Room XXVI Palais des Nations Geneva, Switzerland. 7 9 December Afghanistan Customs Department. Customs Automation and Trade Security

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1 UNCTAD Multi-year Expert Meeting on Transport and Trade Facilitation Room XXVI Palais des Nations Geneva, Switzerland 7 9 December 2011 Afghanistan Customs Department Customs Automation and Trade Security by Magyar Jabarkhel ASYCUDA / IT Director Afghanistan Customs Department Ministry of Finance, Kabul This expert paper is reproduced by the UNCTAD secretariat in the form and language in which it has been received. The views expressed are those of the author and do not necessarily reflect the view of the United Nations.

2 Afghanistan Customs Department Customs Automation and Trade Security UNCTAD Multi-Year Expert Meeting on Transport and Trade Facilitation 7-9 December 2011, Palais Des Nation, Geneva Malyar Jabarkhel ASYCUDA / IT Director Afghanistan Customs Department Ministry of Finance, Kabul Overall Goal The overall goal for the Afghan Customs Department (ACD) is to Facilitate & Secure Trade, Transit, Transport, Investment and make a major contribution to the economic and social development of Afghanistan & region.

3 Afghan Customs Reform Agenda Automation of Customs Process Infrastructure Reform Development of Border Stations & Customs Facilities Legislative & Regulation Reform Harmonization, Simplification & Standardization of Customs & Trade Procedures Regional and Bi-literal Agreements on Trade, Transit and Transport Data Exchange & Joint Customs Control Automation of Customs Process ( History) The first PC introduced in the Department in 2003 for document typing purposes EuroTrace introduced in major offices by 2005 for data entry and statistical purposes The first ever processing automation came along with ASYCUDA in 2006 Today we have 95% of the total trade and transit covered The first experience of touching a computer was after ASYCUDA

4 Automation of Customs Process Funded by The World Bank implemented by UNCTAD ASYCUDA ++ Prototyping end of 2005 First Transit Piloted Beginning of 2006 First DPS Piloted End of 2006 National Team - In charge of technical and functional aspects of System 1,200 Customs Officers and 1,500 Customs Brokers familiar with ASYCUDA Resources available after ASYCUDA Most of the new Customs Infrastructure came up after ASYCUDA Customs Offices are communicating via Computer Network now. Electricity become major part of the daily needs at Customs Vsat and VPN technology provides national connectivity for ASYCUDA and other needs

5 Optimum Utilization of ASYCUDA Control over internal and international transit of goods Control over any truck entered to the territory Control and permanent data capture about any vehicle being imported and drove Provision of different types of data to more than 10 entities in Afghanistan Providing Customs data to several audit and anti corruption bodies in government level Facilitate the supply chain of the goods being imported for NATO in Afghanistan Utilization of ASYCUDA T1 As a Customs Transit Document Tool to prevent the lost of trucks from Customs processing Truck movement and information document Data collection tool at border for various reason for various data elements Reconciliation document for trucks enter and leave the country Import Certificate for Registration of Vehicles within the Traffic Department

6 Utilization of ASYCUDA T1 Result Achievements in Afghanistan Context Significant reduction in the number of un reported cargo Lost of trucks from thousands to tens per year Revenue increase by 300% in 5 years period Voluntary Compliance by traders Standardization of Vehicle registration availability of reliable data about transit and movement of trucks Overall Automation Achievements Transit DPS Other modules Reduction of release time from several days to few hours Reduction of processing steps from 20 to 7 Daily national revenue reports available at HQ Out of 3,000 Customs officers and brokers 2,000 are enable to use the computer now ASYCUDA is used as core system for integration of other system involved at border crossing points and processing of goods document

7 Way Forward Continuing with the Implementation of ASYCUDA++ in the small offices to cover the remaining 5% of total trade ( 2012 ) Upgrade to the latest ASYCUDA version (World) and Single Window Features of ASYCUDA ( ) Developing value added features based on our internal needs ( ) A Real Success Story Between Around 13 Customs border and ICD operational with ASYCUDA Total 15,000 working days Despite security, resources and geographical challenges There was not a single day in the history of ASYCUDA in Afghanistan that the system was not functioning due to any reason There is no any single Customs Declaration processed on manual basis since ASYCUDA

8 A Real Success Story DESCRIPTION Number of T1 processed in ASYCUDA Amount collected T1 (USD) YEAR ,786 13,496,078 TOTAL AMOUNT ( ) 1,928,729 45,586,019 Year 2011 Year 1919 Thank You