ASEAN Workshop on Post Clearance Audit:Increase the Effectiveness of PCA throughCustoms and Tax CooperationJakarta, 1st – 3rd October 2019&nbsp;BackgroundWith regard to the international trade, it is no doubt that Customs administrations face significant challenges in balancing their responsibilities for collecting revenue, protecting national borders, and facilitating trade. Consequently, Customs administrations increasingly look into risk management as a means of implementing customs procedures and controls and allocating scarce sources more effectively. In modern international trade, deadlines are tight. Import and export companies need to get their goods to their customers as quickly as possible. So, an efficient and effective way of managing Customs control is important for the economic well-being of the country. For the modern Customs administration, this priority must be balanced with the apparently competing priority of revenue assurance and the protection of society from harmful imports. Transferring revenue assurance controls away from the border to traders’ premises is the most effective way to reconcile these priorities. Therefore, Post Clearance Audit could be one of the alternative solutions. By Implementing Post Clearance Audit, there are benefits as follows:a.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Post clearance control means that the trader takes responsibility for ensuring the highest levels of compliance. Thus, the countries make better use of their resources and gain better revenue assurance.b.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The clearance process become faster and there is certainty of landed cost.c.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There is a smooth and timely clearance of goods which encourages investment leading to economic growth. Meanwhile, PCA become more effective doing its part by cooperation with Tax Authority/Tax Agency. By supporting any data from tax authorities, PCA become more comprehensive such as:a.&nbsp;&nbsp;&nbsp;&nbsp;More comprehensive in examining the financial and non-financial reportb.&nbsp;&nbsp;&nbsp;&nbsp;Means of detecting irregularitiesc.&nbsp;&nbsp;&nbsp;&nbsp;Means of targeting auditeed.&nbsp;&nbsp;&nbsp;&nbsp;Detecting Transfer Pricing As far as known, World Customs Organization (WCO) had released WCO Revenue Packages Phase II in 2015 regarding falling revenue returns in the context of the global financial crisis and declining duty rates with challenges to strengthen Customs capacity to collect duties legally. They comprise initiatives or tools for reducing revenue risks and the revenue gap, such as mirror analysis and undervaluation of textiles in Italia, Technical Guidelines on Advance Rulings for Classification, Origin, and Valuation, and Customs Valuation and Transfer Pricing. <img src="http://klc2.kemenkeu.go.id/image/2021/4/8/1617872285076hjh/1.jpg"> <img src="http://klc2.kemenkeu.go.id/image/2021/4/8/1617872294292fsz/2.jpg"> Experts and materials1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Heru Hardjanto (DGCE PCA Expert) was presenting “Background and Benefit of PCA and Legal and Operational Framework for PCA”.2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Agus Triono (Head of Section of Audit Execution II of DGCE) was presenting “Strategic Planning and Risk Management and Targeting Auditee and Preparation of Audit”.3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Donny Indrawan (DGCE PCA Expert) was presenting “Professional Standards for Auditors, Quality Management and Liaison with Other/Foreign Customs Unit or Tax Department, and PCA and Customs Regimes and Procedures”.4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tunjung Sri Rahayu (DGCE PCA Expert) was presenting “Audit Reporting and Post PCA Activities”.5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nugroho Wahyu Widodo (Adviser to Director General of Customs and Excise for Customs Control and Law Enforcement Affairs) and Bagus Ariyanto (DGCE PCA Expert) were presenting “Customs and Tax Cooperation and Joint Analysis”.6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dwi Astuti (Deputy Director of International Taxation for International Tax Dispute Prevention and Settlement) was presenting “Transfer Pricing”.&nbsp;ParticipantsThe participating countries were Indonesia, Brunei Darussalam, Cambodia, Lao PDR, Malaysia, Myanmar, Philippines, and Singapore&nbsp;Short description of the materials1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Background and Benefit of PCA By implementing PCA, customs administrations can derive benefits as follows, 1. Compliant trade is facilitated at the point of customs clearance as border controls can be reduced; 2. Enable customs to gain better information on and understanding of clients’ businesses; 3. Risk levels can be more easily assessed and reviewed; 4. Facilitate clients’ education, long term, and comprehensive compliance management focus; 5. Customs administrations’ resources are more effectively deployed; 6. Customs can promote the concept of voluntarily compliance and self-assessment; 7. Suspected fraudulent activities may be identified and referred to enforcement unit for appropriate action; and 8. Provides a platform for evaluating continued entitlement to AEO status, where applicable. Legal and Operational Framework for PCATo facilitate PCA, it is necessary to implement legislation which provides customs with the legal basis to conduct an audit and also sets out the rights and obligations of the auditee. Each customs administration will develop laws and regulations based on national requirements or, if a customs union exists, at a regional level. PCA scope and coverage should be clearly defined in customs laws and regulations. All businesses involved in the import and/or export of goods or in the receipt, storage, manufacture, and delivery of goods subject to customs control may be audited. 