TIOL-DDT 1678 · Wednesday, 24 August 2011 · story 4 of 5

Globally Networked Customs (GNC)

THE WCO is to have its 8 th meeting on Globally Networked Customs (GNC) from September 5 to 7. Why GNC? Today, Customs Administrations worldwide have more than 100 different documents and 100 different types of equal data sets. Imagine: 1 document worldwide, covering import and export, 1 data set, 1 single access point for trade to introduce their declarations. This would be a tremendous saving in costs for both Trade and Customs. This would be the ultimate facilitation.

The Vision: A Globally Networked Customs (GNC) is an inclusive, interconnected Customs to Customs information-sharing system to support and improve the functioning of the international trading system, national economic performance, and the protection of society and fiscal management. A GNC will reduce the compliance burden for legitimate traders, and enhance enforcement through the sharing of information and intelligence.

The position today :

Borders are often invisible in commercial transactions

++ Purchase order is sent to a supplier in another country

++ Supplier prepares documents to send the shipment:

- invoice

- packing list

- bill of lading

- certificate of origin

- export declaration

++ Carrier prepares a cargo control document (manifest/waybill)

++ Carrier "forwards" that document, along with shipper information, to the importer or customs broker

++ The requirements for cargo security have changed the way we look at cargo information

This still isn't sufficient in many countries for release/entry to occur; additional information required from the importer includes:

++ Tariff classification;

++ Applicable tariff treatment;

++ Rate of duty;

++ Value for duty;

++ Value for tax;

++ Tax payable;

++ Excise tax;

++ Excise duty; and

++ Anti-dumping duty.

Some problems with this are:

++ Country of origin not shown

++ Additional charges not shown

++ Goods poorly described

++ Merchandise not properly marked

++ Missing permits, certificates

++ Incomplete transportation documents

All these difficulties will be history once GNC is in place.