WORLD CUSTOMS ORGANIZATION

Integrated
Chain Supply
Management
Guidelines
CUSTOMS GUIDELINES ON INTEGRATED SUPPLY CHAIN MANAGEMENT

ISCM GUIDELINES

WORLD CUSTOMS ORGANIZATION

June 2018
 ISCM
Table of contents

Foreword.....................................................................................................................................................3
1. Management Summary.....................................................................................................................6
2. Definitions...........................................................................................................................................8
3. Integrated Customs control procedures........................................................................................10
4. Data privacy and data protection....................................................................................................15
5. Mutual Recognition of AEO programmes.....................................................................................16
6. Data pipeline....................................................................................................................................18
7. IT systems........................................................................................................................................18
8. Projects/Pilots...................................................................................................................................20
9. References.......................................................................................................................................20
Annex I – Customs Control Activity Diagram – normal electronic procedure with G2G option....21
Annex II – Authorized Supply Chain.....................................................................................................22
Annex III – Global Supply Chain model – Order – with UCR............................................................23
Annex IV – Global Supply Chain model – Ship...................................................................................24
Annex V : Data elements necessary for risk assessment..................................................................25
Annex VI Data Pipeline Concept...........................................................................................................27
ANNEX VII : Projects/Pilots....................................................................................................................29

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Foreword

The increasing threat of international terrorism and organised cross-border crime requires
the enhancement of existing border and frontier controls and effective national and
international co-operation between Customs, other law enforcement agencies and business.
The greatest challenge for Customs will be to offer facilitated treatment of the vast majority of
international cargo movements and passenger traffic, while identifying and dealing with the
small percentage that pose a genuine risk to safety and security.

Responding to global security concerns, the WCO adopted the SAFE Framework of
Standards (SAFE FoS) to Secure and Facilitate Global Trade that has been regularly
updated. This unique international instrument ushered in modern supply chain security
standards and heralded the beginning of a new approach to the end-to-end management of
goods moving across borders while recognizing the significance of a closer partnership
between Customs and business.

More recently, acknowledging the heightened focus on security in the activities of Customs
administrations world-wide, the WCO adopted a ‘Resolution on the Role of Customs in the
Security Context’1 and developed the WCO Security Programme to support Customs
administrations. The Resolution, among others, invites Customs authorities to include
security as part of their mandate and functions, where appropriate, by including security in
their strategic plans and disseminating the goal to the front lines. It reiterates close
cooperation at national, regional and international level between Customs authorities and
between Customs and other law enforcement authorities in relation to information exchange
and investigations, with a view to enhancing border security, and identifying, disrupting and
dismantling criminal and destabilizing organizations and individuals.

Apart from the still topical security concerns that were at the origin of the SAFE FoS, the
ISCM guidelines have to be read in particular with the trade facilitation aspirations of the
SAFE in mind. Integrated supply chains as described in these guidelines have features that
distinguish them from the regular flow of goods and justify faster or immediate
release/clearance of the concerned consignments.

One example of such integrated supply chains is the one based on Customs-to-Customs
information sharing and mutual recognition of controls. Other types of integrated supply
chains include supply chains with Authorized Economic Operators (or other trusted traders)
involved throughout the supply chain (trusted trade lanes).

The growing digitalization of international supply chains is generating exponential

opportunities in terms of data access, capture, aggregation, and analysis for meeting
organizational goals more effectively. Nonetheless, digitalization also presents risks, e.g.,
cyber security and fraud that must be safeguarded against.

Some of the recent global developments have substantially changed the environment in
which Customs administrations operate that includes inter alia the following :

i. International supply chains are increasingly controlled, monitored and secured end
to end for their own commercial reasons, thus allowing Customs administrations to
rely on the safety and security measures taken by traders.

1
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ii. Customs and traders around the world have invested lots of efforts and resources
in getting to know each other’s operating environment and respective expectations
better, for example by setting up and implementing AEO programmes.

iii. Modern information and communication technologies (ICT) allows for accessing,
aggregating, storing, sharing and analysing data at an unprecedented scale,
subject to commercial confidentiality and appropriate access rights.

The consequences of these developments for Customs control are being tested in a number
of projects. The outcomes and lessons learned from these projects would allow for more
differentiation in Customs control in accordance with the trader or trade lane involved.

The traditional control approach is based on a standard declaration system, requiring data to
be submitted to Customs in a prescribed format. Sometimes the declaration is preceded by a
summary declaration or cargo declaration. This declaration allows for an initial safety and
security check that may result in a no load decision or request for a specific inspection before
the loading of the consignment on a specific means of transport. Data for these declarations
are very often provided by intermediaries that do not have access to the real source of the
information.

Moving away from traditional control approaches, risk management is now at the heart of
modern Customs control and law enforcement. Risk management, one of the core principles
of modern Customs co-operation, developed by the WCO in the Revised Kyoto Convention
(RKC) and the SAFE FoS, enables Customs to exercise adequate controls with minimum
hindrance to legitimate trading. But any risk management system is as good as the quality of
the data that are put into the system. Data are generally available well before the shipping of
the consignment, often even before e.g. the stuffing of the container or the preparation of the
shipment. Efforts are being deployed by governments working with relevant stakeholders to
obtain information, relevant for Customs, directly from the source and at a much earlier stage
than the moment of lodging the import or export declaration.

The integrated supply chain management (ISCM) concept described in these guidelines aims
at moving away from traditional Customs controls. These supply chains have specific
characteristics that ensure the timely availability of quality data and the integrity of the
consignment in the supply chain concerned. Based on these characteristics, Authorized
Economic Operators (trusted traders) and authorized supply chains (trusted trade lanes) can
benefit from reduced risk scores in risk management systems and will normally not be
impacted by Customs controls. If properly applied, this concept allows scarce Customs
resources to better target serious security and safety risks. Companies that do not have a
proven track record with Customs will still be subjected to appropriate Customs controls.

The implementation of the ISCM Guidelines should take place at the national level and
eventually move towards regional or global level. However, the ISCM Guidelines will only
become truly effective when Customs administrations along the supply chain will have
implemented common standards on Customs control, risk assessment and the authorized
supply chain standards. It would enable mutual recognition of controls, mutual recognition of
AEOs, and integrated Customs control and treatment of international transactions described
in the Guidelines. Although bilateral arrangements will predominate, the focus should be on
the eventual global implementation of the Guidelines requiring flexibility from all parties.

Countries implementing these Guidelines in co-operation with other countries and after
having consulted their stakeholders will have to establish the necessary technical
infrastructure, including Customs IT systems and develop the appropriate legal framework
addressing the following aspects as required :

 Risk assessment and controls at export,

 the use of a UCR,

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 the use of TIN,

 who has to provide the information and who is legally liable,
 which information would have to be requested from whom for risk assessment
ensuring that information is submitted only once,
 to whom this information has to be transmitted,
 when and at what point in the trade process the information has to be provided,
 how the information has to be provided,
 what simplifications and facilitation the Customs will provide to authorized economic
operators,
 how the information received will be used and protected.

