WCO news Recovery Renewal Resilience - n 94 | February 2021
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WCO news n°94 | February 2021 Recovery Renewal Resilience World Customs Organization mag.wcoomd.org
HIGHLIGHTS WCO news n° 94 February 2021 3
16 DOSSIER Dematerialization 34 DOSSIER
of Customs procedures: Feedback TradeTrust:
from Moroccan Customs accelerating the
digitalization of
international trade
38 DOSSIER Improving 50 PANORAMA Assessing
Strategic Trade Detection the cargo release process:
and Classification through Brazil shares its experience
Machine Learning
74 FOCUS Food and feed safety: identifying missing links
to unleash the full benefits of cooperation
4 TABLE OF CONTENTS
5 FLASH INFO
5 The WCO launches its new strategic planning cycle
6 Project TENTACLE: enhancing law enforcement
capacity to tackle money laundering and terrorism
financing
8 Environmental enforcement: overview of WCO latest
and future activities
10 New documents added to the WCO E-Commerce
Package
10 Data Analytics course available on CLiKC!
12 DOSSIER: RECOVERY, RENEWAL, RESILIENCE
13 A few words about the WCO theme for 2021
16 Dematerialization of Customs procedures: Feedback
from Moroccan Customs
22 Digitization of ATA Carnets: overview of the ICC pilot
project
26 How digital tools can improve compliance with SPS
measures
30 What the example of Montenegro’s new pre-arrival
processing capabilities tell us about Customs
performance measurement
34 TradeTrust: accelerating the digitalization of
international trade
38 Improving Strategic Trade Detection and Classification
through Machine Learning
42 Improving data sharing with blockchain
46 Malaysia Customs conducts online Factory Acceptance
Test Editor / Writer Laure Tempier
Publication Assistant Sylvie Degryse
47 PANORAMA Online subscriptions
http://www.wcoomd.org/en/media/wco-news-magazine/subscriptions.aspx
47 Waste trafficking: suggestions to improve enforcement Advertising
49 Single Window and Service Level Agreements facilitate
cross border trade in Oman Bernard Bessis bernard.bessis@bb-communication.com
Publisher
50 Assessing the cargo release process: Brazil shares its
World Customs Organization
experience Rue du Marché, 30, B-1210 Brussels, Belgium
Tel.: +32 (0)2 209 94 41 - Fax: +32 (0)2 209 92 62
55 POINT OF VIEW communication@wcoomd.org
www.wcoomd.org
55 Communications and collaboration tools: Editorial note
understanding the risks and opportunities WCO News is distributed free of charge in English and in French to Customs
administrations, international organizations, non-governmental organizations, the business
58 Harmonization of procedures is still work in progress community, and other interested readers. Opinions expressed in WCO News are those
of the contributors and do not necessarily reflect the official views of the World Customs
62 Transforming Customs operations management teams Organization. Contributions in English or French are welcome, but should be submitted
no later than 15 April 2021 for consideration. The WCO reserves the right to publish,
into strategic players not to publish, or to edit articles to ensure their conformity with the magazine’s editorial
policy and style. The WCO Communications Service is available to answer all requests for
64 FOCUS: PRODUCT QUALITY AND SAFETY submission of contributions, subscriptions, and any other enquiries relating to WCO News.
Please email communication@wcoomd.org.
Copyright © World Customs Organization
66 Operation STOP: Achievements and future prospects All rights reserved. Requests and enquiries concerning translation, reproduction and
70 Controlling product safety and security in times of adaptation rights should be addressed to copyright@wcoomd.org.
Acknowledgements The Editorial Team wishes to express its sincere thanks to all who
COVID-19 contributed to this publication.
Illustrations Our thanks also extend to all who provided photos, logos and drawings to
74 Food and feed safety: identifying missing links to illustrate this issue.
unleash the full benefits of cooperation Photo cover © Paulo Paiva / AGIF
Photo caption Containers carrying doses of one of the vaccines against COVID-19 are
78 Nigeria: two agencies, one mission unloaded at Guararapes International Airport (Brazil) on 18 January 2021.
Design www.inextremis.be
80 EVENTS
80 Technology in times of pandemic
FLASH INFO WCO news n° 94 February 2021 5
The WCO launches its new strategic
planning cycle
In December 2019, the WCO Policy Commission A WCO strategy clearly linked to the
clearly expressed the need to strengthen the linkage global environment
between the WCO Strategic Plan, a document that To implement this approach, a document presenting
sets the objectives and concrete targets to be met a variety of potential scenarios and Customs’
by WCO Members over a three-year period, and response to each of them will be produced. It will
the Environmental Scan, which offers an annual take the form of a new type of WCO Environmental
view of the main global trends currently impacting Scan that will cover a three-year period and will feed
Customs’ operations or which could affect them directly into the Strategic Plan to be established
in the future. In addition, through various WCO for the period 2022-2025. WCO Members and
working bodies, Members have sought the use the Secretariat will work together in drafting the
of a forward-looking methodology to prepare document and will also consult with private sector
more effectively for the upcoming challenges and representatives. To that end, in November 2020,
opportunities facing the Organization. the WCO Secretariat held a first round of four
virtual regional meetings, with two more planned for
Strategic foresight the remaining regions in 2021. Separate meetings
The future is difficult to predict, as clearly also took place between the WCO Secretariat’s
demonstrated by the COVID-19 pandemic. management team and the members of the WCO
However, this unpredictability is not an excuse to be Private Sector Consultative Group in January 2021.