2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Strategic Planning and Risk Management Strategic planning and risk management are crucial for PCA to answer the challenges and limitations faced by customs. The number of import and export are continuously increasing, but the resource of customs is very limited. The WCO suggest the model of risk management as follows <img src="http://klc2.kemenkeu.go.id/image/2021/4/8/1617872481661sev/3.png"> Targeting Auditee and Preparation of AuditThe process of preparation of audit can be describe in below image. <img src="http://klc2.kemenkeu.go.id/image/2021/4/8/1617872516692bmb/4.png"> 1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Professional Standards for Auditors The professional standards for auditors cover the ethical standards for auditors (From WCO) and general standards for customs officials in the respective administration. The ethical standards include integrity, confidentiality, equity/impartiality, and professional competence, due care, and diligence. Quality ManagementQuality management should be a part of PCA management system. It should be integrated in the same way as risk management. It helps audit team to achieve consistency and improve their internal process. Quality management covers the process of quality planning, control, assurance, and improvement. The key elements are leadership and direction, human resource management, audit management, relation with traders and stakeholders, and continuous improvement. Liaison with Other/Foreign Customs Unit or Tax DepartmentPCA is not a standalone system but one function of customs organization optimally linked to other relevant functions. PCA and Customs Regimes and ProceduresCustoms auditors should use system-based audit techniques to assess the effectiveness of the process and identify the risks and weaknesses in the internal control, which are relevant to the regimes in question. Audit helps traders to improve their customs related process so they become more increasingly responsible for their own compliance. A customs auditor must always ensure that he/she first acquires an overview and knowledge of the business system before undertaking regime-specific questioning. 2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Audit Reporting and Post PCA Activities Audit report have to be written after audit is finished and sent to the parties. Audit report should include scope and purpose of the audit, a statement that audit has been conducted accordingly with audit standards, and conclusions and recommendations. Audit Directorate/Department should conduct monitoring, evaluation, and quality assurance once an audit in finished. The scopes are follows up of audit report (monitoring), conformity of PCA with audit provisions (evaluation), and assuring that all provisions have been met in all stages of PCA (QA). 3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Customs and Tax Cooperation and Joint AnalysisThe WCO had issued a guideline concerning strengthening cooperation and the exchanging of information between customs and tax authorities in national level. Joint customs and tax activities may potentially include joint risk profiling/analysis, joint investigation/examination, joint identification of measures and their application in the fight against duty/tax offences and transnational crime, joint audit, coordination of control/compliance activities within free zone, coordination and conduct joint control, coordination on transfer pricing, joint research, joint training/workshop, and secondment program. Cooperation is needed because customs and tax have the same taxpayer, customs and tax have the data, and customs and tax have the sliced business process. 4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Transfer PricingTransfer pricing is the amount charged for internal sales of goods and services between the divisions of a business enterprise. Transfer pricing can deprive governments of their fair share of taxes from global corporations and expose multinationals to possible double taxation. No country wants its tax base to suffer because of transfer pricing. Concerted effort between customs and tax authority is imperative to mitigate such risks. Emphasis on shared goals and objectives and tackling common challenges.&nbsp;Key takeaways1.&nbsp;&nbsp;&nbsp;&nbsp;There is a heightened potential risk of customs offences, tax evasions, and tax avoidances with the increase in number of cross border trade, especially within multinational companies and through e-commerce.2.&nbsp;&nbsp;&nbsp;&nbsp;Concerted effort between customs and tax authority is imperative to mitigate such risks. Despite competing tensions, customs and tax authorities are actually faced with similar problem.3.&nbsp;&nbsp;&nbsp;&nbsp;Success factors of customs and tax cooperation are trust, commitment, communication, and data/information sharing.4.&nbsp;&nbsp;&nbsp;&nbsp;A community of practices, consists of the workshop participants and resource persons established after the workshop as a media of communication and coordination ahead.&nbsp;Recommendations1.&nbsp;&nbsp;&nbsp;&nbsp;The workshop recommends ASEAN Member States to:a.&nbsp;&nbsp;&nbsp;&nbsp;Strengthen the efficiency of the existing PCA organization and method;b.&nbsp;&nbsp;&nbsp;&nbsp;Explore new method on PCA using the benefits of IT and international best practices;c.&nbsp;&nbsp;&nbsp;&nbsp;Enhance the knowledge of PCA through trainings and workshops;d.&nbsp;&nbsp;&nbsp;&nbsp;Ensure compliance of stakeholders by continuous improvement of services;e.&nbsp;&nbsp;&nbsp;&nbsp;Encourage cooperation between customs and other government units, especially tax authority. 2.&nbsp;&nbsp;&nbsp;&nbsp;The workshop recommends to include cooperation between customs and tax authorities in the Strategic Planning for Customs Development on PCA. 3.&nbsp;&nbsp;&nbsp;&nbsp;Indonesian Customs and Excise Education and Training Center is open and observable to be appointed to organize capacity building activities mainly on customs enforcement related subject.

