27 January 2004

Customs’ Role in the Protection of Society

The following speech marking International Customs Day was given by Mr. Michel Danet, Secretary General of the World Customs Organization.

In its capacity as a horizontal implementation agency, Customs applies the full range of government policies and national and international legal requirements whenever goods and/or persons cross borders. Customs’ action covers diverse areas, such as trade policy, taxation, agricultural policy, protection of consumers and the environment, and national and international crime prevention.

Customs administrations’ tasks in all parts of the world can generally be divided into four categories:

٠ Protection of society and citizens;
٠ Protection and collection of duties and taxes and safeguarding of economic activity;
٠ Implementation of trade policy measures; and
٠ Collection and compilation of trade statistics for government planning purposes.

Customs controls are necessary in order to protect citizens and society against illegal drugs, defective goods, dangerous substances and hazardous materials, etc., as well as to preserve the environment and cultural heritage. A very topical issue is Customs’ role in the fight against international terrorism and organized crime by controlling, inter alia, the import, export and transit of weapons and firearms, chemicals, biological and bacteriological agents, nuclear and radioactive materials, and by combating money laundering.

Moreover, Customs controls are also required to protect national and, sometimes, regional revenue and economic activity. Revenue is typically threatened by commercial fraud, including false declarations, smuggling of high-duty goods and intellectual property right infringements.

The two facets of Customs controls, namely physical and economic protection, are important to economic growth and development and to the well-being of citizens.

As can be seen, the tasks assigned to Customs are a huge responsibility. While it is clear that national territories must be protected and safeguarded, governments need to maintain a balance between compliance and facilitation so as not to introduce costly and ineffective controls which could adversely affect trade flows, investment, employment and economic development. Economic growth and, as a corollary, the fight against poverty and exclusion can only occur in a climate where conditions for effective international trade are in place.

To perform their multifaceted tasks and rise to these challenges, Customs administrations throughout the world need to operate on an international basis. International co-operation forms the core of all success, and Customs services need to develop their ability to exchange information and intelligence both nationally and globally. It is also vital that Customs apply risk management and risk assessment techniques and use business partnerships in a strategic manner.

An issue that could potentially jeopardize Customs action is corruption, one of the greatest threats to society and individuals in today’s environment. It is incumbent upon the international Customs community, and the World Customs Organization (WCO), to work effectively towards finding solutions to this problem.

The Customs services of tomorrow must be integrated, act in real time, operate on-line, be properly equipped and empowered, manage risk, and make well-informed decisions in partnership with their counterparts.

In its role as an intergovernmental organization whose mission is to enhance the effectiveness and efficiency of Customs administrations, the WCO establishes and maintains international instruments, such as conventions, recommendations and declarations, and reinforces Members’ efforts by sharing information and best practices. In order to support all 162 Member administrations, the WCO provides a forum where Customs, international organizations and international business can discuss and develop joint solutions to common challenges. A very importa