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CUSTOM REFORMS AND MODERNIZATION BEST PRACTICE INTRODUCTION Knowledge as to how the Customs environment is evolving and how colleague Administrations are managing change can help senior administrators better respond to the challenges ahead. So as to benefit from the collective experience of the Membership, the (World Customs Organization) W.C.O has recently conducted a survey and those results are now available. It is hoped that the results stimulate discussion and reflection on the issue of Customs Reform and Modernization. The results are an analysis of the responses from 38 countries or 27 % of the total WCO membership. This is considered to be a sufficiently valid sample from which to draw indicative conclusions. We appreciate the contributions from the following Members and wish them success in their endeavours to deliver world class Customs services :
The experiences and best practices included in this report are those made available by the Members for the purpose of this survey. TRENDS Some of the trends described are already emerging; others can be foretold from certain signs. All are supported by experiences and best practices shared by the different Members. First, a backdrop against which to view these critical trends for Customs executives and officers alike. Three major forces - the proliferation of Free Trade Agreements, government performance review and rapid technological advances - have profoundly changed, and will continue to change, the nature and content of the Customs work. Almost 75 % of participants indicated that economic integration within the framework of Free Trade Agreements or Customs Unions has been a major force in reform. It is noted that the number of regional trading agreements is proliferating. The WTO lists no fewer than 76 Free Trade Areas or Customs Unions set up or modified since 1948, more than 50 % have been established in the 1990’s (see Charts 1 and 2). International liberalization has resulted in booming trade volumes (see chart 3). The WTO estimates that world trade grew by 8 % in 1995 - four times the growth of world GDP. In fact, during the 1990’s trade has grown far faster than world output, which indicated that national economies are becoming ever more closely linked. This has been a significant influence in promoting Customs modernization particularly in developing/emerging countries where it has been an important driver for 71 % of the members (Chart 3). Many Governments - 66 % of developing/emerging countries - are considering diversifying existing indirect tax regimes to find other ways of maintaining revenue yield. Increasingly, Customs administrations are assigned the responsibility for the administration of all indirect taxes including VAT and Excise duties. Government performance review has pushed up to 60 % of respondents toward reform and modernization. Budgetary concerns continue to be a major factor in streamlining and "Customizing" services. Increased Drugs and security threats are a main issue for 55 % of developed countries compare to 26 % for developing/emerging countries (Chart 3). WHAT AREAS HAVE BEEN REFORMED OR MODERNIZED Change is a continuous process, but in the last five years the pace of change has led to extensive reform and modernization in the Customs community. 82 % of administrations have been confronted with difficulties caused by archaic legislation. They have reviewed them and sometimes introduced new Customs legislation to reflect new priorities and methods of carrying out the Customs function (Chart 4). Information management is also of critical importance for 71 % of the Members surveyed. Technology is now playing an increasing role in the management of information. IT is currently utilized in some countries to assist the Customs data management and electronic data interchange. 64 % of all administrations surveyed and 89 % of developed countries have modernized their enforcement strategies and working methods. The changing face of Customs enforcement with the emphasis on flexible, risk based and targeted operations accentuates intelligence as the principal weapon to identify fraud and smuggling and the effective deployment of limited resources (Chart 5). Human resources policies have also been under scrutiny by 61 % of the Members surveyed. Reforms include : recruitment policies, training services role and performance appraisal systems. Many Customs administrations have increased the proportion of university graduates, in their recruitment programmes to support, among other areas the increasing emphasis on systems based audits and the use of information technology. As a result of government performance reviews and changes in the operating environment, more than half of administrations (57 %) have streamlined their organizations, removed layers of management, got closer to their customers. An increasing number of administration have indicated that they are moving into the direction of a revenue authority (an integrated Tax and Customs administration). To aid trade facilitation 57 % of Customs administrations are developing procedures which will expedite clearance of legitimate shipments while accurately targeting irregular transactions. 35 % of the Members surveyed and almost half of the developing/emerging countries have reviewed their Tariffs (Charts 4 and 5). According to a recent WCO’s survey, 77 countries have implemented the 1996 amendments to the HS. This represents 87 % of the Contracting Parties. WHAT CHANGE MANAGEMENT METHODS HAVE BEEN SUCCESSFULLY USED ? Everyone faces change - the challenge is to manage that change. Those administrations who employ change management principles will be advantaged in implementing wider changes within their organization. Maintaining two-way communication both inside and outside is a critical success criteria for 76 % of the Members surveyed. Some Members even used in-house broadcast where employees could take part in live television discussions with the Minister and Director General (Chart 6). 