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1. Management Summary

1.1 Timely, high quality information and good intelligence are the most critical
elements in the application of efficient and effective Customs risk management and
controls. These elements have become even more essential in the efforts to increase
safely and security along the global supply chain. Since the supply chain consists of the
physical origin-destination movement of the goods and the parallel movement of
commercial data, the overall goal has to be to receive the necessary information to
perform risk assessments as early as possible in the global supply chain from the
originator of the information to allow the free and smooth flow of the goods.

1.2 The application of risk management2 in Customs operations as set out in the
revised Kyoto Convention, its implementing Guidelines and the SAFE Framework of
Standards has become an invaluable best practice to carry out effective and efficient
Customs control and to allow better use of available resources. Through implementation
and use of a risk management programme, Customs can determine which goods and
which traders are in compliance with Customs law and thus pose a low risk for control
purposes. These traders can then be approved for simplified procedures that require
less intervention by Customs for the release and clearance of their goods. Any trader
that meets the criteria that have been identified as necessary to ensure the trader’s
compliance with Customs law can be authorized. The authorization will indicate the
obligations of the authorized person (as stipulated in the RKC) concerning the use of a
simplified procedure. In this context, the SAFE AEO Programme further strengthens
supply chain security and facilitation.

1.3 To achieve the objective of gaining the necessary time for risk management
and to receive quality information, Governments and Customs administrations will have
to treat the global supply chain as an integrated whole . This will require Customs
administrations throughout the supply chain to develop and agree on an integrated
Customs control chain reaching from origin to destination and addressing the key
elements of supply chain security i.e. in document and physical control, shipment,
personnel and information security.

1.4 In a bilaterally agreed integrated Customs control chain, Customs control and
risk assessment for security purposes is an ongoing and shared process commencing at
the time when goods are being prepared for export by the exporter and, through ongoing
verification of consignment integrity, avoiding unnecessary duplication of controls. To
enable such mutual recognition of controls, Customs will have to agree (bilaterally or
multilaterally) on common control and risk management standards, the sharing of
intelligence and risk profiles as well as the routine exchange of Customs data. Such
agreements should foresee the possibility of joint monitoring or quality control
procedures to oversee the adherence to the standards. Furthermore, Mutual Recognition
Arrangements/Agreements (MRAs) provides facilitation benefits to AEOs in partner MRA
countries, while securing the supply chain across borders.

1.5 In the interest of supply chain security and the integrated Customs control
chain, in particular to ensure a fully secure movement from stuffing of the container (or
from the preparation of the shipment) to its final destination, Customs should apply a
seal integrity programme (including e-seals, as appropriate) as detailed in the revised
Guidelines to chapter 6 of the General Annex to the Revised Kyoto Convention. Such
seal integrity programmes include procedures for recording the affixing, changing and
verification of seal integrity at key points, such as modal change.

2
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1.6 The integrated Customs control chain will also require a Unique Consignment
Reference (UCR) to be applied by or on behalf of the party initializing the international
trade transaction to all international consignments and being utilized in all relevant
communications by all parties involved in the supply chain establishing an origin to
destination information and documentation trail. The UCR will enable Customs to link
information received from the different parties for a particular consignment and will
facilitate the exchange of Customs data between Customs administrations.

1.7 In addition to the integrated Customs control chain, Customs administrations

should agree and implement Authorized Supply Chains where the exporter and the
importer have both the status of an “authorized economic operator”, and where, during
the movement of the consignment the exporter and importer agree to use only
authorized economic operators. For the purpose of continued and sustained security
along the global supply chain, the business sector in general but authorized economic
operators in particular will have to apply sound supply chain management policies and
make appropriate provisions in terms of security in their supplier and customer
relationships. While Authorized Supply Chains would provide increased security they
would offer Customs the possibility to provide end-to-end premium procedures and
simple integrated Customs treatment of the total international transaction.

1.8 The increasing use of ICT in the supply chain and the growing digitalization of
business processes result in more information readily available in an electronic format
for use by Customs administrations and other government agencies involved in the
control of goods and people crossing the border. This enables Customs administrations
to require the necessary information from the party having initiated the supply of goods
internationally, i.e. the exporter or the importer, before the consignments depart for their
journey to the country of import. The different business practices applied in the various
modes of transport may require tailored rules for the submission of the information.

1.9 Customs administrations should generally grant rapid release to all

consignments, which have met the conditions laid down by Customs and for which the
necessary information required by national legislation is communicated by electronic
means, at a stipulated time prior to arrival.

1.10 Governments have to take a holistic approach in their efforts to secure and
protect the international trade supply chain from being used for acts of terrorism or other
criminal activity while ensuring continued improvements in trade facilitation without
unnecessarily increasing costs. Governments should therefore take the initiative to
develop co-operative arrangements between Customs and other Government agencies
involved in international trade (coordinated border management)3 in order to facilitate
the seamless transfer of international trade data (single window concept)4 and to
exchange risk intelligence at both national and international levels. This would allow the
trader to electronically submit the required information once to a single designated
authority, preferably Customs. In this context Customs should seek close integration with
commercial processes and information flows in the global supply chain, for example by
making use of commercial documentation such as the invoice and the purchase order as
the export and import declarations (see figure 1 and Annexes III and IV). This concept
can be further realised through the use of new technologies, for example application
programming interface (APIs).

3
http://www.wcoomd.org/en/topics/facilitation/activities-and-programmes/coordinated-border- management.aspx
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Figure 1 Global Supply Chain Model (Source: UN/CEFACT)

1.11 The role of information and communication technology is significant for
efficient and effective Customs control. Customs will have to be flexible and far-sighted
in developing electronic methods of controlling and facilitating trade, especially in the
use of IT, including electronic data exchange. The need for Customs to operate in such
an international environment using IT systems will demand :

 Harmonized Customs procedures and processes based on the revised WCO

Kyoto Convention, as well as e-enabling legislation addressing issues such as
“signature” and “document”;
 Standardized data requirements at export, import and transit, as defined in the
WCO Data Model; and
 A comprehensive IT security strategy addressing, inter alia, the cross-border
recognition of digital certificates.

1.12 Security and facilitation along the global supply chain requires highly trained
and motivated staff in the Customs administrations as well as in all other parties involved
in the supply chain. Customs has to ensure that all levels of staff are regularly provided
with the necessary training5 to build up and maintain the skills required to perform
effective and efficient Customs controls and to operate in the rapidly developing
electronic environment.

