ࡱ> fheQAZbjbjȃ 1-V]8 $D\v$}qr"LLLL8L Ll Z4DѦ> Implementation of the ASYCUDA System in Jordan as Means of Facilitating Trade By: Mahmoud Wafa ASYCUDA Project Director Customs Department/ Jordan 30 April 2001 BACKGROUND: ASYCUDA (Automated System for Customs Data) was offered by UNCTAD to Jordanian Customs Department for the first time in September 1987. Then, the system was mainly a statistical one. The offers continued in 1988, when the system was marketed as a tool to minimize the administrative costs as well as to facilitate customs procedures. Nevertheless, the department preferred to postpone the decision to adopt the system for sometime. Back then, the Hashemite Kingdom of Jordan was passing through an acute economic hardship which finally resulted in the devaluation of the Jordanian Dinar against other currencies. All plans that involved changes in the way that customs work was conducted almost came to stall. At that time, customs collections constituted more than half of the states revenue. Consequently, there were fears that such plans, especially the use of the single administrative document instead of the several forms of declarations used then, might affect the volume of such collections. During the rounds of review and evaluation that were undertaken between 1992 and 1996 one thing was absolutely clear: reform must precede computerization. The issues of funding and Arabization of the ASYCUDA System were other concerns. In a comprehensive study conducted by an UNCTAD Customs expert, the following reforms were identified: Applying the Single Administrative Document Providing legal coverage for EDI of declarations Identifying the declarants and defining their responsibilities Using a unique taxpayer identification number Building integrated tariff tables Employing risk management techniques Utilizing green-lane system Separating manifest procedures from registration of declarations Re-organizing the infrastructure of customs offices Using international codes Establishing a post- clearance audit unit Modernizing transit procedures As the Customs Department realized that the legislative, technical, and administrative requirements can be met, the ASYCUDA System was adopted in quest of improving the economy of the country by strengthening the Governments capacity to generate customs revenue through the provision of an efficient service to the trading community. This will in turn reduce the Governments dependence on foreign assistance and borrowing as sources of public sector financing. Also, the project will contribute to the simplification and modernization of international trade and customs procedures, as well as improving the administrative and legal environment for investment promotion in Jordan. At the same time, the Government of Jordan recognizes the need to balance this objective with an effective service for the collection of revenue vis--vis significant improvements in the institutional capacity and operational efficiency of the Jordanian Customs Department. In the meantime, the system had proven its potential with the widespread implementation at countries some of which have conditions similar to Jordans. Although the ten years that separate between the time when the system was first offered, and the time when the agreement was signed in 1997 seem too long, however to those who know about the conditions of Jordan, in general, and of the Customs Department, in particular, would not find it unusual. Modernization programs had not ceased all along. The following were some of the reforms that Customs Department had undertaken in fulfillment of the demands by the private sector to facilitate procedures and remove obstacles against the flow of goods from and to the Kingdom: Adoption of the Harmonized System of goods classification in 1994. Participation in the bilateral and multilateral negotiations after Jordan had submitted the application for accession to ϲʹ in 1995. This had led to the introduction of major legislative reforms. Issue of the Law for Consolidation of Customs Taxes and Fees in 1996 in which only one unified rate replaced six different taxes and fees. Introduction of European SAD in 1998 at a number of customs offices, thus, replacing eight outmoded declarations with only one. Issue of the new Customs Law in 1999. In this law, Customs Department made sure that all legislative reforms were introduced, e.g. electronic interchange of declarations, selectivity, post-clearance auditing, and most importantly GATT Definition of Value. What is ASYCUDA++? ASYCUDA is a programme for modernization of customs administrations and procedures. It has been developed by UNCTAD in Geneva and is currently operating or is in the process of being implemented in 80 countries worldwide. The programme aims to speed customs clearance through the simplification and computerization of procedures, thus minimizing administrative costs to the business community and countries economies. At the same time, it is designed to fight fraud through the