USAID/TIMOR-LESTE CUSTOMS REFORM PROJECT (USAID CRP)

Quarterly Report – Q2 FY21

January 1, 2021 – March 31, 2021

March 2021 This report is made possible by the support of the American People through the United States

Agency for International Development (USAID). The contents of this report were prepared by IBI International under IQC No. AID-OAA-I-12-00041; Task Order No. AID-472-TO-17-00001. The

views expressed herein are the sole responsibility of IBI International and do not necessarily reflect the views of USAID or the United States Government.

USAID/TIMOR-LESTE CUSTOMS

REFORM PROJECT (USAID-CRP)

QUARTERLY REPORT – Q2 FY21

January 1, 2021 - March 31, 2021

Table of Contents

Executive Summary... ............................................................................................................................................... 8

1. Project Overview .............................................................................................................................................. 11

2. Activity Progress, Achievements and Results ............................................................................................. 13

Outcome 1: Revised Kyoto Convention and the Framework of Standards to Secure and Facilitate

Global Trade Implemented ....................................................................................................................................... 16

Activity 1.1: Build Risk Management Capacity ............................................................................16

Activity 1.2: Streamline Procedures and Enhance Automation .....................................................19

Activity 1.3: Draft Cooperative Agreements ..............................................................................23

Activity 1.4: Develop and Implement Integrated Services ............................................................24

Outcome 2: World Customs Organization (WCO) Revised Arusha Declaration Implemented ........... 29

Activity 2.1: Support Implementation of the Organic Structure ...................................................29

Activity 2.2: Develop and Implement Anti-Corruption Activities .................................................31

Activity 2.3: Implement the Customs Strategic Plan ....................................................................37

Activity 2.4: Establish and Support Consultative Forums .............................................................39

Activity 2.5: Develop and Deliver Workplace Mentoring and Training .........................................39

Activity 2.6: Develop and Deliver Workshops, Seminars and Awareness Events ..........................41

Activity 2.7: Develop Outreach Materials ...................................................................................43

Outcome 3: National Trade Information Portal Operational ......................................................................... 47

Activity 3.1: Enhance the Customs Trade Portal .........................................................................47

Activity 3.2: Integrate Key Information within the CTP ...............................................................53

Activity 3.3: Prepare Policies and Procedural Manuals .................................................................56

Activity 3.4: Develop M&E Strategy to Measure CTP Impact on Trade ........................................56

3. List of Activities Planned for Q3 FY21........................................................................................................ 58

4. Cross-Cutting and Additional Activities ...................................................................................................... 60

5. Monitoring & Evaluation .................................................................................................................................. 62

6. Gender Considerations ................................................................................................................................... 63

7. Project Management ......................................................................................................................................... 64

Personnel Activities .................................................................................................................................................... 64

Operational Activities ................................................................................................................................................ 64

Training and Embedding Activities .......................................................................................................................... 64

8. Successes, Challenges and Lessons Learned ............................................................................................... 66

Successes ....................................................................................................................................................................... 66

Challenges ..................................................................................................................................................................... 68

Lessons Learned .......................................................................................................................................................... 70

9. Environmental Compliance and Mitigation Measures ............................................................................. 71

10. Suggested Steps Moving Forward ............................................................................................................... 71

Annex 1 - Performance Indicator Results ....................................................................................................... 73

Annex 2 - Anticipated Impacts and Linked Results ....................................................................................... 89

Annex 3 - Regulations, Procedures or Policies Developed and Implementation Status .................... 117

Annex 4 - Implementation of Enhanced Automation and Associated Impact ...................................... 129

Annex 5 – OGA Risk Profiles Developed and Implemented .................................................................... 136

Annex 6 – Impact of OGA Risk Profiles Implemented .............................................................................. 137

Annex 7 – Adjustments to OGA Selectivity Controls ............................................................................... 138

Annex 8 - Schedule of Training Courses Delivered to CA in Q2 FY21 ................................................ 139

Annex 9 - Financial Report ................................................................................................................................ 140

ACRONYM LIST

ABF Australian Border Force

AEO Authorized Economic Operator

AFP Australian Federal Police

AC Customs Authority Acting Commissioner

ACL Anti-Corruption Law

AEMTL Associação Empresarial das Mulheres Timor-Leste

ASYCUDA Automated System for Customs Data

ANATL Administration of Airports and Air Navigation of Timor-Leste

APORTIL Autoridade Portuáriu Timor-Leste

AW ASYCUDA World

AWJ Absent Without Justification

BNCTL Banco Nacional de Comércio de Timor-Leste

BNU Banco Nacional Ultramarino

CA Customs Authority

CAC Comissão Anticorrupção (Anti-Corruption Commission)

CCFM Consultative Council on Financial Management

CCN Cooperating Country National

CID Customs Intelligence Database

COP Chief of Party

COR Contracting Officer’s Representative

COVID-19 Novel coronavirus (2019-nCoV)

CPD Carnet de Passages en Douane

USAID-CRP Customs Reform Project

CREP Customs Revenue and Entry Processing

CSC Civil Service Commission

DAU Declaracao Aduaneira Unica

DCOP Deputy Chief of Party

DG Director General

DGCE Indonesian Directorate General of Customs and Excise

DGA Direcção Geral das Alfândegas

DL Decree-Law

DNARI National Directorate of Administration and Internal Resources

DOC (USAID) Development Outreach Communication

FAQs Frequently Asked Questions

FCL Full Container Loads

FRC Fiscal Reform Commission

FY Fiscal Year

GIZ Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH

GOTL Government of Timor-Leste

HRM Human Resources Management

HRMTU Human Resources Management and Training Unit

IBI IBI Corp.

ICT Information / Communications Technology

ICSO Integrated Clearance Service Office

IFMSU Integrated Financial Management Information System Unit

JICA Japan International Cooperation Agency

LCL Less than Container Loads

MAA Mutual Administrative Assistance

MAF Ministry of Agriculture and Fisheries

MOF Ministry of Finance

MOFLU MOF Legal Unit

MOH Ministry of Health

MOSS Ministry of Social Solidarity and Inclusion

MOTC Ministry of Transport and Communications

MTTI Ministry of Tourism, Trade and Industry

NCH National Customs Hotline

NEP National Enquiry Point

NDO National Directorate of Operations

NDAFL National Directorate of Administration, Finance, and Logistics

NDRM National Directorate of Risk Management

NDRMA National Directorate of Records Management and Archive

OGA Other Government Agency

PCA Post-Clearance Audit

PGR Prosecutor General Timor-Leste

PDHJ Provedoria dos Direitos Humanos e Justica (Ombudsman for Human Rights & Justice)

PNTL Polícia Nacional de Timor-Leste

POS Point of Sale

PSIK Polísia Sientífika ba Investigasaun Kriminál

RKC Revised Kyoto Convention

SAFE Framework of Standards to Secure and Facilitate Global Trade

SAMES Serviço Aútonomo de Medicamentos e Equipamentos de Saúde

SCR Special Career Regime

SoE State of Emergency

SOP Standard Operating Procedure

STTA Short-Term Technical Assistance

TFA Trade Facilitation Agreement

TLPDP Timor-Leste Police Development Program

TLTIP Timor-Leste Trade Information Portal

UNCTAD United Nations Conference on Trade and Development

UNICEF United Nations Children’s Fund

USAID United States Agency for International Development

USG United States Government

WCO World Customs Organization

WHO World Health Organization

WTO World Trade Organization

Executive Summary

This quarterly report highlights the accomplishments and challenges the USAID Customs Reform

Project (USAID-CRP) faced during the period January 1, 2021, to March 31, 2021 (hereafter referred to as Q2 FY21). In addition, this report includes data relating to the USAID-CRP’s fourteen (14) key performance indicators in Annex 1; and more comprehensive details on impacts and associated results, regulations developed and implemented, automation enhanced, Other Government Agency (OGA) selectivity, and impact, training and workshops delivered, and a breakdown of relevant financial

information in Annexes 2-9.

USAID-CRP continued to make excellent progress throughout this quarter, despite the ongoing State of Emergency (SoE) and the enactment of further, even more, robust SoE-related measures by the Government of Timor-Leste (GOTL) on March 8, 2021. These enhanced measures, including home confinement for non-essential personnel, closure of all non-essential businesses, and suspension of all

public transport, remained in place throughout March. USAID-CRP took several steps to ensure compliance with these measures, including authorizing all staff to work from home, temporarily halting the delivery of all in-person workplace mentoring, and postponing all planned training and outreach events (discussed in more detail in Section 8).

Despite these considerable challenges, USAID-CRP continued to deliver support and assistance to the Customs Authority (CA) and other stakeholders daily. The unwavering commitment and extraordinary resilience shown by the project team, the Government of Timor-Leste (GOTL), and private sector

counterparts, was critical to ensuring that the GOTL could maintain and operate cross-border supply routes, including Dili Seaport, throughout this period.

Quarterly data extracted from ASYCUDA World (AW) shows the average clearance time for goods processed through Dili Seaport was 3.56 days. This time frame represents a slight increase when compared to last quarter’s average of 3.2 days. Even so, a clearance time of 3.56 days still represents a 60% reduction compared to the average nine (9) days it took when USAID-CRP commenced activities in

2017. The slight increase in processing time appears to have been caused by the enhanced SoE-related

measures introduced in March 2021. For example, because of these measures, the two banks that process customs-related payments were closed for a whole week. Despite CA operating at reduced capacity during this period, the trading community could not make any customs-related payments, meaning no goods could be physically released. AW data shows that the average clearance time from March 8, 2021 to March 14, 2021 was 5.81 days. Removing data for the period affected by the enhanced

SoE-related measures yields an average clearance time for goods processed of 3.25 days. This is very similar to the clearance times achieved in the preceding quarter (discussed in more detail in Section 2).

In addition to providing day-to-day workplace or remote support, USAID-CRP drafted two new

Standard Operating Procedures (SOPs); made substantial progress on developing the new Customs

Trade Portal (CTP); and finalized all technical and outreach-related activities and materials in advance of the Hotline launch event. Further information on project successes is available in Section 8.

Following analysis of data from AW, assessment of CA documents, and workplace assessments, the project team confirmed that both the CA and private sector stakeholders continue to use a broad range of previously implemented activities without the need for USAID-CRP encouragement or intervention.

The activities collectively developed and implemented by the project team, CA, and other counterparts

during this quarter played a direct role in achieving the following results:

• The average clearance time for goods remained low at 3.56 days, despite the significant turbulence caused by the additional SoE-related measures imposed in March 2021. This represents a 60%1 reduction when compared to 2017.

• 63% of all goods processed through Dili Seaport did not require any physical or documentary

examinations (i.e., routed through the green lane).

• Despite the overall number of consignments inspected remaining low, CA still applied thirty-one (31) penalties, which resulted in an additional $31,000 in revenue. This suggests that CA is effectively targeting the correct consignments.

• The CA collected an additional $13,116 in revenue using the AW automated facility, which

identifies and applies a 5% fee to “out of time” consignments.2

• Operators saved around twenty-seven (27) working days’ worth of time3 processing electronic requests to move containers (Gate Pass facility within AW);

• The CA undertook three hundred and twenty-six (326) fewer physical inspections of vehicles, representing a time savings of over100 full working days4 for the private sector.

1 The average time for clearance of goods through Dili Seaport in 2017 was 9 days. 2 Since implementation in August 2018, additional fees totaling $348,378 have been applied to a total of 568 different consignments. 3 Inquiries made with the private sector identified that the previous paper-based application would take around 4 days to complete, whereas the new automated process takes less than 1 day. Since implementation in February 2020, this facility has been used forty-seven (47) times, reduced delays for the private sector by around one hundred and forty-one (141) working days. 4 On average, the physical examination of a vehicles can take around 2.5 hours. In terms of savings for the CA, this figure is essentially doubled, as at least two CA officers must attend every inspection. Since implementation in July 2020, these changes have resulted in 1,002 fewer inspections of vehicles.

• Via the Help Desk, the CA and USAID-CRP provided approximately one hundred and eighty (180) members of the private sector with onsite technical advice;5

• The CA processed two hundred and seventy-three (273) diplomatic bags using the new SOP, representing potential savings to Diplomatic Missions of around $30,000;6

• The CA undertook twenty-three (23) fewer physical inspections of health and environment-related consignments, representing a time savings of over 11 full working days7 for the private sector; and

• Overall declaration error rates8 remained very low at Dili Seaport, Suai, and Batugade (around

10%).

At the time of writing (April 28, 2021), GOTL9 is considering issuing a further SoE. This SoE would continue into early June 2021. Despite the inevitable delays that this would create, the project team remains confident that USAID-CRP can still make progress and bring many activities to a successful conclusion.

With USAID-CRP approaching its final few months, the project team will focus on finalizing and implementing existing tasks, including the implementation of existing SOPs, such as the import and export procedures; the integration of APORTIL and MAF into the import procedure; the finalization and approval of the job descriptions and organizational structures; the approval and launch of the Five-Year Strategic Plan; the launch of the Customs Hotline; and the finalization and launch of the Customs Trade

Portal (CTP).

* * * *

5 Following implementation in February 2020, the help desk facility has provided face-to-face advice to approximately 3,000 members of the private sector, including importers and Customs Brokers. 6 Customs Brokers fees can vary but tend to be in the region of $100 in Dili. The new procedure has now been used just under 800 times to process diplomatic bags since January 2020. 7 By any conservative estimation, the physical examination of a containerized consignment can take at least 4 hours to complete. In terms of savings for the CA, this figure is essentially doubled, as at least two CA officers must attend every inspection. Since implementation in July 2020, these changes have resulted in 175 fewer inspections. 8 Analysis of data extracted from AW indicate that, prior to USAID-CRP staff being embedded within key areas in 2019, general declaration error rates were around 50% at Dili Seaport, and 95% at Batugade and Suai. 9 Government of Timor-Leste (April 21, 2021). “Meeting of the Council of Ministers on April 21st, 2021.” Available at: http://timor-leste.gov.tl/?p=27737&lang=en. Last accessed: April 28, 2021.

1. Project Overview

Background

The USAID-CRP is a USAID-funded and -developed program following a request for assistance from the

GOTL. The primary objective of the USAID-CRP is to professionalize the CA and help bring it into compliance with relevant national laws and international standards. On June 1, 2017, USAID/Timor-Leste awarded IBI a three-year contract to implement the newly funded USAID-CRP. On September 4, 2019, USAID extended the contract in scope to include working with relevant Other Government Agencies (OGAs); and in duration until September 29, 2020. On August 12, 2020, USAID further

extended the contract until July 29, 2021, due to delays caused by the COVID-19 pandemic.

Summary of Outcomes

The project is broken down into three closely related Outcomes which assist the GOTL in creating a more effective business enabling environment; promoting both domestic and foreign investment in the country; and helping to raise non-oil and gas revenues:

• Outcome 1: Revised Kyoto Convention and the Framework of Standards to Secure and Facilitate Global Trade Implemented

Risk management and Post-Clearance Audit (PCA) form the foundation of a modern compliance management strategy in line with international standards and conventions. In a mature regulatory environment, such management addresses supply chain security, enhances revenue streams, and

rewards the voluntary compliance of traders by expediting their shipments and providing them with a competitive edge in the marketplace. This mutually beneficial customs-to-business partnership is essential for successful compliance management.

This outcome is also responsible for drafting or streamlining new or existing procedures, regulations, or laws that help to maximize efficiencies in how Customs operates. In addition to conforming to

the World Customs Organization (WCO) Revised Kyoto Convention (RKC) and WCO SAFE Framework of Standards to Secure and Facilitate Global Trade (SAFE), these activities will also help

bring the Customs Authority into compliance with the World Trade Organization (WTO) Trade Facilitation Agreement (TFA).

• Outcome 2: WCO Revised Arusha Declaration Implemented

The Customs Authority was officially inaugurated on September 30th, 2017, after years of being

known as the Direcção Geral das Alfândegas (DGA). Assessments concluded that the organization is continually plagued by allegations of corruption and low workforce morale. In addition to paying low salaries, the CA rarely rewards managers for their initiative or high performance and routinely tolerates low-performing staff. As a result, those seeking to engage in modernization faced resistance

from bureaucratic inertia, subversion, and even defiance. In early 2017, the GOTL committed to implementing the WCO Revised Arusha Declaration within Customs. Experts widely accept the tenets of the Declaration as the foundation for effectively tackling corruption and increasing the level of integrity within Customs. This Component focuses on helping to improve the new CA through the whole-scale modernization of its Human Resources Management (HRM) practices and introducing many new procedures and systems to help identify and tackle corruption.

• Outcome 3: National Trade Information Portal Operational

This activity primarily aims to ensure that Timor-Leste importers and exporters can easily access all trade-related information within one online repository. Consequently, this Outcome will support the CA in its efforts to enhance the existing Customs Trade Portal (CTP) to promote transparency and predictability of trade procedures by providing greater assurance that the information on the

website is accurate. In addition to bolstering confidence, this will also help increase compliance and reduce the cost of doing business. Enhancing the CTP to bring it in line with a modern trade portal is a vital first step towards the creation of the National Single Window (NSW) and a key requirement of the WTO TFA and the Association of Southeast Asian Nations (ASEAN) Trade in Goods Agreement (ATIGA).

2. Activity Progress, Achievements, and Results

This section highlights key progress CRP made in Q2 FY21, along with achievements and associated

results. Additional information relating to the project’s fourteen (14) key performance indicators is available in Annex 1. This report includes examples, impacts, and results achieved following USAID-CRP technical assistance. A more comprehensive breakdown of the anticipated impacts and corresponding results of USAID-CRP activities is available in Annex 2.

This report describes key activities undertaken in Q2 FY21 under relevant outcome headings, except for average clearance times and savings to the trade in storage fees (discussed below). Additional information and corresponding source data supporting the project teams’ assessments, findings, or

assertions is available in Annexes 3 to 8.

• Average Clearance Times

Quarterly data extracted from AW shows that the average clearance time for goods processed through Dili seaport was 3.56 days. This represents a slight increase compared to the 3.2 days it took to process goods in Q1 FY21. Even so, 3.56 days still represents a 60% reduction when

compared to the average nine (9) days it took when USAID-CRP commenced activities in 2017.

This slight increase in processing time appears to have been caused by the enhanced SoE-related

measures being introduced on March 8, 2021. These measures included all non-essential personnel working from home and non-essential places of businesses closing. As a result of these measures, the two banks that process customs-related payments, Banco Nacional de Comércio de Timor-Leste (BNCTL) and Banco Nacional Ultramarino (BNU), were closed for an entire week. This meant that no customs-related payments could be made, and no goods

could be physically released despite CA operating a reduced workforce. AW data shows that the average clearance time from March 8, 2021 to March 14, 2021was 5.81 days. The banks

reopened on March 15, 2021, but only operated on a half-day basis until end-March 2021. AW data shows that the average clearance time from March 15, 2021, to March 28, 2021, was four

days. If data for the periods affected by the enhanced SoE-related measures is removed – i.e.,

from March 8, 2021, to end-March 2021 – then the average time is reduced to 3.25 days, which is very similar to the clearance times achieved in the preceding quarter (Q1 FY21).

• Savings to the Trade

The new, quicker clearance times saved the trading sector approximately $1.3 million in storage fees for goods processed through Dili Seaport in 2020.

The project identified this figure using reports from Autoridade Portuáriu Timor-Leste (APORTIL).10 It shows that revenue collected from Dili Seaport was $1.3 million lower in 2020 than in 2019. Revenue collected by APORTIL is mainly generated from storage (also known as

demurrage) fees. Customs applies these storage fees once a container has been in the port for more than five days, charging $25 per day for a 20’ container and $60 per day for a 40’ container.

The APORTIL President claimed that this reduction was due to COVID-19; however, AW data

shows that the number of containers processed through Dili Seaport in 2020 was 35% higher

10 Tatoli (February 2, 2021). “Tinan 2020, APORTIL konsege rekolla reseita millaaun $2.5m." Available at: http://www.tatoli.tl/2021/02/02/tinan-2020-aportil-konsege-rekolla-reseita-millaun-25/. Last accessed: April 28, 2021.

when compared to 2019. Despite this increase in the overall number of containers processed, the AW data shows the number of containers that were in the port for more than five days – and thereby subject to storage payments – decreased by 40%. These findings shown in the diagram below are likely the primary cause for the reduction in APORTIL revenue.

Graph: Number of containers in Dili Seaport for more than five days

Outcome 1: Revised Kyoto Convention and the Framework of Standards to Secure and Facilitate Global Trade Implemented

Activity 1.1: Build Risk Management Capacity

Due to enhanced SoE-related measures introduced in March 2021 mandating essential staff only, Customs cut its risk management team down to the National Director and team leader of the Risk Analysis department for the final month of this reporting quarter.

• Risk Profiles

USAID-CRP provided ongoing workplace or remote support to the risk management team throughout this quarter. The project team observed that CA staff now routinely identify relevant risks by examining information, such as import data within ASYCUDA World and records of penalties issued for undervaluation, misclassification, or other errors. As a result, the CA has now fully moved away from targeting generic types of goods, such as rice, and only

selects particular importers or brokers with a demonstrable record of non-compliance:

Image: Example of generic vs. targeted risk profiles

This represents an essential change in mindset and behavior from CA staff who now routinely embrace and apply the fundamental elements of risk management without the need for USAID-CRP intervention. As a result, businesses that work hard to follow the regulations enjoy quicker clearance times, while those that try to flout the rules are now actively targeted for further attention.

Per the risk management SOP that USAID-CRP helped develop and implement in July 2019, CA

staff created a further (19) new risk profiles during this quarter. The project team observed that CA staff routinely develop, approve, and implement new profiles within AW with minimal assistance. This suggests that this critical procedural element is fully implemented and institutionalized within the organization. Since USAID-CRP support commenced, CA has developed and implemented forty-nine (49) new risk profiles utilizing the new SOP, which is far

more than the 5 (five) generic profiles created and implemented by UNCTAD in 2019, when selectivity within AW was activated.

• Deactivation of Risk Profiles

During this period, the project team observed that two (2) risk profiles had been inadvertently deactivated within AW because the CA team did not extend them before they expired. This

error occurred because most of the risk management team was working from home and did not have access to the sensitive data that shows expiry dates for the risk profiles. This issue appears to have had minimal impact upon operations because, at the same time, most imports were either suspended or delayed due to the enhanced SoE measures. The project team discussed this matter with the National Director and crew, and CA has since introduced additional steps

to prevent this from happening again. Measures include CA staff now regularly accessing AW to track risk profile expiry dates and then taking actions to extend them before they lapse where appropriate. During Q3 FY21, the project team will discuss opportunities with CA and UNCTAD to develop an automated alert within AW that will notify the CA team of risk profiles due to expire.

• Facilitation of Legitimate Trade

Through the efforts of USAID-CRP and the CA, risk management is increasingly an institutionalized practice within the CA. Due to these efforts, Customs assessed an average of

63% of consignments to be legitimate and subsequently facilitated by way of the “green lane” within AW averaged 63% during this quarter. This reflects a slight reduction of the 67% average

green lane achieved in Q1 FY21 but remains well within the USAID-CRP end-of-project target

of 40%.

