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1 Plano Correios Expert Meeting on ICT Solutions to Facilitate Trade at Border Crossings and Ports 16–18 October 2006 Geneva

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Page 1: 1 Plano Correios Expert Meeting on ICT Solutions to Facilitate Trade at Border Crossings and Ports 16–18 October 2006 Geneva

1 Plano Correios

Expert Meeting on ICT Solutions to Facilitate Trade at Border Crossings and Ports 16–18 October 2006

Geneva

Page 2: 1 Plano Correios Expert Meeting on ICT Solutions to Facilitate Trade at Border Crossings and Ports 16–18 October 2006 Geneva

2Customs Reform CLADEC4

2 BOS

PROCOMEXAliança Pró Modernização

Logística do Comércio Exterior

BOS

NOVEMBER 2003

2Plano Correios

Expert Meeting on ICT Solutions to Facilitate Trade at Border Crossings and Ports16– 18 October 2006

Geneva

The Real Cost of Red Tape: a business perspective

UNCTAD Regional Conference on

ICT Strategies for Competitiveness and Development:

Promoting E-business, Trade Facilitation and Logistics

in Latin America and the Caribbean

John Edwin Mein

Consentes Institutional Building

November 2003

OCTOBER 2006

Page 3: 1 Plano Correios Expert Meeting on ICT Solutions to Facilitate Trade at Border Crossings and Ports 16–18 October 2006 Geneva

3Customs Reform CLADEC4

3 BOS

PROCOMEXAliança Pró Modernização

Logística do Comércio Exterior

BOS

VISION

Increase Brazil’s competiveness in the international market through:-A Customs clearance system that:

protects national interests while improving the efficiency of the global supply

chain of companies that compete in the international market

Page 4: 1 Plano Correios Expert Meeting on ICT Solutions to Facilitate Trade at Border Crossings and Ports 16–18 October 2006 Geneva

4Customs Reform CLADEC4

4 BOS

PROCOMEXAliança Pró Modernização

Logística do Comércio Exterior

BOS

MISSION

Improve Brazil’s global competitiveness through the implementation of a Customs clearance system that:-Protects revenue generation-Preserves the environment-Preserves the cultural heritage-Protects national security interests, and -Guarantees the adequate collection of information on trade

-Guarantees a more predictable and faster movement of goods

-Guarantees that the treatment of traders is based upon objective criteria

Page 5: 1 Plano Correios Expert Meeting on ICT Solutions to Facilitate Trade at Border Crossings and Ports 16–18 October 2006 Geneva

5Customs Reform CLADEC4

5 BOS

PROCOMEXAliança Pró Modernização

Logística do Comércio Exterior

BOS

OBJECTIVE

Develop, propose, obtain approval, and implement a Customs clearance system that protects national interests and facilitates foreign trade

Page 6: 1 Plano Correios Expert Meeting on ICT Solutions to Facilitate Trade at Border Crossings and Ports 16–18 October 2006 Geneva

Customs Reform CLADEC4

6 BOS

PROCOMEXAliança Pró Modernização

Logística do Comércio Exterior

BOS

CUSTOMS MODERNIZATION OBJECTIVESTransaction Cost(Service Delivery)

Revenue(Collections)

Risk(Security &Integrity)

TransactionSpeed

Transparency(Processes &Functions)

Harmonization(Data &

Information)

CurrentState

(4Q04)

High

Low

Page 7: 1 Plano Correios Expert Meeting on ICT Solutions to Facilitate Trade at Border Crossings and Ports 16–18 October 2006 Geneva

Customs Reform CLADEC4

7 BOS

PROCOMEXAliança Pró Modernização

Logística do Comércio Exterior

BOS

CUSTOMS MODERNIZATION OBJECTIVESTransaction Cost(Service Delivery)

Revenue(Collections)

Risk(Security &Integrity)

TransactionSpeed

Transparency(Processes &Functions)

Harmonization(Data &

Information)

TargetState

(4Q06)

CurrentState

(4Q04)

Page 8: 1 Plano Correios Expert Meeting on ICT Solutions to Facilitate Trade at Border Crossings and Ports 16–18 October 2006 Geneva

Customs Reform CLADEC4

8 BOS

PROCOMEXAliança Pró Modernização

Logística do Comércio Exterior

BOS

CUSTOMS MODERNIZATION OBJECTIVESTransaction Cost(Service Delivery)

Revenue(Collections)

Risk(Security &Integrity)

TransactionSpeed

Transparency(Processes &Functions)

Harmonization(Data &

Information)

TargetState

(4Q06)

