Customs Enforcement and Compliance is one of the basic functions of all Customs Administrations throughout world. It is a broader term encompassing the role and responsibilities of Customs. As per World Customs Organisation "Customs enforcement" is concerned with the protection of society and fighting trans-national organised crime based on the principles of risk management.
In discharging this mandate, Customs enforcement functions covers a wide range of activities relating to information and intelligence exchange, combating commercial fraud, counterfeiting, the smuggling of goods, drug trafficking, money laundering, electronic crime, restriction on toxic waste and weapons of mass destruction. Enforcement activities also aim to protect intellectual and cultural property and endangered species of plants and animals. These areas determine a wide role of Customs in society.
Concept and Best Practices of Customs Enforcement in the World
In today's world Customs Administrations are facing a challenge of facilitation without compromising on enforcement. The World Customs Organisation in order to assist its Members to improve the effectiveness of their enforcement efforts and to achieve a balance between control and facilitation, the WCO has developed a comprehensive technical assistance and training programme. In addition, it has established Regional Intelligence Liaison Offices (RILOs) that are supported by a global database, the Customs Enforcement Network (CEN), to facilitate the exchange and use of information. The WCO has also developed instruments for international co-operation in the form of the revised Model Bilateral Agreement (MBA), the Nairobi Convention which provides for mutual administrative assistance in the prevention, investigation and repression of Customs offences, and the Johannesburg Convention which provides for mutual administrative assistance in Customs matters. The WCO's Customs Control and Enforcement programme therefore aims to promote effective enforcement practices and encourage co-operation among its Members and with its various competent partners and stakeholders.
Enforcement Challenges to Customs particularly in Era of Facilitation and compliance
Trade facilitation is one of the key factors for economic development of nations and is closely tied into national agendas on social well being, poverty reduction and economic development of country. In international trade Customs plays a critical role not only in providing expedited clearing processes but also in implementing effective controls that secure revenue, ensure compliance with national laws, and ensure security and protection of society. The efficiency and effectiveness of Customs procedures has a significant influence on the economic competitiveness of nations and in the growth of international trade and the development of the global marketplace. The WCO's mission is to enhance the efficiency and effectiveness of Customs administrations by harmonising and simplifying Customs procedures. This in turn will lead to trade facilitation which has been a genuine objective of the WCO since its establishment in 1952. In order to further trade facilitation, the WCO has developed and maintained Conventions, standards and programmes and provided technical assistance and support for capacity building. Through these instruments and activities, its Member Customs administrations have been able to offer their governments and other stakeholders enhanced trade facilitation combined with effective Customs control. Customs administrations world-wide face the trade security/trade facilitation dilemma, on one hand there is the continuing growth in legitimate international trade while on the other hand there is the illicit cross-border movement of weapons of mass destruction (WMD's), drugs, counterfeit merchandise, dual use chemicals, small arms, undeclared merchandise, currency, cultural property, hazardous waste and people. This has placed a tremendous pressure on enforcement function of Customs.
Expansion of volume of Trade and response of Customs In last 15 to 20 years prior to 9/11, Customs administrations, particularly in the developed world, began focusing more on trade facilitation rather than continuing to support unnecessary Customs controls. At the WCO this trade facilitation focus lead to the negotiation of the Revised Kyoto Convention on Simplified Customs Procedures between 1995 and 1999. Today 52 WCO Members, including all of the world's major trading nations, are signatories to the Revised Kyoto Convention. However 9/11 caused the world to refocus on Customs control and face a simple truth : that every nation has an absolute right to determine who and what crosses its national borders. The instrument of this exercise of sovereign control is Customs. The WCO responded to 9/11 and in 2002 established a Joint Customs/Industry Task Force on Security and Facilitation of the Global Supply Chain. Working together Customs and the private sector produced what is now called the SAFE Framework.
The SAFE Framework was unanimously adopted by the WCO Council in June 2005. In June 2006 the WCO Council approved a document on Authorised Economic Operators (AEO's) as part of the SAFE Framework. To date 144 of the 171 WCO Members have signed a Letter of Intent to implement the SAFE Framework. The theory underlying the SAFE Framework is that appropriate, focused and layered trade security measures will actually facilitate the movement of legitimate trade across national boundaries and thereby protect the global economy. The SAFE Framework is the realisation of the fact that security and facilitation are inextricably intertwined or opposite sides of the same coin. However, our private sector partners have told us that every increase in trade chain security should be matched by an improvement in trade facilitation. To date, the antidotal evidence shows that there has been an improvement in the facilitation of global trade despite the imposition of new Customs security controls.
The SAFE Framework has four core elements:
1 Advance electronic manifest information
2 A consistent risk management approach
3 At the request of the importing nation the outbound inspection of high risk cargo at the point of export using non-intrusive detection equipment
4 Enhanced trade facilitation for legitimate trade that meets certain security standards. Specifically, authorised economic operators can receive mutual recognition of their AEO status from other Customs administrations for securing their entire supply chain.
