WORLD CUSTOMS ORGANISATION HISTORY

194 Thirteen Governments represented in the Committee for European Economic Co-
7 operation set up a Study Group to examine the possibility of establishing one or
more Customs Unions between the various European countries in accordance with
GATT principles.
194 The Study Group decided to establish two Committees: an Economic Committee
8 which later evolved into the Organisation for Economic Co-operation and
Development (OECD), and a Customs Committee which later became the Customs
Co-operation Council (CCC).
195 The Convention establishing the CCC enters into force on 4 November.
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195 The inaugural session of the CCC Council was held in Brussels on 26 January in the
3 presence of representatives of seventeen European countries. This date is now
celebrated annually as International Customs Day.
197 The International Convention on the Simplification and Harmonization of Customs
4 procedures (Kyoto Convention) enters into force on 25 September.
198 The Convention on Mutual Administrative Assistance in the Prevention, Repression
0 and Investigation of Customs Offences (Nairobi Convention) enters into force on
21 May.
198 The WCO’s International Convention on the Harmonized Commodity Description
8 and Coding System (HS Convention) enters into force on 1 January. 
199 The WCO Council adopts the Arusha Declaration on Customs Integrity.
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199 The WCO Council adopts the informal name "World Customs Organization" to
4 better reflect the Organization’s global nature.
199 The WCO Council adopts the revised International Convention on the
9 Simplification and Harmonisation of Customs Procedures (Revised Kyoto
Convention)
200 The WCO celebrates its 50th anniversary and is honoured with a visit by HM King
2 Albert II of Belgium accompanied by the Hon. Didier Reynders, the Belgian Deputy
Prime Minister and Minister of Finance.
200 The WCO Council adopts the Convention on Mutual Administrative Assistance in
3 Customs Matters (Johannesburg Convention).
200 The WCO Council adopts the Framework of Standards to Secure and Facilitate
5 Global Trade.
200 The revised Kyoto Convention on the Simplification and Harmonization of Customs
6 Procedures enters into force. The WCO launches the Columbus Programme to
support implementation of the Framework Standards to Secure and Facilitate
Global Trade.
200 The HS Nomenclature 2007 Edition enters into force on 1 January.
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201 The HS Nomenclature 2012 Edition enters into force on the 1 of January.
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 201 The WCO launches the Mercator Programme to assist Customs administrations
4 with implementation of the WTO Trade Facilitation Agreement (TFA).
201  The HS Nomenclature 2017 Edition enters into force on the 1 of January.
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OBJECTIVE OF WCO
World custom organisation aims to improve the effectiveness and efficiency of Customs
administrations across the globe, and to help them fulfil their dual role of facilitating trade
whilst ensuring its security.
The WCO's primary objective is to enhance the efficiency and effectiveness of member
customs administrations, thereby assisting them to contribute successfully to national
development goals, particularly revenue collection, national security, trade facilitation,
community protection, and collection of trade statistics.
FUNCTIONS OF WORLD CUSTOMS ORGANISATION
1. Developing and promoting harmonized and simplified Customs procedures aimed
at facilitating trade.
Harmonized Customs clearance an important prerequisite for economic
development. Improving the efficacy and harmonization of Customs procedures and
practices around the world has become an essential part of the trade facilitation
process. The adoption of international standards leads to simplification and
harmonization. Applied to the management of border transactions, the use of these
standards adds to the effectiveness of Customs operations as they provide a simple
and predictable trading environment and promote easier and better compliance
from traders
2. Securing the international trade
As a frontline border agency dealing primarily with the crossborder movement of
goods, people and means of transport, Customs is best placed to ensure the security
of international trade thus promoting national economic prosperity and social
development.
3. Offering strategic direction and examples of best practice to ensure a uniform trade
environment that will enhance economic prosperity and social development.
4. Administering and developing the international goods nomenclature known as the
Harmonized System, which enables products to be identified by the same code all
over the world.
5. Ensuring the uniform interpretation and application of the World Trade
Organization’s (WTO) Agreement on Customs Valuation.
6. Progressing the discussions on Harmonized Rules of Origin developed by the WCO
for the World Trade Organization as part of the implementation of the WTO
Agreement on Rules of Origin
 7. Fostering cooperation, the exchange of information and intelligence, and mutual
assistance between Customs administrations, by making various international
instruments available
8. Stimulating collaboration between Customs administrations and other border
regulatory agencies involved in cross-border movements, by promoting coordinated
border management.
9. Advancing Customs-Business partnerships in a transparent regulatory environment
where information is shared, which will lead to better compliance, less formalities
and a smoother flow of trade.
10. Cooperating with international organizations in areas of shared competence, by
contributing, in particular, to WTO trade facilitation capacity building missions,
World Bank Customs reform projects, and UN Counter-Terrorism Committee security
missions, among others.
11. Devising capacity building programmes and encouraging Customs modernization
projects by organizing diagnostics, whilst supporting the implementation of action
plans through the use of WCO tools, training and technical assistance.
12. Encouraging synergy and cooperation at the regional level via a network of Regional
Offices for Capacity Building and Regional Training Centres.
13. Providing guidance in the use of enabling information and communications
technologies and tools with a view to improving Customs processing, risk
management and assessment, intelligence handling and non-intrusive detection.
14. Establishing research partnerships with the academic community in order to
enhance knowledge and skills, including the identification of professional standards
that will ultimately improve the management and operation of Customs
administrations.

