The WCO Permanent Technical Committee is meeting virtually for the first time, due to the COVID-19 pandemic. One of the agenda items is the “Role of Customs in Mitigating the Effects of the COVID-19 Pandemic” and IFCBA Secretary Carol West has provided the following comments on behalf of the IFCBA to encourage the continuation of Customs-Business Partnership arrangements and consultation during this difficult time.
The IFCBA (International Federation of Customs Brokers Associations) congratulates and thanks the World Customs Organization for its leadership in response to the COVID-19 pandemic. Although the nature of the pandemic has meant that different regions of the world have been affected in different ways and at different times, customs brokers from all parts of the world have appreciated the timely response of the WCO in providing information that has been key to expediting the movement of essential goods across borders, and to facilitating trade in general. For example, an initiative which has been of particular importance to our members has been the advice provided on HS classification. In addition, and in agreement with comments from other private sector representatives, we fully support the use of electronic processes and single window solutions, not only during these extraordinary circumstances, but as a good practice generally.
We are aware that, in addition to managing the physical movement of goods, Customs administrations have a role to play in supporting business during COVID-19. The ability for businesses to generate or sustain revenue is generally declining, which means that many businesses will fail during this time, and many of those will be small to medium enterprises. Strategies may include waiver or deferral of duties, taxes and fees; decisions about interest charges and time frames; implementation of clear business continuity and trade recovery plans and consultation with stakeholders in the private sector.
IFCBA has always promoted meaningful consultation between the private sector and Customs administrations, and other government agencies which regulate goods at borders. We believe that the WCO Customs-Business Partnership Guidance is a useful tool which should be revisited to ensure that it remains useful to members during a crisis of this magnitude, with its health implications for citizens and economic implications for countries. We sense that, given the fear and uncertainty associated with the pandemic, some governments may have had pressure to make decisions urgently, with the result that existing consultative processes may not have been fully used. In other cases, there may not have been consultation because processes have not yet been put in place.
Input from the private sector is essential as governments consider and analyze options to manage this crisis. It is essential as governments set priorities for action and position national economies for business recovery, and a return to financial stability and prosperity. Decisions need to be taken, they need to be the right decisions, and they need to reflect input and support from the private sector. A failure to collaborate with the private sector on solutions /actions/priorities can result in unintended consequences and/or a failure to reach the intended outcomes as a result of a lack of understanding regarding operational realities. This is a global pandemic, with global financial implications, and national and international businesses and associations are ready to support the WCO and its members.
Comments on your country’s experience during the pandemic and economic recovery are appreciated. Please send your comments to [email protected] and [email protected].