ASEAN Workshop on Post Clearance Audit: Increase the Effectiveness of PCA through

CUSTOMS COLLAGE:&nbsp;CUSTOMS COLLABORATION BEYOND THE EDGE SERIES“WEBINAR ON TRADE FACILITATION AND THE ROLES OF CUSTOMS”&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;BACKGROUND&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Covid-19 pandemic has caused not only global health crisis but also great disruption in the international trade order. In the supply side, the lockdown and work from home policy stimulated a reduction need of workforce in production activity. This policy also requires the government to close not only seaports but also airports. As a result, the distribution of goods between countries will be burden. Furthermore, the problems become more complex because many countries implement the export restriction to protect their domestics supplies. On the other hand, in the demand side, the consumption preferences is also changed due to Covid-19. This changes also caused a mismatch between supply and demand.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There is no sign that the economic instability, characterized by economic crises that occur alternately in various parts of the world, will end immediately. The world economic order is fragile and vulnerable to issues. Inter-connection between economies becomes a factor that quicken the spread of this crises. This problem becomes a challenge that faced by customs administration around the world.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In accordance with its duties and functions, the customs administration is an institution that is responsible at state borders. The customs administration also responsible for the smoothness of the world trade. In addition, as the effort to improve the world economy, customs administration ensures the smooth process of trade between countries and provides stimulus and facilities to the business world, importers and exporters through his duties as a world trade facilitator. Providing convenience to the business world is also believed to be very important in times of crisis. B.&nbsp;IMPLEMENTATION<img src="http://klc2.kemenkeu.go.id/image/2021/3/12/1615540569621bhn/1.png"> <img src="http://klc2.kemenkeu.go.id/image/2021/3/12/1615540706159mtv/2.png">C.&nbsp;EVALUATIONThe result of the webinar performance evaluastion based on the questtionaire is provided in the table below: <img src="http://klc2.kemenkeu.go.id/image/2021/3/12/1615540966939oew/3.png"> D.&nbsp;LESSON LEARNEDBased on the information and explanations given by the speakers, in order to make supervision and provision of trade facilitation in balance, customs administration can use new innovations in the implementation of border services and surveillance through: 1.&nbsp;&nbsp;&nbsp;&nbsp;A system-based approach in the management assessment process service user risk,2.&nbsp;&nbsp;&nbsp;&nbsp;Coordinated Border Management (CBM), such as carrying out a single window, providing place for integrated examination, and developing collaboration between agencies who has authority at the border3.&nbsp;&nbsp;&nbsp;&nbsp;Shifting supervision beyond borders, such as allowing physical inspection of goods in importer's warehouses. At last but not least, this report is arranged as an accountability for the implementation of the Webinar on Trade activities Facilitation and the Roles of Customs. We would like to thank to all participants, speakers and all team that support this webinar.

