WCO news Recovery Renewal Resilience - n 94 | February 2021

 
WCO news Recovery Renewal Resilience - n 94 | February 2021
WCO news
n°94 | February 2021

Recovery
Renewal
Resilience

   World Customs Organization    mag.wcoomd.org
WCO news Recovery Renewal Resilience - n 94 | February 2021
WCO news Recovery Renewal Resilience - n 94 | February 2021
HIGHLIGHTS                                  WCO news n° 94 February 2021   3

16 DOSSIER Dematerialization         34 DOSSIER
of Customs procedures: Feedback      TradeTrust:
from Moroccan Customs                accelerating the
                                     digitalization of
                                     international trade

38 DOSSIER Improving           50 PANORAMA Assessing
Strategic Trade Detection      the cargo release process:
and Classification through     Brazil shares its experience
Machine Learning

74 FOCUS Food and feed safety: identifying missing links
to unleash the full benefits of cooperation
WCO news Recovery Renewal Resilience - n 94 | February 2021
4       TABLE OF CONTENTS

    5 FLASH INFO
    5   The WCO launches its new strategic planning cycle
    6   Project TENTACLE: enhancing law enforcement
        capacity to tackle money laundering and terrorism
        financing
    8   Environmental enforcement: overview of WCO latest
        and future activities
    10 New documents added to the WCO E-Commerce
       Package
    10 Data Analytics course available on CLiKC!

    12 DOSSIER: RECOVERY, RENEWAL, RESILIENCE
    13 A few words about the WCO theme for 2021
    16 Dematerialization of Customs procedures: Feedback
       from Moroccan Customs
    22 Digitization of ATA Carnets: overview of the ICC pilot
       project
    26 How digital tools can improve compliance with SPS
       measures
    30 What the example of Montenegro’s new pre-arrival
       processing capabilities tell us about Customs
       performance measurement
    34 TradeTrust: accelerating the digitalization of
       international trade
    38 Improving Strategic Trade Detection and Classification
       through Machine Learning
    42 Improving data sharing with blockchain
    46 Malaysia Customs conducts online Factory Acceptance
       Test                                                     Editor / Writer Laure Tempier
                                                                Publication Assistant Sylvie Degryse
    47 PANORAMA                                                 Online subscriptions
                                                                http://www.wcoomd.org/en/media/wco-news-magazine/subscriptions.aspx
    47 Waste trafficking: suggestions to improve enforcement    Advertising

    49 Single Window and Service Level Agreements facilitate
       cross border trade in Oman                               Bernard Bessis bernard.bessis@bb-communication.com
                                                                Publisher
    50 Assessing the cargo release process: Brazil shares its
                                                                World Customs Organization
       experience                                               Rue du Marché, 30, B-1210 Brussels, Belgium
                                                                Tel.: +32 (0)2 209 94 41 - Fax: +32 (0)2 209 92 62
    55 POINT OF VIEW                                            communication@wcoomd.org
                                                                www.wcoomd.org
    55 Communications and collaboration tools:                  Editorial note
       understanding the risks and opportunities                WCO News is distributed free of charge in English and in French to Customs
                                                                administrations, international organizations, non-governmental organizations, the business
    58 Harmonization of procedures is still work in progress    community, and other interested readers. Opinions expressed in WCO News are those
                                                                of the contributors and do not necessarily reflect the official views of the World Customs
    62 Transforming Customs operations management teams         Organization. Contributions in English or French are welcome, but should be submitted
                                                                no later than 15 April 2021 for consideration. The WCO reserves the right to publish,
       into strategic players                                   not to publish, or to edit articles to ensure their conformity with the magazine’s editorial
                                                                policy and style. The WCO Communications Service is available to answer all requests for
    64 FOCUS: PRODUCT QUALITY AND SAFETY                        submission of contributions, subscriptions, and any other enquiries relating to WCO News.
                                                                Please email communication@wcoomd.org.
                                                                Copyright © World Customs Organization
    66 Operation STOP: Achievements and future prospects        All rights reserved. Requests and enquiries concerning translation, reproduction and
    70 Controlling product safety and security in times of      adaptation rights should be addressed to copyright@wcoomd.org.
                                                                Acknowledgements The Editorial Team wishes to express its sincere thanks to all who
       COVID-19                                                 contributed to this publication.
                                                                Illustrations Our thanks also extend to all who provided photos, logos and drawings to
    74 Food and feed safety: identifying missing links to       illustrate this issue.
       unleash the full benefits of cooperation                 Photo cover © Paulo Paiva / AGIF
                                                                Photo caption Containers carrying doses of one of the vaccines against COVID-19 are
    78 Nigeria: two agencies, one mission                       unloaded at Guararapes International Airport (Brazil) on 18 January 2021.
                                                                Design www.inextremis.be
    80 EVENTS
    80 Technology in times of pandemic
WCO news Recovery Renewal Resilience - n 94 | February 2021
FLASH INFO                                                                                                WCO news n° 94 February 2021           5

The WCO launches its new strategic
planning cycle
In December 2019, the WCO Policy Commission               A WCO strategy clearly linked to the
clearly expressed the need to strengthen the linkage      global environment
between the WCO Strategic Plan, a document that           To implement this approach, a document presenting
sets the objectives and concrete targets to be met        a variety of potential scenarios and Customs’
by WCO Members over a three-year period, and              response to each of them will be produced. It will
the Environmental Scan, which offers an annual            take the form of a new type of WCO Environmental
view of the main global trends currently impacting        Scan that will cover a three-year period and will feed
Customs’ operations or which could affect them            directly into the Strategic Plan to be established
in the future. In addition, through various WCO           for the period 2022-2025. WCO Members and
working bodies, Members have sought the use               the Secretariat will work together in drafting the
of a forward-looking methodology to prepare               document and will also consult with private sector
more effectively for the upcoming challenges and          representatives. To that end, in November 2020,
opportunities facing the Organization.                    the WCO Secretariat held a first round of four
                                                          virtual regional meetings, with two more planned for
Strategic foresight                                       the remaining regions in 2021. Separate meetings
The future is difficult to predict, as clearly            also took place between the WCO Secretariat’s
demonstrated by the COVID-19 pandemic.                    management team and the members of the WCO
However, this unpredictability is not an excuse to be     Private Sector Consultative Group in January 2021.
unprepared, especially now. Most observers agree
that many managers and decision-makers from the           The Strategic Plan 2022-2025 will be developed
private and public sectors could have better prepared     on this basis, with the aim of setting priorities and
their organizations to respond to the current health      targets for the Customs community. The WCO
crisis and the myriad and complex issues it has raised.   approach can be summarized as follows:

Although strategic foresight is still a relatively          Environmental Scan         Identification of priorities        Strategic Plan
unknown concept within Customs administrations,
it could represent the way forward by ensuring that         Developed the year            Members' and staff
                                                                                                                      Built on the outcomes of
Customs is equipped with the necessary regulatory         before the next triennial       involvement in the
                                                                                                                      the Environmental Scan
                                                               Strategic Plan                  process
and technical tools to respond adequately to a
wide range of plausible futures. To quote the
Organisation for Economic Co-operation and                The next Environmental Scan and the Strategic Plan
Development (OECD), “strategic foresight is a             2022-2025 will enable the WCO Secretariat and
structured and systematic way of using ideas about        WCO Members to commit jointly to specific shared
the future to anticipate and better prepare for change.   targets. The underlying objective is to reinvigorate
It is about exploring different plausible futures that    the Customs community and ensure that it moves
could arise, and the opportunities and challenges they    forward, in harmony, to meet anticipated and
could present. We then use those ideas to make better     unforeseen challenges.
decisions and act now.”1
                                                          The new Environmental Scan will be presented for
The strategic planning cycle which recently               adoption to the June 2021 Policy Commission and
commenced at the WCO has this very objective in           Council. The Strategic Plan 2022-2025 is expected
mind: using foresight methodologies that enable the       to be endorsed one year later, at the June 2022
Organization to predict the future more accurately,       Policy Commission and Council.
thus ensuring that Customs and the WCO keep
pace with the changing environment and continue           More information
to serve economic operators and governments.              http://www.wcoomd.org

1   https://www.oecd.org/strategic-foresight
WCO news Recovery Renewal Resilience - n 94 | February 2021
6       Flash info

    Project TENTACLE: enhancing law
    enforcement capacity to tackle
    money laundering and terrorism
    financing
    By the AML-CTF Programme Team, WCO Secretariat

    Project TENTACLE, led by the WCO Secretariat and funded by the
    U.S. Department of State - Bureau of International Narcotics and Law
    Enforcement Affairs (DoS INL) -, aims to raise awareness of money
    laundering activities and schemes in the Customs area, as well
    as to augment the enforcement capabilities of Customs, financial
    intelligence units (FIUs) and police services. A joint effort with
    the Egmont Group for FIUs and with INTERPOL, Project TENTACLE
    focuses its efforts on money laundering and terrorism financing in
    Asia, Latin America, Africa, Eastern Europe and the Middle East.

    Background                                                money laundering, the WCO established its
    The global movement of illicit proceeds and               Anti-money Laundering and Counter-terrorism
    terrorism financing are a widespread and                  Financing (AML-CTF) Programme in 2018 The
    proliferating threat to global security and to            AML-CTF Programme, which is the most recently
    the stability of the global financial system. The         established law enforcement programme in the
    International Monetary Fund estimates that the            Compliance and Enforcement Sub-Directorate,
    amount of money laundered on an annual basis is           was created and designed to strengthen Members’
    between USD 1.6 trillion and USD 4 trillion, which        capacity to combat money laundering and illicit
    is equivalent to between 2 and 5 percent of global        financial flows.
    domestic product. The global economic impact of
    terrorism is also alarming. From 2008 to 2018, the        In January 2019, thanks to financial assistance
    yearly global economic impact of terrorism was            from the Japanese Customs Service CCF Fund,
    approximately USD 58 billion1.                            the WCO AML- CTF Programme launched
                                                              Operation TENTACLE at the WCO Asia/Pacific
    Transnational criminal organizations (TCOs) and           Regional Workshop on Anti-money Laundering
    terrorist organizations (TOs) perennially exploit         and Terrorism Financing in Kashiwa, Japan. The
    Customs nodes for the movement and laundering             Workshop was attended by representatives of 19
    of illicit money generated by their illegal activities.   Customs services, INTERPOL and the FIU Japan.
    Customs, as the first line of defense at external
    borders and inland ports of entry, have a crucial         From 26 August to 6 October 2019, a subsequent
    mandate to identify and prevent the movement of           Asia-Pacific operational effort was conducted with
    smuggled currency/currency equivalents, gems/             the support of the 19 Customs services concerned,
    precious metals and other items of monetary value         and INTERPOL’s Financial Crimes Unit. This led to
    across international borders.                             the seizure and detention of over $5 million in a
                                                              combination of currency and gold that were being
    Being cognizant of this growing threat, and the           smuggled across international borders by bad
    primary role that Customs play in combatting

    1   Global Terrorism Index, 2019.
WCO news Recovery Renewal Resilience - n 94 | February 2021
WCO news n° 94 February 2021    7

