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World Customs Organization

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World Customs Organization
AbbreviationWCO
Formation26 January 1953; 71 years ago (1953-01-26)[1]
TypeIntergovernmental organization
Location
Membership
186 customs administrations
Official language
English and French
Secretary General
Ian Saunders (January 2024 - present)
Websitewww.wcoomd.org
Headquarters building

The World Customs Organization (WCO) is an intergovernmental organization headquartered in Brussels, Belgium. The WCO works on customs-related matters including the development of international conventions, instruments, and tools on topics such as commodity classification, valuation, rules of origin, collection of customs revenue, supply chain security, international trade facilitation, customs enforcement activities, combating counterfeiting in support of intellectual property rights (IPR), illegal drug enforcement, combating counterfeiting of medicinal drugs,[2] illegal weapons trading, integrity promotion, and delivering sustainable capacity building to assist with customs reforms and modernization. The WCO maintains the international Harmonized System (HS) goods nomenclature, and administers the technical aspects of the World Trade Organization (WTO) Agreements on Customs Valuation and Rules of Origin.[3][4] Additionally, the WCO oversees the implementation of new technologies, artificial intelligence, to improve the efficiency of customs operations. Furthermore, the WCO is involved in addressing emerging issues, such as the digitalization of customs systems.[5]

History

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On 23 August 1947 the Committee for European Economic Cooperation created a European Customs Union Study Group (ECUSG) to examine economic and technical issues of inter-European Customs Union concerning the rules of the General Agreement on Tariffs and Trade (GATT). In total, six ECUSG meetings were held in four years from November 1947 to June 1950.[6] This work of ECUSG led to the adoption in 1950 of the Convention establishing the Customs Co-operation Council (CCC), which was signed in Brussels. On 26 January 1953[1] the CCC's inaugural session took place with the participation of 17 founding members. CCC membership subsequently expanded to cover all regions of the globe. In 1994, the organization adopted its current name, the World Customs Organization. Today, WCO members are responsible for customs controls in 186 countries representing more than 98 percent of all international trade.[1]

One of the major turning points in the WCO’s history was its expansion beyond Europe, which allowed it to become a truly global organization. This expansion was fueled by the recognition of the need for standardized customs procedures across different regions of the world, particularly in the post-colonial period when many new nations were emerging. The WCO played a crucial role in helping these nations establish efficient customs administrations.[7]

Vision and objectives

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The WCO is internationally acknowledged as the global centre of customs expertise and plays a leading role in the discussion, development, promotion and implementation of modern customs systems and procedures. Moreover, the WCO has been instrumental in assisting over 180 countries in modernizing their customs procedures through various initiatives such as the Revised Kyoto Convention and the Harmonized System.[5] It is responsive to the needs of its members and its strategic environment, and its instruments and best-practice approaches are recognized as the basis for sound customs administration throughout the world.

The WCO's primary objective is to enhance the efficiency effectiveness other members customs administrations, thereby assisting them to contribute successfully to national development goals, particularly revenue collection, national security, trade facilitation, community protection, and collection of trade statistics.

Instruments

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In order to achieve its objectives, the WCO has adopted a number of customs instruments, including but not limited to the following:

  1. The International Convention on the Harmonized Commodity Description and Coding System (HS Convention) was adopted in 1983 and came into force in 1988. The HS multipurpose goods nomenclature is used as the basis for customs tariffs and for the compilation of international trade statistics. It comprises about 5,000 commodity groups, each identified by a six digit code arranged in a legal and logical structure with well-defined rules to achieve uniform classification. The HS is also used for many other purposes involving trade policy, rules of origin, monitoring of controlled goods, internal taxes, freight tariffs, transport statistics, quota controls, price monitoring, compilation of national accounts, and economic research and analysis.
  2. The International Convention on the Simplification and Harmonization of Customs procedures (revised Kyoto Convention or RKC) was originally adopted in 1974 and was subsequently revised in 1999; the revised Kyoto Convention came into force in 2006. The RKC comprises several key governing principles: transparency and predictability of customs controls; standardization and simplification of the goods declaration and supporting documents; simplified procedures for authorized persons; maximum use of information technology; minimum necessary customs control to ensure compliance with regulations; use of risk management and audit based controls; coordinated interventions with other border agencies; and a partnership with the trade. It promotes trade facilitation and effective controls through its legal provisions that detail the application of simple yet efficient procedures and also contains new and obligatory rules for its application. The WCO revised Kyoto Convention is sometimes confused with the Kyoto Protocol, which is a protocol to the United Nations Framework Convention on Climate Change (UNFCCC or FCCC).
  3. ATA Convention and the Convention on Temporary Admission (Istanbul Convention). Both the ATA Convention and the Istanbul Convention are WCO instruments governing temporary admission of goods. The ATA system, which is integral to both Conventions, allows the free movement of goods across frontiers and their temporary admission into a customs territory with relief from duties and taxes. The goods are covered by a single document known as the ATA carnet that is secured by an international guarantee system.
  4. The Arusha Declaration on Customs Integrity was adopted in 1993 and revised in 2003. The Arusha Declaration is a non-binding instrument which provides a number of basic principles to promote integrity and combat corruption within customs administrations. Established in 1952, the WCO has introduced significant legal frameworks, including the SAFE Framework of Standards, aimed at simplifying customs procedures.[7]
  5. The SAFE Framework of Standards to Secure and Facilitate Global Trade was adopted in 2005. The SAFE Framework is a non-binding instrument that contains supply chain security and facilitation standards for goods being traded internationally, enables integrated supply chain management for all modes of transport, strengthens networking arrangements between customs administrations to improve their capability to detect high-risk consignments, promotes cooperation between customs and the business community through the Authorized Economic Operator (AEO) concept, and champions the seamless movement of goods through secure international trade supply chains.
  6. The Columbus Program is a customs capacity building program works to promote customs modernization and implementation of their standards to secure and facilitate world trade. In 2005, the WCO adopted the Framework of Standards to Secure and Facilitate Global Trade, an international customs instrument containing 17 standards that promotes security and facilitation of the international supply chain. Because of its complexity, the WCO launched a capacity building program called the Columbus Programme which focuses on needs assessments for WCO Members using the WCO Diagnostic Framework tool. The WCO defines capacity building as "activities which strengthen the knowledge, abilities, skills and behaviour of individuals and improve institutional structures and processes such that the organization can efficiently meet its mission and goals in a sustainable way.

Online tools

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The World Customs Organization (WCO) released a new online platform, WCO Trade Tools,[8] that encompasses the Harmonized System, preferential Rules of Origin and Valuation. It includes the 2002, 2007, 2012, 2017 and 2022 editions of the HS, around 400 Free Trade Agreements with their preferential Rules of Origin/ and Product Specific rules, and the set list of Valuation texts, including those of the Technical Committee on Customs Valuation.

Administration

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The WCO Secretariat is headed by a Secretary General, who is elected by the WCO membership to a five-year term. Ian Saunders from the United States was elected WCO Secretary General in June 2023 and took office on 1 January 2024. The WCO is governed by the council, which brings together all members of the organization once a year, in a meeting chaired by an elected chairperson. Additional strategic and management guidance is provided by the Policy and Finance committees. There are several other WCO committees, including the Harmonized System Committee, the Permanent Technical Committee, the Technical Committee on Customs Valuation, Technical Committee on Rules of Origin, the Capacity Building Committee, and the SAFE Working Group.

