Sixth ASEM Procedures Working Group (PWG) meeting

Brussels, 11 and 12 March 2002


 

Introduction

The Sixth meeting of the ASEM Procedures Working Group was held on 11 and 12 March 2002 in Brussels and was chaired by the European Commission. The meeting aimed to address Customs issues tackled by ASEM partners toward trade facilitation including issues pointed out at other ASEM meetings such as the 3rd ASEM Economic Ministers meeting, the AEBF VI meeting and SOMTI meetings including discussion on TFAP. The meeting was attended by representatives from Austria, Brunei Darussalam, China, Denmark, Finland, France, Germany, Indonesia, Ireland, Italy, Japan, Korea, Malaysia, the Netherlands, the Philippines, Portugal, Singapore, Sweden, Thailand, the United Kingdom, Vietnam and the European Commission. The list of participants is attached as Annex I.

Adoption of the Agenda

The attached agenda was adopted (Annex II).

Report on other ASEM meetings relating to customs since the 5th PWG

(1)             Thailand reported on the 2nd ASEM seminar on simplification and harmonization of the customs procedures held in Bangkok in April 2001. The objective of the seminar was to provide an opportunity to economic operators to present their ideas on trade facilitation in the field of customs and for both the customs and and business communities in ASEM regions to discuss the customs' role and possible ways of developing both parties cooperation towards trade facilitation. Eight groups of considerations for the 5th ASEM PWG were formulated covering 13 areas. The eight groups are the following : ASEM Trade Facilitation Action Plan (TFAP) on customs, trade facilitation agenda in WTO, Revised WCO Kyoto Convention, good governance, cooperative relationship between ASEM customs administrations and the business communities, simplification and harmonization of elements on customs clearance procedures, computerization and provision of one-stop service. The report is attached at Annex III.

(2)             Korea reported on the 5th ASEM Procedures Working group meeting held in Bangkok in April 2001. The meeting aimed to address the issues identified by the previous ASEM Customs Directors-General and Commissioners' meetings and issues of customs procedures in the ASEM TFAP. Korea summarised the key decisions taken at the 5th PWG. The summary is attached at Annex IV.

(3)             The European Commission reported on the WTO workshop on technical assistance in trade facilitation held in Geneva in May 2001. The workshop's objective was to provide a forum for an exchange of views among all relevant parties (donor and recipient countries, international and regional organisations) on the role of technical assistance and capacity building in trade facilitation. Main conclusions were importance of technical assistance in trade facilitation ("not an afterthought"), necessity of coordination between donors, necessity of political will and "ownership factor", necessity to ensure the sustainability of technical assistance, usefulness of "national trade facilitation body" and need of appropriate infrastructures. A summary of the report is attached at Annex V. The full report can be found on the WTO website (G/C/W/297 of 13 September 2001).

(4)             The European Commission reported on the ASEM seminar on trade facilitation issues in the WTO held in Kuala Lumpur in June 2001. The seminar's objectives were to improve understanding on the WTO's current work programme on trade facilitation and future prospects; to discuss the approach for enhanced implementation of the ASEM TFAP based on the agreed deliverables for 2000 - 2002; to exchange experience and benefits in simplification of trade facilitation procedures among ASEM partners; and to explore capacity building measures in trade facilitation for developing countries. The seminar succeeded in reducing some fears or misunderstandings about over-ambitious rule making. The report is attached at Annex VI.

(5)             Sweden reported on the 4th ASEM Directors General and Commissioners of customs meeting held in Stockholm in July 2001. The meeting's objectives were to respond to the ASEM Leader's agreement to deal with illicit drug trafficking and various forms of customs offences; to undertake facilitation and liberalisation measures relating to simplification and harmonisation of customs procedures; and to consider the development of closer co-operation in these areas among the customs administrations in Asia and Europe. A summary of the report is attached at Annex VII.

(6)             The European Commission reported on the 7th ASEM Senior Officials Meeting on Trade and Investment (SOMTI VII) held in Brussels in July 2001. Senior officials emphasised the importance of achieving substantive progress in the eight priority areas of the TFAP in order to reduce non-tariff barriers (NTBs) and transaction costs and promote trade opportunities between the two regions. They renewed their commitment to implement the edeliverablesf as set out in TFAP Goals 2000-2002 and as mandated by the ASEM Summit. ASEM partners reported to SOMTI on the measures they have taken to address the Generic Trade Barriers in the priority areas. The reports can be found at the following address : http://europa.eu.int/comm/external_relations/asem/other_activities/index_activities.htm. The SOMTI VII conclusions are attached at Annex VIII.