                                                                                                                     Available publications
actors2. The operation also resulted in the arrest of                         • It highlights salient,
14 money launderers.                                                            non-nominal seizure                  WCO and the Egmont Group (2020).
                                                                                events connected to                  Customs – FIU Cooperation Handbook
The success of Operation TENTACLE Asia-Pacific                                  currency seizures,                   (available in English and French /
                                                                                                                     Spanish, Arabic, Portuguese and
led to the establishment of Project TENTACLE, a                                 as well as seizures of
                                                                                                                     Russian version in preparation).
three (3)-year effort to combat money laundering                                currency equivalents,
and terrorism financing in the Customs arena.                                   coins, gems and                      FATF and OECD (2010). International Best
                                                                                precious metals,                     Practices: Detecting and Preventing the
Project TENTACLE                                                                an d any seizures                    Illicit Cross-Border Transportation of
                                                                                                                     Cash and Bearer Negotiable Instruments
Project TENTACLE, the primary operational effort                                connected to TBML.
                                                                                                                     (English, Arabic, Spanish, French).
of the AML/CTF Programme, is an initiative led by
the WCO Secretariat and aimed at combating bulk                               Customs-FIU                            Asia/Pacific Group on Money Laundering
cash smuggling and the smuggling of gems and                                  Cooperation                            (2012). APG Typology Report on Trade
precious metals. Additionally, Project TENTACLE                               Handbook (CFCH)                        Based Money Laundering.
places emphasis on the advancement of money                                   T he WCO and the            WCO (2008). Customs Enforcement
laundering and terrorism financing investigations                             Egmont Group jointly        Guidelines on Countering Money
following border seizure events, as well as                                   developed the CFCH          Laundering and Terrorist Financing
collaboration between Customs services and both                               to serve as a reference     (English, Arabic).
FIUs and police services. The WCO Secretariat                                 for Customs services        http://www.wcoomd.org/en/topics/
conducted its first Project TENTACLE AML-CTF                                  and FIUs in combating       enforcement-and-compliance/activities-
Workshop for Africa in September 2020, and will                               money laundering and        and-programmes/money-laundering-
hold another one for Latin American countries in                              terrorism financing         and-terrorist-financing.aspx
collaboration with INTERPOL and the Egmont                                    activities within the
Group in January 2021.                                                        Customs arena. The
                                                                              WCO and Egmont Group simultaneously published
Project TENTACLE improves regional security                                   the CFCH online on 27 March 2020.
by conducting capacity building, enforcement
operations and intelligence-enhancing efforts                                 The CFCH aims to enhance global joint targeting
around the world. It not only aims to raise the                               of money laundering in the Customs sector, such
capabilities of Customs delivering training in                                as bulk currency smuggling, gem/precious metals
detection and investigative techniques, but also                              smuggling and TBML. Its objective is also to assist
strengthens members’ capabilities in financial                                Customs services and FIUs around the world in
crime intelligence and operational planning. The                              creating more robust and formalized structures to
operational results of TENTACLE are tracked and                               combat money laundering and terrorism financing
uploaded into the FinCRIME Online library.                                    and develop better financial crime intelligence. The
                                                                              printed versions of the CFCH will be available in
The FinCRIME Online Library                                                   the near future in English, French, Spanish, Arabic,
The FinCRIME Online library is the new WCO                                    Portuguese and Russian.
Customs financial crime tool and intelligence
platform, hosted within the WCO Customs                                       Operation TENTACLE capacity building
Enforcement Network (CEN).                                                    workshops
                                                                              Project TENTACLE utilizes AML and CTF experts
• It serves as reference point for identified money                           to conduct training workshops designed to raise
  laundering schemes that touch upon the Customs                              the skillsets of front-line Customs officers and
  sector, such as the Black-market Peso Exchange,                             mid-level supervisors, as well as FIU analysts, in
  bulk currency smuggling, and trade-based money                              tackling currency smuggling, gems/precious metals
  laundering (TBML) schemes.                                                  smuggling and Trade Based Money Laundering
                                                                              (TBML). The Project also draws upon experts
• It highlights new trends and mechanisms for                                 from FIUs and INTERPOL to support its capacity
  money laundering in the Customs realm, as well                              building efforts.
  as concealment methods. Top Customs cases and
  alerts are also highlighted.                                                More information
                                                                              enforcement@wcoomd.org

2   Individual or entity with the prior criminal conviction, or who has been sanctioned by the court or regulator.
WCO news Recovery Renewal Resilience - n 94 | February 2021
8   Flash info

             Environmental enforcement: overview
             of WCO latest and future activities
             By the Environment Programme team, WCO Secretariat

             As part of the WCO Environment Programme, the                             Programme team in order to discuss their needs
             WCO Secretariat is working to solidify the role of                        and opportunities for improvement.
                 Customs in environmental matters. Customs
                    administrations are regularly reminded of                          Illegal Wildlife Trade
                        the importance of implementing the                             A number of sub-Saharan African, Asian, and South
                          various environmental agreements                             American Customs administrations participating
                             in force, existing training material                      in the INAMA Project, which aims to enhance
                               is updated and new material                             Customs’ capacity to counter wildlife trafficking
                                 developed, exhaustive capacity                        by ensuring that all trade in wild plants and animals
                                   building is provided, and                           is legal, have been given the opportunity to follow
                                    enforcement operations are                         training on the working methods used to combat
                                     organized.                                        fraud. These range from the identification of an
                                                                                       offence to the storage of seized assets, including
                                         But more still needs to                       reporting, collecting and preserving evidence. This
                                          be done to ensure the                        training has been developed and delivered as part
                                          implementation of the                        of the WCO COPES Programme. To date, two
                                           © AdobeStock

                                           various environmental                       workshops have been organized and held online
                                           agreements. United                          due to the COVID-19 pandemic.
                                           Nations Secretar y-
                                           General António                             An additional COPES workshop was organized
                                           Guterres warned in                          for some administrations in sub-Saharan French
                                           2019 that a “point of                       speaking Africa under the auspices of the
                                           no-return” on climate                       International Consortium on Combating Wildlife
                                          change was in sight,1                        Crime (ICCWC), which comprises the WCO, the
                                         and the World Economic                        CITES Secretariat, INTERPOL, the UNODC and
                                        Forum repor ted in                             the World Bank. ICCWC partners also organized
                                       its Global Risk Report                          several other webinars on a wide range of topics.
                                     2020 that environmental
                                    issues dominated as the                            The component of the INAMA Project focusing on
                                   most pressing compared                              improving risk management practices in Malawi,
                                 to other categories of                                Nigeria and Vietnam, and funded by GIZ (German
                               short and long-term risks (i.e.                         Agency for International Cooperation), came to
                             economic, geopolitical, societal and                      an end in December 2020. An online wrap-up
                           technological risks).2                                      meeting was organized with representatives of
                                                                                       Nigeria and Vietnam to review their experience
                   This article presents the latest activities                         and the progress achieved, and to discuss future
               undertaken under the Environment Programme                              activities.
             and provides an overview of future directions. The
             aim is to encourage those Customs administrations                         The joint WCO-INTERPOL Operation THUNDER
             wishing to strengthen their enforcement                                   2020 saw 103 countries rally against wildlife
             capacities to engage with the WCO Environment                             crimes. The operation resulted in over 2,000
                                                                                       seizures of wildlife and forestry products, with

             1   Manzanaro, S. S. 2019. “COP25 in Madrid: UN Secretary-General Guterres Says Planet Is ‘Close to a Point of No Return.’” Euronews, 3 December
                 2019. https://www.euronews.com/2019/12/02/live-un-leaders-anddelegates-arrive-in-madrid-for-the-climatechange-summit.
             2   World Economic Forum. 2020, The Global Risks Report 2020, viewed 15 November 2020, http://www3.weforum.org/docs/WEF_Global_Risk_
                 Report_2020.pdf.
WCO news Recovery Renewal Resilience - n 94 | February 2021
WCO news n° 94 February 2021            9

