Customs in the 21ST Century

WORLD CUSTOMS ORGANIZATION 

ORGANISATION MONDIALE DES DOUANES 

Established in 1952 as the Customs Co-operation Council 

CrÈÈe en 1952 sous le nom de Conseil de coopÈration douaniËre 

POLICY COMMISSION SP0288E1a 

- 

60 th Session 

- 

Buenos Aires 

- 

Brussels, 5 November 2008. 

CUSTOMS IN 21 ST CENTURY - ENHANCING THE WCO FOR ITS 21 ST CENTURY ROLE 

Purpose of document 

PROGRESS REPORT 

(Item IX on the Agenda) 

SUMMARY 

The purpose of this document is to provide a progress report on the development of a 

draft strategy and action plan to implement the Customs in the 21 st Century policy document 

which was adopted at the June 2008 Council Sessions. 

Action required of the Policy Commission 

The Policy Commission is invited to examine this progress report on the 21 st Century 

policy document and to provide guidance on the way ahead with this dossier. 

In order to facilitate the Policy Commissionís discussion of this item, it is proposed 

that delegates begin by concentrating on the first two building blocks - ìGlobally networked 

Customsî and ìCo-ordinated border managementî - in order to deepen their understanding 

of what these entail and how they might be developed. Delegates should discuss what the 

realities are and, from there, what action might be needed in respect of these two building 

blocks. The outcome of this discussion would feed into the work plan. 

This would be a strategic discussion that could be based on the sets of questions, 

identified in paragraph 25 below. 

After this strategically focused discussion, the Policy Commission should consider the 

Customs in the 21 st Century Inventory and Preliminary Work Plan (Annex III hereto) in order 

to provide the Secretariat with clear guidance on the way ahead. 

____________________ 

For reasons of economy, documents are printed in limited number. Delegates are kindly asked to bring their 

copies to meetings and not to request additional copies. 

Copyright © 2008 World Customs Organization. All rights reserved. Requests and inquiries concerning 

translation, reproduction and adaptation rights should be addressed to copyright@wcoomd.org.

SP0288E1a 

2. 

I. Introduction 

1. The policy document, Customs in the 21 st Century - Enhancing Growth and 

Development through Trade Facilitation and Border Security (Doc. SP0270), was 

approved at the Policy Commission and Council Sessions in June 2008 and provides a 

platform and a framework for future thinking both within the WCO and in Customs 

administrations. 

2. The discussion at the Council Sessions indicated a high level of interest and 

strong support for the policy document by the Members. The Members shared a view 

that certain aspects of the policy document were somewhat aspirational and which 

many administrations were not yet in a position to accomplish. Nevertheless, it was 

also a common view that such aspiration itself should not be regarded as a problem - in 

fact the value of the Customs in the 21 st Century policy document rests precisely in its 

visionary and aspirational approach 1 . 

3. The Members emphasized the need to ensure that the future work of the WCO 

should be aligned on the directions charted by the policy document. They therefore 

adopted a Resolution which mandates the Secretary General, the incoming Secretary 

General and the Chairperson of the Council to work together on this issue. In line with 

this mandate, this document is a progress report on developing a draft strategy and 

action plan to implement the Customs in the 21 st Century policy document (hereinafter 

referred to as ìC21î) and help alignment with the 2009/2010 Strategic Plan. 

4. The Policy Commission is now invited to consider and give strategic guidance to 

the Secretariat on how best to achieve the progression from the current situation, 

characterized by a strong focus on Customs imports with no global connectivity, 

towards comprehensive trade management based on the globally networked Customs 

model which focuses on the end-to-end supply chain. 

II. Customs in the 21 st Century policy document 

(1) Ten Building Blocks for 21 st Century Customs 

5. C21ís foundation is a cutting-edge list of ten important building blocks for 

enhancing Customs operations globally. The ten building blocks are as follows : 

(i) Globally networked Customs; 

(ii) Better co-ordinated border management; 

(iii) Intelligence-driven risk management; 

(iv) Customs-trade partnership; 

(v) Implementation of modern working methods, procedures, and techniques; 

(vi) Enabling technology and tools; 

(vii) Enabling powers; 

(viii) A professional, knowledge-based service culture; 

(ix) Capacity building; and 

(x) Integrity. 

1 Members also agreed that C21 is a living document and needs to reflect change in environmental 

developments. The Secretariat is of the view that, taking into account the short time from the 

adoption of this policy document and the accompanying Resolution, there is no need to change the 

content of the C21 at this stage.

SP0288E1a 

6. As was stated by the representative of the C21 drafting group, the description of 

the ten building blocks might be so brief that it would need supplementary information 

for further action. Accordingly, Annex I to this document provides a fuller explanation 

on each building block, based on the explanation delivered by Mr. Gordhan, the 

representative of the C21 drafting group, at the Council Sessions in June 2008. 

(2) Future Role of the WCO 

7. In parallel to the new strategic direction of 21 st Century Customs, C21 also offers 

commentary and recommendations on how the WCO can address the challenges 

facing Customs and expand upon its current roles and responsibilities to better meet 

the needs of the future. A summary of the recommendations in C21 on roles and 

responsibilities includes the following : 

Maintain current Customs standards and, where needed, create new ones; 

Strengthen Customs operations; 

Continue delivery of capacity building to assist in implementation of Customs 

standards; 

Monitor Customs standardsí implementation; 

Continue reviewing funding options for operations; 

Create a research capability; and 

Increase Customs visibility. 

8. It is noteworthy that C21 urges enhancement of Secretariat functions to respond 

to these challenges. Consequently, it is initially envisaged to meet this requirement by 

enhancing the coordination role of the Office of the Secretary General without changing 

the existing structure of the three Directorates. 

9. With regard to the suggestion of creating a research capability, the Secretariat is 

planning to establish a research unit in 2009 within the Office of the Secretary General 

to provide support for each Directorate in strengthening its research function. This will 

in itself raise the WCOís visibility in the media and academia. 

10. Other methods for raising the visibility of Customs and the WCO should also be 

explored. Taking into account the limited resources of the Secretariat, it is vital to 

enhance good working relationships with external partners, including international 

organizations, academic institutions and the private sector. Accordingly, it is also the 

intention to establish an External Relations Coordinator within the Secretary Generalís 

Office to support each Directorate to better coordinate with external partners in a 

coherent and corporate manner. 

