​According to information from Brussels, Belgium, in March 2015, the 207/208 session of the World Customs Organization (WCO) Standing Technical Committee took place to prepare content for the meeting. Council of General Directors of Customs in June 2015.

The above sessions focused on discussing a number of important issues related to: The future of Customs; integrated supply chain management; Customs-Enterprise partnership; performance evaluation and e-commerce…

In order to prepare for the Draft content of the Customs modernization development plan for the period 2016-2020 and vision to 2030, right now, we have to start researching and implementing issues that are both significant and important. globally, regionally, and directly affect the interests and development of each WCO member country, including Vietnam in general and Vietnam's Customs in particular. On the basis of the report at the above meeting at the WCO, we will study the contents of the meeting and make recommendations for implementation in the coming time.

About the future of Customs

- The WCO Secretariat and chaired by Professor Hans-Michael Wolffgang, Faculty of Customs and Indirect Taxation, University of Münster, Germany gave a brief introduction to opportunities and challenges affecting customs operations. and kick off a session on the role and responsibilities of customs in the next 20-30 years.

- The Canadian Customs Representative mentioned a number of factors that are believed to be associated with the future of customs, such as new economic models, globalization, the Trade Facilitation Agreement as well as new forms of protection. ... In the future, although the role of the WCO will continue to set standards, however, in terms of form, the e-WCO can allow delegates from different countries to work together online from their own countries. Customer Service and Trade Facilitation are both well-understood issues and are the main drivers of customs operations today. With the need to handle a large volume of turnover in the condition of limited resources, customs officers need to have many skills to perform their duties, especially need to be equipped with knowledge of planning, change management. Therefore, customs authorities need to work closely with universities and the private sector to improve knowledge and experience.

- Representatives of the private sector said that according to the experience of working globally, there is a tendency to build manufacturing plants close to developing cities. The exchange of software across borders for domestic production is a popular trend, so the role of customs in this matter needs to be further studied. Single Window is a hot topic in the coming years.

- A representative from South Africa Customs emphasized the requirement for customs authorities of other countries to continue to modernize with WCO standards. According to the implementation experience of other countries, in addition to the requirement of the leaders' political determination, there are 5 important factors that are: 1. The initiative in establishing partnerships with the private sector, co-creation. (co-creation) is a very useful model; 2. Information technology; 3. Cooperation and mutual trust between Customs authorities; 4. Border management cooperation; 5. Implementation of the Trade Facilitation Agreement.

- A representative of WCO's Research and Strategy department said that a number of factors continue to play an important role for Customs in the future, which are: 1. International trade turnover has decreased slightly in recent times. this; 2. Regional integration is becoming more and more important; 3. A sharp increase in cross-border e-commerce; 4. The drop in oil prices in the past 6 months has led to a reduction in transportation costs and may provide a new impetus; 5. Ebola epidemic; 6. Informal trade… The representative also said that customs will likely continue in the direction of being a tax collector and combating illegal trade. As a result, there are indications that there is an increase in concentration related to passenger control and tax control.

- The WCO Standing Technical Committee (PTC) has concluded that it is difficult to accurately predict the future of Customs in the next 15 or 30 years, but we need to be prepared for change. rapidly today and in the future. Customs needs to continuously adjust and improve to diversify their functions and manage change. Partnerships with other Government agencies, cooperation with Customs authorities and cooperation with the private sector are seen as key to success. Co-creation will be an important factor to optimize the benefits of the parties in the Customs-Business partnership. The future of Customs continues to promote compliance and facilitate trade with the full support of automation technology. Cooperation on training will be key to helping Customs achieve their goals of modernization, effective control and trade facilitation.

At the same time, all comments said that the role of customs still holds an important position in supporting economic competition in the coming years, especially from the time of TFA negotiations. Close cooperation with the private sector, learning from their production and business processes will bring many benefits to customs. Technology plays a key role in the development of customs.

WCO tools and standards remain highly valued in the future, the most important of which is the Kyoto Convention. However, some topics need to be reflected or updated in the WCO tools and standards such as: E-commerce, system control, informal commerce, change management and cooperation with other international organizations.

While the Customs Strategy for the 21st Century (C21) is still well suited to kickstart discussions on the future of Customs, C21 still needs to be updated to better navigate some of the emerging issues that are currently emerging now.

About e-commerce
 
The WCO Secretariat presented a document summary on E-Commerce with a New Zealand Customs research report. This is a study conducted in response to the request of the Council and the Policy Committee in December 2013 in the face of the strong development of e-commerce and the risk of tax loss of the Customs authorities.
 