a total of 699 offenders apprehended. Seized                                   Table 1 – Environment Programme Recent Activities
contraband included over 1.3 tonnes of ivory,                                    Event type                            Number of Countries                    Number of Officers
over 1 tonne of pangolin scales (the equivalent                                                                        represented                            participating
of approximately 1,700 pangolins), 56.2 tonnes
                                                                                 3 COPES Workshops                     10 (INAMA) + 5 (ICCWC)                 25 (INAMA) + 18 (ICCWC)
of marine products, 950 tonnes of timber (the
                                                                                 INAMA-GIZ component    2                                                     5
equivalent of 87 truckloads), 15.9 tonnes of plants,
                                                                                 online wrap-up meeting
and over 45,500 live animal and plant specimens.
                                                                                 ICCWC Webinars                        26                                     97
Illegal waste and substances controlled                                          Operation THUNDER                     103                                    116 National Contact
under the Montreal Protocol                                                      2020                                                                         Points
Operation DEMETER, which dates back to                                           Operation DEMETER VI                  73                                     104 National Contact
2009, is perhaps the most well-known face of the                                                                                                              Points
efforts deployed by the Customs community to
implement the provisions of the Basel Convention
on the Control of Transboundary Movements of
Hazardous Wastes and their Disposal, and the                                       against illicit wildlife trade. Funding has been
Montreal Protocol on Substances that Deplete                                       received to provide assistance to the Customs
the Ozone Layer, including the Kigali Amendment.                                   administrations of Cameroon, Namibia, Nigeria,
This amendment commits countries to phasing                                        Uganda, Indonesia, Lao PDR, Malaysia, Vietnam,
down the production and consumption of                                             Brazil, Colombia, Ecuador, Guyana and Peru;
hydrofluorocarbons (HFCs), which contribute to
global warming and climate change.                                              • support the Basel Convention’s Plastic Waste
                                                                                  Partnership5 which seeks to promote the
Operation DEMETER VI saw the participation of                                     environmentally sound management of plastic
73 enforcement agencies from 71 countries, joining                                waste by collecting and analysing information
forces with regional and international partners. This                             on transboundary movements of plastic waste,
concerted enforcement effort resulted in a total of                               among other things;
131 seizures, including more than 99,000 tonnes of
waste and approximately 42 tonnes of substances                                 • support the Environmental Network for
controlled by the Montreal Protocol.                                               Optimizing Regulatory
                                                                                   Compliance on Illegal Traffic
A number of articles have been published in                                        (ENFORCE)6 established by the    Our Donors
recent issues of the WCO News3 on illicit trade                                    Parties to the Basel Convention.
in waste, including one by the Secretariat of                                      The WCO Secretariat became       - The European
                                                                                                                      Commission’s Directorate
the Basel Convention explaining the latest                                         a full member of the Network in
                                                                                                                      General for International
developments in the international rules governing                                  2020.
                                                                                                                      Development and
the transboundary movement of wastes, as well as
                                                                                                                      Cooperation (DEVCO)
the available support and activities.4 The issue was                            Get involved                        - The UK Government’s
also discussed extensively at recent sessions of the                            Member administrations wishing        Department for
WCO Enforcement Committee.                                                      to receive support in the areas       Environment, Food & Rural
                                                                                mentioned above are invited           Affairs (DEFRA)
The future                                                                      to contac t the Environment         - The U.S. Department
Throughout 2021, the WCO Secretariat plans                                      Programme team. The team has          of State’s Bureau of
to expand its Environment Programme activities                                  adapted its working methods and       International Narcotics
thanks to new funding. Among other things, it will:                             can provide support and training on   and Law Enforcement
                                                                                a remote basis.                       Affairs
                                                                                                                    - GIZ (German Agency for
• continue assisting countries with building their
                                                                                                                      International Cooperation)
  enforcement capacities related to the fight                                   More information
                                                                                EnvironmentProg@wcoomd.org

3   See in particular the article by the WCO Secretariat on the need to collect more data in order to obtain a clear picture of illicit international waste
    flows https://mag.wcoomd.org/magazine/wco-news-88/illegal-waste-trafficking-more-data-is-key-to-getting-a-better-grip-on-this-trade
4   https://mag.wcoomd.org/magazine/wco-news-91-february-2020/focus-on-the-transboundary-movements-of-wastes
5   http://www.basel.int/Implementation/Plasticwaste/PlasticWastePartnership/tabid/8096/Default.aspx
6   http://www.basel.int/Implementation/TechnicalAssistance/Partnerships/ENFORCE/Overview/tabid/4526/Default.aspx
WCO news Recovery Renewal Resilience - n 94 | February 2021
10     Flash info

                                                                                                                                   © AdobeStock
     New documents added
     to the WCO E-Commerce
     Package
     The WCO Council adopted the final documents missing from the
     WCO E-Commerce Package at its December 2020 Session. The
     documents are three Annexes to the Framework of Standards

                                                                              Data Analytics
     on Cross-Border E-Commerce Technical Specifications entitled
     “Reference Datasets for Cross-Border E-Commerce”, “Revenue
     Collection Approaches”, and “E-Commerce Stakeholders: Roles and
     Responsibilities”.
                                                                              course available
     The document on “Reference Datasets for Cross-Border
     E-Commerce” provides examples of datasets which Customs                  on CLiKC!
     administrations are currently collecting, either as part of a pilot
     project or when implementing the Framework, to effectively track,
     target and identify small e-commerce shipments.                          An online data analytics training course on is now
                                                                              available in English and French via the WCO CLiKC!
     The “Revenue Collection Approaches” document describes and aims          Platform in the eLearning section. Developed
     to provide a better understanding of existing revenue collection         thanks to Korea Customs funding, the course is
     models.                                                                  for Customs officials who wish to become entry-
                                                                              level data analysts. It is structured to build a
     The document on “E-Commerce Stakeholders: Roles and                      comprehensive knowledge of a data science, to
     Responsibilities” provides a clear description of the roles and          acquire practical knowledge and skills on handling
     responsibilities of various e-commerce stakeholders to ensure            data and to learn Python programming and the
     transparent and predictable cross-border movement of goods. It           basics of machine learning models.
     does not place any additional obligations on stakeholders.
                                                                              More information
     The WCO Council also endorsed the E-Commerce Framework of                https://clikc.wcoomd.org
     Standards update/maintenance mechanism, and the first edition
     of the Compendium of Case Studies on E-Commerce which includes
     17 case studies offering practical examples of how Customs
     administrations address priority issues, such as exchange of advance
     electronic data, facilitation, safety, security and revenue collection
     (including de minimis levels).

     Finally, the Council took note of the capacity building activities
     conducted by the Secretariat and of the key performance indicators
     which had been released in Spring 2020 and which will enable
     Customs administrations to assess their own level of implementation
     of the Framework.

