DID YOU KNOW IT?

Among the foreign trade operators who work side by side with the customs services of the world, there are Customs Brokers (or Customs Agents), qualified professionals who, on behalf of importers and exporters, manage the processing of customs clearances before the Customs Services.

However, these qualified operators, whose competent performance is “essential” for a correct and smooth processing of customs clearances, are not uniformly covered by the various national legislations, so the WCO, in the exercise of its powers of harmonization and technical advice, decided to carry out a Study on Customs Brokers. The purpose of this study is to provide a clear understanding of the practices related to the role played by these professionals, including institutional frameworks, forms of action, responsibilities and regulatory requirements for the granting of licenses (registration).

To learn more about this topic, we invite you to read the book: “The World Customs Organization. Past, Present and Future”, by Dr. Héctor H. Juárez Allende, which you can purchase at any of the following links:

Springer: https://www.springer.com/gp/book/9783030852955

Amazon : https://www.amazon.com/World-Customs-Organization-Present-Professionals/dp/3030852954

The six WCO Regions are defined and delimited as follows:

• Middle East and North Africa, with 18 Members representing 10% of the WCO membership.
• West and Central Africa, with 23 Members representing 13% of the WCO membership.
• South and East Africa, with 24 Members representing 13% of the WCO membership.
  
• South America, North America, Central America and the Caribbean, with 31 Members representing 17% of the WCO membership.
• Europe, with 51 Members representing 28% of the WCO membership.
  
• Far East, South and Southeast Asia, Australasia and Pacific Islands, with 33 Members representing 18% of the WCO membership.

To learn more about this topic, we invite you to read the book: “The World Customs Organization. Past, Present and Future”, by Dr. Héctor H. Juárez Allende, which you can purchase at any of the following links:

Chile: https://rb.gy/ql67nz

México: https://rb.gy/ubfmpv

España: https://rb.gy/5uzmwl

Amazon: https://cutt.ly/gx20vBw

Commercial customs fraud (illicit customs offenses) is not only a concern for developing countries, it also affects developed countries. Perpetrators take advantage of every opportunity in international trade flows to run a variety of fraudulent schemes, causing significant damage not only in the form of lost government revenue, or in affecting the security of their populations, but also inhibiting the economic competitiveness of law-abiding traders.

There are many actions involved in the role of customs enforcement teams, namely: combating counterfeiting and commercial fraud, smuggling of drugs and precursor chemicals, smuggling of highly taxed goods (such as cigarettes, alcohol and spirits), electronic crimes, wildlife trafficking, smuggling of weapons, nuclear materials, ozone depleting substances, toxic waste, weapons of mass destruction, trafficking of cultural property, just to mention a few.

In addition, it is suspected that some aspects of commercial fraud in Customs, in particular, the overvaluation of goods, have been linked to money laundering. Such illegal capital outflows could provide criminal groups with funds to fuel other criminal activities, such as the purchase/sale of weapons, drug smuggling, etc.

To effectively prevent and combat commercial fraud, Customs must act together, employing a collaborative, multi-faceted and holistic strategic approach, including the development of capabilities and international cooperation.

To learn more about this topic, we invite you to read the book: “The World Customs Organization. Past, Present and Future”, by Dr. Héctor H. Juárez Allende, which you can purchase at any of the following links:

Chile: https://rb.gy/ql67nz

México: https://rb.gy/ubfmpv

España: https://rb.gy/5uzmwl

Amazon: https://cutt.ly/gx20vBw

The growth of Cross Border E-Commerce has overwhelmed the usual operations of world foreign trade, generating profound challenges for customs, and enormous opportunities for operators in the global economy.

This ever-expanding commercial environment is receiving a rapid, comprehensive and accurate response from the World Customs Organization, which in just two years, went from forming a Working Group on e-commerce to the approval of a consensus guide, prepared with contributions from the public sector and the main players in the private sector: freight forwarding companies, commercial platforms, financial intermediaries, service providers and universities, among others.