application of risk management and targeting techniques. Furthermore, it aims to increase revenue, which is the major contributor to national budgets in most countries, by ensuring that all goods are declared, that duty/tax calculations are correct and that development exemptions are properly managed. It aims to produce reliable and timely trade and fiscal statistics to aid the economic planning process automatically, as a by-product of the customs system1. The ASYCUDA software operates on microcomputers in a client/ server environment under UNIX and DOS operating systems and RDBMS software. It takes into account the international codes and standards developed by ISO (International Organization for Standardization), WCO (World Customs Organization), and the United Nations. ASYCUDA provides for Electronic Data Interchange (EDI) between traders and Customs using EDIFACT rules2. The ASYCUDA++ core modules cover system administration, national configuration, tariff and master file maintenance, cargo manifest handling, declaration processing, risk assessment (selectivity), accounting and direct trader input (broker module). ASYCUDA++ offers a number of important features, such as: Full implementation of the European SAD. The utilization of the concept of Electronic Customs Clearance (ECC). A modern and user friendly tariff language. A modern selectivity module. Full auditability of the transaction files. The possibility to formulate ad-hoc SQL requests provides customs with efficient and virtually limitless reporting capacities. 1 ASYCUDA Newsletter No.9 (Trade Facilitation and Multimodal Transport) by the Division for Services Infrastructure for Development and Trade Efficiency (UNCTAD)- March 1997 (page no.9) 2 About ASYCUDA- http:// www.asycuda .org/aboutas.htm-2/3/00 The technical design of ASYCUDA++ incorporates the latest software and computer system technologies, such as: The use of the client/server model ensures that the respective equipment is used for what it can do best. The multi-layered design allows for flexibility to respond to future developments and country specific preferences. The use of object-oriented tools is a powerful state of the art development method which increases the quality and development speed of the system. The availability of optional printout filters offers to the user countries total control over the shape or format of the various printouts produced by the system. The relational database management system as the main data storage provides guaranteed database consistency through the integrated roll-back facility. Security and data integrity is guaranteed through a number of levels. The development platform consists of the sources of the development kernel permitting the user country to write and implement modifications and extensions to the system to meet national requirements as they arise. The choice of an architecture using a standard LAN offers the possibility to use the same physical network also for other applications such as office automation tools like e-mail, word processing, etc The communications concept of A++ Gates offers complete flexibility for the exchange of any computer managed objects such as data, files, and programs. ASYCUDA++ provides the possibility of maintaining multiple languages. Translation utilities are supplied as part of the core system to assist with the translation into national languages as required 3. Phase I: Following signing of the agreement in June 1997, Phase I of the project that aimed to implement the ASYCUDA system at two pilot sites had started in co-operation with UNDP and GTZ. The project was executed in accordance with UNDP administrative and financial rules and guidelines. A 10-member national team was organized and assisted by UNCTAD advisers. The activities of the project included the following: 3 ASYCUDA++ General Overview/Lyon, November 1998 (page no.11)Arabization: More than 4000 labels, 140 reports, and 260 forms were Arabized using the utility that the system offers for that purpose. Training and Publicity Activities: In addition to the technical and functional training that the project team had received, two study tours to the Philippines and Lebanon were conducted. In total, more than 160 rounds of training were delivered by the project to more than (1300) participants. Re-engineering of Processes: A modern path for processing of declarations (Attached) was designed and implemented. Detailed analytical studies of all procedures were conducted to identify possible procedural bottlenecks and take appropriate remedial measures. Preparation of Control Files: There were two kinds of control files to be loaded with codes. The first uses international codes such as currency codes, modes of transport, package codes, and terms of delivery. UN codes were adopted for that purpose. While the second type included local codes, such as the companies file, declarants file, and customs offices codes. Building Integrated Tariff Tables: Despite the complexities, Customs Department