World Customs Organization

The history of the World Customs Organization (WCO) began in 1947 when the thirteen European Governments represented in the Committee for European Economic Co-operation agreed to set up a Study Group*. This Group examined the possibility of establishing one or more inter-European Customs Unions based on the principles of the General Agreement on Tariffs and Trade (GATT)**.

In 1948, the Study Group set up two committees - an Economic Committee and a Customs Committee. The Economic Committee was the predecessor of the Organization for Economic Co-operation and Development (OECD), the Customs Committee became the Customs Co-operation Council (CCC).

In 1994 the Council adopted the working name World Customs Organization, to more clearly reflect its transition to a truly global intergovernmental institution. It is now the voice of 179 Customs administrations which operate on all continents and represent all stages of economic development. Today, WCO Members are responsible for processing more than 98% of all international trade.

Among its strategic goals the following should be mentioned:

• promote the security and facilitation of international trade, including simplification and harmonization of Customs procedures (Economic Competitiveness Package)

• promote fair, efficient, and effective Revenue collection (Revenue Package)

• Protect society, public health and safety (Compliance and Enforcement Package)

• strengthen capacity building (Organizational Development Package)

• promote information exchange between all stakeholders

• raise the performance and profile of Customs

• conduct research and analysis

* Study Group – исследовательская группа

** General Agreement on Tariffs and Trade (GATT) – генеральное соглашение о тарифах и торговле, ГАТТ

b) Answer the following questions:

1. When was the World Customs Organization founded? 2. What is it based on? 3. How many customs administrations are included in WCO? 4. What does the Economic Competitiveness Package envisage? 5. What is the way of the WCO to revenue collection?

Exercise 8 Match the words and their explanation:

tariff (n)	something that precedes something else
predecessor (n)	to further or encourage the progress or existence of something
council (n)	the owner of one or more shares in a company
promote (v)	a view or representation of an organization or a firm
stakeholder (n)	a tax levied by a government on imports or occasionally exports for purposes of protection, support of the balance of payments, or the raising of revenue
profile (n)	manner or quality of functioning
performance (n)	an assembly of people meeting for discussion, consultation, etc

Exercise 9 a) Memorize some names of documents which should be presented at the Customs or be enclosed with the accounts when goods are declared.

air waybill – авіа вантажна накладна (коносамент)

bill of lading – транспортна накладна, коносамент

certificate of origin – сертифікат походження

commercial invoice – торговий рахунок-фактура

customs invoice – митний рахунок

customs declaration – митна декларація

customs invoice – митний рахунок

export licence – ліцензія на експорт

freight document – вантажний (транспортний) документ

notice of arrival – повідомлення про прибуття

packing list – пакувальний лист (реєстр)

permit – дозвіл

pro forma invoice – рахунок-проформа

dangerous goods declaration – декларація про небезпечні вантажі

b) Complete the list of documents used in foreign trade and transportation with words from the box.

approved ▪ authority ▪ required ▪ commercial ▪ indicating

draft ▪ receipt ▪ conditions ▪ carriage ▪ hazardous

1 Commercial invoice

A document that contains specific information regarding the goods shipped and the … agreed between buyer and seller.

2 Certificate of origin

Document used in foreign trade which states where the goods were produced. It is often … by customs authorities.

3 Packing list

A document which specified the contents of any form of packaging, e.g. boxes, containers, cartons, without … the value of the goods shipped.

4 Air waybill

A contract between airline and shipper. It is a shipping document which states the terms and conditions of … and is also a receipt for the consignment.

5 Consular invoice

A special kind of invoice sometimes required by the importing country. It needs to be … by an embassy.

6 Pro forma invoice

A … invoice which the seller prepares before the actual shipment takes place.

7 Export licence

A document which is granted by a government … and states that specified goods can be exported.

8 Customs invoice

A specific document required by customs in some countries e.g. US when importing goods. It includes more details than a … invoice.

9 Dangerous goods declaration

Certificate prepared by the shipper/consignor which stated that … goods are handled according to international shipping regulations.

10 Bill of lading

A contract between carrier and shipper which specified the goods to be shipped and the delivery terms. It is also a … of shipment and accompanies the goods until they reach their destination.

Exercise 10 a) Read the information about rail transport documents.

International carriage of freight by rail is governed by two main sets of rules:

• the CIM Uniform Rules (in Western and Central Europe, Near East and North Africa), and

• the SMGS ( in Eastern Europe and Asia).

When transporting goods, operator should have the appropriate document such as the consignment note which confirms that the rail carrier has received the goods and that a contract of carriage exists between trader and carrier. And it doesn’t give its holder rights of ownership or possession of the goods. Key details to be provided in the note include: description and nature of the goods, method of packing, number of packages and their weight, special marks, the agreed transit period, the agreed route, the names and addresses of the consigner, carrier and consignee, etc. Consignment notes are made out for each consignment.

Consignment notes may be of several types: CIM consignment note (накладна ЦИМ)¹, SMGS consignment note (накладна СМГС)², CIM/SMGS consignment note (єдина накладна ЦИМ/СМГС) and consignment notes established under bilateral or multilateral arrangements.

Another document of importance in transportation is the certificate of origin which is issued by the Chamber of Commerce as proof of where the goods were produced. There are two reasons why a certificate of origin might be necessary:

• When there is a trade agreement between the exporting and importing countries. In this case, if it can be proved that the goods were made in the exporting country, duty is charged at a lower rate or possibly not charged at all.

• For political reasons, to prove that importers aren’t importing goods from countries with which trading relations are not desired.

In the case of multimodal transport such documents as Multimodal Bill of Lading and Rail Waybill can be used.

¹CIM – ЦИМ (єдині правові накази до договору а міжнародному залізничному перевезенні вантажів)

²SMGS – ЦМГС (угода о міжнародному залізничному вантажному сполученні_

b) Answer the following questions.

1. What set of rules is used for transporting the goods on the territory of Ukraine, Russia and Belorussia? 2. What information does the consignment note provide? 3. Does the consignment note give its holder rights of ownership of the goods? 4. What types of consignment notes are mentioned? What does the choice of consignment note depend on? 5. What document certifies the origin of the goods and which body issues it? 6. In which cases can the certificate of origin be of great importance?