KEY INSTRUMENTS OF WCO

1. I2C - WCO Information & Intelligence Centre
In the spirit of the “Globally Networked Customs” initiative, the WCO has established an
“Information and Intelligence Centre (I2C)” at its HQ to facilitate communication and
coordination on Customs compliance and law enforcement-related matters.
2. Custom enforcement network
To enable its Members to combat transnational organized crime more effectively, the WCO
has developed a global system for gathering data and information for intelligence purposes,
the CEN.
3. Guidelines
WCO Strategic Trade Control Enforcement Implementation Guide, Guidelines for Post-
Clearance Audit (PCA), Customs Enforcement Guidelines on Countering Money Laundering
and Terrorist Financing
4. Compendium
Compendium of Customs Operational Practices for Enforcement and Seizures, WCO
Customs Risk Management Compendium, Information Repository of Legislation on Border
Measures for Counterfeiting and Piracy- 2012 edition
5. Recommendations
One of the most practical instruments for securing the highest degree of harmonization is
Recommendations that have been adopted by the WCO Council.
6. Mutual Administrative Assistance Instruments
Customs enforcement has developed drastically over the last decades to keep pace with the
tremendous increase in international trade and transport and a growing threat of trans-
border organized crime.

KYOTO CONVENTION
The convention’s full title is the international convention on the simplification and
harmonization of customs procedures .The original convention was concluded in Kyoto in
1973 and entered in to force in September 1974.It was reviewed over a period of years and
was ultimately amended in june1999.
Why is Kyoto convention important?
Kyoto provides a foundation for modern and efficient customs procedures and is therefore
central to customs modernisation and reform.
Since Kyoto convention entered into force, there have been many developments which have
changed the face of international trade. These include-:
 Increased global trade
 Rapid growth in international cargo
 A highly competitive international business environment
 Establishment of WTO and regional arrangments as APEC and AFTA
 Reduced tariff barrier through WTO
 Removal of many non-tarriff barriers
 Growth in e-commerce and use of EDI for delivery of government services
 Increase In trade security
Who are parties to Kyoto?
There are 62 contracting parties to the original convention.
What is Kyoto’s convention purpose ?
Kyoto is designed to help contracting parties to achieve a modern customs administration ,
to achieve improved facilitation and control and to deliver a simpler harmonized and more
flexible approach . When fully implemented, Kyoto convention will contribute to
international trade by :-
  Developing uniform customs practise and procedures around the world
 Meeting the needs of international trade and customs for facilitation through
simplification of customs procedures and practises
 Ensuring appropriate standards of customs control
 Enabling customs to respond to major changes in business and administrative
methods and techniques
 Reducing the costs to traders and to governments of customs processing
Who benefits from Kyoto convention?
The revised Kyoto convention benefits many people i.e.
 Trades will benefit from improved facilitation and reduced costs
 Shippers and transporters will benefit from the uniform customs control and quicker
movement of cargoes and people
 Government’s will benefit from more effective controls that increase trade security
and reduce revenue leakage.
How is the Kyoto convention structured?
Kyoto is in three parts – the body, the general annex and the specific annex
 The body- It sets out the basic provisions of the Kyoto convention and contains the
preamble (which sets out the goals and principles of the convention) and provisions
relating to the scope and structure, administration, accessions and amendment.
 The general annex- It contains the core principles which are not repeated in the
specific annexes. It has 10 Chapters which contain standards and transitional
standards, all of which are mandatory. Detailed guidelines have been provided to
assist with implementation.
 The ten specific annexes – Which cover different aspects of customs procedures are
not obligatory. The specific annexes are also divided into chapters and have detailed
guidelines for their implementation.
SAFE FRAMEWORK STANDARDS
WCO tools to secure and facilitate global trade. In June 2005 the WCO Council adopted
the SAFE Framework of Standards to secure and Facilitate Global Trade (SAFE
Framework) that would act as a deterrent to international terrorism, secure revenue
collections and promote trade facilitation worldwide.
The framework provides baseline international standards to secure and facilitate global
trade.It is updated every three years to ensure that it remains relevant and reflects the
new opportunites, challenges and associated solutions.