REPORT OF THE CAPACITY BUILDING COMMITTEE

Transcription

1 WORLD CUSTOMS ORGANIZATION ORGANISATION MONDIALE DES DOUANES Established in 1952 as the Customs Co-operation Council Créée en 1952 sous le nom de Conseil de coopération douanière CAPACITY BUILDING COMMITTEE - 1 st Session - HC0008E1a Brussels, 22 November REPORT OF THE CAPACITY BUILDING COMMITTEE 1. The World Customs Organization (WCO) Capacity Building Committee held its 1 st Session in Brussels from Monday 27 to Wednesday 29 September The list of participants was reproduced at Annex I to this Report. 2. The WCO Secretary General welcomed all attendees and reflected on the WCO capacity building journey, including recent developments in terms of the 2003 Capacity Building Strategy. He also mentioned external influences such as the World Trade Organization (WTO) Doha Round of negotiations on trade facilitation as well as supply chain security. Against a summary of the background to WCO capacity building developments, he then outlined current work and the need for continuing Member participation. 3. He noted that the direction of capacity building was broadening and the WCO was mobilizing to respond to crises such as the global financial crisis, to set up access to best practices and standards and to enable Members to assist each other, inter alia through tripartite arrangements. Specific future work comprised a focus on performance measurement, including Columbus Phase 3 and time release studies, the implementation of the Customs in the 21 st Century strategy paper and regional work on risk management, Globally Networked Customs (GNC) and Co-ordinated Border Management (CBM). He concluded by stating that this work would ultimately lead toward greater professionalism of Customs. 4. The Director, Capacity Building conducted the election of office bearers for the 1 st Session. At the proposal of the Delegate of Australia, seconded by the Delegate of Mexico, the Delegate of Canada was elected Chairperson of the Capacity Building Committee. At the proposal of the Delegate of Norway, seconded by the Delegate of Brazil, the Delegate of China was elected Vice-Chairperson of the Capacity Building Committee. I. ADOPTION OF THE AGENDA 5. The draft Agenda, circulated as Doc. HC0001, was adopted, subject to the inclusion in Item XIV (Other Business) of the question of wider availability of Committee documents, as explained in a Secretariat non-paper. The Agenda, thus amended with the relevant nonpaper, was reproduced at Annex II hereto. Copyright 2010 World Customs Organization. All rights reserved. Requests and inquiries concerning translation, reproduction and adaptation rights should be addressed to copyright@wcoomd.org.

2 HC0008E1a 6. His Excellency Mr. Alaa Batayneh, Minister for Transport -Jordan, was invited to address the Capacity Building Committee. Minister Batayneh acknowledged the work of the WCO Secretariat and shared information on Customs modernization progress and projects underway in Jordan. 7. Her Excellency Ms. Marie Gosset, Ambassador of Cote D Ivoire, was invited to address the Capacity Building Committee. Ambassador Gosset linked the strategic importance of Customs influence in World Trade Organization trade facilitation goals under the Doha Round of Agreements and subsequent improved resistance to severe financial changes. 8. Interventions by several participants took the floor to thank the speakers and noted that coordination, tailor-made capacity building and human capital were essential to sustainable capacity building. The Chairperson thanked the speakers and participants. II. WCO CAPACITY BUILDING: CURRENT STATUS, OPPORTUNITIES AND CHALLENGES 9. The Director Capacity Building referred to Doc. HC0002, which provided background to the WCO Capacity Building Directorate and its mandate. The Director reminded the meeting about the eight key components of the Capacity Building Strategy and the ten-step process to implement the WCO global capacity building infrastructure. Regionalization, tri-partite and multi-partite arrangements, long-term financing and management and leadership were identified as key elements for success. 10. A Delegate agreed that long-term funding was a vital contribution to capacity building. For this reason his country, Sweden, had identified the fact that tools, instruments and materials should be available in the language of the country and it therefore provided financial assistance to support wider communication of WCO resources. 11. The Delegate from Japan referred to the Director s point about long-term financing and referred to his country s voluntary contribution to the Customs Cooperation Fund since More detailed information on this was available in a non-paper circulated for the benefit of the meeting. 12. Several Delegates concurred with the Director s comments concerning the importance of leadership and coordination. Particular interest was shown in the proposed WCO Experts Database. 13. The Director responded by saying the Secretariat was developing a pool of experts in order to manage co-ordination and accreditation and thereby consistent delivery of WCO materials. An experts requirement matrix for Capacity Building activities in 2010/2011 had recently been sent out to Members possessing accredited experts. STRATEGIC DISCUSSION III. PANEL 1: INSTITUTIONAL CAPACITY BUILDING 14. The Chairperson invited the WCO Council Chairperson to moderate panel presentations and discussions on aligning Customs efforts with the G20 financial and economic recovery goals for maximum impact in the Customs context, together with linking these efforts to the United Nations Millennium Development Goals. 2.

