraelCustomsandthecountry’s
foreigntradecommunity.
TheworkdonebyHerMajesty’sRevenue
andCustomsintheUnitedKingdomto
helpinternationaltradewasplacedunder
thespotlight.Thisworkcoverseverything
fromhelpingmajorcarmanufacturersto
sharingandexchanginginformationon
seacontainers,throughtoreducingthe
amountofpaperworkforFastParcelOp-
eratorswhocompleteCustomsentrieson
behalfofimporters.
JordanCustomscontinuedtoenhanceits
partnershipwiththeprivatesectorwith
particularemphasisonsupplychainse-
curityandtheprotectionofintellectual
propertyrights.TheirCustoms-Business
PartnershipCouncilprovidesaplatform
forthefrankexchangeofviewsonissues
thatdetereconomicgrowthandhinder
thefowofgoods.
Portugal’sCustomsadministrationand
theLisbonTradeAssociationmettoim-
provetheirperformancethroughpartner-
shipandSudanCustomssignedanMOU
withamajorcompanytocombatcom-
mercialfraud.
More generally, ceremonies took place
across the globe celebrating the work
ofCustomsinkeepingthemovementof
goodsfowingandthereforeencourag-
ingtrade.ManyCustomsadministration
awarded Customs officers with WCO
CertifcatesofMeritfordisplayingpro-
fessionalismandskill.
Given the focus on Customs-Business
Partnershipsin2010,theWCOdecided
thatitwouldbeappropriatetoalsoaward
CertifcatesofMerittoprivatesectorin-
dividuals and organizations that were
playingapositivepartinthisarea.Many
Customsadministrationsfollowedsuitby
awardingcertifcatestotheirnationalpri-
vatesectorrepresentativeswhosework
hadcontributedtotransparencyandim-
provedtrade.
More information
www.wcoomd.org
Japan awards certifcates to private sector representatives
Italy honours deserving Customs offcers
Canada Border Services Agency hosts a public
information event
New Zealand Customs holds an open day that included a number of displays, detector dog demonstrations and tours of the Hawk IV vessel.
e Ve nTs
55 WCO News – N
o
62 – June 2010
Canada Border Services Agency hosts a public
information event
Canada Border Services Agency hosts a public information event
German Customs investigators receive Certifcates
of Merit
Awarding Certifcates of Merit to Customs
offcers in the Dominican Republic
A Portuguese Customs offcer receives a WCO
Certifcate of Merit
Dutch Customs offcers pose with their Certifcates of Merit
Israel's Director General of Customs and the Director General of the Tax Au-
thority hand out a Certifcate of Appreciation to the previous Director General
of the Department of Customs & VAT in the presence of senior offcials
New Zealand Customs holds an open day that included a number of displays, detector dog demonstrations and tours of the Hawk IV vessel.
An ICD poster in Norway showing fake medicines and the words
"Do not let this into the country".
Private sector and Customs representatives meet in Ukraine
e Ve nTs
56 WCO News – N
o
62 – June 2010
Fusing data to deliver
integrated business
solutions
The page turns at the German Zollkriminalamt
T
hiswasonlythe
secondtimethat
the WCO has held
itsannualITConfer-
enceandExhibitioninEuropesincethe
veryfrsteventinBrusselsbackin2002.
TheunexpectedroleoftheIcelandicvol-
canoaddedanewdimensiontotheproc-
essandwhileregistrationswereaffected
inthelastweekorso,participantshad
atrulywonderfulexperienceintheIrish
capitalfrom28-30April.Thisoutcome
wasdowntotheeffortsofmanyindividu-
als,buttheWCOowesahugethankyou
to its co-host, the Irish Revenue Com-
missioner, Josephine Feehily, who took
an enormous amount of time from her
busyscheduletobeaveryvisiblepartof
allproceedings.
A
fteralongandverysuccessfulcareer
withtheGermanCustomsadminis-
tration, Karl-Heinz Matthias, the Head
of the German Zollkriminalamt (ZKA)
retiredon30April2010afterhavingdi-
rectedtheZKAfor20years.TheZKAis
responsibleforCustomscriminalinves-
tigations.Guestsfromvariouscountries
joined Karl-Heinz at the ZKA offices in
Colognetosayfarewellandtowishhim
wellinhisretirement.
TheWCOhascountedondedicatedsup-
portbytheZKAinmanydifferentCus-
tomscompliancemattersovertheyears.