CurrentState

(4Q04)

ProcessIntegration

ProcessSimplification

DataSimplification

ServiceEfficiency

AccountingControls

Enforcement

Page 9: 1 Plano Correios Expert Meeting on ICT Solutions to Facilitate Trade at Border Crossings and Ports 16–18 October 2006 Geneva

Customs Reform CLADEC4

9 BOS

PROCOMEXAliança Pró Modernização

Logística do Comércio Exterior

BOS

THE GOAL

Importing&

Exporting

Physicial Flow

Fiscal Flow

Document Flow

“Intelligent” System of Oversight and Control

Tracking and Informations System

Primary goals of the modernization proposal: separation of movement of goods and documents, implementation of intelligent tracking systems and risk analysis, implementation of informed control processes and information, and establishment of partnership with the Trade.

Period 1

Period 3

Period 2

Page 10: 1 Plano Correios Expert Meeting on ICT Solutions to Facilitate Trade at Border Crossings and Ports 16–18 October 2006 Geneva

10Customs Reform CLADEC4

10 BOS

PROCOMEXAliança Pró Modernização

Logística do Comércio Exterior

BOS

DISPERSED GROUPS HAVE LITTLE LEVERAGE

Page 11: 1 Plano Correios Expert Meeting on ICT Solutions to Facilitate Trade at Border Crossings and Ports 16–18 October 2006 Geneva

11Customs Reform CLADEC4

11 BOS

PROCOMEXAliança Pró Modernização

Logística do Comércio Exterior

BOS

BUT ONE VOICE BUILDS STRENGTH

Page 12: 1 Plano Correios Expert Meeting on ICT Solutions to Facilitate Trade at Border Crossings and Ports 16–18 October 2006 Geneva

12Customs Reform CLADEC4

12 BOS

PROCOMEXAliança Pró Modernização

Logística do Comércio Exterior

BOS

AN ALLIANCE IS THE MECHANISM TO BRING ABOUT CHANGE

• Customs has a strong corporate culture dominated by a control bureaucracy

• There is no previous experience of working together with the private sector

• Foreign traders interested in change are highly dispersed and not organized to pressure for change.

• A momentum for change can be created by forming a coalition of business associations focused on customs reform.

Page 13: 1 Plano Correios Expert Meeting on ICT Solutions to Facilitate Trade at Border Crossings and Ports 16–18 October 2006 Geneva

Plano Correios

• CNC - Confederação Nacional do Comércio • CNI - Confederação Nacional da Indústria • CNT - Confederação Nacional dos Transportes • CACB - Confederação das Associações Comerciais do Brasil • FIESP - Federação das Indústrias do Estado de São Paulo • FIRJAN - Federação das Indústrias do Estado do Rio de Janeiro • FIEMG - Federação das Indústrias do Estado de Minas Gerais • FIEB – Federação das Indústrias do Estado da Bahia • FIEP - Federação das Indústrias do Estado do Paraná • FACESP - Federação das Associações Comercias do Estado de São

Paulo • FECOMERCIO – Federação do Comércio do Estado de São Paulo • ACRJ - Associação Comercial do Rio de Janeiro • ABAG - Associação Brasileira de Agribusiness • ABECE - Associação Brasileira das Empresas Comerciais

Exportadoras • ABECEX – Associação Brasileira dos Executivos de Comércio

Exterior • ABEPRA - Associação Brasileira das Empresas Operadoras de

Regimes Aduaneiros • ABIA - Associação Brasileira da Indústria de Alimentos • ABIEC - Associação Brasileira da Indústria Exportadora de Carne • ABIMAQ - Associação Brasileira da Indústria de Máquinas e

Equipamentos • ABINEE - Associação Brasileira da Indústria Elétrica e Eletrônica • ABIPLAST - Associação Brasileira da Indústria do Plástico • ABIQUIM - Associação Brasileira da Indústria Química • ABIT - Associação Brasileira da Indústria Têxtil e de Confecção• ABTC - Associação Brasileira de Transportadores de Carga• ABRAEC - Associação Brasileira das Empresas de Transporte

Internacional de Cargas

• ABRATEC - Associação Brasileira dos Terminais de Contêineres de Uso Público

• ABRIFAR - Assoc. Brasileira dos Revendedores e Importadores de Insumos Farmacêuticos  

• ABRETI - Associação Brasileira de Empresas Transportadoras Internacionais

• ADEBIM - Associação de Empresas Brasileiras para a Integração de Mercados

• AEB - Associação de Comércio Exterior do Brasil • AHK - Câmara de Comércio e Indústria Brasil-Alemanha de São