11. A well-coordinated Secretariat under the leadership of the Secretary General will 

be able to better serve the Members and the committees and jointly discharge the 

responsibility of the WCO to meet the challenges of the 21 st Century. It is therefore 

vital to consolidate the foundation of the WCO by the C21 analysis and define the role 

of the Members, the Committees and the Secretariat in order collectively to make a 

contribution to turning C21 into a reality. 

3.

SP0288E1a 

4. 

III. Suggested approach for turning the value of C21 into real benefits 

(1) WCO standards and programmes 

12. The foundation of the WCOís expertise and authority lies in best-practice 

identification and rule/standard setting on Customs matters. Through these tasks, the 

WCO accumulates the information, know-how and knowledge which are the source of 

power influencing the policy-makers and other stakeholders. The purposes of 

programmes and other activities which the WCO has conducted or engaged in, 

including the capacity building programmes, are : collecting national experiences for 

potential standard setting work; testing existing/new standards; promoting standards; 

and using standards as the goal or benchmark. 

13. In relation to the requirement of the ten C21 building blocks, the WCO has 

already produced several standards in the form of conventions, other instruments, 

tools, guidelines, and best practices that support them. 

14. Thus, an essential question is whether or not, and to what extent, existing WCO 

programmes and instruments address the requirements of the ten building blocks ? 

The purpose and circumstances when these WCO tools were originally adopted by 

Members might be different from those which C21 predicts. In addition, some of the 

instruments and programmes appear to overlap with each other or need to be updated 

to meet changes in the environment. Accordingly, by supplementing existing 

programmes and instruments, the WCO would enhance its strategies, functions, 

capacity and visibility. 

(2) Work under way and work plan : C21 inventory and gap analysis 

(See Annex II : Flowchart of the suggested approach) 

15. In order to fulfil the task mandated to the WCO in relation to C21, WCO 

programmes and standards need progressively to realign the requirements of C21 

building blocks. Accordingly, the approach suggested is the following : 

The Secretariat has compiled a preliminary C21 inventory of existing core WCO 

programmes and instruments that would be linked to the ten building blocks. 

Alongside the C21 inventory, the Secretariat has indicated the sponsoring WCO 

Committees and charted out their potential work. This is set out at Annex III 

hereto. 

This listing of sponsoring Committees and potential work will serve as a 

preliminary work plan, albeit one that will need to be examined and adjusted by 

the responsible Committees. It may be determined by the Committees that the 

time is not ripe to commence the standard-setting work, in which case, the 

Committees should be accountable to the Policy Commission for their 

conclusion.

SP0288E1a 

Where inventory items are determined as meeting the requirements, concerns 

and circumstances of C21, WCO Members and the Secretariat should encourage 

their implementation through promotion and assistance. When inventory items 

are considered not to correspond to the new environment and requirements 

described in C21, the technical Committee concerned should be asked to 

develop items that will achieve this. For many C21 items, basic research and 

case studies would be necessary prior to beginning the development of new 

instruments or programmes. Technical Committees might in fact decide to start 

collecting basic information on tangible experiences of national administrations 

and the trade community, before producing guidelines or other instruments. 

The complete inventory and listing by sponsoring Committees will become a 

preliminary action plan, which will be presented to the Policy Commission and 

Council in June 2009. Each Committee should, nevertheless, start the work in 

line with the suggested approach above at its own initiative in the light of the 

results of the Council Sessions this year. Each technical Committee should 

report its progress to the Policy Commission and Council, including delineation of 

timelines, accountability and performance measurement. 

It is evident that phased implementation of C21 is necessary. In considering 

available resources and the need to maintain quality, the schedule production will 

be short-term, medium-term and long-term. In addition, there will be a need for 

flexibility, as evolving circumstances will inevitably lead to changed requirements. 

16. Active and substantial support from WCO Members and the trade community will 

enhance the quality of the work. In addition, it is vital to clearly define the role of the 

Members, the various Committees and the Secretariat in managing the development 

and maintenance of WCO programmes and instruments. Therefore it is essential to 

develop a system that traces the advancement of the work and covers the 

responsibility of each party. 

IV. Relationship with annual Strategic Plan 

17. As was explained clearly at the Council Sessions in June 2008, C21 is a 

visionary and aspirational policy document. C21 will not replace the annual Strategic 

Plan : the former sets forth the long-term direction, while the latter sets tangible 

activities, resource implications and their prioritization within a year. The two 

documents should be mutually supportive. Work derived from the WCO Committeesí 

review should be translated into next yearís annual Strategic Plan. The Policy 

Commission and Council should continue to examine annually the activities, their 

priorities and resource implications, taking into account resource constraints, evolving 

urgent matters, and changes in the environment, as well as the long-term direction. 

5.

SP0288E1a 

6. 

V. Preliminary findings drawn from the work on C21 

18. There are clearly some areas where the WCO must begin to place more focus. 

For example, the Authorized Economic Operator (AEO) standards were adopted 

in 2005 but the establishment of AEO programmes is still at the exploratory stage for 

most Members. Consequently, there is clearly a need to compile emerging AEO 

programmes for comparison, and to work on guidelines on introducing/implementing 

AEO programmes, especially tailored for developing countries to indicate the building 

blocks in the proper sequence. 

19. Likewise, until recently, Customs administrations and thus the WCO have 

primarily developed instruments that have focused on imports. With the adoption of the 

Framework of Standards to Secure and Facilitate Global Trade, this attention has 

broadened to include more emphasis on the entire supply chain, including exports and 

transit. Other examples include areas which are not necessarily Customs specific, 

such as change management and other human resource challenges. 

20. The Secretariat should facilitate Membersí sharing of success stories and lessons 

learned and undertake research to prepare for the work of the relevant Committees to 

develop or update tools. In this connection, the WCO increasingly needs partnership 

with stakeholders, including other international organizations, academic institutions and 

the private sector in carrying out its task in research and the development of 

instruments that correspond to the rapidly changing environment. 

