VI FIAM

The Amazon and Its Borders in the Context of Regional Integration and External Trade

Coordinated Border Management: From Theory to Practice

Mariya Polner Research Analyst

Research and Strategies Unit World Customs Organization mariya.polner@wcoomd.org

Manaus, Brazil, 27 October 2011

*excludes the European Union which, since July 2007, has rights akin to those of a WCO Member for matters falling

within its competences as an interim measure.

A Brief Intro - the WCO 177* Members divided into 6 regions

responsible for processing 98% of international trade

Europe

Americas

Asia Pacific

East& Southern

Africa

North Africa,

Near and Middle

East

West and Central

Africa

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WCO facts

As of 01 January 2011 : 177 Members*

Two official languages : English and French**

Headquarters : Brussels, Belgium

Democratic traditions : One Member = One vote

* excludes the European Union which, since July 2007, has rights akin to those of a WCO Member for matters falling within its competences as an interim measure

** increased use of Arabic, Portuguese, Russian and Spanish as ‘working’ languages

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Customs – a key government agency

• Supports the achievement of national economic, fiscal, security, and social development objectives;

• Monitors the movement of goods, conveyances and people across

frontiers; • Enforces compliance with international trade agreements and

gathers trade statistics; • Contributes directly to national and international efforts to combat

customs offences and cross-border crime.

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What do we know about border challenges?

• Political transformation (‘internalisation’, ‘externalisation’ and ‘bridging’);

• Security demand as a policy response to 9/11 and the activities of international terrorist and criminal groups;

• Changes in operational environment (economic shocks, natural disasters, growing competition etc.) => border agencies under pressure for more effectiveness and efficiency

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•Manifest •Bills of Lading •Sea/AW Bill •Container Plans

•Invoice •Packing List •Declaration •Delivery Note

Storage

Air, Sea, Land International

Transport Customs Port

Pay Taxes Clear Customs Release Goods

Ship’s Documents

Certificates Of Origin

Chamber of Commerce

Foreign Chambers Commerce

Overseas Embassies

Post/ Courier

“Legal Invoices”

DOMESTIC SUPPLY CHAIN

•Raw Materials •Packaging •Transport •Storage

•Quotations •P.O.s •Delivery Notes •Con. Notes •Invoices •Statements

•Payments •Remittance Advice

IMPORTER

MANUFACTURER

EXPORTER FOREIGN

BUYER

•Licenses •Certificates •Government Approvals

•Certificates Of Origin •Form A •EUR.1

Government Departments & PIAs

Finance Ministry

Port

•Invoice •Packing List •Declaration •Delivery Note

Pay Taxes Clear Customs Release to Port

Port Processes •Internal Transport •Storage •Container Handling •Loading

Port Customs

Receive Goods

Bank

•P.O. •Contract Terms •Delivery Instructions •L.O.C.

Pay Bank

•L.O.C. •Packing List •Invoice LOC Courier

LOC Approval

Shipping Documents

Book/Confirm Transport

•Licenses •Certificates •Government Approvals

Customs

The world we live in

Source: WB, 2011 6

From the operational perspective… – Duplication of inspections and controls at the border => a need

to ensure that borders are managed with maximum effectiveness and efficiency

– Complicated procedures, corruption problems, too many

controls, poor co-ordination and organisation of border control processes, limited information sharing among border agencies

• If not properly managed:

– Failure to achieve goals (revenue, security, community protection, anti-smuggling, etc.)

– slow clearance times – delays to travellers – Increased Trade Transaction Costs (TTC)

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What is the focus of this presentation?

• Defining the meaning of CBM through its evolution;

• Institutional (intra-service and inter-service) arrangements;

• Operational (international) agreements.

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The continuum of inter-governmental integration

Source: Institute of Policy Studies, 2008.

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WCO: CBM as a guiding principle

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Convention on Simplification and Harmonization of Customs Procedures (Revised Kyoto Convention; 1999)

• Adopted in 1973, revised in 1999, entered into force in 2006 - 600 legal provisions

• 76 Contracting Parties (accession

process ongoing in many countries) • Observers (WCO Members, UN

Members – incl. WTO Members, governmental and non-governmental organisations)

• Blueprint for Modern Customs procedures

• effective controls • facilitate legitimate trade

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RKC provisions related to CBM Standard 3.3. Where Customs offices are located at a common border crossing, the Customs administrations concerned shall correlate the business hours and the competence of those offices. Transitional Standard 3.4. At common border crossings, the Customs administrations concerned shall, whenever possible, operate joint controls. Transitional Standard 3.5. Where the Customs intend to establish a new Customs office or to convert an existing one at a common border crossing, they shall, wherever possible, co-operate with the neighbouring Customs to establish a juxtaposed Customs office to facilitate joint controls. Transitional Standard 3.35 If the goods must be inspected by other competent authorities and the Customs also schedules an examination, the Customs shall ensure that the inspections are co-ordinated and, if possible, carried out at the same time. Standard 6.7. The Customs shall seek to co-operate with other Customs administrations and seek to conclude mutual administrative assistance agreements to enhance Customs control. Standard 7.3. The introduction of information technology shall be carried out in consultation with all relevant parties directly affected, to the greatest extent possible. Standard 7.4. New or revised national legislation shall provide for: – electronic commerce methods as an alternative to paper-based documentary requirements; – electronic as well as paper-based authentication methods; – the right of the Customs to retain information for their own use and, as appropriate, to exchange such information with other

Customs administrations and all other legally approved parties by means of electronic commerce techniques.