• Random Selectivity

This slight decrease in the number of goods routed through the green lane was caused by CA activating “random selectivity” within AW. Random selectivity is a crucial element of the risk management strategy, as it allows CA –via parameters set within AW– to randomly select a percentage of consignments for the red, yellow, or blue lanes that would have otherwise been sent through the green lane. As a result, CA can confirm that the consignment did not present a

risk and should have been routed through the green lane. If an issue is discovered, risk profiles can be adjusted or created as appropriate. The activation of random selectivity is another positive step for CA and shows that the organization’s risk management capacity continues to mature. This new part of the selectivity process is highlighted in the gray-colored box below:

Image: Random selectivity process flow within AW

During Q3 FY21, the project team will work with CA to review the random selectivity percentages11 that have been set to see if it may be feasible to reduce them further. Any reduction will be determined by the number of errors subsequently identified from random selectivity consignments. In other words, if random selectivity resulted in very few additional penalties being issued, then it may be appropriate to introduce a new scope to reduce risk parameters, resulting in an increase in green lane. Conversely, if most of the scrutinized

declarations contain errors, it may be appropriate to increase random selectivity. This would result in more goods being selected for examination and a corresponding reduction in the percentage of goods being processed through the green lane; average clearance times would likely increase as a result.

• Post Clearance Audit

Following the enhanced SoE-related measures commencing on March 8, 2021, the AC identified the PCA team as non-essential staff required to work from home for the last month of this reporting quarter. Nonetheless, the team still completed seventy-six (76) desk-based audits, resulting in the CA issuing ten (10) penalties for minor errors. The total additional revenue collected was $3,050. USAID-CRP purposefully drew down the delivery of assistance to the

PCA team during this quarter to allow them to lead this activity. Instead of regular embedding, the project team held a weekly meeting with the PCA team to confirm that staff was not facing any difficulties in their day-to-day work. USAID-CRP also confirmed that the PCA team was routinely using the new SOP and associated reporting templates that the project team had helped to draft and implement in August 2019 without the need for any technical intervention.

The CA has now undertaken five hundred and forty-four (544) PCA audits utilizing this new SOP. As such, the CA has already surpassed the project target to complete 500 audits by the end of the project term. The project team is confident that the new PCA SOP is fully implemented and institutionalized within the CA and that the CA will continue to apply it after USAID-CRP has finalized its activities.

Activity 1.2: Streamline Procedures and Enhance Automation

• Expedited Import and Release Procedure for COVID-19 related Vaccines (CV4)

USAID-CRP and the CA jointly developed and finalized a new SOP for the expedited import and

release of COVID-19 related vaccines. Before the AC officially approved the new procedure on March 22, 2021, USAID-CRP met remotely with members of the international community

11 This report does not disclose the random selectivity percentages currently set within AW for the red, yellow, and blue lanes as they are confidential and public disclosure could compromise the overall effectiveness of CA’s risk management strategy.

involved in the pandemic response, including the World Health Organization (WHO), United Nations Children’s Fund (UNICEF), and the Australian Embassy, to discuss and share content. This partner collaboration helped ensure that the new procedure was fully compatible with relevant standards and effective in practice. This new SOP will be disseminated to the Ministry of Health and CA staff and implemented before the first batch of 24,000 COVID-19 vaccines arrive at Dili International Airport on April 5, 2021:

Diagram: Overview of new CV4 SOP

• Clearance of Dutiable Goods in Travelers Accompanied Baggage

This quarter, CA continued to routinely apply the simplified IT4 declaration procedure without the need for any USAID-CRP intervention or support. The IT4 procedure, which is included within the Clearance of Dutiable Goods in Travelers’ Accompanied Baggage SOP that USAID-CRP helped develop and implement in March 2018. This means travelers arriving in Timor-Leste can quickly and easily declare any goods valued at more than $300 as duty-free allowance. The

new procedure also means that a customs broker is no longer required to help process the

declaration. This change results in average savings of around $100-$150 for travelers arriving in Dili and about $50 for those coming in via Suai or Batugade. Due to the ongoing SoE-related restrictions on travel, the IT4 procedure was only used thirteen (13) times during this quarter;12 however, since implementation in March 2018, the CA has applied this new procedure over 4,000 times and saved travelers an estimated $360,000 in customs broker fees alone. The project team will continue to monitor the situation in Q3 FY21 periodically; however, the

project team is satisfied that the CA has now fully implemented and institutionalized the IT4 procedure.

• Container Transfer between Customs Controlled Areas.

The private sector and CA successfully applied the AW container pass facility nine (9) times during this reporting quarter without any assistance or intervention by the project team.

Included within the Container Transfer between Customs Controlled Areas SOP that USAID-CRP helped develop in July 2019, this new facility enables the private sector to electronically request approval from CA within AW to transfer containers from customs controlled-areas, such as Dili seaport, to privately controlled depots. In addition to making the request and approval procedure more efficient and secure, overall supply-chain security has also been

enhanced as it enables the CA to electronically monitor and audit the movement of containers outside of customs-controlled locations. Following implementation in February 2020, this facility has been used forty-eight times and has reduced processing times for the private sector by approximately 144 working days.13 In February 2021, the CA approved the expanded use of temporary storage facilities to include the processing of Full Container Load (FCL) containers

(described in more detail under the next heading). As a result, the project team and CA anticipate that the use of the container pass facility will increase significantly during Q3 FY21, meaning further savings to the private sector. USAID-CRP will continue to monitor the situation; however, the project team is satisfied that the CA has now fully implemented and institutionalized the container pass facility and that the CA and the private sector will continue

to use it after the USAID-CRP has concluded its activities.

• Expanded use of Places of Temporary Storage

In February 2021, the AC approved the expanded use of temporary storage places to include

the processing of FCL containers. USAID-CRP assisted the CA in preparing for the arrival of these containers by identifying and nominating six (6) CA staff for training and will be based full

time at the facility. The project team also provided ongoing guidance to the facility operator on

12 During this quarter, the IT4 procedure was used eight times in Batugade, four times in Dili, and once in Suai. 13 Inquiries made with the private sector identified that the previous paper-based application would take around four days to complete, whereas the new automated process takes less than one day.

areas that required upgrading, including access to larger office space for CA and access to computers linked to AW. With preparations finalized in March 2021, the facility operator will now commence transferring FCL containers to the newly approved facility in Q3 FY21. The project team will continue to support this activity during Q3 FY21 to ensure that the CA and the private sector fully implement and take full ownership of the new process. Once implemented, the facility operator anticipates transferring around 100 containers per week from

the Dili seaport to the storage facility. Doing so will help significantly reduce storage and movement burdens currently experienced within the port areas.

• Clearance of the Diplomatic Bag from Accredited Diplomatic Missions

CA processed two hundred and seventy-three (273) consignments14 of diplomatic goods using the new procedure that USAID-CRP helped develop and implement in January 2020. The

project team observed that the CA has taken full ownership of this new process and successfully applied it throughout this quarter without any assistance from the project team. USAID-CRP will continue to monitor the situation in Q3 FY21, but CA has demonstrated its ability to operate this process entirely independently of the project team, suggesting that the CA has fully institutionalized and will continue to apply the process following the conclusion of USAID-CRP

activities.

• Automated Collection of Fees

The CA collected an additional $13,116 during this quarter following the automated application of fees to 118 consignments. Calculated at 5% of the overall value of the consignment, CA imposed these fees because the importer had failed to lodge a CA declaration within the legally

mandated timeframe.15 Since implementation in August 2018, additional fees totaling $348,378 have been applied to 568 different consignments. USAID-CRP assistance made the CA’s application of these fees and associated collection of additional revenues possible. This support includes helping the CA develop and implement revised guidelines on applying the fees and assisting UNCTAD to develop additional AW functionality that results in consignments

being automatically identified and additional fees calculated and applied. CA has consistently demonstrated its ability to apply this new process without any intervention by the project team. USAID-CRP will continue to monitor the situation during Q3 FY21; however, all indications are

14 Two hundred and sixty-seven (267) diplomatic bags were processed at Dili Airport, and six (6) at Dili Seaport. 15 Per the Customs Code (Decree-Law 14/2017), following the arrival of the goods within the territory of Timor-Leste, importers or their representatives have 20-business days to submit a declaration for goods arriving by land or by air and 30-business days for goods arriving by sea.

that the CA has now fully institutionalized this process and will continue to apply it once the USAID-CRP activity comes to an end.

• Automated Allocation of Examiners

Following a successful launch within the Customs Revenue and Entry Processing (CREP) unit, the project continued to work with the CA and UNCTAD to implement the AW “automated allocation of examiner” functionality at Dili Seaport and privately operated places of temporary

storage. The CA and USAID-CRP continued to make progress with the AC approving the use of this functionality; however, pre-implementation training that the CA planned for this quarter was postponed by the CA Training Unit due to the SoE-related measures imposed in March 2021. The project team will finalize the implementation of this activity during Q3 FY21.

• Enhanced use of AW Functionality

The project team observed that CA continued to routinely utilize the nine different types of enhanced AW functionality that USAID-CRP previously helped CA and UNCTAD develop and implement. These changes are now fully institutionalized within the CA. USAID-CRP concludes that because this new functionality resulted from changes made to the existing AW operating system, it is doubtful they will be withdrawn or rolled back. The CA could only do so by making

further changes to the AW system, which would require technical assistance from UNCTAD. USAID-CRP will continue to assist CA in monitoring the situation throughout Q3 FY21 to ensure no technical glitches or other issues. This additional functionality is described in more detail in Annex 4.

Activity 1.3: Draft Cooperative Agreements

• Joint Cooperation Memorandum of Understanding

Following a further request from the AC, USAID-CRP helped the CA prepare a training program that was later discussed and incorporated within the Joint Cooperation Memorandum

of Understanding (MOU) between the Indonesian Directorate General of Customs and Excise (DGCE) and the Timor-Leste CA. After the CA identified priority training areas, the project team helped CA staff identify necessary curriculum content and develop an overview of courses and duration. To avoid potential duplication of efforts, CA worked with the project team to ensure requested training would add value to training already delivered or planned for delivery

by USAID-CRP. USAID-CRP postponed further discussions regarding the training plan and associated MOU during this quarter at the request of the DGCE, which appointed a new Director-General in March 2021 and wanted additional time to review existing materials. CA informed the project team that the DGCE anticipates delivering most training remotely;

however, it is unclear how DGCE will accomplish this given current internet and equipment limitations within the CA. This level of detail will likely be identified and formalized within the MOU. As resources permit, USAID-CRP will continue to support this activity in Q3 FY21 to ensure that mechanisms are included within the MOU that help to embed any future training program within CA and thereby make it more sustainable.

• Ministerial Despacho on Working Hours

The AC informed USAID-CRP that new developments had overtaken the Inter-Ministerial Despacho (ID) to standardize operational working hours between CA, the Ministry of Agriculture and Fisheries (MAF), and the Ministry of Interior (MOI). In February 2021, the Minister of Transport and Communications (MTC) and the Ministry of Interior (MOI) approved new measures prohibiting the movement of heavy-duty container lorries from circulating on the

streets of Dili from7-9am, 12-2pm, and 5-7pm. The AC informed the project team that CA would observe the implementation of the new arrangements over the next 8-12 weeks to brief the MOF on the challenges it posed to CA operational activities. The AC advised the project team that if the new arrangements create significant delays or challenges, the CA will press the MOF to adjust or rescind these MTC /MOI-related measures.

As a direct result, it is doubtful that the ministries mentioned above will make substantive progress on the ID to standardize working hours within the remaining term of the USAID-CRP activity. If challenges or issues make it appropriate to challenge the MTC /MOI measures, USAID-CRP will assist CA in recommending certain adjustments as needed. This would likely include provisions within the original ID that USAID-CRP helped CA develop, including

coordinated working hours between GOTL agencies and staggered lunch breaks.

Activity 1.4: Develop and Implement Integrated Services

• OGAs Integrated within the Import Procedure

AW data shows that the trading and government sector continued to benefit following USAIDCRP assisting CA in integrating the Ministry of Health (MOH), Ministry of Transport and Communications (MOTC), and Ministry of Tourism, Trade, and Industry (MTTI) within the import procedure. CA is still effectively targeting regulatory risks relating to these three OGAs, following the project team assisting CA in developing and implementing appropriate risk profiles

within AW. AW also confirms that CA continues to successfully undertake control checks on behalf of these OGAs when consignments are flagged for inspection. For example, the CA now routinely checks vehicles on behalf of the MOTC and paperwork and permits on behalf of MOH and MTTI.

As a result of CA working with the project team to streamline OGA risks, the trading community continues to achieve significant savings in workforce hours and time expended. Full details of these savings are detailed in Annex 7; however, a summary of results for goods processed through Dili Seaport for the period: July 19, 2020, to March 31, 2021, is shown in the table below:

OGA Type of Goods Result

# of 8 hour working days saved in Trade

# of 8 hour working days saved in GOTL

# of 8 hour working days saved in Total

MOH • Narcotics

• Narcotic medicines • Controlled medicines • Precursor Chemicals

155 fewer consignments routed red lane.

78 155 233

MOTC • Motor vehicles for the transport of ten or more persons, including the driver.

• Motor vehicles for the transport of goods

1,002 fewer vehicles routed red lane.

313 626 939

MTTI • Ozone-depleting substances

20 fewer consignments routed red lane.

10 20 30

1,177 fewer examinations

401 days

801 days

1,202 days

Table: Summary of savings in working days to the trade and GOTL

The project team is unaware of any concerns raised by either GOTL or the private sector following the CA integrating these three OGAs. USAID-CRP considers this integration a success due to the savings that have resulted from these changes. The project is also

confident that these positive changes are here to stay. The National Director of Risk Management and the AC would need to approve the deactivation of these risk profiles to roll back the changes. When the project factors in the ever-increasing understanding and use of risk management by CA, there is no indication that this may occur. Future changes will likely focus these risk profiles being further streamlined, resulting in additional savings to

the trade and GOTL.

• Integrated Import Procedure

With help from the project team, the CA finalized the new import procedure and submitted it to the AC for formal approval. This SOP has undergone multiple changes over the last 18 months to account for additional upgrades introduced over an extended period. These changes include the integration of the nine different types of AW functionality (identified in Annex 4), integration of OGA risks (identified in more detail above), and changes in

operational sequencing, meaning payment is now made at the end of the import process as opposed to the beginning. In practical terms, this long-term approach to introducing smaller, albeit essential, changes in a piece-meal fashion means the import procedure has mostly already been adjusted. Approval of the new SOP by the AC will formalize changes that are already being applied daily. The integration of APORTIL is the only other difference in the

SOP that the CA has not already implemented. This is discussed in more detail below.

The project team still needs to implement one further change to the import procedure, namely integration of the Ministry of Agriculture (MAF). With limited time remaining on the USAID-CRP activity, the project team and CA have decided to finalize and submit the new import SOP for approval by the AC without securing MAF integration at this point. Once

the MAF agrees to these, then USAID-CRP can help the CA develop a revised import procedure that will then be sent for further approval. This is discussed in more detail below.

• APORTIL

This quarter the project made further progress with the APORTIL. The APORTIL President and the AC reached a verbal agreement to delegate the responsibility of issuing the CA port

Exit Note to APORTIL. Now, the trading community can go straight to APORTIL to settle any storage-related fees once payment of customs-related duties and taxes is made. APORTIL can then issue the Exit Note, and the goods can be immediately released.

The exiting process necessitates the customer going to APORTIL (post-payment of customs duties and taxes) to pay for storage. APORTIL gives the customer an APORTIL release note

which the customer must take to CA. At this point, CA issues an Exit Note which must be returned to APORTIL for verification. The new process not only makes the use of the APORTIL release note redundant, but it also requires APORTIL staff to utilize AW per Government Resolution Number: 24/2017 (which requires OGAs to use AW as part of the National Single Window effort).

As efforts ramped up to implement this new process, APORTIL upgraded their internet

bandwidth and identified staff for appropriate training. As a result of this progress and the prior verbal agreement on these changes between CA and APORTIL, the revised process was included within the new import procedure sent to the AC for approval. At no fault of

APORTIL or the CA, this training was postponed due to the enhanced-SoE related measures coming into force in March 2021. As a result, these changes could not be implemented within this quarter. Despite this setback, the project team and CA remain confident that training and implementation will occur in Q3 FY21. This continued implementation will help integrate APORTIL within the import procedure and require them to utilize AW daily.

• Ministry of Agriculture and Fisheries

In partnership with UNCTAD, CA and the project team have now completed all preparatory work needed to integrate the Ministry of Agriculture and Fisheries (MAF) within the import procedures, including developing a separate selectivity lane within AW. The project team also helped the CA compile a list of all goods currently subject to some

level of MAF control. Ideally, this list will be streamlined, as it appears to target some goods that are not relevant. However, this streamlining will be done in partnership with MAF as they retain overall regulatory control for certain goods. Once the appropriate parties update this list and activate within AW by way of a risk profile(s), relevant goods can then be targeted and routed to the new MAF selectivity lane. Once MAF has undertaken

appropriate controls, they can access AW and clear the goods in the system. In some cases, and depending upon the type of goods involved, CA could undertake these controls on behalf of MAF. However, this change would also require prior agreement between CA and MAF.

Despite regular and sustained efforts, the project team and CA did not achieve any

substantive progress in securing a meeting with MAF to forward these activities. On the limited occasions that the project team did receive a reply from the MAF representative, it was to advise the team that the Serviço Quarentena Timor-Leste - the section of MAF responsible for controls on import and export goods - was focused upon the COVID-19 response. The AC reported similar difficulties, and written requests for meetings sent by his

office to MAF Secretary-General remain unanswered.

USAID-CRP will continue to assist CA on this activity in Q3 FY21; however, if no response or meeting is secured with MAF by the end of April 2021, the project team will work with the Mission to escalate the matter to the Ministerial level.

• Export Procedure

After completing the baseline assessment in Q1 FY21, USAID-CRP helped the CA

commence development of the new export procedure. To ensure the new process could work in practice, the project team and CA met with the two leading exporters of goods

from Timor-Leste on multiple occasions. These two companies, one of which exports coffee and the other scrap material for recycling, provided valuable feedback, which was later incorporated within the new export process design. The new procedure was mainly completed during this reporting period; however, discussions between the CA and project team and MTTI were postponed due to the enhanced SoE-related measures being enforced in March 2021. These discussions, which will now occur in Q3 FY21, will focus on

opportunities to integrate specific regulatory controls required by MTTI – such as payment of a “scrap” fee on the export of certain goods – within the new export procedure.

Outcome 2: World Customs Organization (WCO) Revised Arusha Declaration Implemented

USAID-CRP worked with CA throughout this quarter to provide remote guidance and mentoring to CA staff. As a result, the CA has taken full ownership of several activities intended to strengthen

integrity and good governance within the organization, including the use of internal audit, preparing for staff rotations, and twenty-one (21) new job descriptions for recruitment of leadership and management positions within CA.

Activity 2.1: Support Implementation of the Organic Structure

• Organizational Structures

To bring CA into compliance with the Organic Structure of the Customs Authority (DL: 09/2017), the project team assisted the CA in developing eighteen (18) organizational

structures. Following enactment of the new Organic Structure of the Customs Authority (DL: 02/2020) and the associated Nuclear Structure of Customs Authority Ministerial Diploma, both supersede DL: 09/2017, the project team had to adjust or completely redraft these structures. As a result, during this quarter, USAID-CRP helped CA to develop a total of twenty-three (23) new organizational charts. The team then shared these structures with the AC, who confirmed

that they aligned with DL: 02/2020 and the associated Ministerial Diploma. The AC advised that he will officially approve these structures once all new job descriptions have been updated (more below).

Image: New structure and number of positions for Dili Airport and Post Office

• Job Descriptions

To bring CA into compliance with DL: 09/2017, the project team assisted the CA in developing eighty (80) position-specific job descriptions. Much like the organizational structures following the enactment of DL: 02/2020 and the associated Ministerial Diploma, the project team had to adjust or redraft all these job descriptions. Consequently, USAID-CRP has since helped CA to develop a total of ninety-eight (98) new job descriptions that are now compatible with the new

law and diploma. This included the project team helping CA to finalize the following fifty-nine (59) job descriptions being finalized during this quarter:

– National Directorate of Operations (19)

– National Directorate of Risk Management (12)

– National Directorate of Customs Compliance Management (15)

– Internal Audit and Ethics Unit (3)

– Legal Unit (3)

– Appeals Unit (3)

– Customs Informatics and Statistics Unit (4)

In late March 2021, the AC advised the project team that, following an instruction from the MOF, USAID-CRP would need to re-draft these job descriptions using a new template. These

new job descriptions would need to include additional information, such as specific competencies, for each position. During this quarter, the project team worked with CA to develop and finalize a total of twenty-one (21) job descriptions (from the 98) using this new template. These job descriptions, which are detailed below, have now been formally approved by the AC:

– Four (4) National Director

– Six (6) Director of Unit

– Eleven (11) Head of Department

USAID-CRP will work with the CA in Q3 FY21 to finalize the remaining seventy-seven (77) job

descriptions and send these to the AC for comment and approval. Due to circumstances, the CA and the project team had to undertake this task through three separate sessions. Despite the additional impact upon project resources and understandable frustrations that this has caused, both the project team and CA remain confident that they will be able to finalize this activity and secure approval for and implement the new job descriptions.

• Special Career Regime and Training and Evaluation Regime

The project team continued to follow up with the AC and MOF Legal Unit (MOFLU) on the status of the CA Special Career Regime (SCR) and Training and Evaluation Regime (TER). Following promulgation of the new Organic Structure of the Customs Authority (Decree-Law 2/2020) in April 2021, the SCR and TER now each require enactment through separate Decree-Laws. The project team had previously assisted the CA in developing appropriate content for

inclusion within both laws and shared it with the MOFLU.

As a result of the MOFLU prioritizing other legal instruments, such as those intended to stimulate economic growth following the pandemic, CA made no significant progress in creating these new SCR or TER Decree-Laws. Determination of these types of priorities is outside the direct control of USAID-CRP, and it is now doubtful that MOFLU will make any substantive

progress in creating these two new Decree-Law’s within the remaining term of the USAID-CRP activity. The project team will continue to monitor this situation closely. If the MOFLU does commence developing these two new laws, USAID-CRP will assist the CA to socialize and implement as resources and remaining time permits.

Activity 2.2: Develop and Implement Anti-Corruption Activities

• Sector Integrity Vulnerabilities Assessment

USAID-CRP continued to advance the Sector Integrity Vulnerabilities Assessment (SIVA);

however, identifying persons willing to speak to the project team about integrity-related issues within CA was challenging. By the end of this quarter, USAID-CRP has now conducted comprehensive interviews with thirteen (13) individuals from various private and government sectors. Three (3) members of the Timor-Leste Women’s Business Association (AEMTL) had also agreed to participate. They later requested that USAID-CRP postpone these interviews

until GOTL rescinded the enhanced SoE-related measures introduced in March 2021. The

project team will finalize these interviews in Q3 FY21 and then develop the associated SIVA report. Once completed, USAID-CRP will then create an Integrity Action Plan (IAP).

• Code of Conduct

CA and USAID-CRP initially finalized this activity following the development of a new CA Code of Conduct (CoC), which the AC approved on June 5, 2019. Enacted by way of an

Administrative Instruction, this CoC became unenforceable following the promulgation of the new Organic Structure of the Customs Authority (Decree-Law 2/2020), which requires enactment of any new CoC by way of a separate Decree-Law. As a result, the project team assisted the CA and MOFLU in developing appropriate content for inclusion within a CoC-related Decree-Law. When work commenced on this activity in 2018, USAID-CRP could not

have anticipated this scenario. Despite the CA and project team’s best efforts to highlight the importance of this activity, MOFLU has prioritized the development of other legal instruments, such as those intended to stimulate economic growth following the pandemic. It is now doubtful that MOFLU will make any substantive progress on the CoC during the remaining life of USAID-CRP. The project team will continue to monitor this situation closely. If MOFLU does draft, submit, and secure approval for a new CoC Decree-Law, USAID-CRP will assist the CA to

socialize and implement as time and resources permit.