5
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validator-guide_final-en.pdf?la=en

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2. Definitions

For the purpose of these Guidelines and in addition to the definitions provided in the revised
Kyoto Convention, the following definitions apply:

a. Exporter, is the party who makes - or on whose behalf - the export declaration is
made and who is the owner of the goods or has similar right of disposal over them at
the time when the declaration is accepted.

b. Agent is a person authorized to act on behalf of another party.

c. Carrier is the party undertaking or arranging transport of goods between named

points. This includes non vessel operating common carriers (NVOCC).

d. Importer is the party who makes or on whose behalf a Customs clearing agent or
other authorized person makes an import declaration. This may include a person who
has possession of the goods or to whom the goods are consigned.

e. Consignee is the party to which goods are consigned.

f. Consignor is the party which, by contract with a carrier, consigns or sends goods
with the carrier, or has them conveyed by him.

g. 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. AEOs may include manufacturers, importers, exporters, brokers, carriers,
consolidators, intermediaries, ports, airports, terminal operators, integrated operators,
warehouses, distributors and freight forwarders.

h. International Supply Chain covers all stages following the recognition of need by a
Customer for a product or service to the fulfilment of an order by a Supplier and the
resulting financial settlement. It incorporates any necessary activities carried out by
Intermediaries and Authorities.

i. Authorized Supply Chain is a concept under which all participants in an

international trade transaction are approved by Customs as observing specified
standards in the secure handling of goods and relevant information. Consignments
passing from origin to destination entirely within such a chain would benefit from an
integrated cross-border simplified procedure, where only one simplified declaration
with minimum information would be required for both export and import purposes.

j. Goods declaration means a statement made in the manner prescribed by the

Customs, by which the persons concerned indicate the Customs procedure to
be applied to the goods and furnish the particulars which the Customs require
for its application.

k. Cargo declaration means information submitted prior to or on arrival or departure of

a means of transport for commercial use that provides the particulars required by the
Customs relating to cargo brought to or removed from the Customs territory.

l. Place of loading is the seaport, airport, freight terminal, rail station or other place at
which the goods (cargo) are loaded on to the means of transport being used for their
carriage from the Customs territory.

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m. Place of discharge is the seaport, airport, freight terminal, rail station or other place
at which the goods (cargo) are unloaded from the means of transport having been
used for their carriage.

n. Customs office of exit is the Customs office by which the goods leave or are
intended to leave the Customs territory.

o. Customs office of entry is the Customs office by which the goods enter or are
intended to enter the Customs territory.

p. Customs control are measures to ensure compliance with the laws and regulations
which Customs are responsible for enforcing.

q. Mutual Recognition is a bilateral/plurilateral or regional arrangement/agreement

between Customs Administrations, which provides a framework to extend AEO
benefits across borders in the jurisdiction of the partner country/countries/Customs or
economic unions.

3. Integrated Customs control procedures

3.1 General provisions

3.1.1 These Guidelines should generally apply to all consignments and all modes of
transport.

3.1.2 The Revised Kyoto Convention (RKC) provides in standard 6.1 of its General
Annex that all goods including means of transport, which enter or leave the Customs
territory shall be subject to Customs control. For the purpose of an integrated
Customs control chain, however, the integrity of the consignment has to be ensured
from the time the goods leave the place of origin until they arrive at the place of
destination. This can, in the absence of internationally agreed standards and
protocols, be achieved through Customs-Business Partnerships, including Authorized
Supply Chains, on the basis of WCO or equivalent Supply Chain Security standards.

3.1.3 For the purposes of supply chain security and trade facilitation these
Guidelines describe the various procedures and processes in international trade and
how they should be integrated into an integrated Customs control chain. The
individual procedures may include the following (see also Annex I):

1. The advance electronic transmission of an initial export goods declaration

by the exporter or his agent containing the relevant information for the
exporter specified in Annex V to the Customs administration at export
followed by a complementary declaration at an agreed later stage, where
required (see 3.2);

2. The advance electronic transmission of an initial declaration by the carrier

containing the relevant information specified in Annex V to the Customs
administration at export or import, followed, where required, by the full
cargo declaration at an agreed later stage (see 3.3 and 3.4), if this cargo
declaration contains any information not included on the initial declaration;

3. The advance electronic transmission of an initial import goods declaration

by the importer or his agent to the Customs administration at import
followed by a complementary declaration at an agreed later stage, where
required (see 3.5);

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4. The Authorized Supply Chain provides the possibility to integrate the

information flows as described in the aforementioned paragraphs 1 and 3
into one single declaration for export and import purposes;

5. The routine (advance) electronic exchange of Customs data between

Customs administrations at export and import to support risk assessment
and rapid release (see 3.6).

3.1.4 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 that party should assign a unique consignment reference (UCR) to
the consignment in accordance with the WCO Recommendation on the UCR and its
accompanying Guidelines (see also Annex III). The UCR should be utilized in all
relevant communications by all parties involved in the entire supply chain.

3.1.5 Transitional Standard 3.32 of the General Annex to the RKC provides the
possibility that for authorized traders who meet criteria specified by the Customs,
including having an appropriate record of compliance with Customs requirements and
a satisfactory system for managing their commercial records, the Customs shall
provide for release of the goods on the provision of the minimum information
necessary to identify the goods and permit the subsequent completion of the final
Goods declaration enabling among others the calculation of duties and taxes and the
collection of trade statistics. These arrangements can be extended, with benefit to
facilitation as well as security, by the concept of an Authorized Supply Chain in which
all operational participants in an international trade transaction are approved by
Customs as observing specified standards in the secure handling of goods and
relevant information. Consignments passing from origin to destination entirely within
such a chain would benefit from an integrated cross-border simplified procedure,
where only one simplified declaration with minimum information would be required for
both export and import purposes. In cases where the authorized economic operators
in an authorized supply chain have agreed to provide Customs at export, import and
en route with online access to Customs relevant information within their commercial
systems and there are arrangements for mutual recognition of authorizations on a
basis acceptable to both export and import Customs, the simplified declaration could
be reduced to the provision of the UCR only (see also Annex II). Such a procedure
would have to include a thorough cross-border audit of the traders’ commercial
systems.

3.1.6 Standard 3.8 of the General Annex to the RKC makes the declarant
responsible for the accuracy of the particulars given in the Goods declaration. The
RKC further provides that national law shall lay down the conditions under which a
person is entitled to act as declarant. Where many countries require a licensed
Customs broker to submit the Goods declaration, others leave this to the
exporter/importer to determine whether he wants to accomplish these formalities by
himself or through an agent, who may or may not have to be licensed by Customs.

3.1.7 Standard 3.13 of the General Annex to the RKC provides the possibility that
where for reasons deemed valid by the Customs, the declarant does not have all
information required to make the Goods declaration, a provisional or incomplete
Goods declaration shall be allowed to be lodged, provided that it contains the
particulars deemed necessary by the Customs (see Annex V) and that the declarant
undertakes to complete it within a specified period. In the context of the WCO ISCM
Guidelines the initial declarations as described in 3.1.3. can be regarded as
incomplete declarations.

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3.1.8 Standard 4 of Specific Annex A.1 to the RKC holds the carrier responsible to
the Customs for ensuring that all goods are included in the cargo declaration or are
brought to the attention of the Customs in another authorized manner. Although the
Standard requires all goods to be reported there are many varying practices. Some
administrations only require the goods that are to be unloaded in their Customs
territory to be reported, while others require all goods to be reported irrespective of
whether they are unloaded or not. In some cases goods not meant to be unloaded or
meant for destinations outside the Customs territory can be reported in a simplified
manner. In any event, Recommended Practice 9 of Annex A.1 urges Customs to limit
their information requirements to that available in carriers’ normal documentation and
to base their requirements on those set out in relevant international transport
agreements (e.g. IMO FAL Convention, ICAO Chicago Convention).

3.1.9 According to Standards 3.33 and 3.40 of the General Annex to the RKC,
goods shall be released as soon as Customs have examined them or decided not to
examine them, with examinations to take place as soon as possible after the Goods
declaration has been registered. For the purpose of the ISCM Guidelines, Customs
should, within a specified time limit, notify the party having submitted the Goods or
Cargo declaration, as applicable, whether the goods cannot be loaded, unloaded or
released.

