Customs Modernization Handbook

Two new books edited by the World Bank are related to Customs reform and modernization.   The first is a 13 chapter book  discussing issues related to the design an implementation of Customs modernization projects (Customs Modernization Handbook), while the second gives an overview of eight Customs modernization case studies : Customs Modernization Initiatives (CMI).

 

• Trade liberalization has made substantial progress in recent year, but the expected benefits will be greater if accompanied by initiatives that reduce trade costs. Efficient and effective Customs operations will contribute to reduce these costs.

• Member countries are asking WB support for their trade facilitation programs and we should beef up our expertise to provide such support.

• The international community is negotiating a trade facilitation agenda in the context of the WTO Doha Round Negotiations that started in  November 2004; the Bank was asked to support this process.

• No comprehensive literature on Customs Modernization was available and this publication thus fills the gap.

 

The study is aimed at (i) policy makers: inform them of the importance of Customs operations in enhancing a country's competitiveness, of the breadth of the issues related to better Customs operations, and of  the need for political support to bring modernization about; (ii) Practitioners:   provide guidance on how to implement the reforms as well as numerous practical examples of successful reforms; (iii) Private Sector: inform them how Customs reforms will benefit them and deserve support ; (iv) Students and academics: the CMH provides a comprehensive overview on a subject rarely treated in a comprehensive manner and provides new insights in several technical issues such as valuation and rules of origin.

 

Outline of the Study

 

The study consists of three sections:

 

• Cross cutting Issues in Customs Modernization that presents issues of Customs strategy, human resource management and organizational issues, the legal framework, policies to combat corruption and the use of risk management

• Lessons of experience; Conveys lessons learned  in Customs modernization and is based on the findings of the CMI and from the Bank's experience in lending for Customs modernization. This section illustrates the lessons with many practical and country specific examples.

• Selected  Operational issues in Customs Administration; Covers  issues such as Customs valuation, rules of origin, duty relief and exemptions, transit, security and the use of information and communications technology.

 

Main lessons

 

• Customs administrations are here to stay.  Even when tariffs are lowered or disappear, Customs will collect consumption taxes, protect the country from the importation of illicit goods (drugs and weapons) and cooperate with other agencies to enhance border security.  The benefits from strengthening Customs is worth the cost.

• Customs operations are an interlocking set of processes. Partial Customs reforms can be expected to be successful only if they are undertaken with an overall picture of Customs operations in mind.  Undertaken in isolation, these partial projects are likely to deliver less than promised.

• Customs is only one part of the logistics chain and its improvements will yield the best results if matched by improved performance of  the other trade related agencies and structures such as transport services and standards inspections.

• Information and communication technology (ICT) can contribute in a major way  to make Customs operation more efficient and effective.  All too often this is lost sight of and ICT dominates the reform design at the expense of promoting greater  efficiency.

 

Dissemination and promotion of the CMH

 

• The CMH was  presented  to the  Heads of Customs at  the June 2004 Council meeting of the World Customs Organization.

• The Official launch of the CMH took place in early February 2005 in Geneva and Brussels; an e-book edition is now available, and translations into other than English languages is being explored with foreign language publishing houses.

• The CMH will inform the WTO Trade Facilitation negotiators and illustrates what the Customs reforms discussed entail, how these can be undertaken, what will make them successful and will help in estimating the cost of implementing the reforms.

• The CMH will be disseminated through workshops and seminars organized for Bank staff and for interested parties outside the Bank.

• For Bank task managers, a "Project Guidelines" and "Resource Manual" is under preparation to assist task managers in their project preparation work.

Customs Modernization Handbook   Purchase / Download.

Customs Modernization Initiatives    Purchase / Download.