Position of Enforcement in Pakistan
Difficulties and Challenges- Trade of Pakistan crossing figure of US $50 billion mark. Secure Transit trade is another challenge to Pakistan economy. Long and porous borders coupled with staffing problems, out dated weaponry and less budget for Customs infrastructure has increased pressure on organisation. How are we doing in this balancing act between security and facilitation? Better than we were five years ago but not yet where we want to be. Technology has been an enabler but infrastructure and Customs staffing are still real issues we have to face.
Inevitably trade volumes have continued to grow and security needs have increased. It has long been apparent to Customs that there are no physical security processes that can be successfully applied to match an ever expanding threat potential while, at the same time, facilitating the rapid clearance of legitimate trade across national borders. Therefore, the sole means by which the safety of the global supply chain can be secured, without the imposition of a crippling impact on the necessary free flow of legitimate international trade, is through the consistent and effective application of well reasoned risk management regimes along with the effective use of technology and Customs best practices in security and facilitation.
In respect of movement of Drugs, pre cursors and contraband goods the challenge is great. Long and porous border has exacerbated the problem of smuggling and security to Pakistan. This is a transnational problem therefore it needs combating this trafficking at national, regional and international level. In this regard the Conferences held in Tashkent and Baku, in October 2002 and January 2004 respectively, the WCO has brought together representatives of the Customs Administrations of Afghanistan, Kazakhstan, Kyrgyzstan, Pakistan, the People's Republic of China, the Russian Federation, Tajikistan, Turkmenistan and Uzbekistan. The strategy comprised several steps, starting by obtaining a needs assessment from the Customs Administration of Afghanistan, and then from Customs administrations of States bordering Afghanistan, with a view to finally helping these States gain adequate funding for capacity building.
"Enhanced co-ordination between countries sharing a border with Afghanistan and regions affected by illicit drug trafficking, whether as transit countries, user countries or producer countries, is a prerequisite if we are to successfully fight this ever-growing trafficking". The Almaty Declaration was signed, under which the Signatories undertake to exchange more information using the existing networks (particularly the CEN), and to promote co-operation and technical assistance at national, regional and international level.
What is Road ahead
Business Process Re Engineering and Enhanced use of Technology is the way forward. The tools subsequently formulated, like the use of advance electronic information, the application of risk assessment, Customs-to-Customs co-operation, Customs-to-Business partnerships, the use of modern non-intrusive technology, were designed to provide enhanced security and at the same time facilitate legitimate trade.
WCO Safe Package Tool is a concept that moves Customs focus from importation to exportation for security purposes. However, by focusing on the exportation of goods Customs will actually increase facilitation of legitimate cargo upon importation.
The concept is to identify high risk shipments early in the global supply chain, ie at or before exportation, to allow for appropriate and timely control of high risk cargo prior to its introduction into the global supply chain's more significant transportation systems. The SAFE Framework foresees the more rapid release of legitimate cargo upon its importation by identifying international traders that demonstrate an appropriate degree of security within their supply chain.
Conclusion
The WCO has developed the Integrated Border Management System to ensure open and secure borders. The Integrated Border Management System provides for proper national and international co-operation and co-ordination of the various authorities involved in border management to ensure that borders are managed with maximum effectiveness and efficiency. The SAFE Framework is a comprehensive instrument that covers all areas of Customs control and provides a new and consolidated platform that will enhance world trade, ensure better security against terrorism and increase the contribution of Customs and its global trade partners to the economic and social well-being of nations. It gives equal importance to revenue collection, trade facilitation and security. It is high time to adopt best practices of world and invest in enforcement to secure revenues and national economy.
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Seizure Statistics of Smuggled Goods by Custom (Rs in mln)
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Description 2009-10 2008-09
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Vehicles 2549 1018
Tea & Tyres 286 60
Cigarettes & Gutka 80 23
Cloth 413 106
Auto Parts 104 24
Electronics Goods 111 44
+Others=Total Rs 4928 Rs 2158
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Drugs Seizures by Customs Quantity in Kgs.
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Description 2009-10 2008-09
Heroine 562 202
Cocaine 226 -
Charas / Hashish 16,695 90,312
Arrests No 131 178
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Seizures of Smuggled Goods & Drugs by Preventive Collectorate Karachi
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S. No Commodity 2010-11
Up to Dec-2010
Qty Value Rs In million
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A. Drugs
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1. Heroin 109.17 Kgs. 11.10
2. Cocaine 226 Kgs. 3390.00
3. Hashish/Charas -- -
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Total Value 3401.01 million
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B. Merchandize Goods
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1 Vehicles 39 34.94
1. Foreign Cloth 95168 Yards 6.30
2. Tea 6405 Kgs. 1.76
3. Tyres 84 Nos. 0.33
4. POL Products 272624 Ltrs. 20.22
5. Pirated CDs/DVDs 800 Nos. 0.05
6. Others Various 40.15
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Total Value 103.75 million
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Grand Total
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A + B Rs 3,504 million
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