Sang Sinavith, Deputy Director Department of Planning, Technique and International Affairs The General Department of Customs and Excise

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GGeneral Department of Customs and Excise of Cambodia (GDCE)

PPurpose of Presentation:

To provide an overview of the Strategy and Work Program on Reform and Modernization of the GDCE (2014- 2018), the Five Year Strategic Plan of the GDCE.

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TThe GDCE's Mission is to: expedite and facilitate legitimate trade and travel, collect and increase government revenue, ensure fair economic competition, enhance social safety and national security, and sustain the economic development and viability of Cambodia.

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The Vision of the GDCE is to become a modern

Customs Administration that meets international

standards and best practices and that is recognized

both internationally and within Cambodia for its

administrative and operational efficiency and high

quality of service to stakeholders.

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Transparency Accountability Integrity and Discipline Professionalism Teamwork

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1. Revenue Mobilization 2. Compliance and Enforcement 3. Trade Facilitation 4. Modernization/Automation of Customs

Procedures 5. Governance and Human Resource

Management

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OObjective: The GDCE will achieve the Royal Government of Cambodia’s revenue collection targets through implementation of the Ministry of Economy and Finance Mid Term Revenue Mobilization Strategy (MTRMS). The GDCE’s goal is to increase customs revenue as a percentage of GDP by 0.5% annually.

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AActivities 1. Strengthening the Customs Clearance Process

(1) Enhancement of import-export documentation • Improving Manifest and Declaration Control Procedures • Strengthening Verification of Customs Valuation

(2) Identification and segmentation of risks • Risk Management • Customs Intelligence

(3) Expanding and Strengthening Post Clearance Audit

2. Prevention and Suppression of Customs Offences (Details included in Strategic Objective 2)

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AActivities (con’t) 3. Strengthening Supporting Processes

• Automation (ASYCUDA) • Cambodia National Single Window • Private Sector Cooperation Mechanisms • Human Resource Development • Internal Audit

4. Other Mid Term Revenue Mobilization Strategy (MTRMS) Measures • Assessment of Revenue Impact of ATIGA 2015 and other

FTAs • Law on Excise

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OObjective: Achieving compliance with customs (and other agency) requirements through measures to facilitate and encourage compliance and measures to deter and detect smuggling and other illegal cross border activities. Strengthening protection of the social and economic well-being of Cambodia..

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Activities: 1. Development of a Compliance and Enforcement

Strategy including a Risk Management Policy • measures to encourage and facilitate voluntary compliance • initiatives to prevent, detect and suppress intentional non-

compliance and illegal activities.

2. Development of a National Anti-Smuggling Policy and Action Plan • Set out roles and responsibilities, management accountabilities

and operational guidelines for anti-smuggling operations.

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Activities (con’t) 3. Expansion and Enhancement of Post-Clearance

Audit (PCA) Program • Increasing PCA Teams • Public Awareness • Expanded coverage • Improved risk management and selection • Cooperation with the GDT • Professional development of auditors

4. Strengthening the Customs Risk Management Database System (CRMDS) • Increased functionality • improved selectivity criteria • Linkages to ASYCUDA

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Activities (con’t) 5. Development of Joint Inter-Ministerial Prakas on

Risk Management • establish mechanisms for implementation of trade facilitation

policy through risk management • supports development of the National Single Window • common approaches to risk management in Government

6. Implementation of the WCO SAFE Framework of Standards • Customs Intelligence System development • Capacity building to counter trans-national crime • National Single Window • Authorized Economic Operator program (Best Trader

Program)

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OObjective: To contribute to Cambodia’s competitiveness in the world market by facilitating international trade flows, securing the international supply chain, and streamlining customs procedures. The GDCE will continue to take the lead in developing and implementing measures to improve inter-agency cooperation and coordination in provision of border services.

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AActivities: 1. Implementation of the National Single

Window (NSW) • The GDCE will manage the planning, development, and

implementation of the NSW in accordance with RGC policy and directions, the implementation plan of the ASEAN Economic Community 2015, and the ASEAN Single Window.

2. Expanding Use of Electronic Transactions • e-payment of duties and taxes, acceptance of electronic

copies of attached documents.

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AActivities (con’t) 3. Expansion of the Best Trader Program and

Development of the Authorized Economic Operator Program • Increase the number of BTP participants

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4. EExemption Regime Management • Development of more transparent and simplified

procedures for this regime • Implementation of automation • Improved management of statistics

5. Implementation of the ASEAN Trade in Goods Agreement (ATIGA) by 2015 • ATIGA implementation and assessment of Revenue

Impact of ATIGA and other FTAs

6. Implementation of Free Trade Agreements • With China, Japan, Korea, Australia, and India

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77. Implementation of the WTO Agreement on Trade Facilitation

• Conduct diagnostic study • Participate in preparation of accession documents • Develop action plan to implement obligations • Seek Technical Assistance

8. Strengthening Customs-Private Sector Partnership Mechanism (CPPM) • More frequent meetings, improved problem solving • Greater consultation on new developments.

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OObjective: Implementation of efficient and transparent customs procedures that meet international standards and commitments, support customs trade facilitation and compliance priorities, and are supported by modern Information and Communications Technology (ICT) systems and techniques.

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AActivities:

1. ASYCUDA World Geographic and Functional

Expansion • Developing e –payment and transit modules • Expanding electronic submissions and enhancing DTI

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22. Participating in International Conventions relating to Customs

• Continue to participate in existing agreements (Kyoto, Harmonized System etc)

• Consider joining Istanbul convention (containers), ATA carnet etc..

3. Administration of Rules of Origin (ROO) • Continue to cooperate with other Ministries and DPs in

developing systems and policies to support improved ROO administration.

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44. Streamlining Export Procedures (especially Textile Goods)

• Capacity building and training for GDCE staff and traders • Enhance working procedures between the GDCE and

Camcontrol (MOC) • Publication of booklet of customs export procedures for

textile industry

5. Conducting Time Release Study • Carry out another time release study in 2017

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Objective: Strengthening governance of the GDCE to ensure staff are performing their duties in a professional and ethical manner to ensure the development of the GDCE and its recognition as a modern customs administration.

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11. Strengthen Capacity Building Programs • The GDCE has developed and delivered training programs

to improve the customs management and technical skills - On the job training - In house classroom training - Overseas training

2. Implementation of Staff Performance Evaluation System

• A formal staff performance evaluation system have been developed based on modern principles of human resource management.

3. Implementing a More Transparent Rotation System for Customs Officers

• A new formal and transparent rotation system to be developed.

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44. Strengthening the GDCE’s Internal Audit Function • An action plan will be developed to strengthen the

Internal Audit function of the GDCE.

5. Encouraging and Promoting Physical Education • A program to improve health of customs staff will be

developed and continuing to work with the Military to provide military training to customs officers.

6. Infrastructure Investment Strategy and Plan • Conduct a national assessment of infrastructure • Develop an updated investment plan.

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THANK YOU