REPUBLIC OF TURKEYREPUBLIC OF TURKEYPRIME MINISTRYPRIME MINISTRY

UNDERSECRETARIAT OF CUSTOMSUNDERSECRETARIAT OF CUSTOMS

H. Cahit SOYSAL

csoysal@gumruk.gov.tr

Modernisation Project of Turkish Customs

FACTORS AFFECTING FACTORS AFFECTING CUSTOMS ADMINISTRATIONSCUSTOMS ADMINISTRATIONS

Growth in Trade Volume Trade Liberalisation Improvements in Technology Falling Transport and Communications Costs Increasing International Competition

WHAT IS EXPECTED FROM CUSTOMS?WHAT IS EXPECTED FROM CUSTOMS?

Speed up the release of goods Rationalise the clearance of goods Simplify procedures Enhance customs control Create and transfer statistical data in a timely and

reliable manner

MODERNMODERNIISATSATIION PROJECT OF TURKON PROJECT OF TURKIISH CUSTOMSSH CUSTOMS

Modernisation Project of Turkish Customs is a subcomponent of Public Financial Management Project (PFMP) that was signed in 1995 with World Bank in order to enable institutional reforms within Turkish Government

IMF also provided technical assistance to the project:

During July 1996-May 1999 2 Long term, 6 short term advisors worked for Turkish Customs

FOCUS OF THE MODERNISATION PROJECTFOCUS OF THE MODERNISATION PROJECT

Reorganisation of customs

administration

Reorganisation of customs

administration

Development and implementation of Computer systems

Development and implementation of Computer systems

Modification of customs legislation and procedures to International Standards

Modification of customs legislation and procedures to International Standards

27.10.1999

05.02.2000

New Customs Law, comprised of 254 articles, was discussed and passed

from the Parliament

Customs Regulation, comprised of 891

articles and 81 appendices came into

force

11.02.1999

New customs procedures were

determined for the computerized

customs offices

MODIFICATION OF CUSTOMS LEGISLATIONMODIFICATION OF CUSTOMS LEGISLATION

DEVELOPMENT AND IMPLEMENTATION OFDEVELOPMENT AND IMPLEMENTATION OF COMPUTER SYSTEMSCOMPUTER SYSTEMS

A software called A software called BİLGEBİLGE

(BİLgisayarlı Gümrük Etkinlikleri)

(Computerized Customs Activities) has been

developed and by the end of October 2001, 18

Regional Directorates and 47 Customs

Directorates will be automated

January 2000

The international bid, for the deployment of the BİLGE system signed

August 1999

The pilot implementation of the

CUSTOMS/EDI program started

August 1998

The pilot The pilot implementation of implementation of the the BİLGEBİLGE system system

startedstarted

DEVELOPMENT AND IMPLEMENTATION OFDEVELOPMENT AND IMPLEMENTATION OF COMPUTER SYSTEMSCOMPUTER SYSTEMS

The current rate of automated customs transactions and the estimated rate of customs transactions at the end of this year

010

20

30

4050

60

70

80

90100

•May 2001 •END of 2001

IMPORT

EXPORT

%91

%94%96

%92

DEVELOPMENT AND IMPLDEVELOPMENT AND IMPLEEMENTATION OFMENTATION OF COMPUTER SYSTEMS COMPUTER SYSTEMS

In order to flatten the organisation and become more efficient:

• 120 customs directorates were either merged or closed down

• The functions of Regional Directorate of Customs and

Directorate of Customs Enforcement have been united to

increase service efficiency in 5 regions

REORGANISATION OF TURKISH CUSTOMSREORGANISATION OF TURKISH CUSTOMS

Never think of an organisation as a large machine

that can be taken apart and reassembled differently

whenever needed! Changes must be approached carefully with

implications for both individuals and groups within

the organisation

LESSONS LEARNT (I)LESSONS LEARNT (I)

LESSONS LEARNTLESSONS LEARNT (II) (II)

Commitment of Top Management & Assignment of A Project Leader

• It is important to establish a Steering Committee to prove the support of top management

• A chief executive should be assigned as the project manager and must have the power and authority needed to make the changes happen

Commitment of Top Management & Assignment of A Project Leader

LESSONS LEARNTLESSONS LEARNT (III) (III)

Information era in Customs

LESSONS LEARNTLESSONS LEARNT (IV) (IV)

Management of Change and Time Plan

• It may be necessary to establish a permanent Project Unit with sufficient resources and must not be interrupted by daily operations

• Change must be planned by developing an action plan

LESSONS LEARNTLESSONS LEARNT (V) (V)

Communication and Training

• Change presents unknowns that cause anxiety

• Communication with stakeholders is a very crucial feature for avoiding ambiguity-Do it as early as possible!

• A Strategic Statement was very helpful in communicatingthe reasons and objectives of change to our stakeholders

• Customs Consultative Committee also provided participation from trade bodies to our Project

LESSONS LEARNTLESSONS LEARNT (VI) (VI)

Communication and Training

• Adapting new technology meanscarrying out procedures in a totallynew way which may cause fear

• The fear of new technology can be eliminated by intensive training programmes

LESSONS LEARNTLESSONS LEARNT (VII) (VII)

Confidence

No Change!

• Those who have power in the current situation may resist change since it threatens their power

• Be confident about yourself and do not step back in case of any threat!

Confidence

LESSONS LEARNTLESSONS LEARNT (VIII) (VIII)

Rebellion at the airport!

MONITORING & REINFORCEMENTMONITORING & REINFORCEMENT

It is very important to check after a suitable time to see ifthe changes are working well or not:

• If something is going wrong, modifications must be made

• On the other hand if changes are working well and the benefits can be demonstrated use this information to tell everyone to reinforce the transition

CHALLENGESCHALLENGES

• Implementation of e-commerce technologies will require more resources and expertise

• E-commerce and the implementation of Just in Time techniques will increase the number of transactions

• Adapting e-commerce technology always hold the possibility of cyber crime, sabotage and loss of system accidentally

Thank you very much for your attentionThank you very much for your attention

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