3 HC0008E1a 15. The Council Chairperson introduced three speakers to the meeting, namely Mr. Melaku Fenta from the Ethiopian Revenues and Customs Authority (ERCA), Mr. Antonis Kastrissianakis from TAXUD (European Commission) and Ms. Carol West from the Private Sector Consultative Group (PSCG). He anticipated that speakers would link the global capacity building development Agenda with trade development, from the perspective of how Customs reform and modernization had a direct impact. 16. Mr. Fenta summarized the ERCA approach to tackling its reform Agenda, which formed part of a total of 14 areas across government. ERCA was using five strategies to implement Customs modernization. Initial positive experience was being reported under its Cooperation, Partnership and External Strategy which consisted of entering into tripartite arrangements. Several ongoing challenges which continued to be addressed were also identified, such as human resourcing, data management, technology and public attitudes. 17. Mr. Fenta shared some statistics relating to progress as a result of modernization efforts that included reducing transit processing from 3.47 hours to 40 minutes, import clearances from 7 days to 10 minutes and exports from 5 8 hours to 20 minutes. In addition, ERCA had reduced investigation times from 397 days to less than 20 days combined with an improved conviction rate of more than 95%. Other efficiencies achieved were improved quality of data, improved levels of compliance and improved labour productivity. Revenue monitoring indicated an increase of 51.38% (from 23 to billion Birr) and a shift from domestic to federal collection. In summarizing some of the drivers for change, Mr. Fenta cited taxation as becoming a topic of discussion in the public arena and the ERCA reform programme viewed by government as a benchmark for other agencies. There was also increased external interest in providing support to the ERCA reform programme. 18. Mr. Kastrissianakis noted that capacity building was necessary in both developed and developing countries. He emphasized that the role of Customs went beyond revenue collection and was integral to national policies. He referred to examples of international standards, such as the SAFE Framework of Standards (FoS), and suggested there was a need for similar work in terms of intellectual property rights, CBM, GNC and capacity building. 19. Ms. West firstly shared the PSCG perspective of the status of the global financial crisis. She then presented the Group s report which would be made available on the WCO Website. Commenting on the economic recovery, she said that although this year had been better than last year, the PSCG did had concerns. Even though there were areas of growth, there had still not been a return to 2008 levels of economic activity and profitability. The PSCG had concerns about the stability and sustainability of the recovery, believing it to be fragile. In a forthright criticism, she stated that the PSCG was also concerned about several negative impacts on the global financial crisis caused by Customs. As examples, she pointed to increased inspection rates, increased audits, inconsistencies in classification and valuation, and how Customs resources were being deployed. The PSCG cited examples of delays in inspections and processing, which might be directly related to Customs resource allocation issues. Several PSCG Members had also commented on difficulties with transfer pricing and tax policy. 20. The second part of her presentation outlined suggested answers to why borders matter. The answers included Customs and trade influences on costs, investment and delivery timeliness for fragile goods. She suggested that these issues went beyond traditional single window solutions and CBM, requiring institutional support at the highest levels. The third area of Ms. West s presentation concerned some future expectations and opportunities. These included greater transparency, developing trusted trader and Authorized Economic Operator (AEO) standards and improving certainty and predictability of Customs requirements. She imparted the experience of the private sector working with a 3.

4 HC0008E1a Customs administration on capacity building, and Customs-Customs-WCO tripartite arrangements including the private sector could be a model for the future. 21. A Delegate listed risk management, AEO, intellectual property rights, Revised Kyoto Convention and the HS 2012 amendments as priorities for the Capacity Building Directorate. The Delegate pointed out that these topics were also considered important areas during the Council Session of June One Delegate identified that the different views on strategic direction views expressed by the speakers relied on leadership and the people component of Customs, adding that new tools, instruments and standards were lacking to assist the new strategic direction. 23. A Delegate commented on shared capacity building with the private sector, rhetorically asking whether sharing capacity building would also mean sharing costs. Elaborating on private sector intervention, in the Delegate indicated that based on its experience, the private sector had not invested in expensive policies such as non-intrusive scanning, even though that had been put in place to assist facilitation. 24. A Delegate suggested that, together with a need for Customs-Customs-private sector co-operation, further efforts should be also made to increase co-operation with other international organizations involved in capacity building. 25. A Delegate introduced an that most commercial operations were small businesses, a question for the PSCG was how were information, experience and expertise being passed to this group in the supply chain? 26. Ms. West, the PSCG Chairperson responded to this intervention by outlining affiliation to representative groups and using the specific example of communication strategies utilized by the broker community. Her intervention was qualified by stating the PSCG could not comment on behalf of other individual PSCG Members. 27. A Delegate shared the experience of developing and delivering a regional initiative, which consisted of Customs and Brokers Capacity Building Workshops. The facilitator group included facilitators from three WCO Member administrations and their respective broker s representative. The initiative had been designed to benefit all participants from both a trade facilitation and supply chain security perspective. 28. Ms. West responded by sharing the objectives of the project, which essentially consisted of setting up a Trusted Trader/AEO Programme between this group of Members. It was worth noting that as there were many representatives involved, it took time, but would be worth it. She concluded by encouraging other Members to collaborate with the private sector on major trade facilitation initiatives. 29. A Delegate commented that human resources were at the core of capacity building. Once human resources were in place, it was then important to bench-mark capacity building efforts with a view to continuing to improve. He gave the example of diagnostic work that had resulted in a structured programme plan covering Although efforts were progressing, he added that key performance indicators (KPI s) linked to the plan were difficult to establish. 30. The Director, Capacity Building provided input to the panel discussion, beginning by saying that WCO diagnostic work was very human resource focused, however there was no one-size fits all. Of more than 110 diagnostics completed, no two were the same. Analysis of an administration started with reviewing implementation of the SAFE FoS, but the WCO realized that the analysis needed to refer to the Customs in the 21 st Century strategy for a 4.

