LEBANESE CUSTOMS ADMINISTRATION MODERNIZED CLEARANCE · PDF file1 TWINNING PROJECT FICHE...

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TWINNING PROJECT FICHE

LEBANESE CUSTOMS ADMINISTRATION

MODERNIZED CLEARANCE PROCESS

Glossary of Terms

AEO Authorized Economic Operators

ASYCUDA Automated System for Customs Data

ATS Advanced training Skills

BC Beneficiary Country

CB Capacity Building

CIDA Canadian International Development Agency

CVA Customs Valuation

DTI Data Transfer Interchange

ENP European Neighborhood Policy

EU European Union

GDP Gross Domestic Product

GoL Government of Lebanon

ICT Information and Communication technology

IRI Industrial research Institute

IT Information technology

KPI Key Performance Indicators

LCA Lebanese Customs Administration

LITE Lebanon International Trade Exchange

MEDSTAT Regional Programme of Statistics in the Mediterranean Region

MoET Ministry of Economy and Trade

MS Member State

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NAJM Arabic acronym for Customs Information System

NIP National Indicative plan

NOOR NAJM Online Operation

OECD Organization for Economic Co-operation and Development

PAO Project Administration Office

PL Project Leader

ROO Rules of Origin

RTA Resident Twinning Advisor

SA Advisory Services

SME Small and Medium Enterprises

STR Support to Reforms

UNCITRAL United Nations Commission On International Trade Law

UNCTAD United Nations Conference on Trade and Development

WCO SAFE

Framework

World Customs Organization Standards to Secure and Facilitate Global Trade

Framework

WTO World Trade Organization

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1. Basic Information

1.1 Programme: Support to Reforms III

1.2 Twinning Number: LB12/ENP-AP/FI/08

1.3 Title: Modernized Clearance Process

1.4 Sector: Finance

1.5 Beneficiary country: The Republic of Lebanon

2. Objectives

2.1 Overall Objective

To provide better conditions for economic growth through trade facilitation and expedite the

process towards WTO accession by further harmonising and simplifying customs legislation and

procedures in accordance with WTO rules and the Palermo recommendations, including

computerization with further upgrading and rolling out of the NAJM and NOOR systems to the

whole customs territory. The implementation of the NAJM (Arabic acronym for Customs

Information System) since 1997 produced significant improvements, and in particular has ensured

compliance with the Lebanese Law and regulation, reduced cost and time of clearance procedures,

and provided accurate and timely international trade statistics. NAJM, which is based on the

UNCTAD ASYCUDA++ system, was funded by the Lebanese Government, World Bank and the EU.

The NAJM system has been extended by NOOR system - which provides the trader or customs

broker with remote online access to NAJM in order to enter and track Customs declarations

improved Data Transfer Interchange –(DTI-) – and Lebanon International Trade Exchange (LITE)

system - which provides web access to public Customs information.

2.3 Project purpose

To streamline customs procedures and processes to achieve a simple and paperless environment

for customs and trade and enhance the Lebanese Customs Administration’s institutional capacity

for trade facilitation and effective customs control through

1- Looking at trade facilitation mechanisms and improving procedures and controls governing

the movement of goods so as to reduce associated cost burdens and maximize efficiency

while safeguarding legitimate regulatory objectives. Business costs may be a direct function

of collecting information and submitting declarations or an indirect consequence of border

checks in the form of delays and associated time penalties, forgone business opportunities

and reduced competitiveness. The project focuses on analyzing, streamlining and

integrating the current business processes relevant to customs clearing inside and outside

the customs administration via automating the manifest, transit, travelers halls, warehouse

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and free zone in addition to simplifying the process of import and export declarations by

restructuring the inspection, cars’ importation, physical exit of goods via the Customs gates

and by implementing E-Government (starting by linking the Customs system with the

Industrial Research Institute and the Ministry of Economy and Trade), E-Payment ( to allow

24/7 payment, reduce physical movement to cashier, avoid counterfeited money, increase

transparency and interaction check, and improve cash management facilitation), paperless,

post clearance (auditing, look for smuggling, risk management, archive management),

single window ( through a centralized single platform) and legislation review.

2- Establishing an automated and integrated clearance process on a single platform that is

shared by all stakeholders in all international trade cycle

3- Building capacity of customs and sister administrations to operate and manage the new

integrated system

2.4 Contribution to National Development Plan / Cooperation agreement / Association

Agreement /Action Plan

The Modernized Customs Clearance process project will support a priority result defined by the

government in its Reform National plan, as presented at the Paris III conference in January 2007

and the Joint EU-Lebanon ENP Action Plan1. This document stresses the need to increase Lebanon’s

role in the free trade system, speed up the negotiations regarding Lebanon’s accession to the

World Trade Organization (WTO) and strengthen the capacity of the Lebanese administration on

international trade issues.

EU legislation will serve as a reference all along the entire Twinning project. The twinning fiche

complies with the Action Plan and EU expectations towards the Lebanese customs. In addition, it is

in line with points (a) and (b) of Article 56.2 of the Association Agreement – ‘Customs Co-

operation’:

“Cooperation will focus in particular on:

(a)the simplification of controls and procedures concerning the customs clearance of goods,

(b) the possibility of interconnection between the transit systems of the Community and of

Lebanon,

(c)the exchange of information among experts and vocational training;

(d) technical assistance where appropriate.”

The proposed project will be a logical extension of what has been accomplished, hence “further

harmonizing and simplifying customs legislation and procedures in accordance with WTO rules and

the Palermo recommendations by strengthening co-operation between customs and other agencies

to develop an Integrated Border Management Strategy2 . This will contribute to the European

Neighborhood and Partnership instrument, NIP’s 2011-2013 expected results which cite the need to

further “develop and implement trade facilitation strategies.”