21. As is indicated as one of the ten building blocks, effective capacity building 2 is 

essential for Customs to move successfully towards a new strategic direction. 

Customs capacity building can continue to be improved by developing a standardized 

approach, tools and materials with necessary national adjustments and by focusing on 

core WCO instruments, identifying and responding to urgent/evolving needs, and 

monitoring implementation. Inter alia, new tools are urgently needed to enable 

Members to monitor the implementation of WCO standards. This will be enhanced with 

a pool of quality Customs capacity building experts and a network of regional 

mechanisms, i.e., Regional Offices for Capacity Building (ROCBs) and Regional 

Training Centers (RTCs). 

22. It goes without saying that timely and sufficient funding for capacity building is 

also a priority. Building on recent successes in attracting donor attention, the 

Secretariat will enhance its service of donor matchmaking. The Secretariat can, 

moreover, assist with crafting business cases for donor assistance. The WCOís 

capacity building experience shows that concrete plans for the systematic and realistic 

implementation of WCO instruments are the most likely to garner support from donor 

partners. 

2 Under the WCOís definition, capacity building means 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.

VI. Suggested way ahead 

SP0288E1a 

23. This document and its three Annexes serve as a progress report to the Policy 

Commission on the 21 st Century policy document. Following input from the Policy 

Commission, the WCO Secretariat will complete the preliminary inventory work which 

will serve as the agenda for the technical Committeesí work. The output emanating 

from this work will then be incorporated into the update provided to the Policy 

Commission and Council in June 2009 and alignment ensured with the WCO Strategic 

Plan. 

VII. Suggested approach for the Policy Commissionís discussion of this 

question 

24. In order to facilitate the Policy Commissionís discussion of this item, it is proposed 

that delegates begin by concentrating on the first two (and probably the key) building 

blocks - ìGlobally networked Customsî and ìCo-ordinated border managementî - in 

order to deepen their understanding of what these entail and how they might be 

developed by way of examples, scenarios, etc. Delegates should discuss what the 

realities are and, from there, what action might be needed in respect of these two 

building blocks. The outcome of this discussion would feed into the work plan. 

25. This would be a strategic discussion that could be based on the following sets of 

questions, which delegates should consider in advance of the session : 

Globally networked Customs 

1. What are the key enablers for globally networked Customs ? How can Customs 

administrations support the global trading system ? 

2. What elements currently hinder achievement of the key enablers identified in the 

previous point ? 

3. What kind of interconnected systems, not necessarily limited to the Customs field, 

already exist or are emerging at bilateral, regional and international levels which inspire 

Directors General to consider global networked Customs ? 

4. What aspects do Directors General expect the WCO to contribute in this field ? 

Better co-ordinated border management 

1. How do you recognize the unique nature of Customs in comparison with the roles of 

other border agencies ? 

2. By conducting co-ordinated border management, how could Customs as well as 

business benefit ? What are the perspectives that Customs needs to address in 

considering co-ordinated border management ? 

3. What elements currently hinder achievement of the perspectives identified in the 

previous point ? 

4. What aspects do Directors General expect the WCO to contribute in this field ? 

It is hoped that the Vice-Chairs might be able to present a regional view on these 

building blocks. 

7.

SP0288E1a 

26. After this strategically focused discussion, it would be useful if the Policy 

Commission could look at the Customs in the 21 st Century Inventory and Preliminary 

Work Plan (Annex III hereto) in order to provide the Secretariat with clear guidance on 

the way ahead. 

8. 

VIII. Conclusion 

27. The Policy Commission is invited to review this progress report on 

the 21 st Century policy document and to provide strategic guidance on the way ahead 

with this dossier. 

x 

x x

CUSTOMS IN THE 21 ST CENTURY 

C21 BUILDING BLOCKS 

Building Block 1 - Globally networked Customs 

Annex I to 

Doc. SP0288E1a 

Extract from C21 policy document. There is a need for closer real-time collaboration between 

Customs administrations and between Customs and business in facilitating legitimate trade and 

undertaking Customs controls. The new requirement is to create, in partnership between the 

various stakeholders of the public and the private sectors, a global Customs network in support of 

the international trading system. The vision of this network implies the creation of an international 

e-Customs network that will ensure seamless, real-time and paperless flows of information and 

connectivity. 

Summary from Council Minutes. Given the nature of the supply chain and the 

Customs-to-Customs and, more recently, Customs-to-business relationship, it is time to envisage a 

globally networked Customs which makes it possible to operate on the e-Customs principle, allow 

for real-time collaborations, promote the idea of the AEO a lot more assertively and, even more 

importantly, embrace mutual recognition as a significant platform upon which the AEO concept is 

built. In this context, the question to be addressed is what can the WCO and each Member do to 

devise interconnected systems, going beyond country-to-country set-ups or those operating within a 

particular region. The aim is that such systems, if supported by mutual recognition and co-ordination 

protocols, should help to enhance trade and enhance the work of the private sector, whilst at the 

same time ensuring security and protection for societies and nations. 

Building Block 2 - Co-ordinated Border Management 

Extract from C21 policy document. This entails coordination and cooperation among all the 

relevant authorities and agencies involved in border security and regulatory requirements that apply 

to passengers, goods and conveyances that are moved across borders. Governments also need to 

explore more effective solutions to border management. 

Summary from Council Minutes. The essential point here is that Customs should not, and in most 

cases does not, operate in isolation at the border. The challenge facing most States is how 

immigration, Customs, agriculture, environment, health and many other departments that have an 

impact at the border can work with each other in a co-ordinated manner in order to make the State 

more efficient, but equally to facilitate the work of businesses. In this connection, it is important that 

the concept of an Electronic Single Window, the role of Customs as a lead agency at the border and 

other innovations that some countries are experimenting with, be taken into account in developing a 

more co-ordinated approach to border management. 

I/1.

Annex I to 


Building Block 3 - Intelligence-driven risk management 

Extract from C21 policy document. The expanding responsibilities and opportunities facing 

Customs administrations require a more sophisticated understanding of the risk continuum. It is well 

understood that scarce resources need to be targeted to the higher end of the risk continuum. The 

challenges facing Customs administrations are two-fold: how best to apply the rapidly expanding 

body of knowledge of risk management to identity and mitigate risk at the operational level, and how 

to apply this knowledge of risk management beyond the operational level and in the management of 

Customs administrations. 