and the project managed to build fully integrated tariff tables that not only included the Unified Customs Duties but also the General Sales Tax rates and all preferential rates as stated in more than (17) bilateral and multilateral trade agreements that Jordan is a contracting party to. In addition, a column was added to include the documentary requirements, i.e. codes of the documents needed by more than (20) entities for clearance when the related commodity codes are declared. Also, the descriptions of goods had to be rewritten by combining, abbreviating, eliminating, and replacing some texts. Re-organizing and Equipping the Offices: Few changes had to be introduced in the offices where the system was piloted to conform to the new processing path. New electricity and computer networks were installed as well as equipment which were sized and specified in accordance with the practical need. Configuration of the System: Over the two and a half years of the first phase of the project, four releases of the system were dealt with. Each release had to be tested and technical problems had to be fixed. UNCTAD approved a number of system changes that Jordan requested to meet few implementation requirements to the smallest detail. Introduction of Risk Management Techniques: In October 1998, a Risk Management Unit was established. A survey of possible risks was undertaken and the selectivity criteria were programmed. Although the concept is a new one to the department, however it has proven effective in no time. Defining Interfaces with Other Systems and Entities: The project managed to develop a program to transfer data from the ASYCUDA System to more than twenty other computerized applications that had to be kept because they cover parts of the customs clearance process that the ASYCUDA System does not. On the other hand, meetings were held with a number of Governmental departments to agree on areas of common interest, such as the Department of Statistics, Income Tax Department, and Ministry of Agriculture. Finally, the system was implemented at QAIA Customs Office in June 99 and at Amman Customs House in October 99. In parallel with the above activities, and in order to give the system a strong launch, a number of decisions by Customs Department had to be taken in fields such as: Granting pre-shipment exemptions Providing pre-import classification opinions service. Approval of past results of testing some commodities at the Customs Lab. with random sampling and testing of new consignments of similar commodities. Delegating authorities from HQ to the customs offices Cooperating with Income Tax Department in designating temporary taxpayers numbers to importers and exporters who do not have permanent numbers. Operating the servers for 24-hours daily to maximize the benefits of the system. Simplifying forms and reducing the number of signatures. What were the results? A survey was conducted by the project through questionnaires distributed to customs staff and to declarants three months after the implementation of the system at the first pilot site. The following were some of the results: Declarants: (82%) think that declarations are made faster and more accurately through the system. (75%) think that the procedures of release of goods are easily completed. (75%) believe that the system contributed to improving the role of the brokers, and developed the profession of clearance. (85%) believe that the adoption of the system by Customs Department as means of facilitating trade was a positive step. (79%) do not recommend reverting to the previous system. Customs staff: (73%) think that the procedures of release of goods are easily completed. (87%) believe that brokers have shown considerable acceptance of the system, and that the reactions of exporters and importers over the use of the system were positive. (80%) approve the continuous development of the system so that it includes more procedures. (70%) support rolling out of the system to other customs offices. In general, the percentages of declarants and officers who were not content with the system can be estimated at (5-10%) and (10-15%), respectively. And that is considered within the normal range if the magnitude of changes is taken into consideration. Furthermore, if the survey is to be carried out again nowadays, the results would have been much better. On the other hand, an in-depth mandatory evaluation was conducted by three independent evaluators representing UNCTAD, UNDP, and Customs Department in August 1999. In its final report, the evaluation team indicated that the national execution of the project can be seen as a model project for Jordan. The project, as reported by the evaluation team, achieved all its outputs, and the objectives as set out in the project document have been partially achieved. They will be fully achieved following the complete roll-out of the ASYCUDA System to the whole country under the planned phase-II of the project. The following were the success indicators that the