59 % of Members use outside consultants (65 % of developing and emerging countries and 44 % of developed countries). One Member pointed out that outside consultants were successfully used only when the Customs administration had a clear understanding of what they wanted them to do.Internal and external focus groups have been the primary methods to define change requirements for 51 % of the Members surveyed. Many have established permanent structures for consulting stakeholders (groups and individuals who have a specific interest in the business of Customs). Customs role in international trade can be exhorted to combat drug trafficking and other commercial fraud activities. Developing partnerships with trade and other government agencies and closer co-operation between Customs administrations themselves have been put in place by 44 % of Members surveyed. Business process re-engineering has been thus far most widely used by developed countries, 67 % have re-engineered their business processes to enable them to become more efficient and effective having proper regard to the impact of their activities on the trading community and the travelling public. WHAT ARE THE FUTURE CHALLENGES ? There are still more challenges to come, here is an outline of what WCO Members see as the main influences of Customs in the future. A striking 93 % of the Customs administrations surveyed will try to achieve further gains in efficiency and effectiveness. Some are actually able to operate successfully at costs less than 1 % of revenue collected (Chart 7). Attitudinal and organizational cultural change will be necessary. Customs administrations are changing the way they conduct business. More are taking the position that importers and exporters are customers and must be treated as partners, not adversaries. Improving service to customers is for 93 % of Members a major challenge. In the future, 86 % of Customs administrations will extend their use of technology to include items such as artificial intelligence, bar coding, document imaging. A number of Customs administrations are looking at the possibility of further developing electronic communication between Customs and business. This will have very significant benefits for Customs, as the administration of the future will rely on accurate and timely information in order to carry out its function. Ultimately it is hoped that this could lead to the practical implementation of a "seamless data flow" or, as it is sometimes described, an "integrated data transaction". According to 82 % of the Members surveyed, the increase in the demand for new skills will lead to the increase in the need for training staff to do new jobs and retraining staff to do jobs differently. Combating transnational crime is seen as a challenge for 75 % of the Members surveyed, 100 % for developed countries. The G7 + 1 is alarmed by the growth of organized transnational crime, including money laundering, and have urged countries to adopt necessary legislation. Success is achieved by those with access to the most accurate and timely statistical information according to 68 % of the respondents. Some are striving to become the main repository of trade data for compiling trade statistics and in formulating trade policy. Integration into free trade and or Customs unions will remain a challenge for 75 % of developing and emerging countries and thus the development of common tariff and origin rules (Chart 8). WHAT TECHNIQUES AND IMPLEMENTATION APPROACHES ARE LIKELY TO PLAY A PIVOTAL ROLE IN IMPROVING FUTURE CUSTOMS MANAGERIAL PRACTICES AND PERFORMANCE ? As Customs administrations seek to maintain and increase their efficiency and effectiveness, 77 % favour risk management, which allows for better targeting their resources towards those areas which most warrant attention. By using the principles of risk management, Customs administrations will also be able to demonstrate to the Government that they are ensuring the best available outcomes for the country within the constraints of the resources they are given (Chart 9). 70 % of the Members surveyed intend to use strategic intelligence to support the effective achievement of organizational objectives. In the enforcement context, strategic intelligence will provide executives and senior managers with a timely insight of current and emerging trends, threats to public safety and avenues for change to policies, strategies and legislation.In the past, changes have been brought about by process improvement simplification. 60 % of Members have indicated that they could go a step further using business process re-engineering and examine whether existing processes and structures are really the best way to meet objectives. Customs administrations are also embarking on a new era of performance measurement (60 % of Members surveyed) as a way of guiding the effectiveness of their initiatives and efforts. More administrations are going beyond cost-based measures to include quality and time-based measures. Some are developing compliance measurements. 50 % of the Customs administrations surveyed have or will introduce management audit as a means of quantifying the movement of goods and travellers to aid the allocating resources and to measure results. 45 % of the respondents are of the opinion that Total Quality Management philosophy and practices will play a pivotal role in Customs managerial practices in the years ahead. Some have or will join National Quality Council, others will go a step further and seek ISO 9000 accreditation for the quality of service that it wants to attain of its service function. 