According to the research report, it is possible to define e-commerce in the context of the customs authority "A transaction done electronically, especially via the internet". E-commerce can include buying and selling of tangible and intangible goods, but this report only covers physical goods because of the relevance of cross-border freight.
 
- According to a recent study by Nielson, commissioned by the electronic payment system Paypal, looking at e-commerce transactions between the United States, the United Kingdom, Brazil, Germany, Australia and China in 2013. At six This market has 93.7 million consumers with about 105 billion USD buying goods from overseas websites using desktop computers or mobile phones. By 2018, it is predicted that the number of consumers will increase to 130 million with about $ 307 billion spent on purchases through e-commerce. This data shows that the loss of tax revenue for Customs authorities is very large.
 
- The EU delegate said that the concern for many Customs authorities is the loss of tax revenue from low-value shipments (including those with low tax numbers below the duty-free limit), which also leading to an incorrect orientation impact on manufacturers and retailers. The EU is considering the possibility of amending the law, especially measures applied to parcels and postal goods, which may abolish the VAT exemption for small-value shipments, as well as develop One Stop Shop system (on-site tax collection system).

- Another delegate shared some of the measures that their country's customs are taking to deal with e-commerce, including the new regulation issued in 2014 on control of cross-border e-commerce and payment requirements. the information about the order, payment and logistics before declaring on the customs declaration. Recalling the WCO's Baku statement on e-commerce in 2001, this delegate further emphasized the need to develop or possibly update the WCO's new strategy/approach on e-commerce to reflect its current state of development.
 
The Standing Technical Committee (PTC) concluded: Appreciate New Zealand's research report on e-commerce along with shared opinions of other countries on experiences, models, challenges and solutions. related to the effective collection of duties on low-value imports. PTC believes that the problem of increasing e-commerce is a reality and customs needs to take measures to facilitate and effectively collect taxes, while ensuring supply chain security and ensuring security. consumer and social protection. The PTC believes that the WCO should continue to study this issue for discussion in the next meeting, and encourage countries to continue sharing experiences on this issue.
 
About integrated supply chain management (ISCM)
 
- A representative from the Netherlands Customs presented and explained the context of the introduction of the WCO guidelines on Integrated Supply Chain Management (ISCM Guidelines) (which were issued in June 2004, but up to now). has not been officially declared by countries).

Some concepts to build an end-to-end integrated supply chain management (end-to-end integrated supply chain management) are also covered, such as: Connection and exchange information between Customs authorities, using Unique Shipment Parameters (UCRs), information technology systems and to the extent permitted by law.

Following that, Dutch Customs presented a documentary video “Pushing Boundaries” from Dutch Customs’ experience in creating reliable trade flows – an approach of 100% risk control, mainly based on the background and actual situation of enterprises/traders, information exchange and mutual recognition between customs and customs. On the basis of the discussions, the Standing Technical Committee (PTC) asked the delegates to discuss in groups based on 4 questions:

i) How to set up simple and convenient customs procedures in a closed way from the beginning to the end, with the application method as indicated in the ISCM guide with the participation of partners Enterprise?

ii) How to strengthen connectivity and information exchange between customs authorities to integrate control and facilitate trade?

iii) How can key elements of the Integrated Supply Chain Management (ISCM) guidance support regional integration including regional SW initiatives and integrated border management?

iv) Does the Trade Facilitation Agreement (TFA) and other standards place any requirement on the revision/updation of the WCO guidance on ISCM and the Guidebook on Integrated Supply Chain Management. What role can the WCO's ISCM (ISCM) play in the implementation of the WTO TFA?

The discussions pointed out the key factors to develop the supply chain with an authorized partner and simple and integrated customs procedures, including: The will of the leadership along with the interests of the customers. the party is identified; the legal system is strong enough; reliable information exchange system; apply advance information; correct data; good risk analysis background; uniform shipment parameter system; The system can communicate and connect well with the business. A Trader Identifier (TIN) has been identified as an important tool in the context of facilitating cross-border exchanges between authorized counterparties.

Comments on the Guidelines for Integrated Supply Chain Management (ISCM) had ideas far beyond reality at the time of publication, so many members still do not really understand or still have to continue to study. Study the challenges and problems of applying this guide. However, it is also acknowledged that Integrated Supply Chain Management (ISCM) is mainly based on the revised Kyoto Convention and there have been a number of projects/initiatives implemented around the world for some trade routes. , so it needs to continue to be promoted and developed sustainably.