Summary from Council Minutes. After more than a decadeís experience of intelligence-driven risk 

management, it is clear that this is a crucial pillar for the present and, more importantly, for the 

future. Clearly, what is required in this area is better sharing of information, more accurate 

identification of risk, and perhaps a more predictive, proactive identification of risk in the future. The 

question is what systems and processes need to be developed in order to enable individual 

Customs administrations, groups of administrations or the WCO as a global network to manage risk 

and intelligence in a different way. 

Building Block 4 - Customs-trade partnership 

Extract from C21 policy document. Customs in the 21 st Century should enter into strategic 

pacts with trusted economic operators. Customs needs to understand the concerns of 

business, while business needs to know the requirements of Customs. Most importantly, there 

is a need to translate this relationship into a partnership that results in mutually beneficial 

outcomes. 

Summary from Council Minutes. Fostering the Customs-trade partnership has traditionally 

been an important part of the WCOís work, but this work has been taken to new levels in recent 

years with the establishment of the Private Sector Consultative Group and the new emphasis 

on strategic pacts with trusted economic operators. It is now time to ask more fundamental 

questions about how a better, and more structured relationship could be established between 

Customs and Trade, based on a mutual understanding of concerns, requirements and 

beneficial outcomes. Over the next few years, there would be various experiments around the 

world aimed at making the systems of business and Customs better connected and better 

integrated. 

I/2.

Building Block 5 - Modern Working Methods 

Annex I to 


Extract from C21 policy document. Demands regarding the rapid movement of goods, 

combined with complex regulatory requirements, require modern innovative approaches. 

These include audit-based controls undertaken away from the border, moving from 

transaction-based controls alone to using systems-based controls where the level of risk allows, 

as well as moving away from paper-based systems. There is also a need to review existing 

procedures on the basis of international conventions (including the WCO Revised Kyoto 

Convention) and international best practice. 

Summary from Council Minutes. The methods used by Customs in the course of its normal 

work, whether that work be investigative or related to the application of valuation or the 

Harmonized System, need to stay in line with the new developments and new demands facing 

Customs. Therefore, the paper before the Council recognized the need for Customs to adopt 

an innovative, modern approach to facilitation and to complex regulatory environments, keeping 

pace with technological and legislative developments occurring around the world. The use of 

audit-based controls conducted away from the border, and a move from transaction-based to 

systems-based controls, are examples of the kinds of modern methods to be espoused. 

Building Block 6 - Technology 

Extract from C21 policy document. Customs must take advantage of new and emerging 

technologies to enhance, amongst others, processing, risk management, intelligence and 

non-intrusive detection. 

Summary from Council Minutes. Equally important if the vision of a globally-networked 

system is to come into force is the technology that will enable this to occur. One challenge 

facing the WCO and the Customs community in this respect is how to develop a standardized 

platform and devise a system that would provide a basis for global networking. Another 

important issue is how to take advantage of new and emerging technologies to enhance risk 

management and progress beyond the scanner phase of recent years towards even more 

sophisticated means of non-intrusive detection. Many Member administrations are doing 

invaluable work in this direction, and the WCO could play a more enabling role in terms of 

envisioning technology in the future. 

Building Block 7 - Enabling Powers 

Extract from C21 policy document. In order to address these challenges, Customs 

administrations require appropriate legislative provisions that strengthen enforcement powers, 

the provision of advance information and the sharing of information domestically and 

internationally. These powers are necessary, in particular, in order to combat organized crime 

more effectively. More needs to be done to increase the safety of Customs officers. 

Summary from Council Minutes. There is a view that Customs officers around the world 

require better enabling powers to conduct, particularly, the enforcement part of their work than 

they might currently enjoy in many Member countries. What the Customs in the 21 st Century 

paper is asking for is a strengthening of enforcement powers, a better flow of advance 

information and, most importantly, a legislative basis upon which Customs authorities can share 

information with each other, and collectively. 

I/3.

Annex I to 


Building Block 8 - Professional service culture 

Extract from C21 policy document. The future orientation of Customs requires moving 

towards a knowledge-based and customer-orientated model. Staff competencies need to 

support timely customer-focused processes and services that minimize the administrative 

burden on legitimate trade. Training and organizational culture should support high levels of 

integrity, demonstrating consistency, transparency, honesty and fairness. Effective change 

management and leadership skills also need to be developed. 

Summary from Council Minutes. There is also recognition that a new professional service 

culture needs to be developed for Customs officers. The type of training that the WCO and 

Customs authorities offer, the capability they seek to develop, and the kind of competence that 

a Customs officer requires in the 21 st Century, are clearly very different from ten years ago. 

Both from a WCO standpoint and from the standpoint of each individual administration, there is 

a need to invest a lot more in enhancing the professional service culture, in particular by 

inculcating this culture during training, by effective change management and by fostering 

leadership skills. 

Building Block 9 - Capacity Building 

Extract from C21 policy document. Customs administrations need to ensure that they have 

the capacity and skills across all dimensions of the operating model to perform all Customs 

functions most efficiently and effectively. It also goes without saying that the concept of 

networked Customs relies on professional and competent Customs administrations, and that 

intensified and focused capacity building efforts are required to achieve this objective. The 

Columbus Programme of the WCO is an ambitious international effort to build Customs 

capacity. Some of the challenges that need to be addressed include how to manage scarce 

resources to deliver sustainable capacity building, how to promote effective performance 

criteria, monitoring and follow-up, how to avoid duplication of efforts and how to manage 

impediments in the recipient country. Leadership from both developed and developing-country 

Customs administrations as well as a true partnership are critical to ensure sustainable capacity 

building. 

Summary from Council Minutes. Over the past five or six years, capacity building has 

established itself as a permanent pillar in the enhancement of the Customs community. It will 

also be a key factor for the success of networked Customs. 

I/4.

Building Block 10 - Integrity 

Annex I to 


Extract from C21 policy document. The fight against corruption remains an important task 

that should be undertaken over the years to come. 