5 HC0008E1a holistic view before drilling down to the detailed operational analysis. Commenting on information management, he confirmed that the current capacity building database information was confined to Customs. In specific and mutually agreed circumstances, it might be possible in the future to add private sector elements, such as joint projects, for use by Members and the private sector. 31. The Council Chairperson, moderating the panel, summarized the discussions and handed the meeting back to the Chairperson of the Capacity Building Committee. IV. BENEFITS OF ORGANIZATIONAL INVESTMENT IN CAPACITY BUILDING 32. The Chairperson of the Capacity Building Committee invited Mr. Chriticles Mwansa, Commissioner-General of the Zambia. Revenue Authority, to moderate the panel presentations and discussion of mechanisms to increase participation of Customs experts in capacity building programmes and to identify mutual benefits for providers and recipients of external assistance. 33. Mr. Mwansa introduced four speakers to the meeting, Mr. Brendan O Hearn from United States Customs and Border Protection (USCBP), Mrs. Saadia Alaoui, from the Moroccan Customs Administration, Mr. Bill Williamson from Her Majesty s Customs and Excise (HMRC) - UK, and Professor David Widdowson from the International Network of Customs Universities. 34. Mr. O Hearn opened the discussion by sharing three broad benefits USCBP has experienced as an organization investing in capacity building. He described capacity building as a force multiplier, a gateway to further cooperation, and a mechanism for developing global citizens Expanding on these broad benefits, some specific benefits under each heading included: strengthening global supply chain security; opening gateways to cooperation beyond Customs specific matters; developing human capital in both of the participating administrations, including multi-cultural experience and skills; and developing and strengthening trust and confidence between administrations. 36. Mrs. Alaoui outlined Morocco s pathway for modernization, which was built around some key areas of reform such as the overhaul of the legislative and regulatory framework, facilitation and simplification of Customs procedures, rationalization of Customs controls, organizational reform, human resource development and enhanced governance and integrity.. In the context of Customs to Business partnership, specific transformations include establishing an Observatory in cooperation with the private sector to monitor and respond to integrity issues and actions relating to the implementation of the SAFE FoS. 37. Continued reforms were planned such as special green-channel treatment for importers enjoying AEO status. Discussions were also taking place with some partner countries, including Tunisia and the European Union to achieve mutual recognition of AEOs and controls. Morocco Customs is looking ahead to the implementation of Phase 3 of the Columbus Programme and was finalizing a medium-term strategic approach to consolidate the achievements of its reforms, as well as implementing the corresponding action plan stemming from the Customs in the 21 st Century objectives. 38. Mr. Williamson framed his presentation around the external and internal challenges faced by an organization investing in capacity building. In the external context, challenges include securing continued political will, ensuring the preparedness of the host administration 5.

6 HC0008E1a to receive experts, coordination with other donor institutions, effective planning of multiple programmes and identifying the most likely successful methodologies. 39. Some internal challenges might include reduced government spending on capacity building support, aligning broader government goals with specific country needs and internal resource issues such as expert availability. Mr. Williamson summarized several reasons for HMRC s continued commitment to capacity building with a number being strategic. For example, in his view, as a part of the global trade community it was necessary to be proactive in supply chain policy and management, this included involvement in improving forward planning, use and influencing the role of WCO Regional Offices for Capacity Building (ROCB) and identifying new funding models. 40. Professor Widdowson s presentation posed two questions. The first was What does Customs/ WCO contribute? and the second How was it viewed?. In answering the first question, he grouped Customs contribution into (i) standards, (ii) tackling difficult issues and (iii) assisting Members. In answering the second question, he suggested that Customs was sometimes seen as a facilitator, an impediment, a necessary evil and equally as a global leader and toothless tiger. 41. In an entertaining assessment of Customs performance, Professor Widdowson used an academic report card and scored Customs highly, with comments where it could improve. Examples of areas for improvement were, ensuring effective implementation of standards, adopting consistent application of standards, measuring and reporting on Members performance, and improving Member compliance with instruments and standards. In his concluding remarks, he added that academia could assist through existing WCO accredited programmes and research to support the policy debate, which would provide empirical evidence to help inform strategic decision-making. 42. A Delegate responded to the panel generally, adding to considerations that organizational investment could also come from harnessing the skills of recently retired Customs officers and questioned whether this could be done with the support of donors. This would alleviate the current difficulty individual administrations faced in releasing staff. When commenting on the suggestion to measure Members performance or compliance, the Delegate considered working on national reporting before conducting international comparisons. In concluding remarks, it was believed that the challenge for the Capacity Building Committee would be to actually deliver on priorities between meetings. 43. Another Delegate pointed out that finding innovative ways to maintain investment in capacity building would be a key challenge. The Capacity Building Committee needed to market and demonstrate success stories to sustain interest and confidence in WCO efforts. The Delegate felt there was an existing strong base and this could and should be used to build more partnerships. 44. A Delegate stated that an administration needed a long-term vision, however, this could be difficult in environments where the tenure of the Director-General is not certain. The task for the Capacity Building Directorate should be to compile case studies so that Members could share and encourage development. 45. A Delegate agreed with several comments that human resources were the key to capacity building and that availability of experts was a fundamental human resource issue. The Delegate, from Sweden, outlined his administration s commitment announcing a new financial contribution of ,00 Euros to the WCO for use in capacity building activities to prevent, detect and combat corruption and illicit trade of wild animals subject to the CITES convention. He then encouraged other Members to contribute. 6.

