English for customs officers

TEXT 17.1. CUSTOMS CONVENTIONS1

Since the beginning of the century, there has always been a continuous effort to standardize and harmonize Customs formalities with the aim of simplifying and facilitating international trade. In 1923, the League of Nations signed in Geneva the International Convention relating to the Simplification of Customs Formalities. Certain Customs issues were also included in the General Agreement on Tariffs and Trade (GATT) of 1947. In 1950 the Convention establishing a Customs Cooperation Council (CCC) was signed.

The Customs Co-operation Council was and still is the only intergovernmental worldwide organization competent in Customs matters. Numerous studies carried out by the Council on the principal Customs procedures such as importation, exportation, duty-free trade, inward and outward processing, transit, warehousing, temporary admission, etc., resulted in a series of conventions and recommendations designed to solve specific Customs issues. The following table contains a short list of Conventions and agreements sponsored or administered by the Customs Co-operation Council (The full list is presented in Summary of Position)2.

1 A convention is an agreement between nations, states, etc.

A Customs convention is a multilateral international agreement regulating the issues related to simplification of Customs formalities in trade between state nations.

2 http://www.wcoomd.org/en/about-us/legal-instruments/conventions.aspx; http://www.wcoomd.org/en/aboutus/legalinstruments/~/media/A30C5AB2897E 4C0484F20A910FB7D6A3.ashx

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For example, the Istanbul Convention gathers all existing temporary admission facilities under a single instrument and provides a framework for dealing with any new categories of goods needing temporary admission facilities. The Convention also simplifies and harmonizes Customs formalities in connection with temporary admission, in particular by making the acceptance of the ATA Carnet obligatory in all cases where a Customs document and security are required for temporary admission. The goods are covered by a single document known as the ATA carnet that is secured by an international guarantee system. The term «ATA» is a combination of the initial letters of the French words «Admission Temporaire» and the English words «Temporary Admission». The ATA carnet serves as a goods declaration at export, transit and

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import. The ATA carnet is now the document most widely used by the business community for international operations involving temporary admission of goods to promote and develop international trade.

Complex trade documentation and procedures act as barriers in international trade to the detriment of national economies. That is why trade documentation and procedures have been subjected to a systematic review at both national and international level with a view to making them as simple as possible. This fact was recognized by the CCC and expressed in the Preamble to the Kyoto Convention which was signed in 1973. The Provisions of the Annex call for simplified Customs formalities in order to be efficient. The simplification of Customs procedures often leads to a reduction in the number of documents required by Customs, thus further reducing the costs of importing and exporting. The Kyoto Convention has the effect of simplifying and harmonizing Customs legislation and consequently facilitates trade.

The Harmonized System Convention came into force on 1 January 1988. Contracting Parties are obliged to ensure that their Customs tariffs and statistical nomenclatures for both imports and exports are in conformity with the Harmonized System.

The HS is an internationally standardized system of names and numbers for classifying traded products developed and maintained by the World Customs Organization (WCO).

The HS Nomenclature comprises about 5,000 commodity groups which are identified by a 6-digit code and arranged according to a legal and logical structure based on fixed rules.

The first four digits are referred to as the heading. The first six digits are known as a subheading. Countries that have adopted the Harmonized System are not permitted to alter in any way the descriptions associated to a heading or a subheading nor can the numerical codes at the four or six digit level be altered. This is what keeps the Harmonized System harmonized.

Individual countries may extend a Harmonized System number to eight or ten digits for Customs purposes, and to eight or ten digits for export purposes.

Correct and uniform application of the HS in an efficient manner facilitates international trade and investment and promotes compliance with fiscal and trade rules or laws. Misclassification of goods could lead

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to loss of revenue, evasion of trade controls, delays in clearance and distortion of trade data.

A good nomenclature cannot be an absolutely rigid instrument. The Harmonized System is of use only if it is kept in step with technical progress. Timely implementation of the HS is very important, in order to avoid having different versions in existence at the same time, and consequent confusions in trade circle which could affect the reputation of the HS. Equally important is the periodic updating of the HS in order to prevent it from becoming obsolete.

The updating of the HS is a continuous process, requiring constant effort by the WCO in a rapidly changing trade environment. A considerable amount of time and resources have to be devoted to this work in order to keep abreast of current requirements.

EXERCISES

I. Match the words from the text with their corresponding definitions.

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II. Make as many complete phrases as possible by matching the opening phrase with a preposition.

III. Make questions about the text to go with the answers below.

3.What convention … ? 3. The Istanbul Convention does.