Summary from Council Minutes. Integrity has to be viewed as a permanent challenge, given 

that the fight against corruption is core to business, and without Integrity there is a real risk that 

the impact of the Columbus Programme could be reduced or negated. The way forward in this 

area would involve effective implementation of the Revised Arusha Declaration. Organized 

crime has become a very formidable force, and in many parts of the world might be stronger 

than even the State and the Customs administration. One of the challenges for the future is 

how to increase the capacity of Customs and of the State in order to cope better not just with 

ordinary crime, but with organized crime in particular. Integrity is a crucial part of this. 

x 

x x 

I/5.

Resource 

allocation 

FLOWCHART SHOWING SUGGESTED APPROACH 

Annex II to 


Identification of sub-building blocks and sponsoring technical Committees, 

updating of Strategic Plan, instruction and recommendation to the Committees 

Each technical Committee 

reviews its instruments and work 

Does the instrument 

meet C21 

requirements ? 

No 

Technical Committee 

improves its instruments 

and work 

New/revised 

instruments 

and work 

Report on 

technical Committeeís 

activities 

Finance 

Committee 

Instruction 

Recommendation 

Yes 

Adoption and 

endorsement 

Review 

Technical Committeeís report 

Promotion and 

implementation 

Is there sufficient 

capacity in 

the Member? 

Yes 

Implementation 

Monitoring of the technical Committeeís activities 

Resource 

considerations 

Prioritization 

Instruments 

and work 

Report 

Monitoring of the 

implementation 

Update Strategic Plan, instruction and recommendation 

to the Committees 

Developments 

in environment 

No 

TA/CB, 

Columbus 

Programme 

Resource 

allocation 

II.

C21 INVENTORY AND PRELIMINARY WORK PLAN 

Inventory and Preliminary Work Plan Methodology 

Annex III to 


The Customs in the 21 st Century (C21) Inventory and Preliminary Work Plan is a matrix 

organized according to each of the ten building blocks. For each building block, the title is 

extracted directly from C21 and is followed by three columns. 

In column one, sub-building blocks are listed that describe narrower clusters of the 

overarching building block topic. In column two, an inventory of existing core instruments, 

programmes and/or actions (if any) are listed for each sub-building block. For column three, 

a preliminary and provisional work plan is presented for the sub-building blocks, with a 

suggested Committee responsible for the work. The Committee work will be aligned with the 

WCO Strategic Plan for 2009/2010. 

It is expected that the tasked Committees would conduct detailed gap analysis on the 

extent to which WCO instruments and programmes address the requirements of the ten 

building blocks. Depending on their analysis, they would recommend themselves or other 

relevant bodies of the WCO to : 

Promote and conduct capacity building (if the Committee determines that the 

instrument meet C21 requirements); 

Update or improve the instruments/programmes; 

Develop supplementary instruments, such as implementation guidelines; and 

Commence rule/standard setting work (if the Committee determines that the 

WCO has not addressed the item indicated in C21). 

Such Committee work could be accompanied and supported by the following actions : 

Survey of the Memberís position; 

Study on the environment and, if any, lessons learned in non-Customs field; 

Collecting and compiling national experiences and best practices; 

Analysis of typology, commonalities, pros and cons; 

Conducting pilot projects and analysing their results; 

Discussion and consideration of possible instruments/projects by Committee; 

Development of new instrument/project. 

Although the attached matrix is only a preliminary one, its conceptual framework will 

become a foundation in formulating the draft Strategic Plan for 2009/2010 and the draft 

strategy and action plan for the implementation of C21. Members will be invited to discuss 

prioritization of the actions in consultation with all stakeholders. 

III/1.

Annex III to 


III/2. 

CUSTOMS IN THE 21 ST CENTURY 

TEN BUILDING BLOCKS - INVENTORY AND PRELIMINARY WORK PLAN 


Sub-Building Blocks Inventory Preliminary Work Plan 

Global strategy. Various technical 

reports. 

PTC 

Development of e-Customs 

strategy taking into account 

all the items indicated in 

C21. 

C21 14 (a) (i) Internationally 

standardized data 

requirements for export, 

transit and import and the 

implementation of the WCO 

Unique Consignment 

Reference number as part of 

a Cross-Border Data 

Reference Model. 

C21 14 (a) (ii) Interconnected 

systems and aligned 

Customs databases to 

enable the electronic 

exchange of data between 

Customs administrations as 

early as possible in the 

international movement of 

goods. 

WCO Data Model 

version 2.0. 

Interaction with the 

UN/CEFACT and other 

organizations setting 

cross-border data 

reference models. 

Unique Consignment 

Reference 

Recommendation and 

Guidelines (UCR 

Guidelines) (2004). 

Customs Guidelines on 

Integrated Supply Chain 

Management (ISCM 

Guidelines) (2004). 

Framework of 

Standards (FoS). 

PTC 

Verify if the WCO Data 

Model versions 2.0 and 3.0 

(once finalized) address C21 

or how it can be made more 

relevant or whether a new 

strategy is needed. 

Ensure that the WCO work in 

this area be reflected in the 

work of other international 

organizations. 

Verify if the UCR 

Recommendation and 

Guidelines meet Customs 

and business needs. 

Ensure that the UCR is part 

of a Cross-Border Data 

Reference Model 

used/produced elsewhere. 

PTC, SAFE Working Group 

Verify if ISCM Guidelines 

and FoS fully address C21.


Annex III to 



C21 14 (a) (iii) Mutual 

Revised Kyoto 

PTC, SAFE Working Group 

recognition and coordination 

Convention - Chapter 3, 

protocols between exporting, Joint Controls and 

Prepare case studies on 

transit and importing 

Juxtaposed Offices - 

existing situations where 

administrations to eliminate 

Guidelines. Note : RKC there is mutual recognition of 

unnecessary duplication of 

does not cover mutual Customs controls. 

controls in international 

recognition of controls in 

supply chains. 

the context of supply 

chain security. 

Existing situations where 

there is mutual 

recognition of Customs 

controls. 

C21 14 (a) (iv) Standards to 

enable the development of a 

system of mutual recognition 

for AEOs. 

C21 14 (a) (v) A set of rules 

governing the exchange of 

information between 

Customs administrations, 

including rules on data 

protection. 