3.1.10 According to Standard 3.23 of the General Annex to the RKC where national
legislation lays down a time limit for lodging the Goods declaration, the time allowed
shall be sufficient to enable the declarant to complete the Goods declaration and to
obtain the supporting documents required. In addition, Standard 3.25 of the General
Annex to the RKC requires Customs administrations to make provision for the lodging
and registering or checking of the Goods declaration and supporting documents prior
to the arrival of the goods. Article 7.1 of the WTO Agreement on Trade Facilitation
(TFA) provides that each Member shall adopt or maintain procedures allowing for the
submission of import documentation and other required information, including
manifests, in order to begin processing prior to the arrival of goods with a view to
expediting the release of goods upon arrival. It further states that each Member shall,
as appropriate, provide for advance lodging of documents in electronic format for pre-
arrival processing of such documents. Standard 1 of Specific Annex C.1 on outright
exportation as well as of Specific Annex A.1 on Formalities prior to the lodgement of a
Goods declaration provide that the procedures contained in these Specific Annexes
shall be governed, insofar as applicable, by the provisions of the General Annex. The
Guidelines to these Specific Annexes explicitly refer to the provisions on lodging and
checking or registering of the declaration contained in Standard 3.25.

3.1.11 In the application of the provisions mentioned in 3.1.10 and for the purpose of
these Guidelines, the initial export Goods declaration should be lodged by the
exporter or his agent to Customs prior to the goods being loaded onto the means of
transport or the container being used for their exportation. Alternatively, in particular
in the case of an integrated Customs control chain, the importer should lodge the
initial import Goods declaration where possible prior to the goods being loaded onto
the means of transport or the container being used for their exportation, otherwise
prior to arrival in the country of import. As far as the initial cargo declaration is
concerned, the carrier or his agent should lodge the cargo declaration in advance. In
no case should the initial declaration be required earlier than the time established for
the initial export or import Goods declaration. The exact timing at which the Goods
and Cargo declarations have to be lodged with the Customs administration at either
export or import should be defined by national law after careful analysis of the
business processes applicable for the different modes of transport and after
consultation with the business sector and other Customs administrations concerned.
Customs should provide equal access to simplified arrangements to authorized
economic operators regardless of the mode of transport.

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3.1.12 Standard 3.11 of the RKC provides that the contents of the Goods declaration
shall be prescribed by the Customs. For the purpose of standard and harmonized
Customs data requirements at import and export, the WCO has developed the WCO
Data Model, which provides global standards for structured, harmonized,
standardized and reusable sets of data definitions and electronic messages to meet
operational and legal requirements of cross-border regulatory agencies, including
Customs, which are responsible for border management. The Data Model also
defines the electronic message formats for relevant Cargo and Goods declarations.
The WCO Data Model includes the data necessary for Customs and cross-border
regulatory agencies control and risk assessment purposes.

3.1.13 Standard 7.4 of the General Annex to the RKC requires that new or revised
national legislation shall provide for the right of the Customs to retain information for
their own use and, as appropriate, to exchange such information with other Customs
administrations and all other legally approved parties by electronic means. Standard
6.7 further provides that Customs shall seek to co-operate with other Customs
administrations and seek to conclude mutual administrative assistance agreements to
enhance Customs control.

3.1.14 In analogy to Standard 8 of the Specific Annex E.1 of the RKC the Customs at
the office of departure should take all necessary action to enable the office of
destination to identify the consignment and to detect any unauthorized interference.
In addition the Customs administrations at departure and destination should agree to
use an electronic messaging system to routinely exchange Customs data, in
particular control results and arrival notifications, for high-risk consignments.

3.2 Export Goods Declaration

3.2.1 The exporter or his agent submits an initial export Goods declaration with the
particulars from Annex V specified for the exporter to the Customs at export prior to
the goods being loaded onto the means of transport or the container being used for
their exportation. In cases where the initial export Goods declaration is also used as
the initial declaration by the carrier, the exporter has also to include the particulars
from Annex V specified for the carrier into the initial export Goods declaration. In
those cases the exporter has to provide a copy of the initial export Goods declaration
to the carrier. The initial export goods declaration may have to be followed-up by a
complementary declaration for other purposes such as the collection of trade
statistics at a later stage as stipulated in national law. (see also Annex I).

3.2.2 Customs should release the goods for export as described in 3.1.9.

3.2.3 In an Authorised Supply Chain, the export Goods declaration (either full or
simplified) could fulfil simultaneously the role of the simplified import Goods
declaration. In such a scenario the Customs administrations concerned could either
require the exporter to submit a copy of the export Goods declaration to the Customs
administration at import or the Customs administrations concerned would share this
information by electronic means using a UCR as an access key. Where the Customs
administrations at export and import have online access to the commercial systems of
the authorized economic operator, the Customs administrations concerned may
agree to only require the provision of a UCR (see Annex II). The authorization for
such a procedure will provide for the legal liabilities of the exporter and the importer.

3.2.4 The initial export Goods declaration should be based on the WCO export data
set EX12 of the WCO Data Model and particulars specified from Annex V for the
exporter. The complementary export Goods declaration should be based on the

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specific WCO data set EX22 of the WCO Data Model. In case of an authorized
supply chain (see 3.2.3), where the export Goods declaration would fulfil also the role
of the simplified import Goods declaration, the Goods declaration should be based on
the specific WCO data set IM12 of the WCO Data Model.

3.3 Export Cargo Declaration

3.3.1 In those cases when export Goods declarations have been submitted by
exporters or their agent to the Customs at export covering all goods loaded onto the
means of transport used for their exportation and containing all the necessary
particulars from Annex V specified for the carrier, separate export Cargo declarations
should not be required, (see 3.2.1).

3.3.2. In all other cases the carrier or his agent should lodge an initial export
declaration with the particulars from Annex V specified for the carrier to the Customs
at export (or at import, dependent on the bilateral agreement establishing the
integrated Customs control chain) prior to departure from the place of loading of the
goods onto the means of transport leaving the country of export. The initial
declaration may have to be followed by the full cargo declaration at an agreed later
stage, if not already provided as part of the export Goods declaration and if this cargo
declaration contains any information not included on the initial declaration. Where
electronic systems, which allow the exchange of information between interested
parties (so called cargo community systems (CCS)), have been established at ports
or airports by the participants in the transport chain, Customs should consider
participating in such systems and receiving the data required for risk assessment
through these systems.

3.3.3 Customs should release the consignment for loading as described in 3.1.9.

3.3.4 Customs administrations at export and import should agree on a single data
set and electronic message for the export and import cargo declaration. In addition,
Customs administrations should agree that the carrier or his agent should submit the
cargo declaration either to the Customs administration at export or the Customs
administration at import and that the Customs administrations concerned will share
the information by electronic means using a UCR as an access key (see also Annex
II). In an Authorized Supply Chain these agreements should be included as a matter
of course.

3.3.5 The export Cargo declaration should be based on the WCO cargo report
export data set CRE of the WCO Data Model and particulars from Annex V specified
for the carrier.

