Details of WCO's Final Draft Version of its "Framework of Standards" to Secure and Facilitate Global Trade (Part I)

(See ITT's Online Archives or 05/17/05 news, 05051705, for BP summary of the WCO's release of Version 2.0, including an overview of how the framework's appendices, etc. have been reorganized, etc.)

(The final draft framework was endorsed by the High Level Strategic Group (HLSG) in April 2005, and will be presented for final adoption to the 165 Directors General of Customs at the WCO's Council Sessions on June 23-25, 2005.)

This is Part I of a multi-part series of summaries on the changes in Version 2.0 (dated April 2005) as compared to Version 1.0 (dated November 2004).

Part I provides a sampling of the changes made to Sections 1 through 3.4 and to Annex 1 (Customs-to-Customs Network Arrangements Pillar) and its Appendix. See future part for a sampling of the changes to Annex 2 (Customs-to-Business Partnerships Pillar), etc.

Changes to Sections 1 - 3.4

The following is a sampling of changes to Sections 1 through 3.4:

Authorized Economic Operator. In Section 2.3, which concerns business benefits, a new footnote defining an Authorized Economic Operator (AEO) has been added as follows:

"Authorized Economic Operator is a party involved in the international movement of goods in whatever function that has been approved by or on behalf of a national Customs administration as complying with WCO or equivalent supply chain security standards. Authorized Economic Operators include, among others, manufacturers, importers, exporters, brokers, carriers, consolidators, intermediaries, ports, airports, terminal operators, integrated operators, warehouses, distributors."

Reference to "smarter" containers removed. In Section 3.1, which concerns the Customs-to-Customs Pillar, reference to "the use of smarter and more secure containers" has been replaced with "maintaining cargo and container integrity by facilitating the use of modern technology."

Changes to Annex 1 and its Appendix

The following is a sampling of changes to Annex 1 (Customs-to-Customs Network Arrangements Pillar) and its Appendix:

(Subscribers should note that the numbering of some of the below standards is different in Version 2.0 as compared to Version 1.0.)

Screening, etc. for maritime containers must occur prior to loading. In Annex 1, Standard 1.2.3 (Controls at departure), which states, among other things, that the Customs office of departure must take all necessary action to enable the identification of the consignment and the detection of any unauthorized interference along the supply chain, the following text has been inserted:

"In respect of maritime containerized consignments, any such screening, risk assessment and action should be taken prior to loading the container onto the ship. The International Ship and Port Facility Security Code (ISPS Code) (b1630-37) outlines in broad terms the measures which should be taken by the port facility."

ISO/PAS 17712 for mechanical seals. In Annex 1, Standard 1.2.4 (Sealing), the phrase "based on the use of a high-security mechanical seal as prescribed in International Standardization Organization Publicly Available Specification (ISO/PAS) 17712 at the point of stuffing" has been inserted to describe the seal integrity programs at issue.

UCR standard. The text of Annex 1, Standard 1.2.5 (Unique Consignment Reference (UCR)) has been shortened to one sentence, as follows "Customs administrations should apply the WCO Recommendation on the UCR and its accompanying Guidelines."

(In Version 1.0, this standard stated that "At the time goods are being allocated to an international transaction, for example by concluding a contract for export or by placing a purchase order, the party initiating the international trade transaction (e.g., the buyer or importer, or the agent acting on behalf of the party) should assign a UCR to the consignment in accordance with the WCO Recommendation on the UCR and its accompanying Guidelines. The UCR should be used in all relevant communications by all parties involved in the entire supply chain.")

Time frames for advance declarations.Time frames for advance declarations¹ have been added to Annex 1, Standard 1.3.6, as follows:

In order to ensure a minimum level of consistency and without prejudice to specific situations, Customs should not require the advance declarations to be submitted more than:

¹ According to Annex 1, Standard 1.3.2, the carrier or his/her agent has to submit an advance electronic cargo declaration to the Customs at export and/or at import.

(The above-listed time frames are similar although not identical to those outlined in U.S. Customs and Border Protection's (CBP's) December 5, 2003 final rule on advance electronic presentation of cargo information. See ITT's Online Archives or 02/19/04 news, 04021905, for BP summary of CBP's FAQ which contains a matrix of the required transmission times. See ITT's Online Archives or 01/20/04 news, 04012035, for final part of BP's summary of CBP's final rule.)

Customs' IT systems should be based on WCO Data Model. Annex 1, Standard 1.3.7 (WCO Data Model) has been revised to state, among other things, "Customs administrations should ensure that their respective IT systems are interoperable and are based on open standards. To this end, Customs should use the WCO Customs Data Model, which defines a maximum set of data for the accomplishment of export and import formalities. The Data Model also defines the electronic message formats for relevant Cargo and Goods declarations."

WCO final draft framework (Version 2.0, dated April 2005) available at http://www.cbp.gov/linkhandler/cgov/import/communications_to_industry/wco_framework.ctt/wco_framework.pdf

alsoavailable on the WCO's Web site in English, French, Spanish, Arabic, and Russian at http://www.wcoomd.org/ie/En/en.html