Existing examples 

(UK-Netherlands-China; 

US-New Zealand; 

US-Jordan; 

US-Canada). 

Johannesburg 

Convention (2003) 

(multilateral mutual 

administrative 

assistance; successor to 

Nairobi Convention; not 

entered into force). 

Model Bilateral 

Agreement on Mutual 

Administrative 

Assistance in Customs 

Matters (2004). 

Regional Cooperative 

Arrangement on Mutual 


Assistance in Customs 

Matters (2002). 

SAFE Working Group 


AEO mutual recognition. 

Case studies should include, 

but not be limited to, 

information on system 

compatibility and information 

exchange. Eventually, this 

work could lead to AEO 

mutual recognition 

standards. 

Enforcement Committee 

Research the possibility of 

developing a standard set of 

rules governing the 

exchange of information 

between Customs 

administrations, including 

rules on data protection. 

III/3.

Annex III to 


Building Block 2 - Co-ordinated Border Management 


C21 14 (b) (i) The recognition of Revised Kyoto 

PTC 

Customs or the agency 

Convention, various 

responsible for the Customs 

standards and 

Develop case studies on 

function as the lead front-line 

transitional standards. coordinated border 

administration at national borders 

management and one-stop 

for controlling the movement of Customs Compendium, border service which could 

goods. According to the UN 

Volume 9, Integrated lay the groundwork for 

Trade Facilitation Network, 

Border Management. developing guidelines in the 

Customs administrations are 

usually best suited to develop 

integrated procedures for 

processing goods at points of 

entry. 

future. 

C21 14 (b) (ii) The introduction of 

the electronic Single Window 

concept that allows a trader to 

provide all necessary information 

and documentation once to the 

designated agency that, in turn, 

distributes the information to all 

relevant agencies. 

III/4. 

Revised Kyoto 

Convention Chapter 3 

(Annex). 

Various technical 

reports. 

UN Recommendations 

33 and draft 35. 

Draft Single Window 

Guidelines. 

Joint WCO/UNCITRAL 

Working Group on Model 

Legal Guidelines for 

Implementation of 

Integrated Border 

Management (Working 

Group established). 

PTC 

Continue work on 

amendments to Guidelines. 

Promote and participate in 

finalization of UN 

Recommendation 35. 

RKC Management Committee 

Review draft Single Window 


WCO/UNCITRAL Working Group 

Establish work methodology 

and milestone dates; 

integrate results with 

UNCEFACT Rec. 35).

Building Block 3 - Intelligence-driven risk management 

Annex III to 



Risk Management - 

Risk Management Enforcement Committee 

Customs Management. 

Guidelines (2003). (Also 

relevant to Risk 

Update Risk Management 

Management for 

Guidelines, taking into 

Customs operations). account risk management for 

both Customs management 

and operations. 

Risk Management - 

Customs Operational. 

Standardized Risk 

Assessments (SRAs) - 

Model Risk 

Indicators/Profiles. 

(rev. 2007). 

Various other 

instruments. 

nCEN system. 


Develop work outputs or 

forums on corporate risk 

management. 


Regularly update SRAs. 

Update other instruments as 

needed. 

Continue developing a 

national risk management 

database directly linked or 

incorporated in the national 

nCEN server. 

III/5.

Annex III to 




Customs-trade 

partnerships. 

PTC 

Provision of information. 

Customs-trade 

consultations. 

MOUs between 

Customs and trade. 

AEO. 

Instrument. 

Practical experience. 

Capacity building. 

III/6. 

Revised Kyoto 

Convention, Chapter 9. 

Revised Kyoto 

Convention, Chapter 1 

(General Principles), 

Standard 1.3 and 

Chapter 8 (Relationship 

between the Customs 

and Third Parties). RKC 

Chapter 3 (Clearance 

and other Customs 

Formalities), 3.32, 

Authorized Person 

[trader]. 

Revised Kyoto 

Convention. 

Framework of 

Standards, Pillar II and 

AEO Conditions, 

Requirements and 

Benefits (rev. 2008). 

Verify if RKC and other WCO 

instruments meet C21 

requirements. 

PTC, RKC Management 

Committee 

Verify if RKC and other WCO 

instruments meet C21 

requirements. 

Organize presentations on 

case studies. 

PTC, Enforcement Committee 

Verify if WCO instruments 

meet C21requirements. 

Organize presentations on 

case studies. 

SAFE Working Group 

Update FoS as needed. 

SAFE Working Group, Capacity 

Building Committee 

Develop AEO Compendium 

(existing AEO programmes 

with typology analysis). 

Develop AEO Continuum: 

detailed tool on how an 

administration can begin the 

process of developing an 

AEO programme. This could 

prove useful for 

administrations not practising 

risk assessment (selectivity) 

and post-clearance audit, or 

which have limited


Annex III to 



Outreach on Customs 

requirement. 

Training for the private 

sector. 

co-operation with the trade. 

Capacity Building Committee 

Develop business model and 

materials to train the private 

sector at national level to 

increase interaction between 

Customs and trade. 

III/7.

Annex III to 




Audit-based controls. Revised Kyoto 



(Customs Controls), 

Verify if the instrument meets 

Standard 6.6. 

C21 requirements. 

Advance rulings. 

III/8. 

Post-Clearance Audit 

(PCA) Guidelines (2006). 

Revised Kyoto 


(Information, Decisions, 

and Rulings Supplied by 

the Customs), 

Standard 9.9. 

Guidelines on Advance 

(Binding Rulings) in 

accordance with RKC 

standard 9.9. 

Recommendations on 

advance tariff 

information. 

Advance Tariff Ruling 

System pilot (ATRS) 

(2007). 

Proposal on Binding 

Origin Information 

Recommendation 

(2009). 

Advance ruling on 

valuation. 

Enforcement Committee, PTC 

Update PCA Guidelines. 

Develop Guidelines for 

Customsí direct access to 

tradersí databases and 

systems. 


Conduct research on the use 

of advance rulings within 

Customs administrations. 

Update, if necessary, 

Guidelines on Advance 

Rulings. 

Consolidate several 

instruments under the RKC 

relevant standards and 

associated Guidelines. 