40 % of the Members surveyed say that they are in the process of becoming a learning organization, with the capacity to learn, adapt and change. The management task will also be different for 28 % of the Members - the focus is increasingly on leading and coaching people towards achieving outcomes, rather than just managing tasks. WHAT SKILLS ARE MOST LIKELY TO BE IN DEMAND The key to successful future development of the Customs is to upgrade the professional know-how of its employees. Many of the Customs administrations surveyed are creating broad based skills development programmes to enable current and future employees to function better in the Customs environment and to equip them to better handle the new techniques and IT systems. More than just traditional training may be needed. Measures such as "apprenticeships", distance learning technologies and the establishment of networks are being considered (Chart 10). The increasing reliance on the use of intelligence as a tool for greater selectivity will increase the demands for risk assessment skills. Computer literacy will be essential for Customs officers as information technology becomes an integral part of the workings of the administration and as most of the day-to-day operation is dependant on computer- based systems. In addition, personal computers will be used for accounting, word processing and, where the personal computer is connected to a network, for electronic mail. As Customs places greater reliance on post-release audits, audit skills are going to be required. These skills will need to be incisive and effective to ensure proper compliance.As more administrations become knowledge based, information management skills will be increasingly in demand. Foreign languages will continue to be important with increased internationalization and 55 % of administrations will enhance their language skills. FORCES THAT HAVE COMPELLED CUSTOMS TO REFORM AND MODERNIZE People, processes and partnerships (USA) Building bridges over turbulent waters (Algeria) AREAS REFORMED AND MODERNIZED EDI FACT (Norway) New legislation (Cuba) "ACROSS" (Canada) Client/server Network (Finland) Introduction of a system of guarantees for internal transit of goods (Albania) SUCCESSFUL PRACTICES Hybrid Benchmarking (United Kingdom) Personnel Analysis Group (Germany) CHALLENGES Service with a capital "S" (New Zealand) Towards world-class Service (Philippines) TECHNIQUES AND IMPLEMENTATION APPROACHES Risk management (Mexico) INGRID (Indicator of Customs’ Internal Resources Management) (France) Project management (Morocco) SKILLS MOST LIKELY TO BE IN DEMAND Information and training (Czech Republic) PEOPLE, PROCESSES AND PARTNERSHIPS (United States) In October 1993, Commissioner George Weise established a Customs Reorganization Study Team and endowed it with a broad and simple charter : To develop an organizational structure that would enable the U.S. Customs Service and its employees to make their maximum contribution to the nation. In response to that charter a report was produced which recommended management approaches and an organizational structure that would enable Customs to meet the challenges of the 21st Century as a more efficient, and adaptable organization with high employee involvement. Being fully aware that demands for service from its customers would continue to increase, and that increases in resources would not keep pace, the study team sought to find ways to move staff from support functions to operational functions. This emphasis on cost avoidance, rather than increases in appropriations, was especially well suited to the national need for deficit reduction balanced with customer service. To that end, the concept of reinvestment was accentuated. The reinvestment strategy directed available resources toward the resolution of global trade issues, providing increased attention to ensuring voluntary compliance with trade laws through enhanced informed compliance efforts, improving the use of information technology by building on and enhancing Customs’ Automated Commercial System, and providing the employee training necessary to enable us to implement process management and customer focused approaches to the Customs’ missions. It was concluded that the number and scope of mission challenges facing the Customs Service, combined with the numerous concerns expressed by employees about the existing management environment, made a compelling case for significantly changing the Customs management structure. In order to achieve the new vision for the Customs Service, to increase its service to the nation, and to meet the challenges of the future, it would be necessary to transform Customs’ culture to one focusing on People, Processes and Partnerships. The new culture would characterized by : managing essential core processes, a change that would require integrating the many disciplines within the Customs Service into more coordinated efforts to achieve Customs mission goals; serving the legitimate needs of Customs’ many customers as the focus of the organization’s process management efforts, and forming partnerships with them as a means of meeting their needs and improving Customs’ mission performance; building a workforce for the 21st century, working cooperatively to develop strategies to tap the potential of Customs’ employees so that, working together, they could meet the mission challenges facing the Customs Service. To this end, Customs redefined its core processes and has moves to a management approach centered around these processes, identified its customers and their needs, developed methods for defining customers’ needs as process goals, improved its workforce through empowerment of its employees and an elevated Human Resources Management program, realigned the organizational