In the book you will find everything related to this challenge: its delimitation, the causes of its explosion, the modalities of contracting, the means of transport (mail and courier) and, above all, the answers and best practices for customs.

To learn more about this topic, we invite you to read the book: “The World Customs Organization. Past, Present and Future”, by Dr. Héctor H. Juárez Allende, which you can purchase at any of the following links:

Chile: https://rb.gy/ql67nz

México: https://rb.gy/ubfmpv

España: https://rb.gy/5uzmwl

Amazon: https://cutt.ly/gx20vBw

The International Network of Customs Universities (INCU) is an international non-profit organization with more than 200 members and affiliates.

It was created to promote the academic quality of the customs professions, generate scientific research and increase public awareness of customs and foreign trade issues.

To learn more about this topic, we invite you to read the book: “The World Customs Organization. Past, Present and Future”, by Dr. Héctor H. Juárez Allende, which you can purchase at any of the following links:

Chile: https://rb.gy/ql67nz

México: https://rb.gy/ubfmpv

España: https://rb.gy/5uzmwl

Amazon: https://cutt.ly/gx20vBw

In order to fulfill its mission, the WCO works in close cooperation with other international organizations, private sector entities and academic institutions.

Among them we can name the following: United Nations (UN), United Nations Educational, Scientific and Cultural Organization (UNESCO), World Health Organization (WHO), World Trade Organization (WTO), Commonwealth Secretariat, International Federation of Red Cross Societies (IFRC), INTERPOL, International Federation of Freight Forwarders Associations (FIATA), Financial Action Task Force (FATF), Global Facilitation Partnership (GFP), among many others.

The WCO represents and concentrates the interests of the international customs community, which is why this topic is the subject of special consideration in the development of the book: “The World Customs Organization. Past, Present and Future”, by Dr. Héctor H. Juárez Allende.

To learn more about this topic, we invite you to read the book: “The World Customs Organization. Past, Present and Future”, by Dr. Héctor H. Juárez Allende, which you can purchase at any of the following links:

Chile: https://rb.gy/ql67nz

México: https://rb.gy/ubfmpv

España: https://rb.gy/5uzmwl

Amazon: https://cutt.ly/gx20vBw

In order to meet specific and precise objectives, the WCO creates Working Groups (face-to-face, virtual and mixed) made up of experts in the subject to be investigated, for the purpose of studying the problematic issue and the elaboration of alternative proposals for solutions.

Examples include: the Working Group on Trade Facilitation, the SAFE Working Group, the Working Group for the New Revision of the Kyoto Convention, the Working Group on the Future of Customs, among many others.

These groups are not only made up of customs officials; many of these groups have the participation of the private sector and the academic sector.

To learn more about this topic, we invite you to read the book: “The World Customs Organization. Past, Present and Future”, by Dr. Héctor H. Juárez Allende, which you can purchase at any of the following links:

Chile: https://rb.gy/ql67nz

México: https://rb.gy/ubfmpv

España: https://rb.gy/5uzmwl

Amazon: https://cutt.ly/gx20vBw

The exponential growth of world trade and the changes in the dynamics of the international logistics chain have created new demands and perspectives on the role of Customs and its relationship with the private sector.

Within this framework, the “Private Sector Consultative Group” (PSCG) was created in June 2005 to inform and advise WCO Authorities on Customs and International Trade issues from the perspective of the private sector.

It currently has 27 members and, during these 16 years of operation, has developed an excellent work and generated contributions to the Customs community on: (i) the focus on the implementation of the Trade Facilitation Agreement; (ii) the development of a Framework of Standards for cross-border e-commerce; (iii) the OAS program; (iv) the implementation of the SAFE Program; and (v) the development of the Strategic Plans by contributing its vision on global financial and trade trends, among many others.