WEBINAR ON TRADE FACILITATION AND THE ROLES OF CUSTOMS

Asia Pacific Workshop on Coordinated Border Management Against Transnational Organized CrimeJakarta, 13th – 15th August 2019&nbsp;BackgroundThreats of transnational organized crimes are emerging and evolving at an astonishing rate in the last decade, from the proliferation of psychoactive substances to cybercrime. These crimes threaten human life and safety, contribute to environmental destruction and inequalities, and undermine the rule of law. Transnational organized crime is an increasingly destabilizing influence and a direct challenge to the 2030 Agenda and Sustainable Development Goals. The latest report from United Nations Office of Drugs and Crime Regional Office for Southeast Asia and the Pacific illustrated that the situation is worsening in the region. The growth in methamphetamine production and trafficking have reached unprecedented and dangerous level in the past few years. Profits have grown massively as organized crime groups have synthetized the drug market, consolidated production, and innovated their business model. Heroin trafficking remains a problem, and other forms of transnational organized crime are also growing, including the trade in counterfeit goods and medicines, trafficking and smuggling of people, and trafficking of wildlife and timber. At the same time, the region’s rapidly expanding network of casinos has emerged as a perfect partner for organized crime groups that need to launder large volumes of illicit money. To build sustainable peace, security, and developments, Indonesian Customs and Excise Education and Training Center (Pusdiklat BC) is committed to actively raising its roles in the development of human resource quality and competence, not only for Indonesian customs officers, but also for customs officers in the Asia Pacific region.&nbsp; <img src="http://klc2.kemenkeu.go.id/image/2021/4/8/1617872795083ool/1.jpg"> <img src="http://klc2.kemenkeu.go.id/image/2021/4/8/1617872803605ogq/2.jpg"> Experts and materials1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Jim McColm (Program Manager of the WCO Security Program) was presenting Security Global Threat, Global Threat and Challenge on Transnational Organized Crime (STCE, SALW), Understanding Customs Role and Advance Customs Tools Against Transnational Organized Crime, The Use of Airlines Data for Pre-Arrival Risk Assessment, and Coordinated Border Management to Combat Transnational Organized Crime.2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Collie Brown (Country Manager of United Nations Office of Drugs and Crime-Indonesia Office) was presenting Global Threat and Challenge on Transnational Organized Crime (Drug).3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rob Buchan (Director of Indonesia Program of Australian Financial Intelligence Unit) and Eko Susilo (Analyst at Indonesian Financial Intelligence Unit) were presenting Regional Collaboration and Innovative Approaches to be More Effective in Countering Transnational Organized Crimes Financing.4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Yohanes Genius Putu Sanjaya (Analyst at Directorate of Enforcement and Investigation of Directorate General of Customs and Excise of Indonesia (DGCE)) and Grand Commissioner Adjutant Didi Novi (Indonesia National Police, Anti-Terrorism Detachment) were presenting Regional Collaboration and Innovative Approaches to counter Terrorism.5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Takayuki Fukushima (Senior Targeting Specialist of Japan Customs and Tariff Bureau) was presenting The Use of API PNR for Combating TOC.6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Junanto Kurniawan (Head of Narcotics Section at DGCE) was presenting DGCE’s Actions to Combat Drugs Smuggler. <img src="http://klc2.kemenkeu.go.id/image/2021/4/8/1617872862012izy/3.jpg"> <img src="http://klc2.kemenkeu.go.id/image/2021/4/8/1617872867451xsl/4.jpg"> ParticipantsThe participating countries were Indonesia, Bangladesh, Cambodia, Japan, Malaysia, Maldives, Papua New Guinea, Philippines, Sri Lanka, and Timor Leste. <img src="http://klc2.kemenkeu.go.id/image/2021/4/8/1617872916409psp/5.jpg"> <img src="http://klc2.kemenkeu.go.id/image/2021/4/8/1617872925652zxn/6.jpg"> Short description of the materials1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Security Global ThreatViolent extremism and their message of intolerance (religious, social, cultural) has had drastic consequences for many regions of the world. Holding territory and using social media for real time communication of their atrocious crimes, they seek to challenge our shared values of peace, justice, and human dignity. The threats were ranging from foreign terrorist fighters, small arms and light weapons, improvised explosive devices, strategic goods, terrorist finance, and maritime piracy. To combat those threats, WCO launched the WCO Security Program, which covers Passenger Controls Using API/PNR, Program Global Shield, STCE Program, SALW Project, and Terrorist Financing Counter Measures. 