     More information
     http://www.wcoomd.org/en/topics/facilitation/instru-
     ment-and-tools/frameworks-of-standards/ecommerce.aspx
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12   DOSSIER

     DOSSIER:
     Recovery
     Renewal
     Resilience
WCO news n° 94 February 2021            13

© Angola Customs
                   A few words about the WCO
                   theme for 2021
                   By Kunio Mikuriya, WCO Secretary General

                   Each year, the WCO Secretariat chooses a theme that is relevant to the
                   international Customs community and its partners. The slogan chosen
                   for 2021 is “Customs bolstering Recovery, Renewal and Resilience for a
                   sustainable supply chain”. It invites Customs administrations to contribute to
                   finding a way out of the ongoing crisis generated by the COVID-19 pandemic
                   and to rebuilding the economy against the new backdrop of greater focus on
                   social distancing in daily life, working from home, digitization and the upsurge
                   in e-commerce. The collective efforts by the global Customs community to
                   address these challenges will renew the Customs system, make supply chains
                   more sustainable and help the global economy recover from the pandemic.

                   Recovery, Renewal and Resilience
                   Safeguarding smooth flows of legitimate trade by facilitating efficient
                   clearance processes will help support economic recovery from the current
                   crisis and ensure a fiscal basis with fair revenue collection. We know that
                   this cannot be done in isolation but rather requires the cooperation of all
                   border agencies, the private sector and other supply chain stakeholders.
                   Building on the lessons learned from our collaborative approach during
                   the crisis, we should look at the way goods are cleared at borders from a
                   fresh perspective, examine how we adapt workflows and procedures jointly
                   with our stakeholders, retain our capacity to be agile in the face of changing
                   business conditions and improve transparency about trade-related policy
                   actions and intentions.

                   In the face of new challenges and threats, and especially give the rise of
                   e-commerce, we need cutting-edge technological solutions and an innovative
                   approach to bring about renewal enabling Customs to adapt in the face of
                   changing demand - and to be future-proof. The COVID-19 pandemic has
                   shown the importance of major concepts which we have been promoting
                   for years, including all-digital and paperless clearance methods, the use of
                   technology to indicate which imports might merit a more detailed inspection,
                   and the implementation of automated, fast and effective controls.

                   People must, of course, remain at the heart of all strategies aimed at building
                   resilience. The most important asset of an organization is its workforce. To
                   achieve their missions, Customs administrations need a knowledgeable, well-
                   trained, well-led, properly supported and therefore resilient workforce. A
                   resilient workforce is one that is healthy (physically, mentally and emotionally),
                   has high morale, is adaptable, finds purpose and meaning in its duties, and is
                   both productive and engaged.
14       Dossier

                                                                                                                                       The top priority
                                                                                                                                       right now is to
                                                                                                                                       support the
                                                                                                                                       distribution of
                                                                                                                                       COVID-19 vaccines
                                                                                                                                       which has started
                                                                                                                                       being rolled out,
                                                                                                                                       with the process
                                                                                                                                       expected to last for
                                                                                                                                       many months to
                                                                                                                                       come.

     Ensuring swift and reliable distribution                                 As Customs is also called upon to verify the
     of COVID-19 vaccines across borders                                      safety of imported products and protect
     The top priority right now is to support the                             citizens from counterfeit medical products,
     distribution of COVID-19 vaccines which has                              the WCO Secretariat organized webinars with
     started being rolled out, with the process expected                      vaccine suppliers, during which the latter shared
     to last for many months to come. Customs                                 information about vaccine production and
     clearance of vaccines and related supplies and                           distribution processes, labelling and packaging
     equipment must be carried out pre-arrival and                            requirements, and how to authenticate genuine
     should follow the recommendations set out in the                         products.
     “Resolution on the Role of Customs in Facilitating
     the Cross-Border Movement of Situationally                               Last but not least, the Secretariat is organizing a
     Critical Medicines and Vaccines”, adopted in                             second edition of Operation STOP, targeting the
     December 2020 by the WCO Council.                                        illicit trade in goods which are generally used to
                                                                              diagnose or treat COVID-19. You can consult an
     More guidance is provided in the joint statement                         article on the first edition of the Operation, as well
     I recently issued with the Secretary General of                          as several articles on product quality, conformity
     the International Civil Aviation Organization                            controls and cooperation between Customs and
     (ICAO), Dr. Fang Li, and which outlines a number                         market surveillance agencies in the “Focus” section
     of measures to be implemented by governments                             of this magazine.
     with the objective of expediting air cargo transport
     and distribution of COVID-19 vaccines. The WCO                           Dossier contents
     Secretariat has also published Harmonized System                         Let me now turn to the actual contents of this
     (HS) classification references for vaccines and                          Dossier. It starts with an article by Moroccan
     related supplies and equipment.                                          Customs explaining the Administration’s
                                                                              modernization journey and how COVID-19
     Tools and guidance materials issued by the WCO                           allowed it to take full stock of the changes
     Secretariat, partner international organizations                         introduced.
     and industry associations along with WCO
     Members’ practices have been brought together                            This is followed by an article by the International
     on a page on our website.1                                               Chamber of Commerce (ICC) on the digitalization

     1   http://www.wcoomd.org/en/topics/facilitation/activities-and-programmes/natural-disaster/covid19-vaccines-distribution.aspx
WCO news n° 94 February 2021   15

of ATA Carnet procedures. It explains how the ICC      This is followed by an article introducing a
ATA Carnet digital system operates, provides a         methodology for using machine learning to identify
general overview of its design and architecture,       transactions involving strategic goods, though not
and gives a summary of progress made towards           declared as such. Given the data-dense nature
full implementation of the system.                     of international trade transactions, Customs
                                                       administrations are in an excellent position to
Digitalization is also the subject of an article       exploit advances in machine learning in order to
highlighting the need to review the current            improve risk analysis, enforcement and outreach.
processes for implementation of the World              I truly hope that this article will inspire Customs
Trade Organization ( W TO) Sanitar y and               management and analyst teams.
Phytosanitary Agreement and explaining how
adoption of information technology to enhance          The Inter-American Development Bank then gives
workflows would benefit both the import and            us an update on CADENA, a project launched to
export economies, as well as trading partners. It      enable the automatic exchange of information on
illustrates the fact that many digitization projects   Authorized Economic Operators (AEO) between
are an opportunity to review procedures in             Customs administrations having entered into a
place, enhance transparency and strengthen             Mutual Recognition Agreement (MRA). It will be
compliance.                                            of special interest to those considering the use of
                                                       blockchain, as the article draws some important
The fourth article addresses impact assessment         lessons from the CADENA experience.
and is written by representatives of academia,
the private sector and Customs. The authors            The last article sheds light on the capacity of
present Montenegro Customs’ pre-arrival                Customs administrations to adapt to the current
processing procedure for authorized express            constraints facing them. It explains how Malaysia
parcel operators and explain how they conducted        Customs has conducted a Factory Acceptance
an impact assessment using a stakeholder needs         Test (FAT) of its newly procured scanners and
analysis, from which key performance indicators        radiation portal monitors (RPM) using virtual
were derived.                                          communication tools.

