GLOBALLY NETWORKED CUSTOMS (ItemVIII on the Agenda)
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1 PERMANENT TECHNICAL COMMITTEE - 197th/198th Sessions - WORLD CUSTOMS ORGANIZATION ORGANISATION MONDIALE DES DOUANES Established in 1952 as the Customs Co-operation Council Créée en 1952 sous le nom de Conseil de coopération douanière PC0298E1a Brussels, 10 September GLOBALLY NETWORKED CUSTOMS (ItemVIII on the Agenda) NOTE Copies of the final report of the ad hoc Working Group on Globally Networked Customs will NOT be available from the Secretariat. Delegates should use the members website to access the report and Annexes prior to the meeting. In particular, Annexes E, F, G, H, J, K, L and N. Background 1. Globally Networked Customs (GNC) is one of the major pillars of the Customs in the 21 st Century document adopted at the 2008 Council Sessions. A proposal to further conceptualize GNC and conduct a two-year feasibility study (later extended by a further year) was adopted at the June 2009 Council Sessions, resulting in the establishment of an Ad Hoc Working Group. This Group delivered a final report on the Feasibility Study to the June 2012 Council sessions. 2. The Council agreed that the Ad Hoc Working Group had delivered the mandate set for it, and supported a move from the conceptual phase to a development and testing or proof-of-concept phase during which the various aspects of the GNC model would be thoroughly evaluated and feedback incorporated into an updated model. 3. During this phase, which could take two or three years, pilot projects among willing Members would be strongly encouraged. This phase would have a light touch administrative structure, whereby dedicated agenda time would be set aside in the PTC for work on GNC proof-of-concept pilot projects. Project-focused Member-managed implementation of proof-of-concept pilot projects could take place simultaneously, under the auspices of the PTC. For reasons of economy, documents are printed in limited number. Delegates are kindly asked to bring their copies to meetings and not to request additional copies. Copyright 2012 World Customs Organization. All rights reserved. Requests and inquiries concerning translation, reproduction and adaptation rights should be addressed to copyright@wcoomd.org.
2 PC0298E1 General 4. GNC is about facilitating the electronic exchange of information in a systematic and incremental way, using the Utility Block (UB) concept. Under this concept, information exchanges take place on agreed areas of data, amongst agreed parties, and are supported by WCO standards and tools. 5. Two UBs have been developed to date; under the first of these, on Authorized Economic Operators, users exchange data about their AEOs with their partner countries, thus creating a platform for future mutual recognition; the second existing UB concerns commercial fraud. More UBs will now be developed by volunteer Members. Each UB, for use by willing partners, will have its own data set and be supported by protocols (format in line with the WCO Data Model), standards (technical norms in line with other WCO standards) and guidelines (recommended practices) to manage information exchanges. 6. UBs are constructed on a common template (Annex A) setting out who exchanges information, what information is exchanged, how it is done and under what kind of legal framework. Starting from that common template, the willing parties to each exchange will develop their own protocols, standards and guidelines (PSGs), which would be in line with the WCO standards and tools such as the Revised Kyoto Convention, the SAFE Framework of Standards and the Data Model. In this way, GNC would also help to support those WCO standards and tools. Next steps 7. The PTC will now implement the Policy Commission/Council mandate PTC to manage the proof-of-concept phase for GNC. The mandate calls for this to be done through the use of dedicated agenda time in the PTC, which could take place simultaneously with project focused Member-managed implementation. (Descriptions of the mandated process are reproduced in Annex B). 8. Proof-of-concept pilots will be implemented by voluntary partnerships of two or more members to test, amend, improve and bring to fruition the various components of the GNC model as described in the Feasibility Study final report and as further developed by Members and the PTC. Longer term 9. At the end of the proof-of-concept phase (probably 2015), PTC will report to the Policy Commission on the results of the evaluations of the various pilots to inform decision-making about the permanent phase of GNC. Immediate action by PTC 10. The proof-of-concept phase moves the main focus of GNC development from the generation of ideas to the implementation of the agreed model, most of which will be completed by members at national and regional level. The major early tasks for the PTC involve confirming that the GNC components being used during the proof-of-concept pilots are fit for purpose, and will realize the Customs in the 21 st Century vision of an international e-customs network that will ensure seamless, real-time and paperless flows of information and connectivity. 2.