2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Global Threat and Challenge on TOC (STCE)The objectives of STCE program are to raise awareness of illicit trade in strategic/dual use commodities, to assist customs administration to implement effective strategic trade controls, and enable members to comply with international responsibilities. The international legal frameworks for strategic trade control comprise treaties, sanctions, and informal multilateral arrangements. The WCO defines strategic goods as weapons of mass destruction, conventional weapons, and related items involved in the development, production, or use of such weapons and their delivery systems. Global Threat and Challenge on TOC (SALW)Small arms and light weapons which were legal in certain countries can be misused by the criminal and terrorist groups. SALW have a life cycle so that a legal SALW can turn illegal, once it fell to the wrong parties. The potential intervention by law enforcement agencies can be done through strict licensing of gun user and registration of gun, global arms trade treaty, stockpile management, global brokering treaty, and application of UN principles on use of force and firearms. Customs can contribute to the combat against SALW through sustainable train the trainers events, procurement of technical equipment, backscatter x-ray, and joint customs operation. 3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Global Threat and Challenge on Transnational Organized Crime (Drug)Displacement of organized crime has led to a massive expansion of methamphetamine production and trafficking. To respond to the threat, certain measures are needed, namely Asia Pacific leadership dialogue is crucial, development of comprehensive and functional strategy to address transnational crime, strengthening national and regional data collection capacity and reporting, minimize disparities in capacity gaps and improve cross-border cooperation, and specific recommendations made for each transnational crime. 4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Understanding Customs Role and Advance Customs Tools Against Transnational Organized CrimeProtect society, public health and safety, and contribute to combating crime and terrorism is the 3rd WCO strategic goal. To enable this goal, WCO came up with the Compliance and Enforcement Package. The WCO detects the high-risk areas for customs enforcement are revenue, security, IPR, health and safety, drugs, environment, and emerging risks. The WCO developed risk management compendium, post-clearance audit guidelines, risk area specific tools, and compendium of customs operational practices for enforcement and seizures as tools to address the risk. Besides that, there are networks and technologies utilized in the form RILOs, CEN, nCEN, CENcomm, CTS, IPM, and IRIS. And the most important thing, customs build partnership with business, other customs agencies, other border agencies, and international partners. 5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Regional Collaboration and Innovative Approaches to be More Effective in Countering Transnational Organized Crimes FinancingDriven by new technologies and the increase in people movement, money flows has increased by 240% in the past ten years. Regional collaboration is needed because there are many challenges detected, such as high passenger numbers, high declaration thresholds, mixing of legitimate and illegitimate funds in cross border movement (CBM), non-compliance passenger, porous border, and CBM enforcement varies.Emerging high risk corridors where we need to do more, including enhanced collection and capacity building, more collaboration between FIUs and partner agencies, intelligence led targeting, and community engagement. 6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Regional Collaboration and Innovative Approaches to counter TerrorismSoutheast Asian countries face the terrorist network which are now having intense activities including creating relationship with international and regional network. To address those threat, DGCE applies cyber security management, which include the methods of follow the goods, follow the money, follow the transporter, follow the bad guy, and conducting analysis based on those data. DGCE develops a system called Passenger Risk Management to assist with targeting suspected passenger. 