1Preface
1006.5 Putting the Theory into Practice
2Chapter 1. Introduction to Customs Service - An Overview
1016.6 Compliance Assessment and Trade Facilitation
31.1 Improving Customs Processes Is Part of the Trade Facilitation Agenda
1026.7 Exercise
41.2 Good Diagnostics Are the Key Starting Point
103Chapter 7. Customs Valuation in Developing Countries and The World Trade Organization Valuation Rules
51.3 Human Resources Policies Need to Be at the Center of Customs Reforms
1047.1 Significance and Historical Overview of Customs Valuation
61.4 An Adequate Legal Framework Is Important
1057.1.1 International Valuation Standards
71.5 Improved Integrity Is Key to Promoting Investment and Growth
1067.1.2 The Uruguay Round and the Decision on Shifting the Burden of Proof
81.6 Risk Management Underpins Much of Modern Customs Practices
1077.1.3 State of Implementation
91.7 Rules of Origin Should Be Simplified
1087.2 The Agreement on Customs Valuation: An Introduction
101.8 Good Duty Relief and Exemption Control Systems Are Important
1097.2.1 Special Provisions for Developing Countries
111.9 Customs Procedures Should Facilitate Transit
1107.2.2 Implementation Requirements
121.10 Security Has Become an Integral Customs Objective
1117.2.3 Organizational Structure and Training
131.11 Information and Communications Technology Promotes Customs Modernization
1127.3 ACV Implementation in Developing Countries
141.12 Exercise
1137.3.1 Lack of Ownership
15Chapter 2. Strategy For Customs Modernization
1147.3.2 Revenue Loss
162.1 Objectives of Customs Operations
1157.3.3 Less Compliant Trading Environment
172.1.1 Evolution of Customs Role
1167.3.4 Administrative Limitations
182.1.2 Customs Role and Priorities in the 21st Century
1177.3.5 Doha Ministerial Conference
192.2 Contextual Factors Necessary for a Successful Customs Reform
1187.4 Toward Better Customs Valuation Practices
202.2.1 Global Environment
1197.4.1 Addressing Ownership Questions
212.2.2 Political Support
1207.4.2 Reforming the Tariff and Trade Regime
222.2.3 Adequate Diagnostic Work
1217.4.3 Modernizing Customs Administration
232.2.4 Desire to Reduce Trading Costs
1227.4.4 Establishing a Value Database
242.3 Development of a Customs Modernization Strategy
1237.4.5 Exchanging Information with Exporting Countries’ Customs Administrations
252.3.1 Modernization Program: Comprehensive or Partial?
1247.4.6 Minimum Values and Reference Prices
262.3.2 Proper Sequencing and Pacing of Reforms
1257.4.7 Technical Assistance
272.3.3 The Role of Strategic Partners
1267.5 Pre-shipment Inspection Companies and Other Related Services Programs
282.3.4 External Advice
1271.1.1 Case Study (7.1)
292.3.5 Financing Plan
1287.5.1 Traditional PSI Programs
302.3.6 Collaboration with Other Government Agencies
1297.5.2 Evaluation of Effectiveness of Traditional PSI Services
312.4 Implementation of a Customs Modernization Strategy
1307.5.3 New Trends in the Provision of Customs Valuation Services
322.4.1 Leadership
1317.5.4 International Value Databases
332.4.2 Flexible Implementation
1327.6 Exercise
342.4.3 Involvement of Stakeholders
133Chapter 8. Rules of Origin, Trade, and Customs
352.5 Exercise
1348.1 Defining Origin
36Chapter 3. Human Resources and Organizational Issues in Customs
1358.2 Methods for Determining Substantial Transformation
373.1 Human Resources: An Organization Is Only as Good as Its Staff
1368.2.1 Change of Tariff Classification
383.1.1 Staff Profile
1378.2.2 Value-Added
393.1.2 Recruitment
1388.2.3 Specific Manufacturing Process
403.1.3 Training
1398.3 Status of the Harmonization Work Program for Non-preferential Rules of Origin
413.1.4 Staff Compensation
1408.3.1 The Uruguay Round and the Agreement on Rules of Origin
423.1.5 Integrity and Sanctions
1418.3.2 The Harmonization Work Program and the Draft Harmonized Non-preferential Rules of Origin
433.2 Customs Organization and Organizational Placement
1428.3.3 Implementing the HRO: Implications
443.2.1 Internal Organization
1438.3.4 The Harmonization of Non preferential Rules of Origin: Conclusions
453.2.2 Customs’ Position in the Overall Government Structure
1448.4 The Definition of Preferential Rules of Origin