HS Committee 

TCRO 

TCCV 

PTC 

Prepare and subsequently 

present technical assistance 

report to Policy Commission 

in December 2008. 

Examine in January 2009. 

Consider whether there is a 

need to develop an 

instrument.


Annex III to 



Appeals of decisions. RKC 

Prepare case studies on the 

use of Appeals of Customs 

decisions. 

Performance 

measurement. 

Use of international 

standards. 

Control of origin. 

Time Release Study 

(TRS) Guidelines [Guide 

- To Measure the Time 

Required for the Release 

of Goods] (2002). 

Internet software for the 

TRS. 

Various instruments 

related to these subject 

matters. 

RKC Specific Annex K 

and associated 


Origin Action Plan 

(database and 

comparative study). 

PTC 

Prepare case studies on use 

of TRS and revise tool if 

necessary. 

Various Committees 

Review Membersí position 

on each instrument and 

identify the obstacles and the 

way to promote its use. 

Update instruments as 

necessary. 

RKC Management Committee, 

TCCV, Commercial Fraud 

Forum. 

Compare and analyse the 

country situation. 

III/9.

Annex III to 




Practical application of 

ICT in processing, risk 

management and 

intelligence. 

Valuation. 

III/10. 

Revised Kyoto 

Convention, ICT 


Annual ICT Conference 

and Exhibition (sharing 

of best practices and 

experiences). 

Guidelines on the use of 

national valuation 

database as risk 

management tool. 

PTC, IMSC, RKC Management 

Committee 

Verify if the RKC ICT 

Guidelines meet C21 

requirements and reflect 

technological developments. 

Determine if Data Model 

should be included in RKC 

ICT Guidelines. 

Prepare case studies and 

research on implementation 

and usage of ICT in the 

Customs context. 

Research ASYCUDA World 

and other electronic 

processing systems for 

Customs clearance and 

targeting in order to provide 

best practices information to 

Members. 

Capacity Building Committee, 

other relevant technical 

Committees 

PTC 

TCCV 

Explore closer cooperation 

with the World Bank and 

UNCTAD in installing and 

better use of automated 

processing systems. 

Continue organizing. 

Update as necessary.


Balkan INFO system - 

Usage of the 

CENCOMM platform for 

exchange of nominal 

data on the Balkan 

Route. 

Global RILO Network. 

Annex III to 



Exchange of information. Customs Enforcement 

Network (CEN). (WCO 


enforcement database). Verify if the CEN, 

CENCOMM and nCEN meet 

CENCOMM - secured C21 requirements, including 

communication tool for developing a tool on 

operational purposes. interaction between nCEN 

and national database. 

Container Control 

Programme 

(ContainerCOMM). 

Non-intrusive inspection 

(NII) equipment. 

Container Scanning 

Equipment - Guidelines 

to Members on 


Considerations of 

Purchase and Operation 

(2003). 

Scientific Sub-Committee, PTC, 


Verify if 2003 guidelines 

meet C21 requirements. 

Conduct research on use of 

NII; and explore methods of 

providing advice, where 

appropriate, on procurement. 

Scientific Sub-Committee 

Develop/review a 

catalogue/database on types 

of NII, different purposes, 

and working environment. 


Compile best practices of 

use of NII. 

Laboratories. Scientific Sub-Committee 

Develop case studies from 

national administrations on 

the use of laboratories. 

III/11.

Annex III to 




List of technology 

Advanced Technology Scientific Sub-Committee 

providers. 

Databank Guidelines 

(2003). Includes 

Verify if the Databank 

information on : 

Guidelines meet C21 

Communication 

requirements and reflect 

Equipment; 

technological developments 

Document Verifiers and 

Document Readers; 

since 2003. 

Equipment - Tools, Examine feasibility to develop 

Safety; 

similar database on other 

Software and Services; 

Surveillance 

Equipment; 

Test and Detection 

Equipment; 

X-Ray Equipment. 

products. 

Practical application of 

RFID, tracking and 

e-seals. 

III/12. 

Container Convention 

Handbook (1984). 

Container Convention 

Administrative Committee 

Add section on RFID, 

tracking and e-seals; finalize 

Handbook. 


Explore options for 

addressing advanced 

technologies. 


Compile national private 

sector experiences. 

Consider the issues of 

removable/ returnable 

tracking devices; revise 

Handbook; and prepare case 

studies.

Building Block 7 - Enabling Powers 

Annex III to 



Legislation enabling 

Revised Kyoto 


Customs to conduct 

Convention, Chapter 6 of 

necessary controls. 

the Annex. 

Organize forum for discussing 

legal and legislative Customs 

issues. 

Enabling legislation for 

cargo controlling on import, 

export, transit and 

transhipment. 


Customs control on Free 

Zones. 


Customs controls against 

IPR infringing goods. 


Single Window and CBM. 

Legal support for Customs 

officer safety programmes. 

SAFE Standard 2. 

SAFE Standard 2. 

IPR model legislation. 

Joint WCO/UNCITRAL 

Working Group on Model 

Legal Guidelines for 

Implementation of 

Integrated Border 

Management (Working 

Group established). 


Develop model enabling 

legislation on cargo control. 


Explore ways of effective 

Customs control on cargo, 

incoming, stored and 

outgoing from Free Zones. 

SECURE Working Group 

Finalize SECURE 


Joint WCO/UNCITRAL Working 

Group 

PTC 

Continue work. 

Conduct research on methods 

of increasing safety of 

Customs officers, including 

model legislation, in close 

cooperation with the ILO and 

the WHO. 

III/13.

Annex III to 


Building Block 8 - Professional service culture 


Knowledge-based 

Presentation on 


model. 

successful reform and 

modernization at Council Prepare case studies of 

Sessions and other 

successful reform and 

conferences. 

modernization in the 


Customer-oriented 

model. 

Leadership skills and 

human resource 

development. 

III/14. 

Various technical 

reports. 

Ongoing work on 

Development 

Compendium (general 

management theory). 

Change management. Ongoing work on 

Development 

Compendium (general 

management theory). 

Organizational culture. Handbook on the 

Structure and 

Organization of Customs 

Administrations (1990). 


Compile and analyse 

national experiences on 

Customs service charter, and 

develop model charter. 



leadership skills and human 

resource development in the 


Review tools to determine 

suitability for national training 

centres and academies. 