To learn more about this topic, we invite you to read the book: “The World Customs Organization. Past, Present and Future”, by Dr. Héctor H. Juárez Allende, which you can purchase at any of the following links:

Chile: https://rb.gy/ql67nz

México: https://rb.gy/ubfmpv

España: https://rb.gy/5uzmwl

Amazon: https://cutt.ly/gx20vBw

In order to offer Customs a practical and dynamic instrument for measuring its performance, progress was made in the development of a basic set of indicators that allow a quick evaluation of the level of evolutionary development of the institution in the search for excellence in Customs management.

In Annex IV of the book “The World Customs Organization. Past, Present and Future”, you will find this valuable “Institutional Self-Evaluation Template” that allows you to determine – in a very practical and quick way – the level of evolutionary development of a Customs Office.

The Template contains the four main areas of work covered by the WCO: (i) Trade Facilitation and Security; (ii) Revenue Collection; (iii) Protection of Society; and (iv) Institutional and Human Resources Development. These four core elements in turn branch out into 20 indicators, which are ultimately those that mark the degree of excellence of the Customs Office.

To learn more about this topic, we invite you to read the book: “The World Customs Organization. Past, Present and Future”, by Dr. Héctor H. Juárez Allende, which you can purchase at any of the following links:

Chile: https://rb.gy/ql67nz

México: https://rb.gy/ubfmpv

España: https://rb.gy/5uzmwl

Amazon: https://cutt.ly/gx20vBw

Since 2012, the WCO publishes an annual “Report on Illicit Trade in Goods”, which provides valuable data on customs seizures and provides an analysis of trends and patterns in the smuggling of drugs, precursor chemicals, tobacco, trademark counterfeiting, weapons, ammunition, explosives, endangered animals, works of art, among many others.

To learn more about this topic, we invite you to read the book: “The World Customs Organization. Past, Present and Future”, by Dr. Héctor H. Juárez Allende, which you can purchase at any of the following links:

Chile: https://rb.gy/ql67nz

México: https://rb.gy/ubfmpv

España: https://rb.gy/5uzmwl

Amazon: https://cutt.ly/gx20vBw

One of the most difficult problems to solve today is the disastrous consequences of environmental crime. Our planet is suffering from air, water and land pollution, the extinction of wildlife and the depletion of natural resources.

The WCO has signed a number of treaties to combat these environmental crimes. These include Multilateral Environmental Agreements (MEAs) with provisions related to international trade, such as the Convention on Trade in Endangered Species of Wild Fauna and Flora (CITES); the Montreal Protocol on Substances that Deplete the Ozone Layer (ODS); the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal; among others.

To learn more about this topic, we invite you to read the book: “The World Customs Organization. Past, Present and Future”, by Dr. Héctor H. Juárez Allende, which you can purchase at any of the following links:

Chile: https://rb.gy/ql67nz

México: https://rb.gy/ubfmpv

España: https://rb.gy/5uzmwl

Amazon: https://cutt.ly/gx20vBw

Customs tax revenues, which were once the main source of revenue for all countries in the world, have gradually been displaced by the collection of internal taxes as the main source of revenue for the fiscal coffers, although they maintain a very important share in the tax revenue of certain groups of countries.

In his book “The World Customs Organization. Past, present and future”, Dr. Héctor H. Juárez Allende, tells us about the importance of customs tax collection today (you will be surprised by the percentages) as well as the problems that threaten it (smuggling of highly taxed goods, undervaluation, misclassification, misuse of country of origin and preferential duties, among others) and how to combat them.

To learn more about this topic, we invite you to read the book: “The World Customs Organization. Past, Present and Future”, by Dr. Héctor H. Juárez Allende, which you can purchase at any of the following links:

Chile: https://rb.gy/ql67nz

México: https://rb.gy/ubfmpv

España: https://rb.gy/5uzmwl

Amazon: https://cutt.ly/gx20vBw

Culture is a fundamental element in the identity of nations. It would be inconceivable to have a community where there is no vestige of any representation of the being, of the past (or present) life that identifies the place or the people who are part of what is known as society.