463.2.3 Revenue Agencies
1458.4.1 Methods for Determining Sufficient Processing
473.3 Autonomous Revenue Authorities
1468.4.2 Additional Features of Preferential Rules of Origin
483.3.1 Management Structure and Responsibilities
1478.5 The Economic Implications of Rules of Origin
493.3.2 Financial Autonomy
1488.6 Rules of Origin and the Utilization of Trade Preferences
503.3.3 Human Resources
1498.7 Rules of Origin and Economic Development
513.3.4 Compensation
1508.8 Customs and the Costs of Administering Preferential Rules of Origin
523.4 Management Contracts
1518.8.1 Checking the Authenticity and Validity of Certificates of Origin
533.5 Operational Conclusions
1528.8.2 Labor Requirements to Deal with Preferential Rules of Origin
543.6 Exercise
1538.8.3 Overlapping Rules of Origin from Multiple FTAs
55Chapter 4. Legal Framework For Customs Operations and Enforcement Issues
1548.8.4 Implementation Difficulties of the Value-Added Criterion
564.1 Case Study
1558.9 The Doha Round and Rules of Origin
574.2 The Need for Modern Customs Legislation
1568.10 Key Operational Conclusions
584.3 The Revised Kyoto Convention
1578.11 Exercise
594.3.1 Elements of the Revised Kyoto Convention
158Chapter 9. Duty Relief and Exemption Control
604.3.2 Overview of the Convention
1599.1 Duty Relief for Inward Processing
614.4 Preparing a Modern Customs Code
1609.1.1 Economic Rationale
624.4.1 Obligations under the Revised Kyoto Convention
1619.1.2 Prior Exemption versus Drawback
634.4.2 Practical Guide to the Modernization of Customs Codes
1629.1.3 Administration: From Physical Control to Audits
644.5 Case study (4.2)
1639.1.4 Temporary Admission for Inward Processing
654.6 Potential Obstacles to Customs Modernization
1649.1.5 Drawback
664.6.1 Legal Tradition
1659.1.6 Export Processing Zones
674.6.2 Drafting Styles
1669.1.7 Conclusions and Guidelines for Duty Relief for Inward Processing
684.6.3 Organization
1679.2 Warehousing, Temporary Admission, and Transit
694.6.4 Determination of Which Principles to Implement and How to Implement Them
1689.2.1 Customs Warehousing
704.6.5 Interaction with Other Government Entities
1699.2.2 Temporary Admission
714.6.6 Translation
1709.2.3 Transit
724.7 Enforcement of Customs Laws
1719.3 Exemptions
734.8 Model Legislation for International Property Rights
1729.3.1 Issues
744.9 Case Study (4.4)
1739.3.2 Economic Rationale
754.10 Operational Conclusions
1749.3.3 Economic or Administrative Issues by Category
764.11 Exercise
1759.3.4 Rationalizing the Exemption System
77Chapter 5. Integrity in Customs
1769.3.5 Establishing Effective Administrative Systems and Procedures
785.1 Consequences of Corruption in Customs
1779.4 Exercise
795.2 Types of Corruption in Customs
178Chapter 10. The Role of Customs in Cargo Security
805.2.1 Definition of Corruption
17910.1 Initiatives to Improve Cargo Security
815.2.2 An Analytical Framework for Understanding Corruption
18010.1.1 World Customs Organization
825.3 The International Customs Response
18110.1.2 Air Cargo: Organizations and Initiatives
835.3.1 Leadership and Commitment
18210.1.3 Land Border Security
845.3.2 Regulatory Framework
18310.2 Management Implications for Customs
855.3.3 Transparency
18410.2.1 Organizational Structure
865.3.4 Automation
18510.2.2 Legislative Framework
875.3.5 Reform and Modernization
18610.2.3 Access to Information
885.3.6 Audit and Investigation
18710.2.4 Risk Management, Redeployment of Resources, and New Procedures
895.3.7 Code of Conduct
18810.2.5 Cooperation with other than National Customs Partners
905.3.8 Human Resources Management
18910.3 Technical Means to Assist Security Checks
915.3.9 Morale and Organizational Culture
19010.3.1 Manual and Low-Technology Approaches
925.3.10 Implementation of the Strategy
19110.3.2 Intrusion-Detection Technology
935.4 Operational Conclusions
19210.3.3 Modern Technology in the Service of Security
945.5 Exercise
19310.3.4 Container Scanning Equipment
95Chapter 6. Risk Management in Customs
19410.4 Operational Conclusions
966.1 The Importance of Managing Risk
19510.5 Exercise
976.2 Facilitation and Control
196Appendix
986.3 Achieving a Balanced Approach
197Glossary
996.4 Managing Compliance
198Index