Under the leadership of recent Secretaries General, the WCO has increasingly embraced digital transformation in customs practices, focusing on the adoption of technology to streamline border processes. These initiatives, such as the implementation of artificial intelligence in customs operations, have placed the WCO at the forefront of modern customs administration, ensuring that its members are well-equipped to face the challenges of an increasingly interconnected global economy.[5]

Members

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Region Member Date Of Membership
South America, North America,

Central America and the Caribbean

Antigua and Barbuda 10/04/2017
Argentina 01/07/1968
Bahamas 16/08/1974
Barbados 07/01/1999
Belize 22/04/2008
Bermuda 01/07/1990
Bolivia 14/08/1997
Brazil 19/01/1981
Canada 12/10/1971
Chile 01/07/1966
Colombia 11/07/1993
Costa Rica 29/08/2001
Cuba 01/07/1988
Curaçao 11/07/1988
Dominican Republic 28/07/2004
Ecuador 16/12/1997
El Salvador 07/07/2005
Guatemala 22/02/1985
Guyana 29/07/1976
Haiti 31/01/1958
Honduras 08/12/2005
Jamaica 29/03/1963
Mexico 08/02/1988
Nicaragua 24/09/1998
Panama 08/03/1996
Paraguay 03/10/1969
Peru 27/01/1970
Saint Lucia 12/05/2005
Suriname 26/11/2018
Trinidad and Tobago 15/10/1973
United States 05/11/1970
Uruguay 16/09/1977
Venezuela 01/07/1996
Europe Albania 31/08/1992
Andorra 03/09/1998
Armenia 30/06/1992
Austria 21/01/1953
Azerbaijan 17/06/1992
Belarus 16/12/1993
Belgium 11/12/1952
Bosnia and Herzegovina 04/07/2008
Bulgaria 01/08/1973
Croatia 01/07/1993
Cyprus 31/08/1967
Czech Republic 01/01/1993
Denmark 19/10/1951
Estonia 18/06/1992
European Union*
Finland 27/01/1961
France 06/10/1952
Georgia 26/10/1993
Germany 04/11/1952
Greece 10/12/1951
Hungary 16/09/1968
Iceland 15/02/1971
Ireland 23/09/1952
Israel 23/05/1958
Italy 20/11/1952
Kazakhstan 30/06/1992
Kyrgyzstan 10/02/2000
Kosovo 25/01/2017
Latvia 22/06/1992
Lithuania 18/06/1992
Luxembourg 23/01/1953
Malta 06/07/1968
Moldova 28/10/1994
Montenegro 24/10/2006
Netherlands 23/01/1953
Norway 06/08/1951
North Macedonia 01/07/1994
Poland 17/07/1974
Portugal 26/01/1953
Romania 15/01/1969
Russian Federation 08/07/1991
Serbia 27/03/2001
Slovakia 01/01/1993
Slovenia 07/09/1992
Spain 13/07/1952
Sweden 17/10/1952
Switzerland 19/12/1952
Tajikistan 01/07/1997
Türkiye (Republic of) 06/06/1951
Turkmenistan 17/05/1993
Ukraine 26/06/1992
United Kingdom 12/09/1952
Uzbekistan 28/07/1992
East and Southern Africa Angola 26/09/1990
Botswana 25/08/1978
Burundi 20/10/1964
Comoros 01/07/1993
Djibouti 19/03/2008
Eritrea 08/08/1995
Eswatini 15/05/1981
Ethiopia 06/08/1973
Kenya 24/05/1965
Lesotho 02/08/1978
Madagascar 18/02/1964
Malawi 06/06/1966
Mauritius 29/03/1973
Mozambique 01/07/1987
Namibia 01/07/1992
Rwanda 03/03/1964
Seychelles 25/07/2000
Somalia 04/10/2012
South Africa 24/03/1964
South Sudan 18/07/2012
Tanzania 07/11/1964
Uganda 03/11/1964
Zambia 27/09/1978
Zimbabwe 19/03/1981
North of Africa, Near and Middle East Algeria 19/12/1966
Bahrain 18/04/2001
Egypt 26/10/1956
Iraq 06/06/1990
Jordan 01/01/1964
Kuwait 04/10/1993
Lebanon 20/05/1960
Libya 11/01/1983
Morocco 01/07/1968
Oman 11/09/2000
Palestine 24/03/2015
Qatar 04/05/1992
Saudi Arabia 08/05/1973
Sudan 08/06/1960
Syrian Arab Republic 19/11/1959
Tunisia 20/07/1966
United Arab Emirates 07/02/1979
Yemen 01/07/1993
West and Central Africa Benin 09/11/1998
Burkina Faso 16/09/1966
Cameroon 09/04/1965
Cape Verde 01/07/1992
Central African Republic 28/07/1986
Chad 16/02/2005
Congo (Republic of the) 02/09/1975
Côte d'Ivoire 02/09/1963
Democratic Republic of the Congo 26/07/1972
Equatorial Guinea 22/12/2021
Gabon 18/02/1965
Gambia 14/10/1987
Ghana 01/08/1968
Guinea 30/10/1991
Guinea-Bissau 19/08/2010
Liberia 07/01/1975
Mali 07/08/1987
Mauritania 02/10/1979
Niger 01/07/1981
Nigeria 21/08/1963
Sao Tome and Principe 23/09/2009
Senegal 10/03/1976
Sierra Leone 06/11/1975
Togo 12/02/1990
Far East, South and South East Asia,