structure to reduce layers and support the core processes, and reinvested its resources into priority mission areas. BUILDING BRIDGES OVER TURBULENT WATERS (Algeria) The new economic policies in Algeria (with, since 1991, a shift away from a controlled and centralized economy towards a market economy) and the globalization of world trade have made Algerian Customs aware that it might well find itself unprepared to face the new external trade rules based in a type of behaviour unfamiliar to the vast majority of Customs officials in Algeria. Thus, change has not been seen as a choice but as an absolute necessity for complete restructuring without the Customs Administration was liable to impede economic development and at the same time lose ground with the sudden arrival of new operators and new techniques and rules for supervising international trade. The Administration’s strategy for change was laid down in mid-1993. A modernization programme was prepared on the basis of a whole series of diagnostic studies carried out by senior Customs staff, who adopted it at a national seminar. This programme was presented to the authorities who accepted it at an inter-ministerial meeting in November 1993. The approach decided upon by the Directorate General of Algerian Customs to develop its modernization strategy was centred on : 1 - Identifying the fundamental agents of change; 2 - Introducing strategic management techniques into Custom’s management policy; 3 - Increasing internal communication with staff and social partners so that all become stakeholders in the plan to modernize human resources through a wide range of meetings and seminars. However, the risk of resistance to change, whether internal or from the Customs environment, was taken into account in the strategic plan. The Directorate General of Customs has therefore implemented an intensive communication policy aimed at : - Customs officials, to convince them of the need for the modernization plan, for changes I behaviour and culture and for openness to the external environment (universities and higher education/colleges, consultants and experts) on which real improvement to the Customs service and overcoming the problems that stem from the sudden liberalization of external trade largely depend; - Public authorities and certain institutions, so that Customs is repositioned as the main State instrument for implementing the new fiscal, economic and trade policy. - Public and private economic operators, so that they can be convinced of Customs’ new role as an economic partner and not just as a fiscal agent. EDI-FACT (Norway) The Norwegian Customs Administration implemented its EDI-FACT declaration system as early as 1988 and by 1992 the system was available to nationwide. Since October 1994 paper-based Customs declarations are manually entered into the electronic clearance system by local Customs authorities. Due to the advantages enjoyed by on-line users by 1996 5 % of the Customs declarations are paper based and the rest pass through the EDI-FACT system. About 85 % of the Customs declarations pass through the system without being stopped for further investigation. The system is presently available to the public on a 24-hour basis and average time for the system to clear the goods is 15 minutes. In addition, the quality of the declarations has improved drastically over the last few years. NEW LEGISLATION (Cuba) In Cuba the present Customs organization is the result of a process initiated in 1990 and concluded in April 1996 when the legislation was enacted by the State Council of Cuba. The legislation was drafted in accordance with universally accepted concepts abd practices, including those reflected in Kyoto Convention of 1973 as well as other World Customs Organization recommendations. It also strikes a balance between the requirements of control and facilitation in order to ensure that genuine international transit of commodities and travellers are not subjected to unecessary Customs formalities. Risk analysis techniques now make it possible to guarantee facilitation to genuine travellers and consignments without unduly compromizing enforcement against illegal activities. At the same time, our legislation is in agreement with those Conventions and Agreements, referred to Facilitation for Travellers, Tourists and Temporary Admission of Commodities to be exposed in exhibits and farias. "ACROSS" (Canada) Revenue Canada expands its use of Electronic Data Interchange Revenue Canada is continuing to research new electronic data interchange (EDI) technologies to automate its existing manual, paper-based customs release system. A new system called the Accelerated Commercial Release Operations Support System (ACROSS), has helped Revenue Canada tailor its programs and services to particular industry sectors and businesses by amalgamating and broadening some of its existing systems to form an integrated EDI system. ACROSS stems from the Department’s New Business Relationship initiative, where we tailor our programs and services to particular sectors and business. The system was implemented nationally at all our automated customs offices in April 1996. ACROSS handles customs’ reporting and processing needs 24 hours a day, seven days a week. It analyzes release data from clients and recommends whether or not a commercial shipment should be released or examined based on importer compliance profiles and the type of goods. Some of the basic features of the system include : EDI release transmission; flexible service options for doing business; new ways to manage customs’ workload between offices across the country; automated decision support on the release of goods; and capability of identifying high-risk shipments. EDI systems leading up to ACROSS ACROSS is not the first EDI system Revenue Canada developed