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WCO develops a Framework of Standards to Secure and Facilitate Global Trade
On the occasion of the Policy Commission meeting held from 7 to 9 December 2004 in Amman, Jordan, the WCO accepted the first draft Framework of Standards to Secure and Facilitate Global Trade. This Framework sets out principles and Standards which together constitute a set of measures that should be adopted by all WCO Members. It is aimed at providing uniformity and predictability to the conduct of trade, and ensuring security and facilitation for the passage of goods at the border.
Most of the Standards are drawn from existing WCO security and facilitation measures, including programmes developed by Member administrations as a response to the potential threat posed by terrorist activity for the international movement of goods around the world. The Standards have been consolidated to guarantee ease of understanding and facilitate rapid international implementation.
The WCO Framework was developed with four principles in mind, namely that Customs services commit to:
- harmonizing advance electronic manifest information to allow risk assessment;
- using a common risk management approach; and
- using non-intrusive detection equipment to effect examinations,
- leading to the accrual of benefits to nations, Customs and business.
1. The Customs-to-Customs pillar whose objective is to encourage co-operation among Customs administrations on the basis of common and accepted standards, in order to maximize the security and facilitation of the international trade supply chain. The central tenet of this pillar is the use of advance electronic information to identify containers that pose a potential risk of terrorism. The use of smarter and more secure containers is also a vital component of this pillar.
2. The Business-Customs pillar which specifies the need for Customs to establish partnerships with the private sector. Its main aim is the creation of an international system for identifying businesses that offer a high degree of security guarantees in respect of their role in the supply chain. If they fulfil the criteria defined in the Framework, these business partners are classified as "authorized traders" and can therefore receive tangible benefits. These include quicker movement of low-risk cargo through Customs, improved security levels, optimized supply chain costs through security efficiencies, enhanced reputation for the company, improved understanding of Customs requirements, and better communication between the company and the Customs administration.
The Policy Commission recognized the pressing need to implement a capacity building policy for Members who adopt the Framework of Standards, in order to ensure that their Customs administrations modernize and adapt. This policy will essentially be based on the use of diagnostic tools developed by the WCO Secretariat to finalize the pilot projects to be presented, with a view to obtaining funding, to international lending institutions (World Bank IMF, regional development banks, etc).
The Policy Commission asked the WCO Secretariat to rapidly initiate a global information and consultation process with WCO Members and the private sector. An action plan will be developed during the next four months for the five continents.
The Policy Commission hopes that the WCO Council will adopt the Framework of Standards to Secure and Facilitate Global Trade at its June 2005 Sessions. This will form the WCO s contribution to the facilitation work initiated within the World Trade Organization (WTO).
For further information, please visit WCO Web site: www.wcoomd.org.