unprepared, especially now. Most observers agree
that many managers and decision-makers from the The Strategic Plan 2022-2025 will be developed
private and public sectors could have better prepared on this basis, with the aim of setting priorities and
their organizations to respond to the current health targets for the Customs community. The WCO
crisis and the myriad and complex issues it has raised. approach can be summarized as follows:
Although strategic foresight is still a relatively Environmental Scan Identification of priorities Strategic Plan
unknown concept within Customs administrations,
it could represent the way forward by ensuring that Developed the year Members' and staff
Built on the outcomes of
Customs is equipped with the necessary regulatory before the next triennial involvement in the
the Environmental Scan
Strategic Plan process
and technical tools to respond adequately to a
wide range of plausible futures. To quote the
Organisation for Economic Co-operation and The next Environmental Scan and the Strategic Plan
Development (OECD), “strategic foresight is a 2022-2025 will enable the WCO Secretariat and
structured and systematic way of using ideas about WCO Members to commit jointly to specific shared
the future to anticipate and better prepare for change. targets. The underlying objective is to reinvigorate
It is about exploring different plausible futures that the Customs community and ensure that it moves
could arise, and the opportunities and challenges they forward, in harmony, to meet anticipated and
could present. We then use those ideas to make better unforeseen challenges.
decisions and act now.”1
The new Environmental Scan will be presented for
The strategic planning cycle which recently adoption to the June 2021 Policy Commission and
commenced at the WCO has this very objective in Council. The Strategic Plan 2022-2025 is expected
mind: using foresight methodologies that enable the to be endorsed one year later, at the June 2022
Organization to predict the future more accurately, Policy Commission and Council.
thus ensuring that Customs and the WCO keep
pace with the changing environment and continue More information
to serve economic operators and governments. http://www.wcoomd.org
1 https://www.oecd.org/strategic-foresight
6 Flash info
Project TENTACLE: enhancing law
enforcement capacity to tackle
money laundering and terrorism
financing
By the AML-CTF Programme Team, WCO Secretariat
Project TENTACLE, led by the WCO Secretariat and funded by the
U.S. Department of State - Bureau of International Narcotics and Law
Enforcement Affairs (DoS INL) -, aims to raise awareness of money
laundering activities and schemes in the Customs area, as well
as to augment the enforcement capabilities of Customs, financial
intelligence units (FIUs) and police services. A joint effort with
the Egmont Group for FIUs and with INTERPOL, Project TENTACLE
focuses its efforts on money laundering and terrorism financing in
Asia, Latin America, Africa, Eastern Europe and the Middle East.
Background money laundering, the WCO established its
The global movement of illicit proceeds and Anti-money Laundering and Counter-terrorism
terrorism financing are a widespread and Financing (AML-CTF) Programme in 2018 The
proliferating threat to global security and to AML-CTF Programme, which is the most recently
the stability of the global financial system. The established law enforcement programme in the
International Monetary Fund estimates that the Compliance and Enforcement Sub-Directorate,
amount of money laundered on an annual basis is was created and designed to strengthen Members’
between USD 1.6 trillion and USD 4 trillion, which capacity to combat money laundering and illicit
is equivalent to between 2 and 5 percent of global financial flows.
domestic product. The global economic impact of
terrorism is also alarming. From 2008 to 2018, the In January 2019, thanks to financial assistance
yearly global economic impact of terrorism was from the Japanese Customs Service CCF Fund,
approximately USD 58 billion1. the WCO AML- CTF Programme launched
Operation TENTACLE at the WCO Asia/Pacific
Transnational criminal organizations (TCOs) and Regional Workshop on Anti-money Laundering
terrorist organizations (TOs) perennially exploit and Terrorism Financing in Kashiwa, Japan. The
Customs nodes for the movement and laundering Workshop was attended by representatives of 19
of illicit money generated by their illegal activities. Customs services, INTERPOL and the FIU Japan.
Customs, as the first line of defense at external
borders and inland ports of entry, have a crucial From 26 August to 6 October 2019, a subsequent
mandate to identify and prevent the movement of Asia-Pacific operational effort was conducted with
smuggled currency/currency equivalents, gems/ the support of the 19 Customs services concerned,
precious metals and other items of monetary value and INTERPOL’s Financial Crimes Unit. This led to
across international borders. the seizure and detention of over $5 million in a
combination of currency and gold that were being
Being cognizant of this growing threat, and the smuggled across international borders by bad
primary role that Customs play in combatting
1 Global Terrorism Index, 2019.
WCO news n° 94 February 2021 7
Available publications
actors2. The operation also resulted in the arrest of • It highlights salient,
14 money launderers. non-nominal seizure WCO and the Egmont Group (2020).
events connected to Customs – FIU Cooperation Handbook
The success of Operation TENTACLE Asia-Pacific currency seizures, (available in English and French /
Spanish, Arabic, Portuguese and
led to the establishment of Project TENTACLE, a as well as seizures of
Russian version in preparation).
three (3)-year effort to combat money laundering currency equivalents,
and terrorism financing in the Customs arena. coins, gems and FATF and OECD (2010). International Best
precious metals, Practices: Detecting and Preventing the
Project TENTACLE an d any seizures Illicit Cross-Border Transportation of
Cash and Bearer Negotiable Instruments
Project TENTACLE, the primary operational effort connected to TBML.
(English, Arabic, Spanish, French).
of the AML/CTF Programme, is an initiative led by
the WCO Secretariat and aimed at combating bulk Customs-FIU Asia/Pacific Group on Money Laundering
cash smuggling and the smuggling of gems and Cooperation (2012). APG Typology Report on Trade
precious metals. Additionally, Project TENTACLE Handbook (CFCH) Based Money Laundering.
places emphasis on the advancement of money T he WCO and the WCO (2008). Customs Enforcement
laundering and terrorism financing investigations Egmont Group jointly Guidelines on Countering Money
following border seizure events, as well as developed the CFCH Laundering and Terrorist Financing
collaboration between Customs services and both to serve as a reference (English, Arabic).