• Declaration of Interests, Assets, and Liabilities

Work on this activity was initially close to being finalized following the joint-CA/USAID-CRP development of a new Declaration of Interests, Assets, and Liabilities (DIAL) form, which the AC verbally approved in June 2019. This document did not progress, as any new DIAL can only

be enacted by way of a separate Decree-Law. In February 2021, circumstances changed once again, and Decree-Law: 2/2020 was superseded by Law 7/2020 (Measures to Prevent and Combat Corruption). As a result of this new law, the Anti-Corruption Commission (CAC) will develop and circulate a new DIAL. Once completed, CAC will require all government ministries to submit staff DIALs directly. When work commenced on this activity in 2018, USAID-CRP

could not have anticipated these changes, but the project team quickly adjusted planned activities. Instead of assisting CA and MOFLU in developing a new DIAL, the project team would aim to support CA in developing and delivering training to staff on how to complete the new CAC DIAL form. CAC has yet to issue appropriate guidance h, so USAID-CRP or CA cannot determine the content or duration of any associated training. Until CAC socializes this guidance,

USAID-CRP cannot determine whether the project team can realistically support this activity within the remaining term of the project activity. USAID-CRP will continue to monitor this situation closely in Q3 FY21. Once CAC provides the CA with information, USAID-CRP will identify whether the project team can deliver assistance effectively.

• CA Attendance

The CA continues to take full ownership of the staff attendance records. In this reporting

period, the biometric recorder system was not in use due to COVID-19-related concerns; however, the CA continued monitoring and recording staff attendance manually. Overall, staff

attendance has improved dramatically since 2017, when USAID-CRP first assisted CA to monitor and report on staff attendance. The CA has not reported any issues with staff

attendance since April 2019, meaning there has been a significant change in behavior by staff

who now routinely come to work as required. The CA’s ongoing application of the staff attendance system without the need for any project team assistance or intervention shows that

the CA has fully institutionalized this activity and will likely continue doing so following completion of the USAID-CRP activity.

• Employee Rotation SOP

The project team assisted the CA Human Resources and Training Unit (HRMTU) in preparing for the 2021 CA staff rotations, which will occur in Q3 FY21. These rotations will take place using the new Employee Rotation SOP guidance, which the CA previously drafted with USAID-

CRP assistance and the AC approved in May 2020. With USAID-CRP assistance, HRMTU has identified forty (40) employees who have not rotated in the past five (5) years. CA is now conducting further reviews to determine whether these staff fit the criteria for participation in the rotation program as per the approved SOP. CA postponed this activity in March 2021 following the enhanced SoE-related measures and the AC designating HRMTU staff as non-

essential personnel. USAID-CRP will continue to support this activity in Q3 FY21 and assist HRMTU in finalizing activities that enable staff rotations, thereby implementing the associated SOP.

Image: Employee Rotation Form contained within the SOP

• Internal Audit SOP

The CA Internal Audit and Ethics Unit (IAEU) has been proactive in moving audit activities forward. In early March 2021, the unit conducted a follow-up audit of the archives area to determine if the changes recommended in the initial audit undertaken in December 2020 were completed. The project team observed that the follow-up audit ran smoothly, with the archives unit acting on most of the recommendations. Following USAID-CRP mentoring, the Director of

the IAEU advised the project team that she is feeling far more confident in her ability to lead the unit to undertake internal audits. The Director also reported that the Internal Audit SOP (which the project team previously assisted CA to develop and approve) was clear and easy to follow. This combination of confidence and drive from the Director and access to easy-to-understand guidance material dramatically increases the likelihood of sustainability of this activity post-

USAID-CRP assistance. USAID-CRP will support this activity in Q3 FY21 to ensure the IAEU continues to undertake audits in line with the SOP and internal audit-related activities become institutionalized within the CA.

• Customs Client Services Charter

USAID-CRP assisted CA in developing its first Customs Client Services Charter (CCSC) and

associated standards. The CA leadership team previously identified the CCSC as an essential strategic priority and included it as a deliverable in the CA strategic plan. The CCSC is an official document that outlines the CA’s commitment to providing transparent, predictable, and quality service to its clients. It sets out how CA will perform its activities and commits to publishing measurable standards of performance. Notably, the charter also provides information on a

client’s responsibilities to achieve the proposed standards.

Accepted in principle by the AC, the CA shared the draft charter with the Timor-Leste Chamber of Commerce (CCI-TL). The CCI-TL has yet to respond with any meaningful feedback, likely due to non-essential staff having to remain at home following the enhanced SoE-

related restrictions introduced in March 2021. The project team will continue to work with CA

in Q3 FY21 to ensure the CCSC is finalized, agreed upon, and implemented. Once this is done,

USAID-CRP will help the CA make the CTCC publicly available to key stakeholders, such as members of the trading community, customs brokers, and the public, by adding it to the

Customs Trade Portal (CTP) and other appropriate online platforms. Under the terms of the CTCC, the CA will then publish data via the CTP to show how it performed against the

relevant standards.

• Stakeholder Engagement and Communications Plan

Following USAID-CRP assisting the CA in completing the stakeholder, engagement, and communications baseline assessment, the project team and CA began developing the CA Stakeholder Engagement and Communications (SEC) Plan.

This new plan, which will be developed by the CA Institutional Relations and Communications Unit (IRCU) with support from the project team, will be founded on the following four (4) key

principles:

1. Accessibility: The CA will provide appropriate and reliable information to stakeholders.

2. Transparency: The CA will embrace open and transparent feedback, ensuring it is incorporated into all planning processes.

3. Learning: The CA will listen and learn from our stakeholders, understanding their needs,

challenges, and influence on trade; and

4. Responsiveness: The CA will establish early engagement to integrate the views of stakeholders into the decision-making process.

This plan will include activities that can be realistically achieved in the short-, medium-, and longer-term and consider existing limitations with CA access to reliable internet connectivity

and appropriate budget to fund the development or publishing of outreach-related materials. A number of these activities will overlap with work that CA is already undertaking in partnership with USAID-CRP, including:

1. Enhancing the Customs Trade Portal: Improve the usability and accessibility of information for stakeholders.

2. Promoting the National Customs Hotline: Promote the National Customs Hotline and

encourage stakeholders to report a crime.

3. Developing a Customs Monthly E-Newsletter: Keep stakeholders updated on the work

of the CA and trade developments.

4. Developing Key Stakeholder List: Develop stakeholder list and integrate the list into the

E-Newsletter system to streamline information to stakeholders.

5. Build the capacity of the CA IRCU: Integrate management information systems to ensure daily tasks are effectively executed. Implement templates and guidelines to direct staff on effectively communicating and engaging with stakeholders.

6. Develop Trade Information and Outreach Materials: Provide stakeholders with informative trade-related booklets, guides, and manuals.

7. Enhance CA Engagement with Stakeholders: Deliver information sessions, workshops, roundtables, public forums, and panel discussions to build two-way communication with stakeholders.

• Hotline and Customs Intelligence Database

USAID-CRP continued to support CA as they worked with the MOF Integrated Financial Management Information System Unit (IFMSU) toward finalizing measures technical

requirements in advance of the Hotline launch, including:

– Testing of the “12200” number and submission of test calls and reports – Installation of the Hotline application on MOF servers

– Testing of the Customs Intelligence Database (CID)

Image: Screenshot taken from the CID

Despite the MOF’s previous assurances to USAID-CRP and CA, the MOF Director General for Corporate Services advised CA that there was insufficient office space within the MOF HQ

building to host the CA Hotline team. The AC will now repurpose one of the existing training rooms within the CA HQ building for the Hotline team. The project team will work with CA to ensure this office space is fit for purpose and relevant computers installed by the IFMSU during the first part of Q3 FY21.

The Hotline team will be composed of four (4) CA staff. The AC approved the transfer of two

(2) experienced staff members from the Risk Management unit, and a further two CA entrants will also join the team. Once the new office space is ready and computers functional, the project

team will assist the CA training unit to deliver appropriate training to the team to utilize the Hotline system and associated CID. The Hotline and CID system has been designed to accommodate users with only rudimentary I.T. skills. The system also guides users on recording information within the CID using an easy-to-understand, step-by-step approach. As a result, USAID-CRP and CA anticipate that training staff should only take 1-2 days.

In addition to the delivery of training, USAID-CRP and CA also jointly developed a Hotline/CID

user manual in English and Tetum. USAID-CRP will supply this manual, including easy-to-follow steps and associated screenshots from the CID of relevant data entry boxes, to the Hotline staff at training.

USAID-CRP also commenced the development of the technical troubleshooting manual. Once finalized during Q3 FY21, USAID-CRP will give this manual to the IFMSU, which will act as the

system administrator and trouble-shooters.

The project team assisted the CA in the development of a presentation for delivery to the heads of several law enforcement agencies within Timor-Leste, including the Polícia Nacional de Timor-Leste (PNTL), Polísia Sientífika ba Investigasaun Kriminál (PSIK) and the Anti-Corruption Commission (CAC). The purpose of this briefing, which the AC will deliver, is to ensure that

relevant partner agencies understand the hotline purpose and discuss opportunities for providing these agencies with direct read-only access to the CID. USAID-CRP anticipates the AC will deliver the presentation during the early part of Q3 FY21 and before the official launch of the hotline.

USAID-CRP will work with CA and the IFMSU to prioritize the launch of the hotline in Q3

FY21. Once launched, the project team will provide workplace mentoring and support to the Hotline team to ensure that staff can ultimately operate the system without any project team assistance.

Activity 2.3: Implement the Customs Strategic Plan

As this activity has now been continuing for some time, USAID-CRP has included a summary of progress below:

• July 2020: The AC approved the first Customs Authority Five Year Strategic Plan (2021-2025).

• August 2020: The AC presented this plan to the MOF Consultative Council for Financial

Management (CCFM). The CCFM provided feedback that was positive overall but included observations and requests for adjustments.

• September 2020: The AC shared the MOF CCFM comments with the USAID-CRP team. These comments included:

– More closely aligning the Customs Strategic Plan with the Ministry of Finance Strategic Plan and the National Development Plan.

– Considering the 2018 - 2020 Public Financial Management Reform Work Plan and its linkages with the reforms underway in Customs administration.

– Adjusting the time frame for submitting deliverables to make them more realistic.

– Addition of unforeseen risks, such as the impact of COVID-19.

• September 2020: USAID-CRP worked with the AC and the CA senior leadership team to respond to the CCFM comments and make several changes:

– Updating activity time frames.

– Updating risks to include current realities of the Timor-Leste context, including health, political changes, and budget approval developments; and

– Making clearer the linkages between the Customs strategic plan and broader MOF and national development goals.

CA returned the updated plan to the CCFM, but the CCFM did not hold any further meetings in 2020; thus, CA made no further progress.

• February 2021: The AC informed USAID-CRP that the CCFM and the Vice-Minister for Finance had further commented on the plan. Accordingly, USAID-CRP worked with the AC to update the plan in line with CCFM's comments and made changes, including:

– Adjusting the five years from 2021 to 2025.

– Including additional activities such as implementing the National Single Window, developing Client Services Charter and Standards, and developing the Customs and Trade Consultative Committee.

– Adding commentary throughout to reinforce the message that embedding the core Values in all its strategic priorities would position the CA to successfully meet the organization’s overall stated strategic Vision and Mission.

– Emphasizing, where relevant, how changes would help to increase revenue for the State.

– Providing more context, including data, throughout, to support why the Customs reforms were necessary.

• February 2021: The AC resubmitted the updated strategic plan to MOF CCFM.

• March 2021: Members of the CCFM endorsed the updated plan, noting CA had incorporated many of the observations and suggestions that CCFM had raised. In March, the AC sent the plan

to the Minister of Finance and the Vice-Minister, reminding them that it was now endorsed by the CCFM and requesting formal approval by H.E. Minister.

At the time of writing (April 28, 2021), the AC was still awaiting formal MOF approval at the Ministerial level. Despite these ongoing delays, the AC and project team remain confident that H.E. Minister will formally approve the plan during Q3 FY21. Once approved, USAID-CRP will help CA officially socialize the plan publicly through a launch event at the MOF. USAID-CRP will update the content of the

Strategic Plan booklet that the project team previously helped CA to compile and print off around one hundred (100) copies for circulation among participants at the launch event and other relevant stakeholders. The project team will also work with the CA to ensure an electronic copy of the document is made available on the Customs Trade Portal (CTP).

Activity 2.4: Establish and Support Consultative Forums

USAID-CRP helped the CA develop the Terms of Reference (TOR) for the Customs and Trade Consultative Committee (CTCC). The AC agreed with the content of the TOR and shared it with the

Timor-Leste Chamber of Commerce (CCI-TL) for comment. Responses from the CCI-TL have been generally slow; however, the CA and project team recognizes the importance of engaging the CCI-TL within this activity and will continue to liaise with them during Q3 FY21 to obtain and incorporate their feedback.

The CTCC will act as a consultative forum between the CA, OGAs, and the private sector counterparts,

including CCI-TL; Timor-Leste Women’s Business Association (AEMTL); importers; exporters; shipping operators; airlines; land transporters; bonded warehouses; and temporary storage operators. Chaired by the AC, the CTCC will enable and encourage two-way dialogue between regulatory agencies (such as the CA and OGAs) and the private sector. Once established, it will allow all parties to discuss any impending changes to laws or regulations, existing or anticipated issues, delays to the movement of

goods, or suggestions for improvements. International standards contained within the WTO Trade

Facilitation Agreement (Article 2.1. and Article 2.2) and the ASEAN Trade in Goods Agreement (Article 65 and Article 66) actively encourage customs administrations to create and operate these types of

forums.

USAID-CRP will continue to support the CA on this activity through Q3 FY21, including finalizing the TOR and supporting the initial meeting(s) with participants.

Activity 2.5: Develop and Deliver Workplace Mentoring and Training

Delivery of workplace mentoring and training continued to be hampered during January and February of

this quarter due to the ongoing SoE-related measures and the need to apply WHO-related best practices, such as limiting the size of classrooms and practicing social distancing. Delivery of training was

also not possible for most of January 2021 due to the CA Training Unit staff being on vacation. All training and workplace mentoring activities had to be suspended throughout March 2021 following enhanced SoE-related measures being introduced by GOTL. Where possible, USAID-CRP continued to provide advice and support remotely, but most CA staff were working from home during this period as the AC and MOF deemed them not to be essential staff. Understandably, the small number of CA staff required to work focused on the continuation of operational activities and movement of goods. The

project team assessed the potential for delivering training remotely but ruled out this possibility as most CA staff do not have access to a computer or a reliable internet connection.

• Delivery of Training

USAID-CRP supported the CA Training Unit as it delivered four (4) different classroom events to a total of twenty-four (24) CA staff during this quarter. This included two (2) events on

warehousing, one (1) on intelligence awareness, and one (1) on advanced classification. 21% of those attending were women, and pre- and post-written assessments identified an average overall skills increase of 62.5%.

• Delivery of Workplace Mentoring

CA Help Desk: USAID-CRP continued to assist CA in the operation of the CA Help Desk

during January and February 2021, but this activity had to be suspended throughout March 2021 following the GOTL’s introduction of enhanced SoE-related measures. Even so, the Help Desk received one hundred and eighty (180) inquiries from traders or customs brokers seeking advice on completion of paperwork, documents required, or classification issues. On every occasion, a project team member was there to support CA as they provided this advice.

Risk Management: This is covered in more detail in Activity 1.1.

Compliance: The project team continued to assist staff within the Customs Revenue and Entry Processing (CREP) to ensure documents were processed efficiently and errors identified.

USAID-CRP undertook a review of declaration (DAU) data from AW and determined that CREP staff had likely missed a small number of minor errors. The project team raised this issue

with the supervisor of the section and provided the individuals involved with additional coaching and guidance.

Human Resources: This is covered in more detail in Outcome 2.

Operations: Without any intervention from USAID-CRP, CA staff identified a case of significant undervaluation of construction equipment arriving from China. Using skills previously learned from the project team, CA staff identified irregularities with the submitted commercial invoice.

The general layout of the invoice did not look very professional and the declared values of the equipment seemed very low. CA staff subsequently reviewed the goods, concluding that the

importer had undervalued them by $135,000. The importer admitted undervaluing the goods and agreed to pay the additional duty and a penalty of $4,000. This is the largest penalty the CA has ever issued.

Image: CA staff examining construction equipment at Dili Seaport

Activity 2.6: Develop and Deliver Workshops, Seminars, and Awareness Events

Ongoing SoE-related measures and the need to apply WHO-related best practices, such as limiting the size of gatherings and practicing social distancing, continue to hamper the delivery of workshops, seminars, and awareness events during January and February of this quarter. CA suspended all events throughout March 2021 following enhanced SoE-related measures being introduced by GOTL. The project team assessed the potential for delivering awareness events remotely. However, the projected

participants in question showed little interest in attending remote events. In most cases, projected participants cited issues with gaining access to a computer or a reliable internet connection.

• Supporting Female Members of the Trading Community

In partnership with the Timor-Leste Women’s Business Association (AEMTL), USAID-CRP assisted CA in the delivery of a workshop to sixteen (16) female members of the trading community on how to apply customs regulations when importing or exporting goods correctly. USAID-CRP also provided participants with a helpful information booklet for future reference. The workshop received very positive feedback. Following this successful event, USAID-CRP will

support the AEMTL and CA in the delivery of further workshops to female members of the trading community on a broad range of different trade-related matters.

Image: Participants engaging in the workshop

• Access to Meeting Space

The CA lost access to its only meeting space large enough to accommodate twenty or more participants following a fire in the CA Knowledge Center building (based at the HQ building in Dili) toward the end of 2020. In response, the project team booked a large meeting room within a corporate venue in Dili for four (4) different trade-related seminars in March 2021. The

project team had to cancel these events, which were due to be delivered in partnership with the CA, following the GOTL’s introduction of enhanced SoE-related measures that same month. If SoE-related measures permit, USAID-CRP will work with CA to deliver a series of awareness seminars to the trading community in Q3 FY21 in several areas, including:

– Trade Compliance

– Bonded Warehouses and Temporary Storage

– Commercial Invoices, Incoterms, and HS Codes

The project team will also provide participants with a copy of the information booklet associated with each event. For example, those attending a seminar on trade compliance will receive a copy of the Trade Compliance information booklet in either English or Tetum (described more at Activity 2.7).

Activity 2.7: Develop Outreach Materials

• Customs Hotline

USAID-CRP worked with the CA to develop and finalize a short video promoting the Customs

Hotline. The project team managed to secure the participation of H.E. Dr. R.H., who provides audio commentary in Tetum and appears in the video. The AC also plays a pivotal role by appearing in the video and appealing to viewers to report information. This appeal helps to demonstrate CA ownership of this activity and their commitment to it.

Image: Scene from the hotline clip showing the AC and H.E. Dr. Ramos-Horta

The finished video, which the USAID Development Outreach and Communication (DOC) office and CA have since approved, received excellent feedback from both the AC and H.E. Dr. R. H. Following the hotline launch, this video will be made available on the Customs Trade Portal (CTP) and supplied to appropriate news outlets. As a result of H.R. Dr. R. H.’s participation, the

project team anticipates that the launch and associated video will receive significant and sustained media attention.

Image: Scene showing H.E. Dr. Ramos-Horta and the hotline number

Image: Scene from the hotline video

• Development of Information Booklets

USAID-CRP and CA jointly developed two new information booklets to guide the trading community on Trade Compliance, Bonded Warehouses, and Places of Temporary Storage. To ensure that these booklets can be easily understood by a wide audience, the booklets use simple and straightforward language along with associated imagery, diagrams, and tables. USAID-CRP made the booklets available electronically on the CTP and sent them to stakeholders via email.

USAID-CRP will also produce around one-hundred (100) copies of each booklet (half in English and half in Tetum). These printed copies will be made available to those that attend the associated seminar to discuss the related content. For example, those attending the seminar on warehouses will receive a printed copy of the Bonded Warehouses and Temporary Storage information booklet.

Image: Extract from Warehouse booklet showing basic process map

In Q3 FY21, USAID-CRP will work with the CA to develop and publish one further short video

to promote the new Customs Trade Portal. The project team will also finalize the translation of

the Customs Code (DL: 14/2017) from Portuguese into Tetum. Once completed, around fifty (50) printed copies will be made available to the CA and customs brokers. An electronic copy

will be available on the CTP, and a copy circulated to relevant stakeholders via email.

USAID-CRP will also work with CA throughout Q3 FY21 to finalize and print Hotline-related materials in advance of the Hotline launch. Electronic copies of all materials will be transferred to the CA, enabling further printing of materials as needed post-USAID-CRP.

Image: Extract from Trade Compliance booklet showing compliance types

Outcome 3: National Trade Information Portal Operational

In February 2021, the AC agreed that USAID-CRP would work with the CA Institutional Relations and

Communications Unit (IRCU) to expand the existing customs website and create a trade information portal. UNCTAD previously committed to undertaking this work but was subsequently unable to secure appropriate funding. Instead, the AC approved the project team to work with the Director of the IRCU and four (4) team members on this activity.

Activity 3.1: Enhance the Customs Trade Portal

USAID-CRP worked with the IRCU to develop and agree upon the following critical elements for inclusion within the Customs Trade Portal (CTP):

• Expanded Architecture

The project team and ICRU updated and expanded the website architecture (commonly known as a "wireframe") to accommodate all relevant trade-related information. These changes increase the number of pages from the existing single home page to seven (7) new main page headings and thirty-three (33) sub-page heading names, as follows:

1. About Us

1:01 Our Organization

1:02 Meet the Team

1:03 Ongoing Modernization

1:04 Contact Us

2. International Travelers

2:01 Duty-Free Allowances

2:02 Declaring Goods on Arrival

2:03 Obtaining a Visa

2:04 Prohibited or Restricted Goods

3. Doing Business

3:01 ASYCUDA World

3:02 Importing and Exporting Goods

3:03 Document Database

3:04 Trade Compliance

3:05 Customs Brokers

3:06 Duties and Taxes

3:07 International Organizations, Standards and Agreement

3:08 National Single Window

3:09 Trade Organizations

3:10 Temporary Storage and Warehouses

3:11 Commercial Invoices

3:12 HS Code (Tariff) and Incoterms

4. Other Government Agencies 4:01 Autoridade Portuáriu Timor-Leste

4:02 Ministry of Finance

4:03 Ministry of Agriculture and Fisheries

4:04 Ministry of Health

4:05 Ministry of Transport and Communications

4:06 Ministry of Tourism, Trade, and Industry

4:07 Others

5. News and Media, Circulars and Publications

5:01 News and Media

5:02 Circulars

5:03 Publications

6. Customs Hotline 6:01 How to report information

6:02 Submit an information report (link to online report)

7. Enquiry Point 7:01 Enquiry Point

• Secure Socket Layer Certificate

The existing application does not include a Secure Sockets Layer certificate. This means that the current website is not secure for users. The SSL certificate helps to encrypt data while passing it

between web servers and websites. In more general terms, this means that the data is locked and is only unlocked when received by the intended recipient. An SSL certificate also provides

authentication for a website and helps build trust among users. A website that operates without an SSL certificate is vulnerable in many ways. For example, hackers can compromise sensitive information resulting in a loss of confidence by site users. Many search engines, such as Google, issue warnings to users visiting a site that does not have an SSL certificate.