7 HC0008E1a 46. Another Delegate stated that the Capacity Building Committee and the standards, instruments and guidelines of the WCO should produce concrete outcomes and benefits. 47. Mr. Mwansa summarized the panel session, noting that there were benefits to be gained in both receiving and providing capacity building. Focusing on several specific points, his conclusion acknowledged the challenge of finding long-term funding and of finding experts. He then handed the meeting back to the Chairperson of the Capacity Building Committee. DIALOGUE AND SHARING EXPERIENCE V. ADVANTAGES OF TRIPARTITE CAPACITY BUILDING 48. Introducing this Agenda item, the Chairperson pointed out that a number of countries had already signed Memoranda of Understanding (MOUs) to embark on tripartite cooperation arrangements, also benefitting from WCO support in this respect. Tripartite partnerships were the most recent WCO capacity building delivery model proving successful. The Chairperson suggested that the fact that an increasing number of these agreements were being concluded among developing country Member administrations was a particularly positive development. 49. The Chairperson explained that this Agenda item would include presentations from Members with differing experiences of participating in tripartite arrangements. Before moving on to the presentations, the Director, Capacity Building was asked to explain this method of capacity building. 50. When explaining the tri-partite model, the Director Capacity Building referred to the European enlargement programme and more specifically, to the twinning model as inspiration. The WCO tri-partite model consisted of a structured arrangement typically incorporating specific deliverables over a defined period, between two (or more) Members and the WCO. The arrangement was generally simple, not legally binding, country specific and includes clear outcomes. 51. He described WCO Secretariat s role in compiling Members needs and in some cases finding donor expertise and/or funding to meet them. The Director underlined the WCO s role as a coordinator in any tripartite arrangement, pointing out that this was a very simple model to cooperate based on mutual interest, among other benefits. As an independent centre of Customs expertise, the WCO could also provide added value to the bilateral arrangements, as well as quality monitoring and evaluation services. 52. The Director summarized some benefits encountered already. One benefit was that the addition of the WCO to some bi-lateral agreements in place meant requests to the WCO could be specific and coordinated, thereby avoiding duplication. There were also synergies identified in existing agreements that could be passed on to other countries, which led to the WCO drafting a template for Members to begin negotiations. Another advantage was that such agreements allowed for a third-party to arrangements for monitoring and evaluation, for example. 53. The Netherlands and Mongolia shared their views on their tripartite arrangement. The arrangement was a logical consequence of their already close relationships formed since 2006 when implementing commitments under the Columbus Programme. Among the benefits of the tripartite partnerships, the Netherlands noted the development of a quality pool of experts with the WCO s support, the use of the WCO instruments and tools, and the quality assurance mechanism that the WCO Secretariat s involvement provided. The Delegate of Mongolia representative was grateful to the WCO and the Netherlands, pointing 7.