7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Use of Airlines Data for Pre-Arrival Risk AssessmentWCO introduces the Global Travel Assessment System (GTAS), which is an open-source web application for improving global security by using industry standard advance passenger information and passenger name record to screen commercial air traveler. GTAS is a free software tool for improving travel safety. The objectives of GTAS are to perform risk assessment on 100% of API/PNR received, to facilitate low risk travelers and focus attention to high-risk travelers, and allow analysts to create risk rules to screen for terrorism, contraband, duty and tax evasion, human trafficking, missing persons, overstayed visas, etc. 8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Use of API PNR for Combating TOCJapan Customs utilizes API and PNR for effective and efficient targeting for high-risk air passenger. Establishing passenger information unit (PIU) is important to conduct targeting. To utilize PNR, such measures are necessary, namely legal basis to obtain PNR from the airlines, secure and handle personal data properly, system to obtain PNR electronically, and close cooperation between airport customs and PIU. 9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;DGCE’s Actions to Combat Drugs SmugglerThe number of drugs abusers in Indonesia on 2017 was around 6 million people. Indonesia is the potential market for drugs syndicates because of the large number of abusers and the higher selling price of narcotics compared to other countries. DGCE as a border protector has a function in narcotics, psychotropic, and precursors law enforcement and import and export supervision. To address the issue, DGCE improves its analyzing system and drugs detection tools, develop human resources and K9 unit, conduct operations and multi-agency coordination. Besides that, DGCE is also conducting joint intelligence, joint control delivery, and joint law enforcement through a worldwide networking. 10.&nbsp;&nbsp;Coordinated Border Management to Combat Transnational Organized CrimeCoordinated border management is all about information sharing (as legal framework allowed) between officers, border and law enforcement agencies, and other customs organization. To apply CBM, customs must list functions where CBM can be used to combat TOC, list other government agencies customs can coordinate, describe how a CBM can work, and what information and infrastructure is required.&nbsp;Key takeaways1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The threat of TOC in Southeast Asia and Pacific is escalating.2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Customs must enhance communication, coordination, and collaboration to address the threat of TOC.3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The collaboration must be realized in both operational and strategic level of customs officers.4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A community of practices, consists of the workshop participants and resource persons established after the workshop as a concrete form of better communication and coordination ahead.&nbsp;Recommendations1.&nbsp;&nbsp;&nbsp;&nbsp;As customs shares responsibility to secure the border and the community with other law enforcement agencies, customs should contribute significantly in the holistic process, therefore customs must redefine its roles and functions.2.&nbsp;&nbsp;&nbsp;&nbsp;Customs must enhance cooperation with all stakeholders, both domestic and international to effectively combat transnational organized crimes. The cooperation is not only about information sharing but also intelligence and resources sharing, if possible. The cooperation can be initiated in the form of bilateral cooperation (i.e. coordinated joint operation) and multilateral cooperation afterwards.3.&nbsp;&nbsp;&nbsp;&nbsp;Customs should start to initiate a virtual border management (VBM) to support physical border management as a future of its coordinated border management. VBM is about the use of analysis of data from various sources, risk profiling, alert generation, selectivity, information exchange, and automation founded heavily on the advancement of information and communication technology for border control.4.&nbsp;&nbsp;&nbsp;&nbsp;The WCO must strengthen the use of WCO Customs Enforcement Network Application and other networks and technologies developed by WCO, therefore customs administrations must be encouraged to share their respective enforcement information to the application in a timely manner. The role of RILO is very important related with this recommendation.5.&nbsp;&nbsp;&nbsp;&nbsp;Capacity buildings in the area of customs enforcement are essential to enhance customs official’s capacity and capability to perform law enforcement at the border.6.&nbsp;&nbsp;&nbsp;&nbsp;Indonesian Customs and Excise Education and Training Center is open and observable to be appointed to organize capacity building activities on customs enforcement related subject.

Asia Pacific Workshop on Coordinated Border Management  Against Transnational Organized Crime