FIUs and police services. The WCO Secretariat for Customs services http://www.wcoomd.org/en/topics/
conducted its first Project TENTACLE AML-CTF and FIUs in combating enforcement-and-compliance/activities-
Workshop for Africa in September 2020, and will money laundering and and-programmes/money-laundering-
hold another one for Latin American countries in terrorism financing and-terrorist-financing.aspx
collaboration with INTERPOL and the Egmont activities within the
Group in January 2021. Customs arena. The
WCO and Egmont Group simultaneously published
Project TENTACLE improves regional security the CFCH online on 27 March 2020.
by conducting capacity building, enforcement
operations and intelligence-enhancing efforts The CFCH aims to enhance global joint targeting
around the world. It not only aims to raise the of money laundering in the Customs sector, such
capabilities of Customs delivering training in as bulk currency smuggling, gem/precious metals
detection and investigative techniques, but also smuggling and TBML. Its objective is also to assist
strengthens members’ capabilities in financial Customs services and FIUs around the world in
crime intelligence and operational planning. The creating more robust and formalized structures to
operational results of TENTACLE are tracked and combat money laundering and terrorism financing
uploaded into the FinCRIME Online library. and develop better financial crime intelligence. The
printed versions of the CFCH will be available in
The FinCRIME Online Library the near future in English, French, Spanish, Arabic,
The FinCRIME Online library is the new WCO Portuguese and Russian.
Customs financial crime tool and intelligence
platform, hosted within the WCO Customs Operation TENTACLE capacity building
Enforcement Network (CEN). workshops
Project TENTACLE utilizes AML and CTF experts
• It serves as reference point for identified money to conduct training workshops designed to raise
laundering schemes that touch upon the Customs the skillsets of front-line Customs officers and
sector, such as the Black-market Peso Exchange, mid-level supervisors, as well as FIU analysts, in
bulk currency smuggling, and trade-based money tackling currency smuggling, gems/precious metals
laundering (TBML) schemes. smuggling and Trade Based Money Laundering
(TBML). The Project also draws upon experts
• It highlights new trends and mechanisms for from FIUs and INTERPOL to support its capacity
money laundering in the Customs realm, as well building efforts.
as concealment methods. Top Customs cases and
alerts are also highlighted. More information
enforcement@wcoomd.org
2 Individual or entity with the prior criminal conviction, or who has been sanctioned by the court or regulator.
8 Flash info
Environmental enforcement: overview
of WCO latest and future activities
By the Environment Programme team, WCO Secretariat
As part of the WCO Environment Programme, the Programme team in order to discuss their needs
WCO Secretariat is working to solidify the role of and opportunities for improvement.
Customs in environmental matters. Customs
administrations are regularly reminded of Illegal Wildlife Trade
the importance of implementing the A number of sub-Saharan African, Asian, and South
various environmental agreements American Customs administrations participating
in force, existing training material in the INAMA Project, which aims to enhance
is updated and new material Customs’ capacity to counter wildlife trafficking
developed, exhaustive capacity by ensuring that all trade in wild plants and animals
building is provided, and is legal, have been given the opportunity to follow
enforcement operations are training on the working methods used to combat
organized. fraud. These range from the identification of an
offence to the storage of seized assets, including
But more still needs to reporting, collecting and preserving evidence. This
be done to ensure the training has been developed and delivered as part
implementation of the of the WCO COPES Programme. To date, two
© AdobeStock
various environmental workshops have been organized and held online
agreements. United due to the COVID-19 pandemic.
Nations Secretar y-
General António An additional COPES workshop was organized
Guterres warned in for some administrations in sub-Saharan French
2019 that a “point of speaking Africa under the auspices of the
no-return” on climate International Consortium on Combating Wildlife
change was in sight,1 Crime (ICCWC), which comprises the WCO, the
and the World Economic CITES Secretariat, INTERPOL, the UNODC and
Forum repor ted in the World Bank. ICCWC partners also organized
its Global Risk Report several other webinars on a wide range of topics.
2020 that environmental
issues dominated as the The component of the INAMA Project focusing on
most pressing compared improving risk management practices in Malawi,
to other categories of Nigeria and Vietnam, and funded by GIZ (German
short and long-term risks (i.e. Agency for International Cooperation), came to
economic, geopolitical, societal and an end in December 2020. An online wrap-up
technological risks).2 meeting was organized with representatives of
Nigeria and Vietnam to review their experience
This article presents the latest activities and the progress achieved, and to discuss future
undertaken under the Environment Programme activities.
and provides an overview of future directions. The
aim is to encourage those Customs administrations The joint WCO-INTERPOL Operation THUNDER
wishing to strengthen their enforcement 2020 saw 103 countries rally against wildlife
capacities to engage with the WCO Environment crimes. The operation resulted in over 2,000
seizures of wildlife and forestry products, with
1 Manzanaro, S. S. 2019. “COP25 in Madrid: UN Secretary-General Guterres Says Planet Is ‘Close to a Point of No Return.’” Euronews, 3 December
2019. https://www.euronews.com/2019/12/02/live-un-leaders-anddelegates-arrive-in-madrid-for-the-climatechange-summit.
2 World Economic Forum. 2020, The Global Risks Report 2020, viewed 15 November 2020, http://www3.weforum.org/docs/WEF_Global_Risk_
Report_2020.pdf.
WCO news n° 94 February 2021 9
a total of 699 offenders apprehended. Seized Table 1 – Environment Programme Recent Activities
contraband included over 1.3 tonnes of ivory, Event type Number of Countries Number of Officers
over 1 tonne of pangolin scales (the equivalent represented participating
of approximately 1,700 pangolins), 56.2 tonnes
3 COPES Workshops 10 (INAMA) + 5 (ICCWC) 25 (INAMA) + 18 (ICCWC)
of marine products, 950 tonnes of timber (the
INAMA-GIZ component 2 5
equivalent of 87 truckloads), 15.9 tonnes of plants,
online wrap-up meeting
and over 45,500 live animal and plant specimens.