Develop a set for model 

conduct of external relations. 


Explore joint work with expert 

international organizations to 

prepare case studies on 

change management in the 



Prepare new version that 

includes research on 

organizational models, 

including Revenue Authority 

and Integrated Border 

Agency models 

Monitor progress and content 

of Worldcap.


Annex III to 



WCO core capacity 

WCO Customs Capacity Capacity Building Committee 

building philosophy. 

Building Strategy (2003). 

Promotion of Capacity 

Building Strategy. 

Needs assessment 

(Diagnostics). 

Tool. 

Support. 

WCO Customs Capacity 

Building Diagnostic 

Framework (2005). 

WCO Columbus 

Programme diagnostics. 

Review linkages to C21. 

Review the current position 

of the extent to which the 

Capacity Building Strategy 

has been implemented in 

WCO capacity building 

activities and influenced 

other international 

organizations and donor 

work in projects in 

developing countries. 


other technical Committees 

Review whether the 

Diagnostic Framework 

addresses C21 requirements 

or whether there is a need 

for updates. 

Based on acquired 

experience, review the extent 

to which the Diagnostic 

Framework has been used. 

Review content of Diagnostic 

Framework. 

Expand, improve 

methodology where 

appropriate. 

Review diagnostic processes 

periodically to develop 

standardized model 

diagnostic practices. 

Promote use of specific field 

focused diagnosis. 

Enhance synergies between 

needs assessments and 

monitoring. 

III/15.

Annex III to 




III/16. 

Research 

Sustainable delivery. 

Regional approach. 

WTO-WCO trade 

facilitation needs 

assessments. 

UN-WCO UN 

Counter-Terrorism 

Committee (CTC) needs 

assessments. 

Trends and Patterns 

Reports, Issues One and 

Two (2007). 

Various other research 

reports. 

Work of ROCBs and 

RTCs. 

Capacity Building 

Operating Strategy, 

regional approach 

(2008). 

Continue and enhance 

working relationships with 

other international 

organizations. 

Conduct research using 

quantitative data. 

Explore feasibility of 

developing a model 

quantifying the costs and 

benefits of capacity building 

projects and the necessary 

costs of non-capacity 

building parts of reform and 

modernization. 

Compile and analyse models 

enhancing revenue 

collection, in particular, in 

regional integration. 


Review and improve ROCBs 

and RTCs with the objective 

of enhancing their ability to 

respond to national needs; 

develop best practices; 

promote WCO tools; 

coordinate with regional 

stakeholders; develop pool of 

experts; and donor 

coordination. 

Review Strategy.


Annex III to 



Pool of experts. 

Technical Committees and 


Training and technical 

assistance, Customs 

and non-Customs 

specific (e.g. human 

resource management) 

competencies. 

E-learning. 

Partnership with 

stakeholders. 

Regionalization (RTCs 

and regional experts), 

accreditation, and 

train-the-trainer 

approach. 

Various programmes 

and processes. 

Various e-learning 

modules. 

Training for the private 

sector. 

Stakeholder 

(government and private 

sector) involvement in 

WCO capacity building 

programmes. 

Review quality taking into 

account recent 

developments and adjust, as 

appropriate, methodology for 

identifying and accrediting a 

pool of experts to ensure 

transparency, appropriate 

skills sets, and regular 

update of knowledge. 

Various technical Committees 

and Capacity Building Committee 

Standardize training and 

curriculum material and 

procedures. Examine 

linkages and potential for 

cooperation with other 

international organizations or 

sources of expertise. 

Review content (technical 

Committees). Review 

process and usage (Capacity 

Building Committee). 

Review the process to see if 

the programme meets 

expectations. 


Work to enhance stakeholder 

involvement; explore use of 

twinning; and explore 

methods of increasing 

financial and human 

resources available for 

capacity building. 

Compile list of other 

international organization 

Customs modernization 

projects. 

III/17.

Annex III to 




Promote the WCO 

instruments for use by the 

development partners. 

Seek possible MOU and/or 

tangible joint project with 

these donors; monitoring 

such projects. 

Monitoring (progress 

review and periodic 

reporting) with 

performance criteria. 

Evaluation (evaluation of 

project objectives and 

outcomes) with 

performance criteria. 

Pre-shipment inspection 

(PSI) and destination 

inspection. 

III/18. 

Donor/project 

coordination/ 

matchmaking. 

Various self-assessment 

monitoring tools. 

TRS (narrow trade 

facilitation tool for 

measuring clearance 

times and identifying 

bottlenecks). 

Work closely with 

development partners, 

including hosting donor 

conferences at global, 

regional and bilateral levels. 

Compile and maintain the 

database on WCO projects 

and its funding sources while 

maintaining the 

accountability of projects 

under the name of the WCO. 


PTC, other Committees. 

Develop standardized 

monitoring tools and 

appropriate mechanisms 

(e.g. peer review). 


PTC, other Committees. 

PTC 

Develop standardized 

evaluation tools, 

benchmarking, and 

appropriate mechanisms 

(e.g. peer review). 

Examine experience with 

TRS for lessons learned. 


Integrity Sub-Committee 

Develop case studies or 

other research on PSI and 

destination inspection. 

Collect research on PSI and 

destination inspection from 

other international


Annex III to 



organizations or academic 

institutions. 

Building Block 10 - Integrity 


Core WCO Integrity 

Revised Arusha 

Integrity Sub-Committee 

principles. 

Declaration (2003). 

Review if these instruments 

Integrity Development adequately address Integrity 

Guide (2003, rev. 2007). issues, including but not 

limited to, management, 

human resource management 

and procurement. 

Compendium of Integrity 

Best Practices (2005, 

rev. 2007). 

Model Code of Conduct 

and Ethics (2002). 

Case Studies on 

Integrity. 

____________________ 

Explore joint actions with 

Customs stakeholders. 

Review to determine whether 

the instruments of other 

international organizations can 

be applied to certain activities 

of Customs administration, 

e.g., procurement. 

Review to determine whether 

the aspects of Integrity are 

well incorporated in other 

WCO programmes. 

III/19.

Customs in the 21ST Century

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