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Details of the Recently Adopted
WCO “Framework of Standards”
to Secure and Facilitate Global Trade
On June 23, 2005, the 166 members of the World Customs Organization (WCO) unanimously adopted the Framework of Standards to Secure and Facilitate Global Trade (Framework).
This is Part II of a multi-part series of summaries on the Framework, and highlights selected aspects of Section 2 (Benefits). See future issues of ITT for additional summaries.
Highlights of Section 2
The following are highlights of Section 2 (Benefits) of the Framework:
Nations/governments. One of the main objectives of the Framework is to secure and facilitate global trade against the threat of terrorism, which will enable international trade to contribute to economic growth and development. The Framework will also enable Customs administrations to facilitate the movement of legitimate trade and improve and modernize Customs operations.
Customs. One of the main thrusts of the Framework is to establish Customs-to-Customs network arrangements to promote the seamless movement of goods through secure international trade supply chains. These network arrangements will result, inter alia, in the exchange of timely and accurate information that will place Customs administrations in the position of managing risk on a more effective basis.
The application of the Framework will also enable Customs administrations to create the opportunity to eliminate duplication and multiple reporting requirements. The Framework has also been structured to enable Customs administrations to implement the Framework at different speeds, in line with their own unique conditions.
Business. Authorized economic operators1 (AEOs) will reap benefits, such as faster processing of goods by Customs, e.g., through reduced examination rates. This will ensure that AEOs see a benefit to their investment in good security systems and practices.
1 An AEO is a party that has been approved by or on behalf of a national Customs administration as complying with WCO or equivalent supply chain security standards. AEOs include inter alia manufacturers, importers, exporters, brokers, carriers, consolidators, intermediaries, ports, airports, terminal operators, integrated operators, warehouses, and distributors.
(See ITT’s Online Archives or 07/19/05 news, (Ref: 05071910), for Part I.)
WCO Framework (dated June 2005) available at http://www.wcoomd.org/ie/En/en.html
WCO Framework also available from U.S. Customs and Border Protection (CBP) at http://www.cbp.gov/linkhandler/cgov/import/communications_to_industry/wco_framework.ctt/wco_framework.pdf
Published in ITT on July 20, 2005
[Ref: 05072010]
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