The maximum validity period of TLS/SSL certificates is currently at 825 days (2 years, 3 month, and 5 days)16. The validity period was reduced from 10 years down to 5 years, and finally to 2 years, owing to the security concerns associated with protracted validity periods. USAID-CRP identified the appropriate SSL certificate and will procure and include it for two years.

• Development of New Content

The project team assisted the IRCU in developing content for all thirty-three (33) CTP sub-

pages, including the design of associated graphics, diagrams, and media. The IRCU has approved this content. Once the projec team finalizes all design work in April 2021, USAID-CRP will submit it to the CA AC for final approval. Once this approval is received, the project team will share copies with the USAID DOC for a last review and approval.

• User Satisfaction Metrics

The IRCU worked with the project to identify and agree on what type of user satisfaction metrics the CA should capture and how. The IRCU and USAID-CRP jointly decided that users should be able to provide feedback easily and quickly, without the completion of comprehensive surveys. The project team and IRCU examined several existing trade portals to see what systems they used, including the Singapore Customs Government Agency Website. Following

this review, the IRCU and project team agreed to use user satisfaction and feedback methodology like the one utilized by Singapore Customs. The IRCU and project’s joint decisions led to applying a six-point Customer Satisfaction (CSAT) score. This score is automatically accessible to users when they access the system. This six-point scale—"1" being very unsatisfied and "6" being very satisfied—will enable users to provide quick and easy feedback:

16 AppViewX (2021). “What is the Maximum Validity Period of TLS/SSL Certificates?." Available at: https://www.appviewx.com/education-center/certificate-renewal-and-revocation/what-is-the-maximum-validity-period-of-tls-ssl-certificates/. Last accessed: April 20, 2021.

Image: Automated CSAT (Rate your experience)

Once a user has selected a satisfaction score—i.e., a grade of 1 to 6—the system will also prompt them to provide more specific feedback through completion of a basic survey:

Image: Example of an expanded user survey

• Revised Layout

The existing application lacks modernity, usability, branding, and accessibility to trade

information. The limited data available is displayed poorly, hyperlinks are inactive, and no attachments are available for download. Crowded or “busy” websites can be challenging to read, making users feel frustrated when trying to find the right part of the information or page they seek.17 The IRCU agreed with the project team's proposal to apply modern design principles, which maximize the use of “white space." White space refers to the large spaces between major

layout elements, including the margins found to the right and left-hand sides of the webpage. The use of white space helps make content scannable, making it more engaging for the users and

making content appear more elegant and lighter, as per the example below:

17 Soegaard, M (2020). “The power of white space." Available at: https://www.interaction-design.org/literature/article/the-power-of-white-space. Last accessed: April 20, 2021.

Image: Partial view of Customs Broker page (sub-page 03:05)

Activity 3.2: Integrate Key Information within the CTP

The IRCU worked with the project team to develop specific pages and associated content that details both the import and export procedures (sub-page 03:02) and regulatory requirements related to

relevant OGAs (sub-pages 04:01 to 04:07).

• Interactive Chatbot

The project team also worked with the IRCU to develop and design a "chatbot" feature for inclusion within the CTP. A chatbot is a computer program designed to simulate human conversation. Users communicate with these tools using a chat interface, just like they would

converse with another person. Chatbots interpret the words given to them by a person and provide a pre-set answer. These answers are powered via an internal CTP database that includes over one-hundred and fifty (150+) pre-developed Q&A that USAID-CRP previously helped the CA develop. The chatbot is accessible via every CTP sub-page:

Image: Chatbot facility within the CTP

• Document Database

USAID-CRP and the IRCU developed a new document database, under sub-page 03:03. This database will act as a central electronic repository where users can access and download

relevant laws, procedures, regulations, forms, or similar. The project team and ICRU have collated over one hundred different trade-related documents, including laws, regulations, and

standard operating procedures. The project team will upload these documents to the database and make them available to users:

Image: Document database (sub-page 03:03) within the CTP

• Enquiry Point

The chatbot feature is a handy tool for users looking for answers to specific questions. However, it is potentially less helpful to users looking for general information or for those who want to expand their knowledge generally. As a result, the IRCU and project team worked together to develop a specific Enquiry Point sub-page (07:01), which includes all the Q&A mentioned above. This information is carefully detailed under each of the relevant headings and

is both searchable and expandable. Each answer also provides a link to further relevant information:

Image: Enquiry Point (sub-page 07:01)

Activity 3.3: Prepare Policies and Procedural Manuals

The project knows that ensuring that CA staff understand their roles and responsibilities is critical for the CTP to be institutionalized and sustainable. To this end, USAID-CRP and the IRCU commenced

work developing relevant manuals, including:

• User Manual: This manual will provide CA system users with straightforward and easy-to-understand guidance on operating and maintaining the CTP. This includes guidance on individual roles and responsibilities, adding, removing, developing, and adjusting content, identifying and referring technical issues to the CA system administrators, collating, analyzing, and reporting

user metrics to the CA management team, such as satisfaction data.

• Technical Manual: This document will provide the CA IT unit members with clear and easy-to-understand guidance on troubleshooting the application when technical issues arise.

The project team and ICRU will work together to finalize these manuals in Q3 FY21. USAID-CRP and the CA Training Unit will implement these manuals by delivering associated training and workplace

support to the IRCU and CA IT unit members.

Activity 3.4: Develop M&E Strategy to Measure CTP Impact on Trade

In partnership with the ICRU, the project team commenced the development of an M&E plan intended

to support the CA to assess the effectiveness of the application, including what impact it may have on the larger goal of creating greater efficiency in cross-border trade.

The ICRU and project team jointly agreed that the M&E plan would include the following four Key Performance Indicators (KPI’s):

1. User satisfaction with the CTP

2. Number of documents downloaded from the CTP

3. Reduction in time to import goods

4. Reduction in time to export goods

The IRCU team, under the leadership of the IRCU Director, will collect and analyze this every quarter and then present it to the CA Commissioner for further review and discussion. The team can

incorporate and adjust this indicator data, where appropriate, along with other comments received via electronic surveys captured or similar, into the CTP. The M&E plan will include a standard reporting template for each of the four KPIs to help ensure consistency in collecting and reporting data. Also, to help ensure data integrity and quality is maintained, the M&E plan will include a Data Quality Assurance

(DQA) template report. The ICRU Director will need to complete this report periodically for each of the KPIs.

The project team and ICRU will work together to finalize the M&E plan in Q3 FY21. USAID-CRP and the CA Training Unit will then implement this plan by delivering associated training and workplace support to the IRCU and CA I.T. unit members. The project team and ICRU will complete the M&E plan in Q3 FY21, and implementation it through the delivery of associated training and workplace support

from USAID-CRP and the CA Training Unit to members of the IRCU.

3. List of Activities Planned for Q3 FY21

This section includes a list of significant activities that the project team is planning to work on during Q3

FY21 (April 1, 2021, to June 30, 2021). Unless specified otherwise, the project will undertake all activities in partnership with the CA and, where relevant, OGAs and representatives from the private sector:

• Provide periodic support and guidance to risk management;

• Support implementation of the new streamlined import procedure;

• Support implementation of the new COVID-19 related SOP (CV4);

• Launch the Customs Hotline and help to operationalize the associated CID;

• Finalize and launch the CTP, finalize and implement associated user manuals and M&E plan;

• Develop one short video promoting the use of the CTP;

• Integrate APORTIL within the import procedure by delegating exit note responsibilities;

• Continue to try to integrate the Ministry of Fisheries and Agriculture within the import procedure;

• Finalize, approve, and support the implementation of a new streamlined export procedure;

• Finalize the SIVA and IAP;

• Support implementation of the Employee Rotation SOP;

• Finalize and support the launch of the 5-Year Strategic Plan;

• Finalize, approve, and support the implementation of the Stakeholder Engagement and Communications Plan;

• Finalize and transfer job descriptions onto the new MOF template, including the inclusion of performance indicators;

• Develop appropriate templates and content for Annual Action Plan;

• Finalize and publish the Customs Client Service Charter (CCSC) to the public;

• Finalize the Customs and Trade Consultative Committee (CTCC) TOR and hold an initial meeting(s);

• Support finalization of MOU between Indonesian DGCE and CA;

• Continue delivery of training to CA in support of USAID-CRP activities, including:

– Customs Hotline and associated CID – Anti-corruption

– Risk management awareness – Airport training (IT4 process; search of person; intel and risk management awareness)

• Continue delivery of awareness seminars to the trading community in support of USAID-CRP activities, including:

– Trade Compliance

– Commercial Invoices, Incoterms, and HS Codes – Bonded Warehouses and Places of Temporary Storage

– Customs Hotline and Customs Trade Portal

• As resources permit, periodic embedding within risk management, Dili Seaport, and CREP; and

• Regular meetings with the AC and CA senior management team to discuss progress or impediments.

4. Cross-Cutting and Additional Activities

USAID-CRP’s cross-cutting activities were generally limited due to stakeholder focus on supporting

their counterparts during the COVID-19 response. Progress was also limited following enhanced measures, including home confinement for non-essential staff, on March 8, 2021.

Despite these challenges, the project team continued to support key stakeholders, such as Serviço Aútonomo de Medicamentos e

Equipamentos de Saúde (SAMES) and the World Health Organization (WHO), helping to ensure critical medical and COVID-19 related goods were processed and released quickly. The project team worked with the

CA to provide technical support, such as checking documents and classification codes, and to ensure paperwork was complete and accurate.

The project team also met remotely with members of the international community involved in the pandemic response, including the WHO, UNICEF, and the Australian Embassy, to discuss and share

content. This partner collaboration helped ensure that the new procedure was fully compatible with relevant standards and effective practice (described in more detail in Activity 1.2).

Following a request from the AC, the project team assisted the CA in completing their WCO Annual Survey for 2021. The CA sends this survey to all WCO members annually. The survey asks about information including staff numbers, numbers and types of procedures used, and revenue collection. The

survey also invites members to disclose their understanding and use of one hundred and thirty (130) different WCO instruments and international agreements. As a result of USAID-CRP assistance, CA was

able to complete and send its completed survey to WCO by the deadline of March 30, 2021. CA advised that this was the first time it had ever managed to return this survey by the deadline.

USAID-CRP continued to follow up with the Chief of Mission from the United Nations International

Organization on Migration (IOM) to discuss IOM’s previous offer of delivering Counter-Trafficking in Persons (CTP) awareness training to CA staff. Due to IOM budget restraints and ongoing SoE-related restrictions to the gathering of persons (which directly impacts the delivery of training), IOM and the project team made no substantive progress on delivering this training. The project team will continue to liaise with IOM throughout Q3 FY21. However, because of the IOM’s humanitarian efforts following

extensive flooding in Timor-Leste on April 5, 2021, it is unclear whether this training will go ahead.

“I would like to take this opportunity to thank [USAID-CRP] for all the assistance and support given to me when dealing with the import of goods (medicines, PPE or other health equipment) for WHO-TL. Honestly, we here in Timor-Leste need more people like you, people of your caliber and passion to help. The end result of that hard work will benefit the Timorese people.” WHO Country Office to Timor-Leste

In February 2021, USAID-CRP met with representatives from the Timor-Leste Chamber of Commerce (CCI-TL) to provide an overview of the project and discuss potential collaboration. The project team has since been in contact with the CCI-TL via email. During this exchange, several documents, such as the Customs Trade Consultative Committee (CTCC) Terms of Reference (TOR) and the Client Services Charter (CSC), have been shared for comment and further discussion. Responses from the CCI-TL have been generally slow; however, the project team recognizes the importance of engaging the

CCI-TL within these two activities and will continue to liaise with them during Q3 FY21 to obtain and incorporate their feedback.

In the same month, the project team also met with representatives from the Timor-Leste Women’s

Business Association (AEMTL) to provide an overview of the project and discuss potential

collaboration. The AEMTL requested additional support to enhance its technical trade-related knowledge. The project team subsequently delivered a one-day training course to sixteen of their members in February (more information is available in Activity 2.6).

USAID-CRP maintained regular contact with other key stakeholders, such as the Australian Border Force (ABF), Australian Federal Police (AFP), and the Asian Development Bank (ADB) project. This collaborative approach reduced areas of potential duplication and will continue throughout Q3 FY21.

In consultation with the Mission, USAID-CRP will continue to participate in coordination meetings with key government counterparts, development partners, and private sector stakeholders, identify

opportunities for ongoing collaboration, and avoid any duplication of effort.

5. Monitoring & Evaluation

The project has yet to obtain baseline or results data for four (4) key Performance Indicators (KPIs).

The table below describes these KPIs in more detail:

KPI # Description Reason

7. Reduction in time to export goods.

The project team finalized the development of the new export procedure. Once approved by the AC and implemented, the

project team will obtain and report results data. The export baseline is 7.8 days.

9. Number of calls or reports recorded in the

new Customs Intelligence Database (CID).

The project completed the development of the CID during this quarter and continues working to implement and activate the new

system within the MOF data center. The project team anticipates launching the National Customs Hotline in Q3 FY21. Once the CA has started using the system and operated it for one (1) month, the project will identify a baseline based on the general levels of calls or reports received and collate and report

associated results data.

11. User satisfaction with the Customs Trade Portal (CTP).

The project team anticipates launching the CTP in Q3 FY21. Once the CA has activated the system and operated it for one (1) month, the project will collate and report associated results data.

The baseline is 70% user satisfaction with the CTP.

14. Number of documents downloaded from the

Customs Trade Portal (CTP).

The project team anticipates launching the CTP in Q3 FY21. Once the CA has started using the system and operated it for

one (1) month, the project will identify a baseline based on the number of documents being downloaded by users and collate and

report associated results data.

Results for the remaining ten (10) key performance indicators are available in Annex 1.

6. Gender Considerations

USAID-CRP continued to prioritize the inclusion of the CA female staff wherever possible, which

resulted in an overall participation rate of 21% in CA training events. This male/female ratio for training is in line with the overall CA workforce gender balance of 23% female employees working within the organization. Even so, USAID-CRP will continue to work with CA management to ensure that all female staff can engage and participate in all relevant training and workshop events.

In partnership with the CA, the project delivered a one-day awareness seminar to sixteen (16) members

of the Timor-Leste Women’s Business Association (AEMTL) in February 2021. The project also distributed printed copies of the CA information booklet (in English and Tetum) on Commercial Invoices, Incoterms, and HS Codes to participants. The project team previously worked with the CA to help develop this booklet.

The project team had to postpone further events planned for this quarter due to the enhanced SoE-

related measures prohibiting the gathering of persons. USAID-CRP remains in regular contact with the AEMTL via phone and email and will resume the delivery of support through awareness sessions and meetings in Q3 FY21.

7. Project Management

We detail all major project management-related activities undertaken in Q2 FY21 below:

Personnel Activities

• G.M. (Compliance Advisor) left the project on March 17, 2021;

• S.R. (Deputy Chief of Party) worked remotely from Australia due to COVID-19 related restrictions throughout this quarter; and

• S. B. R. (H.R. Advisor) worked remotely from Australia due to COVID-19 related restrictions throughout this quarter.

Operational Activities

COVID-19 and the associated SoE restrictions continued to directly impact activities throughout this reporting period, including two project team members having to work remotely from Australia. Due to a surge in COVID-19 positive infections, additional SoE-related measures were introduced on March 8, 2021, and remained in force throughout the rest of the reporting quarter. Measures included:

• Enforced home confinement for all non-essential staff;

• Prohibition on the gathering of persons;

• Non-essential businesses closed;

• All public transport suspended; and

• A sanitary fence placed around Dili, preventing people from entering or leaving.

Project challenges are discussed further in Section 8.

Training and Embedding Activities

Despite ongoing COVID-19 and SoE-related restrictions, USAID-CRP continued to deliver training and workplace mentoring to CA staff within Dili Seaport, CREP, and Risk Management for the first two

months of this quarter. Assistance included the delivery of four classroom-based events to a total of

twenty-four (24) CA staff members. Reduced classroom sizes helped ensure compliance with existing SoE-related requirements that prohibit any large gatherings and WHO best practices related to social distancing. The average class size for these four events was six (6) participants.

The project team postponed further events planned for delivery during this quarter due to enhanced SoE-related measures introduced on March 8, 2021. These measures require home confinement for

non-essential workers and a prohibition on any gatherings of persons. If GOTL rescinds these measures,

then delivery of training will resume in Q3 FY21. The project team also had to significantly reduce embedded assistance following these enhanced SoE-related measures. As with training, if GOTL rescinds these measures, then delivery of training will resume in Q3 FY21. This is discussed more in Activity 2.5 and Activity 2.6.

8. Successes, Challenges, and Lessons Learned

Successes

Despite the considerable challenges resulting from the ongoing SoE and the enhanced SoE-related measures introduced in March 2021, USAID-CRP continued to deliver support and assistance to the Customs Authority (CA) and other stakeholders daily. This quarter, USAID-CRP’s key achievements included:

• Finalization and approval of a new SOP for the expedited clearance and release of COVID-19 related vaccines:

• Finalization of the CTP architecture (wireframe) and identification of key functionality, including

the collection of customer satisfaction metrics, use of a “chatbot” and document database;

• Commenced development of thirty-three (33) CTP sub-pages, including the creation of content, collation of documents, and design of revised layouts;

• Finalization of a new import procedure and submission to the AC for approval;

• Initial development of a new export procedure;

• Ongoing operation of the Customs Helpdesk, which provided direct assistance and advice to

180 members of the trading community;

• Delivery of four (4) different training events to twenty-four (24) CA staff. Pre- and post-training assessments identified an average skills increase of 62.5%;

• Assisted CA in the completion and submission of the WCO Annual Survey for 2021;

• Delivery of training to sixteen (16) members of the Timor-Leste Women’s Business Association

(AEMTL)

• Development of fifty-nine (59) new position-specific job descriptions;

• Formal approval of twenty-one (21) job descriptions by the AC;

• Finalization of information booklets in English and Tetum on Bonded Warehouses and Places of

Temporary Storage;

• Further adjustment of the CA Five-year Strategic Plan to incorporate comments made by the

MOF;

• Delivery of ongoing technical advice and assistance to stakeholders to ensure the expedited

importation of COVID-19 related equipment and goods;

• Verbal agreement reached with APORTIL to integrate its activities within the import procedure;

• Finalization of outreach materials, including a short video and technical testing of systems in anticipation of the Customs Hotline launch;

• Supported PCA in the completion of a further seventy-six (76) desk-based audits; and

• Provided technical assistance and advice to CA management and other key stakeholders, such as the United Nations Conference on Trade and Development (UNCTAD), development partners, Customs Brokers, and the trading community.

The project team, CA, and other counterparts collectively developed and implemented by activities this quarter that played a direct role in achieving the following results:

• The average clearance time for goods remained low at 3.56 days, despite the significant turbulence caused by the additional SoE-related measures imposed in March 2021. This represents a 60% reduction when compared to 2017;18

• 63% of all goods processed through Dili Seaport did not require any physical or documentary examinations (i.e., routed through the green lane);

• Despite the overall number of consignment inspections remaining low, CA still applied thirty-one (31) penalties, which resulted in the collection of an additional $31,000 in revenue. This suggests that CA is effectively targeting the correct consignments;

• The CA collected an additional $13,116 in revenue using the AW automated facility, which

identifies and applies a 5% fee to “out of time” consignments.19

• Operators saved around twenty-seven (27) working days-worth of time processing electronic requests to move containers (Gate Pass facility within AW);20

• The CA undertook three hundred and twenty-six (326) fewer physical inspections of vehicles, representing a saving in time of over 100 full working days for the private sector;21

18 The average time for clearance of goods through Dili Seaport in 2017 was 9 days. 19 Since implementation in August 2018, the CA has applied additional fees totaling $348,378 to a total of 568 different consignments. 20 Enquiries made with the private sector identified that the previous paper-based application would take around 4 days to complete, whereas the new automated process takes less than 1 day. Since implementation in February 2020, the CA has used this facility forty-seven (47) times, reducing delays for the private sector by around one hundred and forty-one (141) working days. 21 On average, the physical examination of a vehicles can take around 2.5 hours. In terms of savings for the CA, this figure is essentially doubled, as at least two CA officers must attend every inspection. Since implementation in July 2020, these changes have resulted in 1,002 fewer inspections of vehicles.

• Via the Help Desk, the CA and USAID-CRP provided approximately one hundred and eighty (180) members of the private sector with onsite technical advice;22

• The CA processed two hundred and seventy-three (273) diplomatic bags using the new SOP, representing potential savings to Diplomatic Missions of around $30,000;23

• The CA undertook twenty-three (23) fewer physical inspections of health and environment-related consignments, representing savings in time of over 11 full working days for the private sector;24 and

• Overall, declaration error rates remained very low at Dili Seaport, Suai, and Batugade (around

10%).25

Challenges

USAID-CRP continued to make excellent progress throughout this quarter, despite the ongoing SoE and

the enactment of further, more robust SoE-related measures by GOTL on March 8, 2021. These enhanced measures, including home confinement for non-essential personnel, closure of all non-essential businesses, and suspension of all public transport, remained in place throughout March.

To ensure compliance with these measures, USAID-CRP took several steps during this period, including having all staff work from home, temporarily halting all in-person workplace mentoring, and postponing all planned training and outreach events. The introduction of these additional measures followed a

significant spike in the number of positive COVID-19 cases identified in Timor-Leste. Data supplied by WorldoMeters26 shows there were 44 positive COVID-19 cases between February 15, 2020 and December 31, 2020, and zero fatalities. At the time of writing (April 28, 2021), this number has risen to 2,048 positive cases and three deaths.

The CA, OGAs, and private sector remained understandably concerned for their health and safety

throughout this period, especially when considering the significant spike in COVID-19 cases and lack of

22 Following implementation in February 2020, the help desk facility has provided face-to-face advice to approximately 3,000 members of the private sector, including importers and Customs Brokers. 23 Customs Brokers fees can vary but tend to be in the region of $100 in Dili. The new procedure has now been used just under 800 times to process diplomatic bags since January 2020. 24 By any conservative estimation, the physical examination of a containerized consignment can take at least 4 hours to complete. In terms of savings for the CA, this figure is essentially doubled, as at least two CA officers must attend every inspection. Since implementation in July 2020, these changes have resulted in 175 fewer inspections. 25 Analysis of data extracted from AW indicate that, prior to USAID-CRP staff being embedded within key areas in 2019, general declaration error rates were around 50% at Dili Seaport, and 95% at Batugade and Suai. 26 WorldoMeters.info (April 28, 2021). “Timor-Leste.” Available at: https://www.worldometers.info/coronavirus/country/timor-leste/. Last accessed: April 28, 2021.

access to any form of vaccine. This situation directly impacted the delivery of project activities on a day-to-day basis, with many counterparts being less focused on modernizing and more on the general pandemic response. In a limited number of cases, USAID-CRP observed that some counterparts used "COVID-19” as a catch-all reason for not engaging in training or mentoring events or failing to push ahead with critical modernization-related activities.