ICCWC Webinars 26 97
Illegal waste and substances controlled Operation THUNDER 103 116 National Contact
under the Montreal Protocol 2020 Points
Operation DEMETER, which dates back to Operation DEMETER VI 73 104 National Contact
2009, is perhaps the most well-known face of the Points
efforts deployed by the Customs community to
implement the provisions of the Basel Convention
on the Control of Transboundary Movements of
Hazardous Wastes and their Disposal, and the against illicit wildlife trade. Funding has been
Montreal Protocol on Substances that Deplete received to provide assistance to the Customs
the Ozone Layer, including the Kigali Amendment. administrations of Cameroon, Namibia, Nigeria,
This amendment commits countries to phasing Uganda, Indonesia, Lao PDR, Malaysia, Vietnam,
down the production and consumption of Brazil, Colombia, Ecuador, Guyana and Peru;
hydrofluorocarbons (HFCs), which contribute to
global warming and climate change. • support the Basel Convention’s Plastic Waste
Partnership5 which seeks to promote the
Operation DEMETER VI saw the participation of environmentally sound management of plastic
73 enforcement agencies from 71 countries, joining waste by collecting and analysing information
forces with regional and international partners. This on transboundary movements of plastic waste,
concerted enforcement effort resulted in a total of among other things;
131 seizures, including more than 99,000 tonnes of
waste and approximately 42 tonnes of substances • support the Environmental Network for
controlled by the Montreal Protocol. Optimizing Regulatory
Compliance on Illegal Traffic
A number of articles have been published in (ENFORCE)6 established by the Our Donors
recent issues of the WCO News3 on illicit trade Parties to the Basel Convention.
in waste, including one by the Secretariat of The WCO Secretariat became - The European
Commission’s Directorate
the Basel Convention explaining the latest a full member of the Network in
General for International
developments in the international rules governing 2020.
Development and
the transboundary movement of wastes, as well as
Cooperation (DEVCO)
the available support and activities.4 The issue was Get involved - The UK Government’s
also discussed extensively at recent sessions of the Member administrations wishing Department for
WCO Enforcement Committee. to receive support in the areas Environment, Food & Rural
mentioned above are invited Affairs (DEFRA)
The future to contac t the Environment - The U.S. Department
Throughout 2021, the WCO Secretariat plans Programme team. The team has of State’s Bureau of
to expand its Environment Programme activities adapted its working methods and International Narcotics
thanks to new funding. Among other things, it will: can provide support and training on and Law Enforcement
a remote basis. Affairs
- GIZ (German Agency for
• continue assisting countries with building their
International Cooperation)
enforcement capacities related to the fight More information
EnvironmentProg@wcoomd.org
3 See in particular the article by the WCO Secretariat on the need to collect more data in order to obtain a clear picture of illicit international waste
flows https://mag.wcoomd.org/magazine/wco-news-88/illegal-waste-trafficking-more-data-is-key-to-getting-a-better-grip-on-this-trade
4 https://mag.wcoomd.org/magazine/wco-news-91-february-2020/focus-on-the-transboundary-movements-of-wastes
5 http://www.basel.int/Implementation/Plasticwaste/PlasticWastePartnership/tabid/8096/Default.aspx
6 http://www.basel.int/Implementation/TechnicalAssistance/Partnerships/ENFORCE/Overview/tabid/4526/Default.aspx
10 Flash info
© AdobeStock
New documents added
to the WCO E-Commerce
Package
The WCO Council adopted the final documents missing from the
WCO E-Commerce Package at its December 2020 Session. The
documents are three Annexes to the Framework of Standards
Data Analytics
on Cross-Border E-Commerce Technical Specifications entitled
“Reference Datasets for Cross-Border E-Commerce”, “Revenue
Collection Approaches”, and “E-Commerce Stakeholders: Roles and
Responsibilities”.
course available
The document on “Reference Datasets for Cross-Border
E-Commerce” provides examples of datasets which Customs on CLiKC!
administrations are currently collecting, either as part of a pilot
project or when implementing the Framework, to effectively track,
target and identify small e-commerce shipments. An online data analytics training course on is now
available in English and French via the WCO CLiKC!
The “Revenue Collection Approaches” document describes and aims Platform in the eLearning section. Developed
to provide a better understanding of existing revenue collection thanks to Korea Customs funding, the course is
models. for Customs officials who wish to become entry-
level data analysts. It is structured to build a
The document on “E-Commerce Stakeholders: Roles and comprehensive knowledge of a data science, to
Responsibilities” provides a clear description of the roles and acquire practical knowledge and skills on handling
responsibilities of various e-commerce stakeholders to ensure data and to learn Python programming and the
transparent and predictable cross-border movement of goods. It basics of machine learning models.
does not place any additional obligations on stakeholders.
More information
The WCO Council also endorsed the E-Commerce Framework of https://clikc.wcoomd.org
Standards update/maintenance mechanism, and the first edition
of the Compendium of Case Studies on E-Commerce which includes
17 case studies offering practical examples of how Customs
administrations address priority issues, such as exchange of advance
electronic data, facilitation, safety, security and revenue collection
(including de minimis levels).
Finally, the Council took note of the capacity building activities
conducted by the Secretariat and of the key performance indicators
which had been released in Spring 2020 and which will enable
Customs administrations to assess their own level of implementation
of the Framework.
More information
http://www.wcoomd.org/en/topics/facilitation/instru-
ment-and-tools/frameworks-of-standards/ecommerce.aspxFighting the Epidemic With You
HEALTHY + Customs Control
Health Screening Disinfection Contactless Operation
Tel: +8610 62780909 Fax: +8610 62788896 E-mail: info@nuctech.com Follow us on: twitter.com/NuctechColtd12 DOSSIER
DOSSIER:
Recovery
Renewal
ResilienceWCO news n° 94 February 2021 13
© Angola Customs
A few words about the WCO
theme for 2021
By Kunio Mikuriya, WCO Secretary General
Each year, the WCO Secretariat chooses a theme that is relevant to the
international Customs community and its partners. The slogan chosen
for 2021 is “Customs bolstering Recovery, Renewal and Resilience for a
sustainable supply chain”. It invites Customs administrations to contribute to
finding a way out of the ongoing crisis generated by the COVID-19 pandemic
and to rebuilding the economy against the new backdrop of greater focus on
social distancing in daily life, working from home, digitization and the upsurge
in e-commerce. The collective efforts by the global Customs community to
address these challenges will renew the Customs system, make supply chains
more sustainable and help the global economy recover from the pandemic.
