Customs in the 21st Century - A WCO Update

The year 2009 ushered in a host of changes in the world of

Customs. The United States has a new President, who in turn has

appointed a new Secretary of Homeland Security. Additionally, U.S.

Customs and Border Protection (CBP) Commissioner W. Ralph Basham

has announced he will be retiring on February 28, 2009. His

successor has yet to be named.

There is much discussion around the water cooler these days on

what the trade will see with respect to Customs' strategy under

a new commissioner and with the new administration over the next

four years. While we won't get into that debate in this

memorandum, we will take a look beyond our borders and consider the

direction of customs administrations at a more global level.

The new year not only brought a new U.S. administration, it also

brought a new Secretary General for the World Customs Organization

(WCO). Kunio Mikuriya of Japan assumed his new position on January

1, 2009, following a seven-year term as Deputy Secretary General of

the organization.

The WCO, established in 1952 as the Customs Co-operation Council

(CCC), is an independent intergovernmental body with the mission to

enhance the effectiveness and efficiency of Customs

administrations. The WCO represents 174 Customs administrations

across the globe that collectively process approximately 98 percent

of world trade.

Many in the trade community are familiar with the WCO in the

context of its development of the SAFE Framework of Standards to

Secure and Facilitate Global Trade (SAFE Framework). CBP's

Customs-Trade Partnership Against Terrorism (C-TPAT) was a key

baseline for this global initiative and much discussion has taken

place regarding the goal of mutual recognition for trusted traders.

Trade security is only one piece of the customs equation,

however.

In June 2008, the WCO Consulate drafted "Customs in the

21st Century, Enhancing Growth and Development through

Trade Facilitation and Border Security." The document resulted

from an understanding among leaders of the world's customs

administrations that a new strategic perspective was needed in the

21st century. The challenges faced by customs

administrations were many, including globalization of business and

trade, complex new governance rules, international terrorism,

environmental protection and poverty reduction. Responsibilities

relating to the international movement of goods have broadened

– and will continue to do so – from the

traditional role of collection of duties and taxes...