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The SAFE Framework of Standards to Secure and Facilitate Global Trade (rev.2007)

– Certainty and predictability at a global level

– Integrated supply chain management for all transport modes

– Allow Customs to meet the challenges and opportunities of the 21st Century

– Closer cooperation among Customs administrations

– Stronger Customs-to-Business cooperation

– Tangible benefits for businesses – Seamless movement of goods

SAFE Objectives

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SAFE provisions related to CBM Pillar 1: Customs-to-Customs Network Arrangements, Standard 1.

1.3.8. Single Window

Governments should develop co-operative arrangements between Customs and other Government agencies involved in international trade in order to facilitate the seamless transfer of international trade data (Single Window concept) and to exchange risk intelligence at both national and international levels.

1.3.9. Integrated Border Management

Similarly, governments should develop co-operative arrangements among their government agencies that are involved in international trade. Governments should also work with the border agencies of neighbouring foreign governments in order to maximize the harmonization of border control functions. The implementation of such co-operative arrangements could address border issues such as national and international cooperation and co-ordination and the adoption of international standards. Integrated border management should lead to the facilitation of trade through a secure supply chain.

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CBM by other stakeholders

Integrated Border Management

Collaborative Border Management

Comprehensive Border Management

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Fit for Purpose? Intra-service arrangements

MOF 50%

CA 25%

RA 22%

BSA 2%

MOI 1%

Institutional arrangements (global)

MOF

CA

RA

BSA

MOI

Institutional

arrangements

Quantity Percentage

MOF 88 50%

CA 45 25%

RA 39 22%

BSA 3 2%

MOI 2 1%

TOTAL 177

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Inter-service arrangements (international context): OSBPs

What: Cross-border arrangements with neighbouring countries;

When: Established around 60 years ago (in Western Europe);

Why: To increase effectiveness of border crossings, reduce number of stops

and participating agencies;

How: Based on principle of extraterritoriality to be embedded in

appropriate legislation;

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Case study 1. Juxtaposed facilities

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Juxtaposed facilities: Swiss-French border

• Juxtaposed office (Customs only) in the country of import;

• Based on the bilateral Convention of 1960;

• Commercial and transit goods processed;

• Passenger traffic excluded;

• Shared (juxtaposed) facilities in the country of import – mirror scheme;

• If X-ray inspection needed, it is normally done by the importing Customs.

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Juxtaposed office in the country of import – Geneva land border

Swiss territory French territory

Export from Switzerland

II. Import Swiss CU

I. Export French CU

Juxtaposed office

Juxtaposed office

I. Export Swiss CU

II. Import French CU

NB: does not include BG

Export from France

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Case study 2. Common one country facility: Swiss-German border

• Major traffic – commercial trucks: geographical limitations taken into

account;

• Physical location of the shared office on the territory of one of the

countries (Germany);

• Shared offices for import/export and for transit;

• Legal framework: bilateral Convention (1961);

• High level of trust needed.

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One country office: Basel land border

Import transit

Passenger traffic

HQ Import

HQ Export

Export transit

To Germany

To Switzerland

Source, FCA 2010. 22

Common facility: Basel land border

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Intra-service arrangements (international context): CCPDs*

Legal framework: Schengen Agreement and Convention on its implementation

Reason: to reinforce police and judicial cooperation

Areas of operation: public security, fight against illicit trafficking and illicit migration, trans-border delicts.

Mission:

• Gather and exchange information;

• Cooperate in order to treat foreigners in irregular situations;

• Execute readmission of the asylum seekers with a non-suit status, as well as asylum seekers whose procedure is in course, and who are located on the territory of one of the Member states;

• Coordinate joint measures for surveillance of the border area.

Established in (since 1997): Offenburg and Kehl (DE-FR), Tournai (FR-BE), Vintimille

(FR-IT), Chiasso (CH-IT), Kalotina (BG-RS).

*CCPD – Customs-Police Cooperation Center

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Case study 3 (CCPD-Geneva)

• Staff:

– French Customs, Swiss Customs and Border Guards, French Police and Swiss Cantonal Police, French Gendarmerie and Swiss Federal Police.

• More Police officers than Customs officers.

• Funding: equally from both sides.

• Representation: National Coordinator => consensual decision-making

• Operability: 24/7, all year round.

• Information exchange:

– Defined time frame

– No direct access to each others’ databases => special format

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Challenges for CBM • The multiplicity of agencies at the border

• National priorities

• Financial and staffing limitations

• National and international cooperation

• Adaptation of international standards

• Transparency concerning legislation, regulations and procedures

• Coordination of controls with neighbouring countries and trading partners

• Complex legal issues, both legislative and contractual

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Conclusion

• CBM as a philosophy, not operational guidelines;

• CBM can take place on different levels (intra/inter/international);

• It should encompass as many actors as possible depending on the major

issues countries face at the border;

• A necessity in creation of particular structures;

• A need to learn more about other examples of CBM implementation:

Single Window, common risk management and targeting centres, joint

operations etc.

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Thank you for your attention!

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