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					The Revised Kyoto
   Convention


       Allen Bruford
      Deputy Director
     WCO PRINCIPLES FOR
      MODERN CUSTOMS
        PROCEDURES
 SELECTIVITY
 AUDIT BASED CONTROLS
 AUTHORIZED TRADERS
 SIMPLIFIED PROCEDURES
 COMPLIANCE MEASUREMENT
 CUSTOMS TRADE CO-OPERATION




                          WORLD CUSTOMS ORGANIZATION
         WCO RESPONSE TO
           PRINCIPLES
The main trade facilitation instrument is the

Revised Kyoto Convention which contains these

principles and is considered the

blueprint for modern Customs processes
                  BACKGROUND
Most Annexes to the 1973 Convention contained
Provisions on
   Location of Customs offices
   Goods declaration form and contents
   Obligations and rights of a declarant
   Examination of goods
   Customs control
   Assessment, collection and payment of duties and taxes
   Repayment of duties and taxes
   Goods lost, destroyed or abandoned
   Information to be supplied by Customs
                  BACKGROUND
The revision process recognized that

   There were core provisions for the application of a Customs
    procedure

   Core provisions were not uniformly incorporated in all the
    procedural Annexes of the current Convention

   Core provisions are applicable equally to all procedures

   Should be made obligatory for accession
                  BACKGROUND
The revision process also recognized the importance
of including the following principles as core
provisions
   Customs supplying information on Customs procedures
    and practices to the clients

   Relationship of Customs with third parties

   Clear and transparent appeal procedure

   A partnership approach with the trade
                        DECISION

   Compile all core provisions and principles of general
    application in the Annexes of the 1973 Kyoto Convention

   Include these in a single Annex

   Group similar core procedures and practices of general
    application into separate Chapters e.g. clearance formalities,
    security, appeals

   Incorporate new concepts where necessary
                        DECISION

   Core provisions - provide the key to harmonize and simplify
    Customs procedures across administration

   Core provisions - placed in a single Annex that should be
    obligatory for accession

   The provisions in an obligatory Annex should be totally
    binding, i.e. no reservations should be possible against
    their implementation
                         RESULT
   A change in the structure of the 1973 Convention

   Creation of a General Annex which is
    - obligatory for accession
    - allows no reservations against provisions
      in the Annex

   Creation of Specific Annexes
     – Describes specific Customs procedures (e.g.
       warehousing, transit etc)
     – Contains Standards and Recommended Practices
     – No reservations against Standards
     – NOT obligatory for accession
     THE REVISED CONVENTION
                 STRUCTURE
                                               for CPs

            Body of the Convention

                General Annex

Chapter 1    Chapter 2   Chapter 3   Chapters 4 - 10


Specific     Specific    Specific      Specific
Annex A      Annex B     Annex C     Annexes D - K

Chapters      Chapters    Chapter      Chapters
          Revised Kyoto Convention
                (adopted by WCO, June 1999)
 Revision of the original Convention (1973) to provide
    for updates to keep abreast of developments in
    information technology and in Customs techniques (ex.
    Risk management)

   Highly competitive business environment
   Blueprint of modern Customs procedures for
    Governments to
        implement effective controls
                      &
        facilitate legitimate trade

       Entered into force February 2006
            Structure and Content
         (Revised Kyoto Convention)

   Legal provisions covering core Customs functions
    (import, export, transit and other procedures)

   Detailed implementation guidelines for all legal provisions

   Methods of application and best practices

   Constantly updated
             SPECIFIC ANNEXES

   10 Specific Annexes

   Cover different types of Customs procedures

   Described in 25 Chapters

   All provisions of General Annex are applicable
        Key Principles of RKC (I)
   Transparency and predictability
    -Rules for providing information
    -Clear and transparent appeal procedures
     (Customs, independent authority, courts)

   Standardization and simplification of goods
    declaration and supporting documents
    - Minimum data requirements
    - Submission by electronic means
    - Customs Data Model (supporting initiative)
              Key Principles of RKC (II)
   “Fast track” procedures for authorized persons with good
    compliance records
      - Release of goods with minimum information to identify
    goods (with later declaration)
   Maximum use of information technology
       - Use of international standards
       - Consultation of all relevant parties when introducing
    computer applications
    - electronic commerce methods as an alternative to paper-
    based requirements
              Key Principles of RKC (III)

 Minimum necessary control to ensure compliance
   Risk management
    - Identify high risk consignments based on risk analysis
    (intelligence)
    - Shift from all documentary, physical check to targeted
    check
    - Facilitation of legitimate trade while maintaining effective
    control
    - Effective and efficient deployment of Customs resources
           Key Principles of RKC (IV)

   Audit based controls
     - Post clearance audit

   Coordinated intervention
      - Inspection with other border agencies
      - “Single window” concept

   Partnership with the trade
     - Formal consultative relationships
     - Information dissemination
     -Memoranda of Understanding (MOU)
          Key Principles of RKC (V)

             Pre-arrival Processing
 Priorlodgement and registration of the Goods
  declaration and supporting documents

 Prior   lodgement of cargo declaration

 Pre-arrivalinformation drives risk management and
  allows for speedy release
        MANAGEMENT COMMITTEE
TO ADMINISTER THE REVISED CONVENTION
 UPDATE THE GENERAL AND SPECIFIC ANNEXES WITH
PROVISIONS THAT REFLECT MODERN PRACTICES
UPGRADE RECOMMENDED PRACTICES TO STANDARDS
 REVIEW THE RESERVATIONS ENTERED BY
CONTRACTING PARTIES
 UPDATE THE GUIDELINES TO INCLUDE FORWARD-
LOOKING IDEAS
      Benefits of the Revised Kyoto
 National economy

   Trade community


   Customs administrations
     Benefits to the National
            Economy

 Reduced transaction costs and avoidance of
  delays in the release and clearance process
 Increased economic competitiveness
 Attract foreign direct investment and promote
  the development of industry
 Increase the participation of small and medium-
  sized enterprises
 Lower costs to consumers
 Increase national revenue
Benefits to the Trade Community
    Faster, predictable and efficient Customs clearance
   Transparent procedures and transparent appeals
   procedure
  Greater facilitation for compliant traders
  Lower business costs
  Enhanced competitiveness
  Use of information technology
           Benefits to Customs
             administrations
 Enhanced Customs control
  Increased trade facilitation
 More effective and efficient deployment of Customs
  resources
 Reduced integrity problem
 Supply chain security and facilitation
       WCO Instruments and WTO Trade Facilitation
                      Principles
             GATT 1994                               WCO (Kyoto)
   Article V- Transit                     Effective rules for transit
                                            procedures

   Article VIII – Fees & Formalities      Fees limited to the cost of
                                            services rendered
                                           Simplified procedures and limited
                                            data requirement
   Article X – Publication of trade
    regulations                            Publication of Customs laws and
                                            procedures


    High Principles                                     Tool to implement
                                                        WTO Principles
                            Complementary
                                                        WORLD CUSTOMS ORGANIZATION
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