International Activities

Chapter 6 International Activities As mutual dependence between different economies in the world further accelerates, Japan Customs actively promotes international harmonization of customs procedures and capacity building under close partnership with international organizations such as the WCO (World Customs Organization) as well as other countries to facilitate international trade. In addition, to render our economy more competitive in the international market, we should improve the business environment and enable our economy to make the most of remarkable economic growth in Asia under strategic cooperation with Asian Development Bank (ADB), Japan International Cooperation Agency (JICA) and World Customs Organization (WCO). Specifically, we will promote trade facilitation in Asia under our Asia Cargo Highway Initiative to create seamless flow of cargo in Asia, especially in ASEAN Region. At the WCO Policy Commission in December 2012, Japan decided to extend the scope of our support to entire Asia Pacific region including Central Asia, South Asia and the Pacific, in order to accelerate the trade facilitation in these respective regions. In addition to this, Japan committed to make new financial contributions through the African Development Bank and Inter- American Development Bank to support the trade facilitation in African region as well as Latin America and Caribbean region. In this way, Japan will promote the global trade facilitation in cooperation with the MDBs (Multilateral Development Bank), through the support for strengthening of the customs abilities, the support for establishing of the basic systems, the support for harmonization of customs procedures and so on. 040 I n t e r n a t i o n a l A c t i v i t i e s 041

Iternational cooperation among Customs administrations Japan Customs contributes to further growth of international trade through harmonization and unification of customs procedures internationally as well as enhanced international cooperation. WORLD CUSTOMS ORGANIZATION (WCO) Activities at in the WCO As the volume of international trade grows, harmonization and unification of tariff classification and customs procedures as well as promotion of international cooperation have become increasingly important. For example, differences in customs procedures in exporting and importing countries lead to extra work and trading costs. International cooperation is also essential in addressing issues that significantly affect national safety and economy, such as illicit drugs and goods infringing intellectual property rights. The WCO is the sole intergovernmental organization on customs matters tackling with these issues from early years. Profile of the WCO The WCO, its headquarters located in Brussels, Belgium, is an intergovernmental organization established in 1952 to contribute to development of international trade by promoting harmonization and unification of customs procedures among its Members. The primary tasks of the WCO are as follows; (1)The WCO drafts and revises conventions related to customs classification and customs procedures and provides a unified interpretation of these conventions. (2)The WCO drafts and promotes guidelines on security and facilitation of international trade. (3)The WCO considers technical matters on the WTO conventions on customs valuation and rules of origins for their unified interpretation and application. (4)The WCO promotes international cooperation among its Members for control and enforcement on illicit drugs and IPR infringing goods as well as customs capacity building. At present, the WCO Members cover 179 countries and customs territories. Japan joined the WCO in 1964 and since then, the Customs and Tariff Bureau, MOF has enhanced international cooperation among customs administrations to promote harmonization and unification of customs procedures in cooperation with the WCO. Organization of the WCO Secretariat Deputy Secretary General Contribution by Japan In January 2009, Mr. Kunio Mikuriya from Japan, assumed the post of WCO Secretary General as the first from Asian countries. There are eleven Japanese officials including Mr. Mikuriya in the WCO whose total number of staff is about 160. Japan has been making a significant contribution to formulation and implementation of policy at the WCO by providing human resources. In terms of financing, Japan is the second-largest financial contributor to the WCO, providing 9.59% of the total amount of statutory contribution behind the United States (22.0%) in 2012/2013. Members Staff General operating expenses (budget base) Japan s contribution Statutory contribution for annual budget Customs Cooperation Fund Director, Tariff and Trade affairs Director, Compliance and Facilitation Director, Capacity Building G. Favale - Italy - G. Zhu - China - E. Kieck - South Africa - Secretary General : Kunio Mikuriya Japan Customs is the largest donor to the Customs Cooperation Fund of the WCO, which is the financial resource for customs capacity building. In particular, Japan Customs supported the establishment of the Asia-Pacific Regional Office for Capacity Building(ROCB)in Thailand, in September 2004, as the first ROCB in the world. The ROCB provides effective and efficient capacity building activities to customs officials of the developing Members in the region. The head of the Asia-Pacific ROCB is seconded from Japan Customs. The Asia- Pacific ROCB is actively undertaking activities including needs survey, planning and implementing workshops, and coordination with other donors in the region. With growing needs for security and facilitation of international trade, the WCO plays more important roles, and Japan Customs continues its active contribution to the WCO. 042 I n t e r n a t i o n a l A c t i v i t i e s 043