3.4 Import Cargo Declaration

3.4.1 Subject to 3.3.4, the carrier or his agent submits an initial import declaration to
the Customs at import prior to arrival of the means of transport eventually followed by
the full cargo declaration at an agreed later stage, if not already provided as part of
the import Goods declaration and if this cargo declaration contains any information
not included on the initial declaration. Where cargo community systems (CCS) have
been established at ports and airports by the participants in the transport chain,
Customs should consider participating in such systems and receiving the data
required for risk assessment through these systems.

3.4.2 According to Standard 17 of Specific Annex A.1 to the RKC the

commencement of unloading shall be permitted as soon as possible after the arrival
of the means of transport at the place of unloading (discharge). Customs should
release the consignment for unloading as described in 3.1.9.

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3.4.3 As mentioned in 3.3.4. Customs administrations should agree on a single data

set and electronic message for the export and the import cargo declaration. On the
basis of such agreements Customs at import will have received already either an
initial declaration or a copy of the initial export Cargo declaration either from the
carrier or the Customs administration at export (see 3.2.1 and 3.3.2), in which case
no need exists for submitting an import Cargo declaration.

3.4.4 The Import Cargo declaration should be based on the WCO cargo report
import data set CRI of the WCO Data Model and particulars from Annex V specified
for the carrier.

3.5 Import Goods Declaration

3.5.1 The importer or his agent submits either a full or an initial/simplified Goods
declaration to the Customs prior to arrival of the means of transport. For the initial
Goods declaration see 3.1.7. and for the simplified Goods declaration see 3.1.5.
3.5.2 In an Authorized Supply Chain the Customs at import will already have
received the export Goods declaration and should use this as the simplified import
Goods declaration. The authorization for such a procedure will provide for the legal
liabilities of the exporter and the importer. The importer or his agent would have to
submit the complementary import Goods declaration (see 3.1.5 and 3.2.3.).

3.5.3 The full import Goods declaration shall be based on the WCO import data set
IM1 of the WCO Data Model. For the simplified procedure the importer (exporter, in
case of the integrated transaction) submits a simplified Goods declaration based on
the specific WCO data set IM12 and the complementary Goods declaration based on
the specific WCO data set IM22 of the WCO Data Model.

3.6 Customs-to-Customs notifications

3.6.1 As part of the integrated Customs control chain as well as the Authorized
Supply Chain and as stipulated in international instruments on mutual administrative
assistance, Customs administrations along the supply chain may consider the routine
Customs-to-Customs data exchange, in particular for high risk consignments. Such
an electronic messaging system could include the exchange of notifications about the
export transaction including the control results as well as a corresponding arrival
notification. Instead of active data exchange, the Customs administrations concerned
could also offer restricted online access to the relevant data using a UCR as the
access key (see also Annex I).

3.6.2 The WCO Globally Networked Customs (GNC)6 with its legal tool box and
associated specific business related utility blocks (UBs) provides a standardized way
for Customs-to-Customs (C2C) information exchange.

4. Data privacy and data protection

4.1 The exchange of data across international borders either among Customs
administrations or by the private sector as requested by Customs should be initiated
only after consultation between the countries concerned about the necessary data
privacy and data protection.

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4.2 Data privacy and data protection legislation has been enacted in many
countries in recent years in order to protect the individual's right to privacy but also to
protect the right of trade to confidentiality and to allow individuals to have access to
their own personal data held on computer in order to verify its accuracy.

4.3 This legislation can vary from country to country. However, there is a large
degree of commonality of provisions of such legislation. Data privacy and data
protection legislation typically requires that personal as well as commercial data
undergoing automated (computer) processing :

- should be granted at least the same level of such protection and

confidentiality as that provided under the domestic law and legal system of the
Customs administration that provided the data;
- should be obtained and processed fairly and lawfully;
- should be stored for legitimate purposes and not used in any way
incompatible with those purposes;
- should not disclose the information or documents without the specific written
permission of the Customs administration that provided the data;
- should be adequate, relevant and not excessive in relation to the purposes for
which they are stored;
- should be accurate and, where necessary, kept up to date;
- should be preserved in a form which permits identification of the data subjects
for no longer than is required for the purposes for which that data is stored.

4.4 Such legislation also usually incorporates provisions concerning the right of
access by data subjects to their own personal data. There may also be provisions
regarding disclosure of personal or commercial data to other parties, and about
transmission of such data across national borders and beyond the jurisdiction of the
country in which it was collected.

4.5 It is clear from the above that the existence of such legislation may well have
an impact on a traders or carriers ability to capture personal and commercial details
pertaining to a commercial transaction and to transmit this data to a foreign
government. However, it is also clear that the nature of the data and the use to which
it is put, should conform to the national law of most countries. The long-term
archiving of goods and cargo declarations on computer media and the use of such
data for purposes other than national security or cargo clearance may pose problems
in certain countries.

5. Mutual Recognition of AEO programmes

5.1 For several years, the WCO and Customs administrations have been working
to enhance the security of international supply chains while providing increased
facilitation for authorised economic operators. The WCO SAFE Framework of
Standards to Secure and Facilitate Global Trade encourages Customs
administrations to agree on the mutual recognition (MR) of AEO and security
measures. Mutual recognition of AEO status is a key element to strengthen end-to-
end security of supply chain and to multiply benefits for traders. Mutual Recognition is
a broad concept embedded within the SAFE FoS, whereby two countries conclude an
agreement or arrangement to mutually recognize AEO authorizations that has been
properly granted by one Customs administration. Furthermore, the SAFE FoS calls
upon Customs Administrations to work together to develop processes for MR of AEO
validations and authorizations, Customs security control standards and control results
to eliminate or reduce duplication of effort.

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5.2 Mutual recognition entails that one Customs administration :

- recognises the AEO authorisation issued under the other programme; and
- agrees to provide substantial, comparable and, where possible, the following
reciprocal benefits/facilitations to the mutually recognised AEOs.

Content of an MRA

5.3 The text of an MRA would typically contain the following essential parts: It
states the compatibility of the two AEO programmes, enumerates the reciprocal
benefits to be granted, as precise as possible. It contains the data that is subject to
the automatic data exchange and data protection rules. Furthermore, it contains
procedural rules, including rules on the unilateral suspension of benefits.

(See also the WCO MRA Strategy Guide including the MRA Implementation
Guidance (http://www.wcoomd.org/en/topics/facilitation/instrument-and-
tools/tools/aeo-mra-strategy-guide.aspx) for more detailed information)

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6. Data pipeline

6.1 Despite the consensus on the importance of supply chain security, lack of
common approaches and coordinated actions impact progress. Customs
administrations are actively working with establishing newer and more sophisticated
security certifications (e.g. Authorized Economic Operator) as well as supporting the
development of scanning equipment to detect illegal shipments or duties/tax frauds.
On the other hand, the traders may perceive these initiatives as bureaucratic resulting
in excessive and costly paperwork, as well as delays at the borders because of the
necessary cargo scanning and screening. To make things even more complicated,
global traders have to deal with a plethora of different security certifications required
in different countries/jurisdictions. Nevertheless, appropriate supply chain visibility is
in the interest of all stakeholders; for business to prevent security and cargo incidents,
for consumers to fulfill their demands on the products, and for government authorities
to improve their enforcement task to contribute to the safety and security of society
and the fiscal and non-fiscal integrity of cross-border movements of goods.