expected impacts were attained, as listed by the evaluation team: Time of release:the green lane declaration takes on average 2 hours. Revenue collection:the revenue has stayed constant despite significant reductions in duty rates.Trade statistics:trade statistics are more completely accurate, and up-to-date.Simplification and increased transparency through:Integrated tariff, SAD, Risk management techniques, and Direct Trader Input. What lessons (both positive and negative) can be drawn from the experience of the project? According to the experience of this project to date, the following lessons can be drawn: The strong political support and commitment by the Director General and the senior management as well as the excellent backstopping by all stakeholders (UNCTAD, UNDP, Brokers Union ) are the most valuable elements in achieving the success. Selecting dedicated staff for the project team and maintaining them together within the same team through all phases of the project are extremely important. Ownership of the project by the Government is best secured when it contributes largely in financing the project. Having a strong start is a guaranteed bet to win the support and acceptance of the users. The ASYCUDA System can be as good as Customs Department wants it to be. The facilitation of procedures of the other trade- related Governmental departments should have been undertaken as well to maximize the benefits of the ASYCUDA System. The technical assistance received was very appropriate as it touched on the main areas of concern as far as trade facilitation was concerned, and it had complemented the other reform efforts within the Customs Department. Sustainability issues are the most critical in such projects. Sustainability can be best achieved by institutionalizing the projects functions within Customs Department. Also, to guarantee continuous flow of funds, in order to modernize the equipment and provide technical support, user fees must be collected. The issue of coordination between bilateral donors and international organizations can be very tricky. It is, therefore, recommended that a single set of rules and guidelines, e.g. UNDPs, have to be agreed on by all parties at an early stage and followed in detail later. Phase II: Building on the successful implementation of the system in phase I, and in light of the recommendation made in the Terminal Tripartite Meeting, which was held in Nov. 1999, Customs Department cooperated with UNDP and UNCTAD in drafting a project document for the second phase. An agreement was finally reached in April 2000 to start a 30-month second phase of the project which aims to roll out the implementation of the system to all other customs clearance offices and to install the transit module. The objectives of the first phase were maintained and added to them two more: To strengthen sub-regional co-operation on customs modernization through training activities related to computerization and discussions of other subjects of regional interest. Ensure sustainability of the ASYCUDA project through institutionalizing the system in day to day procedures of Customs Department. After the elapse of the first year of phase II, the project managed to install the system at two other sites in the port of Aqaba and is in the process of implementing it at two sites in Zarka Free Zone. To achieve that, the project carried out all of the tasks as in phase I including (79) rounds of training which were conducted to more than (600) participants from Customs, private, and public sectors. Number of training hours have exceed (1000). In addition, Customs Department looks forward to contribute to the growth of the Jordanian economy through the use of the ASYCUDA System as the vehicle to increase trade efficiency in the following fields: Cooperation with traders: If traders expect greater facilitation of import and export procedures by customs, then they themselves must be willing to contribute to the building of an environment of trust and cooperation which will enable that facilitation to become a reality. Partnership with trade operators: While customs has an important role to play, it is by no means the only participant which introduces delays into the process. Much of customs work in relation to the clearance of goods involves the processing of information. Customs Department will make sure that complete and high quality information is received by its partners, i.e. shipping agents, freight forwarders, banks, and customs clearing agents/ brokers. Also, the ASYCUDA system must be accessible to all of these operators. Introduction of more reforms: As new challenges will be presented to customs with the expected increase in the volume of goods to be traded, and the broadened scope of activities into areas as diverse as intellectual property rights, toxic waste and endangered species, Customs Department will have to depend more on the ASYCUDA System in fulfillment of E-commerce requirements and to introduce more reforms that have a