Activities for Development of International Trade Japan is actively undertaking economic cooperation to further facilitate trade in the Asia-Pacific region. Further cooperation with Europe is also promoted. Asia-Pacific Economic Cooperation (APEC) Asia-Europe Meeting (ASEM) Facilitating trade in the Asia-Pacific region Asia-Pacific Economic Cooperation (APEC) is a forum to discuss economic cooperation in the Asia-Pacific region with a focus on trade and investment. Since its first Ministerial Meeting in 1989, trade and investment liberalization and facilitation, and economic and capacity building the region have been its central activities. The Customs and Tariff Bureau has been participating in APEC activities, especially those of the Sub- Committee on Customs Procedures (SCCP) under the Committee on Trade and Investment (CTI) to promote trade facilitation through the harmonization and simplification of customs procedures in the region. In 2010, Japan hosted APEC and held first official APEC Customs Directors- General/Commissioners Meeting (Meeting) in Tokyo. And since 2011, Customs and Tariff Bureau has been contributing to the promotion of the trade facilitation in the APEC region through taking the initiative in the developments of AEO and Single Window systems, and the enhancement of border enforcement on Intellectual Property Rights which are included in the priorities agreed in the Meeting held in 2010. Advancing further cooperation between Asia and Europe The Asia-Europe Meeting (ASEM), launched in 1996, is a process of dialogue and cooperation between Asia and Europe. The ASEM dialogue addresses political, economic and cultural issues, with the objective of strengthening the relationship between the two regions, in a spirit of mutual respect and equal partnership. The Customs and Tariff Bureau has actively participated in the Customs Directors-General(DGs)/ Commissioners Meeting and ASEM working group on customs matters under the Finance Minister s Meeting, playing a central role in promoting customs cooperation among ASEM members. At their ninth meeting in Thailand in 2011, DGs/Commissioners agreed on priority areas and actions which each member should focus on for the next two years (2012-2014), including follow-up actions on implementation of AEO where Japan acts as a coordinator of the members. 044 I n t e r n a t i o n a l A c t i v i t i e s 045

Advancing Cooperation and Collaboration with countries around the world Various mutual assistance agreements/arrangements have entered into force or are under negotiation, so as to build cooperative partnership with countries around the world. Customs s (CMAAs) Japan-France Customs (Entered into force in June 2012) Japan-Spain Customs Mutual Assistance Japan-Switzerland Economic (Entered into force in Sep. 2009) Customs is a legal framework which enables the contracting parties to mutually provide various assistances, including information exchange, so that each customs administration can properly implement its customs laws and regulations, and realize prompt customs clearance and effective border enforcement on harmful goods, such as illicit drugs and firearms, and goods infringing intellectual property rights. Japan has been actively pursuing the conclusion of CMAAs. In 2012, the agreement with France entered into force in June, and that with South Africa in July. Japan-Germany Customs Japan-Netherlands Customs (Entered into force in March 2010) Japan-Norway Customs Japan-GCC Free Trade Japan-EC Customs Mutual (Entered into force in Feb. 2008) Japan-Italy Customs Mutual (Entered into force in April. 2012) Kenya Policy dialogues with high level executives of the Customs administrations of African countries (Jan. 2006, and Feb. and Nov. 2007) Japan-South Africa Customs Mutual Assistance (Entered into force in July 2012) Japan-Russia Customs (Entered into force in May 2009) Policy dialogue with high level executives of the Customs administrations of Central Asian countries Policy dialogue with high level executives of the Customs administrations of Asian countries (Feb. 2007) Japan-China Customs Mutual- (Entered into force in April 2006) Japan-Thailand Economic (Entered into force in Nov. 2007) Japan-India Economic Partnership (Entered into force in August 2008 ) JICA Long-Term Expert Japan-Mongol Uls Economic Cambodia (April 2006) Japan-Korea Customs Mutual- (Entered into force in Dec. 2004) Japan-Brunei Economic (Entered into force in July 2008) Japan-Singapore Economic (Entered into force in Nov. 2002) ASEAN-Japan Comprehensive Economic (Entered into force in Dec. 2008) Japan-Indonesia Economic (Entered into force in July 2008) Japan-Malaysia Economic (Entered into force in July 2006) Japan-Korea Economic Japan-Hong Kong Customs Cooperative Arrangement (Entered into force in Jan. 2008) Japan-Macao Customs Cooperative Arrangement (Entered into force in Sep. 2008) Japan-Philippines Economic (Entered into force in Dec. 2008) Japan-Vietnam Economic (Entered into force in Oct. 2009) Japan-Australia Cooperative Framework between Customs Authorities (Entered into force in June 2003) Japan-Canada Customs Cooperative Arrangement (Entered into force in Jun. 2005) Officials dispatched for CSI Japan-New Zealand Cooperative Framework between Customs Authorities (Entered into force in April 2004) Japan-Australia Economic Japan-U. S. A. Officials dispatched for CSI Customs Mutual Officials dispatched to NTC (Entered into force in Jun. 1997) Japan-Peru Economic (Entered into force in March 2012) Japan-Mexico Economic (Entered into force in April 2005) Conference of National Directors of Customs of Latin America, Spain and Portugal (Nov. 2007) Japan-Chile Economic (Entered into force in Sept. 2007) International Activities Japan-Colombia Economic Japan-Brazil Customs Customs cooperation meetings with foreign customs administrations Japan-China-Korea Tripartite Customs Heads Meeting. In November 2011, the Fourth Japan-China-Korea Tripartite Customs Heads Meeting was held in Tokyo. The three customs heads exchanged views on border enforcement on IPR infringing goods, information exchange on illicit trafficking, and cooperation in the area of AEO programs. Especially as for the improvement of customs procedures, they agreed to establish Customs Procedures Working Group in addition to the existing IPR, Enforcement and Intelligence and AEO Working Group. In closing, they also agreed upon the Revised Action Plan of the Tripartite Customs Cooperation, which is a medium and long term action plan aimed at promoting cooperation among the customs administrations of the three countries. Japan-ASEAN Japan-Australia Current status of cooperation and collaboration with various countries around the world( As of April 2013 ) In June 2009, the Japan-ASEAN Customs Consultation was held in Kuala Lumpur, Malaysia, for a high-level policy dialogue on security and facilitation of trade. In order to achieve their missions, the importance of strengthening cooperation among the customs administrations in order to achieve their missions was confirmed. In May 2008, the Fifth Customs Cooperation Meeting was held in Tokyo with the CEO of Australian Customs Service (now Australian Customs and Border Protection Service). At the meeting, various topics were discussed, including continuous implementation of the Action Plan to Implement the Japan-Australia Joint Declaration on Security Cooperation, enhancement of information exchange, advancing preparations for an early launch of AEO mutual recognition consultation and a study on customs clearance systems with new information technology. A Joint Press Release was issued on that occasion. Japan-New Zealand In May 2009, the Third Customs Cooperation Meeting was held in Tokyo with the Comptroller of New Zealand Customs Service. At the meeting, various topics were discussed, including the leading roles of the two customs administrations at the WCO, cooperation for the smooth operation of mutual recognition scheme of AEOs between the two countries, and enhanced cooperation on effective enforcement against smuggling of illicit drugs. Japan-EC The Fifth Japan-EU Joint Customs Cooperation Committee was held in Brussels in June 2012, following the Fourth Committee in May 2011 in Tokyo.At the committee, there were discussions on AEO mutual recognition, enforcement on goods infringing intellectual property rights and risk management. Japan-Korea In May 2011, the Twenty-ninth Japan-Korea Customs Cooperation Meeting was held in Tokyo with the Commissioner of the Korea Customs Service. At the meeting, Mutual Recognition Arrangement on AEO Programs was signed, and has been implemented since November. Japan-Russia In May 2009, the Japan-Russia Customs Mutual Assistance was signed in Tokyo and entered into force on the same day. In October 2011, the Second Japan-Russia Customs Cooperation Meeting was held in Moscow. Besides the existing frameworks above, we are conducting exchanges with other foreign customs, which include mutual visits for discussions and system research on the other customs. 046 I n t e r n a t i o n a l A c t i v i t i e s 047