A groundbreaking initiative by Singapore               I would like to bring my comments to a close by
Infocomm Media Development Authority and               sincerely thanking all the contributors to this
Singapore Customs is then presented in an              Dossier, along with all the other contributors to
article on TradeTrust, a set of governance and         the magazine. If we want to support governments
legal frameworks, document standards and a set         and citizens as they try to emerge from the
of software components, all of which facilitate the    current crisis and move towards a healthier, more
interoperability of electronic trade documents         resilient and sustainable economic model, we must
and their exchange between different digital           remain dynamic and strive for improvement. The
ecosystems.                                            varied initiatives and experiences featured in this
                                                       magazine bear witness to the commitment by the
                                                       Customs and trade community to do just that.
16     Dossier

     Dematerialization of Customs
     procedures: Feedback from Moroccan
     Customs
     By Moroccan Customs

                                                                                                                      © Moroccan Customs
     With its focus fixed on the capacity consistently
     to improve the service it provides to its users,
     Moroccan Customs has long been counting recourse
     to the new information and communications
     technologies among its strategic options. Today,
     the various projects undertaken to dematerialize
     its procedures have culminated in a fresh boost for
     trade facilitation. As of now, Customs clearance in
     Morocco is taking on a new dimension: simplicity
     of access and data use, speed, transparency,
     traceability and security of transactions,
     streamlining of control measures and reduction of
     archiving costs. Dematerialization has gone hand in
     hand with an alleviation of administrative formalities
     which, together, will allow operators to reduce the
     costs involved in processing Customs operations.

     Approach adopted by Moroccan                             Complete dematerialization of the
     Customs                                                  Customs clearance circuit
     Dematerialization within Moroccan Customs was            The launch of “paperless” Customs clearance was
     in its infancy back in 1978, when the Customs            preceded by the gradual rollout of legal, procedural
     accounting system became computerized.                   and technical prerequisites, which called for a
     However, the measure did not really take off until       commitment from all the Customs services. Some
     the introduction of the computerized Customs             of the key objectives of the digital transformation
     declaration. The full rollout of this feature became     strategy adopted include time and cost optimization,
     a reality in late 1991 when the Single Goods             the streamlining of control measures, faster and
     Declaration (SGD) would replace the dozens               simplified communication between stakeholders,
     of printed forms in use at the time. Business            improved working conditions and complete
     processes gradually became automated. Then,              transparency of clearance operations.
     1998 formed the backdrop to a key stage in the
     automated Customs system: the introduction of            In effect, the Customs clearance circuit of which
     automatic selectivity processes. For almost 30           the Customs declaration forms a part, regardless
     years, the computer system underpinning the              of the nature of the Customs regime concerned,
     Customs clearance circuit continued to evolve,           has been completely reengineered. Once signed
     ultimately embarking on a new era in 2019: the era       electronically, the declaration together with any
     of complete dematerialization. Economic operators        annexes required by the Customs authority are
     and government agencies overseeing international         submitted online and registered automatically
     trade played their part in this transition. Since 1      in the Automated Customs Network Database
     January 2019, most of the stakeholders in the            (BADR). The computer system sends registration
     foreign trade ecosystem have been involved               confirmation to the declarant. The control phase
     in the gradual and evolving process of digital           is subsequently initiated: the data from the
     transformation.                                          declaration is analysed and cross-checked, litigation
WCO news n° 94 February 2021   17

proceedings might be lodged, electronic payment                  those parties are well documented. Some of the
is made and removal of the goods takes place. This               services available online include consultation of
phase is also activated in the case of occasional                the declaration circuit, access to the cost estimate
declarations. Those operations conducted on an                   for the Customs duties arising, notification of the
occasional basis and formerly processed manually                 release issued and auditing of Customs procedures
will henceforth be registered on the Customs                     with economic impact.
information system.
                                                                 The online availability of these services has
Gone are the days of queueing in person at                       facilitated:
Customs counters. The agents responsible for
manual processing no longer need to look for and                 • reduced contact with customers: procedures
archive paper declaration records. Everything can                  governing declaration, control, payment and
be found on the system. Operational managers                       release all take place remotely, except in the event
can complete all their work activities from                        of physical verification;
their screens: documentary checks, valuation
control, payment of duties and taxes, litigation                 • the easing of non-Customs formalities: initiation
proceedings, etc.                                                  of non-Customs control measures is notified
                                                                   and their results shared electronically with the
Inspectors have two screens at their disposal for                  authorities responsible for auditing, either from
viewing all the information essential for inspection               system to system or by means of the Virtual
and payment purposes. They may call on the                         Single Window for Foreign Trade if the authority
services of central and regional teams to assist them              concerned is connected to it;
in Customs clearance operations, including in the
use of the hardware and software tools available                 • the availability of real-time information via the
to them.                                                           mechanisms for logging histories, alerts and
                                                                   electronic notifications;
A package of online services
As regards external users, a number of meetings                  • the transformation, on an organizational level,
were organized for the benefit of the forwarding                   of Customs clearance offices into remote
agents and economic operators. The benefits for                    monitoring offices;

Figure 1: Dematerialized Customs clearance circuit

                1. Removal of
               physical filing of
                 declaration
                                                                                            AUTOMATIC SELECTIVITY

   DECLARANT                                                                                  Physical   Admitted as
                                                                                                visit     compliant

                                              BADR
                                     Automated Customs Network
                                             Database                                             MULTI-CHANNEL
                                                                                                    PAYMENT
    PORTNET
                                        Data input               Signature
                                        Data registration        Filing

                                                                                                   ISSUANCE OF
                                Payment/                                       Accounting            RELEASE
                                 security                                      documents
  NON-CUSTOMS
                                                                                                           Computerization
  REGULATIONS
                                                                                                            of exit voucher

                                                                                                   REMOVAL OF
                                    BANK              COURT OF                GENERAL                GOODS
                                                      AUDITORS               TREASURY
18     Dossier