1 EU- Lebanon Action Plan- 2007-2010

2 ENP, EU-Lebanon Action Plan

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3. Description

3.1 Background and justification

Since it was launched in 1999, Lebanon's bid for World Trade Organisation (WTO) membership has

served as an underlying pillar for Lebanon's international trade policies, and as a part of the

broader goals of the Paris III Fiscal and its Economic Reform Programme in general. Lebanon's

WTO accession and the required reform efforts are considered by the Government of Lebanon

(GoL) as instrumental to boosting competitiveness and reducing the cost of doing business in the

country. Accession to WTO entails a comprehensive review of a wide range of legal and technical

matters. Having said that, new laws and amendments to existing legislation are needed in order to

create mechanisms aiming mainly to:

a) Increase predictability and certainty for exports and imports;

b) Promote Lebanese exports of goods and services;

c) Ensure protection for intellectual property rights; and

d) Take steps against unfair trade practices.

While the current automated customs procedures (NAJM/ ASYCUDA) provide a quantum leap over

the earlier bureaucratic processes, there has not been a significant reduction in clearance delays

and costs over the past 13 years.

According to the World Bank Doing Business report 2011, which is a comparative analysis on the

ease of doing business over 183 countries, Lebanon ranks 95 in terms of Trading Across Borders,

as opposed to much better figures such as Saudi Arabia standing at 18, Egypt 21, Tunisia 30 and

Bahrain 33.

In addition, it takes 26 days to export and 35 days to import to Lebanon, as opposed to only 10.9

days and 11.4 days in the OECD countries, and 20.4 days and 24.2 days in the Middle East and

North Africa.

These bottlenecks are highlighted by the fact that there is still poor sequencing and coordination

between Lebanese customs activities and other permitting government agencies, such as the

Industrial research Institute, Ministry of Economy and Trade, Ministry of Agriculture, Ministry of

Health, etc. In addition, there are still non automated and paper based phases which cannot be

tracked nor monitored (and which crucially includes the release of cargo by the port authority).

Apart from the loss of transparency and associated opportunities for malpractice, the clearance

process is not optimal in terms of port logistics movement. Inspection is positioned in mid process

and precedes final payment and release. For example in the case of Red lane declarations cargo is

physically moved from the storage to the inspection area and then returned to storage awaiting

payment by declarant/trader. This means additional cost and time in clearance.

All these hindering factors mean additional cost and time in the clearance process.

Accordingly, and knowing that the value of imports and exports represents 60 % of GDP and

generates 40% of GoL's tax revenue, this Twinning project will strive to achieve a better

streamlining, sequencing and integration of Lebanese customs and non customs procedures, so as

to achieve a reduction of clearance delays and costs.

The Twinning project’s main task will consist of establishing an automated clearance process

platform common for all parties that will allow for collaboration of distinct automated sub-systems

in different organizations via secure messaging interfaces while retaining the confidentiality of each

party. In other words, it will build on EU best experience and expertise to achieve better

sequencing, streamlining and integration of Lebanese customs and non-customs procedures, in

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particular governmental regulatory agencies so as to achieve a significant reduction of clearance

delays and cost.

3.2 Linked activities

In the field of Customs Automation, as stated above, the implementation of the NAJM (Arabic

acronym for Customs Information System) since 1997 produced significant improvements, and in

particular has ensured compliance with Lebanese Law and regulation, reduced cost and time of

clearance procedures, and provided accurate and timely international trade statistics.

In addition, a new customs law was enacted by the Council of Ministers and which went into effect

on April 23, 2001. It introduced significant improvements to the old Customs Law. The new law is

largely based on best and modern international practices and substantially conforms to the WTO

requirements, specifically the WTO Agreement on Customs Valuation (CVA), the Agreement on

Rules of Origin (ROO), and the main principles of the General Agreement on Tariffs and Trade

(GATT 1994).

Finally, in 2006, the Ministry of Finance and Customs started a two year cooperation program with

UNCTAD for implementing ASYCUDAWORLD, the latest version of the ASYCUDA software. This

version uses state-of-art technology for automating customs clearance operations.

In order to ensure the sustainability of the modernized customs clearance process and to turn

Customs Administration into one of the most modern administrations of Lebanon, this Twinning

project would be a logical extension of the implementation of the automated customs clearance

system in Lebanon enabling technical and operational sustainability, building on the lessons learned

and best practices in advanced countries, and disseminating the acquired expertise regionally

In addition, this Twinning project consolidates a series of EU-funded support to reforms actions

under Support to Reforms STR1 and STR2. It will build upon the achievements and structures

reinforced by 2013, the EURO 16 million “Integrated Support to Small and Medium Enterprise” and

the EURO 14 million “Strengthening Quality Management, Capabilities and Infrastructures”, which

tackles trade, investment and production aspects at micro-economic level.

Complimentary Project: e-Payment gateway

The Twinning project will also benefit from an EU funded project for introduction of E-payment

services that is currently being implemented at Ministry of Finance ((the software and hardware of

this project were delivered and installed and we will go live in the near future)

Currently taxes are collected using traditional ways such as payments through the bank or Ministry

of Finance Cashiers.

With the technological evolutions and the widespread of the Internet throughout the country, these

payments are expected to be online.

By implementing the E-Payment Gateway, local authorities can not only deliver better service for

the residents, but can also make significant efficiency gains. These include staff time savings,

financial savings (for example from lower transaction charges), and more streamlined and error-

free business processes.

