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World Customs Organisation - Background, Objectives | UPSC Notes

Last Updated on Jan 15, 2024
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World Customs Organisation is a very important organisation that simplifies international trade and customs procedures. The customs regulate duties and taxes on International Trade. Customs is an important border authority of a country. With the growth of global trade and controlling prohibited trades, the world faced challenges in border management. WCO was established as a solution to all these problems. WCO’s origin can be traced back to 1952, when the Customs Co-Operation Council was established.

International organizations fall under the syllabus of both preliminary and mains examination of UPSC as it is important for international relations. This article will provide you with all the relevant details about WCO from the point of the UPSC civil services examination.

What is World Customs Organisation?

World Customs Organization was founded in 1952 as the Customs Co-operation Council (CCC). It is an independent intergovernmental entity to improve the effectiveness and efficiency of Customs administrations. The WCO comprises 185 Customs administrations worldwide, collectively overseeing about 98% of global trade. Recognized as the global hub of Customs expertise, the WCO stands as the sole international organization with authority in Customs matters, rightfully earning its status as the voice of the international Customs community.

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Background of World Customs Organisation (WCO)

After the Second World War, a General Agreement on Tariffs and Trades was signed by 20 countries that were introduced to boost the economic recovery by minimizing barriers to international trade where it provided a method to lower the customs tariffs.

As a result, the GATT raised questions about the customs process, but no such organization was available to examine such issues on customs. To resolve such issues that GATT identified, thirteen European countries established a study group, which led to the decision to create an International Custom Organisation, today known as the World Customs Organisation (WCO). Historically, the WCO finds its roots in the 20th century.

What is the World Customs Organisation?

From the past till today the World Customs Organization has resolved issues related to implementing secure customs systems and procedures. The World Customs Organization has developed an International Standard Classification System for commodities, namely Harmonized Commodity Description and Coding system.

The World Customs Organisation today represents 184 members across the globe who are also known as the Customs administration. The members of the WCO collectively constitute 98% of world trade. The WCO is the only competent international organization that has the ability to solve issues related to Customs.

Is WCO part of the UN?

  • World Customs Organisation is an independent inter-governmental organization whose aim is to assist its members in facing the issues, challenges, and problems related to running a modern Customs administration.
  • WCO is an organization whose purpose is to implement customs systems and procedures whereas the UN is an organization whose purpose is to develop friendly relationships among different nations.

To know more about United Nations Principal Organs and its Affiliates, click on the link attached.

  • World Customs Organisation is a partner with UN agencies such as
    • International Atomic Energy Agency (IAEA),
    • International Civil Aviation Organisation (ICAO),
    • International Maritime Organisation (IMO),
    • International Narcotics Control Board (INCB),
    • United Nations Conference for Trade and Development (UNCTAD),
    • United Nations Counter-Terrorism Committee (UNCTC),
    • United Nations Educational,
    • Scientific and Cultural Organization (UNESCO),
    • United Nations Environment Programme (UNEP),
    • UN Statistics Division,
    • United Nations Office on Drugs and Crime (UNODC),
    • United Nations Office for the Coordination of Humanitarian Affairs (OCHA),
    • Universal Postal Union (UPU),
    • World Intellectual Property Organization (WIPO),
    • World Health Organization (WHO).

Therefore, we can say that the World Customs Organisation is a partner to the UN system where WCO cooperates with different UN agencies to fulfil their common goals.

Historical events related to the WCO

Year

Events Relevant to World Customs Organisation

1947

Study Group for European Customs Union was established in Brussels (which later on became WCO headquarters) after Customs issues were identified by the General Agreement on Tariffs and Trade (GATT)

1950

On December 15th the convention establishing the Customs Cooperation Council (CCC) was published.

1952

On November 4th, The CCC was created, when 17 signatory bodies accepted the convention.

1953

On January 26th the first session of the CCC council was held. This day is also celebrated annually as International Customs Day.

1994

The CCC adopted the name World Customs Regulation.

World Customs Organisation at Glance

The WCO was established in 1952 as the Customs Co-operation Council, an independent inter-governmental organization. The World Customs Organisation has 184 member states(customs administrations). The organization’s mission is to improve the effectiveness of the customs administrations. The table below gives relevant information about the World Customs Organisation(WCO).

Sr. No.

Title

Description

1.

Full form of WCO

World Customs Organisation

2.

Formation of WCO

1952

3.

Headquarters of WCO

Brussels, Belgium

4.

Members of WCO

184

5.

Secretary General of WCO

Mr. Kunio Mikuriya (since 1 January)

6.

Objectives of WCO

WCO’s Aim is to provide guidance, leadership, and support to its members.

Is India a member of WCO?

WCO has 184 members. They are divided into six regions given below:

India became the Regional Head (vice chair) of the Asia Pacific Region of WCO in July 2018 for two years i.e till June 2020 whereas India has been a member of the WCO since 1971.

Objectives of WCO

The World Customs Organisation tends to bring Customs administration together for better and safer trade practices by developing international standards that can help achieve cooperation and assistance for legitimate trade. The key objectives of WCO are as below:

  • Trade Facilitation
  • Revenue Collection
  • Protection of Society
  • Organizational Development

Some of the prior objectives as per the CCC (Customs Co-operation Council) conventions are:

  • To study all questions which are related to cooperation in Customs matters.
  • To look into the technical aspects of Customs with a vision to attain harmony and uniformity among members.
  • To help its members respond to the challenges in modern-day trade.