Image: Total accumulated COVID-19 cases in Timor-Leste (source: WorldoMeters)

SoE-related restrictions and MOH best practices governing social distancing in place before March 2021

also continued to impact USAID-CRP’s ability to deliver training, requiring the project to keep class sizes very small. The project also had to postpone larger seminars planned with the private sector community as the CA Knowledge Center—the only space large enough to host 20+ participants while maintaining social distancing—was damaged in a fire in late 2020. The project team did identify and book a large corporate venue for four trade-seminar events in March 2021. Still, these had to be canceled

following the introduction of the enhanced SoE-related measures the same month. These restrictions also continued to impact and delay the fielding of IBI Home Office employees and the movement of international USAID-CRP staff. For example, two project staff currently working in Australia were unable to return; and IBI had to cancel a planned management visit from its Home Office staff.

USAID-CRP also experienced delays with integrating the import and export procedure due to MAF

representative’s limited engagement. The project team continued to raise this issue with the CA

throughout this quarter, and the AC advised that he had escalated the matter to H.E. Minister of Finance. CA, unfortunately, lost this momentum following the enhanced SoE-related measures coming into force in March. These measures resulted in the MOF refocusing its attention toward the more immediate need for economic stimulus and recovery. USAID-CRP will continue to work with the CA throughout Q3 FY21 to move this activity forward; however, if this does not occur, the project team will work with the Mission to identify appropriate ways to escalate these issues to H.E. Vice-Minister or

H.E. Minister of Finance level.

On March 17, 2021, the long-term USAID-CRP compliance advisor left the project approximately ten (10) weeks earlier than initially planned due to family-related issues. This decision did not significantly impact operational activities, such as embedding within CA, during this reporting quarter because the advisor's departure occurred during the period of enhanced SoE-related measures when all USAID-CRP

personnel were at home. USAID-CRP has determined that it would not be feasible to replace this advisor for the remaining 10-week period due to the ongoing SoE, uncertainty surrounding the significant spike in COVID-19 cases, and the limited remaining term of the project activity. Instead, the project team will reallocate resources in Q3 FY21 to provide periodical cover to the CA Compliance Directorate.

When drafting this report (April 28, 2021), the GOTL is considering issuing a further SoE, which would continue into early June 2021.27 Despite the inevitable delays that this continued SoE may create, the project team remains confident that USAID-CRP can still make progress and many activities successfully concluded.

Lessons Learned

Nothing relevant to report.

27 Government of Timor-Leste (April 21, 2021). “Meeting of the Council of Ministers on April 21st, 2021.” Available at: http://timor-leste.gov.tl/?p=27737&lang=en. Last accessed: April 28, 2021.

9. Environmental Compliance and Mitigation Measures

USAID-CRP has no plans to carry out any activity that is likely to have any environmental impact or any

action which may require alignment with USAID’s Environmental Compliance Regulations and Procedures. Accordingly, the project did not adopt any mitigation measures during this reporting quarter; however, the project team will continue to exercise environmentally friendly best practices, such as not using plastic water bottles, plastic straws, disposable cups, or plastic cutlery during events.

10. Suggested Steps Moving Forward

With USAID-CRP coming into its final quarter, the project team will focus on finalizing and implementing existing tasks throughout Q3 FY21, including the approval and implementation of the new

import and export procedures; integration of OGA risks within AW; implementation of the Organic Structure of the Customs Authority (DL: 02/2020) and associated Nuclear Structure of Customs Authority Ministerial Diploma; launch and operation of the Customs Hotline and printing of associated outreach materials; finalization, coding and launch of the CTP; development of remaining outreach materials; and delivery of remaining training and awareness seminars.

When drafting this report (April 22, 2021), GOTL is reportedly considering issuing a further SoE, which would continue into early June 2021. Although SoE provisions are mainly focused on the cross-border movement of persons and goods, there will likely be ongoing disruption to project activities as GOTL Ministries, and other relevant stakeholders continue to navigate the operating environment in Timor-Leste. These restrictions will also continue to impact and delay the fielding of IBI Home Office

employees and the movement of international USAID-CRP staff. Unlike the restrictions seen in March 2021, USAID-CRP does not anticipate this new SoE enforcing home confinement for non-essential workers or restricting gatherings of more than ten (10) persons; however, this may change should a domestic outbreak of the pandemic occur.

USAID-CRP is confident that the project team can continue to engage effectively with CA and OGA

counterparts, including having face-to-face meetings, embedding staff, and delivering appropriate training. If this proves impossible, the project team will apply similar mechanisms that it effectively utilized during FY20 and Q1 FY21, including:

• Regular interaction via email;

• Virtual meetings via Skype, Google Meet, or other platforms; and

• Development of training materials that USAID-CRP can deliver remotely.

USAID-CRP will continue to engage directly with the CA and OGAs daily, and the project team will keep the Mission fully informed of the ongoing effectiveness of this strategy. If this proves ineffective, USAID-CRP will seek further discussions with the Mission to identify appropriate alternatives. The project team will also continue to incorporate and apply USAID-developed Collaborate, Learn and Adapt (CLA) methodology to the planning and delivery of all day-to-day activities.

USAID-CRP remains confident that the project team can continue to make adequate progress with

finalizing key activities, barring a significant domestic outbreak of the pandemic or additional SoE-related measures imposed like those seen in March 2021. The project team will quickly engage in further dialogue with the Mission if a change in circumstances may impact USAID-CRP’s ability to function effectively.

Annex 1 - Performance Indicator Results

Performance Indicator: 01

Description: Increase in revenue collected by customs.

Results

Baseline

(2016 – 2017) Y1

(2017 – 2018) Y2

(2018 – 2019) Y3

(2019 – 2020) Y4

(2020 - 2021) Y5

(2021)

Description Jun - May Jun - May Jun - May Jun - May Jun – May Jun – July

Total Collected ($) $ 66,468,053 $ 68,259,654 $ 65,944,894 $ 63,283,602

Total Collected -

Y on Y Difference (%) N/A 2.70 % -3.39 % - 4.04 %

Total DAUs submitted

and processed (#) 13,280 15,297 14,850 9.981

Total DAUs processed -

Y on Y Difference (%) N/A 15.19 % -2.92 % -32.79

Average amount

collected per DAU ($) $ 5,005.12 $ 4,462.29 $ 4,440.73 $ 6,340.41

Target: N/A 0% + 5% + 10% + 10% N/A

Result: N/A 3 % - 1 % - 5 %

Comments: This data is presented on an annual basis in line with the project commencement and end date (as opposed to USAID Fiscal Year).

* Baseline: The period of 1st June 2016 to 31st May 2017 has not been utilized as the baseline figure, as this year represented a period of extensive government

expenditure relating to infrastructure projects ($78,093,502), which disproportionately inflated the typical annual revenue collection by approximately $10+ million

($78,093,502). Instead, these figures reflect the average revenue collection for the three years between 2013 and 2016 ($ 66,468,053).

Description Baseline FY17 FY 18 FY 19 FY 20 FY 21

Cumulative Target: 0 0 -10% -30% -50% -60%

Result: 0 0 -44% -50% -63% -62%

Comments: This data relates to goods imported through Dili Seaport. The result is shown as the average across all available quarters.

Performance Indicator: 02

Description: Reduction in time to import goods.

Results

Description Baseline FY 17 Jun-Sept

FY 18 Oct-Dec

FY 18 Jan-Mar

FY 18 Apr-Jun

FY 18 Jul– Sept

FY 19 Oct-Dec

FY 19 Jan- Mar

FY 19 Apr- Jun

FY 19 Jul – Sept

FY 20 Oct-Dec

FY 20 Jan-Mar

FY 20 Apr- Jun

FY 20 Jul- Sep

FY 21 Oct-Dec

FY 21 Jan-Mar

FY 21 Apr- Jun

FY 21

July

Average Time (days) 9 9 N/A 5.36 5.14 4.72 5.54 4.48 4.17 3.98 4.41 3.54 3.08 2.24 3.2 3.56

Exit Notes (#) 0 0 N/A 18,796 15,498 27,937 29,959 23,271 25,068 28,513 38,184 36,741 29,150 48,677 52,036 41,052

% Difference

(Exit Notes) 0 0 N/A - 40.4 - 42.9 - 47.6 - 38.4 - 50.2 - 53.7 - 55.8 - 51.0 - 60.1 -65.8 +75.1 +6.9 -21.1

% Q on Q

Difference (Time) 0 0 N/A - 40.4 - 4.1 - 8.2 + 17.4 - 19.1 - 6.9 - 4.6 +10.8 - 19.7 -13.0 -27.3 +42.9 +11.3

Comments: This data relates to goods imported through Dili Seaport. The result is shown as average over all available quarters. For example: FY20 = 36.7 (Q1)

+ 56.0 (Q2) + 78.1 (Q3) + 88.0 (Q4) / 4.

Performance Indicator: 03

Description: Percentage of goods imported and processed without intervention (i.e., processed via the Green Lane).

Results

Description Baseline FY 17 Jun-Sept

FY 18 Oct-Dec

FY 18 Jan-Mar

FY 18 Apr-Jun

FY 18 Jul– Sept

FY 19 Oct-Dec

FY 19 Jan- Mar

FY 19 Apr- Jun

FY 19 Jul – Sept

FY 20 Oct-Dec

FY 20 Jan-Mar

FY 20 Apr- Jun

FY 20 Jul- Sep

FY 21 Oct-Dec

FY 21 Jan-Mar

FY 21 Apr- Jun

FY 21 July

Green Lane (%) 0 N/A N/A 53.8 60.8 37.2 59.1 60.7 77.1 28.9 36.7 56.0 78.1 88.0 67.0 63.0

Q on Q Difference

(%) 0 N/A N/A +53.8 +13.0 -38.8 +58.9 +2.7 +27.0 -62.5 +27.0 +52.6 +39.5 +12.7 -23.9 -6.0

Description Baseline FY 17

FY 18 FY 19 FY 20 FY 21

Cumulative Target:

0 0% 10% 20% 40% 40%

Result: 0 0% 51% 56% 65% 65%

Comments: A full breakdown of courses delivered in Q2 FY21 is available at Annex 8.

Performance Indicator: 04

Description: Number of CA staff that have successfully completed relevant training.

Results

Description Baseline FY 17 Jun-Sept

FY 18 Oct-Dec

FY 18 Jan-Mar

FY 18 Apr-Jun

FY 18 Jul– Sept

FY 19 Oct-Dec

FY 19 Jan- Mar

FY 19 Apr- Jun

FY 19 Jul – Sept

FY 20 Oct-Dec

FY 20 Jan-Mar

FY 20 Apr- Jun

FY 20 Jul- Sep

FY 21 Oct-Dec

FY 21 Jan-Mar

FY 21 Apr- Jun

FY 21 July

Male Staff (#) 0 0 0 0 0 0 10 0 0 18 6 6 7 131 34 19

Female Staff (#) 0 0 0 0 0 0 6 0 0 7 6 0 4 28 12 5

Total (#) 0 0 0 0 0 0 16 0 0 25 12 6 11 159 46 24

Description Baseline FY 17

FY 18 FY 19 FY 20 FY 21

Cumulative Target:

0 0 0 41 180 400

Result: 0 0 0 41 188 258

Comments: A full breakdown of which new regulations, procedures, or policies developed and implementation status is available at Annex 3.

Performance Indicator: 05

Description: Number of new regulations, procedures, or policies implemented.

Results

Description Baseline FY 17 Jun-Sept

FY 18 Oct-Dec

FY 18 Jan-Mar

FY 18 Apr-Jun

FY 18 Jul– Sept

FY 19 Oct-Dec

FY 19 Jan- Mar

FY 19 Apr- Jun

FY 19 Jul – Sept

FY 20 Oct-Dec

FY 20 Jan-Mar

FY 20 Apr- Jun

FY 20 Jul- Sep

FY 21 Oct-Dec

FY 21 Jan-Mar

FY 21 Apr- Jun

FY 21 July

Number

implemented (#) 0 0 1 2 1 1 0 0 2 3 1 1 0 5 3 0

Description Baseline FY 17

FY 18 FY 19 FY 20 FY 21

Cumulative Target:

0 0 5 10 20 22

Result: 0 0 5 10 17 20

Comments: None.

Performance Indicator: 06

Description: Number of transactional “desk-based” Post Clearance Audits (PCA) conducted.

Results

Description Baseline FY 17 Jun-Sept

FY 18 Oct-Dec

FY 18 Jan-Mar

FY 18 Apr-Jun

FY 18 Jul– Sept

FY 19 Oct-Dec

FY 19 Jan- Mar

FY 19 Apr- Jun

FY 19 Jul – Sept

FY 20 Oct-Dec

FY 20 Jan-Mar

FY 20 Apr- Jun

FY 20 Jul- Sep

FY 21 Oct-Dec

FY 21 Jan-Mar

FY 21 Apr- Jun

FY 21 July

Audits (#) 0 0 0 57 0 0 0 0 56 90 0 84 86 69 26 76

Cumulative (#) 0 0 0 57 57 57 57 57 113 203 0 287 373 442 468 544

Description Baseline FY 17

FY 18 FY 19 FY 20 FY 21

Cumulative Target:

0 0 57 150 400 500

Result: 0 0 57 203 442 544

Comments: Work on this activity commenced in Q2 FY21 and will continue into Q3 FY21. Data for this indicator will be recorded following the implementation

of the revised Export SOP.

Performance Indicator: 07

Description: Reduction in time to export goods.

Results

Description Baseline FY 17 Jun-Sept

FY 18 Oct-Dec

FY 18 Jan-Mar

FY 18 Apr-Jun

FY 18 Jul– Sept

FY 19 Oct-Dec

FY 19 Jan- Mar

FY 19 Apr- Jun

FY 19 Jul – Sept

FY 20 Oct-Dec

FY 20 Jan-Mar

FY 20 Apr- Jun

FY 20 Jul- Sep

FY 21 Oct-Dec

FY 21 Jan-Mar

FY 21 Apr- Jun

FY 21 July

Average Time (days) 7.8 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

% Difference 0 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

Q on Q Difference

(%) 0 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

Description Baseline FY 17

FY 18 FY 19 FY 20 FY 21

Cumulative Target:

0 0% 0% 0% 0% - 20%

Result: 0 0 N/A N/A N/A

Comments: A full breakdown of which new regulations, procedures, or policies developed and implementation status is available in Annex 3.

Performance Indicator: 08

Description: Development of new regulations, procedures, or policies in line with international regulations and standards.

Results

Description Baseline FY 17 Jun-Sept

FY 18 Oct-Dec

FY 18 Jan-Mar

FY 18 Apr-Jun

FY 18 Jul– Sept

FY 19 Oct-Dec

FY 19 Jan- Mar

FY 19 Apr- Jun

FY 19 Jul – Sept

FY 20 Oct-Dec

FY 20 Jan-Mar

FY 20 Apr- Jun

FY 20 Jul- Sep

FY 21 Oct-Dec

FY 21 Jan-Mar

FY 21 Apr- Jun

FY 21 July

Documents (#) 0 0 3 3 5 3 4 1 1 6 1 1 1 1 0 2

Cumulative (#) 0 0 3 6 11 14 18 19 20 26 27 28 29 30 30 32

Description Baseline FY 17

FY 18 FY 19 FY 20 FY 21

Cumulative Target:

0 0 14 21 30 32

Result: 0 0 14 26 30 32

Comments: The target for this indicator will be set, and data collection will commence once the CID has been operationalized – anticipated to be Q3 FY21.

Performance Indicator: 09

Description: Number of calls or reports recorded in the new Customs Intelligence Database.

Results

Description Baseline FY 17 Jun-Sept

FY 18 Oct-Dec

FY 18 Jan-Mar

FY 18 Apr-Jun

FY 18 Jul– Sept

FY 19 Oct-Dec

FY 19 Jan- Mar

FY 19 Apr- Jun

FY 19 Jul – Sept

FY 20 Oct-Dec

FY 20 Jan-Mar

FY 20 Apr- Jun

FY 20 Jul- Sep

FY 21 Oct-Dec

FY 21 Jan-Mar

FY 21 Apr- Jun

FY 21 July

Calls (#) 0 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

Emails (#) 0 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

Reports (#) 0 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

Total (#): 0 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

Cumulative (#) 0 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

Description Baseline FY 17

FY 18 FY 19 FY 20 FY 21

Cumulative Target:

0 0 0 0 0 TBD

Result: 0 0 N/A N/A N/A

Comments: On March 9, 2020, the use of the biometric attendance recorder was postponed following instruction from MOF and per COVID-19 related precautions. The project team anticipates reintroducing this recorder in Q3 FY21.

Performance Indicator: 10

Description: Number of Customs staff reported for allegedly breaching Civil Service Commission, or Customs H.R. related rules and regulations.

Results

Description Baseline FY 17 Jun-Sept

FY 18 Oct-Dec

FY 18 Jan-Mar

FY 18 Apr-Jun

FY 18 Jul– Sept

FY 19 Oct-Dec

FY 19 Jan- Mar

FY 19 Apr- Jun

FY 19 Jul – Sept

FY 20 Oct-Dec

FY 20 Jan-Mar

FY 20 Apr- Jun

FY 20 Jul- Sep

FY 21 Oct-Dec

FY 21 Jan-Mar

FY 21 Apr- Jun

FY 21 July

Staff (#) 0 0 29 62 36 27 27 6 0 0 0 0 0 0 0 0

Cumulative (#) 0 0 29 91 127 154 181 187 187 187 187 187 187 187 187 187

Description Baseline FY 17

FY 18 FY 19 FY 20 FY 21

Cumulative Target:

0 0 154 200 225 225

Result: 0 0 154 187 187 187

Comments: The target for this indicator will be set, and data collection will commence once the CTP has been enhanced – anticipated to be Q3 FY21.

Performance Indicator: 11

Description: User satisfaction with the Customs Trade Portal (CTP).

Results

Description Baseline FY 17 Jun-Sept

FY 18 Oct-Dec

FY 18 Jan-Mar

FY 18 Apr-Jun

FY 18 Jul– Sept

FY 19 Oct-Dec

FY 19 Jan- Mar

FY 19 Apr- Jun

FY 19 Jul – Sept

FY 20 Oct-Dec

FY 20 Jan-Mar

FY 20 Apr- Jun

FY 20 Jul- Sep

FY 21 Oct-Dec

FY 21 Jan-Mar

FY 21 Apr- Jun

FY 21 July

Site Visits (#) 0 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

Users Responding to Survey (#)

0 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

Satisfied Users (%) 0 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

Q on Q Difference

(%) 0 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

Description Baseline FY 17

FY 18 FY 19 FY 20 FY 21

Cumulative Target:

0 0 0 0 0 70%

Result: 0 0 N/A N/A N/A

Comments: Approval of Code of Conduct Decree-Law is not likely to occur within the remaining term of the project mandate. Instead, USAID-CRP has

developed anti-corruption training based upon existing regulations and laws, covering topics such as integrity and corruption; the impact of corruption on the

organization; how to recognize corrupt activities; and relevant national laws; how to report wrongdoing and conflicts of interest. This training will be delivered in Q3 FY21.

Performance Indicator: 12

Description: Number of government officials receiving UGS-supported anti-corruption training.

Results

Description Baseline FY 17 Jun-Sept

FY 18 Oct-Dec

FY 18 Jan-Mar

FY 18 Apr-Jun

FY 18 Jul– Sept

FY 19 Oct-Dec

FY 19 Jan- Mar

FY 19 Apr- Jun

FY 19 Jul – Sept

FY 20 Oct-Dec

FY 20 Jan-Mar

FY 20 Apr- Jun

FY 20 Jul- Sep

FY 21 Oct-Dec

FY 21 Jan-Mar

FY 21 Apr- Jun

FY 21 July

Male Staff (#) 0 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

Female Staff (#) 0 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

Total Staff (#): 0 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

Description Baseline FY 17

FY 18 FY 19 FY 20 FY 21

Cumulative Target:

0 0 0 0 0 200

Result: 0 0 N/A N/A N/A

Comments:

Oct 2018 – June 2019: USAID-CRP developed a total of 80 position-specific job descriptions as per the Organic Structure of the Customs Authority (DL:

09/2017).

Oct 2020 – Mar 2021: Following promulgation of a new Organic Structure of the Customs Authority (DL: 02/2020) and the associated Nuclear Structure of

Customs Authority Ministerial Diploma, a total of 98 new positions were created. USAID-CRP adjusted the existing 80 job

descriptions already developed and drafted the remaining 18 job descriptions to ensure all 98 complied with the new law and diploma.

Performance Indicator: 13

Description: Development of new task-specific job descriptions for all positions within the Customs Authority.

Results

Description Baseline FY 17 Jun-Sept

FY 18 Oct-Dec

FY 18 Jan-Mar

FY 18 Apr-Jun

FY 18 Jul– Sept

FY 19 Oct-Dec

FY 19 Jan- Mar

FY 19 Apr- Jun

FY 19 Jul – Sept

FY 20 Oct-Dec

FY 20 Jan-Mar

FY 20 Apr- Jun

FY 20 Jul- Sep

FY 21 Oct-Dec

FY 21 Jan-Mar

FY 21 Apr- Jun

FY 21 July

Job Descriptions (#) 0 0 0 0 0 17 27 14 2 0 0 0 0 0 39 59

Cumulative Total (#) 0 0 20 20 20 37 64 78 80 80 80 80 80 80 119 178

Description Baseline FY 17

FY 18 FY 19 FY 20 FY 21

Cumulative Target:

0 0% 0% 50% 100% 100%

Result: 0 0% 45% 100% 100% 223%

March 2021: Following changes within the MOF, CA advised USAID-CRP in late-March 2021 that all job descriptions need to be redrafted using a

new template, which includes the need to add several specific competencies for each position. A total of 21 job descriptions were

subsequently created using this new template and have now been approved by the AC.

April 2021 - Date: USAID-CRP will now transfer the remaining 77 job descriptions onto the new template and submit to the AC for approval.

Comments: The project team will set the indicator target and collect data for this indicator once the CTP has been reconfigured to support the downloading of

documents and gathering of this type of data. Anticipated to be in Q3 FY21.

Performance Indicator: 14

Description: Number of documents downloaded from the Customs Trade Portal (CTP).

Results

Description Baseline FY 17 Jun-Sept

FY 18 Oct-Dec

FY 18 Jan-Mar

FY 18 Apr-Jun

FY 18 Jul– Sept

FY 19 Oct-Dec

FY 19 Jan- Mar

FY 19 Apr- Jun

FY 19 Jul – Sept

FY 20 Oct-Dec

FY 20 Jan-Mar

FY 20 Apr- Jun

FY 20 Jul- Sep

FY 21 Oct-Dec

FY 21 Jan-Mar

FY 21 Apr- Jun

FY 21 July

Downloads (#) 0 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

Cumulative Total (#) 0 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

Description Baseline FY 17

FY 18 FY 19 FY 20 FY 21

Cumulative Target:

0 0 0 0 0 TBD

Result: 0 0 N/A N/A N/A

Annex 2 - Anticipated Impacts and Linked Results

The information in this table elaborates upon the anticipated impact and results of project activities identified in Section 3.

Outcome 1: Revised Kyoto Convention and the Framework of Standards to Secure and Facilitate Global Trade Implemented

# Heading Description of Anticipated Impacts Linked Results

1.1 Build Risk

Management

Capacity.

Compliance with International Standards:

• Measures contained within the associated SOP will help to bring GOTL into

compliance with relevant provisions contained within:

o WCO International Convention on the Simplification and Harmonization of

Customs Procedures (Revised Kyoto Convention - RKC)

Chapter 6 (Customs Control)

o WTO Trade Facilitation Agreement (TFA)

Article 7.4 (Risk Management)

o ASEAN Trade in Goods Agreement (ATIGA)

Article 56 (Risk Management)

o WCO Revised Arusha Declaration

Part 2 (Regulatory Framework)

Part 3 (Transparency)

Part 4 (Automation)

Part 5 (Reform and Modernization)

• Associated activities support WB Doing Business (Trading Across Borders) by

making the process quicker, and thereby reducing costs for CA, OGAs, and the

trade by removing the need to:

o Examine all goods entering or exiting Timor-Leste (application of risk

management)

• Reduction in average import clearance times

(MELP KPI #2)

• Increase in the number of goods processed

without intervention (MELP KPI #3).