The E-Payment Gateway has three main objectives:

1. Creating a central secured governmental payment gateway by developing a central

electronic payment hub, controlled by the ministry of finance, and connecting government

entities (customs, cadastre, taxes, mecanique, ministry of justice and any other

governmental entity) to the Lebanese banks.

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2. Achieving cost savings for stakeholders by streamlining payments through an electronic

infrastructure, reducing elapsed time and effort spent on transactions.

3. Establishing operational transparency by defining a set of clear and transparent operational

and financial rules under standardized and automated E-Payment mechanisms.

The E-Payment Gateway should play three primary roles:

- The first role is that of a payment processor where the gateway facilitates the electronic

payment between the payee (governmental entity) and the payer (the resident). The

payment is issued by residents through their bank’s internet banking systems. The banks

insure the completion of the transactions.

- The second role is that of a payment consolidator where the hub should route all payments

to the concerned governmental entity through the ministry of finance.

- The third role is that of a payment monitor where reports and monitoring tools are provided

to the Ministry of Finance to trace the transactions.

The e-Payment project has been delivered on September 6th, 2011.Customs staff played a critical

role in aligning its concept with NAJM 2.0

In preparatory work for e-Payment at Customs, LCA received administrative and legislative

assistance (listed below) from CIDA (Canadian International Development Agency) in the form of a

short-term expert 6 weeks. The objective of this support is to map out current and existing duty

payment procedures at branch and HQ level with the aim of identifying administrative, process and

legislative changes required for roll-out of e-payment. The study titled “Revenue collection

disbursement and reconciliation processes- Transformations for an e-payment environment » was

shared with LCA relevant staff at end of the mission.

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The following on-going projects support and compliment project objectives:

Reform

Programme

Project Title Donor Budget Project Duration

Automated

system for

Customs data -

ASYCUDAWORLD

Facilitate and

accelerate

trade

UNCTAD

(Government)

~USD

450,000

2011-2013

Enhancement of

security and

safety at the

borders and

facilitation of

trade

National

Radioprotection

Infrastructure

related to

Lebanese

Trade and

Border Control

EU EUR

2,100,000

18 months (2008-

2010- Extended until

March 2012)

Provide advice on

implementation

of e-payment of

customs duties

via commercial

banks. Review

legislation and

practice of e-

payment

processes.

Provide advice on

audit and

financial tracking

in an electronic

environment.

Financial

Management

and

Accountability

CIDA USD

80,000

2011

It is worth noting that all imports and exports should be subject to global radioprotection control

and regulations in order to establish confidence in trade and increase public health and safety.

Accordingly, the responsibility to combat illicit trafficking and the inadvertent movement of

radioactive material has been tackled in Lebanon.

Lebanese Customs was the primary Beneficiary of this € 2.1 Million project of "strengthening

National Infrastructure Related to Lebanese Trade and Border control project ". Following the

decision of Lebanese Customs to improve its overall monitoring and detection capabilities by

establishing radiation detection infrastructure at Lebanon’s borders, the International Atomic

Energy Agency (IAEA) provided training to Lebanese Customs and helped install EU-funded

radiation detection equipment at one border crossing. This project was extended untill March 2012

and currently it is successfully being implemented and running on all the Customs border offices

except in the Abboudieh office because it is currently being relocated (However, , it is expected to

be implemented in Abboudieh office in the coming month).

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In addition, it should be noted that Customs also played an important role in the following projects

which have cross-cutting objectives:

1. World Customs Organization, January 2009. A diagnostic review of Customs Administration in

Lebanon with recommendations for short, medium and long term.

2. World Bank - International Finance Corporation - Doing Business Report for Lebanon - Latest

workshop June 2010

3. World Customs Organization - e Learning for Customs Personnel – Ongoing project since 2002

4. EU MEDSTAT project - Ongoing project since 2002 - Harmonization and standardization of

international trade statistics and improvement of quality of trade data

3.3 Results

The Modernized Customs Clearance project is expected to increase Lebanon's competitiveness in

international trade and enhance integration with global trade systems. The new proposed clearance

process is expected to reduce the processing time and cost of international trade transactions.

The project will improve the ranking of trading across borders of the Doing Business report,

currently standing at 95.

Results Description Monitorable Indicators

1 Facilitation of

Compliant

Trade

LCA should endeavor to

minimize obstacles faced

by compliant trade

operators and minimize

the cost and time of

clearance

1.1 Decrease in time for trade community for

completion of trade documentation 30%

1.2 Decrease in time for relevant government

authorities to process clearance operations 25%

1.3 Decrease in time for LCA to process clearance

operations 30%

1.4 Decrease in transaction cost for trade operators

25%

2 Enforcement

of relevant

laws and duty

collection

LCA must ensure

intelligent compliance

with Customs Law and

regulations, other

national mandated

governmental laws and

regulations, obligations

to international

agreements and

protocols. LCA within its

scope of operations must

ensure safety and

security of community

against threats such as

smuggling of drugs,

firearms, human

2.1 Increase in duty collections

2.2 Decrease in non-compliant operations 20%

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trafficking, terrorism and

money laundering

Regarding the WCO SAFE Framework of Standards and in accordance with the Lebanese Customs

capacity and applicable laws, the following output will be achieved by the end of the project,:

- Clearance cost of Import/Export cargo: Less than 30%

- Free zone operations: Less than one day

- Warehouse operations: Few hours

- Transit operations: Less than one day

- Percent of revenue due to enforcement: more than 15 percent

- Non-compliant operations: Less than 5 percent

- Support to SME in Export operations: Increase in share of SME relative to overall exports

Annual 15%

In ensuring the delivery of the above mentioned results, this Twinning Fiche will focus on six

components:

A. Process re-engineering and electronic Customs review

Based on best practices, a suitable Information and Communication Technology system is

developed and adopted.