(7)             Vietnam reported on the 3rd ASEM Economic Ministers' Meeting held in Hanoi in September 2001. Ministers reviewed progress in the implementation of TFAP. They welcomed the achievements made in the different priority areas towards the realisation of TFAP goals 2000 - 2002. Ministers in particular noted the various seminars, such as the seminar on customs procedures, as activities which contributed to a better understanding between Asia and Europe. Ministers supported initiative to start working on paperless customs procedures within ASEM framework and to be reported to the next Ministerial Meeting. The full report is attached at Annex IX.

(8)             Singapore reported on the 6th Asia Europe Business Forum (AEBF VI) held in Singapore in October 2001. The AEBF supports the ASEM governments' initiatives on simplifying and harmonizing customs procedures to facilitate trade, and commends the governments on the efforts taken thus far. The Trade Work Group is in support of the initiatives, in particular parperless customs procedures, taken by the ASEM governments to address major generic trade barriers and urges all ASEM governments to adopt those initiatives soonest. The AEBF also recommends ASEM governments to minimize physical checks on goods at respective entry points. The Chairman's Statement together with the list of AEBF recommendations are attached at Annex X.

(9)             Malaysia reported on the 6th ASEM Enforcement Working Group (EWG) meeting held in Kuala Lumpur in February 2002. Among the main conclusions, it can be noted that the meeting agreed to endorse the cooperation projects proposed by RILO WE (Regional Intelligence Liaison Office - Western Europe) that is to support the Global Cigarette Analysis Project of the WCO, the CRASH Project (Co-operation of RILOs in the framework of ASEM to identify smuggling of Heroin) and Cigarette 2002 (Joint Project of RILO AP (RILO for the Asia Pacific region) and RILO WE). To facilitate the joint-project, the meeting took note of the importance of providing the information required by giving input through the WCO/CEN (Customs Enforcement Network), a country paper, and reply to the questionnaire which will be circulated. Concerning the cargo scanning machine the meeting agrees for the x-ray images to be collected from user administrations and to be included in the CEN database. In the context of risk management methods the meeting agreed with the need to benchmark not only amongst customs administrations but also with the private sector and to adopt technologies in use by the private sector (with the required modifications) for more effective enforcement tasks. Regarding the future work of the working group, the meeting agreed to organize a seminar to be held a day or two before the 7th ASEM EWG meeting so that the points raised in the seminar could be discussed. Finally, the meeting agreed to the proposal of an action plan by Malaysia. The members were urged to determine their priorities as to the deliverables proposed and to also include suggestions of other deliverables considered to be necessary. The members agreed to send their responses to Malaysia by end of April 2002. A summary of the meeting is attached at Annex XI. 

Update of the work undertaken within the APEC and ASEAN regions in the customs field

(10)         China reported on the 2nd meeting of the APEC Sub-Committee on Customs Procedures held in Shanghai in August 2001. The report is attached at Annex XII.

(11)         Brunei reported on the 9th meeting of the ASEAN Directors-General of Customs held in Makati City (Philippines) in July 2001 and on the ASEAN 8th meeting of the Experts Committee on Customs Matters held in Jakarta in January 2002. A summary of the two reports are attached respectively at Annex XIII and XIV.

Trade Facilitation Action Plan and application of WTO Agreements

(12)         Sweden made a presentation on the Virtual Customs House to explain the proposal they made at the 3rd ASEM Economic Ministers Meeting to start working on paperless customs procedures within the ASEM framework. As Ministers expect a report to be given at the 4th Economic Ministers Meeting which will be held in Denmark in September 2002, participants have agreed to include this issue in the next TFAP for the period 2002-2004 (see also item 15 below). The presentation emphasises the availability of a 24-hours, 7 days a week service for all relevant services for all target-groups as well as other interested parties with an interface suitable for all needs. A copy of the presentation is attached at Annex XV.

(13)         Denmark made a demonstration of a new fully computerised customs clearance system operational in Denmark for import of goods into the European Union. It was shown that with the new Danish electronic customs system the preparation of the customs clearance takes place already when the goods are ordered. Dynamic and fixed parameters ensure risk analysis management. The results show that 93 % of all declarations are received on-line or via EDI and thanks to the electronic declaration procedures will be faster for enterprises (73 % of shipments are released at the border) while an efficient control is ensured. Additional information will be sent by e-mail to all participants.