Paulo • AMCHAM – RJ - Câmara de Comércio Americana – Rio de Janeiro • AMCHAM – SP – Câmara Americana de Comércio – São Paulo • ANUT - Associação Nacional dos Usuários do Transporte de Carga • ASLOG - Associação Brasileira de Logística • CENTRONAVE – Centro Nacional de Navegação Transatlântica • CETEAL – Centro de Estudos Técnicos e Avançados em Logística • CEXPAR – Instituto Centro de Comércio Exterior do Paraná • CLI – Câmara de Logística Integrada de Comércio Exterior • CBC - Câmara Brasileira de Contêineres e Transporte Multimodal • ELETROS - Associação Nacional de Fabricantes de Produtos

Eletroeletrônicos • GIE – Grupo de Investidores Estrangeiros • GMBS – Grupo Metropolitano da Baixada Santista • ICEX - Instituto de Estudos das Operações de Comércio Exterior • NTC - Associação Nacional de Transportes de Cargas e Logística • SINDIPEÇAS – Sindicato Nacional da Indústria de Componentes para

Veículos Automotores • SINDIEX – Sindicato do Comércio de Importadores e Exportadores do

Estado do Espírito Santo • SOBEET – Soc. Brasileira de Estudos de Empresas Transnacionais e

da Globalização Econômica

ASSOCIATIONS IN THE PROCOMEX ALIANCE

Page 14: 1 Plano Correios Expert Meeting on ICT Solutions to Facilitate Trade at Border Crossings and Ports 16–18 October 2006 Geneva

14Customs Reform CLADEC4

14 BOS

PROCOMEXAliança Pró Modernização

Logística do Comércio Exterior

BOS

CHALLENGES

Customs does not have a tradition of working with or listening to the private sector.

“Brazil is different” Not invented here syndrome Lack of community spirit Multiplicity of needs Dependency on Government systems

monopoly -SERPRO

Page 15: 1 Plano Correios Expert Meeting on ICT Solutions to Facilitate Trade at Border Crossings and Ports 16–18 October 2006 Geneva

15Customs Reform CLADEC4

15 BOS

PROCOMEXAliança Pró Modernização

Logística do Comércio Exterior

BOS

OUR STRATEGY

Create legitimacy

Generate a focused movement

Develop the conditions for change

Bring about desired change

Page 16: 1 Plano Correios Expert Meeting on ICT Solutions to Facilitate Trade at Border Crossings and Ports 16–18 October 2006 Geneva

16Customs Reform CLADEC4

16 BOS

PROCOMEXAliança Pró Modernização

Logística do Comércio Exterior

BOS

DEVELOP LEGITIMACY

Obtain the needed institutional framework Develop a consensus about the type of

change Obtain recognition by the private sector Become accepted by customs

Page 17: 1 Plano Correios Expert Meeting on ICT Solutions to Facilitate Trade at Border Crossings and Ports 16–18 October 2006 Geneva

17Customs Reform CLADEC4

17 BOS

PROCOMEXAliança Pró Modernização

Logística do Comércio Exterior

BOS

11PartnershipPartnership

Page 18: 1 Plano Correios Expert Meeting on ICT Solutions to Facilitate Trade at Border Crossings and Ports 16–18 October 2006 Geneva

Customs Reform CLADEC4

18 BOS

PROCOMEXAliança Pró Modernização

Logística do Comércio Exterior

BOS

Implementation

PROCOMEXSeminar

UNCTAD Regional Meeting2003

JanDec Mar Apr May Jun Jul Aug NovOctSetNov

Exploratory PhaseFormation of

Private Sector Alliance

Second Phase – Working Group

Public Sector

AllianceNaming of

working group

ACTION PLANORIGINAL

Feb

UNCTAD World Summitin São Paulo ENAEX

TIC &Commerce

Preparatory Meeting

Final

Proposal

1 2 3 4 5 6 7 8 9

Page 19: 1 Plano Correios Expert Meeting on ICT Solutions to Facilitate Trade at Border Crossings and Ports 16–18 October 2006 Geneva

19Customs Reform CLADEC4

19 BOS

PROCOMEXAliança Pró Modernização

Logística do Comércio Exterior

BOS

ADJUSTMENTS

Second Phase – Working Group

Second Phase – Working Together

Leadership

Building Confidence Credibility

Page 20: 1 Plano Correios Expert Meeting on ICT Solutions to Facilitate Trade at Border Crossings and Ports 16–18 October 2006 Geneva

Plano Correios

PARTNERSHIP

PARTNERSHIP

Win-Win

Win-Win

Page 21: 1 Plano Correios Expert Meeting on ICT Solutions to Facilitate Trade at Border Crossings and Ports 16–18 October 2006 Geneva

21Customs Reform CLADEC4

21 BOS

PROCOMEXAliança Pró Modernização

Logística do Comércio Exterior

BOS

TRUST!!TRUST!!