The implementation of the project will lead to the development of Customs procedures in addition

to a prototype of an optimized Single Window topography across all governmental agencies and

Customs Administration so as to increase efficiency through time and cost savings for traders in

their dealings with various government authorities for obtaining the relevant clearance release. The

immediate exchange of data between customs and these other authorities and agencies will also

allow for better and quicker validation of all of the data submitted by traders. In addition, it will

enable the following results:

Lower barriers to trade, which makes it possible for traders to focus on strategic and

commercial considerations as opposed to regulatory regulations. The lower barriers should

provide more opportunities specifically to SME’s involved in trade related activities. The

project aims in enabling Lebanese SME to compete in global markets by lowering their

regulatory and administrative costs and reducing “time to market” production span

Easier access to information through better co-ordination between all involved authorities

leading to time savings when looking for information and increased compliance due to better

understanding

Improved efficiency when submitting information through exchange of data between

authorities involved allowing economic operators to give the same information only once to

these authorities – faster processing, more rapid clearance, greater accuracy of data and

increased compliance; From this improved efficiency will benefit all international trade cycle

Fewer delays, less uncertainty, and more targeted inspections through better coordination

between authorities involved in international trade cycle

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Combined with the development of simpler, standardized and harmonized information, the effective

application of an ICT can help maximize data flows, resulting in faster, easier and lower cost

international trading. The proposed ICT backbone will allow for the trader to submit electronic trade

declarations to the various controlling authorities for processing and approval in a single

application. In addition, duties and taxes will be paid electronically via the related bank resulting

from the applied ICT infrastructure. Governmental and non governmental agencies (IRI, MoET…etc)

will also benefit from processing and tracking information faster.

Based on re-engineered procedures, a system will be developed by the Customs Administration.

Prior to implementation, and in order to guarantee that the system meets the design specifications,

the system will undergo testing and validation following a detailed testing plan and based on real-

case scenarios.

B. Regulatory framework for international trade environment

A new Customs law was introduced in 2001 which included provisions for a modernized and

business-friendly operational environment. A core objective of this track “Regulatory Framework” is

to build and on this new law and to provide a comprehensive and modern legal framework as a

foundation upon which an effective Customs and trade facilitation regime is built. This track will

include a thorough review and modernization of the Customs (and other border agency) laws,

regulations, administrative guidelines and standard operating procedures so they fully support the

new requirements, procedures, systems, and controls. This legal framework benchmarking will be

based on internationally accepted standards and best practices as set out in the Revised Kyoto

Convention and allow for the implementation of related international instruments, agreements, and

standards.

The Regulatory framework track will establish the responsibilities and authorities of the Customs

service to administer and enforce Customs laws, develop supportive administrative regulations, to

adjudicate and settle cases, and take decisions on Customs administrative matters.

The new regulatory environment would promote transparency and predictability, e.g., timely

dissemination of information, advance rulings, independent audit, appeals processes, which would

provide for modernized Customs systems and procedures supporting establishment of risk-

management, post-clearance audit based controls and adequate automation;

This track would review and provide support for compliance with international commitments, e.g.,

WTO agreements; and simplify customs procedures such as simplified customs declarations and

advance lodgment of declarations. Additionally this track will provide for an environment to allow

for release of goods without all clearance formalities having been completed;

A new regulatory framework would include simplified and special procedures for authorized persons

Authorized Economic Operators as AEO as recommended by World Customs Organization

As emphasized on the outset of this Regulatory Framework track a key output is an environment

which supports the use of modern information technology and communication, including electronic

messaging, paperless declarations, electronic signatures, electronic payments, electronic

government and single window; E-Payment approach will enable a reduction in corruption,

increased transparency and efficiency of operation through increased convenience of payments. E-

Government will enable better transparency, efficiency, improved services, better accessibility of

public services, and more accountability. Finally, a Single Window approach will enable cross-

border traders to submit regulatory documents (customs declarations, applications for

import/export permits, and other supporting documents such as certificates of origin and trading

invoices) at a single location and/or single entity, hence increasing efficiency through time and cost

savings for traders in their dealings with various government authorities, for obtaining the relevant

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clearance and permit(s) for moving cargoes across borders and though it fosters collaboration with

other Governmental administrations and border agencies involved in international trade.

C. Post- implementation monitoring capabilities

The objective of this track is to provide Customs Management and GoL at large with a methodology

and KPIs to monitor and assess the project process and in particular trade facilitation situation

regularly to determine whether the stakeholders have benefited from the solutions and trade

facilitation measures put in place.

For the private sector, the gains may be measured in terms of reduction in time and costs and

improvement of predictability, such as faster turnover time for goods, lower costs, and customer

satisfaction. This can result in enhanced trade competitiveness, leading to repeat orders and a

higher volume of trade. Some indicators that could be used in assessing the impact on private

sector include:

(i) Cost of processing trade and customs documentation,

(ii) Time taken to get trade documents approved,

(iii) Number of staff needed to process and handle trade documentation and customs,

(iv) Cargo clearance time, and

(v) Amount of stock enterprises have to carry.

For the government, benefits would include better trade compliance, correct revenue yields, and

effective deployment of resources. Relevant indicators include

(i) Number of trade officers involved in processing trade documents,

(ii) Number of enforcement officers as a ratio of trade and cargo volume,

(iii) Rate of traders’ compliance with the documentation requirements,

(iv) Accurate information in documents

D. Capacity building

Custom modernization programs should involve changes in both mindset and technology. Capacity

building programs should accompany procedural changes and target Customs employees.