Duringtheearlynineties,Karl-Heinzand
hisoffcerssupportedmanyoperational
programmesandprojectsinitiatedbythe
Thereweremanyotherindividualefforts
involvedinmakingthe2010eventsuch
anoutstandingsuccess;theentireteam
at the Office of the Revenue Commis-
sionersworkedtirelessly,withfairand
greatfriendlinessinsupportingtheWCO
contingentandtheoffcialconferenceor-
ganizers.Itisimportanttonotethecon-
tributionfromourmaineventsponsor,
Accenture,andalltheothersponsorsand
exhibitorswithoutwhomnothingwould
havebeenpossible–thisistheWCOyear
oftheCustoms-BusinessPartnershipand
theITConferenceandExhibitionisatan-
gibledemonstrationofthatpartnership.
Thereweremanymemorablemoments
forallparticipants.Onthefrsteveningat
thehistoricallyimportantandverylovely
WCO.TheyhostedtheBalkanInfo,Mar
InfoandCargoInfosystemsandactively
assistedinorganizinganumberofdrug
relatedenforcementoperationssuchas
CarmenItoIV,andlaterOperationRoad-
runner and follow up operations which
targeteddrugs,counterfeits,precursors
andotherenforcementissues.Progress-
ingfromtheseoperations,theWCOlater
developeditsvariousCENapplications
whicharethecornerstoneofmodernCus-
tomsandlawenforcementcooperation.
Karl-Heinzveryearlyrealizedtheimpor-
tanceofcommunicationandintelligence
inCustomslawenforcementandoffered
theZKAasa“home”fortheWCO’sRe-
gional Intelligence Liaison Office for
Western Europe (RILO WE). RILO WE
willalwaysbeassociatedwithhisname
andhissupporttotheWCO.Hisvision,
hisdeterminationandhisinternationally
recognizedcompetenceinenforcement
matters made him many friends in the
internationallawenforcementcommu-
nityandunderlinedinmanyinstancesthe
MansionHouseindowntownDublinall
weretreatedtothecrystalclearpurity
ofthevoicesofatroupeofCelticsing-
ers that provided an evocative, almost
hauntingexperiencethatallpresentshall
neverforget.NomentionofIrelandcan
becompletewithouttheword“Guinness”
andthenexteveningwashostedatoneof
thetrulysymboliciconsofIreland–the
GuinnessStorehouse–andtherecannot
beamoreappropriatesettingforatra-
ditionalIrisheveningwithgreatviewsof
thecityofDublin,thelovelydancingand
ofcourse,theGuinness!
FromtheopeningaddressbyConorLeni-
han,theIrishMinisterforScience,Technol-
ogyandInnovationtotheclosingspeeches
byJosephineFeehilyandSergioMujica,the
WCODeputySecretaryGeneral,therewas
anexcellentline-upofspeakersfromCus-
tomsandtheprivatesector.TheWCOhas
builtanenviablerecordofsuccesswiththe
ITConferenceandExhibitionatlocations
allovertheworldand2010haskeptthat
recordintact.Therewerehighlypertinent
crucialroleCustomshastoplayinfghting
allformsofCustomsandExciserelated
crime.TheWCOalsobeneftedthrough
Karl-Heinz’ssupportinprovidingmany
highlyqualifedexpertstorunoperations
andtoevaluateWCOdrivenprogrammes.
Hislegendary“Newyear’sReception”at
oraroundthedateofInternationalCus-
tomsDayon26January,wasoftenused
byKarl-HeinztopersonallyawardWCO
Certificates of Merit to dedicated Cus-
tomsoffcials.AsafriendoftheWCO,
Karl-Heinzwillalwaysberememberedfor
hislonglastingcommitmenttotheZKA
andtheWCO,andforhispersonalcontri-
butiontoimprovingglobalCustomslaw
enforcement.
WewishKarl-Heinzandhisfamilyallthe
verybestforthefuture.
More information
www.zoll.de
FUSING DATA TO TRANSFORM
BUSINESS PROCESSES
2010 WCO IT Conference & Exhibition
28-30 April 2010 • Dublin • Ireland
S
Corporate Event Sponsor
Hosted By
Irish Tax & Customs
Karl-Heinz Matthias at his farewell reception
e Ve nTs
57 WCO News – N
o
62 – June 2010
“Looking back, looking forward”
T
heTechnicalCommitteeonCustoms
Valuationheldalandmarkeventdur-
ingitsrecentsessionatWCOHeadquar-
terstocelebratethe30
th
anniversaryof
theGATT/WTOValuationAgreement.