(14)         Japan, the Asian facilitator of Customs Procedures, presented a report on the progress made by the ASEM partners on the TFAP deliverables for the period 2000 - 2002, based on responses to a questionnaire and encouraged those partners which have not achieve deliverables to do so before ASEM IV. A copy of the report together with a matrix are attached respectively at Annex XVI and XVII.

(15)         The European Commission suggested that a proposal for new TFAP deliverables should be presented to SOMTI VIII which will be held in Jakarta in the very beginning of July 2002. The EC asked ASEM partners to provide their input in order to prepare this exercise. The meeting agreed that the objectives of the current deliverables which have not been reached will be taken again for TFAP deliverables 2002 - 2004. Japan indicated that it is ready to make a contribution on the preparation of new deliverables. The EC proposed to include "best practices for paperless customs procedures" as a new deliverable.

(16)         The European Commission made a presentation on the uniform application of the Customs Valuation Agreement. By this presentation the EC wished to share its experience in the implementation of this Agreement over many years and highlight the various advantages and benefits for customs authorities. A copy of the presentation is attached at Annex XVIII.

(17)         The European Commission gave a presentation on different customs aspects of the "Doha Development Agenda" adopted during the 4th WTO Ministerial Conference in November 2001. This New Round of negotiations will last only three years (until 31 December 2004) and follow the "single undertaking" principle.

Firm commitments have been made by WTO members to provide developing countries with technical assistance to ensure capacity building. With the constant lowering of customs duties, trade facilitation is considered as an increasingly important aspect. Although negotiations on trade facilitation will start after the 5th WTO Ministerial Conference scheduled for mid-2003, WTO already planned several working meetings in 2002. Work will focus on different GATT articles (V transit, VIII formalities, X transparency) to develop rules while at the same time providing technical assistance to developing countries. WTO members also agreed to launch comprehensive market access negotiations in order to reduce or eliminate tariff peaks, high tariffs, tariff escalation as well as non-tariff barriers.

The EC tries to promote trade facilitation as well through bilateral negotiations such as the current negotiations with Chile and Mercosur countries. Work done through bilateral agreements or in the multilateral context will have to be carried out in parallel to ensure coherence at regional level. Several elements in the customs field are considered essential aspects of trade facilitation, notably the use of a single administrative document or data message for customs declarations, computerisation, modern customs techniques such as risk analysis, simplified procedures and timely consultation with trade on legislative proposals and procedures. The EC also supports efforts at international level to hamonise data requirements on electronic customs declaration and the definition of electronic messages.

(18)         Japan provided a status report on the ASEM Customs Database  and the ASEM PWG Homepage (http://www.customs.go.jp/asem/asem.htm ). As proposed at the last PWG meeting, both websites have been redesigned, AEBF have been informed of the establishment of the database. The attached survey (Annex XIX) shows that the numbers of visitors to the two websites are relatively small compared with the number of visitors to the APEC Tariff Database. Although the ASEM partners agreed at the 5th PWG meeting to link their customs websites to the ASEM database, only a few linkages have been newly established. ASEM partners also agreed to provide the information necessary for updating and improving the database, some links however no longer exist or are incorrect. See the report on ASEM PWG Homepage and ASEM Customs database and the ASEM Customs Procedures Database Matrix, attached at Annex XX and XXI.

The European Commission explained that although the matrix shows that no specific address has been given for each Community customs procedures, the whole Community legislation (the Community Customs Code together with its implementing provisions) can be found on the website of the Directorate General for Taxation and Customs Union :   (http://europa.eu.int/comm/taxation_customs/index_en.htm).

Korea said that it appreciates the efforts made by Japan and that important progress has been achieved. It recognized that numbers of visitors are small and indicated that it will link its website to the Homepage and the Database. Korea asked Japan whether it is possible to change the address of both websites with the following domain name: www.asem.pwg and include information on tariff rates and legal text in the Database by providing link to each partnersf website.

UK mentioned the bad score appearing on the matrix explaining that it is in the process of improving its website and that it should be done by the middle of the year.

(19)         The European Commission gave a presentation on electronic customs. The European Commission together with EU Member States are currently working at establishing a common strategy on electronic customs at European level. Currently most Member States are developing their own computerised system but a common strategy has to be developed in order to ensure interoperability of all these systems. In order to progress towards electronic customs an important aspect will be to simplify and reduce the number of current customs procedures. A summary of the presentation is attached at Annex XXII. Finland announced that there will be a 2nd ASEM Seminar on e-commerce which will be held in Helsinki on 23 and 24 September 2002.