Resources saved through the implementation of more efficient trade control procedures should be

used to provide technical support and information services to the trading community.

In policy reform Advisory Services (AS) projects the concept of study tours often helps to avoid

floating around, not knowing when or where to land on a “project runway.” so visualization can

help to have greater focus, can inspire, and can help build self confidence.

The Capacity Building program should also focus on internalizing training and knowledge transfer

process to/by LCA, Traditional CB approach has been of bringing international experts for delivering

diverse customs training in unstructured approach to the administration. This approach has proven

its futility.

The objective of this capacity building program is a better targeted curriculum and a customs

administration capable of developing and delivering training on its own with minimal need for

external assistance.

The outcome of Capacity Building component is to provide LCA with:

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A core group of LCA trainers; trained and practiced in the systematic approach of training. These

trainers will undergo an Advanced Training Skills (ATS) program which will highlight modern

techniques for motivating and engaging both trainers and trainees. These skills include:

Use of Introductory Sessions.

Systematic Approach to Training.

Session Preparation.

Use and practice of Q&A sessions.

Use and practice of Buzz Group sessions or other relevant techniques

Preparation and practice of Individual Presentations.

Use and practice of Syndicate Exercises

Preparation and practice of Co-Trainer Technical Presentations.

Use of Evaluation of Sessions

Use of Feedback in Training

A core Customs Training program composed of around 15 Modules will be developed to/by LCA

core training team in collaboration with domain experts in LCA. These modules will be later on used

by LCA management as criteria for selecting staff for promotions and transfers purposes. The core

modules will be categorized into three groups:

Institutional, Legal and Conventions

Operations

Enforcement, Risk management and Valuation

E. Outreach communication plan

The outcome of this component is for LCA to develop an outreach program with the private sector,

which leads to improved dialogue with traders, as well as to behavioral changes on the part of

customs staff members.

A key factor of success in Customs reform and automation programs is providing the trade

community with a clear understanding of what needs to change, why and what are the advantages.

Regulatory procedures are those that involve interactions with government agencies and other

authorities for traders (or assigned intermediaries) to complete import and export operations in

accordance with applicable laws and regulations. These procedures are intertwined with commercial

and transport procedures. They may include applying for and obtaining an export license, a

sanitary or phytosanitary certificate, a certificate of origin, and other relevant documents before

lodging the customs export declaration. Besides customs clearance procedures, other regulatory

procedures may have to be completed to allow the passage of goods and their means of transport

across borders.

The program will include frequent communication campaigns aimed at the media, traders, and the

general public. These will be delivered in multiple channels such as:

Conferences and workshops

Printed materials such as newsletters introductory flyers, trader guides and clearance

reference materials. The project will utilize the exiting experience and expertise of MOF and

Institute of Finance in publishing their monthly newsletter and may use that newsletter as a

medium for propagating project objectives, publications and training resources.

Videos and documentaries to explain new process and its advantages

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Enhancement of Customs website specifically the sections which target the trading

Community rights and obligations such as Customs law, tariff and duty, Circulars,

Prohibitions, governmental controls, exemptions, trade agreements, passenger allowable

A Customs Call Center / Hotline to respond to trader queries, complaints, alerts and tips.

The call-center will be manned with customs dedicated staff trained in responding to

traders’ queries. A procedure will be defined for call center staff to collect information (case

ticket) and provide pre-defined info or to escalate to relevant authority. Data collected at

call center will be organized as FAQs, user guides, trouble-shooting scenarios and other user

support material.

F. Support, accompanying and contribution to the supplies procurement

The outcome of this component is to review the ready for tendering technical equipment

specifications which will benefit relevant stakeholders, if needed, included in the process of

modernizing customs procedures in addition to providing Technical Advisory work for the Tender

Evaluation Process and Provisional Acceptance of Supplies.

3.4 Activities

The project intends to provide, through a Twinning project with a customs authority in an EU

Member State operating a modernized clearance process, a program that would be divided into six

main components with the following indicative activities:

A) Process re-engineering and electronic Customs review

B) Regulatory framework for international trade environment

C) Post-implementation monitoring capabilities

D) Capacity building

E) Outreach communication plan

F) Support, accompanying and contribution to the supplies procurement

A. Process re-engineering and electronic Customs review

A.1. Survey of “As Is” business process, gap analysis and re-engineering recommendation

of best options

Results: Mapped business processes & organizational topology

along with gap analysis and a comprehensive re-

engineering recommendation.

Deliverables:

(1)Document/presentation: Review of existing

situation and charting of existing procedures/entities

involved

(2)Document/presentation: Recommendations based

on best practices and suggested scenarios

(3)Document/presentation: Detailed training for the

whole suggested new procedure to be used for training

all the new civil service employees in Customs

administration.

Conditionality:

All deliverables should be approved by Beneficiary

(Developed in English or French, plus an Arabic

translation)

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A.2. Import/Export simplification and cost reduction

Results: A comprehensive survey of the current import/export

process (declaration acceptance and physical exit of

goods via Customs gates) and suggestion of

enhancements along with best practices based on

similar contexts, either in the region or in type/size

economies.

Deliverables:



involved



Conditionality:



translation)

A.3. Free zone analysis and recommendation of best options

Results: A comprehensive survey of the current public and

private free zone procedures and suggestion of



economies.

Deliverables:



involved



Conditionality:



translation)

A.4. Warehouse analysis and recommendation of best options

Results: A comprehensive survey of all type of warehouses

(public, private, specialized, petroleum and industrial)

and suggestion of enhancements along with best

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practices based on similar contexts, either in the

region or in type/size economies.