In 1972, UNESCO, in its Convention “On the Means of Prohibiting and Preventing the Illicit Import, Export and Transfer of Ownership of Cultural Property”, generated an extraordinary global turnaround. It clarified the concepts and adopted the expression “Cultural Heritage” to refer to the property that for each State, based on religious or secular motives, has archaeological, prehistoric, literary, artistic or scientific value.

Of particular relevance is Article 3 of the UNESCO Convention, which establishes that the import, export or transfer of ownership of cultural property carried out contrary to the provisions of the Convention is illicit.

To counteract this problem, the WCO seeks to generate cooperation and partnership actions with other international and national organizations, using a variety of tools.

To learn more about this topic, we invite you to read the book: “The World Customs Organization. Past, Present and Future”, by Dr. Héctor H. Juárez Allende, which you can purchase at any of the following links:

Chile: https://rb.gy/ql67nz

México: https://rb.gy/ubfmpv

España: https://rb.gy/5uzmwl

Amazon: https://cutt.ly/gx20vBw

The proliferation of counterfeit goods generates a substantial loss of resources for governments, damages markets for legitimate products, is responsible for the loss of business revenue and consequent job losses, and inhibits creativity and the development of technology.

More importantly, because the quality of counterfeit goods is generally inferior to the originals, they pose a threat to public safety.

To combat this problem, the WCO has adopted a strategy based on increased cooperation with right holders to raise awareness and strengthen detection capacity through screening techniques.
To learn more about this topic, we invite you to read the book: “The World Customs Organization. Past, Present and Future”, by Dr. Héctor H. Juárez Allende, which you can purchase at any of the following links:

Chile: https://rb.gy/ql67nz

México: https://rb.gy/ubfmpv

España: https://rb.gy/5uzmwl

Amazon: https://cutt.ly/gx20vBw

In 2008, the WCO Council approved the document “Customs in the 21st Century”, which sets out the strategic vision of Customs for the new century. The document comprises ten thematic blocks, of which Globally Networked Customs (GNC) is the first.

To ensure the success of GNC, a Working Group was formed to conduct a comprehensive analysis of the possibilities for streamlining, harmonizing and standardizing the secure and efficient exchange of information among WCO members.

To learn more about this topic, we invite you to read the book: “The World Customs Organization. Past, Present and Future”, by Dr. Héctor H. Juárez Allende, which you can purchase at any of the following links:

Chile: https://rb.gy/ql67nz

México: https://rb.gy/ubfmpv

España: https://rb.gy/5uzmwl

Amazon: https://cutt.ly/gx20vBw

Technological innovations are also being exploited by criminals who take advantage of the convenience and anonymity offered by modern technologies to commit a wide range of criminal activities. Cybercrime is one of the fastest growing areas of crime, and Customs is not exempt from its dangers.

To combat and neutralize its threat, the WCO has created a Group of Experts who since 2001 have been working on the development of preventive shields, and on the development of operational aspects linked to detection, suppression and evidence gathering techniques.

To learn more about this topic, we invite you to read the book: “The World Customs Organization. Past, Present and Future”, by Dr. Héctor H. Juárez Allende, which you can purchase at any of the following links:

Chile: https://rb.gy/ql67nz

México: https://rb.gy/ubfmpv

España: https://rb.gy/5uzmwl

Amazon: https://cutt.ly/gx20vBw

The development of new technologies has generated a paradigm shift in the control of customs operations, extending surveillance and inspection actions to all links in the logistics chain, which are approached with a comprehensive and systemic vision.

There is no longer a staggered vision (importing country / exporting country), but rather an attempt is made to control and ensure the entire process, from the exporter’s factory to the importer’s warehouse.

For its understanding, we use the “Systemic Method”, a powerful tool that allows us to analyze operations from beginning to end (“end to end”), detecting the different components of the logistics chain, the relationships between each of them, the environment that contains them and their operating mechanism.