6.2 The data pipeline is a concept that proofs how protecting and securing the
Global Supply Chain, and reducing its vulnerability to disruption (whether caused by
natural disasters, terrorism or other forms of undesirable or illegal activity), can be
done in an integrated manner, while guaranteeing the promotion of a timely and
efficient flow of legitimate commerce around the world. Sharing and reusing data from
the source by all actors along the supply chain can help in the implementation of the
ISCM concept, thus offering tangible benefits to involved stakeholders (transaction,
transport, regulatory and financial operators).

6.3 The data pipeline concept is a forward looking new supply chain information
exchange mechanism, by which business and government benefit in equal ways. A
schematic diagram representing the current Customs and international trade systems
and the data pipeline concept is set out at Annex VI.

7. IT systems

7.1 The system of advance transmission of information to Customs requires the

use of computerized Customs systems including the use of electronic exchange of
information at export and at import.

7.2 Standards 7.1, 6.9, 3.21 and 3.18 of the General Annex to the RKC require
Customs to apply information and communication technologies (ICT) for Customs
operations, including the use of e-commerce technologies. For this purpose, the
WCO has prepared detailed Guidelines for the application of automation for Customs.
These Kyoto ICT Guidelines should be referred to for the development of new or
enhancement of existing Customs ICT systems.

7.3 The ICT Guidelines also recommend the possibility to audit traders’
commercial systems and to use them to satisfy Customs requirements. In particular
in the context of the Authorized Supply Chain, the possibility for Customs to have
online access to the commercial systems of the parties involved would provide
enhanced access to authentic information and offer the possibility for far-reaching
simplified procedures. Another example is cargo community systems (CCS) where in
ports or airports all parties involved in the transport chain have established an
electronic system by which they exchange all relevant cargo and transport related
data. Provided that these systems contain the necessary particulars for Customs
purposes, Customs should consider to participate in such systems and to extract the
data required for their purposes (see Annex II).

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7.4 The Kyoto Convention ICT Guidelines recommend to Customs to offer more
than one solution for the electronic exchange of information. While EDI using the
international standard UN/EDIFACT is still one of the preferred interchange options,
Customs should also look at other options such as XML. Depending on the risks
involved even the use of e-mail and telefax could provide a suitable solution.

7.5 The WCO Data Model supports the use of both XML and EDIFACT message
formats to exchange Customs and other cross-border regulatory data requirements.
The EDIFACT implementation of the WCO Data Model is based on the UN/EDIFACT
message GOVCBR7 (Government Cross Border Regulatory). The XML
implementation of the WCO DM is based on the WCO XML Schema guidelines. The
WCO Data Model adopts a loosely coupled relationship between the semantic layer
of the WCO Data Model (i.e. the information model) and the message format layer,
thus guarantees that both EDIFACT – GOVCBR and XML message format would
carry the same information consistently.

7.6 The information in the WCO Data Model is arranged based on Information
Package concepts, a hierarchical organization of information based on specific
context of business process or procedures in where the information is used. There
are four Base Information Packages (BIPs) that categorize Customs related
information based on its characteristics, namely:

- Declaration BIP, the basis for constructing business to government (B2G)

electronic messages, inter alia Customs Declaration, including import, export
and transit declaration, Cargo report, including cargo report import and cargo
report export, Advance Electronic Information and Advance Passenger
Information.
- Response BIP, the basis for constructing government to business (G2B)
electronic messages.
- INTERGOV BIP, the basis for constructing government to government (G2G –
Intergovernmental) electronic messages, such as regional exchange of
common Customs declaration dataset, transit interconnectivity, and Trader /
AEO Master data exchange.
- LPCO BIP, the basis for constructing Licenses, Permits, Certificates and
Others, inter-alia, e-certificate for sanitary and phythosanitary of agricultural
products, e-certificate for veterinary, e-certificate for endangered species
(CITES) and e-certificate for food safety.

7.7 The use of ICT in general and electronic exchange of information over IT
systems in particular requires a detailed ICT security strategy. ICT Security therefore
has to be seen as an integral part of any Customs supply chain security strategy. To
arrive at an effective and efficient IT security strategy, Customs have to undertake a
rigorous risk assessment.

7.8 One essential ICT security element for a supply chain security strategy is
related to digital signatures. Digital signatures, or Public Key Infrastructure (PKI)
arrangements, can play an important role in securing the electronic exchange of
information. The integrated Customs control chain as described in chapter 3 of the
Guidelines includes the possibility that a trader can submit his declarations in
advance to both the Customs administration at export and to the Customs
administration at import. It would be beneficial, if authorized economic operator
regimes as referred to in these Guidelines would also include provisions for digital
certificates. This would allow the authorized trader to sign all electronic messages to

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those Customs administrations having accepted to recognize this certificate. This
cross-border recognition of digital certificates can help increase security but at the
same time provide significant facilitation and simplification for the trader.

7.9 The Kyoto ICT Guidelines outline ways in which a comprehensive ICT security
strategy can ensure the availability, integrity and confidentiality of the information and
IT systems and the information they handle, including, for example, the avoidance of
repudiation at origin or receipt. There are many ways to implement ICT security, for
which purpose reference is made to the Kyoto ICT Guidelines.

7.10 The WCO’s ‘Digital Customs’ agenda: “A Strategic Approach to Support

ICT-enabled Customs and Cross-Border Regulatory Reform through WCO Tools,
Instruments, and Guidelines” provides a cohesive and sustainable approach to the
maximum use of ICT in Customs and border regulatory processes, thus enhancing
their efficiency and effectiveness.

8. Projects/Pilots

8.1 The ISCM concept related projects/pilots and initiatives are outlined in Annex
VII.

9. References

 International Convention on the Simplification and Harmonization of Customs

Procedures as amended in 1999 (Revised Kyoto Convention), WCO, 1999,
including the Guidelines for implementation
 WCO Guidelines on legal basis for advance exchange of Customs data,
WCO, 2003
 WCO Customs-Business Partnership Guidance, WCO, 2014
 WCO Kyoto Convention Guidelines on Information and Communication
Technology (Kyoto ICT Guidelines), WCO, 2014
 WCO Recommendation on the Unique Consignment Reference (UCR), WCO,
2001
 WCO UCR accompanying Guidelines, WCO, 2003
 WCO model bilateral agreement
 WCO Data Model

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 ISCM Guidelines

Annex I – Customs Control Activity Diagram – normal electronic procedure with G2G option
(1) Initial Export Goods declaration from
the exporter or his agent to Customs at
export (see 3.2)
(2) Initial declaration from carrier to
Customs at export, eventually followed
by the full cargo declaration (see 3.3)
(3) Cargo Declaration to the Customs
en route, if applicable
(4) Initial declaration from carrier to
Customs at import, if not covered under
(2) (see 3.3 and 3.4)
(5) Initial Import Goods declaration from
the importer or his agent to Customs at
import prior to arrival (see 3.5)
(6) Based on bilateral/multilateral
arrangements Customs at export and
import may exchange or allow access to
departure or arrival information using a
UCR. (see 1.5 and 3.6)
(7) Based on bilateral/multilateral
arrangements Customs at export and
import may agree on and exchange
common risk profiles to enable risk
assessment for security and other
purposes to be carried out only once. (see
1.4)

