Topics, I course II term

Customs Enforcement duties

Every customs administration has enforcement duties. Because of the increasing need to fight customs fraud ( intellectual property rights violations, revenue fraud, and transshipment, for example), narcotics trafficking, money laundering, and export violation ( trafficking in weapons and munitions, among others), customs agencies require a greater range of enforcement authority.

The WCO’s Expert Working Group on commercial fraud recommends the following set of enforcement powers: examination ( compliance with the customs law); right of search (illegal importation and exportation); sampling; seizure; right to access documents; post-import and post-export audit; detention or arrest; charge; prosecution; restraint of assets; exchange of information and inquiries on behalf of other customs administrations

Proponents for greater enforcement authority and responsibility for customs offer two reasons: 1) efficiency and effectiveness and 2) morale of customs officers. First, customs is uniquely situated to enforce customs and other laws in border regions. It has the infrastructure to examine goods and people that move across the borders. It also has familiarity with cross-border activities. Risk management tools, information technology, and cooperation with other government agencies and other customs administrations enhance customs’ abilities to enforce customs and other laws at the borders.

Second, the advocates of a greater enforcement role for customs also claim that customs officers should be given the authority to search, detain, arrest, seize, and investigate people, goods and means of transportation because limiting customs’ enforcement powers to revenue collection would demoralize customs officers. They believe the practice of handling over the investigation to another government agency such as the police discourages customs officers from discovering violations at the borders. This, in many cases, results in a loss of incentives, such as additional salary benefits and social recognition, for customs officers.

Eu Customs Role in the Fight against Terrorism

The terrorist attacks in New York, Madrid, Moscow, Beslan and London have changed the world in which we live. The fight against terrorism and protection of citizens has become for governments a strategic issue. We are facing a serious challenge – how best to defend our trading and transport systems from terrorism – and preserve the benefits which consumers and businesses derive from today’s systems. The European Council called for the protection of all forms of transport systems to ensure effective border control.

A particular security concern is the misuse of a container to smuggle a nuclear or radiological device. The EU Customs Security Program recognizes that security is one of the primary expectations of European citizens. So, it focuses on a common approach to border control. The program balances control with trade facilitation.

1) Traders are required to provide customs authorities with information on goods prior to import and export.

2) Reliable traders will benefit from trade facilitation through a special program (Authorized Economic Operator)

3) And finally, a mechanism for setting uniform risk-selection criteria is introduced.

This will help customs to carry out effective control of high-risk shipments by means of automated systems as well as new technologies.

Information Technology in Customs work

IT is assuming an increasingly important role in modern customs administration.

Beginning in the early 1970s, customs administrations of many developed economies began to recognize the significant advantages of using technology-based solutions to improve their efficiency. They designed and developed their own customs computer systems, tailored to meet national needs. Over the years such systems have been enhanced, simplified, and in some respects standardized in line with international best practices. As a result, such countries have computer systems that reflect modern customs management practices such as self-assessment, clearance on minimum information, deferred payment of revenues, an intelligence-led and targeted risk management approach to clearance of international consignments, and sophisticated post-clearance audit regimes.

The historical experience with ICT of many developing and emerging economies has been quite different. Customs administrations of many developing countries lacked the necessary financial and human resources and access to a well-established domestic IT market. So they have been slow to take advantage of the full potential offered by the application of modern technological advances. Fortunately, this situation has changed over recent decades. Customs-specific computer systems have become more available, and the international donor community has stepped up support to strengthen customs administrations. Yet, the technological structure and the support available in many developing countries lags far behind that which is available in more developed economies. Moreover, when automated systems are introduced, they are often not used to their full potential.

Designing new, simplified practices and processes in line with international best practices requires changes in government policy, in the legislative base, in the application of human resources management policies and procedures, and in the way customs policies and procedures are applied. The automation efforts for customs processes must be cognizant of at least two key features of modern customs practices:

1) Modern customs processes must be simple and transparent but cannot be simplistic.

2) Modern customs processes are migrating from physical to post-clearance control, with substantial reliance on self-assessment by taxpayers.

International Customs cooperation.

Russia is closely cooperating with its main trading partners within the framework of the Customs Union. Technical Regulations covering different types of products have been developed . Some of them have already come into force, while others will come into force in the period 2012 – 2015. A number of other Technical Regulations are still being developed. The Permanent Committee of the Customs Union of Belarus, Kazakhstan and Russian has signed a memorandum of understanding with the Eurasian Economic Commission. Under the memorandum, the Permanent Committee of the Union State and the Eurasian Economic Commission will work together to establish cooperation in the field of trade policy, simplify trade procedures and technical regulations, standardize and use uniform measuring units, establish energy cooperation and pursue a common migration policy. Russia is coordinating its activities with the European Union and the WTO countries, too. It is closely following the developments in the work of customs agencies of developing countries. Cooperation is launched with China in the framework of pilot projects. We test secure trade lanes and exchange information for security purposes. Russia’s overall objectives in its international relations is mutual recognition an reciprocity of security controls and standards, as well as business partnership programs.