to streamline its Customs processes. There are also the following : The Customs Automated Data Exchange System (CADEX) Customs Declaration Message (CUSDEC) allows importers and brokers to electronically transmit their accounting data. CADEX\CUSDEC now serves more than 270 clients, making up 86 % of Canada Customs’ commercial business. The release Notification System (RNS) is designed to electronically advise clients that Customs has released their goods. The Pre-Arrival Release Notification System (PARNS) is available 24 hours a day and allows the carrier to electronically provide Revenue Canada with Customs data on shipments in advance of the goods arriving in Canada, permitting pre- arrival review and processing of the data and electronic transmission of a release or refer for examination notification once the goods arrive. The EDI Cargo System allows clients using marine and rail transportation to send their cargo data to customs electronically before the goods arrive. With this system, importers no longer have to present the paper documents with the goods. ACROSS is being built to move Revenue Canada into the next century. It will be easier and faster for importers, who comply with Customs laws, to have their goods released. At the same time, customs inspectors will be able to target those goods and importers who are high risk. CLIENT/SERVER NETWORK (Finland) Client/server network; planning and implementation of data systems of the Customs administration. Multilevel organizational structures have been replaced by simpler ones. At the same time activities have become globalized and the organizations form co-operation networks. By using data networks organizations can function irrespective of time and place. In the Customs area in Finland, there will be co-operation networks at least in the following spheres of activities : control of international transport systems, co-operation with Police authorities in criminal investigation, sharing of databases of Customs administration and agricultural authorities, data interchange between shipping companies, hauliers, harbour operators, forwarding agents, importers, exporters and the Customs administration. Within the Finnish Customs administration the solution is a client/server network. The terminals of the Customs personnel are connected to a common network and the Customs officers have access to the systems they may need. It concerns all Customs work including word processing, use of databases, Customs clearance data, payment data, licence management as well as common personnel and financial administration systems, management systems and electronic files. INTRODUCTION OF A SYSTEM OF GUARANTEES FOR INTERNAL TRANSIT OF GOODS (Albania) Prior to 1994 the Customs administration experienced considerable difficulties in accounting for transit consignments. Since then a system of guarantees for internal transit of goods was introduced. Under this system internal transit consignments must be covered by any one of the following guarantee :. 1. Personal guarantee (cash guarantee). 2. Customs broker guarantee consisting of a letter of guarantee lodged with Customs by a licensed broker. To be licensed for this purpose a broker should lodge a blanket bank guarantee in favour of the Customs to cover all their operations. 3. Banking guarantee, which means that if a bank, or any third party authorized by the bank, gives a written guarantee in respect of an importer of exporter. 4. Insurance guarantee, which means that there is an insurance company which guaranties that an operator will go to make Customs clearance at the place of destination. This approach results very successful for our conditions. At the present, we are experiencing too far less Customs offence in dealing with internal transit. HYBRID BENCHMARKING (United Kingdom) Benchmarking is a systematic method to improve performance by measuring and comparing products, services and processes against the best. It is used widely in the private sector for competitor analysis; as a quality tool; to drive down costs; and as an efficiency tool. However, HM Customs and Excise interest lies in its use as an efficiency tool to deliver value for money services. It was decided that the way forward was to develop a technique that utilized a high level approach to benchmarking within a structure similar to that of a market test. We named the new technique "Hybrid Benchmarking" and defined it as : "An efficiency technique which compares departmental performance in chosen areas with public and private sector performance in similar areas using a structure similar to that of a market test". The Hybrid Benchmarking technique provides a structured approach focused on the delivery of efficiency savings and improvements to quality; a method of ensuring that efficiency improvements are put in place and delivered through Service Level Agreements; a method of comparing price and quality through the identification of best practice; access for private sector involvement through the use of consultants; involvement for all the staff concerned in the process without the fear inherent in market testing that jobs may transfer to the private sector and a process that can be used in core and non-core areas. Results of Hybrid Benchmarking In 1995-96 exercises were conducted in all the departments regional units and headquarters. The activities examined included typing, personnel management, information technology support, accounts and finance, premises management and VAT Control Unit (processing returns). In all, we conducted nearly fifty exercises covering 1,300 posts, with a total annual value of £ 30 millions. The results of these exercises were remarkably similar to those using market testing with average savings of around 20 %, with the standard of service being at least