Deliverables:



involved



Conditionality:



translation)

A.5. Manifest analysis and recommendation of best options

Results: A comprehensive survey of all kind of import and

export manifests (sea, air, land) and suggestion of



economies.

Deliverables:



involved



Conditionality:



translation)

A.6. Transit analysis and recommendation of best options

Results: A comprehensive survey of all kind of transit (local and

international) and suggestion of enhancements along

with best practices based on similar contexts, either in

the region or in type/size economies.

Deliverables:



involved



Conditionality:



translation)

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A.7. Travelers’ halls analysis and recommendation of best options

Results: A comprehensive survey of all travelers’ halls and

suggestion of enhancements along with best practices

based on similar contexts, either in the region or in

type/size economies.

Deliverables:



involved



Conditionality: All deliverables should be approved by Beneficiary


translation)

A.8. Inspection analysis and recommendation of best options

Results: A comprehensive survey of all kind of inspections and




Deliverables:



involved





translation)

A.9. cars analysis and recommendation of best options

Results: A comprehensive survey of cars full cycle importation

(i.e. till being registered in the ministry of interior) and




Deliverables:



involved





translation)

A.10. Post clearance analysis and recommendation of best options

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Results: A comprehensive survey of Post clearance (auditing,

look for smuggling, risk management, archive

management) and suggestion of enhancements along



Deliverables:



involved



Conditionality:



translation)

A.11. Accounting analysis and electronic payment review

Results: A comprehensive survey of the current accounting

procedures (especially the online electronic payment)

and suggestion of enhancements along with best

practices based on similar contexts, either in the


Deliverables:



involved



Conditionality:

Results report should be approved by Beneficiary


translation)

A.12. Paperless and electronic government analysis and recommendation

Results: A comprehensive survey of paperless and electronic

government (especially governmental controls) and




Deliverables:



involved



19

Conditionality:



translation)

A.13. Single window recommendation

Results: Overview of the single window implementation with

best practices based on similar contexts, either in the


Deliverables:



involved



Conditionality:



translation)

A.14. IT analysis and recommendation of best options

Results: A comprehensive survey of all existing IT equipments

and network and suggestion of enhancements along



Deliverables:

(1)Document: Review of existing situation

(2)Document: Recommendations based on best

practices and suggested scenarios

Conditionality:



translation)

B. Regulatory framework for international trade environment

B.1. Survey of current legislation

Results: A comprehensive survey of the current legislative

status.

20

Deliverables:


situation

(2)Document/presentation: to be used for training all

the new civil service employees in Customs

administration.

Conditionality:


(Developed in or translated to: English, French and

Arabic)

B.2. Survey of model legislation (UNCITRAL based)

Results: Survey of model legislation developed using UNCITRAL

guidelines for similar contexts

Deliverables:

Document/presentation of preferred options

Conditionality:



Arabic)

B.3 Proposed new legislative amendments

C. Post-implementation monitoring capabilities

C.1 Building Metrics and defining KPIs

Results:

Deliverables:

Strategic and operational KPIs developed at different

levels within the organization

(1)Document/presentation: Guidelines for Performance

Management and follow-up

(2)Document/presentation: List of KPIs and

measurement methodologies to be used for trainings



translation)

Results: Amendments drafted based on proposed Model

legislation

Deliverables: (1)Document/Presentation of new legislative

amendments

(2)Document/presentation: to be used for training all

the new civil service employees in Customs

administration.



Arabic)

21

C.2 Building consensus (government buy-in)

Results:

Deliverables:

Dissemination of the KPIs and getting government to

buy-in the system and use

(1)Document/presentation: KPI dissemination of

procedures for various levels

(2)Document/presentation: to be used for trainings



translation)

D. Capacity building (the below fields are indicative and which, during the negotiation of the

Twinning contact, they will be fine tuned together with the Member State administration which will

award the contract and will be grouped as much as possible).

D.1. Import/Export study tour

Participants: The BC Project Leader, BC RTA and 5 Customs

employees working in relevant departments.

Objectives:

Location:

Study tour that minimum covers: declaration

acceptance and gates for import and export

EU Member States customs administrations

Duration:

Conditionality:

4 man/days per expert visit – 1 trip/expert

Visit program should be approved by Beneficiary

D.2. Warehouse study tour



Objectives:

Location:

Study tour that covers all types of warehouses (public,

private, specialized, petroleum and industrial)


Duration:

Conditionality:



D.3. Manifest study tour



Objectives:

Location:

Study tour that covers all types of manifests (land, sea

and air)


22

Duration:

Conditionality:

4man/days per expert visit – 1 trip/expert


D.4. Transit study tour



Objectives:

Location:

Study tour that covers all types of transit (local and

international)


Duration:

Conditionality:



D.5. Travelers’ halls study tour



Objectives:

Location:

Study tour that covers all types of travelers’ halls


Duration:

Conditionality:



D.6. Inspection study tour



Objectives:

Location:

Study tour that covers all kind of inspections


Duration:

Conditionality:



D.7. Post clearance study tour

D.8 Paperless and E-Government study tour



Objectives:

Location:

Study tour that minimum includes the implementation

of paperless customs in addition to the E-government

approach including governmental controls




Objectives:

Location:

Study tour that minimum covers: auditing and

documentary check, look for smuggling, risk

management and archive management


Duration:

Conditionality:



23

Duration:

Conditionality:



D.9. Single window study tour



Objectives:

Location:

Study tour that covers all aspects of Customs single

window


Duration:

Conditionality:



D.10. IT systems and call centers study tour

Participants: The BC Project Leader, BC RTA and 2 employees

working in the relevant field.