     • the objective of minimizing human intervention:          to facilitate better organization of work and a
       some tasks relating to data consistency                  reduction in the time needed for processing              Economic
       verification, tasks involving assistance with            operations; Customs officers have all the tools
                                                                                                                         operators will be
       entering declarations and checks relating to             they need for their work when they are equipped
       mandatory documentation or to the management             with a tablet;                                           able to monitor
       of Customs privileges and concessions are fully                                                                   their Customs
       automated;                                             • to establish a risk management approach
                                                                based on effective systems for the collection
                                                                                                                         activities and
     • the streamlining of control: the enforcement             and analysis of information; one current study           operations via a
       and inspection services have at their disposal, in       is focusing on the prospect of fine-tuning this          digital platform
       real time, all data and documentation relating to        approach by incorporating predictive analysis
       Customs clearance operations.                            and additional data;                                     known as
                                                                                                                         “Diw@nati”. It will
     PORTNET National Single Window                           • to make available to the customers/users a
                                                                                                                         provide access to
     Functioning as an electronic platform for integrating      digital channel for submitting their complaints
     the information systems of all foreign trade               and requests for information; this new method            operations history,
     operators at national and regional level (Customs,         of communication, which forms part of the                to the electronic
     port authorities, port operators, shipping agents,         governmental plan for a national claims portal,
     freight forwarding agents, importers/exporters,            facilitates increased traceability and monitoring
                                                                                                                         documents
     oversight bodies, banks, etc.), this Single Window         of customers’/users’ queries and the responses           associated with
     operates with a view to “going paperless” in foreign       provided;
                                                                                                                         those operations,
     trade operations.
                                                              • for economic operators (business leaders                 to various
     Software tools interconnected with the                     initially) to monitor their Customs activities and       online services,
     BADR Customs clearance system                              operations closely, on a daily basis and in real
     Software tools have been developed which,                  time, via a digital platform known as “Diw@nati”;
                                                                                                                         to Customs
     together with the clearance system, shape an               the platform will provide access to operations           notifications,
     ecosystem in which it is possible:                         history, to the electronic documents associated          and to a service
                                                                with those operations (SGD, release, clearance
     • to provide Customs officers with all the devices         certificate, authorization, receipt, etc.), to various   for messaging a
       needed for mobile working, that is to say, for           online services (settlement of Customs debts,            Customs adviser.
       completing tasks outside the office, in order            application for a particular authorization, filing

     Figure 2: “PORTNET” Single Window

                                 Filing of SGD and
                                annexes scanned in
      DECLARANT                  electronic format
                                                             National Single
                                                               Window for
                                                              Foreign Trade                          Ministry of
                                                               Procedures                           Foreign Trade

                          Port                                                                               Foreign
                        authority                                                                           exchange
                                                                                                             offices

                                                               PORTNET

                            Local site
                            managers                                                                Banks

                                                                                    Technical
                                                                                    monitoring
                                                                                     services
WCO news n° 94 February 2021   19

  of a complaint), to Customs notifications, and to a    Figure 3: Multi-channel payment
  service for messaging a Customs adviser;

• to make available to the general public an
  application known as “Bayyan Liy@”, which
                                                                               E-BANKING
  gives consumers the opportunity to ascertain
  for themselves that certain products put up for
                                                             BANK                                    LOCAL
  sale are genuine by verifying a number of details                                                 SERVICES
  (for instance, the trade name, producer/importer,
  or the date of production/import); one particular
  bonus of this application is its effectiveness in
  combating smuggling and counterfeiting.

Multi-channel payment solutions                                 ATM                            M-BANKING
Customers/users can settle their outstanding
Customs debts by various simple, swift and
secure payment methods. In addition to the online
method of payment by bank card, other methods            Electronic signature
are proposed, including payment by online banking        An electronic signature solution, certification for
(e-banking), by mobile phone (m-banking), by             which is provided by the company Barid Al Maghrib,
automated teller machine or even through bank            ascribes to documents bearing an electronic
branches and money transfer agencies (local              signature on the online BADR clearance system
service points).                                         the same legal value as the equivalent physical
                                                         documents signed by hand.
Irrespective of the payment method chosen, the
process remains the same:                                Using this solution makes it possible to guarantee:

• the operator selects the outstanding amounts           • the identity of the signatory (identification/
  that it wishes to pay and creates a shopping cart        authentication of the signatory);
  to that end;                                           • the non-repudiation of the signed document by
• a payment code is automatically allocated to the         the signatory (by this mechanism, challenges
  relevant shopping basket;                                regarding the effectiveness of dispatch of digitally
• the code is used by the operator to proceed to           signed documents can be avoided);
  payment;                                               • the integrity of the signed document (impossible
• as soon as the payment transaction has been              to alter it).
  confirmed, notification of the release is issued;
• on receipt of the debit notice from the bank           Cessation of manual processing in
  account, the transaction is recorded;                  respect of temporary admission and
• a receipt, generated automatically by the system,      export declarations for hauliers’
  is sent via e mail to the payer’s messaging address.   vehicles
                                                         Since 1 October 2019, an electronic procedure has
Dematerialization of bank security                       replaced the paper-based system used for a long
documentation                                            time by hauliers to obtain simplified temporary
The automated management of payments, rolled             admission and export declarations for their
out since October 2017, translates into a time           commercial use vehicles (known as “D17”s and
saving for economic operators relying on bank            “D20”s). The paper versions of these declarations,
security documents. At their request, banks input        previously supplied exclusively by the Association
the bank security directly into the BADR system          Marocaine du Transport Routier International
without the need to issue the operators with a           (Moroccan Association of International Road
document which would then be handed to the               Transport), are therefore no longer in use.
Customs services.
20     Dossier

     Figure 4: Computerization of temporary admission and export declarations for TIR vehicles (triptychs)

                                                            D 20
          MOROCCO                                                                                     OVERSEAS
                                                            D 17

                           Efficient time    Selectivity              Tackling        Automatic
                           management                                 informal        clearance
                                                                   arrangements

     Those simplified declarations can be used only by             has resulted in better oversight as well as simpler
     those International Road Transport (TIR) operators            formalities for travellers, whether they are
     that are established in Morocco in relation to their          Moroccan nationals residing overseas or foreign
     operations involving:                                         tourists.

