WORLD TRADE WT/MIN(98)/ST/5
18May1998
ORGANIZATION(98-1955)
MINISTERIAL CONFERENCE Original: English/
Second Session French/
Geneva, 18and20May1998 Spanish
WORLD CUSTOMS ORGANIZATION
Statement Circulated byMr.James W.Shaver,
Secretary General
(AsAnObserver)
TheWorld Customs Organization extends itssincere congratulations totheWorld Trade
Organization asitcelebrates the50thAnniversary ofthesigning oftheGeneral Agreement onTariffs
andTrade.
Theforesight andvision ofGATT inestablishing international rulesfortheconduct ofworld
trade continues tobereflected today inthework oftheWTO asitenergetically pursues themeans
tohelpinternational trade move more freely. Through itsstewardship oftheimplementation ofthe
Uruguay Round ’sprogressive framework toreduce tariffbarriers within amultilateral trading system,
theWTO isproviding essential stimulus toanincreasingly globalized international trade.
Hand inhandwiththistariff reform, isadrive toreduce non-tariff barriers intheCustoms
environment which canfrustrate thedelivery ofthesignificant benefits thatglobalized tradecandeliver
tonational economies. TheWCO andtheWTO areworking together toimprove theefficiency of
Customs procedures around theworld toensure thatCustoms intervention intheglobal trade process
isbeneficial toindividual sovereign States andfacilitative tointernational trade.
Ourpartnership ischaracterized bythedevelopment ofhighly effective international instruments
andrules thatduring thenewMillennium willprovide themeans toensure thatCustoms roleinthe
international tradeprocess issimple, fairandpredictable. TheuseoftheWCO Harmonized Commodity
Description andCoding System; theGATT/WTO Valuation Code; theRules ofOrigin which are
currently being developed bytheWCO andtheWTO andtheWCO revision oftheKyoto Convention
ontheSimplification andHarmonization ofCustoms Procedures which isdueforcompletion in1999,
willtogetherprovideallour146MemberCustomsadministrationswithablueprinttoreduceunnecessary
impediments tolegitimate international trade.
WTODirector-GeneralRuggierorecentlysaid“Wehavetotakeadvantagesofthenewequalizer
potential oftheborderless technologies topermit least-developed countries toaccelerate dramatically
theirhuman andeconomic development ”.TheWCO agrees withMr.Ruggiero and,withitsunique
expertise intheinternational trade process, wants tobeafullpartner withtheWTO andother
international organizations, intheeffort toassist lesser-developed countries.WT/MIN(98)/ST/5
Page2
Indoing so,thispartnership would positively influence wealth creation andprovide assurance
tothecollection ofrevenue which arebothcornerstones toestablishing arobust infrastructure upon
which tobuild national prosperity anddevelopment.
Adynamicissueintheareaoftradefacilitationisthegrowinginternationalalarmattheincreased
incidence oftransnational crime. Drugtrafficking, commercial fraud, thetrafficking innuclear material
andother material thatendangers theenvironment, trade inendangered species, smuggling ofpeople
andother criminal enterprises thatcross frontiers haveallbeenthesubject ofstatements ofconcern
bymany States andinternational organizations.
Fortheforeseeable future, delivering social protection tothecitizens oftheworld islikely
toremain ofparamount importance fortheCustoms administrations ofmany States. There isnothing
novel about that-governments havealways usedCustoms asabulwark against suchrisks butthe
demands andpolicy imperatives areincreasing asStates seektoprotect andinsulate theircommunities
fromtheeffects andscaleofthenewthreats. Customs istheinstitution uponwhich governments rely
toassert theirsovereignty atnational borders.
Itisparadoxical thattheeffective management ofthese worrying risks creates aunique
opportunityforCustomstomakeamajorcontributiontotradefacilitation.However,complianceregimes
based onsmart, modern philosophies ofriskassessment when linked to“stateoftheart”automated
processes andtheuseofinternationally recognized bestpractices arecritical tocreating anefficient
globaltradeenvironment.Suchtechniques,builtaroundinformationbasedselectivity,meanthatCustoms
intervention willbebeneficial toboththenational security interest while permitting legitimate trade
toproceed quickly across national frontiers. Modern Customs techniques alsoassist themaintenance
ofalevelplaying fieldinglobal tradebythefairandeffective enforcement ofinternational traderules.
Thebusiness ofCustoms iscomplex andbased onanumber ofcritical interdependencies. The
partnership between compliance andfacilitation isthemost important ofthese. Concern about
transnational crime doesnotdiminish thedesire forsimplified, swift, inexpensive andefficient Customs
procedures which Ministers expressed socogently intheUNCTAD Columbus Ministerial Declaration
onTrade Efficiency. Indeed, itgivesgreater urgency todeveloping solutions which willpermit Customs
toidentify andrespond tothose Customs transactions thatpresent aserious riskwhile reducing
intervention forlegitimate traders andtravellers.
Insome instances, thereform necessary toenable aCustoms Administration toeffectively
implementrecognizedinternationalinstruments,automatedsolutionsandbestpracticesrequiresaholistic
approach toorganizational change. Modern legislation, effective human resource policies incorporating
integrity programmes, soundly based organizational structures, aservice based culture, theprovision
ofhightechinspection aidsareallexamples ofcritical elements thatarethemark ofahighquality
Customs administration.
Itisforthatreason thattheWCO hasdeveloped acomprehensive andimaginative Customs
Reform andModernization programme which provides aneffective integrated framework toguide
aCustoms administration seeking toembark onaprogramme ofreform. TheWTO hasprovided
considerable encouragement totheWCO inthedevelopment ofourCRM programme which isnow
delivering some veryimpressive improvements intradefacilitation inanumber ofourMember States.
Thisoddpartnership between compliance andfacilitation isalsounderpinned bythespecial
partnershipsthattheWCOhaswithfellowintergovernmentalorganizationssuchastheWTO,UNCTAD,
World Bank, IMFandtheother private international organizations representing commercial interests
engaged ininternational trade.WT/MIN(98)/ST/5
Page3
Against thebackground ofanambitious tradeagenda thatwillincreasingly focus ontheother
issues thatdistort freeandfairtrade, theinternational Customs community stands ready tocontinue
towork creatively withtheWTO torefine, thenlockintoplace theconsiderable advances thathave
beenmade inimproving global tradefacilitation. Byshaping aCustoms environment thatisacoherent
andpositive influence onhonest international trade, boththeWCO andtheWTO willmake anenormous
contribution totheeconomic andsocial wellbeing ofpeoples inboththedeveloped anddeveloping
world.
__________