CUSTOMS COLLAGE: CUSTOMS COLLABORATION BEYOND THE EDGE“WEBINAR ON ESCALATING THREAT FROM TRANSNATIONAL ORGANIZED CRIMES AND HOW WE CAN COLLABORATE” A.&nbsp;BACKGROUND&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Crimes and terrorism challanges in the Asia Pacific region are multidimensional and crossed-national borders. The combination of threats posed by Transnational Organized Crime (TOC) in the manufacturing of illicit drugs, illicit drugs abused and trafficking, human trafficking, migrants smuggling, and environmental crimes such as the illegal timber trade, has been facilitated by ease of money laundering and a relatively weak border control framework. In addition, the TOC poses a significant and growing threat to national and international security, with extreme implications for public safety and health, democratic institutions and economic stability.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Directorate General of Customs and Excise (DGCE) and customs administrations in the world which have the authority to inspect trade in goods across national borders are one of the agencies who responsible for answering TOC problems. However, because this crime is transnational, the handling of TOC will be effective if all countries in the region have the same awareness and understanding. B.&nbsp;IMPLEMENTATION <img src="http://klc2.kemenkeu.go.id/image/2021/3/12/1615542461602wtx/table.png"> <img src="http://klc2.kemenkeu.go.id/image/2021/3/12/1615542586838mqo/table2.png"> C.&nbsp;EVALUATION&nbsp;The result of the webinar performance evaluastion based on the questtionaire is provided in the table below: <img src="http://klc2.kemenkeu.go.id/image/2021/3/12/1615542700944dqk/table3.png"> D.&nbsp;Lesson Learned&nbsp;To be able to face the TOC, countries need to do the following:1.&nbsp;&nbsp;To develop a comprehensive and functional strategy, by seeing TOC as something that is connected to one another,2.&nbsp;&nbsp;Strengthen data collection capacity and reporting mechanisms, both domestically and across nations,3.&nbsp;&nbsp;Minimize capacity gaps and increasing cooperation between nations (sharing intelligence information, joint law enforcement operations, 	etc.), and4.&nbsp;&nbsp;Pay special attention to certain types of TOC. At last but not least, this report is arranged as an accountability for the implementation of the Webinar on “Escalating Threat from Transnational Organized Crimes and How We Can Collaborate”. We would like to thank to all participants, speakers and all team that support this webinar. <img src="http://klc2.kemenkeu.go.id/image/2021/3/12/1615542873966eqh/rtc.jpg">

WEBINAR ON ESCALATING THREAT FROM TRANSNATIONAL ORGANIZED CRIMES AND HOW WE CAN COLLABORATE

CUSTOMS COLLAGE: CUSTOMS COLLABORATION BEYOND THE EDGE “WEBINAR ON CAPACITY BUILDING AT THE TURNING POINT: CHALLENGE THE TRADITION OR EMBRACE TRANSFORMATIONS” &nbsp;&nbsp;A.&nbsp;Background&nbsp;Responding to changing of times challenges, in line with the rapid development of information and communication technology, Ministry of Finance is in the fifth phase of Bureaucratic Reform Program which began in 2019. In this phase, Ministry of Finance began to integrate initiative transformations into a more modern context by applying aspects of digitalization. Digital transformation is expected to improve business processes in order to increase service value and encourage the efficiency of existing business processes at the Ministry. Digital transformation has made Ministry of Finance start developing big data which will assist policy makers. In addition, with the automation of bussiness process, employees also have more time to do analytical work than administrative work.The digital transformation theme are also mandatory in capacity building activities at the Ministry of Finance. The administration needs an open access culture to information and knowledge in order to support knowledge sharing so that the process can be done effectively. Because learning happens in a complexity area that transcends geographical, organizational, cultural, and eternal boundaries, technology is required to make it effective and efficient. In conclusion, digital information and communication technology is needed to succeed this proccess. <img src="http://klc2.kemenkeu.go.id/image/2021/3/12/1615541399914wsq/1.jpg"> B.&nbsp;Implementation <img src="http://klc2.kemenkeu.go.id/image/2021/3/12/1615541719681nei/2.png"> C. Evaluation&nbsp;The result of the webinar performance evaluastion based on the questtionaire is provided in the table below: <img src="http://klc2.kemenkeu.go.id/image/2021/3/12/1615541849838lls/3.png"> D.&nbsp;Lesson Learned&nbsp;To maximize the effectiveness of capacity building activities implementation, ROCB A / P encourages the implementation of a 3-phase training approach, as follows: 1.&nbsp;&nbsp;&nbsp;&nbsp;preliminary e-learning before training (in the case of WCO, through WCO CliKC! platform),2.&nbsp;&nbsp;&nbsp;&nbsp;active participation in discussions during training, and3.&nbsp;&nbsp;&nbsp;&nbsp;follow-up activities, implementation at home administration upon participants’ return from training (action learning). The implementation is in the form of applying the acquired knowledge and sharing information related to training materials.&nbsp;&nbsp;At last but not least, this report is arranged as an accountability for the implementation of the Webinar “Capacity Building at the Turning Point: Challenge the Tradition or Embrace Transformation”. We would like to thank to all participants, speakers and all team that support this webinar.