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Annex II – Authorized Supply

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 The

(1) authorized exporter or importer

or their designated recognized agent
submits a simplified Export/Import
Goods declaration to either Customs at
export or import to obtain pre-release. In
case of online access to the traders
system the Goods declaration is
replaced by a UCR allowing Customs to
retrieve the information required. (see
1.7, 3.1.4, 3.2.2
and 3.5.2)
(2) The carrier, which has to be a
secure carrier, submits an initial
declaration to the Customs at export or
import and to the Customs en route. In
case of online access to his own system
or to a CCS, the cargo declaration is
replaced by the UCR. (see 1.7, 3.1.4
and 3.3.4)
(3) Based on bilateral/multilateral
arrangements Customs at export,
import and en route may exchange or
allow access to departure or arrival
information for control purposes. (see
1.5 and 3.6)
 ISCM Guidelines ISCM

Annex II – Authorized Supply

Annex III – Global Supply Chain model – Order – with UCR

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23.
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Annex IV – Global Supply Chain model – Ship

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 Annex V : Data elements necessary for risk assessment

The chart shows the data

Data Element to be included in the Initial Export Goods elements necessary for risk
declarations Data elements to be included in the initial declaration of assessment split by reporting
the carrier at export or import party using a Unique
Consignment Reference (UCR)
R020Consignor - name as the binding link enabling
R021Consignor, coded single submission of
R031Exporter - name L009 L010 Place
R012 ofR011
loading
159 information. The data elements
R032Exporter, coded 152 Place of loading, coded Carrier identification Carrier - name
137Description of goods 227 Equipment identification number Equipment size and type identification mentioned have specific
Number of seals
145Commodity Classification T005 T014 Identification
149 conditionalities
of means of transport crossing the border Nationality of means attached
of transport crossing tocoded Conveyance reference num
the border,
146Total number of packages 098 Transport charges method of payment, coded Office of exit, coded
141Type of packages identification, coded G005 064 Country(ies ) of routing, coded First port of arrival, coded them depending on the
144Number of packages 085 Date and time of arrival at first port of arrival in Customs circumstances and the mode of
CDTMeasure Unit. Code 172
131Total gross weight territory 016
transport. Some data elements
109Total invoice amount should be reported as early as
135Currency, coded R012Carrier identification R011Carrier - name possible in the supply chain,
159Equipment identification number
152Equipment size and type identification but are not always available at
227Number of seals the early stages in the
064Country(ies ) of routing, coded R014Consignee name
R015Consignee, coded transaction. In addition some
R037Importer - name UCR information can change en
R038Importer, coded
R045Notify party
route. This results in data
R046Notify party, coded elements to appear in both
44ADelivery destination lists. However, the individual
R003Agent - name
R004Agent, coded conditionality for each data
016UCR element will ensure, as far as
possible, that information is

Customs at Export, Import or en route

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Specific details on each of the following necessary data elements for risk assessment in
relation to message implementation, conditionalities, data representation, code values and
structures are provided in the WCO Data Model.

WCO ID Name 3.7.0 Definition 3.7.0

R020 Consignor - name Name of the party consigning goods as stipulated in the
transport contract by the party ordering transport
R021 Consignor, coded To identify the party consigning goods as stipulated in the
transport contract by the party ordering transport
R031 Exporter - name Name of the person who makes - or on whose behalf - the
export declaration - is made - and who is the owner of the
goods or has similar right of disposal over them at the
time when the declaration is accepted
R032 Exporter, coded To identify the party who makes , or on whose behalf the
export declaration is made, and who is the owner of the
goods or has similar rights of disposal over them at the
time when the declaration is accepted
137 Description of Plain language description of the nature of a goods item
goods sufficient to identify it for cross- border regulatory purposes
such as customs, phytosanitary, statistical or transport.
145 Commodity The non-commercial categorization of a commodity by a
Classification standard-setting organization
146 Total number of Count of total number of packages of the entire
packages declaration/ consignment
141 Type of packages Code specifying the type of package of an item
identification,
coded
144 Number of Number of individual items packaged in such a way that
packages they cannot be divided without first undoing the packing
CDT Measure Unit. Measure Unit. Code
Code
131 Total gross weight Weight (mass) of goods including packaging but excluding
the carrier's equipment for a document
109 Total invoice Total of all invoice amounts declared in a single
amount declaration
135 Currency, coded Code specifying a monetary unit or currency
L009 Place of loading Name of a seaport, airport, freight terminal, rail station or
other place at which goods are loaded onto the means
of transport being used for their carriage
L010 Place of loading, To identify a seaport, airport, freight terminal, rail station or
coded other place at which goods are loaded onto the means of
transport being used for their carriage
R012 Carrier To identify a party providing the transport of goods
identification between named points
R011 Carrier - name Name of party providing the transport of goods between
named points
159 Equipment Marks (letters and/or numbers) which identify equipment
identification e.g. unit load device
number
152 Equipment size Code specifying the characteristics, i.e. size and type of a
and type piece of transport equipment
identification
227 Number of seals To specify the number of seals affixed

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 ISCM
T005 Identification of Name to identify the means of transport used in crossing
means of transport the border
crossing the border
T014 Nationality of Nationality of the active means of transport used in
means of transport crossing the border, coded
crossing the
border, coded
149 Conveyance To identify a journey of a means of transport, for example
reference number voyage number, flight number, trip number
098 Transport charges Code specifying the payment method for transport charges
method of
payment, coded
G005 Office of exit, To identify the regulatory office at which the goods leave
coded or are intended to leave the customs territory of despatch
064 Country(ies ) of Identification of a country through which goods or
routing, coded passengers are routed between the country of original
departure and final destination
085 First port of arrival, To identify the first arrival location. This would be a port for
coded sea, airport for air and border post for land crossing
172 Date and time of Date and time / scheduled date and time of arrival of
arrival at first port means of transport at (for air) first airport, (land) arrival at
of arrival in first border post and (sea) arrival at first port, coded
Customs territory
R014 Consignee name Name of party to which goods are consigned
R015 Consignee, coded Identifier of party to which goods are consigned
R037 Importer - name Name of party who makes -or on whose behalf a
Customs clearing agent or other authorized person makes
- an import declaration. This may include a person who
has possession of the goods or to whom the goods are
consigned
R038 Importer, coded Identifier of party who makes - or on whose behalf a
Customs clearing agent or other authorised person makes
- an import declaration. This may include a person who
has possession of the goods or to whom the goods are
consigned
R045 Notify party Name of party to be notified
R046 Notify party, coded Identification of a party to be notified
44A DeliveryDestination DeliveryDestination
R003 Agent - name Name of a party authorised to act on behalf of another
party
R004 Agent, coded Identification of a party authorised to act on behalf of
another party
016 UCR Unique number assigned to goods being subject to cross
border transactions

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Annex VI Data Pipeline Concept

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Customs can use the information that is exchanged and reused in the data pipeline by using
a so-called Customs dashboard. This provides access to all source and original supply chain
information that is being used in the commercial trade lanes. So instead of having merely
declaration data available, of which the source is not known any further than the person who
lodged that declaration, the dashboard provides full insights in the transaction and transport
event details. This dashboard does not only provide more information, but there is a lower
risk from inaccurate data because the latter is available from the source. These data can be
used to enhance risk management and to better detect legitimate flows. Another dashboard
is the business dashboard. This dashboard provides access to participating stakeholders to a
level to which the owner of the information allows. App technology (e.g., Application
Programming Interface (API)) even can be put in place, to complete Customs or any other
government formalities, by direct feed in of data of the data pipeline into declarations.