4.What effect … ? 4. The Kyoto Convention has the effect

8. How … ? 8. It is supposed to be amended in accordance with the procedure laid down in Article 16 of the HS Convention.

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IV. Which of the definitions given below would you use to speak about Customs Conventions?

V. What specific Customs issues does each Convention solve? (the Istanbul Convention, the Kyoto Convention, the Harmonized System Convention). Choose from the list below.

harmonizes import Customs tariffs;

gathers all existing temporary admission facilities;

simplifies and harmonizes Customs procedures;

represents a valuable instrument to classify goods;

provides a framework for dealing with goods needing temporary admission facilities;

serves as a framework for international trade and other needs;

gives a multipurpose nomenclature;

reduces the number of documents required by Customs;

simplifies Customs formalities in connection with temporary admission;

reduces the costs of importing and exporting;

provides a systematic and methodical classification of goods;

promotes and develops international trade;

facilitates trade;

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simplifies Customs legislation;

simplifies trade documentation and procedures.

VI. Translate the following questions into English.

1.Когда и где Лигой Наций была подписана международная конвенция по упрощению таможенных процедур?

2.Является ли Совет по таможенному сотрудничеству единственной компетентной международной организацией по таможенным вопросам?

3.Чем увенчались многочисленные исследования, проведенные Советом таможенного сотрудничества по основным таможенным процедурам, таким, как импорт и экспорт, беспошлинная торговля, транзит, складирование, временный ввоз, переработка внутри и за пределами страны?

4.Что обеспечивает Стамбульская конвенция для новой категории товаров, которые нуждаются в определенных условиях для временного ввоза?

5.Почему Стамбульская конвенция имеет особое значение для развития и продвижения международной торговли?

6.Почему в последнее время торговая документация и торговые процедуры подвергались систематическому анализу как на национальном, так и на международном уровне?

7.Должны ли таможенные процедуры быть сложными для того, чтобы быть эффективными?

8.Каким образом принятие Киотской конвенции сокращает расходы по импорту и экспорту и соответственно способствует международной торговле?

9.Что обязаны обеспечить договаривающиеся стороны, согласно Конвенции о гармонизированной системе, которая вступила в действие 1 января 1988 года?

10.Почему такая система классификации приносит пользу лишь

втом случае, если она не отстает от технического прогресса?

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are divided into Chapters. All Annexes and Chapters are accompanied by Implementation Guidelines. These do not form part of the legal text. They provide guidance to Customs agencies on administrative practices that will help them to implement Kyoto effectively.

To become a party to the Convention a country must accept the Body and the General Annex in their entirety. The General Annex and each Specific Annex1 consist of Chapters which subdivide an Annex.

The structure of the revised Convention

The Body sets out the basic provisions of Kyoto, and contains the preamble (which sets out the goals and principles of the Convention) and provisions relating to scope, structure, administration, accession and amendment.

1 «Specific Annex» means a set of provisions applicable to one or more Customs procedures and practices referred to in the Convention. The term «Customs procedure» in this context (as in the title of the Convention) is not used in the narrow sense of the treatment assigned to imported goods; it covers all provisions relating to a particular sphere of Customs activity.

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Each Annex consists of an introduction summarizing the subjectmatter, followed by a set of definitions clarifying the main Customs terms used and, finally, the provisions themselves, which set out the rules governing the implementation of the procedure concerned. These provisions take the form either of Standards, whose general application and incorporation in national legislation are considered essential for harmonization and simplification, or the form of Recommended Practices, which are provisions recognized as constituting progress towards the harmonization and simplification of Customs procedures, and whose application is considered to be desirable. Both categories of provisions may be accompanied by Notes, intended to indicate some of the ways in which the relevant Standard or Recommended Practice might be applied.

The revised Convention contains new and obligatory rules for its application which all Contracting Parties must accept without reservation.

Kyoto Convention is the blueprint for modern and efficient Customs procedures in the 21st century. Once implemented widely, it will provide international commerce with the predictability and efficiency that modern trade requires. The revised Kyoto Convention elaborates several key governing principles:

of transparency and predictability of Customs actions;

standardization and simplification of the goods declaration and supporting documents;

simplified procedures for authorized persons;

maximum use of information technology;

minimum necessary Customs control to ensure compliance with regulations;

use of risk management and audit based controls;

coordinated interventions with other border agencies;

partnership with the trade.

The adoption and implementation of the revised Convention will deliver tangible benefits to all Contracting Parties by increasing transparency and efficiency in Customs administration while contributing to reduced transaction costs and enhanced trade security.

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