The event was an opportunity to take
stock of how the Valuation Agreement
wasworkingintoday’sinternationaltrad-
ingenvironment,takingintoaccountthe
vastchangeswhichhavetakenplaceover
thepast30years.Itwasrecognisedthat
theAgreementwasfrstdraftedatatime
wheninternationaltradeasweknowit
todaywasstillinits
infancy-worldtrade
volume has since in-
creasedby525%.This
poses difficulties for
today’sCustomsvalu-
ation specialists; sup-
ply chains and multi-
nationalstructureshave
become ever more so-
phisticatedandcomplex,
and large payments are
being made for intellec-
tual property rights and
otherservicesconnected
withimportedgoods.For
thesereasons,theTechnicalCommittee
hasbeenworkinghardontrickytechnical
questionssuchaswhethercertainroyalty
paymentsshouldbepartoftheCustoms
value,therelevanceoftransferpricingto
Customs value, and determining which
partiesinachainshouldberegardedas
thebuyerandsellerforCustomsvalua-
tionpurposes.
Inmostdevelopingcountries,effective
implementation and application of the
WTOValuationAgreementisoftenquot-
edasoneofthemainproblemsfacedby
Customsadministrations.Informaltrade
acrossnationalbordershasincreasedand
becomemorediverse,oftenaccompanied
by suspected false invoices and under-
valuation.Theseissueswereaddressed
during the anniversary event and are
alsobeingconsideredinthecontextof
theWCO’sRevenuePackagewhichwas
designedtostrengthenfairandeffcient
revenuecollectioninlightoftheglobalf-
nancialcrisisandconsequentialdeclining
dutyrates.AseriesofWorkshops,funded
byJapan,iscurrentlybeingheldineach
ofthesixWCOregions.WCO
Membersarebeingencour-
agedtoutilizeexistingrele-
vanttoolsandinstruments
andarebeinggiventheop-
portunity to identify and
discuss areas where they
would appreciate more
guidance. To date, valu-
ation,particularlyinthe
context of commercial
fraud, has emerged as
the main theme where
furtherhelpissought.
Aswellaslookingbackoverthe
past30yearsatthelessonslearnt,speak-
ersandpanellistsalsolookedforwardto
futurechallengesforCustomsvaluation
and considered ways to address them.
Thereisaneedforincreasedcommercial
awareness,sothatCustomscanenhance
its understanding of modern business
practicesandmeetbusinessexpectations.
The importance of strong partnerships
between Customs administrations was
alsoemphasized.Theclosetiesbetween
theWCOandtheWTOwerefurtherre-
inforcedduringtheeventwhichstretches
backtothecreationoftheWTOin1995.
Finally, the celebration was also a time
fornostalgia;aValuationMuseumofin-
terestingartefactsandphotoswassetup
andsomefamiliarfacesfromthevalua-
tionworld,pastandpresent,wereableto
catchupwitholdfriendsandcolleagues.
More information
www.wcoomd.org
presentations on the complex subject
ofbusinesstransformationthroughthe
fusionofdataandtheexhibitionstands
allowedvendorstoshowcasetheirexper-
tiseandworld-classsolutionstoaneager
audience.
FinallythereisthesubjectofDublinit-
selfandIrelandmorebroadly.Everybody
thereshallhavelastingimpressionsof
thekind,welcomingandhumorouspeo-
plewhoarethebasisoftherichcultural
experiencethatIrelandoffers.
More information
www.wcoomd.org
e Ve nTs
58 WCO News – N
o
62 – June 2010
WCO’s continued commitment to enhancing
tariff classifcation
I
mproving tariff classification work is
recognised as a priority in the WCO
StrategicPlan,whichcallsfortheimple-
mentationofbestpracticesinthisarea.
These best practices are enshrined in
twoveryimportantWCOCouncilRec-
ommendations on the introduction of
programmesforbindingpre-entryclas-
sifcationinformation(1996)andonthe
improvementoftariffclassifcationwork
andrelatedinfrastructure(1998).
Since1988,whenthefrstversionofthe
HScameintoforce,theWCOSecretariat
hasbeenassistingWCOMembersintheir
effortstoimplementtheHSandenhance
tariff classification work. In the early
monthsof2010,fveHSseminarstook
placeattheregionalandnationallevel
withthesupportoftheOrganization.