Legal Instrument – WCO

A legal instrument is a text that serves as a source to formally execute legally enforceable agreements, conventions, declarations, policies, resolutions, etc. Legal instruments used by WCO are

  • Conventions and Agreements: Various conventions and agreements are used by WCO as legal instruments. Some of them are The International Convention on the Harmonized Commodity Description and Coding System, the International Convention on Mutual Administrative Assistance in Customs matters (Johannesburg Convention), the Nairobi Convention, etc.
  • Recommendations: WCO uses various recommendations, such as Recommendations related to Compliance and Enforcement, Recommendations Related to Information Technologies, Recommendations Related to Procedures and Facilitation, and Recommendations Related to the Harmonized System as a legal instrument.
  • Declarations: Declarations by WCO are
    • Seoul Declaration (May 1984),
    • Brussels Declaration (June 1986),
    • Ottawa Declaration (June 1987),
    • Washington Declaration (July 1989),
    • MOU Declaration (June 1992),
    • The Revised Arusha Declaration(June 2003),
    • Budapest Declaration (June 1997),
    • Cyprus Declaration (June 2000),
    • Baku Declaration (June 2001),
    • Brussels Declaration (June 2003),
    • illegal wildlife trade (June 2014),
    • Luxor Declaration (December 2017),
    • Beijing Declaration (February 2018),
    • Declaration of the Customs Co-operation Council on Gender Equality and Diversity in Customs (December 2020).
  • Policies: The policy by the World customs organization is the Personal Data Protection Policy
  • Resolutions: Resolutions by WCO are as follows
    • Resolution of the Customs Co-operation Council on the role of Customs in facilitating the cross-border movement of situationally critical medicines and vaccines (December 2020).
    • Resolution of the Customs Co-operation Council on the Framework of Standards on Cross-Border E-Commerce (June 2018).
    • Resolution of the Policy Commission on the Guiding Principles for Cross-Border E-Commerce (December 2017).
    • Resolution of the Customs Co-operation Council on the Role of Customs in Preventing Illicit Trafficking of Cultural Objects (July 2016).
    • Punta Cana Resolution of the WCO Policy Commission on the role of Customs in security (December 2015).
    • Resolution of the Policy Commission on the Conclusion of an Agreement on Trade Facilitation by the World Trade Organization (December 2013).
    • Resolution of the Policy Commission on Air Cargo Security (December 2011).
    • Resolution of the Customs Co-operation Council on the Role of Customs in Natural Disaster Relief (June 2011).
    • Resolution of the Customs Co-operation Council on the Global Economic Downturn (June 2009).
    • Resolution of the Customs Co-operation Council on the Role of Customs in the 21st Century (June 2008).
    • Resolution of the Customs Co-operation Council on the Framework of Standards to Secure and Facilitate Global Trade (June 2006).
    • Resolution of the Customs Co-operation Council on the High-Level Strategic Group (June 2005).
    • Resolution of the Customs Co-operation Council on the Framework of Standards to Secure and Facilitate Global Trade (June 2005).
    • Resolution of the Customs Co-operation Council on global security and facilitation measures concerning the international trade supply chain (June 2004).
    • Resolution of the Customs Co-operation Council on Security and Facilitation of the International Trade Supply Chain (June 2002).
    • Resolution of the Customs Co-operation Council concerning the importance of intelligence in supporting Customs enforcement activity (June 1992).
    • Resolution of the Customs Co-operation Council concerning preventing illicit traffic in endangered species of wild fauna and flora (June 1991).
    • Resolution of the Customs Co-operation Council on introducing pre-entry classification information programs (June 1991).
    • Resolution of the Customs Co-operation Council encouraging members and customs or economic unions to become contracting parties to the United Nations Convention against illicit traffic of narcotic drugs and psychotropic substances (July 1989).
    • Resolution of the Customs Co-operation Council concerning the illicit traffic in narcotic drugs and psychotropic substances (July 1989).
    • Resolution of the Customs Co-operation Council concerning the mobilization of Members’ resources (June 1988).
    • Resolution of the Customs Co-operation Council encouraging members to adopt appropriate legislation to prevent offenders from profiting from their offenses (June 1987).
    • Resolution of the Customs Co-operation Council concerning action against smuggling of works of arts and antiquities (June 1976).
    • Resolution of the Customs Co-operation Council concerning preventing illicit traffic in narcotics, stimulants, and similar substances (June 1967).
  • WCO standard terms and conditions – Council Decision n° 331.

Conclusion

Customs is an authority in a country whose role is to manage the collection of tariffs and control the flow of goods; therefore, to simplify the trade process and customs procedure across the globe, the World Customs Organisation was established in 1952 in Brussels. India has been a member of this Organisation since 1971. The necessity to set up this Organisation was felt in 1947 when the General Agreement on Tariffs and Trade (GATT) raised questions about the procedure of negotiating customs and tariffs. Hence, to resolve the issues related to Customs, the WCO was introduced.

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World Customs Organisation (WCO) FAQs

The WCO was established in 1952 as the Customs Co-operation Council, an independent intergovernmental organization whose aim is to assist its members to face the issues, challenges, and problems related to running a modern Customs administration.

The organization’s mission is to improve the effectiveness of the customs administrations and to provide guidance, leadership, and support to its members.

World Customs Organisation is a partner to the UN system where WCO cooperates with different UN agencies to fulfill their common goals.

India became the Regional Head (vice chair) of the Asia Pacific Region of WCO for a period of two years WCO i.e from July 2018 to June 2020 whereas India has been a member of the WCO since 1971.

On January 26th the first session of the CCC council was held. This day is also celebrated annually as International Customs Day.
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