maintained and, in many cases, improved. PERSONNEL ANALYSIS GROUP (Germany) One of the main objectives of the customs administration is to make the administration more economical and efficient. The corresponding initiatives for the realization of the model of a "lean state" provide for creating larger administrative units and broader fields of work in order to facilitate concentration of tasks and a greater degree of specialization of the work force. Larger units, capable of specialization, are thus clearly accorded priority over small, "all-round" units. At the same time, our efforts to achieve greater economy in administrative action focus on the centralization of tasks, the optimization of work-flows and progressive utilization of informational technology (IT) as well as efficiency reviews of government activity including the possibility of transferring some tasks and functions outside the administration. In order to optimize operational procedures and determine manpower requirements in line with the tasks to be done, in 1990 the customs administration created what are known as Personnel Analysis Groups. These groups have the job of conducting functional analyses for individual fields of work on the basis of recognized ergonomic methods, examining organizational structures and work-flows and producing work statistics, in order to lay down operational procedures and plan personnel requirements. The work of these groups therefore makes a significant contribution to ensuring and increasing the effectiveness and efficiency of administrative action. SERVICE WITH A CAPITAL "S" (New Zealand) It’s a word that many organizations bandy about and, for a lot of people, seems to be no more than the latest nineties buzzword - especially if you’ve had bad service from a so called service organization. But for New Zealand Customs, "service" has been taken so much to heart that it’s soon to be known as the New Zealand Customs Service. "That one word underscores our values," says Comptroller Graeme Ludlow. "Service to the Government as a collector and enforcer, and service to New Zealand business and individuals in terms of meeting their expectations. Our aim is to get a good fit between the two types of service, and to do the best we can for both Government and New Zealand. "By having a client focus we will be able to develop initiatives that meet their needs within the limits imposed by the law. It will bring Customs into the late 20th Century, and is part of a whole revamp of everything we do. The new Act will help us use our customer focus, as will our modernization project, but we see client focus as involving everything from the Act to little things like redesigning public counter areas. "For example, New Zealand is no longer an eight to five, Monday to Friday country. We need to reflect that. We also need to be more approachable - for us, service means giving people answers to questions rather than just telling them what the procedures are." Mr. Ludlow says that putting the word "Service" in the name gets the message through to everyone - inside and outside the organization. That message is : Customs is only there to provide a service to New Zealand society. TOWARDS WORLD-CLASS SERVICE (Philippines) As the Philippines Bureau of Customs moves toward the 21st Century, it sees for itself a Vision for its preferred future. Inspired by the common desire to make the Philippine Customs Service truly a world class Customs Service. Our concepts of a successfully implemented modernization initiative are the following : IMAGE - held in high esteem in the public view, its role for national development and international trade facilitation shall be imbued in the hearts and minds of every Customs official and staff as the Bureau moves forward in its other roles of promoting National Security, Justice, Health and other objectives. STAKEHOLDERS - A truly professional relationship should exist between Customs and Industry. It shall attain a high level of cooperation and it sees itself even closer to its clientel through the provision of appropriate machinery for communicating suggestions, complaints and other form of feedback. TARGETS, POLICIES & PROCEDURES - It shall be capable of processing all documents electronically within minutes and be able to release goods in a matter of hours as its computerization moves forward to advanced state of Electronic Commerce. It sees itself adopting international standards for procedures, forms and codings and sees exceptionally good working relationship with the legislature so that laws are more responsive to the demands of modernization. ORGANIZATION & PEOPLE - It shall advance towards a streamlined organization characterized by decentralized Management and Control as well as a leaner but more highly paid staff. RESOURCES - In order to provide quality Service to the Business Community while generating maximum revenue for government, the Bureau shall be equipped with modern building facilities and office equipment. It shall have sufficient land, air and water transport resources to assist in its operation and it shall use state of the art technology to cope with the changing Trade Environment for the next millennium. RISK MANAGEMENT (Mexico) Mexican Customs use an intelligent aleatory system which determines whether or not goods will be inspected. The system relies on data such as country of origin, importer, exporter, type of merchandise, tariff item number, etc., loaded into its database to determine whether a particular passenger of consignment must be inspected. Upon completion of Customs formalities in respect of a passenger or a consignment the system is interrogated by the pressing the appropriate button. In 90 % of the time the green light flushes indicating that no further formalities are required. Consequently, only 