Japan Customs at the Forefront of CAPACITY BUILDING Japan Customs is the leading administration in providing capacity building activities to Customs administrations of developing countries. WCO Regional Training Centre Customs Capacity Building Country-focused Training Course for Malaysia As part of Official Development Assistance (ODA) activities, Japan Customs organizes and implements Capacity Building Program in conformity with the requests from Customs administrations of developing countries. The Program includes acceptance of trainees and dispatch of experts who are well-trained officials of Japan Customs, some of whom are Accredited Customs Experts of the WCO. These experts provide knowledge and skills, and promote interchanges with Customs administrations of developing countries. Capacity building, supporting the efforts toward reform and modernization of Customs administrations of developing countries, contributes to further facilitation of international trade through harmonization and simplification of Customs procedures, and to enhancing enforcement against illicit trafficking and the fight against terrorism. By these result-oriented capacity building activities, Japanese experts have supported and witnessed important improvements, such as establishment of common systems within ASEAN region and development of Master Trainers in East African region, aiming at better business and trade environment in these countries. In addition to the technical assistance, Japan Customs organizes policy dialogue with high-level executives of Customs administrations of developing countries in Asia and Africa for effective contribution and networking. In June 2004,the Customs Training Institute (CTI) in Japan was designated as the WCO Regional Training Centre (RTC)* in the AsiaPacific region. Since then, the CTI has hosted several WCO regional workshops in cooperation with the WCO Regional Office for Capacity Building (ROCB) in Bangkok. Recently, the CTI hosted a WCO regional workshop on countering drug smuggling by air passengers in July 2012, in which 36 Customs officials from 30 countries/territories in the Asia-Pacific region participated. In addition, WCO regional workshop on IPR was held in September 2012 and its participants actively discussed how to develop the enforcement regine.furthermore, the CTI attends the meetings of the heads of WCO Regional Training Centres, and contributes to sharing best practices on Customs training both in the region and around the world. * WCO Regional Training Centres: The training centres to provide training to Customs officials of WCO member countries. Currently, 24 centres are operating in the world,seven of which are in the Asia-Pacific region (Japan, China, Fiji, Hong Kong China, India, Korea, and Malaysia). 048 I n t e r n a t i o n a l A c t i v i t i e s 049