Recovery, Renewal and Resilience
Safeguarding smooth flows of legitimate trade by facilitating efficient
clearance processes will help support economic recovery from the current
crisis and ensure a fiscal basis with fair revenue collection. We know that
this cannot be done in isolation but rather requires the cooperation of all
border agencies, the private sector and other supply chain stakeholders.
Building on the lessons learned from our collaborative approach during
the crisis, we should look at the way goods are cleared at borders from a
fresh perspective, examine how we adapt workflows and procedures jointly
with our stakeholders, retain our capacity to be agile in the face of changing
business conditions and improve transparency about trade-related policy
actions and intentions.
In the face of new challenges and threats, and especially give the rise of
e-commerce, we need cutting-edge technological solutions and an innovative
approach to bring about renewal enabling Customs to adapt in the face of
changing demand - and to be future-proof. The COVID-19 pandemic has
shown the importance of major concepts which we have been promoting
for years, including all-digital and paperless clearance methods, the use of
technology to indicate which imports might merit a more detailed inspection,
and the implementation of automated, fast and effective controls.
People must, of course, remain at the heart of all strategies aimed at building
resilience. The most important asset of an organization is its workforce. To
achieve their missions, Customs administrations need a knowledgeable, well-
trained, well-led, properly supported and therefore resilient workforce. A
resilient workforce is one that is healthy (physically, mentally and emotionally),
has high morale, is adaptable, finds purpose and meaning in its duties, and is
both productive and engaged.14 Dossier
The top priority
right now is to
support the
distribution of
COVID-19 vaccines
which has started
being rolled out,
with the process
expected to last for
many months to
come.
Ensuring swift and reliable distribution As Customs is also called upon to verify the
of COVID-19 vaccines across borders safety of imported products and protect
The top priority right now is to support the citizens from counterfeit medical products,
distribution of COVID-19 vaccines which has the WCO Secretariat organized webinars with
started being rolled out, with the process expected vaccine suppliers, during which the latter shared
to last for many months to come. Customs information about vaccine production and
clearance of vaccines and related supplies and distribution processes, labelling and packaging
equipment must be carried out pre-arrival and requirements, and how to authenticate genuine
should follow the recommendations set out in the products.
“Resolution on the Role of Customs in Facilitating
the Cross-Border Movement of Situationally Last but not least, the Secretariat is organizing a
Critical Medicines and Vaccines”, adopted in second edition of Operation STOP, targeting the
December 2020 by the WCO Council. illicit trade in goods which are generally used to
diagnose or treat COVID-19. You can consult an
More guidance is provided in the joint statement article on the first edition of the Operation, as well
I recently issued with the Secretary General of as several articles on product quality, conformity
the International Civil Aviation Organization controls and cooperation between Customs and
(ICAO), Dr. Fang Li, and which outlines a number market surveillance agencies in the “Focus” section
of measures to be implemented by governments of this magazine.
with the objective of expediting air cargo transport
and distribution of COVID-19 vaccines. The WCO Dossier contents
Secretariat has also published Harmonized System Let me now turn to the actual contents of this
(HS) classification references for vaccines and Dossier. It starts with an article by Moroccan
related supplies and equipment. Customs explaining the Administration’s
modernization journey and how COVID-19
Tools and guidance materials issued by the WCO allowed it to take full stock of the changes
Secretariat, partner international organizations introduced.
and industry associations along with WCO
Members’ practices have been brought together This is followed by an article by the International
on a page on our website.1 Chamber of Commerce (ICC) on the digitalization
1 http://www.wcoomd.org/en/topics/facilitation/activities-and-programmes/natural-disaster/covid19-vaccines-distribution.aspxWCO news n° 94 February 2021 15
of ATA Carnet procedures. It explains how the ICC This is followed by an article introducing a
ATA Carnet digital system operates, provides a methodology for using machine learning to identify
general overview of its design and architecture, transactions involving strategic goods, though not
and gives a summary of progress made towards declared as such. Given the data-dense nature
full implementation of the system. of international trade transactions, Customs
administrations are in an excellent position to
Digitalization is also the subject of an article exploit advances in machine learning in order to
highlighting the need to review the current improve risk analysis, enforcement and outreach.
processes for implementation of the World I truly hope that this article will inspire Customs
Trade Organization ( W TO) Sanitar y and management and analyst teams.
Phytosanitary Agreement and explaining how
adoption of information technology to enhance The Inter-American Development Bank then gives
workflows would benefit both the import and us an update on CADENA, a project launched to
export economies, as well as trading partners. It enable the automatic exchange of information on
illustrates the fact that many digitization projects Authorized Economic Operators (AEO) between
are an opportunity to review procedures in Customs administrations having entered into a
place, enhance transparency and strengthen Mutual Recognition Agreement (MRA). It will be
compliance. of special interest to those considering the use of
blockchain, as the article draws some important
The fourth article addresses impact assessment lessons from the CADENA experience.
and is written by representatives of academia,
the private sector and Customs. The authors The last article sheds light on the capacity of
present Montenegro Customs’ pre-arrival Customs administrations to adapt to the current
processing procedure for authorized express constraints facing them. It explains how Malaysia
parcel operators and explain how they conducted Customs has conducted a Factory Acceptance
an impact assessment using a stakeholder needs Test (FAT) of its newly procured scanners and
analysis, from which key performance indicators radiation portal monitors (RPM) using virtual
were derived. communication tools.