8 HC0008E1a out that among the benefits it found in the tripartite partnership were the ready access to highly-qualified experts and trainers, the tailor-made arrangements, the flexibility of the tripartite agreements and the opportunities for effective coordination with donors. 54. Canada and Haiti were second to present their experience. They shared information about their tripartite approach, which included providing support for Customs reform and modernization processes using WCO tools and where necessary, WCO experts or expertise. A key factor identified for sustainability was the commitment of partners over the medium to long-term and joint ownership of results. Noting Haiti s recovery from its substantial natural disaster last year, both administrations re-iterated their commitment to work hard to rebuild the Customs administration. 55. Ethiopia and Kenya presented a third tri-partite perspective. Speakers stated the importance of concluding tripartite agreements, such as the one they had just signed on 27 September 2010 during the Capacity Building Committee meeting, clarified and confirmed roles and deliverables within specified timeframes. Their presentation listed the reforms undertaken so far in the modernization process. Presenters underlined that this tripartite arrangement between developing country Members provided ample opportunity to learn from each other s experience. An example identified as particularly useful was that neighbouring countries often faced similar challenges. The tripartite arrangement, which includes the WCO, creates a dialogue for examining a wider range of possible solutions and efficiencies for dealing with common challenges. 56. The Chairperson then opened the floor for comments and observations. One developing country Member spoke of its experience in tripartite arrangements focusing on benchmarking. This was done by sharing experiences with a neighbouring developing country Member s administration to improve South-South cooperation. The Member called upon and encouraged other Members to engage in this mutually-beneficial approach to capacity building. 57. In reply to an earlier intervention suggesting that the WCO Secretariat study further possibilities to involve the private sector in the tripartite arrangements, the Director Capacity Building agreed that it was vital to ensure that when building Customs capacity, all stakeholders should be involved. He noted that in a number of tripartite arrangements there were already elements concerning how to harness private sector support to engage fully in the Customs reform processes. He added that use of private sector expertise had been discussed within the WCO, however, the immediate focus was on consolidating and mobilizing the Customs expert pool. KEY NOTE SPEECH 58. The Chairperson invited Ms. Helen Clark, the Administrator for the United Nations Development Programme (UNDP), to share her experience and observations. 59. Ms. Clark began by informing the meeting this was her first significant appointment since the major Summit on the Millennium Development Goals (MDG) held the week before at the United Nations Headquarters in New York. The focus of the Summit was on accelerating progress on the eight Goals, a decade after they were launched as a blueprint for improving the lives of billions of people in developing countries. 60. Ms. Clark explained that for the MDGs to be met, countries economies need to grow sustainably and revenue needed to be collected from that for investments in services and infrastructure. A modern Customs service could play a key role in both trade facilitation which was conducive to growth and revenue collection from that trade. She added that countries 8.

9 HC0008E1a which had clear, predictable and transparent rules and robust institutions stood a greater chance of increasing their trade and attracting investment. 61. Central to a recent UNDP International Assessment was the finding that supporting country-led development processes, promoting more inclusive models of growth, and strengthening national and local institutions and the capacity for domestic resource mobilization were critical for meeting the MDGs. That was why Customs reform and modernization as well as transparent border management were so important. 62. Ms. Clark said that the UNDP was not a specialist agency in the area of Customs or border management. The theme of this meeting, however, to enhance existing capacity building resources and improve global co-ordination to deliver better regional trade facilitation and community protection, related to the core of the UNDP s work. 63. The UNDP s trade-related work was mainly done under the auspices of the Aid for Trade initiative, including its Enhanced Integrated Framework for the Least Developed Countries. It had three main components : assistance to partner countries on mainstreaming trade in national development and poverty reduction strategies; capacity support to negotiate trade agreements which prioritize human development outcomes; and capacity support to enhance countries competitiveness and to ease supply side constraints. 64. She provided several examples of relevant UNDP work, which included : Helping to establish a mechanism for the Lesotho Government to share information on business regulation and Customs requirements; Helping the Mongolian Government to enhance and expedite Customs procedures; Working with the Maldives and Vanuatu Governments and development partners to strengthen their Customs services automated clearance processes; and Promoting South-South co-operation through trade and helping countries to share experiences and expertise on Aid for Trade. 65. Ms. Clark considered that there was scope for further exchanging information and strengthening linkages between the UNDP and the WCO, in particular on border management programmes. In closing, she welcomed the attention the WCO was placing on how Customs work could contribute to achieving the MDGs. Ms. Clark added that it was a combination of efforts in many different sectors, such as Customs, that were making a difference to delivering results and reaching the outcomes aspired to within the MDGs. 66. Mr. Kunio Mikuriya, WCO Secretary General, replied on behalf of the meeting by stating it would inspire Members to continue reform and modernization efforts with the knowledge that the role of Customs was recognized as being directly relevant to the MDGs. 67. The Secretary General expanded on Ms. Clark s comment that organizations such as Customs were making a difference on the ground. He said that the WCO and Members had implemented real reforms and continues to do so, for the benefit of trade and the economy but also for traditional benefits such as border protection. In response to comments made on the Aid for Trade programme, he recalled discussions with Mr. Pascal Lamy, 9.

