New vision encapsulates the changing role of Customs

SEVERAL YEARS of discussion have culminated in the finalisation by the World Customs Organisation of a vision for Customs administrations in the 21st century. “Agreement was reached last week and the proposal will be presented at the council meeting of the WCO in Brussels later this month,” Customs Commissioner Pravin Gordhan told delegates at last week’s S aaff congress in Johannesburg. “If adopted it will begin to inform the way customs organisations around the world will attempt to operate over the next 20 years,” he said. “The business model has changed formidably in the 21st century,” said Gordhan, and it’s these changes that have shaped the new vision. “Some 50% of world trade today is trade between connected parties, which raises interesting prospects about how we deal with those connected parties.” Another important issue that has emerged is the expanding role of Customs. “We need to better understand not only what happens at the borders but what happens in the supply chain. Customs mindsets have therefore been evolving in two directions – where have the goods been packed and where are they coming from and also where are they going,” said Gordhan. “We recognise that if we want to facilitate and secure the supply chain it’s crucial that we understand it. “This understanding of the supply chain led the US, soon after 2001, to introduce its container security initiative. Within the US Congress there have been calls for a move to 100% scanning, although more recently there has been greater recognition that this would not be viable. “If the US decided on 100% scanning it would have a formidable impact on trade all over the world.” Similar initiatives are being explored by Canada, according to Gordhan. And while physical security is a key concern, there’s also the issue of revenue security, particularly in Africa. According to Gordhan, developing countries derive more than 50% of their revenue from customs duties. “More than 80% of countries in Africa get more than 50% of their revenues from customs duties apart from what they get in development aid,” said Gordhan, “which means the dependence on customs duties is huge. “While we have liberalisation of trade on the one hand and tariffs are supposed to be dropping and customs revenues declining, on the other hand there is this dependence. For developing countries, therefore, it’s not only about physical security but also about revenue security and the Customs community must make sure that developing countries are not deprived on this score.”