3 PC0298E1 11. To assist with this, as well as building on the material in the final report of the ad hoc Working Group, PTC will need to draw on current and future proposals from Members volunteering to carry out proof-of-concept pilots. The final report of the ad hoc Working Group on Globally Networked Customs Annex E Appendices 5 and 6 include examples where Western Balkan and Southern African members are doing just that. The full list of potential proof-of concept pilots is: Western Balkans: Your Exit is My Entry. Southern Africa: Transit, Export, Import. EU and Switzerland: Mutual Recognition of Customs Controls. EU and Switzerland: Export data. EU and China: Pre-arrival data from SAFE FoS. Japan and Malaysia: Dematerialization of supporting documents. Middle East: Transit and Export. Belarus, Russia and Poland: Transit by railroad. India and South Africa: Commercial Fraud. Argentina: Use of GNC model for future MERCOSUR arrangements. 12. Currently, there are no volunteers to take forward the Utility Block (UB) described in paragraph 5 on the exchange of information on AEOs. As this UB has been one asked for by a number of Members, the PTC will need to consider how best to ensure that work on its development gets taken forward in the proof-of-concept phase. 13. During the meeting, PTC will tackle these issues by working in break out groups. An outline programme appears at Annex C. Delegates are advised to draw on the contents of the final report of the ad hoc Working Group on Globally Networked Customs in preparation for the work to be done. Please note that Convenors and Rapporteurs for the break out groups will be appointed from the PTC membership. 14. Each break-out group will work on the various layers of the Utility Block (Annex A) and the other components of GNC within the context of the respective proof-of concept projects, decide the extent to which they deal with other components such as the legal toolbox, determine how best to tackle outstanding issues such as identifying and dealing with the challenges Members will face during the proof-of-concept phase, work on incorporating identity and other entity management processes in the UBs, confirm or amend the compliance and certification process described in Annex F of the final report of the ad hoc Working Group on Globally Networked Customs, and 3.
4 PC0298E1 if necessary as a result of break-out discussions, amend the list of services to be provided by the WCO Secretariat described in Annex N of the final report of the ad hoc Working Group on Globally Networked Customs. 15. Having concluded the work in the break-out groups, the PTC is asked to: Agree the way ahead, and Consider the need to report to December Policy Commission. * * * 4.
5 Annex to doc. PC0298E1 ANNEX A Utility Block Template Name of the Block Purpose Legal Framework Entities Business Rules Data Cluster Triggers Interface Integration Communication Advantages e.g. AEO, Commercial Fraud What the block is supposed to do. The law, including the instrument providing the legal gateway. Those who can send/receive information, and the methods of identifying them. The specific rules for the UB. If not described elsewhere, includes relevant Protocols, Standards and Guidelines. The list of data elements for the UB Events that either start the data flow, or respond to data receipt How the parties in a GNC relationship are connected How a GNC partner connects to its own systems The electronic means of exchanging information Benefits delivered to: Customs, Business and Other Agencies I/1.
6 Annex to doc. PC0298E1 ANNEX B Dedicated agenda time in the Permanent Technical Committee 1. A day will be set aside at each PTC for work on GNC Proof of Concept pilot projects. The work is limited to discussions about existing and planned Proof of Concept Pilots, and on improving and developing the GNC Utility Block (UB) Template and the other supporting components of the GNC model as developed by the ad hoc Working Group. The meetings will have interpretation unless specific break-out groups are created to evaluate particular details, in which case interpretation for all groups cannot be guaranteed. 2. The PTC will make decisions about the progress of Proof of Concept pilots, including if there is a need to check that they are in conformity with the GNC Standards, Protocols and Guidelines, and to get assurance from the relevant technical expert groups and other WCO committees. 3. The PTC will determine when the results of project evaluation reports should be considered by the relevant technical committee or working group. If satisfied that the UB can be replicated by all Members with little or no further development, it will go forward for endorsement by the Council. It will then be deposited in the proposed Secretariat repository. 4. The PTC reports progress to the Policy Commission. Project focused Member managed implementation. 1. Members involved in the implementation of Proof of Concept pilot projects will work together on a selected Utility Block (UB). They agree their working methods. The work is done by drawing on the GNC UB Template, and the other supporting components of the GNC model as developed by the ad hoc Working Group. They conduct meetings within their own resources. 2. They will inform the WCO Secretariat about what they are doing. Where others are working on similar UBs, the Secretariat will let them know. As and when required, they will seek guidance and support from the Secretariat. In particular, if there is a need to check that they are in conformity with the GNC Standards, Protocols and Guidelines, and to get assurance from the relevant technical expert groups and WCO committees. 4. Other Members wishing to join in the work will contact the existing project members directly, or through the Secretariat. 5. On conclusion of their work, an evaluation report will be sent to the Secretariat who will arrange for the results to be considered by the relevant technical committee or working group. If satisfied that the UB can be replicated by all Members with little or no further development, it will go forward for endorsement by the Council. It will then be deposited in the proposed Secretariat repository. 6. Report on progress will be by the Secretariat, supported by relevant Members, to PTC. I/2.
7 Annex to doc. PC0298E1 PROGRAMME: Globally Networked Customs break out sessions Annex C Tuesday 6 th November 09:30-09:45 Introduction and scene-setting. 09:45-10:15 Brief history of GNC; Policy Commission/Council Decision, including the mandate to and implications for, the PTC; Outline of next three years and the proof-of-concept phase. 10:15-10:30 Briefing for break-out sessions; Setting up two groups (one with translation, one English only); Appointing group convenors; Appointing group rapporteurs. 10:30-11:00 Tea/coffee 11:00-13:00 Break-out Groups (session 1) 13:00-15:00 Lunch 15:00-16:45 Break-out groups (session 2) 16:45-17:15 Tea/coffee 17:15-18:00 Break-out groups summarize outcome; Rapporteurs write up break-out group results. Wednesday 7 th November 09:30-10:15 Reports from break out sessions. 10:15-11:00 Discussion of results; Final summary; Agreement on the way ahead, including need for report to December Policy Commission. I/3.
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