• Enhanced compliance with international

standards (MELP KPI #5 and #8).

• Enhanced compliance with international

standards required for ASEAN accession

(Timor-Leste Strategic Development Plan

2011-2030).

• Enhanced compliance with international

standards required for WTO accession

(Timor-Leste submission of MFTR to WTO).

• Enhanced compliance with national

legislation, regulations, or resolutions,

including:

o Law: 07/2020

o DL: 02/2020

o DL: 14/2017

o GR: 24/2017

o Have goods inspected by OGAs without good reason (integration of OGA

risks within AW)

Anti-Corruption / Integrity:

• Reduction in opportunities for human intervention through automatic selection

of declarations and allocation of examination staff (integration of risks within AW

and extended use of AW functionality).

Enhancing Revenue Collection:

• Associated activities will help CA maximize revenue collection by focusing limited

resources toward targeting non-compliance and facilitating low-risk consignments

(enhanced green lane through better risk management).

Good Governance:

• Setting clear written procedures for assessing risk and applying risk parameters

ensures a standardized and transparent approach (adoption and application of

risk management SOP).

Compliance with National Legislation:

• Associated activities will help to bring GOTL into compliance with:

o Measures to Prevent and Combat Corruption (Law: 07/2020)

o Customs Code (Decree-Law: 14/2017)

o Organic Structure of the Customs Authority (Decree-Law: 02/2020)

o Adopt the ASYCUDA System as a Platform for Implementing the Single

Electronic Window of Timor-Leste (Government Resolution: 24/2017)

o Adoption of the Standards of the WCO Arusha Declaration (Government

Resolution: 42/2016)

o Management of Border Posts and Modernization of Customs Management

(Government Resolution: 20/2012)

o GR: 42/2016

o GR: 20/2012

• Delivery of technical assistance supporting

USAID IPV Indicator EG.2.1-1 (Number of

World Trade Organization Trade Facilitation

Agreement provisions.

1.2 Streamline

Procedures and

Compliance with International Standards:

• Associated SOP’s will help to bring GOTL into compliance with relevant

provisions within:

• Reduction in average import clearance times

(MELP KPI #2)

Enhance

Automation.

o WCO International Convention on the Simplification and Harmonization of

Customs Procedures (Revised Kyoto Convention - RKC)

Chapter 3 (Clearance and other Customs Formalities)

Chapter 4 (Duties and Taxes)

Chapter 5 (Relief Consignments)

Chapter 6 (Customs Connected with Importation, Exportation, and

Transit)

Chapter 7 (Application of Information Technology)

Specific Annex A (Arrival of Goods in a Customs Territory)

Specific Annex D (Customs Warehouses)

Specific Annex H (Customs Offences)

o WTO Trade Facilitation Agreement

Article 2.1. (Opportunity to Comment and Information before Entry

into Force)

Article 2.2 (Consultations)

Article 7.2 (Electronic Payment)

Article 7.5 (Post-Clearance Audit)

Article 7.8 (Expedited Shipments)

Article 8 (Border Agency Cooperation)

Article 10 (Formalities Connected with Importation, Exportation, and

Transit)

o ASEAN Trade in Goods Agreement (ATIGA)

Article 54 (Customs Procedures and Control)

Article 61 (Post Clearance Audit)

Article 63 (Temporary Admission)

o WCO Revised Arusha Declaration

Part 2 (Regulatory Framework)

Part 3 (Transparency)

Part 4 (Automation)

• Increase in the number of goods processed

without intervention (MELP KPI #3).

• Enhanced compliance with international

standards (MELP KPI #5 and #8).

• Increase in the number of consignments

subject to desk-based post-clearance audit

checks MELP KPI #6).

• Reduction in time to export goods MELP

KPI #7).

• Enhanced compliance with international

standards required for ASEAN accession

(Timor-Leste Strategic Development Plan

2011-2030).

• Enhanced compliance with international

standards required for WTO accession

(Timor-Leste submission of MFTR to WTO).

• Enhanced compliance with national

legislation, regulations, or resolutions,

including:

o Law: 07/2020

o DL: 02/2020

o DL: 14/2017

o GR: 24/2017

o GR: 42/2016

o GR: 20/2012

• Delivery of technical assistance supporting

USAID IPV Indicator EG.2.1-1 (Number of

Part 5 (Reform and Modernization)

Part 6 (Audit and Investigation)

Part 10 (Relationship with the Private Sector)

o Vienna Convention on Diplomatic Relations

Article 27 (refers to diplomatic bag and communications)

Reduction in Costs:

• Associated activities support WB Doing Business (Trading Across Borders) by

making the process quicker, and thereby reducing costs for CA, OGAs, and the

trade by removing the need to:

o Use a Customs Broker for processing personal goods over the allowance

threshold (IT4)

o Visit the bank to make payment (electronic payments)

o Process temporary import for vehicles manually (automation of temporary

imports)

o Process requests for movement of containers between controlled zones

manually (gate pass)

o Liaise with multiple OGAs for certain consignments (procedural integration)

o Have OGAs inspect goods without good reason (integration of OGA risks

within AW)

o Pay fines for abandonment of goods (automated trader notification of

impending deadlines)

o Examine as many declarations at the point of declaration (use of Post

Clearance Audit)

o Pay duties for certain goods at the point of import (use of bonded

warehouses)

o Process goods only within port areas (use of privately operated places of

temporary storage)

o Apply for approval to acquit the diplomatic bag in every case (revised

diplomatic bag process)

World Trade Organization Trade Facilitation

Agreement provisions).

Anti-Corruption / Integrity:

• Associated activities will help to reduce opportunities for integrity breaches by:

o Reducing the amount of cash handled by officials (electronic payments)

o Automating key processing functions within AW (enhancements to AW)

o Implementing guidance and monitoring on the use of ICT resources (new

ICT policy)

Enhancing Revenue Collection:

• Associated activities will help CA to maximize revenue collection by allowing staff

to:

o Electronically monitor and audit systems to target potential procedural abuse

(enhanced use of functionality within AW)

o Identify non-declared or abandoned goods (manual acquittal of BOLs)

o Apply fair and transparent rules to the processing of traveler’s personal

allowances (use of IT4 and associated policy)

o Apply automated fees in the event of goods missing the import processing

deadline (automation of fees within AW)

o Gain access to, and utilize appropriate space effectively in new planned

infrastructure projects, such as Tibar Seaport and new International

Terminal at Dili Airport (CRP review of facilities and approval of relevant

changes)

o Build professional capacity by ensuring appropriate staff are sent on relevant

training courses (training and development procedure)

o Identify and target potential risk, post-release of consignments (enhanced use

of PCA)

Good Governance:

• Associate activities will assist CA and OGAs in understanding and applying good

governance measures by:

o Working in collaboration with CA and OGA staff members at all stages of

the modernization journey, including problem identification, solution-finding,

and development of new procedures, regulations policies, or similar

(collaborative approach between CRP and stakeholders)

o Implementing and applying clear written procedures to ensure fair and

transparent application of the rules by CA and OGAs (implementation of key

SOPs)

o Socializing new processes or regulations with the trade for comment before

finalization (socializing SOPs with other stakeholders before finalization)

o Understanding and applying relevant national and international laws,

regulations, and conventions (training associated with all SOPs covers key

parts of applicable laws, etc.)

o Checking that approved procedures, policies or regulations are being applied

in the correct way (implementation of internal audit)

o Maximizing the use of automation and reducing human intervention

wherever possible (extended use of functionality within AW)

Compliance with National Legislation and Regulations:

• Associated activities will help to bring GOTL into compliance with relevant

provisions contained within:

o Measures to Prevent and Combat Corruption (Law: 07/2020)

o Customs Code (Decree-Law: 14/2017)

o Organic Structure of the Customs Authority (Decree-Law: 02/2020)

o Adopt the ASYCUDA System as a Platform for Implementing the Single

Electronic Window of Timor-Leste (Government Resolution: 24/2017)

o Adoption of the Standards of the WCO Arusha Declaration (Government

Resolution: 42/2016)

o Management of Border Posts and Modernization of Customs Management

(Government Resolution: 20/2012)

1.3 Draft

Cooperative

Agreements.

Compliance with International Standards:

• Associated data-sharing protocols or agreements will help to bring GOTL into

compliance with relevant provisions contained within:

• Enhanced compliance with international

standards (MELP KPI #5 and #8).

o WCO International Convention on the Simplification and Harmonization of

Customs Procedures (Revised Kyoto Convention - RKC)

Chapter 6 (Customs Connected with Importation, Exportation, and

Transit)

o WTO Trade Facilitation Agreement

Article 8 (Border cooperation)

Article 12 (Customs cooperation)

o ASEAN Trade in Goods Agreement (ATIGA)

Article 85 (Co-operation)

Reduction in Costs:

• Associated data-sharing protocols or agreements will support WB Doing

Business (Trading Across Borders) by making the process quicker, and thereby

reducing costs by removing the need to:

o Liaise with multiple OGAs for specific consignments (procedural integration)

o Have OGAs inspect goods without good reason (integration of OGA risks

within AW)

Enhancing Revenue Collection:

• Activity will help GOTL to maximize revenue collection by allowing staff to:

o Exchange information between government entities in support of targeting

non-compliance (because of data-sharing protocols)

Good Governance:

• Activities will assist GOTL in understanding and applying good governance

measures by:

o Regularizing operating hours for all relevant GOTL stakeholders at ports or

border crossings (Inter-Ministerial Despacho on operating hours)

o Implementing and applying clear written procedures to ensure lawful sharing

of information between government entities (as per data-sharing protocols)

• Enhanced compliance with international

standards required for ASEAN accession

(Timor-Leste Strategic Development Plan

2011-2030).

• Enhanced compliance with international

standards required for WTO accession

(Timor-Leste submission of MFTR to WTO).

• Enhanced compliance with national

legislation, regulations, or resolutions,

including:

o Law: 07/2020

o DL: 02/2020

o DL: 14/2017

o GR: 24/2017

o GR: 20/2012

• Delivery of technical assistance supporting

USAID IPV Indicator EG.2.1-1 (Number of

World Trade Organization Trade Facilitation

Agreement provisions).

o Ensuring relevant stakeholders and the trading community fully understand

GOTL roles and powers (delivery of associated training in support of these

activities)

Compliance with National Legislation and Regulations:

• Activities help bring GOTL into compliance with relevant national provisions

contained within:

o Measures to Prevent and Combat Corruption (Law: 07/2020)

o Customs Code (Decree-Law: 14/2017)

o Organic Structure of the Customs Authority (Decree-Law: 02/2020)

o Management of Border Posts and Modernization of Customs Management

(Government Resolution: 20/2012)

1.4 Develop and

Implement

Integrated

Services.

Compliance with International Standards:

• Associated activities will help to bring GOTL into compliance with relevant

provisions within:

o WCO International Convention on the Simplification and Harmonization of

Customs Procedures (Revised Kyoto Convention - RKC)

Chapter 3 (Clearance and other Customs Formalities)

Chapter 7 (Application of Information Technology)

o WTO Trade Facilitation Agreement

Article 10 (Formalities Connected with Importation, Exportation, and

Transit)

o ASEAN Trade in Goods Agreement (ATIGA)

Article 49 (Establishment of the ASEAN Single Window)

o WCO Revised Arusha Declaration

Part 3 (Transparency)

Part 4 (Automation)

Part 5 (Reform and Modernization)

Reduction in Costs:

• Reduction in average import clearance times

(MELP KPI #2)

• Increase in the number of goods processed

without intervention (MELP KPI #3).

• Enhanced compliance with international

standards (MELP KPI #5 and #8).

• Enhanced compliance with international

standards required for ASEAN accession

(Timor-Leste Strategic Development Plan

2011-2030).

• Enhanced compliance with international

standards required for WTO accession

(Timor-Leste submission of MFTR to WTO).

• Enhanced compliance with national

legislation, regulations, or resolutions,

including:

• Associated activities will support WB Doing Business (Trading Across Borders)

by making the process quicker, and thereby reducing costs by removing the need

to have:

o The trade to liaise with multiple OGAs for specific consignments (procedural

integration)

o OGAs inspect goods without good reason (integration of OGA risks within

AW)

o OGAs to operate additional, parallel systems to the CA import and export

process (procedural integration)

Anti-Corruption / Integrity:

• Associated activities will help GOTL to reduce opportunities for integrity

breaches by:

o Enhancing the use of automation by OGAs (procedural integration within

AW)

o Automating essential processing functions within AW used by OGAs

(enhancements to AW)

Enhancing Revenue Collection:

• Associated activities will help GOTL to maximize revenue collection by allowing

staff to:

o Process imports and exports one-time, electronically, and without the need

for parallel processing by multiple different OGAs (extended use of AW and

procedural streamlining and integration)

Good Governance:

• Activities assist CA and OGAs in understanding and applying good governance

measures by:

o Working in collaboration with CA and OGA staff members at all stages of

the modernization journey, including problem identification, solution finding,

and development of new procedures, regulations policies, or similar

(collaborative approach between CRP and stakeholders)

o Law: 07/2020

o DL: 02/2020

o DL: 14/2017

o GR: 24/2017

o GR: 42/2016

o GR: 20/2012

• Delivery of technical assistance supporting

USAID IPV Indicator EG.2.1-1 (Number of

World Trade Organization Trade Facilitation

Agreement provisions).

o Implementing and applying clear written procedures to ensure fair and

transparent application of the rules by CA and OGAs (implementation of key

SOPs)

o Understanding and applying relevant national and international laws,

regulations, and conventions (training associated with all SOPs covers key

parts of applicable laws, etc.)

o Checking that approved procedures, policies or regulations are being applied

in the correct way (implementation of internal audit)

o Maximizing the use of automation and reducing human intervention

wherever possible (extended use of functionality within AW)

Compliance with National Legislation and Regulations:

• Activities will help bring GOTL into compliance with relevant national

provisions within:

o Measures to Prevent and Combat Corruption (Law: 07/2020)

o Customs Code (Decree-Law: 14/2017)

o Organic Structure of the Customs Authority (Decree-Law: 02/2020)

o Adopt the ASYCUDA System as a Platform for Implementing the Single

Electronic Window of Timor-Leste (Government Resolution: 24/2017)

o Adoption of the Standards of the WCO Arusha Declaration (Government

Resolution: 42/2016)

o Management of Border Posts and Modernization of Customs Management

(Government Resolution: 20/2012)

Outcome 2: World Customs Organization (WCO) Revised Arusha Declaration Implemented

# Heading Description of Anticipated Impacts Linked Results

2.1 Support

Implementation

of the Organic

Structure.

Compliance with International Standards:

• Associated activities will help to bring GOTL into compliance with relevant

provisions within:

o WCO Revised Arusha Declaration

Part 1 (Leadership and Commitment)

Part 8 (Human Resource Management)

Part 9 (Morale and Organizational Culture)

Reduction in Costs:

• Associated activities will help GOTL to reduce costs by:

o Streamlining and re-alignment of key functions and activities within CA as an

organization to ensure efficient workflows and reporting lines

(reorganization of structures in line with DL 02/2020)

o Enhancing service delivery by ensuring that staff understand their roles and

responsibilities and providing better and more transparent access to training

(development and implementation of position-specific job descriptions for all

CA positions and the Training and Evaluation Regime)

Anti-Corruption / Integrity:

• Associated activities will help to reduce opportunities for integrity breaches by:

o Increasing staff salaries (under the Special Career Regime)

o Ensuring staff better understand their roles and responsibilities, thereby

making them more accountable (development and implementation of

position-specific job descriptions for all CA positions)

Enhancing Revenue Collection:

• Activity will help GOTL to maximize revenue collection by allowing staff to:

• Enhanced compliance with international

standards (MELP KPI #5 and #8).

• Develop new task-specific job descriptions

for all positions within the Customs

Authority (MELP KPI #13).

• Enhanced compliance with national

legislation, regulations, or resolutions,

including:

o Law: 07/2020

o DL: 02/2020

o DL: 14/2017

o GR: 42/2016

o Perform their jobs more effectively and efficiently following appropriate

training (Training and Evaluation Regime)

o Regularize the operating hours across key ministries (Inter-Ministerial

Despacho governing operating hours of key ministries)

Good Governance:

• Activities will assist GOTL in understanding and applying good governance

measures by:

o Working in collaboration with CA staff members at all stages of the

implementation of DL 02/2020, including problem identification, solution-

finding, and development of new procedures, regulations policies, or similar

(collaborative approach between CRP and stakeholders)

o Implementing and applying clear written procedures to ensure fair and

transparent application of the HR-related rules, such as recruitment,

disciplinary action, promotion, training nominations, etc. (implementation of

key SOPs and associated training)

o Understanding and applying relevant national and international laws,

regulations, and conventions (training associated with all SOPs covers key parts of applicable laws, etc.)

Compliance with National Legislation and Regulations:

• Activities will help to bring GOTL into compliance with relevant provisions

contained within:

o Measures to Prevent and Combat Corruption (Law: 07/2020)

o Customs Code (Decree-Law: 14/2017)

o Organic Structure of the Customs Authority (Decree-Law: 02/2020)

o Adoption of the Standards of the WCO Arusha Declaration (Government

Resolution: 42/2016)

2.2 Develop and

Implement

Anti-

Corruption

Activities.

Compliance with International Standards:

• Associated activities will help to bring GOTL into compliance with relevant

provisions contained within:

o WCO Revised Arusha Declaration

Part 1 (Leadership and Commitment)

Part 2 (Regulatory Framework)

Part 3 (Transparency)

Part 4 (Automation)

Part 5 (Reform and Modernization)

Part 6 (Audit and Investigation)

Part 7 (Code of Conduct)

Part 8 (Human Resources)

Part 9 (Morale and Organizational Culture)

Part 10 (Relationship with the Private Sector)

Reduction in Costs:

• Associated activities will support WB Doing Business (Trading Across Borders)

by making the process quicker, and thereby reducing costs for GOTL and the

trade by:

o Identifying and proactively tackling corruption and other malfeasance within

the CA (SIVA, Integrity Action Plan, Code of Conduct and Declaration of

Assets and Liabilities, and Customs Hotline)

o Facilitating legitimate trade by focusing resources towards identified risk

(Customs Hotline)

o Reducing the number of unauthorized staff absences (ongoing monitoring of

CA attendance system)

o Moving towards a client-focused service by CA committing to the

implementation of minimum standards of performance and service levels

(Customs Client Services Charter)

Anti-Corruption / Integrity:

• Enhanced compliance with international

standards (MELP KPI #5 and #8).

• Number of calls or reports recorded in the

new Customs Intelligence Database (MELP

KPI #9).

• The number of Customs staff reported for

allegedly breaching Civil Service

Commission, or Customs H.R. related rules

and regulations (MELP KPI #10).

• The number of government officials receiving

UGS-supported anti-corruption training

(MELP KPI #12).

• Enhanced compliance with national

legislation, regulations, or resolutions,

including:

o Law: 07/2020

o DL: 02/2020

o DL: 14/2017

o GR: 42/2016

• Associated activities will help CA to reduce opportunities for integrity breaches

by:

o Ensuring an effective deterrence through implementation and enforcement of

minimum standards of behavior (Code of Conduct)

o Providing an effective deterrent to the unauthorized absence (staff

attendance system)

o Rotating members of staff through the organization on a periodical basis

(employee rotation policy)

o Proactively auditing operational activities to ensure these are being

undertaken in line with approved processes, procedures, and regulations

(internal audit procedure)

o Ensuring staff have fair and transparent access to relevant training events

(training and development activities procedure)

Enhancing Revenue Collection:

• Associated activities will help CA to maximize revenue collection by allowing

GOTL staff and the public to:

o Report information confidentially and securely (Custom Hotline)

o Effectively tackle corruption and other potential malfeasance (Code of

Conduct)

o Build professional capacity by ensuring appropriate staff are sent on relevant

training courses

Good Governance:

• Activities will assist GOTL in understanding and applying good governance

measures by:

o Working in collaboration with CA and OGA staff members at all stages of

the modernization journey, including problem identification, solution-finding,

and development of new procedures, regulations policies, or similar

(collaborative approach between CRP and stakeholders)

o Implementing and applying clear written procedures to ensure fair and

transparent application of the rules by CA and OGAs (implementation of key

SOPs and associated training)

o Socializing new processes or regulations with the trade for comment before

finalization (socializing activities with other stakeholders)

o Understanding and applying relevant national and international laws,

regulations, and conventions (training associated with all SOPs covers key

parts of applicable laws, etc.)

o Checking that approved procedures, policies or regulations are being applied

in the correct way (implementation of internal audit)

o Maximizing the use of automation and reducing human intervention

wherever possible (extended use of functionality within AW, and

implementation of automated National Hotline and associated database)

Compliance with National Legislation and Regulations:

• Activities will help to bring GOTL into compliance with relevant provisions

contained within:

o Measures to Prevent and Combat Corruption (Law: 07/2020)

o Customs Code (Decree-Law: 14/2017)

o Organic Structure of the Customs Authority (Decree-Law: 02/2020)

o Adoption of the Standards of the WCO Arusha Declaration (Government

Resolution: 42/2016)

2.3 Implement the

Customs

Strategic Plan.

Compliance with International Standards:

• Measures contained within the strategic plan cut across and support the

development, adoption, and application of multiple relevant standards, including

those contained within:

o WCO International Convention on the Simplification and Harmonization of

Customs Procedures (Revised Kyoto Convention)

o WTO Trade Facilitation Agreement

o ASEAN Trade in Goods Agreement

• Reduction in average import clearance times

(MELP KPI #2)

• Increase in the number of goods processed

without intervention (MELP KPI #3).

• Enhanced compliance with international

standards (MELP KPI #5 and #8).

o WCO Revised Arusha Declaration

Reduction in Costs:

• Measures contained within the strategic plan support GOTL and CA efforts to

adopt and apply more efficient and effective services (strategic plans include most

CRP related modernization activities)

Anti-Corruption / Integrity:

• Measures contained within the strategic plan helps to reaffirm GOTL and CAs

commitment to effectively tackling corruption and other misconduct within the

organization (strategic plans include most CRP related modernization activities)

Enhancing Revenue Collection:

• Measures contained within the strategic plan support GOTL and CA efforts to

adopt and apply more efficient and effective services (strategic plans include most

CRP related modernization activities)

Good Governance:

• Activities will assist GOTL in understanding and applying good governance

measures by:

o Developing, adopting, and applying clear written procedures to ensure fair

and transparent application of the rules (implementation of SOPs, policies,

regulations, and associated training)

o Socializing new processes or regulations with the trade for comment before

finalization (engaging and collaboration with other stakeholders for input)

o Understanding and applying relevant national and international laws,

regulations, and conventions (delivery of pertinent training)

o Checking that approved procedures, policies or regulations are being applied

correctly (use of internal audit)

o Maximizing the use of automation and reducing human intervention

wherever possible (extended use of functionality within AW)

• Enhanced compliance with international

standards required for ASEAN accession

(Timor-Leste Strategic Development Plan

2011-2030).

• Enhanced compliance with international

standards required for WTO accession

(Timor-Leste submission of MFTR to WTO).