10 HC0008E1a Director-General of the WTO. Mr. Mikuriya and Mr. Lamy agree that the expectation was that implementation of WTO trade facilitation negotiations would be through the WCO. This was seen as core business of Customs and the partnerships being built now would further assist future reforms and provide an opportunity to connect activities with other capacity building organizations. 68. The Secretary General discussed the WCO s partnership approach to capacity building, which included partnerships with governmental or private sector bodies involved in capacity building. He was encouraged by the UNDP view that they shared complementary objectives and approaches, including the South-South approach. 69. The Secretary General also responded to the issue of fighting corruption raised by Ms. Clark. He agreed that integrity was one of the cornerstones of Customs, and identified it as detrimental to both developing and developed Members. He pointed to the Integrity Sub- Committee that would immediately follow the Capacity Building meeting, emphasizing that Customs was not afraid to discuss and deal with this issue. 70. In closing, he again thanked Ms. Clark for making time to take part and choosing the WCO as her first appointment after the significant MDG Summit. The Secretary General was motivated by the opportunity to work together on what appeared to be a huge area of common ground. He assured Ms. Clark and the meeting that there was willingness and expertise within the WCO and its Members. 71. A Delegate put forward three questions to the UNDP Administrator, first asking whether the UNDP had conducted any studies on the effectiveness of regional versus national development programmes, second, if they had, what were the lessons learned and third, how could the WCO and UNDP ensure development programmes were compatible and complementary? 72. In response, Ms. Clark referred again to the UNDP International Assessment, as one study. A common lesson learned was the importance of stakeholders getting behind nationally owned plans, therefore a developing country needed vision and a plan supported by strong leadership. The UNDP supported regional integration and examples of potential success were given, including the EU rise in living standards and ASEAN growth. Responding to the third question, Ms. Clark envisaged closer WCO-UNDP cooperation at major representation level and in-country support. Noting there was informal involvement by the WCO at the international level, this could be improved through formal association with formal multi-lateral bodies. One example was the need for the WCO to be a formal Aid for Trade partner and this would be discussed with other partners. The formal association should not prevent WCO and UNDP officials immediately looking at practical steps and actions to capitalize on development programmes. 73. Another Delegate expressed gratitude for the opportunity to hear the linkages that were in place between the United Nations (UN) and Customs. Concurring with comments on the need for better coordination between the WCO and UNDP, it was also added that this should include donors. The Delegate asked how does Customs fit within the UN structures? 74. Replying to the question, Ms. Clark explained that twice a year the UN Secretary- General convenes a multi-lateral meeting of Chief Executives of multilateral institutions. These institutions include postal, telecommunications, tourism, UNICEF, UNCTAD, WTO, World Bank, International Monetary Fund, UNODC and more. She pointed out that all of these organizations had many links to Customs, so it was logical that the WCO could or even should get closer to them. 10.

11 HC0008E1a 75. Ms. Clark also discussed the need for capacity building to be strategic. She noted that capacity building rarely results in quantum leaps in development, however, the right strategy and right plan could be catalytic in mobilizing efforts. Returning to a point made earlier, she identified enablers for catalytic change was supporters getting behind country-led development with sound leadership. In a strategic sense this meant a focus away from a small project in one village to implementing it on a national project scale, for example. 76. A Delegate identified the WCO Harmonized System (HS) as a useful capacity building trade tool. The example used was the HS2012 amendments, which could be used to monitor trade in food as well as the traditional use of collecting revenue and reporting trade data. Ms. Clark remarked that with all new conventions or new standards, there needed to be capacity building to implement them. Countries ought to be aware of the requirements before signing in order to fulfil the commitments in international agreements and instruments. VI. CUSTOMS LEADERSHIP IN THE 21 ST CENTURY 77. The Capacity Building Committee Chairperson invited Mr. Tom Doyle, International Trade Department, World Bank, to moderate panel presentations and discussion of practical experience and currently available support to implement sound Customs leadership and management development policies. 78. Mr. Doyle introduced three speakers to the meeting, Mr. Martyn Dunne, WCO Chairperson and Comptroller and Chief Executive of New Zealand Customs Service, Mr. Lars Karlsson, Director Capacity Building, WCO, and Mr. Chris O Keeffe, Attaché, Australian Customs and Border Protection Service (AC&BPS). In his introduction, Mr. Doyle referred to an association made by Ms. Helen Clark, UNDP, in her key note speech, referring to the vision and ambition in modern leadership, and the complementary nature between the two characteristics. Prior to inviting presentations, Mr. Doyle played a video message provided by Mr. Octavio Canuto, Vice-President, World Bank. 79. Mr. Octavio Canuto s speech, via video reminded the Capacity Building Committee that Customs was a critically important component of the global trading system. In the post war period there were no examples of sustained high growth that did not involve integration into the global economy. He argued that in essence, increased trade led to economic growth which in turn, contributed to poverty reduction, which was the core mission of the World Bank. 80. Mr. Canuto remarked that developing countries face many challenges in gaining access to markets of developed countries. The World Bank had been active in promoting a fair and a pro-development outcome from the Doha Round of multilateral trade negotiations. There had been good progress in the Trade Facilitation area and the World Bank believed that it made good sense to pursue implementation of the many trade facilitation measures whether or not there was agreement on the WTO Doha round of negotiations. 81. Mr. Canuto continued that even though Customs was not the only authority to clear goods, it was well placed to lead national reform agendas. While there had been encouraging improvements in many Customs administrations, according to his perception progress had been too slow to make a real difference. Customs reforms had to be included by governments at much higher levels as part of their internal development agendas. They also had to demonstrate the necessary political will to move forward. 82. He pointed out that the World Bank had managed over 120 Customs related projects in the past 20 years and was currently supporting Customs reforms worth $USD 500 million. The World Bank had also significantly expanded the level of cooperation with the WCO, one 11.