To learn more about this topic, we invite you to read the book: “The World Customs Organization. Past, Present and Future”, by Dr. Héctor H. Juárez Allende, which you can purchase at any of the following links:

Chile: https://rb.gy/ql67nz

México: https://rb.gy/ubfmpv

España: https://rb.gy/5uzmwl

Amazon: https://cutt.ly/gx20vBw

In 2017, during the meetings held by the Revised Kyoto Convention Management Committee (RKC / MC), the need for a “comprehensive” revision of the RKC was discussed and unanimously approved.

This “comprehensive” (integral) revision covers both the structure and the content of the Convention, that is, its Main Body, its General Annex and its Annexes and Specific Guidelines.

Aware that the RKC is one of the WCO’s flagship Conventions, efforts are being made to incorporate the latest developments in the field, such as: the use of information technologies, the importance of multilateral agreements in the coordination of actions, the formation of a global customs network, the importance of strengthening (ensuring) the traceability of logistic chains of goods, electronic declarations and their advance to the country of destination, data standardization, interoperability and interconnectivity of computer systems, electronic signatures, the use of “big data”, “blockchain” and artificial intelligence, Cross Border Electronic Commerce, just to mention some of the points under treatment.

To learn more about this topic, we invite you to read the book: “The World Customs Organization. Past, Present and Future”, by Dr. Héctor H. Juárez Allende, which you can purchase at any of the following links:

Chile: https://rb.gy/ql67nz

México: https://rb.gy/ubfmpv

España: https://rb.gy/5uzmwl

Amazon: https://cutt.ly/gx20vBw

Initially, drones were used for recreational purposes, then for military purposes, and nowadays, for multiple purposes, among which commercial ones stand out.

From the customs perspective, this issue is analyzed from a double point of view: (i) as a new means of transport (remote-controlled aircraft), which, just as it transports goods licitly, can also transport drugs, prohibited goods or other contraband items, and (ii) also as a new instrument for border control.

To learn more about this topic, we invite you to read the book: “The World Customs Organization. Past, Present and Future”, by Dr. Héctor H. Juárez Allende, which you can purchase at any of the following links:

Chile: https://rb.gy/ql67nz

México: https://rb.gy/ubfmpv

España: https://rb.gy/5uzmwl

Amazon: https://cutt.ly/gx20vBw

Institutions are a reflection of their human resources: the more qualified their staff, the better the performance of the agency.

The implementation of a continuous (or permanent) learning culture implies the visualization of the training and development of personnel at each level within the Customs hierarchy and at each step along a career path.

This requires a facilitating and motivating institutional environment, with an agile organizational model that promotes and rewards training actions through their progress in the administrative career.

In addition to specific technical knowledge in some area of performance (classification, valuation, tax assessment, etc.), it is essential that customs officials acquire a holistic view of their actions, projecting their work as an integral part of the system that makes up global foreign trade. Understanding the whole will enable them to acquire skills in the parts.

To learn more about this topic, we invite you to read the book: “The World Customs Organization. Past, Present and Future”, by Dr. Héctor H. Juárez Allende, which you can purchase at any of the following links:

Chile: https://rb.gy/ql67nz

México: https://rb.gy/ubfmpv

España: https://rb.gy/5uzmwl

Amazon: https://cutt.ly/gx20vBw

The “Blockchain” is a concept that poses a huge revolution, not only applicable to the economy or finance (“cryptocurrencies”), but can be used in other areas, to give security and certainty to a succession of transactions.

Basically, the “Blockchain” is a recorded transaction that is added to a previous transaction to form a chain. Each of these blocks, once complete, is sealed and encrypted, so that, if a transaction is to be modified, the approval of all those involved in the blockchain is required. This configuration gives the system enormous security over transactions and rapid distribution of the information involved.