• Enhanced compliance with national

legislation, regulations, or resolutions,

including:

o Law: 07/2020

o DL: 02/2020

o DL: 14/2017

o GR: 24/2017

o GR: 42/2016

o GR: 20/2012

Compliance with National Legislation and Regulations:

• Adoption and application of activities and measures contained within the

strategic plan will help to bring GOTL into compliance with relevant provisions

contained within:

o Measures to Prevent and Combat Corruption (Law: 07/2020)

o Customs Code (Decree-Law: 14/2017)

o Organic Structure of the Customs Authority (Decree-Law: 02/2020)

o Adopt the ASYCUDA System as a Platform for Implementing the Single

Electronic Window of Timor-Leste (Government Resolution: 24/2017)

o Adoption of the Standards of the WCO Arusha Declaration (Government

Resolution: 42/2016)

o Management of Border Posts and Modernization of Customs Management

(Government Resolution: 20/2012)

2.4 Establish and

Support

Consultative

Forums.

Compliance with International Standards:

• Associated activities will help to bring GOTL into compliance with relevant

provisions contained within:

o WTO Trade Facilitation Agreement

Article 2.1. (Opportunity to Comment and Information before Entry

into Force)

Article 2.2 (Consultations)

o ASEAN Trade in Goods Agreement (ATIGA)

Article 65 (Transparency)

Article 66 (Enquiry Points)

o WCO Revised Arusha Declaration

Part 1 (Leadership and Commitment)

Part 2 (Regulatory Framework)

Part 3 (Transparency)

Part 5 (Reform and Modernization)

• Enhanced compliance with international

standards (MELP KPI #5 and #8).

• Enhanced compliance with international

standards required for ASEAN accession

(Timor-Leste Strategic Development Plan

2011-2030).

• Enhanced compliance with international

standards required for WTO accession

(Timor-Leste submission of MFTR to WTO).

• Enhanced compliance with national

legislation, regulations, or resolutions,

including:

o Law: 07/2020

o DL: 02/2020

Part 10 (Relationship with the Private Sector)

Reduction in Costs:

• Associated activities will support WB Doing Business (Trading Across Borders)

by making the process quicker, and thereby reducing costs for GOTL and the

trade by:

o Allowing key stakeholders, such as the trading community, to discuss

impediments to trade and associated solutions with CA and OGAs in a

collaborative way (establishment of the Customs Trade Consultative

Committee - CTCC)

o Allowing CA and OGAs to socialize new ideas, changes in the law, or

procedural amendments before implementation (implementation of CTCC)

o Provision of day-to-day advice to the trading community before the

lodgment of the declaration to CA (operation of the CA Helpdesk)

Anti-Corruption / Integrity:

• Associated activities will help CA to reduce opportunities for integrity breaches

by:

o Empowering the trade to understand relevant rules better, meaning they can

challenge officials if additional requirements are requested (access to

information through the CTCC)

Enhancing Revenue Collection:

• Associated activities will help CA to maximize revenue collection by allowing

GOTL staff and the general public to:

o Better understand relevant rules (enhanced outreach and use of the CTCC)

o Provide input on new regulations or rules before finalization (collaboration

via CTCC and other activities)

Good Governance:

• Activities will assist GOTL in understanding and applying good governance

measures by:

o DL: 14/2017

o GR: 42/2016

o Working in collaboration with the public and trading community at key

stages of the modernization journey, including problem identification,

solution-finding, and development of new procedures, regulations policies, or

similar (collaborative approach between CRP, CA, OGAs, and the trading

community)

Compliance with National Legislation and Regulations:

• Activities will help to bring GOTL into compliance with relevant provisions

contained within:

o Measures to Prevent and Combat Corruption (Law: 07/2020)

o Customs Code (Decree-Law: 14/2017)

o Organic Structure of the Customs Authority (Decree-Law: 02/2020)

o Adoption of the Standards of the WCO Arusha Declaration (Government

Resolution: 42/2016)

2.5 Develop and

Deliver

Workplace

Mentoring and

Training.

Compliance with International Standards:

• Associated activities will help to bring GOTL into compliance with relevant

provisions contained within:

o WCO Revised Arusha Declaration

Part 1 (Leadership and Commitment)

Part 5 (Reform and Modernization)

Part 8 (Human Resources)

Part 9 (Morale and Organizational Culture)

Reduction in Costs:

• Associated activities will support WB Doing Business (Trading Across Borders)

by making the process quicker, and thereby reducing costs for GOTL and the

trade by:

• Increase in revenue collected by customs

(MELP KPI #1).

• Reduction in time to import goods (MELP

KPI #2).

• Percentage of goods imported and

processed without intervention (i.e.,

processed via the Green Lane) (MELP KPI

#3).

• The number of CA staff that have

successfully completed relevant training

(MELP KPI #4).

• Enhanced compliance with international

standards (MELP KPI #5 and #8).

o Professionalizing members of the CA and OGA workforce to understand

better their roles, responsibilities, and application of new processes,

procedures, regulations, or similar (development and delivery of training and

workplace mentoring to key counterparts)

Anti-Corruption / Integrity:

• Associated activities will help CA to reduce opportunities for integrity breaches

by:

o Ensuring that members of the workforce better understand their roles,

responsibilities, and application of new processes, procedures, regulations, or

similar (development and delivery of training and workplace mentoring to

key counterparts)

o Ensuring that members of the workforce understand the minimum standards

of behavior, and the associated penalties (Code of Conduct)

Enhancing Revenue Collection:

• Associated activities will help CA to maximize revenue collection by allowing CA

and OGA staff to:

o Better understand their roles and responsibilities (development and delivery

of training and workplace mentoring to key counterparts)

o Effectively tackle corruption and other potential malfeasance (Code of

Conduct)

o Build professional capacity by ensuring appropriate staff are sent on relevant

training courses (training needs identified by CRP and reported to relevant

managers)

Good Governance:

• Activities will assist GOTL in understanding and applying good governance

measures by:

o Professionalizing members of the CA and OGA workforce to better

understand their roles, responsibilities, and application of new processes,

• Reduction in time to export goods (MELP

KPI #7).

• Enhanced compliance with national

legislation, regulations, or resolutions,

including:

o Law: 07/2020

o DL: 02/2020

o DL: 14/2017

o GR: 42/2016

procedures, regulations, or similar (development and delivery of training and

workplace mentoring to key counterparts)

o Understanding and applying relevant national and international laws,

regulations, and conventions (training associated with all SOPs covers key

parts of applicable laws, etc.)

Compliance with National Legislation and Regulations:

• Activities will help to bring GOTL into compliance with relevant provisions

contained within:

o Measures to Prevent and Combat Corruption (Law: 07/2020)

o Customs Code (Decree-Law: 14/2017)

o Organic Structure of the Customs Authority (Decree-Law: 02/2020)

o Adoption of the Standards of the WCO Arusha Declaration (Government

Resolution: 42/2016)

2.6 Develop and

Deliver

Workshops,

Seminars, and

Awareness

Events.

Compliance with International Standards:

• Associated activities will help to bring GOTL into compliance with relevant

provisions contained within:

o WTO Trade Facilitation Agreement

Article 2.1. (Opportunity to Comment and Information before Entry

into Force)

Article 2.2 (Consultations)

o ASEAN Trade in Goods Agreement (ATIGA)

Article 65 (Transparency)

Article 66 (Enquiry Points)

o WCO Revised Arusha Declaration

Part 1 (Leadership and Commitment)

Part 2 (Regulatory Framework)

Part 3 (Transparency)

Part 5 (Reform and Modernization)

• Increase in revenue collected by customs

(MELP KPI #1).

• Reduction in time to import goods (MELP

KPI #2).

• Percentage of goods imported and

processed without intervention (i.e.,

processed via the Green Lane) (MELP KPI

#3).

• Enhanced compliance with international

standards (MELP KPI #5 and #8).

• Reduction in time to export goods (MELP

KPI #7).

• Enhanced compliance with international

standards required for ASEAN accession

Part 10 (Relationship with the Private Sector)

Reduction in Costs:

• Associated activities will support WB Doing Business (Trading Across Borders)

by making the process quicker, and thereby reducing costs for GOTL and the

trade by:

o Allowing key stakeholders, such as the trading community, to discuss

impediments to trade and associated solutions with CA and OGAs in a

collaborative way (delivery of awareness sessions, seminars, and workshops

for key stakeholders)

o Helping members of the trading community, OGAs, and other stakeholders,

to better understand new rules, regulations, policies, or similar, and thereby

avoid potential non-compliance (delivery of awareness sessions, seminars,

and workshops for key stakeholders)

o Allowing CA to socialize new ideas, changes in the law, or procedural

amendments before implementation (delivery of awareness sessions,

seminars, and workshops for key stakeholders)

o Enhancing confidence within the public and private sectors by building CA

capacity to develop and deliver more consistent, regular, and professional

communications and engagement with OGAs, members of the trading

community, and the public (development and implementation of the CA

Communications and Engagement Strategy)

Anti-Corruption / Integrity:

• Associated activities will help CA to reduce opportunities for integrity breaches

by:

o Empowering the trade to understand relevant rules better, meaning they can

challenge officials if additional requirements are requested (delivery of

awareness sessions, seminars, and workshops for key stakeholders)

Enhancing Revenue Collection:

(Timor-Leste Strategic Development Plan

2011-2030).

• Enhanced compliance with international

standards required for WTO accession

(Timor-Leste submission of MFTR to WTO).

• Enhanced compliance with national

legislation, regulations, or resolutions,

including:

o Law: 07/2020

o DL: 02/2020

o DL: 14/2017

o GR: 42/2016

• Associated activities will help CA to maximize revenue collection by allowing

GOTL staff and the general public to:

o Better understand relevant rules (delivery of awareness sessions, seminars,

and workshops for key stakeholders)

o Provide input on new regulations or rules before finalization (delivery of

awareness sessions, seminars, and workshops for key stakeholders)

Good Governance:

• Activities will assist GOTL in understanding and applying good governance

measures by:

o Working in collaboration with the public and trading community at key

stages of the modernization journey, including problem identification,

solution-finding, and development of new procedures, regulations policies, or

similar (collaborative approach between CRP, CA, OGAs, and the trading

community)

Compliance with National Legislation and Regulations:

• Activities will help to bring GOTL into compliance with relevant provisions

contained within:

o Measures to Prevent and Combat Corruption (Law: 07/2020)

o Customs Code (Decree-Law: 14/2017)

o Organic Structure of the Customs Authority (Decree-Law: 02/2020)

o Adoption of the Standards of the WCO Arusha Declaration (Government

Resolution: 42/2016)

2.7 Develop

Outreach

Materials.

Compliance with International Standards:

• Associated activities will help to bring GOTL into compliance with relevant

provisions contained within:

o WTO Trade Facilitation Agreement

Article 2.1. (Opportunity to Comment and Information before Entry

into Force)

• Increase in revenue collected by customs

(MELP KPI #1).

• Reduction in time to import goods (MELP

KPI #2).

Article 2.2 (Consultations)

o ASEAN Trade in Goods Agreement (ATIGA)

Article 65 (Transparency)

Article 66 (Enquiry Points)

o WCO Revised Arusha Declaration

Part 10 (Relationship with the Private Sector)

Reduction in Costs:

• Associated activities will support WB Doing Business (Trading Across Borders)

by making the process quicker, and thereby reducing costs for GOTL and the

trade by:

o Helping members of the trading community, OGAs, and other stakeholders,

to better understand new rules, regulations, policies, or similar, and thereby

ensuring voluntary compliance with the rules and avoiding delays and

associated penalties (development and publication of outreach materials,

such as short videos, information booklets, and newsletters)

o Allowing CA to socialize new ideas, changes in the law, or procedural

amendments before implementation (development and publication of

outreach materials noted above)

Anti-Corruption / Integrity:

• Associated activities will help CA to reduce opportunities for integrity breaches

by:

o Empowering the trade to understand relevant rules better, meaning they can

challenge officials if additional requirements are requested (development and

publication of outreach materials noted above)

o Providing a viable deterrence to corruption or other misconduct by helping

members of the CA, OGAs, public, and trading community to understand

better how they can report relevant information (development of outreach

material associated with the Customs Hotline, including short videos,

information booklets, and newsletters)

• Percentage of goods imported and

processed without intervention (i.e.,

processed via the Green Lane) (MELP KPI

#3).

• Enhanced compliance with international

standards (MELP KPI #5 and #8).

• Reduction in time to export goods (MELP

KPI #7).

• Enhanced compliance with international

standards required for ASEAN accession

(Timor-Leste Strategic Development Plan

2011-2030).

• Enhanced compliance with international

standards required for WTO accession

(Timor-Leste submission of MFTR to WTO).

• Enhanced compliance with national

legislation, regulations, or resolutions,

including:

o Law: 07/2020

o DL: 02/2020

o DL: 14/2017

o GR: 42/2016

Enhancing Revenue Collection:

• Activity will help CA to maximize revenue collection by allowing:

o CA and OGA staff to better understand relevant rules d thereby avoid

unnecessary delays (development and publication of outreach materials

noted above)

o Members of the trading community to better understand how the relevant

systems should operate, thereby enhancing their trust in the relevant

systems and associated confidence when determining whether to import or

export more goods (development and publication of outreach materials

noted above)

o Allowing CA to socialize new ideas, changes in the law, or procedural

amendments before implementation (development and publication of

outreach materials stated above)

Good Governance:

• Activities will assist GOTL in understanding and applying good governance

measures by:

o Empowering the public and trading community to better understand changes

that are being made in the CA and what impact these may have

(development and publication of outreach materials noted above)

Compliance with National Legislation and Regulations:

• Activities will help to bring GOTL into compliance with relevant provisions

contained within:

o Measures to Prevent and Combat Corruption (Law: 07/2020)

o Customs Code (Decree-Law: 14/2017)

o Organic Structure of the Customs Authority (Decree-Law: 02/2020)

o Adoption of the Standards of the WCO Arusha Declaration (Government

Resolution: 42/2016)

Outcome 3: National Trade Information Portal Operational

# Heading Description of Anticipated Impacts Linked Results

3.1 Enhance the

Customs Trade

Portal.

Compliance with International Standards:

• This activity will help to bring GOTL into compliance with relevant provisions

within:

o WCO International Convention on the Simplification and Harmonization of

Customs Procedures (Revised Kyoto Convention - RKC)

Chapter 7 (Application of Information Technology)

o WTO Trade Facilitation Agreement

Article 1.1. (Publication)

Article 1.2. (Information Available Through Internet)

Article 1.3. (Enquiry Points)

o ASEAN Trade in Goods Agreement (ATIGA)

Article 7 (Fees and Charges Connected with Importation and

Exportation)

Article 65 (Transparency)

Article 66 (Enquiry Points)

o WCO Revised Arusha Declaration

Part 3 (Transparency)

Part 10 (Relationship with the Private Sector)

Reduction in Costs:

• Associated activities will support WB Doing Business (Trading Across Borders)

by making the process quicker, and thereby reducing costs for GOTL and the

trade by:

o Providing free and easy online access to relevant trade-related information,

so stakeholders better understand what is required, and thereby ensuring

voluntary compliance with the rules and avoiding delays and associated

• User satisfaction with the Customs Trade

Portal (MELP KPI #11).

• Number of documents downloaded from the

Customs Trade Portal (MELP KPI #14).

• Enhanced compliance with international

standards (MELP KPI #5 and #8).

• Enhanced compliance with international

standards required for ASEAN accession

(Timor-Leste Strategic Development Plan

2011-2030).

• Enhanced compliance with international

standards required for WTO accession

(Timor-Leste submission of MFTR to WTO).

• Enhanced compliance with national

legislation, regulations, or resolutions,

including:

o Law: 07/2020

o DL: 14/2017

o GR: 42/2016

• Delivery of technical assistance supporting

USAID IPV Indicator EG.2.1-1 (Number of

World Trade Organization Trade Facilitation

Agreement provisions).

penalties (enhancement of existing customs website, and collation and

uploading of relevant information within the Customs Trade Portal - CTP)

Anti-Corruption / Integrity:

• Associated SOP’s will help to reduce opportunities for integrity breaches by:

o Empowering the trade to understand relevant rules better, meaning they can

challenge officials if additional requirements are requested (enhancement of

existing customs website, and collation and uploading of pertinent

information within the CTP)

o Providing a viable deterrence to corruption or other misconduct by helping

members of the CA, OGAs, public, and trading community to better

understand how they can report relevant information (as above)

Enhancing Revenue Collection:

• Activity will help CA to maximize revenue collection by allowing:

o CA and OGA staff to better understand relevant rules d thereby avoid

unnecessary delays (enhancement of existing customs website, and collation

and uploading of pertinent information within the CTP)

o Members of the trading community to better understand how the relevant

systems should operate, thereby enhancing their trust in the relevant

systems and associated confidence when determining whether to import or

export more goods (as above)

o Allowing CA to socialize new ideas, changes in the law, or procedural

amendments before implementation (as above)

Good Governance:

• Associated activities will assist CA in understanding and applying good

governance measures by:

o Empowering the public and trading community to better understand relevant

rules, procedures, regulations, and policies, and what impact these may have

(enhancement of existing customs website, and collation and uploading of

pertinent information within the CTP)

Compliance with National Legislation and Regulations:

• Activities will help to bring GOTL into compliance with relevant provisions

contained within:

o Measures to Prevent and Combat Corruption (Law: 07/2020)

o Customs Code (Decree-Law: 14/2017)

o Organic Structure of the Customs Authority (Decree-Law: 02/2020)

o Adoption of the Standards of the WCO Arusha Declaration (Government

Resolution: 42/2016)

#

Heading Description of Anticipated Impacts

3.2 Integrate Key Information within the CTP. As per Activity 3.1

3.3 Prepare Policies and Procedural Manuals. As per Activity 3.1

3.4 Develop M&E Strategy to Measure CTP Impact on Trade. As per Activity 3.1

Annex 3 - Regulations, Procedures or Policies Developed and Implementation Status

The information contained within this table is linked to Performance Indicators #5 and #8, contained within Annex 1. This table is correct as of March 31, 2020.

In some cases, the implementation date has occurred before the approval date. This is because there were ongoing delays to the approval of documents throughout FY17, FY18, and part of FY19; however, the project team continued to implement elements, or associated AW functionality, in anticipation of the approved SOP or similar:

# Document Name Brief Description Type Approved and Date

Status Comments

1. Application of Risk

Management to the

Clearance of Goods in

Timor-Leste.

Application of Risk

Management to the

movement of goods

(import and export).

SOP Yes

July 30, 2019

Implemented

throughout

FY20

Most parts of SOP were implemented following the

delivery of extensive workplace mentoring and training

to CA. Ongoing work to integrate OGAs within the

risk management framework.

2. Clearance of Dutiable

Goods in Traveler’s

Accompanied Baggage.

New procedure for

dealing with

traveler’s baggage

where duties are

owed.

SOP Yes

April 24, 2020

Implemented

March 2018

Appropriate configuration changes were made within

AW to support the new process, including using a

streamlined IT4 form. The new procedure was

implemented and activated in March 2018. SOP later

approved CA in April 2020.

3. Payment of Customs

Duties, Taxes, Fees,

and Charges through

Point of Sale (PoS)

Terminals.

New procedure for

the payment of

Customs duties/taxes

through Point of Sale

(PoS) terminals.

SOP No

N/A

Implemented

April 2018

Despite not being formally approved, acceptance of

electronic payments by way of POS machines was

implemented in April 2018; however, use has been

minimal due to excessive charges levied by the banks.

As such, the component parts of the SOP have been

implemented; however, approval of the SOP has not

been formalized.

4. Temporary Admission

of Goods Using a

Carnet.

New simplified

procedure for inward

and outward

processing of goods

or vehicles that

arrive for temporary

admission and

associated electronic

“T1C” facility within

AW.

SOP Yes

July 24, 2019

Implemented

July 2020

The new procedure was implemented following the

delivery of workplace mentoring to CA. Functionality

activated within AW in July 2020.

5. Manual Acquittal of

Bills of Lading from the

ASYCUDA World

Manifest.

New procedure for

manually acquitting

outstanding Bill of

Ladings within AW

Manifest for goods or

conveyances not

covered by a DAU.

SOP Yes

July 14, 2020

Implemented

July 2020

The new procedure was implemented in July 2020,

following the delivery of workplace mentoring to CA.

6. Container Transfer

between Customs

Controlled Areas,

New procedure for

stakeholders to apply

for approval to move

containers/ goods

under Customs

Control.

SOP Yes

July 24, 2019

Implemented

February

2020

Appropriate configuration changes were made within

AW to support the new process. The new policy was

fully implemented following subsequent workplace

training and mentoring to CA, Customs Brokers, and

operators (ANL).

7. Streamlined Import

Clearance Process for

Dili Seaport, Dili

Airport, and Dili Post

Office.

New streamlined

import procedure

which supports single

electronic processing

and integration of

OGAs within CA

procedure.

SOP No Ongoing SOP finalized and submitted to the AC for review and

approval on March 31, 2021.

8. Owner’s Recovery of

Abandoned Goods and

Application of 5% Fee

under Art 273 of the

Customs Code.

New procedure for

owner’s recovery of

goods declared

abandoned - i.e.,

failure to submit

declaration within

20/30 days from

arrival.

SOP No Implemented

August 2018

Despite not being formally approved, AW was

reconfigured to identify out-of-time goods, notify the

owner by email, and apply the appropriate penalty. As

such, the component parts of the SOP were

implemented in March 2018 when the new

functionality was activated; however, approval of the

SOP is still not formalized.

9. Customs Authority

Code of Conduct.

New Code of

Conduct for CA

detailing behaviors

expected of all CA

employees.

Policy Yes

June 5, 2019

Under

Review Finalized and approved by CA on June 5, 2019 but

cannot be enforced following the Organic Structure of

the Customs Authority (Decree-Law 2/2020), which

requires any new Code of Conduct to be enacted by

way of a Decree-Law. This could not have been

anticipated when work commenced on this activity in

2018. Despite the CA and project team’s best efforts

to highlight the importance of this activity, the MOF

Legal Unit has had competing priorities. Determination

of these priorities continues to be outside the direct

control of USAID-CRP. It is doubtful that any

substantive progress will be made on the Code of

Conduct by the MOF Legal Unit within the remaining

term of the USAID-CRP period of performance. The

project team will continue to monitor this situation

closely, and if the MOF Legal Unit does draft, submit,

and secure approval for a new Code of Conduct DL,

then USAID-CRP will assist the CA to socialize and

implement.

10. Declaration of

Interests, Assets, and

Liabilities.

Declaration form

requiring CA

employees to declare

their interests,

assets, and liabilities.

Policy No

N/A

Under

Review

Declaration template finalized and approved verbally

by CA, but activity could not be progressed due to

promulgation of the Organic Structure of the Customs

Authority (Decree-Law 2/ 2020), which initially

required the enactment of this Declaration by way of a

Decree-Law. In February 2021, MOF/CA advised

USAID-CRP that this requirement has now been

superseded by Law 7/2020 (Measures to Prevent and

Combat Corruption). Instead, all government

ministries must now submit declarations developed

and issued by the Anti-Corruption Commission (CAC).