     • temporary export of their commercial use                    Computerized management of
       vehicles registered in Morocco;                             litigation proceedings
     • temporary admission of commercial use vehicles              The process of litigation management, from the
       registered overseas and belonging to foreign                initial lodging of proceedings to their definitive
       transport operators, on the basis of a partnership          resolution (drafting of reports, settlements,
       contract.                                                   judicial proceedings, recovery proceedings and
                                                                   administrative proceedings), has also undergone
     They are still required to submit the relevant                computerization.
     application (suppor ted by an unsecured
     commitment) and obtain Customs approval.                      New data-related requirements
                                                                   As part of the drive to establish a global control
     The approved TIR operator is required to enter                mechanism aimed at anticipating the Customs
     into and electronically sign these declarations for           clearance of goods and thereby expediting their
     every operation involving temporary admission or              exit from Customs premises, hauliers have been
     export of commercial use vehicles. Their decision             required, since 1 October 2019, to give specific
     to participate in this arrangement is expedited               details in their summary declarations, including the
     by the advantages presented by the process’                   four-digit tariff heading for the goods concerned.
     dematerialization in terms of cost, time and
     operational traceability.                                     Moreover, Customs now has access to export
                                                                   declarations for goods from the countries
     Similarly, the computerization of the “D17” and               signatories to the Agadir Agreement (namely, Egypt,
     “D20” declaration documents presents its share                Jordan, Tunisia and Morocco). It can, as a result,
     of advantages for the Customs services inasmuch               enhance its management of risk by comparing the
     as it has made it easy for them to identify those             data on the import and export declarations.
     road hauliers operating internationally, to have
     oversight of their fleet of vehicles and drivers as           Dematerialization of certificates of
     well as of their movements, to ramp up checks                 origin
     through risk analysis, and ultimately to ensure               In Morocco, certificates of origin are issued by
     greater compliance with the regulatory deadlines              the Customs Administration. Exporters simply
     granted by Customs and better management of the               apply for a certificate when drawing up the export
     discharging of declarations.                                  declaration. The computer system then collects
                                                                   the data already entered on the declaration
     Vehicles registered overseas                                  and requests that the exporter input only the
     Management of temporary admissions of                         outstanding information needed for it to process
     vehicles registered overseas has been completely              the application. This process reduces the risk of
     overhauled. Its integration into the BADR system              error.
WCO news n° 94 February 2021   21

The electronic certificate created in this way is      Customs clearance of goods that is appropriate for
registered on the Internet portal of Moroccan          all logistics arrangements. The essential focus is to
Customs. Any administration seeking to verify the      proceed with dematerialization and simplification
authenticity of a certificate issued by Morocco        of Customs procedures, thereby nurturing the
therefore has only to consult the Customs website.     emergence of multimodal transport solutions, that
                                                       is to say, combining transport by land, sea and air.
This procedure was phased in and completed in
January 2021 against a backdrop of important           Conclusion
discussions and intense negotiations between           In 2019, the key performance indicators highlighted
the teams at Moroccan Customs and their                a significant improvement in the performance
counterparts in the other countries parties to         of services. The revenues collected have, in
bilateral or multilateral agreements. The objective    particular, risen by 2.88% in comparison with 2018.
has been to bring those partner countries on           The current objective is to take advantage of the
board this project and to remove any obstacle          transformation to improve performance indicators
to its successful conclusion (whether technical,       in the areas of facilitation and control.
procedural or agreement-related). At the same
time, major IT-development work has commenced.         It can already be stated that litigation management
One application has been developed to facilitate       capacity has broadly improved. One of the reasons
the remote authentication of certificates of origin,   for the increased pace of proceedings is the fact
providing assurances to the operator that those        that all stages of litigation proceedings are now
certificates would not be rejected for reasons still   registered on the Customs information system.
connected with such authentication.
                                                       The radical overhaul of the system by Moroccan
Electronic commerce and blockchain                     Customs in terms of its dematerialization has also
technology                                             profoundly altered the relationship between the
In 2020, Moroccan Customs launched a                   Customs officer and the economic operator or its
cooperation project with DHL and the German            representative. That relationship, which used to
International Cooperation Agency (GIZ Morocco)         be a physical one, has, to all intents and purposes,
with a view to developing a platform relying on        become a virtual one. These new management
blockchain technology for collecting the data of       methods have unburdened operators of any
each party to an international transaction (traders,   costly and needless trips, but have also provided
express mail service, Customs, other stakeholders)     the means for Customs officers to work in a
and sharing it. Rooted in this ecosystem, procedures   better environment. This does not mean that the
will be open to simplification and risk management     communication channels have been muted. On the
will be enhanced, in particular as regards Customs     contrary, they are stronger and more effective.
valuation.
                                                       COVID-19 has acted as a catalyst, increasing the
Becoming an indispensable logistics                    pace of change of stakeholders’ procedures and
hub for the region                                     conduct in the international trade system. It has
By means of the projects for dematerializing the       also allowed us to take full stock of the changes
foreign trade procedures, Morocco is setting its       introduced. In the midst of a health crisis, Morocco
sights on becoming an indispensable logistics          has encountered no problems in continuing to
hub for the region, especially as regards the          source supplies of essential products and basic
North-South flows of goods. In that connection,        necessities (such as food products, healthcare
a number of partnership agreements promoting           products, medicines and hydrocarbons); and the
the Kingdom’s maritime, air and land transport         effective transition from a management of flows
have been concluded between the main public and        to a teleworking arrangement, facilitated by an
private stakeholders concerned.                        efficient computing ecosystem, has had a significant
                                                       and positive impact on the situation.
As a key player in these projects, Moroccan
Customs, in conjunction with professionals in the      More information
relevant sectors, has introduced a procedure for the   a.zdaik@douane.gov.ma
22       Dossier

                                                                                                                                                         © AdobeStock
     Digitization of ATA Carnets: overview
     of the ICC pilot project
     By Cyrille Bernard, Information System Architect, and Yuan Chai, ATA Carnet Manager,
     International Chamber of Commerce

     The ATA1 Carnet is an international Customs                                (IAs) in each country to process Carnet applications.
     document that permits duty-free and tax-free                               Processing fees apply as well as a surety bond
     temporary admission of most goods for up to one                            which will be returned if the Carnet has been used
     year. It enables countries, businesses and border                          correctly. The International Chamber of Commerce
     agencies to expedite the Customs process by                                (ICC), the institutional representative of over 45
     utilizing unified, ready-to-use declaration forms and                      million companies worldwide, is responsible for
     eliminating the lodging of a guarantee, bond or cash                       administering the global guarantee chain affiliated
     deposit in the country of temporary importation.                           with all NGAs.
     At the end of 2020, the ATA Carnet procedure has
     been implemented in 78 countries and Customs                               Going digital
     territories. In each one of them, the Customs                              The ATA Carnet is still today a paper-based
     authority appoints a National Guaranteeing                                 document, although its digitization (turning the
     Association (NGA) which guarantees payment                                 physical paper into an electronic file) and the
     of import duties and taxes in cooperation with                             digitalization of the Carnet-based temporary
     foreign NGAs around the world. Under the NGA’s                             admission process has been discussed for some
     umbrella, there can be multiple issuing associations                       years now. The fact is that, given the complicated

     1   ATA is an acronym of the French and English terms “Admission Temporaire/Temporary Admission”. The ATA Carnet is established under the Customs
         Convention on the ATA Carnet for the temporary admission of goods (ATA Convention) and the Convention on Temporary Admission (Istanbul
         Convention)
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