10 % of passengers or consignments are chosen for inspection. Unlike with other systems this systems is not entirely random as it uses information in its database to determine the level of risk. This kind of risk management system has proved to be very successful to Mexican Customs and has a good impact in public image as well as in revenue. INGRID (Indicator of Customs’ Internal Resources Management) (France) The French Customs Administration is going to set up a database accessible to the offices of both the Directorate General and the regional directorates. The server, called INGRID (Indicateur de Gestion des Ressources Internes de la Douane - Indicator of Customs’ Internal Resources Management), contains data from two user programs. One program records, on a half-yearly basis, a number of indicators relating to Customs resources, the Customs environment and the results and activities of the various departments, while the other covers the use of the departments’ operating funds, whose management is the responsibility of the regional director. In bringing all this data together, INGRID constitutes a real management control system for evaluating the service’s efficiency, the suitability of the organizational methods chosen and the cost of various missions. The departments can consult some fifty tables on the most frequent studies. Using specialized software they can also conduct any specific studies as required. PROJECT MANAGEMENT (Morocco) Since April 1995, the Ministry of Finance and Foreign Investment has been involved in a huge modernization programme affecting several areas of activity. This programme revolves around the following four main strategic axes : 1. Greater openness to the Ministry’s clients and partners by taking account of their expectations and by promoting the concept of "public service". 2. Seeking efficiency in the areas of the Ministry’s activity by optimization of human, material and financial resources in Ministry headquarters and external services. 3. Motivating all the Ministry officials to support the modernization plan by adapting the management plan and by progressively improving working conditions 4. Ensuring that the Ministry’s working practices keep pace with developments in the national and international environment. An action plan had been developed to attain these objectives, comprising not only short-term actions aimed principally at establishing a climate for change, but also as reform projects which should in the long term result in the restructuring of the Ministry and improvements in its operation. Our structuring reform projects are as follows : 1. Clarification of the Ministry’s missions and adapting the way it is organized; 2. Designing a system for evaluating client service; 3. Reforming the rules through process logic; 4. Upgrading of procedures; 5. Global strategic steering plan for the Ministry’s information systems and for organization of the ADP system; 6. Forward-looking management of human resources and establishment of training plan; 7. Developing an internal performance evaluation system; 8. Improvement and optimization of working conditions; 9. Communication plan; 10. Adapting the styles of management. The need for these reforms led the Administration of Customs and Indirect Taxation, as a Directorate of the Ministry, to adopt them and include them in its action plan. A study was conducted to that end. It diagnosed the following seven strategic areas on the basis of which a general programme was prepared.
To carry out this programme successfully and to ensure that it is implemented in accordance with the commitments undertaken by each section of the Directorate General, a Programmes and Evaluation Section was set up whose main task is to monitor and manage a system for programming and evaluating the administration. This system has two pillars : a planning pillar and an evaluation pillar. 1. Planning Pillar For the seven areas of reform mentioned above, plans setting out the actions and tasks of each section were prepared and approved by the Management Committee comprising Directors and Deputy Directors from Headquarters. For each activity or task chosen, the plan gives the start and finishing date and name the officer in charge (see action plan model enclosed). 2. Evaluation Pillar Once the Action Plan was defined, a very simple monitoring mechanism was put in place. It consists of sending the section heads a monthly table in which they mark a score for their action’s progress (see enclosed model). Once the tables are completed by the relevant section heads, they are returned to the Planning and Evaluation Service which studies the results. Evaluation is the responsibility of the services initiating the action. The planning and evaluation pillars are managed using software installed in a PC. INFORMATION AND TRAINING (Czech Republic) In preparation for the Czech Republic’s Membership of the European Union the main priority is the establishment of efficient Customs Information System (CIS) And Law Enforcement System (LES). Having been under development for the past 6 years the CIS and LES now incorporates the automatic processing of all basic procedures in all Customs and Law Enforcement offices, Daily Data Transfer for central processing via a satellite and a quick distribution of the integrated tariffs and crime solution through its communication system. Another issue which is important within the procedure of the modernization was the modification of the training system to reflect the changing needs of the Czech Customs and Law Enforcement Administration. The change was successfully implemented and produced very positive results. The scheme of the new training system is shown below : CUSTOMS & LAW ENFORCEMENT TRAINING SERVICES |
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