substantial impact on the movement of goods across the borders. This task is not made easier by the fact that the administration has been impacted by the worldwide trend for smaller and more efficient government which has limited the manpower resources available to customs. In reforming existing customs practices further, Customs Department should adopt modern business process re-engineering techniques to identify inefficient and /or redundant activities for streamlining or elimination4. Concluding Remarks: When Customs Department took the decision to adopt the ASYCUDA System, it had in mind that the best way to meet the demands of international trade is by the use of an international system that employs internationally accepted practices. Globalization and liberalization of trade have increased the potential for international trade to become an unprecedented engine of growth and an important mechanism for integrating developing countries and economies in transition into the global economy. The lack of efficient and transparent trade-related services such as customs, transport, banking and insurance, and telecommunications poses a formidable risk of exclusion of developing countries from the emerging global economy5. Calling for cooperation among countries, organizations and the private sector in meeting the challenges, ASYCDUA offers an excellent platform that would allow customs administrations worldwide to participate in the global electronic market6. 4Recommendations and Guidelines for Trade Efficiency, United Nations International Symposium on Trade Efficiency, New York and Geneva 1994.5Trade Facilitation- Customs Reform ASYCUDA/Growth Package. UNCTAD- April 1997.6Lyon Summit Getting from Here to There. ASYCUDA Newsletter no. 3/November 1998 (page no.3)   PAGE 7 0O fg#%LMvwx##]$_$%%"%+%,%&&&&˿˴˿˝˝˝˝˗ŝ˝˝˝˝˴˿ B* CJ`J 5B* CJH*\`J 5>*B* CJH*\`J 5>*B* CJ\`J B* CJ `J B* CJ`J B* CJ`J B* `J OJQJ>*B* CJ`J OJQJB* CJ`J OJQJCJ^JCJ>*CJ>*CJ;0OPaz  O   & FWd  h7d $7d  $A$7d -D $A$$A$$d -D $-D 0OPaz  O  # d QR¸|rh^YTORS       @            U        # d QR%j7d, d -D d   & Fd h & Fd h7d  & FWd  h%jkLMw3 ½vlb]XQJ    q         -  W X9:           jkLMw3 gvd $$ 7d   & Fd, h & Fd, h  & Fd, h 7d, 7d, gvw$% ?!!""#V$!%"%+%,%&&&&'zpkfa\WRKC    xyN          e             -  .  =  vw$% ?!!""#V$!%"%+%d -D  & Fd  h  & Fd  h & Fd  hd 7d $$l!  d $+%,%&&&&''''(())++,+- & FVd% d%  7d%  & FVd% $$lU"  d $7d d &&''''(()),+N+--./ /%/\0]00{1|1133666667775868;8<8@8A8D8E8O8P8R8S8Z8[8]8^8c8d8g8h88899J;K;<<???? A AgAhAAı5>*B* CJ\`J >*B* CJ`J 5>*B* CJ\`J B* CJ`J B* CJ `J B* CJ`J B* CJ`J >*B* CJ`J B* CJ`J 5B* CJH*\`J F''''(())++,+--/ /\0]0{1|1x3y33344455»zupkdZPF#        +,(  )G  H     x y        --/ /\0]0{1|1x3y33344455 & F Vd   & F Vd 7dd  & FVd Vd S & FVd% Vd% S5H666666677708{88n9999::;J;K;<<?ĽxndZUPKFYZ          6    )  t         \    5H666666677708{88n9999::; & Fd  h7d  & F d  h & F d d -D 7d d  & F Vd  ;J;K;<<????????0@1@C@@@@@@@ҌHD $$l7"!d $ $$l7 !d $7d d  & Fd  h????????0@1@C@@@@@@@@@@A A A AgAhAAABƿuqlgb\WRK  < =                  !"  a  st        @@@@A A A AgAhAAABQCCDfDEE&G8H9HDH 7d -D  & Fd d -D 7d 7d  $$l7 !  & Fd $AA9HDHEHJJ;KZZ5CJ\aJ0J5CJ\aJ0J5CJ\aJj0J5CJ\aJUaJZ jZU5B* CJH*\`J B* CJ`J >*B* CJ`J B* CJ`J B* CJ`J 5>*B* CJ\`J 5>*B* CJ\`J B* CJ`J B* CJ `J 2BQCCDfDEE&G8H9HDHEHJJ;K      S    DHEHJJ;KZ?Z@ZAZ #UWWXXXyYzYYY+Z,Z-Z/Z0Z1Z>Z?Z@ZAZL|$mr$dd d $$$l2"  rd $7d >Z?ZAZZ/0P/R . A!"#$% [B@BNormal$A$B*CJ`JaJ OJQJ^JD@D Heading 1$$A$@&5>*䴳^<A@<Default Paragraph FontFC@FBody Text Indent $A$7CJ^JHB@H Body Text$A$B*CJ`JaJOJQJ^J@P@@ Body Text 2$A$B*`JaJ^J0@"0Header  9r aJ0 @20Footer  9r aJ&)@A& Page Number,U@Q, Hyperlink >*B*`JAVAV&A>ZAZ.7?D jv+%-5;@DH#UAZ/13569;<>AC '5?B/TAZ0248:=@B !P   @ 0(  B S  ?(    H1Ȝ? g 5T[\`pyR]7 : = @ ##j7t7CC=HBH|HH-V0V1V2V>4@@±ٱKK۰-012C:\WINDOWS\TEMP\AutoRecovery save of Implementation-Geneva.asdMONTAHA AL_SOUS>C:\WINDOWS\TEMP\AutoRecovery save of Implementation-Geneva.asdMONTAHA AL_SOUS.C:\My Documents\Asyc\Implementation-Geneva.docMONTAHA AL_SOUS%C:\My Documents\Asyc\wto-workshop.docw&@S=j QGa K~JSzvP0C8.#A<ކe\e.#w$.-%²uTPn',g+`*J-Uv,C0f( 4NlF> 8.#9"D.#dqKF jTRf\.#'_.#;Xe6~r f.#D3vh[ʺI_jOGjo*vMYor.#Cw.#o(>*o(.o(.o(.o(.$hhB*CJOJQJ\]^J`JaJo(o(.$hhB*CJOJQJ\]^J`JaJo(o(()o(.o(.o(.o(o(.o($hhB*CJOJQJ\]^J`JaJo($hhB*CJOJQJ\]^J`JaJo(h.o(.$hhB*CJOJQJ\]^J`JaJo($hhB*CJOJQJ\]^J`JaJo(o(.$hhB*CJOJQJ\]^J`JaJo(h.o(.o(.$hhB*CJOJQJ\]^J`JaJo($hhB*CJOJQJ\]^J`JaJo(Szvr f8Cw9"DTPn'\> 8w$AjTjoe\e'_MYorv,C0 I_j=j-%Ga;Xew 4*J-dqKFD3vh,g+@lDAVP@G:Times New Roman5Symbol3& :ArialM @Traditional Arabic5& :Tahoma; @Akhbar MT"0hTTcTw G$Y0BW Background Montaha-MoMMONTAHA AL_SOUS Oh+'0|  , 8 D P\dlt Backgroundack Montaha-MoMont ANormal.dotMONTAHA AL_SOUS2NTMicrosoft Word 8.0@@Jl@ҵ@ҵw G ՜.+,D՜.+,< hp  Asycuda$BWU  Background Title 6> _PID_GUIDAN{A16DC300-9CF6-11D4-B8E5-0050DA03DC47}  !"#$%&'()*+,-./0123456789:;<=>?@ABCDEGHIJKLMNOPQRSTVWXYZ[\^_`abcdgRoot Entry F`Ѧ Ѧi1TableFWordDocument1SummaryInformation(UDocumentSummaryInformation8]CompObjj  FMicrosoft Word Document MSWordDocWord.Document.89q