A groundbreaking initiative by Singapore I would like to bring my comments to a close by
Infocomm Media Development Authority and sincerely thanking all the contributors to this
Singapore Customs is then presented in an Dossier, along with all the other contributors to
article on TradeTrust, a set of governance and the magazine. If we want to support governments
legal frameworks, document standards and a set and citizens as they try to emerge from the
of software components, all of which facilitate the current crisis and move towards a healthier, more
interoperability of electronic trade documents resilient and sustainable economic model, we must
and their exchange between different digital remain dynamic and strive for improvement. The
ecosystems. varied initiatives and experiences featured in this
magazine bear witness to the commitment by the
Customs and trade community to do just that.16 Dossier
Dematerialization of Customs
procedures: Feedback from Moroccan
Customs
By Moroccan Customs
© Moroccan Customs
With its focus fixed on the capacity consistently
to improve the service it provides to its users,
Moroccan Customs has long been counting recourse
to the new information and communications
technologies among its strategic options. Today,
the various projects undertaken to dematerialize
its procedures have culminated in a fresh boost for
trade facilitation. As of now, Customs clearance in
Morocco is taking on a new dimension: simplicity
of access and data use, speed, transparency,
traceability and security of transactions,
streamlining of control measures and reduction of
archiving costs. Dematerialization has gone hand in
hand with an alleviation of administrative formalities
which, together, will allow operators to reduce the
costs involved in processing Customs operations.
Approach adopted by Moroccan Complete dematerialization of the
Customs Customs clearance circuit
Dematerialization within Moroccan Customs was The launch of “paperless” Customs clearance was
in its infancy back in 1978, when the Customs preceded by the gradual rollout of legal, procedural
accounting system became computerized. and technical prerequisites, which called for a
However, the measure did not really take off until commitment from all the Customs services. Some
the introduction of the computerized Customs of the key objectives of the digital transformation
declaration. The full rollout of this feature became strategy adopted include time and cost optimization,
a reality in late 1991 when the Single Goods the streamlining of control measures, faster and
Declaration (SGD) would replace the dozens simplified communication between stakeholders,
of printed forms in use at the time. Business improved working conditions and complete
processes gradually became automated. Then, transparency of clearance operations.
1998 formed the backdrop to a key stage in the
automated Customs system: the introduction of In effect, the Customs clearance circuit of which
automatic selectivity processes. For almost 30 the Customs declaration forms a part, regardless
years, the computer system underpinning the of the nature of the Customs regime concerned,
Customs clearance circuit continued to evolve, has been completely reengineered. Once signed
ultimately embarking on a new era in 2019: the era electronically, the declaration together with any
of complete dematerialization. Economic operators annexes required by the Customs authority are
and government agencies overseeing international submitted online and registered automatically
trade played their part in this transition. Since 1 in the Automated Customs Network Database
January 2019, most of the stakeholders in the (BADR). The computer system sends registration
foreign trade ecosystem have been involved confirmation to the declarant. The control phase
in the gradual and evolving process of digital is subsequently initiated: the data from the
transformation. declaration is analysed and cross-checked, litigationWCO news n° 94 February 2021 17
proceedings might be lodged, electronic payment those parties are well documented. Some of the
is made and removal of the goods takes place. This services available online include consultation of
phase is also activated in the case of occasional the declaration circuit, access to the cost estimate
declarations. Those operations conducted on an for the Customs duties arising, notification of the
occasional basis and formerly processed manually release issued and auditing of Customs procedures
will henceforth be registered on the Customs with economic impact.
information system.
The online availability of these services has
Gone are the days of queueing in person at facilitated:
Customs counters. The agents responsible for
manual processing no longer need to look for and • reduced contact with customers: procedures
archive paper declaration records. Everything can governing declaration, control, payment and
be found on the system. Operational managers release all take place remotely, except in the event
can complete all their work activities from of physical verification;
their screens: documentary checks, valuation
control, payment of duties and taxes, litigation • the easing of non-Customs formalities: initiation
proceedings, etc. of non-Customs control measures is notified
and their results shared electronically with the
Inspectors have two screens at their disposal for authorities responsible for auditing, either from
viewing all the information essential for inspection system to system or by means of the Virtual
and payment purposes. They may call on the Single Window for Foreign Trade if the authority
services of central and regional teams to assist them concerned is connected to it;
in Customs clearance operations, including in the
use of the hardware and software tools available • the availability of real-time information via the
to them. mechanisms for logging histories, alerts and
electronic notifications;
A package of online services
As regards external users, a number of meetings • the transformation, on an organizational level,
were organized for the benefit of the forwarding of Customs clearance offices into remote
agents and economic operators. The benefits for monitoring offices;
Figure 1: Dematerialized Customs clearance circuit
1. Removal of
physical filing of
declaration
AUTOMATIC SELECTIVITY
DECLARANT Physical Admitted as
visit compliant
BADR
Automated Customs Network
Database MULTI-CHANNEL
PAYMENT
PORTNET
Data input Signature
Data registration Filing
ISSUANCE OF
Payment/ Accounting RELEASE
security documents
NON-CUSTOMS
Computerization
REGULATIONS
of exit voucher
REMOVAL OF
BANK COURT OF GENERAL GOODS
AUDITORS TREASURY18 Dossier
• the objective of minimizing human intervention: to facilitate better organization of work and a
some tasks relating to data consistency reduction in the time needed for processing Economic
verification, tasks involving assistance with operations; Customs officers have all the tools
operators will be
entering declarations and checks relating to they need for their work when they are equipped
mandatory documentation or to the management with a tablet; able to monitor
of Customs privileges and concessions are fully their Customs
automated; • to establish a risk management approach
based on effective systems for the collection
activities and
• the streamlining of control: the enforcement and analysis of information; one current study operations via a
and inspection services have at their disposal, in is focusing on the prospect of fine-tuning this digital platform
real time, all data and documentation relating to approach by incorporating predictive analysis
Customs clearance operations. and additional data; known as
“Diw@nati”. It will
PORTNET National Single Window • to make available to the customers/users a
provide access to
Functioning as an electronic platform for integrating digital channel for submitting their complaints
the information systems of all foreign trade and requests for information; this new method operations history,
operators at national and regional level (Customs, of communication, which forms part of the to the electronic
port authorities, port operators, shipping agents, governmental plan for a national claims portal,
freight forwarding agents, importers/exporters, facilitates increased traceability and monitoring
documents
oversight bodies, banks, etc.), this Single Window of customers’/users’ queries and the responses associated with
operates with a view to “going paperless” in foreign provided;
those operations,
trade operations.