Seminar in East and
Southern Africa
Modernisationoftariffclassifcationwork
wasthetopicofaseminarthattookplace
inMombasa(Kenya)from8-11February
whichgatheredalmosttheentireregionof
EastandSouthernAfricatogether.Twenty-
sevenCustomsoffcersfrom20countries
discussedhowbesttoorganisetheirtariff
classifcationinfrastructurebyprojecting
thestandardsrecommendedbytheWCO
ontocurrentpractices,byidentifyingcom-
mon strengths and weaknesses, and by
contemplatingmeasuresneededtokeep
tariffclassifcationworkinlinewithmod-
ernstandardsandrequirements.TheSemi-
naralsofocusedonaddressingproblems
intheareaofestablishingadvancetariff
rulingprogrammes–anissuethatremains
highontheWCOagenda.
Seminar in West and
Central Africa
From15-19February,aregionalseminar
for the West and Central Africa region
focusingonHS2007tookplaceinOua-
gadougou (Burkina Faso). Twenty-two
participantsfromsevencountrieswere
introducedtotheworkoftheWCOHS
committees and sub-committees, to
WCO Council Recommendations, and
totheHS2007amendments.Theywere
alsoacquaintedwiththeWCOcommod-
itydatabasewhichoffersthepossibility
ofsearchingbykeywordorbyusingan
HScodenumber,HSpublications,andthe
WCOHSe-learningtools.
Workshop in Timor-Leste
EnhancingtheabilityofTimor-LesteCus-
tomsoffcerstoclassifygoodsandtojus-
tifytheirclassifcationdecisionswasthe
mainreasonbehindanationalWCOHS
CapacityBuildingWorkshopheldinDili
(Timor-Leste)from8-12February.
The25participantslearntthemechanics
ofclassifcation–thestep-by-stepproc-
essoffrstidentifyinggoods,andsecond
identifyingthepossiblechaptersusingthe
TableofContents,thenlocatingtheappro-
priateheadings,next,consideringtherela-
tiveSectionandChapterNotesand,fnally,
classifyinginthesixdigitsubheading.
Diagnostic in Liberia
In2009aWCOdiagnosticmissionwas
conducted in Liberia during which the
needtoassistthecountryintheHSarea
wasidentifed.Asaresult,aworkshopon
theimplementationoftheHSConvention
andtheWCOclassifcationworkmodel
was organised during March 2010 to
identifytheorganizationalstrengthsand
weaknessesoftariffclassifcationworkin
ordertodeterminespecifcneedsforas-
sistance.WiththehelpofWCOexperts,
participantsanalyzedthecurrentsitua-
tion,identifedobjectivesanddeveloped
anactionplanforthemodernisationof
tariffclassifcationworkinLiberia.
Seminar for the Customs Union
of Belarus, Kazakhstan and
the Russian Federation
A seminar on managing the challenges
posedbyacommontariffandCustoms
policyincludingtariffclassifcationissues
inthenewlyestablishedCustomsUnion
between Belarus, Kazakhstan and the
RussianFederationtookplacefrom17-18
FebruaryinMinsk(Belarus).Theseminar
providedclarifcationoncertainproce-
duresandmechanismsformanagingthe
CustomsUnion’sHSrelatedactivities,as
wellasmorepracticalinformationonthe
useoftheHSindailywork.
Conclusion
Thesetrainingopportunitiesareastepto-
wardstheconcreteimprovementofthe
situationinthefeld.Customsadminis-
trationstoomusttakepracticalmeasures
toimplementWCOinstrumentsontariff
classifcationworkandthelatestversion
oftheHSwhichcatersforgoodscurrently
beingtradedinternationally.
ThenextversionoftheHSnomenclature
willenterintoforceon1January2012.
Customsadministrationsareencouraged
to begin the process of implementing
HS2012intheirnationalCustomstariff
orstatisticalnomenclatures.
More information
hs@wcoomd.org
In Timor-Leste
In Kenya
In Liberia
e Ve nTs
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On-line charts on revenue trends and cargo dwell
time, performance of Customs offices and staff
appraisal, compliance status of brokers and
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SMS or email alerts when sudden drop in revenue
collection, high risk consignments or any user
defined event, for Customs and Ministry of
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Provides risk assessment and management
capabilities to any electronic document including
Port or Airport Manifest, Customs declaration,
regulatory certificates
Risk engine built on auto-adaptive risk criteria
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A complete Customs Software compatible with
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Full integration and real-time clearance of
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