Australasia and the Pacific Islands

Afghanistan (Islamic Republic of) 10/08/2004
Australia 05/01/1961
Bangladesh 01/07/1978
Bhutan 12/02/2002
Brunei Darussalam 01/07/1996
Cambodia 03/04/2001
China 18/07/1983
Fiji 01/07/1997
Hong Kong, China 01/07/1987
India 15/02/1971
Indonesia 30/04/1957
Iran (Islamic Republic of) 16/10/1959
Japan 15/06/1964
Korea (Republic of) 02/07/1968
Lao People’s Democratic Republic 16/01/2007
Macao, China 07/07/1993
Malaysia 30/06/1964
Maldives 08/09/1995
Mongolia 17/09/1991
Myanmar (The Republic of the Union of) 25/03/1991
Nepal 22/07/1986
New Zealand 16/05/1963
Pakistan 16/11/1955
Palau 02/02/2024
Papua New Guinea 18/03/2002
Philippines 01/10/1980
Solomon Islands 26/01/2023
Samoa 01/10/2001
Singapore 09/07/1975
Sri Lanka 29/05/1967
Thailand 04/02/1972
Timor-Leste 19/09/2003
Tonga 01/07/2005
Vanuatu 17/11/2009
Vietnam 01/07/1993

[9]

  • Status akin to WCO membership

References

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  1. ^ a b c "Organización Mundial de Aduanas OMA" [World Customs Organization WCO]. Chile Aduanas (Customs) (in Spanish). Retrieved 16 September 2021.
  2. ^ Gelbart, Hannah (16 September 2021). "On the trail of fake medicine smugglers". BBC News.
  3. ^ "La OMC y la Organización Mundial de Aduanas (OMA)" [The OMC and the World Customs Organization (WCO)]. WTO (in Spanish). Organización Mundial de Comercio. Retrieved 16 September 2021.
  4. ^ "Organización Mundial de Aduana (OMA) – Servicio Nacional de Aduana del Ecuador" (in Spanish). Retrieved 18 November 2020.
  5. ^ a b c Allende, J. (2022). World Customs Organization. Springer International Publishing.
  6. ^ Kormych, Borys (28 January 2018). "The European Customs Union Study Group: Drafting the EU Customs Law" (PDF). European Political and Law Discourse. 4 (6). ISSN 2336-5439.
  7. ^ a b Weerth, C. (2017). "The World Customs Organization: A history of 65 years of growth and its legal milestones". Customs Scientific Journal CUSTOMS. 7 (2): 17–24.
  8. ^ "World Customs Organization". www.wcoomd.org. Retrieved 24 March 2021.
  9. ^ "List of Members with Membership date" (PDF). World Customs Organization. Brussels, Belgium. 27 February 2024. Retrieved 6 May 2024.
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