• for economic operators (business leaders to various
Software tools interconnected with the initially) to monitor their Customs activities and online services,
BADR Customs clearance system operations closely, on a daily basis and in real
Software tools have been developed which, time, via a digital platform known as “Diw@nati”;
to Customs
together with the clearance system, shape an the platform will provide access to operations notifications,
ecosystem in which it is possible: history, to the electronic documents associated and to a service
with those operations (SGD, release, clearance
• to provide Customs officers with all the devices certificate, authorization, receipt, etc.), to various for messaging a
needed for mobile working, that is to say, for online services (settlement of Customs debts, Customs adviser.
completing tasks outside the office, in order application for a particular authorization, filing
Figure 2: “PORTNET” Single Window
Filing of SGD and
annexes scanned in
DECLARANT electronic format
National Single
Window for
Foreign Trade Ministry of
Procedures Foreign Trade
Port Foreign
authority exchange
offices
PORTNET
Local site
managers Banks
Technical
monitoring
servicesWCO news n° 94 February 2021 19
of a complaint), to Customs notifications, and to a Figure 3: Multi-channel payment
service for messaging a Customs adviser;
• to make available to the general public an
application known as “Bayyan Liy@”, which
E-BANKING
gives consumers the opportunity to ascertain
for themselves that certain products put up for
BANK LOCAL
sale are genuine by verifying a number of details SERVICES
(for instance, the trade name, producer/importer,
or the date of production/import); one particular
bonus of this application is its effectiveness in
combating smuggling and counterfeiting.
Multi-channel payment solutions ATM M-BANKING
Customers/users can settle their outstanding
Customs debts by various simple, swift and
secure payment methods. In addition to the online
method of payment by bank card, other methods Electronic signature
are proposed, including payment by online banking An electronic signature solution, certification for
(e-banking), by mobile phone (m-banking), by which is provided by the company Barid Al Maghrib,
automated teller machine or even through bank ascribes to documents bearing an electronic
branches and money transfer agencies (local signature on the online BADR clearance system
service points). the same legal value as the equivalent physical
documents signed by hand.
Irrespective of the payment method chosen, the
process remains the same: Using this solution makes it possible to guarantee:
• the operator selects the outstanding amounts • the identity of the signatory (identification/
that it wishes to pay and creates a shopping cart authentication of the signatory);
to that end; • the non-repudiation of the signed document by
• a payment code is automatically allocated to the the signatory (by this mechanism, challenges
relevant shopping basket; regarding the effectiveness of dispatch of digitally
• the code is used by the operator to proceed to signed documents can be avoided);
payment; • the integrity of the signed document (impossible
• as soon as the payment transaction has been to alter it).
confirmed, notification of the release is issued;
• on receipt of the debit notice from the bank Cessation of manual processing in
account, the transaction is recorded; respect of temporary admission and
• a receipt, generated automatically by the system, export declarations for hauliers’
is sent via e mail to the payer’s messaging address. vehicles
Since 1 October 2019, an electronic procedure has
Dematerialization of bank security replaced the paper-based system used for a long
documentation time by hauliers to obtain simplified temporary
The automated management of payments, rolled admission and export declarations for their
out since October 2017, translates into a time commercial use vehicles (known as “D17”s and
saving for economic operators relying on bank “D20”s). The paper versions of these declarations,
security documents. At their request, banks input previously supplied exclusively by the Association
the bank security directly into the BADR system Marocaine du Transport Routier International
without the need to issue the operators with a (Moroccan Association of International Road
document which would then be handed to the Transport), are therefore no longer in use.
Customs services.20 Dossier
Figure 4: Computerization of temporary admission and export declarations for TIR vehicles (triptychs)
D 20
MOROCCO OVERSEAS
D 17
Efficient time Selectivity Tackling Automatic
management informal clearance
arrangements
Those simplified declarations can be used only by has resulted in better oversight as well as simpler
those International Road Transport (TIR) operators formalities for travellers, whether they are
that are established in Morocco in relation to their Moroccan nationals residing overseas or foreign
operations involving: tourists.
• temporary export of their commercial use Computerized management of
vehicles registered in Morocco; litigation proceedings
• temporary admission of commercial use vehicles The process of litigation management, from the
registered overseas and belonging to foreign initial lodging of proceedings to their definitive
transport operators, on the basis of a partnership resolution (drafting of reports, settlements,
contract. judicial proceedings, recovery proceedings and
administrative proceedings), has also undergone
They are still required to submit the relevant computerization.
application (suppor ted by an unsecured
commitment) and obtain Customs approval. New data-related requirements
As part of the drive to establish a global control
The approved TIR operator is required to enter mechanism aimed at anticipating the Customs
into and electronically sign these declarations for clearance of goods and thereby expediting their
every operation involving temporary admission or exit from Customs premises, hauliers have been
export of commercial use vehicles. Their decision required, since 1 October 2019, to give specific
to participate in this arrangement is expedited details in their summary declarations, including the
by the advantages presented by the process’ four-digit tariff heading for the goods concerned.