Objectives:

Location:

Study tour that includes: Server rooms (hardware,

software, security, domain management, …) ,

communication rooms, control rooms, UPS rooms and

call centers


Duration:

Conditionality:



D.11. Train the trainers

Results: Training of around 15 courses up to 65 employees (up

to 5 per course) on the design of the core curriculum

and on the delivery of the pilot courses (any training

can occur only after having the beneficiary approval of

its corresponding module deliverables).

Deliverables:

Certificates of completion, course evaluation reports

Conditionality:

Curricula should be approved by Beneficiary

E. Outreach communication plan

E.1. Communication Strategy and Action Plan

Results: Strategy and Action Plan for information dissemination

developed

Deliverables: A communication strategy document


24

E.2. Website improvement

Results: A Lebanese Customs Administration website further

developed and improved

Deliverables:

(1)Document/presentation: A web site design

(2) A new web site

Conditionality: After completing the components A, B and C of the 3.4

Activities paragraph;

All deliverables should be approved by Beneficiary.

E.3. Call center(s) recommendation

Results: A design for the required call center(s)

Deliverables:

Document/presentation explaining the design and

implementation of call center(s)

Conditionality:


E.4. Rebranding

Results: Evaluate current communication tools and material and

propose alternations where needed regarding graphic and

written messages to build capacities within the LCA.

Deliverables: Document/presentation detailing the proposed material(s)


E.5. workshops

Results: Organizing and implementation of a workshop

Deliverables:

Document/presentation/flyers/trader guide to acquire

stakeholders a clear understanding of the new

customs procedures and functionalities

Conditionality:

Workshops should be approved by beneficiary

F.1. Support, accompanying and contribution to the supplies procurement

Results: Review of the technical equipment specifications

(included in the process of modernizing customs

procedures) in order to successfully implement all the

suggestions of enhancements resulting from the

twinning fiche studies.

Technical Advisory work for the Tender Evaluation

25

3.5 Means / Input from the MS Partner Administration

Project leader, RTA, and Short term experts would have to be identified:

The Project Leader (PL) will manage the project team of selected member state(s) and co-

ordinate the implementation of activities. The project leader will establish and maintain

links between experts from member state and beneficiary state. He/she will ensure the

timely and effective implementation of the project and achievement of results, through

proposed activities. He/she will also be responsible for modifications of the work plan in

accordance with identification of needs in the life time of the project and in this way

ensures that experts input and distribution of their working days will be used in the most

efficient and effective way.

The BC Project Leader will manage a project team at the Lebanese side and will assure that

the decision makers at the Customs level will be informed properly on the implementation

of the project. He/she will ensure close co-operation and overall steering and coordination

of the project.The Resident Twinning Advisor (RTA) must have broad/general knowledge in

all the areas of customs, which will enable him/her to organize interdisciplinary team for

successful implementation of the project. He/she should be an employee of the EU

Customs Administration. The RTA will coordinate the day to day implementation of the

project Twinning project”. The achievements of the project results will be ensured by the

two project leaders from MS and BC.

Process and Provisional Acceptance of Supplies.

Participation as Observer in the Evaluation Committee

and Provisional Acceptance of supplies.

Deliverables: Technical equipment specifications reviewed

Technical Report of the Evaluation Process to the

Evaluation Committee

Technical report on the provisional acceptance of the

goods.

Conditionality: Specifications should be approved by Beneficiary

26

3.5.1 Profile of the Project Leader

Criteria for Assessment / Selection of the Project Leader

Education

- Minimum Bachelors Degree in Business Administration or

Economics, or other related areas relevant to this assignment

- Preferably Advanced University (Master’s Degree or equivalent) in

relevant discipline- business studies, Business Administration or

Management

Specific

Professional

Experience

- Minimum of 15 years of professional experience in a senior

management position in a customs administration in a Member

State

- Must have a broad knowledge of all components of the project

and good leadership skills.

- Sound knowledge of EU legislation and policies in relation to

customs control procedures

- Excellent knowledge of all processes in the area of customs

legislation and strengthening the administrative capacity of the

customs administration;

- High-ranking official with ability to call on short term experts in

support of the efficient implementation of the project;

- Overall understanding of the problems and solutions in the

sector;

- Capable of unblocking any problems at highest level;

International

Experience /

exposure

- Previous experience in management & international co-operation

will be an asset

Languages - Proficient in written & spoken English (French is a plus)

Computer Skills - Familiar with the use of Microsoft Office applications and Microsoft

Office Project

27

3.5.2 Profile of the RTA

Criteria for Assessment / Selection of the RTA

Education

- Minimum Bachelors Degree in Business Administration or

Economics, or other related areas relevant to this assignment

- Preferably Advanced University (Master’s Degree or equivalent) in

relevant discipline- business studies, Business Administration or

Management

Specific

Professional

Experience

- Minimum of 10 years professional experience in the field of

customs legislation and control procedures applied to the

control of imports and exports and the enforcement of relevant

customs legislation in a MS administration

- Must be a Civil servant or equivalent and has held senior

position in a customs administration.

- Ability to manage teams of experts and co-ordinate complex

and politically sensitive activities

- Ability to coordinate and organize the project activities, monitor

the delivery of the outputs according to the agreed timetable

and ensure the proper quality of the output.

