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Fostering Green and

Inclusive Trade Facilitation
and the Circular Economy
through Digitalization

Tejo Kusuma A|P Trade Facilitation Forum

Technical Officer 1 - 5 April 2024, Samarkand, Uzbekistan
Compliance and Facilitation
World Customs Organization

www.wcoomd.org Green Customs 1

 Wo rld Cu st o m s Org an izat io n

• Conventions
• Frameworks of Standards
• Recommendations
• Other Tools

Key/new Procedures and Facilitation Tools and Instruments

http://www.wcoomd.org/en/topics/facilitation/instrument-and-tools.aspx

www.wcoomd.org Green Customs 2

Carb o n fo o t p rin t of in t ern at io n al t rad e

Carbon footprint of Trade Digitalization Carbon footprint of the absence of Trade

o Electricity Digitalization
o Data Centers
o Inefficient cross border procedure
o Longer clearance process
More data = more computing power = more
carbon footprint?

Data Quality
o Consistency
o Timeliness
o Accuracy
o Completeness

www.wcoomd.org Green Customs 3

Lead in g t o Green Cu st o m s In it iat ives

o Materials use will increase in the coming

decades
o MEAs number and scope will expand the
role of Customs in enforcing environmental
regulations
o Increasing trade-related environmental
measures (E.g. import and export licenses,
bans and quotas )
o Circular economy
o Need to monitor the flows of goods in CE
o Supply chain transparency, traceability and
visibility
o Classification of environmental goods
o Need to facilitate environmental compliance
for goods entering the reuse, refurbish,
remanufacture or recycle loop

www.wcoomd.org Green Customs 4

Reg u lat o r y co m p lian ce of Lin ear & Reverse su p p ly ch ain s

Linear Economy: Take Make Use Dispose

• Trade restrictions, LPCO, technical

specifications, coding systems, etc.

• Need of information sharing and

harmonization

• Single Window, GNC and WCO DM as a

key enabler

www.wcoomd.org Green Customs 5

WCO Green Cu st o m s

Green Customs refers to the measures that Customs

administrations can take or develop to reduce their
own environmental footprint (“being”), to protect the
environment and facilitate green trade (“doing”), and
to test transformative ideas towards sustainability
excellence (“innovating”), and by doing so drive
progress on the related United Nations Sustainable
Development Goals.

www.wcoomd.org Green Customs 6

WCO Green Cu st o m s Act io n Plan

https://www.wcoomd.org/-/media/wco/public/global/pdf/topics/key-
issues/green-customs/gcap-public.pdf?la=en

www.wcoomd.org Green Customs 7

WCO Ro les in En viro n m en t al Issu es

Position Paper approved by the Policy Commission in June 2023:

• controlling the legal (cross-border) trade in regulated goods.
• combatting the illegal cross-border trade in environmentally-sensitive goods, such as
wildlife, timber and waste.

Green Customs Action Plan approved by the Policy Commission in June 2023:

www.wcoomd.org Green Customs 8

WCO Ro les in En viro n m en t al Issu es: En ab lin g p ro cess co llab o rat io n
(MEA)

Leg it im at e Trad e
GENERATOR DISPOSER Illeg al TBM

Frau d :

Misd eclarat io n

Co n cealm en t

Risk Man ag em en t
COUNTRY OF COUNTRY OF
EXPORT IMPORT
Licen ses, Perm it s,
COUNTRY OF Cert ificat io n s (LPCO)
TRANSIT

www.wcoomd.org Green Customs 9

Cu st o m s t o Cu st o m s Co o p erat io n an d Dig it alizat io n

Standards 6.7 of the General Annex (GA) of Revised Kyoto Convention (RKC)
The Customs shall seek to co-operate with other Customs administrations and seek to conclude
mutual administrative assistance agreements to enhance Customs control.

Article 12 of the W TO TFA: Customs Cooperation,

The article sets out the terms and requirements for Members to share information in order to
ensure effective customs control, while respecting the confidentiality of the information
exchanged.

Standards 7.1 of GA of RKC (Application of Information Technology)

The Customs shall apply information technology to support Customs operations.

Standards 7.2 of GA of RKC

When introducing computer applications, the Customs shall use relevant internationally accepted
standards.

www.wcoomd.org Green Customs 10

Efficient flow of information: Global Interoperability

• The WCO Data Model (DM) is the data foundation for global
trade interoperability

• The WCO DM is a universal language for cross-border data

exchange enabling the implementation of Single Window
systems and fuelling Data Analytics.

• It is a compilation of clearly structured, harmonized,

standardized, and reusable sets of data definitions and
electronic messages designed to meet the operational and legal
requirements of Customs and other cross-border regulatory
agencies (CBRAs) responsible for border management.

www.wcoomd.org/DataModel
www.wcoomd.org Green Customs 11
WCO DM My Information Package
Towards full compliance to international standards

www.wcoomd.org Use of International Standard in DT 12

Globally Networked Customs

Regulatory and Legal Framework

Process Alignment
• Entities
• Trigger
• Process flow/ business rules
• Data Cluster
The voluntary arrangement between two or more
Members for a seamless exchange of cross border Technological Interoperability
information at a Customs to Customs level using a
standardized approach based on existing WCO • Systems integration architecture
instruments
• Systems interface
By gradually moving away from the current • Network communication
individually hand-crafted method for negotiating
International Agreements and using a disciplined and • Security
common methodology to industrialize the process

www.wcoomd.org Green Customs 13

In t eg rat io n arch it ect u re: Pro p riet ar y vs St an d ard ized so lu t io n s

www.wcoomd.org Green Customs 14

 GNC, Interconnectivity Framework that just work!

South America:
• Indira: Exchange of Customs Data
• bConnect: Exchange of AEO Master Data

South Africa:
• YEIMI: Exchange of Customs Data

On going development: Interconnectivity Framework for Certificate of Origin

• TCRO Work Programme
• Informal Working Group: Australia, China, Indonesia, Japan, Korea, Madagascar, Switzerland,
United States, Uruguay.

www.wcoomd.org Green Customs 15

 V

Thank you

Tejo Kusuma
tejo.kusuma@wcoomd.org
Compliance and Facilitation
World Customs Organization

www.wcoomd.org Green Customs 16