12 HC0008E1a of its key development partners, and new cooperative initiatives were expected to be announced in the coming months. 83. Mr. Canuto recognized that Customs reform and modernization was a long and complex process. While there were always costs and risks involved in pursuing tough reforms, the costs and risks associated with ignoring such an important component of the global trade system were much greater. In closing, he stated that the World Bank looked forward to continuing support for Customs capacity building with the WCO, governments and other development partners. 84. Mr. Martyn Dunne gave the opening presentation on how the New Zealand Customs Service had responded to the challenge of building current and future leadership and management capacity. 85. Mr. Dunne pointed out that in building Customs capacity, there was a need to consider how Customs administrations could contribute to building the national infrastructure and institutions. Within the fabric of all nations, there was a responsibility to ensure that Customs was able to deliver on the government s expectations. Through building Customs leadership capacity and ensuring strong leadership continuity within the administration, he stated it was possible to contribute to building the nation s leadership beyond Customs boundaries. 86. In the New Zealand Customs Service, leadership and management development was based on four principles. These were Values, the WCO Arusha Declaration, the Functional Leadership Model (which articulated leadership behaviours, management expectations and competency) and the Leadership Framework. 87. He concluded that there was a need to ensure that there was a strategic vision for capacity building. The strategy must had sound foundations that build leadership capacity now and for the future. Any leadership in any administration ought to be based on core values and the Functional Leadership Model was a fundamental to the toolkit. It was also necessary to had a career framework where leaders could be selected, further developed, guaranteed continuity and above all, recognizing circumstances or opportunities where leaders could be extended and tested. 88. Mr. Lars Karlsson gave a presentation on the WCO Management Development Programme. 89. The Management Development Programme was based on the PICARD Professional Standards and was a current priority of the Capacity Building Directorate. It represented a response to a need identified under the Columbus Programme and Customs in the 21 st Century strategy. At the Global Dialogue on Customs Capacity Building, a key factor for successful Customs modernization and reform identified by experts was a management programme. The WCO Secretariat has assisted Members achieve this by co-ordinating the establishment and drafting of guidance, including standardized modules, on leadership and management development for current and future senior managers. 90. He stressed the fact that leadership and management was about people. The challenge has been to build competences, skills and knowledge in a standardized form for Customs managers consistent with the PICARD Professional Standards. The product aimed to provide a holistic view on how to manage Customs modernization processes that had been put in place and managing the implementation. These principles had been included in the objectives of the WCO Management Development Programme. 91. Mr. Karlsson highlighted the key findings from the six pilot workshops on the WCO Management Development Programme held this year. These included the importance of an 12.

13 HC0008E1a interactive approach, networking, learning from respective experiences, the role of facilitator and the use of team projects as one of the delivery methods. In concluding, Mr. Karlsson invited Members to assist in delivering, financing and building the pool of experts for future workshops. 92. Mr. Chris O Keeffe gave a presentation on Customs Leadership & Management Development in the Asia/Pacific Region. He described two programmes offered by the AC&BPS, one being the Customs International Executive Management Programme (CIEMP) and the second known as the Pacific Customs Management Programme (PCMP). The CIEMP Programme was conducted by the Centre for Customs and Excise Studies (CCES) at the University of Canberra in partnership with AC&BP and was aimed at senior Customs managers. The PCMP programme was tailored for Pacific Customs to better respond to the needs of Pacific Customs officers and better reflect the country based issues. It was designed to enhance cooperation between Pacific Customs administrations. 93. He advised the meeting that both programmes were based on international best practices including participative activities and group presentations. Both programmes aimed to support long term organizational change and improve regional relationships. Both programmes had also evolved over time to respond to the changing environment facing Customs in the 21 st Century. Common to both programmes was a focus on developing strategic thinking, change management and planning skills. 94. Mr. O Keeffe pointed out that the programmes were seen as a part of continued development of Customs officers within the region. Graduates were encouraged pursue further studies and were eligible to apply for credit towards postgraduate courses on completion of the either programme. In conclusion, he stated that the programme had helped create closer relationships within the region as well as indentify common issues especially important in dealing with terrorism, transnational crime, trade facilitation and community protection. 95. One Delegate reminded the meeting of the importance of innovative leadership and of multiple leadership skills. The Delegate referred to the WCO Capacity Building Development Compendium that included chapters on Change Management, Risk Management and Human Resource Management, as examples of the multiple skills needed. 96. In his concluding remarks, the moderator warned that leadership should not be confused with management. While they were complementary, they were quite different disciplines. He reminded the meeting that leadership was about building coalitions with people willing to drive reform and change. He also highlighted the challenge posed by too many changes in an organization at once. A negative example was frequent or unpredictable changes of Director s-general, which prevented sustainable development. In a final remark, he referred to characteristics important in leaders were vision and ambition. ORIENTATION AND DECISIONS VII CAPACITY BUILDING DELIVERY MODELS 97. The Chairperson drew Delegates attention to Doc. HC0003 and introduced four speakers, Mr. Ernani Checcucci, Capacity Building Directorate, WCO Secretariat, Mr. Eugene Torero, Commissioner of Customs Services, Rwanda Revenue Authority, Mr. Thabo Moleko, Commissioner of Customs and Excise, Lesotho Revenue Authority and Mr. Raúl Augusto Díaz Monroy, Intendent of the Guatemalan Customs Administration. 13.