These changes could not have been anticipated when

work commenced on this activity in 2018. As a result

of these changes, USAID-CRP planned to assist CA in

developing and delivering training to staff on how to

any new declaration issued by CAC. CAC has not

advised MOF/CA as to when these declarations will be

issued and what level or type of implementation

support there may be, such as the delivery of training

or similar. Until CAC announces these time frames,

USAID-CRP can't determine whether this activity can

still be undertaken within the remaining term of the

project mandate. The project team will continue to

monitor this situation closely. Depending upon any

timeframes announced by CAC, USAID-CRP will then

identify what level of support can realistically be

delivered.

11. Policy for the Use of

Information

Technology Resources

by CA Employees.

The new policy

ensures that all IT

resources owned or

controlled by CA are

used for business

purposes only.

Policy Yes

July 30, 2019

Implemented

FY19

The policy was implemented following the delivery of

workplace mentoring to CA.

12. Archiving Procedure of

Hard Copy Single

Customs Declarations

(DAUs).

New procedure for

filing and archiving

import/ export

DAUs and support

documents.

SOP Yes

June 5, 2019

Implemented

FY19

A new policy was implemented following the delivery

of workplace mentoring to CA.

13. Technical Review of

Design Plans for Tibar

Seaport.

Technical review of

design plans for the

new Tibar Seaport.

Includes study of

customs-controlled

areas, CCTV,

recommendations for

change, and updated

design plans.

Policy Yes

November

2018

Implemented

FY19

USAID-CRP recommendations agreed and approved

by GOTL on November 15, 2018. Design plans

updated and provided to building contractor.

14. Daily Staff Attendance

Recording.

SOP on attendance,

including internal and

external measures

when unjustified non-

SOP Yes

May 8, 2019

Implemented

FY19

The new procedure was implemented in October

2017, following the delivery of workplace mentoring

to CA. AC later approved SOP in May 2019. The

attendance is

detected.

system was replaced following the introduction of a

biometric system within CA in January 2020.

15. Training and

Development Activities

Approval Process.

Internal procedure

that CA employees

must follow when

applying for and

approving all training

and development

nominations.

SOP Yes

Aug 19, 2019

Implemented

FY19

The new procedure was implemented in August 2019

and supported through the delivery of workplace

mentoring to CA.

16. Post Clearance Desk

Audits of Customs

Import Declarations.

New procedure

guiding how to

undertake PCA desk

audits. Includes

associated template

forms and checklists.

SOP Yes

August 19,

2019

Implemented

FY18

The new procedure was implemented in January 2018,

following the delivery of workplace mentoring to CA.

AC later approved SOP in August 19; however,

essential parts of the document, such as the audit

methodology and template form, were utilized from

January 2018 onwards.

17. CA Strategic Plan 2020

– 2025.

Development of

framework, format,

and draft activities

for CA Strategic Plan

for the next five

years.

Policy Yes

July 13, 2020

Ongoing Approved by CA but awaiting approval by MOF

following further requested adjustments (by MOF).

18. Technical Review of

Design Plans for New

International Airport

Terminal at Dili.

Technical review of

design plans for the

anticipated new

International

Terminal Building for

Policy Yes

May 2019

Implemented

FY19

USAID-CRP recommendations agreed and approved

by GOTL. Design plans updated by JICA (donor

partner).

Dili Airport. Includes

study of customs-

controlled areas,

CCTV,

recommendations for

change, and updated

design plans.

19. Position Job

Descriptions for the

Customs Authority.

Development of 80

new task-specific job

descriptions for all

positions and

functions within the

new CA Organic

Structure (DL:

09/2017).

Policy No

N/A

Ongoing

21 of the 98

JDs have so

far been

formally

approved by

AC (using the

new

template)

Oct 2018 – June 2019: USAID-CRP developed a total

of 80 position-specific job descriptions as per the

Organic Structure of the Customs Authority (DL:

09/2017). This activity was thereby essentially

completed.

Oct 2020 – Mar 2021: Following promulgation of a

new Organic Structure of the Customs Authority (DL:

02/2020) and the associated Nuclear Structure of

Customs Authority Ministerial Diploma, a total of 98

new positions were created. USAID-CRP adjusted the

existing 80 job descriptions already developed and

drafted the remaining 16 job descriptions to ensure all

98 complied with the new law and diploma. This

activity was thereby essentially completed a second

time.

April 2021 - Date: Following changes within the MOF,

CA advised USAID-CRP in late-March 2021 that all job

descriptions need to be redrafted using a new

template. This template includes the need to add

several specific competencies for each position.

USAID-CRP will now transfer all 98 job descriptions

onto the new template. USAID-CRP will undertake

this work for a third and final time.

20. Application, Approval,

and Operation of

Bonded Warehouses.

New procedure for

the application,

approval, and

operation of a

customs bonded

warehouse.

SOP Yes

January 20,

2020

Implemented

July 2020

The new policy was implemented following the

delivery of workplace mentoring to CA and

subsequent approval of operators by CA in July 2020.

21. Application, Approval,

and Operation of

Places of Temporary

Storage.

New procedure for

the application,

approval, and

operation of a place

of temporary

storage.

SOP Yes

December 12,

2019

Implemented

July 2020

The new policy was implemented following the

delivery of workplace mentoring to CA and

subsequent approval of operators by CA in July 2020.

22. Procedure for

Processing and

Reporting Prohibited

Goods.

New procedure

detailing the actions

that customs should

take in the event

they find prohibited

goods.

SOP Yes

April 24, 20

Implemented

December

2020

The new procedure was implemented following the

delivery of training to front-line staff. Use of this new

SOP in a real-life environment will not be possible

until suspected prohibited or restricted goods are

identified and referred to the relevant agency.

23. Issuance, Use, and

Storage of Pocket

Notebooks.

SOP for issuing, use,

and storage of

Pocket Notebooks

by CA.

SOP Yes

August 19,

2019

Implemented

December

2020

Training delivered to front-line staff. A total of 500

new notebooks were issued to CA and subsequently

disseminated to managers at crossing-points, including

Dili Seaport, Suai, and Batugade.

24. Procedure for Search

of Person.

SOP providing

guidelines for when

and how to

undertake a search of

someone’s person.

SOP Yes

July 14, 2020

Ongoing The training was organized for delivery in March 2021

but was cancelled due to enhanced SoE related

measures, including home confinement and

restrictions on gatherings. Implementation will

commence following delivery of training in Q3 FY21.

25. Organizational

Structure of Customs

Authority.

Organizational charts

for all areas of the

organization as per

Decree Law 02/2020.

Policy No

N/A

Activity

completed

but awaiting

formal

approval

Oct 2018 – June 2019: USAID-CRP developed a total

of 18 organizational structures as per the Organic

Structure of the Customs Authority (DL: 09/2017).

This activity was thereby essentially completed.

Oct 2020 – Mar 2021: Following promulgation of the

new Organic Structure of the Customs Authority (DL:

02/2020) and the associated Nuclear Structure of

Customs Authority Ministerial Diploma, USAID-CRP

and CA developed a total of 23 new organizational

structures. These have been presented to the AC and

approved verbally, and formal written approval will

take place while the job descriptions are approved as

both activities are aligned.

26. Interministerial

Despacho.

Inter-Ministerial

Despacho, which

standardizes

operational working

hours between CA

and the Ministry of

Transport and

Communications,

Ministry of

Agriculture and

Policy No

N/A

Activity

Abandoned

Nov 2019: Despacho drafted and sent for Ministerial

Approval.

Feb 2021: MTC and MOI signed an Inter-Ministerial

despacho (6/MTC/MI/2020), restricting the movement

of heavy goods vehicles in Dili at certain times. AC

informed USAID-CRP that because this despacho had

already been approved and implemented, the ID that

USAID-CRP had assisted CA and MOF Legal Unit in

Fisheries, and the

Ministry of Interior.

preparing was superseded and would now no longer

be pursued.

27. Customs Clearance of

the Diplomatic Bag

from Accredited

Diplomatic Missions.

SOP governing

inward clearance of

the Diplomatic Bag

from diplomatic

missions, per the

Vienna Convention

SOP Yes

January 20,

2020

Implemented

January 2020

The new procedure was implemented in January 2020,

following the delivery of workplace mentoring to CA.

28. Employee Rotation. SOP governing staff

rotation within CA.

SOP Yes

May 22, 2020

Ongoing Implementation was anticipated in Q2 FY21 but

delayed due to enhanced SoE measures and relevant

CA staff working from home. Work will continue in

Q3 FY21 to implement.

29. Internal Audit. SOP for providing

principles, guidelines,

and templates for the

conduct of internal

audits.

SOP Yes

July 14, 2020

Ongoing The new procedure was implemented following the

delivery of training and workplace mentoring to

internal audit staff—the first internal audit completed

during Q1 FY21 using the new system, with a further

audit underway.

30. CA Stakeholder

Engagement and

Communication Plan.

Policy describing CA

engagement and

outreach strategy

with internal and

external

stakeholders.

Policy No

N/A

Ongoing Initial policy drafted and working through content with

CA to refine and agree on content.

31. Expedited Import and

Release Procedure for

COVID-19 related

Vaccines

SOP for the

expedited clearance

and release of

COVID-19 related

vaccines (CV4).

SOP Yes

March 22, 2021

Ongoing This new SOP will be socialized with the Ministry of

Health and CA staff and implemented before the first

batch of 24,000 COVID-19 vaccines arrives at Dili

International Airport on April 5, 2021.

32. Streamlined Export

Clearance Process for

Dili Seaport.

New streamlined

export procedure,

which removes

manual steps and

supports integration

of OGAs within CA

procedure.

SOP No Ongoing SOP being finalized and will be submitted to the AC in

Q3 FY21 for approval.

Color Key:

= Procedure or policy has been implemented, and USAID-CRP will continue to support through ongoing

workplace mentoring or training and undertake monitor as necessary.

= Finalization is ongoing; however, no issues are envisaged, and implementation of the procedure or policy should occur within the project term.

= Finalization is pending approval(s) outside the direct control of USAID-CRP, and implementation of the procedure or policy may not occur within the project term.

= Activity abandoned as GOTL priorities have changed, or the activity cannot be realistically completed within the project term.

Annex 4 - Implementation of Enhanced Automation and Associated Impact

The information contained within this table is linked to Activity 1.2 (Streamline Procedures and Enhance Automation). This table is correct as of March 31, 2021.

# Description Implemented Description of USAID-CRP Assistance Impact(s) Result(s)

1. Mandatory

Completion of

Inspection Act

November 2019 Before USAID-CRP intervention, CA was not

utilizing the inspection act within AW to

record examination results. Consequently, all

importations were shown as being compliant

irrespective of whether any issues were

identified or not. This caused a significant

knock-on issue when applying risk

management, as it was not possible to identify

previous compliance of importers or customs

brokers. As a result of the configuration

changes, CA staff now must complete this

field; otherwise, they cannot progress with

the processing of the declaration (DAU).

Inspection Act is now

applied in all cases, meaning

CA can better assess

previous prior compliance

and apply risk management

accordingly.

As a result of assessing previous

compliance more accurately, CA

has significantly increased green lane

from 0% in FY17 to over 65% on

average in FY20. Despite the

significant reduction in the number

of examinations undertaken by the

CA and other overall quicker

clearance times, AW data shows a

31% increase in the overall number

of penalties issued between 2018

and 2021 (214 penalties issued in

2018, 232 penalties issued in 2019,

and 281 penalties issued in 2020).

This data confirms that the CA is

now targeting higher-risk

consignments far more effectively,

thereby allowing legitimate trade to

flow more efficiently. Put in more

simple words, CA may be examining

far less, but the consignments they

do look at are producing far more

results.

2. IT4 Traveler’s

Declaration

March 2018 Before USAID-CRP intervention, passengers

wanting to carry more than their $300 duty-

free worth of goods would have to make a full

commercial declaration to CA via a Customs

Broker. As well as taking time, this would also

cost the traveler around $100 in broker fees.

In addition, USAID-CRP identified that CA

was using a standalone ASYCUDA terminal

(old version) and keeping any received monies

in a local safe. This meant that revenue was

not being reported promptly to HQ, and

opportunities were present for malfeasance.

In partnership with USAID-CRP and

UNCTAD, CA implemented AW at the

airport and developed a new simplified IT4

Traveler’s declaration.

Passengers no longer

needed a Customs Broker

to file a declaration, and

revenue can now be

recorded centrally and

monitored in real-time,

thereby reducing

opportunities for integrity

breaches.

Following activation of the new

electronic IT4 procedure within

AW in March 2018, 3,232 travelers

arriving at Dili Airport, 788 arriving

at Batugade, and 19 arriving at Suai,

have utilized this facility. Customs

Brokers fees can vary; however,

they range between $100-$150 for

Dili and $50 for Batugade and Suai.

As a result, well as helping to

reduce costs by making the process

far more efficient, travelers saved an

estimated $360,000 in potential

Customs Broker fees.

3. Automated

Calculation and

Application of

5% fee

August 2018 In FY18, and partnership with the CA and the

Fiscal Reform Commission (FRC), USAID-

CRP undertook a review of goods being

cleared through Dili Seaport. This identified

many goods that had failed to be declared

within the prescribed time limit, and CA had

failed to apply appropriate administrative fees

as per the Customs Law. CA worked with CA

and UNCTAD to develop a new procedure to

ensure that these types of fees were collected

“Out of time”

consignments are now

automatically identified, the

importer notified (via

electronic message), fees

calculated, and then applied

to any subsequent

declaration.

Since implementation in August

2018, additional fees totaling

$348,378 have been applied to a

total of 568 different consignments.

in the future. Despite the written procedure

not being formally approved, the AC did

authorize the appropriate changes to be made

to the AW system.

4. Electronic Error

Codes

January 2020 Before USAID-CRP intervention, on the rare

occasions that the inspection act was used,

CA staff would never include sufficient

content to identify the error or irregularity

correctly. This determination is essential, as a

genuine mistake or fundamental administrative

error that resulted in minimal revenue loss

should be dealt with differently to an importer

or broker that intentionally attempts to evade

revenue or controls. When challenged, CA

staff advised they did not like having to type

out different errors each time, and a lack of

computer proficiency meant this could take a

long time to complete. As a result, USAID-

CRP developed a comprehensive list of

different errors within drop-down lists and

tick boxes in English and Tetum. These were

later implemented within the AW Inspection

Act.

Increased speed and

accuracy with which errors

are reported as they can

select from drop-down

menu lists and translated

into Tetum, meaning

enhanced comprehension

by CA staff.

As a result of assessing previous

compliance more accurately, CA

has significantly increased green lane

from 0% in FY17 to over an average

of 60% in FY21. Despite this

significant reduction in

examinations, data shows that there

hasn’t been a substantial reduction

in overall penalties issued.

5. Electronic “Gate

Pass” Facility

February 2020 Before USAID-CRP intervention, requests to

move containers from one controlled area to

another – such as from the seaport to an

inland warehouse – were processed manually.

The procedure would often take four days or

The process is now fully

automated, and supply-

chain security significantly

enhanced as there is a

central electronic record

Since implementation in February

2020, this facility has been used

forty-seven (47) times. In addition

to enhancing supply-chain security

overall, it has reduced delays for the

longer to complete and resulted in

unnecessary delays. As the process was paper

based, there was no centralized record of

container movements, meaning containers

could potentially be diverted into the home

market without CA necessarily realizing. In

partnership with UNCTAD, USAID-CRP

developed a new electronic process within

AW, which now means that the request and

approval are granted electronically and are

generally completed in less than one day.

within AW of the

movement of containers

moving between controlled

zones. If the container

does not reach its

destination within 2 hours,

AW sends an automated

alert to CA.

private sector by around one

hundred and forty-one (141)

working days.

6. Automated

Allocation of

Examiners

February 2020 Following a consignment being routed red

lane (physical examination) or yellow lane

(documentary examination), CA staff would

decide between themselves who would

undertake which examinations. As well as

enabling opportunities for misconduct, this

approach resulted in unfair or

disproportionate workloads for different staff

members. Following USAID-CRP assistance,

which included securing appropriate support

from the AC and National Director,

UNCTAD activated the “allocation of

examiners” functionality within AW. This

facility also monitors and adjusts the

allocation of work based upon the number

and size of declarations referred, meaning a

fairer spread of the workload between staff.

This facility has now been fully implemented

Declarations are

automatically assigned to

examination staff via the

AW system, and the level

of workload is monitored

and adjusted accordingly.

The level of work is shared across

all staff, and examination staff can no

longer pick and choose declarations

that may be connected to friends or

family.

within CREP and will be rolled out to the

Seaport during Q1 FY21.

7. Automated

Messaging

February 2020 Following reports from the trading

community of goods being delayed by

“customs,” USAID-CRP undertook a review

which identified that in most cases, the

Customs Broker hadn’t submitted the

paperwork to CA. This was rarely

communicated to the importer, and as such,

importers would often wrongly assume that

CA was the cause of these delays. Following

USAID-CRP assistance, which included

securing appropriate support from the AC

and National Directors, UNCTAD activated

“automated messaging” within AW. The use

of this facility means that the AW system can

send automated updates to interested parties

– such as the importer, Customs Broker, etc.

– notifying them when key events occurred,

such as when the declaration was registered,

routing of the goods (i.e., green, red, etc.),

assessment, payment, and exit from the port

area. USAID-CRP will continue to work with

UNCTAD throughout FY21 to identify other

appropriate electronic messaging sent via the

AW system.

Automated notifications

from AW are now sent to

interested parties providing

real-time updates on the

progress of their

consignment.

Importers and other interested

parties can now independently track

what progress is being made and

raise queries in the event of

unexplained delays.

8. Electronic

Tablets

February 2020 Following changes made in collaboration with

USAID-CRP, CA now must update results

within AW following every examination that

they undertake. In the case of Dili Seaport, it

would often take time for the examination

staff to return to the CA office each time, gain

access to an available desktop computer, and

then key in the appropriate information.

UNCTAD procured and configured several

electronic tablets that CA could use to update

AW in the field, meaning records could be

updated much quicker. USAID-CRP directly

supported this effort by delivering training and

workplace mentoring to CA staff in using

these tablets and then working with

UNCTAD to identify appropriate

configuration changes to the mobile app.

following issues or glitches being identified.

CA staff at Dili Seaport are

now able to complete

examination results in the

field.

AW records are being completed

quicker and more accurately, as

results are being recorded at the

point of the examination occurring.

9. Electronic

“T1C” Facility

July 2020 Before USAID-CRP intervention, requests to

temporarily import vehicles under the de

Passages en Douane Carnet convention

(CPD) were processed manually. Under this

convention, visitors are entitled to bring their

vehicle into the country without paying duties

or taxes, but on the strict understanding that

this is temporary, and that the vehicle will exit

the country. In the Timor-Leste context, this

facility is used by tourists that want to bring

their vehicle into the country on vacation and

The process is now fully

automated, and supply-

chain security significantly

enhanced as there is a

central electronic record

within AW of the entry

and exit of all vehicles

traveling under the CPD

convention.

As a result of Covid-19 and

associated SoE restrictions, no

vehicles of this nature have been

permitted to Timor-Leste, so this

process has yet to be used. It is still

active and will make it easier for

visitors to enter the country in their

vehicle, thereby encouraging

tourism.

then leave again in the same vehicle. As a

result of this paper-based system, CA could

not identify when vehicles arrived and left

effectively. As a result, there was a risk that

vehicles may be retained or sold in Timor-

Leste without paying the relevant duties and

taxes. In partnership with UNCTAD, USAID-

CRP developed a new process within AW,

which now means that the request and

approval are now processed electronically,

with a centralized record available that can be

audited.

Annex 5 – OGA Risk Profiles Developed and Implemented

Period: July 19, 2020 to March 31, 2021

Description: OGA profiles developed and implemented

OGA # Risk Profiles

Associated Instruction, Law, Regulation or Convention

MOH 3 MOH Official Instruction concerning Servisu Autonomos Medikamentu e Equipamentu de Saude (2017)

MOH 3 United Nations Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances (1988)

MOH 1 United Nations Single Convention on Narcotic Drugs (1961)

MOTC 3 Conditions and Procedures to be Observed in relation to the Import of Motor Vehicles (Decree-Law: 30/2011)

MTTI 1 Ozone Depleting Substances (Decree-Law: 36/2012)

Key:

MOH: Ministry of Health

MTTI: Ministry of Tourism, Trade and Industry MOTC: Ministry of Transport and Communications

Annex 6 – Impact of OGA Risk Profiles Implemented

Description: Overall selectivity data and impact of OGA profiles on red and yellow lanes (Dili Seaport)

Period: January 1 to March 31, 2021

Key:

CA: Customs Authority MOH: Ministry of Health MTTI: Ministry of Tourism, Trade and Industry MOTC: Ministry of Transport and Communications

Annex 7 – Adjustments to OGA Selectivity Controls

Location: Dili Seaport

Period: January 1, to March 31, 2021

OGA Name Profile Reference

Date Activated (within AW)

Commodity Type (Brief Description)

Previous Requirement

(Lane and %)

Revised Requirement

(Lane and %)

Assessed Impact (Q1 FY21)

Cumulative Impact

Ministry of Transport and Communications

• MT_8702

• MT_8703

• MT_8704

July 19, 2020 • Motor vehicles for the transport of ten or more persons, including the driver.

• Motor vehicles for the transport of goods.

100% red lane 100% yellow lane

326 fewer vehicles routed red lane.

1,002 fewer vehicles routed red lane.

Ministry of Tourism, Trade and Industry

• EV_ODS July 19, 2020 • Ozone-depleting substances.

100% red lane 100% yellow lane

3 fewer consignments routed red lane.

20 fewer consignments routed red lane.

Ministry of Health • HL_NARCMED

• HL_NARCS

• HL_SCHD2

• HL_SCHD3

• HL_SCHD4

• HL_UNRED

• HL_UNYEL

July 19, 2020 • Narcotics. • Narcotic medicines. • Controlled

medicines. • Precursor Chemicals.

100% red lane 10% red lane 90% yellow lane

20 fewer consignments routed red lane.

155 fewer consignments routed red lane.

Reduction in number of physical inspections (red lane): 349 1,177

Annex 8 - Schedule of Training Courses Delivered to CA in Q2 FY21

The data contained within this table is linked to Performance Indicator #4, contained within Annex 1.

From To

USAID-CRP Lead Trainer

CA Lead Trainer

Location Course Name Course Duration (days)

Male Participants

Female Participants

Total Participants

Pre Results

(%)

Post Results

(%)

Diff. Results

(%)

1/27/21 1/29/21 G. M. Dili Warehousing 3 2 1 3 28 75 47

2/3/21 2/4/21 G. M. J. F. S. Dili Warehousing 2 8 0 8 28 75 47

2/18/21 2/19/21 A.A. E. T. Dili Intel

Awareness 2 7 0 7 15 98 83

2/23/21 2/24/21 G. M. J. F. S. Dili Advanced

Classification 2 2 4 6 15 88 73

TOTAL: 4 Courses Delivered

9 Days 79% Male 21% Female 24 Staff Pre

21.5% Post 84%

62.5% Increase

Annex 9 - Financial Report

I. ACCRUED EXPENDITURES

BUDGET SCHEDULE

Redacted financial information

USAID-CRP submits accruals and projections to USAID on the 15th of the month prior to the end of the quarter. The below shows differences between the months projected (Jan 2021 – March 2021) vs. the actuals. The differences in accruals are very minimal. Estimates for Q3 see a decreasing burn rate

due to LTTA staff leaving (Graham – April, Shayla - April/May, Andy – May)

Redacted financial information

International Business Initiatives Corp. 4040 North Fairfax Drive

Suite 650 Arlington VA 22203- USA

Tel: 1-703-525-2277 www.ibi-usa.com