- Ability to identify and liaise effectively with international and

national institutional stakeholders

- Full working knowledge of Modernized Customs standards and

legislation, with an excellent understanding of concept of Single

Window and other relevant issues

- Ability to manage change or customs reform processes

- Ability to supervise and co-ordinate all technical aspects of

project

- Excellent presentation, communication, reporting and drafting

skills

International

Experience /

exposure

- Previous experience in management & international co-operation

will be an asset

- Previous experience in delivering technical assistance in the

MENA region would be considered an advantage

-

Languages - Proficient in written & spoken English ( French is a plus)

Computer Skills - Familiar with the use of Microsoft Office applications, Microsoft

Office Project and the overall customs automated Infrastructure

3.5.3 Profile of the short-term experts of each activity

The RTA will be assisted by a number of short term experts identified according to the activities

mentioned in the point 3.4.

The role, profile and duration of the short term experts will be defined during the negotiations of

the work plan in accordance to the activities to be undertaken by both the RTA and the MS project

Leader.

28

4. Institutional Framework

The beneficiary of this project will be the Lebanese Customs Administration at the Ministry of

Finance.

The project steering committee will be chaired by the Lebanese Customs and composed of

representatives/members from the Contracting Authority in addition to a representative from the

Head of Delegation with observer status.

5. Budget

The Twinning project budget is € 2,000,000

6. Implementation Arrangements

6.1 Implementing Agency responsible for tendering, contracting and accounting

The Programme Administration Office (PAO) at the Presidency of the Council of Ministers will be in

charge of the coordination of all procurement, administrative and contractual activities in

accordance with the procedures defined in the Practical Guide to contract procedures financed from

the Practical Guide to Contract procedures for EU external actions, with the contact person being:

Mr. Mohamad Chreif

Chief Procurement Officer

Project Administration Office

Presidency of the Council of Ministers

Tallet el Serail – Beirut – Lebanon

P: +961-1-971432 ext. 127

F: +961-1-971428 ext. 123

E: [email protected]

6.2 Main counterpart in the BC

The Lebanese Customs Administration with the contact person being the BC Project Leader

Mr. Ghassan Hamzah

Director of main customs secretariat

Customs general receiver

4th floor – Arab bank building

Riyad el-Solh square – Beirut - Lebanon

P: +961-1- 972752


The Lebanese Customs Administration with the contact person being the BC Resident Technical

Advisor

mailto:[email protected]


29

Mr. Wassim Al-Khawand

Customs Component Manager

Customs Reform Programme

Office of the Minister of Finance

11th floor – Makassed Center

Mar Elias Street – Beirut - Lebanon

P: +961-1- 705020


6.3 Contracts

Expected number of contracts: 1 Twinning Contract

7. Execution Schedule (indicative)

7.1 Launching of the call for proposals March 2012

7.2 Start of project activities December 2012

7.3 Project completion December 2014

7.4 Duration of the execution period 24+3 months March 2015

8. Sustainability

The assistance required with this Twinning Fiche is meant to have a long term effect that will shape

the operations of the customs administrations meeting the efficiency and effectiveness criteria.

The competences built up throughout the project have to serve in long-term perspective the reform

in the customs administration and the aligning of the legal framework with the EU acquis in the

customs field. In this sense the establishment of the training unit is of utmost importance as it will

allow putting into the practice a mechanism, which ensures constant and continuous upgrade of the

skills and knowledge of the customs officers.

In addition, it is worth mentioning that this is not the first time that the LCA engages in long-term

modernization efforts. This activity has been on-going since 1993.

All capacity building activities will be established and implemented by LCA in order to ensure

continuity of the activities after the twinning expires.


30

9. Crosscutting issues

The proposed project will have a direct contribution to the principle of good governance and rule of

law among the institutional and private stakeholders through transparency of business rules and

regulations. In addition, it would minimize contact between trade and the public. The principle of

equal opportunity will be integrated into all stages of the project implementation and will provide

for equal opportunity for men and women to be treated equally despite of their race, nationality,

gender, origin, religious and political beliefs. In addition, national environmental standards will be

respected through introducing better controls of smuggling which will ultimately prevent trafficking

of hazardous and dangerous materials and thus increase environmental protection and the

emphasis on e-systems will reduce the demand for paper-based documentation within customs and

stakeholder communities. The trade community will start realizing that regulations, tariffs,

procedures, requirements and other information are more reliable, accurate and up-to-date when

retrieved electronically from its relevant source than from a paper-based version which can be out-

dated shortly after its publication.

Besides that, around 90% of the trainees are males while 70% of the calls to the Customs technical

team are female calls (this can be explained by the fact that males owe offices and are in charge of

field goods clearance while females are taking care of the IT part).

In the past, LCA’s gender balance was more in favor of males and the number of females

occupying middle management was limited. In recent recruitments, this situation improved

significantly.

This project will target both female and male customs officers for exposure to automated systems

and would provide equal opportunity for career enhancement.

10. Conditionality and sequencing

The implementation of the project requires the full commitment and participation of the senior

management of the Lebanese Customs Administration:

The Beneficiary shall:

Ensure that appropriate staff is made available to work with the EU twinning partner(s).

Counterparts for each of the objectives will be appointed to facilitate the implementation of

the respective activities of the twinning project;

Be responsible for the selection of trainees - in consultation with the EU experts - as well as

for providing the EU experts with legislation and any other documents necessary for the

implementation of the project;

Ensure that appropriate staff for training are made available, that trainees are released from

their duties during their training and that once trained they are retained in post; Shall

provide all possible assistance to solve any unforeseen problem that the EU twinning

partner(s) may face;

31

Fully support the RTA with accommodation, trainings rooms and logistical assistance.

Equally, the Twinning team, as led by the Twinning Resident Adviser must ensure full collaboration

with the counterparts at the institution. Communications should be open and consistent. The

Twinning team must carry out activities in the interest of the institution, and maintain its

involvement at all stages of activities.

32

ANNEXES TO PROJECT FICHE

1. Logical Framework Matrix

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