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ANNEX VII : Projects/Pilots

1. SSTL

A. The SSTL project8 is the first international proof of concept test of the WCO SAFE
Framework of Standards. It aims at combining more security with facilitation of low
risk consignments.

B. Security has now become an integral part of Customs day to day work. For Customs
the SAFE Framework is beneficial as their limited interventions in low risk trade lanes
free up scarce resources to deal with consignments presenting higher risks.

C. This project is, therefore, mainly about testing whether practical application of the
WCO SAFE Framework contributes to further trade facilitation. The project started in
2006 with China, the Netherlands and the United Kingdom participating. It has
entered into the third phase in 2014 after a joint conclusion, on the basis of an
evaluation of the second phase that the concept of the SAFE framework works in
practice and brings benefits both to participating Customs Administrations and
companies.

D. In this project, the participating EU member states exchange data with the P.R. China
and Hong Kong China. For the goods exported from the country of export, a set of 23
key data elements will be sent to the Customs authority of the importing country.
Importing country will perform risk analysis and may send a control request to the
exporting country to perform control of the goods on behalf of the importing country.
Exporting country will perform control of the goods and send control results to the
importing country. Once the goods arrive to the importing country, and if there is a
decision to control the goods, control results will be sent to the exporting country. The
exchange platform used is the WCO CenComm system. For the future use, a new
developed automated exchange platform could be developed with direct upload of the
data elements of the export declaration and transport manifest data.

E. The SSTL project is about minimizing administrative burdens in respect of

international supply chains by introducing an end-to-end control mechanism based on
one time submission of data. As far as business partners in the project are
concerned, the project focuses in first instance on granting tangible benefits to
participating Authorized Economic Operators.

F. The smart and secure trade lanes will be subject to innovative new Customs control
mixes that allow consignments to flow with no - or with least possible - interventions
in the logistical process, thus resulting in immediate release/clearance in the country
of destination of consignments concerned. This contributes to better predictability of
delivery times for business partners and less dwelling time in ports.

G. Within the EU, some SSTL benefits are already available for traders complying with
legal requirements regarding safety and security (pre-departure declarations, pre-
departure risk assessment, being an AEO and thereby entitled to use AEO benefits,
the wide usage of simplified Customs procedures), but the SSTL approach adds new
elements to enhance Customs controls and, therefore, support further facilitation. The
fact that high quality data will be available, joint risk rules are in place and controls will
be mutually recognized, will allow immediate release of consignments.

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H. The project focuses on maritime containerized cargo and has recently been extended
to rail and air modes.

Essential elements

The project demonstrates a number of key concepts of the ISCM :

 Data quality will be ensured by collecting standardized data sets as much as

possible from the “source transaction”, aiming at one time submission of data;
 These data will be shared between Customs administrations involved in the
control of the consignment concerned, supplemented with any logistical data
not known at the moment of agreeing the “source transaction”;
 Joint risk management rules will lead to a one time Customs control; if
physical controls are needed, they will occur as early as possible in the
logistical process, preferably at the moment of stuffing the container;
 Mutual recognition of controls will ensure that controls carried out need not be
repeated;
 Customs will co-operate closely with all Government Agencies involved in the
control of cross border goods movements (coordinated border management,
preferably with Customs as lead agency to determine place and time of any
required controls) to ensure one stop shop approaches;
 Authorized Economic Operator programs will be the key to deriving benefits,
mainly by reducing time required for Customs clearance and logistical follow
up in the country of destination;

2. CORE-project

2.1 The CORE project (Consistently Optimised Resilient Ecosystem)9 is being executed
under the responsibility of the European Commission. The focus is on three main
goals, all contributing to a higher standard of integrity of data and of goods :

- To promote the safety and security of the entire supply chain, through
standardization, harmonisation and mutual recognition;

- A worldwide available visibility of risks in safety and security, and also risks in
supply chain, and their impact on logistical movements all over the world; and

- To present an optimised, innovative supply chain solution, which can offer robust
and resilient chains that are capable in coping with major disruptions, caused by
high impact events.
2.2 The project consists of 23 work packages, in which more than 70 participating parties
are active. A large part of these work packages are focussing on development of
concepts in logistics and supply chains, the other part is focussing on demonstrating
those concepts in pilots. The key concepts such as the data pipeline, container
security devices, coordinated border management and trade facilitation are being
explored and tested.

2.3 The outcomes of the project are expected to help the European Customs
administrations in developing further policies that are in balance with the public and
private interests, within reasonable judicial limitations.

9
http://www.coreproject.eu/

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3. Unified File Format (UFF) development

3.1 Dutch Customs Administration (DCA) started in 2014 with the centralised reading of
X-Ray images at the Port of Rotterdam. At the Maasvlakte region, five Cargo
scanning systems were installed in 2014, delivered by different suppliers. At that
moment suppliers delivered scan images in their own specific format. This format
could not be read by other suppliers which lead to an inefficient and ineffective
situation.

3.2 To solve this problem DCA created a central server. All suppliers now deliver their
scan images to this server in an agreed format. In the central server, the original
images are converted to a unified file format (UFF). After the conversion, the images
are randomly sent to generic analysing work stations where they can be analysed
with one analysing viewer. With this solution the process of analysing scan images
can be done with less officers and the integrity is better secured because officers
cannot choose their own images.

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3.3 Since 2015, the WCO Technology Expert Group (TEG) with participation of
representatives from Customs Administrations and NII equipment suppliers is working
on this project from point of view to developing global standards :

 To allow interoperability of the different NII equipment bought from different

manufacturers;
 To allow exchange of images within and between Customs Administrations;
 To allow development of a data base of library of images – a more long term
goal; and
 To assist in training of the image analysts.

3.4 The UFF project involves three phases:

Phase 1: Demonstrate the possibility of analysing scan images from one supplier
with the analysing viewer from another supplier.

Phase 2: creation of a cloud based virtual demonstrator application. Customs

Administrations can volunteer to be part of Phase 2 virtual pilot. In this
phase, a scan image from, for example, a Rapiscan scanner can be
uploaded including the necessary meta data to the virtual demonstrator
application. The image will be converted with the UFF viewer and can be
analysed with any other type of analysing viewer.

Phase 3: Generic delivery of images by the NII equipment manufacturers and the
expansion of images created by cargo scanners to other scanners like
baggage scanners, body scanners etc.

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 WORLD CUSTOMS ORGANIZATION
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Web Site: http://www.wcoomd.org E-
mail: [email protected]

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Copyright © 2019 World Customs Organization.
All rights reserved. Requests and inquiries concerning translation,
reproduction and adaptation rights should be addressed to
[email protected]
D/2019/0448/14