Regarding the connection and exchange of information between Customs authorities, it is suggested that member countries have implemented many mechanisms, such as Administrative Support Agreement, Free Trade Agreement and Mutual recognition agreement, which supported and facilitated the exchange of information/data.

Comments also suggested that some WCO tools and standards such as GNC could also be more supportive of this exchange in a standard and harmonized way. At the same time, the integration of the Region will also support integrated supply chain management, and in turn it will further strengthen regional initiatives such as the implementation of AEO, Single Window and Partnership programs. border management.

The PTC appreciated the importance of the Integrated Supply Chain Management (ISCM) guideline in the context of enhanced trade facilitation and regional integration, and therefore recognized the need to exploit this direction. That lead will become larger in order to create a simple, integrated and closed customs procedure system and thereby facilitate cross-border trade. Considering that it is necessary to further strengthen the promotion of the Guidelines on Integrated Supply Chain Management (ISCM) to member countries, while recognizing the initiatives of a number of countries that have cooperated to successfully implement this approach, this reason; The WCO SAFE Working Group will likely consider updating/revising the ISCM in the next SAFE Framework revision cycle, in the context of the Trade Facilitation Agreement and other instruments.

About the Customs-Business partnership

The WCO Secretariat has requested the Policy Committee to develop a guidance document for countries that have formed a customs-business partnership, in addition to the completed Part I. The ideas presented in this guide are mainly based on the initiatives and experiences of a number of countries that have developed good partnerships. These ideas can be used selectively according to the actual situation of the existing relationship and looking for new developments in the future. The Secretariat also called on countries to continue adding suggestions and examples to make the guidance richer and more practical before it is presented to the Council in June 2015.

Some ideas were highly appreciated by the delegates to share their implemented experiences such as: Co-creation (co-creation); Center of Excellence and Expertise - will handle customs clearance for each type of goods such as Textiles, chemicals, electronics, this allows Fast customs clearance due to highly professional and experienced staff in handling one type of goods.

Regarding the impact of the partnership on the exchange of trade information (leveraging partnership for trade intelligence), a delegate from the private sector suggested that customs should consider sharing trade information, if possible, with trusted businesses, to assist them in applying control measures on businesses and thereby supporting Customs in compliance management and enforcement.

Regarding the General Observation Group on Integrity, some delegates found this idea very useful, and the Process Observation and Analysis Group could be expanded to identify gaps and obstacles for cross-border trade in the customs clearance process…
While appreciating some of the new ideas in the guidelines, some participants suggested that two issues should be carefully considered in order to avoid conflicts of interests and priorities: One is to hire experts from the region. privately made for customs; the second is to send a customs officer to work for a time in the private sector. Some delegates suggested that these ideas should be exploited, but with a mechanism to ensure transparency, in accordance with the law and to be strictly and clearly managed.

The PTC has approved the draft Advanced Pillar of C2B partnership Guidance with several proposed considerations/revisions as noted above, with the note that this is a “living” document that can be further revised/updated, at the same time calling on countries to send examples to illustrate the ideas outlined in this guide.

On regional integration:

- The Standing Technical Committee (PTC) has agreed that the WCO should maintain its current position as a place to set Customs standards and standards and that the WCO will continue to play a supporting role for the Association's projects. regional integration, connecting needs and resources, promoting the implementation of tools and standards, possibly creating new products to support regional integration.

The WCO Secretariat reports to the PTC on the work done related to Regional Integration or there are studies on this issue, for example: Study “Facilitation of goods in transit to support economic competition. and Regional Integration”; “Customs of other countries operate according to the model of the Customs Union system”; “Trade Facilitation in Regional Trade Agreements”, Global Conference with Universities on Customs PICARD Conference 2013 on the topic of regional integration… Some important issues of regional integration such as transit, has been compiled into a manual.

- Many delegates shared experiences of other countries such as implementing SW system, transit corridor system, training, exercises, one-stop customs, Customs-Customs cooperation, information exchange , Regional AEO, data harmonization and WCO support for capacity building centers. Some countries have proposed topics for discussion next June: Connecting SW ports, Cooperation in Border Management, Transit and Transit Corridors, Comparison of Regional Integration Projects, Portfolio Harmonization taxation, common trade records, Linking National Trade Facilitation Committees into regional mechanisms, legislation for Customs unions, other policy areas such as domestic taxes, membership members of regional economic communities, differences in accession methods to RKC, Closed supply chains and customs-business partnerships in the regional context…

(The article uses the report of the WCO and the representative of Vietnam Customs at the WCO, June 2015)

Thai Quang - Risk Management Department
Source: General Department of Customs