China Customs Modernization: Capacity Building Session 2
April 26, 2004.

Since every single international shipment of goods is subject to Customs control and processing at the time of import and export, Customs is uniquely positioned to successfully co-ordinate, consolidate and simplify border-related regulatory formalities on behalf of all government stakeholders. Moreover, it is the only government agency capable of successfully responding to the need to facilitate trade while at the same time collecting all revenue due and protecting society from a range of social and national security threats. Consequently, Customs workload is dramatically influenced by external factors associated with trade growth, transaction pattern, constantly changing smuggling patterns, growing global threats of terrorism and crime, and technological change.

 Committing appropriate resources to undertaking practical capacity building initiatives in Customs therefore represents a sound and cost-effective economic investment for governments and donor organizations, and that is especially true for China Customs. The globalization and continued growth in the level of international trade; the heightened international awareness (and quantification) of the costs associated with complying with border formalities; the ever increasing FDI in modern logistics, inventory control, manufacturing and information systems, all lead to increased expectation for Customs to provide prompt and predictable processing of imports and exports. Between 2001 and 2004, China has shifted its rank from the world's 6th largest economy to the 3rd largest one measured by foreign trade volume. In 2004 particularly, China's import and export, for the first time, exceeded USD 1 trillion. 

The event aimed to assist the modernization efforts of China Customs with the knowledge and experience shared by U.S. Customs. More than 50 officers from China Customs attended the one-week discussion.

Syllabus

Module 1: Compliance Overview

• Customs Organization in US;
• Why Modernize;
• History of Trade in the US 1900's-2000's;
• Customs Multi-layered Approach;
• Changing Environment;
• RESULT: Voluntary Compliance System;
• US Customs Modernization Act;
• Trade Outreach;
• Partnerships.

Module 2: U.S. Customs Automation

• US Customs Experience;
• ACS, ACE, and ITDS;
• Define the Requirements;
• Industry’s Input Role;
• Implementation.

Module 3: Risk Management and Compliance Measurement

• Characteristics of Risk;
• Goals of Risk Management;
• Risk Management Process;
• Collect Data and Information;
• Analyze and Assess Risk;
• Prescribe Action;
• Track and Report;
• Integrated Compliance System;
• Compliance Assessment.

Module 4: U.S. Customs Service Automated Tools

• Automated Commercial System (ACS);
• Tool Users;
• Customs Automated Port Profiling System - CAPPS;
• Entry Summary Findings Analysis System - ESFAS;
• Issue Management System - IMS;
• Macro Analysis and Trending System - MATS;
• Trend Analysis and Analytical Selectivity Program - TAASP.

Module 5: Analytical Development

• Statistical Definitions;
• Regression Analysis;
• Uncertain Decision Making;
• Targeting vs. Analysis;
• Analysis of Risk Management;
• Analytical Tools.

Module 6: Compliance Measurement

• Entry Processes;
• Trade Compliance Management;
• Compliance Management History;
• Compliance Management Basics;
• Compliance Management Specifics;
• Compliance Management Results;
• Compliance Measurement Data;
• Analyst Role.

Module 7: Focused Assessment

• Focused Assessment Concepts;
• Internal Control Concepts;
• Advantage of good internal control TO the COMPANY;
• Advantage of good internal control TO CUSTOMS;
• Pre-Assessment Survey (PAS);
• Assessment Compliance Testing (ACT);
• Conclusion and Reporting;
• Follow-up;
• Importer Self-Assessment (ISA);
• New Direction of Audit.

Module 8: Customs External Audit

• Definition;
• Rationale;
• Basic Processes and US Experience;
• Primary Focus Industries;
• Import-related Records;
• 10 Accounts - A “MUST” to review.

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