dematerialization in terms of cost, time and
operational traceability. Moreover, Customs now has access to export
declarations for goods from the countries
Similarly, the computerization of the “D17” and signatories to the Agadir Agreement (namely, Egypt,
“D20” declaration documents presents its share Jordan, Tunisia and Morocco). It can, as a result,
of advantages for the Customs services inasmuch enhance its management of risk by comparing the
as it has made it easy for them to identify those data on the import and export declarations.
road hauliers operating internationally, to have
oversight of their fleet of vehicles and drivers as Dematerialization of certificates of
well as of their movements, to ramp up checks origin
through risk analysis, and ultimately to ensure In Morocco, certificates of origin are issued by
greater compliance with the regulatory deadlines the Customs Administration. Exporters simply
granted by Customs and better management of the apply for a certificate when drawing up the export
discharging of declarations. declaration. The computer system then collects
the data already entered on the declaration
Vehicles registered overseas and requests that the exporter input only the
Management of temporary admissions of outstanding information needed for it to process
vehicles registered overseas has been completely the application. This process reduces the risk of
overhauled. Its integration into the BADR system error.WCO news n° 94 February 2021 21
The electronic certificate created in this way is Customs clearance of goods that is appropriate for
registered on the Internet portal of Moroccan all logistics arrangements. The essential focus is to
Customs. Any administration seeking to verify the proceed with dematerialization and simplification
authenticity of a certificate issued by Morocco of Customs procedures, thereby nurturing the
therefore has only to consult the Customs website. emergence of multimodal transport solutions, that
is to say, combining transport by land, sea and air.
This procedure was phased in and completed in
January 2021 against a backdrop of important Conclusion
discussions and intense negotiations between In 2019, the key performance indicators highlighted
the teams at Moroccan Customs and their a significant improvement in the performance
counterparts in the other countries parties to of services. The revenues collected have, in
bilateral or multilateral agreements. The objective particular, risen by 2.88% in comparison with 2018.
has been to bring those partner countries on The current objective is to take advantage of the
board this project and to remove any obstacle transformation to improve performance indicators
to its successful conclusion (whether technical, in the areas of facilitation and control.
procedural or agreement-related). At the same
time, major IT-development work has commenced. It can already be stated that litigation management
One application has been developed to facilitate capacity has broadly improved. One of the reasons
the remote authentication of certificates of origin, for the increased pace of proceedings is the fact
providing assurances to the operator that those that all stages of litigation proceedings are now
certificates would not be rejected for reasons still registered on the Customs information system.
connected with such authentication.
The radical overhaul of the system by Moroccan
Electronic commerce and blockchain Customs in terms of its dematerialization has also
technology profoundly altered the relationship between the
In 2020, Moroccan Customs launched a Customs officer and the economic operator or its
cooperation project with DHL and the German representative. That relationship, which used to
International Cooperation Agency (GIZ Morocco) be a physical one, has, to all intents and purposes,
with a view to developing a platform relying on become a virtual one. These new management
blockchain technology for collecting the data of methods have unburdened operators of any
each party to an international transaction (traders, costly and needless trips, but have also provided
express mail service, Customs, other stakeholders) the means for Customs officers to work in a
and sharing it. Rooted in this ecosystem, procedures better environment. This does not mean that the
will be open to simplification and risk management communication channels have been muted. On the
will be enhanced, in particular as regards Customs contrary, they are stronger and more effective.
valuation.
COVID-19 has acted as a catalyst, increasing the
Becoming an indispensable logistics pace of change of stakeholders’ procedures and
hub for the region conduct in the international trade system. It has
By means of the projects for dematerializing the also allowed us to take full stock of the changes
foreign trade procedures, Morocco is setting its introduced. In the midst of a health crisis, Morocco
sights on becoming an indispensable logistics has encountered no problems in continuing to
hub for the region, especially as regards the source supplies of essential products and basic
North-South flows of goods. In that connection, necessities (such as food products, healthcare
a number of partnership agreements promoting products, medicines and hydrocarbons); and the
the Kingdom’s maritime, air and land transport effective transition from a management of flows
have been concluded between the main public and to a teleworking arrangement, facilitated by an
private stakeholders concerned. efficient computing ecosystem, has had a significant
and positive impact on the situation.
As a key player in these projects, Moroccan
Customs, in conjunction with professionals in the More information
relevant sectors, has introduced a procedure for the a.zdaik@douane.gov.ma22 Dossier
© AdobeStock
Digitization of ATA Carnets: overview
of the ICC pilot project
By Cyrille Bernard, Information System Architect, and Yuan Chai, ATA Carnet Manager,
International Chamber of Commerce
The ATA1 Carnet is an international Customs (IAs) in each country to process Carnet applications.
document that permits duty-free and tax-free Processing fees apply as well as a surety bond
temporary admission of most goods for up to one which will be returned if the Carnet has been used
year. It enables countries, businesses and border correctly. The International Chamber of Commerce
agencies to expedite the Customs process by (ICC), the institutional representative of over 45
utilizing unified, ready-to-use declaration forms and million companies worldwide, is responsible for
eliminating the lodging of a guarantee, bond or cash administering the global guarantee chain affiliated
deposit in the country of temporary importation. with all NGAs.
At the end of 2020, the ATA Carnet procedure has
been implemented in 78 countries and Customs Going digital
territories. In each one of them, the Customs The ATA Carnet is still today a paper-based
authority appoints a National Guaranteeing document, although its digitization (turning the
Association (NGA) which guarantees payment physical paper into an electronic file) and the
of import duties and taxes in cooperation with digitalization of the Carnet-based temporary
foreign NGAs around the world. Under the NGA’s admission process has been discussed for some
umbrella, there can be multiple issuing associations years now. The fact is that, given the complicated
1 ATA is an acronym of the French and English terms “Admission Temporaire/Temporary Admission”. The ATA Carnet is established under the Customs
Convention on the ATA Carnet for the temporary admission of goods (ATA Convention) and the Convention on Temporary Admission (Istanbul
Convention)You can also read