Blockchain technology can have a strong impact on customs processes in which (i) various actors (carriers, freight forwarders, customs brokers, warehousemen, importers, etc.) intervene successively, and (ii) security for their transactions (unalterable affidavits) is required.

To learn more about this topic, we invite you to read the book: “The World Customs Organization. Past, Present and Future”, by Dr. Héctor H. Juárez Allende, which you can purchase at any of the following links:

Chile: https://rb.gy/ql67nz

México: https://rb.gy/ubfmpv

España: https://rb.gy/5uzmwl

Amazon: https://cutt.ly/gx20vBw

We can define the figure of the Qualified (or Authorized, or Reliable) Economic Operator as a “special qualification” granted to subjects operating in foreign trade such as manufacturers, importers, exporters, shippers, carriers, intermediaries, port, airport or terminal managers, integrated transport operators, warehouse operators, etc., based on various criteria, such as their good record of compliance with customs regulations, a demonstrated commitment to the security of the logistics chain and a satisfactory system for the management of their commercial records.

This figure has its origin in the Revised Kyoto Convention, which in its General Annex, Chapter 3, Directives concerning customs clearance and other customs formalities, Part 7: Special procedures for authorized persons, establishes a series of special or “fast” procedural guidelines, which require little intervention by Customs for the clearance of goods for those operators who import or export goods on a regular basis, clarifying that these procedures are not mandatory because they are designed only for those who meet the necessary requirements to be authorized.

To learn more about this topic, we invite you to read the book: “The World Customs Organization. Past, Present and Future”, by Dr. Héctor H. Juárez Allende, which you can purchase at any of the following links:

Chile: https://rb.gy/ql67nz

México: https://rb.gy/ubfmpv

España: https://rb.gy/5uzmwl

Amazon: https://cutt.ly/gx20vBw

In general terms, trade in intangible goods refers to the transfer of products (e.g., software, music, films, videos, books, etc.) in electronic or digital form, through the use of information and communication technologies (ICTs).

This commercial modality, which a few years ago was incipient and only generated a few transactions, has become a powerful player in world trade, displacing the large multinational factories of physical goods.

One of the points currently identified for discussion is the WTO Ministerial Decision of December 19, 2015, regarding the Electronic Commerce Program (always promoted by the USA), which establishes that WTO Members will maintain the current practice of NOT imposing customs duties (or any other taxes) on electronic transmissions.

This issue once again raises the debate as to whether customs should only deal with “tangibles” or whether it can venture into “intangibles”, for which purpose the concept of merchandise and all that this implies would have to be redefined.
To learn more about this topic, we invite you to read the book: “The World Customs Organization. Past, Present and Future”, by Dr. Héctor H. Juárez Allende, which you can purchase at any of the following links:

Chile: https://rb.gy/ql67nz

México: https://rb.gy/ubfmpv

España: https://rb.gy/5uzmwl

Amazon: https://cutt.ly/gx20vBw

Those who have participated in regional integration processes or in the drafting of international free trade agreements with customs content know from their own experience the superior importance of this linguistic tool, which connotes and denotes with universal scope the specific terms used in customs jargon.

This facilitates international negotiations and paves the way for a successful outcome.

Likewise, those who participate in the task of legislating in national customs matters are aware of the valuable contribution of this tool as a guide and reference when specifying the content of the internal rules that must necessarily be written in a natural language to be understood by the whole community, but which, due to its intrinsic character or property, is loaded with the ambiguity and vagueness that characterizes ordinary language, and that, unlike formal languages (such as logic or mathematics), cannot offer such a degree of precision in its concepts, so that a set of universally agreed definitions is a fundamental tool when legislating.

To learn more about this topic, we invite you to read the book: “The World Customs Organization. Past, Present and Future”, by Dr. Héctor H. Juárez Allende, which you can purchase at any of the following links:

Chile: https://rb.gy/ql67nz

México: https://rb.gy/ubfmpv

España: https://rb.gy/5uzmwl

Amazon: https://cutt.ly/gx20vBw