14 HC0008E1a 98. The Secretariat presentation restated the foundations of the WCO Capacity Building Strategy and outlined the three delivery models currently in use, being : The delivery of support services for the three phases of the Columbus Programme; Pilot Projects; and Tripartite Arrangements 99. Details were also given of progress made in terms of planning support activities and the establishment of an Experts Database. Members attention was drawn to matters requiring proposals by the Committee, such as the role the WCO could play in fragile or postconflict states, as well as identifying precise indicators for a results-based approach Mr. Torero presented the trade facilitation project established by the administrations of the East African Community (EAC), with assistance from the WCO and the EAC Secretariat. This project was a combined result of several Columbus Programme Phase 1 diagnostics conducted in the region and needs expressed by the private sector. On the basis of these elements, the Directors General of EAC Member countries determined three regional priorities: risk management, post-clearance audit and an Authorized Economic Operator (AEO) programme. The AEO programme, which was managed by two steering committees (public and private), was described in detail. These two groups made it possible to establish regional policy solutions to issues, benefitting Customs and business Mr. Moleko described capacity building progress made by his administration, emphasizing his roadmap with strategic focuses for improvement based on the Columbus Phase 1 diagnostic. A joint project between the Lesotho Revenue Authority, the WCO and the Southern African Customs Union (SACU) was presented. This project had resulted in the drafting of regional policies in key areas. Outcomes of the project include strengthening the role of the region s Customs Union and improving the balance between trade facilitation and Customs control. A Lesotho-South Africa-WCO tripartite arrangement had also been entered into in order to enhance information sharing between administrations within the region Mr. Díaz Monroy presented the achievements of his administration s reform project. A new vision based on international standards had been adopted by the Guatemalan Administration. The standards were used to improve the various indicators selected for project monitoring, such as the rate of physical inspections on goods, release times and the rate of export inspections on goods. The success criteria for this reform include internal funding, international collaboration, partnership with the private sector and the establishment of an effective project management team. The next steps would be to continue with this improvement strategy and to obtain international recognition for the Guatemalan Administration After summarizing the presentations by the four speakers, the Chairperson gave the floor to the Delegates in attendance. One Delegate outlined some of the difficulties encountered when implementing the WCO-EAC project. These included the changes required in officials behaviour and obtaining strong political support and co-operation from business for the project An observer sought clarification from Mr. Torero on how the two AEO programme steering committees mentioned in his presentation operated. Of particular interest were the procedures for the exchange of information between public and private representatives. In response, Mr. Torero pointed out that the two groups took part in joint meetings as well. They had also put in place procedures for information exchange, for example by having observers of one committee present at the other committee s meetings. 14.

15 HC0008E1a 105. One observer welcomed the co-operation between the WCO and regional organizations or unions, which boosted the effectiveness of decisions taken and circumvented the risk of duplication of work. It was suggested that such joint projects could be developed in other regions A Delegate stressed the strong linkage between paragraphs 35 and 38 of Doc. HC0003 concerning the establishment of strategic plans. It was crucial to establish such plans as part of modernization projects, as well as to formally document all the information relating to these projects in order to build up an inventory of experiences. The Chairperson agreed with the Delegate s intervention, adding that there was a risk of discontinuity of capacity building projects, but this could be tempered by knowledge management A Delegate presented several reform projects, which included risk management, electronic transit and electronic portals similar to the single window concept. This administration considered it had completed Phase 2 of the Columbus Programme and was now ready for Phase A Delegate emphasized the need to establish a political will to guarantee the success of capacity building plans. It was proposed that the Capacity Building Committee discuss the appropriateness of setting up an international ministerial meeting, organized by the WCO, which would bring together the different relevant Ministries within Member administrations. The forum would enable high level exposure to the importance of capacity building projects An observer referred again to the project carried out by the Canadian Administration in partnership with the United States and Mexico, for capacity building in Argentina, El Salvador and Guatemala. This project was being conducted with private sector support and cooperation. The observer asked Members to consider the possibility of tripartite arrangements bringing about private sector involvement in capacity building projects. A Delegate supported this intervention, adding that it could be done under the auspices of a tripartite arrangement The Delegate of Slovakia pointed out that human resources were an essential requirement for capacity building. The meeting was informed that the Administrations of Slovakia and the Czech Republic were going to provide experts to the WCO with the hope that their experience would be beneficial to other Members. Other administrations were encouraged to participate wherever practicable, in capacity building initiatives The Delegate of Mexico reported on his administration s involvement in capacity building efforts since June 2009, especially through the accreditation of several of its experts. He invited the other Member administrations to organize or take part in such accreditation workshops and reiterated his administration s commitment to making its accredited experts available to other Members Referring to paragraph 33 of Doc. HC0003, a Delegate supported the proposed resultsbased management approach to capacity building delivery. It was expected that the Capacity Building Committee would take responsibility for developing reliable new indicators for measuring progress in modernization reform. The Secretariat was asked to prepare a working document for discussion at the next Committee meeting. The document should take account, inter alia, of the indicators used by other organizations such as the World Bank or the International Monetary Fund. This proposal was supported by two other Delegates One Delegate emphasized the significance of the Capacity Building Committee for the future of capacity building. It was recalled that the ultimate aim of modernization activities was the implementation of existing tools rather than their mere adoption at the legislative level. Support was given to the stances expressed by Members, as well as during the 15.