Page 22: 1 Plano Correios Expert Meeting on ICT Solutions to Facilitate Trade at Border Crossings and Ports 16–18 October 2006 Geneva

22Customs Reform CLADEC4

22 BOS

PROCOMEXAliança Pró Modernização

Logística do Comércio Exterior

BOS

MEMBERS OF THE INSTITUTEDHL

3M

ABRETI

BASF S.A.

BERNARDI, LEVA & GUIMARÃES

GALLO ADV

BOSH

DELOITTE

CISA TRADING

COLUMBIA

COMEXPORT

COTIA TRADING

DEICMAR

DELOITTE TOUCHE TOHMATSU

DRY PORT

EATON

EMBRAER

FEDEX

FERTIMPORT/BUNGE

FIAT

GRUPO CCE

HAMBURG SÜD

INDAIÁ LOGÍSTICA

KUEHNE & NAGEL

LIBRA TERMINAIS

LOCALFRIO ARMAZENS

MAHLE METAL LEVE

MATTEL

METROPOLITAN

NYK LINE

ROLLS-ROYCE BRASIL

SANTOS BRASIL

SCHENKER DO BRASIL

SIEMENS

TITO GLOBAL TRADE

TNT EXPRESS

TRADEWORKS LOGÍSTICA

UNILEVER

UPS

VOLKSWAGEN TRANSPORT

Page 23: 1 Plano Correios Expert Meeting on ICT Solutions to Facilitate Trade at Border Crossings and Ports 16–18 October 2006 Geneva

23Customs Reform CLADEC4

23 BOS

PROCOMEXAliança Pró Modernização

Logística do Comércio Exterior

BOS

BRAZIL IS RIPE FOR CHANGE

Tremendous export growth

More integration in world economy

World Bank loan

Trend around the world-Brazilian role in WCO

Trade facilitation becomes an objective of COANA

Page 24: 1 Plano Correios Expert Meeting on ICT Solutions to Facilitate Trade at Border Crossings and Ports 16–18 October 2006 Geneva

24Customs Reform CLADEC4

24 BOS

PROCOMEXAliança Pró Modernização

Logística do Comércio Exterior

BOS

Page 25: 1 Plano Correios Expert Meeting on ICT Solutions to Facilitate Trade at Border Crossings and Ports 16–18 October 2006 Geneva

25Customs Reform CLADEC4

25 BOS

PROCOMEXAliança Pró Modernização

Logística do Comércio Exterior

BOS

Page 26: 1 Plano Correios Expert Meeting on ICT Solutions to Facilitate Trade at Border Crossings and Ports 16–18 October 2006 Geneva

26Customs Reform CLADEC4

26 BOS

PROCOMEXAliança Pró Modernização

Logística do Comércio Exterior

BOS

CHALLENGES

INSTITUTIONAL STRUCTURE-Government

Number of Authorities-Private Sector

Conflicting Objectives Short-term focus

CONTINUE TO FOCUS ON NORMS RATHER THAN PROCESSES

LIMITED SYSTEMS RESOURCES

LIMITED INTERNATIONAL INTEGRATION

Page 27: 1 Plano Correios Expert Meeting on ICT Solutions to Facilitate Trade at Border Crossings and Ports 16–18 October 2006 Geneva

27Customs Reform CLADEC4

27 BOS

PROCOMEXAliança Pró Modernização

Logística do Comércio Exterior

BOS

KEY STRATEGIES

Framework Agreement is the new paradigm-Customs working with Customs

NEED FOR A NEW INTERNATIONAL ICT SYSTEMASYCUDA?Integration of efforts?

IATA ? NEED FOR A INTERNATIONALLY RECOGNIZED RISK

CERTIFICATION SYSTEMAEOBASCC-T PATEUROPEAN

• Engagement of non customs authorities-WTO

Page 28: 1 Plano Correios Expert Meeting on ICT Solutions to Facilitate Trade at Border Crossings and Ports 16–18 October 2006 Geneva

28 Plano Correios

Aliança Pró - Modernização Logística do Comércio Exterior

PROCOMEX

John Edwin [email protected]

55-11-3812-4566