(20)         In the absence of a representative from AEBF, the European Commission made reference to the AEBF VI recommendation to encourage ASEM governments to minimize physical checks on goods at respective entry points. However, there were no specific comments on this issue.

(21)         The European Commission reported on the Informal meeting on Capacity Building and Technical Cooperation amongst ASEM partners in the field of customs which was held in the morning of the 11th March 2002 with the ASEM donor partners (Japan, Korea, EU Member States and the European Commission). The list of participants is attached at Annex XXIII. The EC presented a reflection document on guidelines on ASEM/TFAP technical cooperation in the field of customs and related-procedures. The reflection document is attached at Annex XXIV. ASEM donor partners discussed the document and shared the following views :

·      The ASEM process and dialogue ? and the Customs Procedures Working Group in particular ? has an important role to play in support of technical cooperation and capacity building in the customs field.

·      The ASEM PWG is an important forum where donors and recipients can identify and discuss the needs of the recipients and the possibilities offered by the donor countries. It would be helpful for recipients to develop their own individual road maps showing their plans and steps to reach their objectives in the customs field. This will also help donors to better target their assistances.

·      A distinction should be made between technical cooperation and capacity building. The importance of a strategic approach to capacity building through specific technical cooperation projects has been underlined. Adequate institutions and organisations are necessary foundations which are required for effective capacity building in a long term perspective.

·      The importance of having a specific time table for technical assistance and capacity building which should define clear objectives within a specific period; this timetable should be part of a long term strategic approach.

·      The importance of capacity building and technical cooperation in the framework of the WTO negotiations on trade facilitation as well as the importance of effective implementation of the Trade Facilitation Action Plan between ASEM partners.

·      To compile and circulate information about the requests and needs of the potential beneficiary ASEM partners as well as technical cooperation and capacity building actions organised or planned. The PWG should ensure that the practical way this information can be made available to all partners do not lead to duplication with similar type of activity in another fora (WCO, WTO, APEC, c). Moreover, ASEM PWG should also follow those initiatives in these fora for coordination       .

·      To seek to the extent possible to establish common position in the WCO as well as the WTO on aspects of capacity building and technical cooperation that have been examined in the framework of ASEM PWG.

·      To examine the enclosed reflection document within the PWG to be shared by partners as a useful practical reference to all partners in providing trade related technical assistance in the customs field.

Subsequently, donor partners presented the guidelines to the other partners. After discussion all ASEM partners considered the reflection document to be shared among themselves as a useful practical reference to all partners in providing trade related technical assistance in the customs field. All ASEM partners also agreed to report back at the 7th PWG meeting on activities carried out for technical cooperation in the field of customs.

Customs developments in the Community and with ASEM Asian partners

(22)         The European Commission provided an overview on the process of enlargement of the EU focusing on the implications for customs and on the external border controls. Some general information extracted from the EU website was distributed at the meeting and more information can be found on this website (http://europa.eu.int/comm/enlargement). A summary of the presentation is attached at Annex XXV.

(23)         The European Commission reported on the recent progress in customs cooperation and mutual administrative assistance between the EU and ASEM Asian partners. The European Commission provided an overview and explained the content of the agreements on cooperation and mutual assistance in customs matters already concluded between the EC and third countries and in particular the agreement with Korea. A copy of the agreement concluded with Korea was distributed at the meeting. It was reminded to the meeting that during the 3rd ASEM Finance Ministers' Meeting which was held in Kobe (Japan) in January 2001, Ministers, while reaffirming that trade facilitation and enforcement must be well coordinated, encouraged Customs authorities to continue strengthening their cooperation. They also noted that this cooperation would be enhanced by supporting instruments such as customs cooperation agreements. An outline of all the agreements on cooperation and mutual assistance in customs matters concluded between the European Community and third countries is attached at Annex XXVI.

Others

(24)         Indonesia announced that it is happy to accept to hold the 7th ASEM Procedures Working Group together with the 3rd ASEM Seminar on Simplification and Harmonization of Customs Procedures. The timing and venue of the meetings will be decided at a later stage and communicated to all ASEM partners.

(25)         Amendments to the list of contact points should be sent to the EC no later than the end of April 2002. An updated version will then be sent to all ASEM partners.

(26)         It was agreed that the report of this meeting would be sent to all participants by e-mail.

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