WEBINAR ON CAPACITY BUILDING AT THE TURNING POINT: CHALLENGE THE TRADITION OR EMBRACE TRANSFORMATIONS

<img src="http://klc2.kemenkeu.go.id/image/2022/3/23/1648012631996wsy/picture1-ccbwg.jpg"> In pursuing the integration and harmonization of customs activities of ASEAN Member States, the Director General of Customs of respective ASEAN countries has formulated a Strategic Plan of Customs Development (SPCD). In realizing the specific activities of each SPCD, the ASEAN formed several working groups. The Indonesian Customs and Excise Education and Training Center (ICEETC) as Regional Training Center (RTC) for the Asia Pacific is part of the Customs Capacity Building Working Group (CCBWG), in which it holds regular meetings twice a year to coordinate the implementation of assigned SPCD. SPCD 11 on Customs Reform and Modernization, SPCD 12 on Human Resource Development and Administration, SPCD 13 on Narrowing the Development Gap in Customs, and SPCD 14 on Knowledge Management, are the four Strategic Plans for Customs Development (SPCDs) that the CCBWG is in charge of developing and monitoring. The last CCBWG meeting was held virtually from 15 to 17 March 2022. Assisted by the ASEAN Secretariat, Cambodia acted as a host in this thirtieth meeting. The meeting was chaired by Mr Oentarto Wibowo, Head of Regional Office of East Java II of the Directorate General of Customs and Excise of the Republic of Indonesia. In his welcoming remarks, he welcomed all the delegates of AMS as well as conveyed his gratitude to Cambodia and ASEAN Secretariat for hosting the meeting. This meeting was then opened by Mr Kong Sokphallakun, Deputy Director Finance and Personal Department, General Department of Customs and Excise of Cambodia. In his speech, he encouraged the AMS participants to use the meeting to discuss how to enhance cooperation between Customs administrations and ASEAN Dialogue Partners to better support regional economic integration. He also stated that although CCBWG has made satisfactory progress since the last meeting, there are still many works. Hence, he hoped that this meeting would provide fruitful guidance on how to proceed with the remaining agenda. In discussing SPCD 13 on Narrowing the Development Gap in Customs (NDG), Mr Yudhi as a representative for RTC Indonesia offered the Capacity Building Workshop on Information and Communication Technology (ICT) for Customs Automation and Single Window for CLMV. This workshop aims to increase the understanding of CLMV countries related to the development of ICT Customs administration and the implementation of Single Window; so that CLMV countries can fulfill commitments related to Trade Facilitation Arrangements and improve the position of the Ease of Doing Business index. In his presentation, Mr Yudhi explained that RTC Indonesia would design the relevant curriculum and cooperate with Indonesia National Single Window (INSW). <img src="http://klc2.kemenkeu.go.id/image/2022/3/23/1648012811997frb/picture2-ccbwg.jpg"> In addition, still discussing SPCD 13, Mr Yudhi stated that RTC Indonesia planned to conduct the Technical Training on Sea Patrol and Vessel Inspection from July 11 to August 1, 2022. Hosted by Pekanbaru Regional Financial Training Center, this meeting will be conducted in Bahasa. Hence, RTC Indonesia planned to invite Brunei Darussalam, Singapore, and Malaysia with a similar national language. This training’s objective is to increase knowledge, expertise, skills, and attitudes of the Customs authorities of AMS members in accomplishing supervisory and enforcement tasks, especially in the field of Patrol and Inspection of Sea Transport Facilities. <img src="http://klc2.kemenkeu.go.id/image/2022/3/23/1648012949679wuz/picture3-ccbwg.jpg"> The meeting also highlighted the 35th Meeting of the Coordinating Committee on Customs (CCC) regarding CCBWG. Regarding the SPCD 11, the meeting discussed the development of the framework of ASEAN Customs Integrity and the development of survey on the survey on customer satisfaction of the customs service in each respective ASEAN Customs Administration, and the Flowchart on ASEAN Customs Capacity Building Management. Meanwhile, regarding the SPCD 12, the meeting discussed the development and implementation of the training needs for AMS and the development of the Guideline for the ASEAN Customs Regional Expert Selection Process. Next, concerning the SPCD 13,&nbsp;the meeting discussed the checklist of compliance and suitability of CMLV with WTO Trade Facilitation Agreement (TFA) to formulate recommendations for adjustment and improvement. At last, regarding the SPCD 14,&nbsp;the meeting reviewed the arrangement for Knowledge Management utilization on the KBS website by AMS, the design curriculum of KM for AMS, and the draft survey of implementation of KM for CCBWG as the assessment tools for KM. Another agenda during the meeting was the discussion panel with Australia and Japan. During the discussion with Australia, the topic brought was the Joint Customs Middle Management Program (JCMMP) with Australia. The panelist discussed the result and lessons learned from the 5th JCMMP to ensure connectivity and sustainability of the future program. Next, the meeting with Japan brought the topic of technical assistance from Japan in the form of a Specialized training course on human resource development for ASEAN that is planned to be held on October-November 2022 in Japan. The next meeting, the 31st CCBWG Meeting, will be held tentatively on 20-22 September 2022 by Brunei Darussalam as a host. <img src="http://klc2.kemenkeu.go.id/image/2022/3/23/1648012982968wqh/picture4-ccbwg.jpg">

The 30th Meeting of Customs Capacity Building Working Group (CCBWG)

Customs Collage Series: Customs Collaboration Beyond The Edge 7th Series: “Webinar on Authorized Economic Operator (AEO) 2.0”&nbsp;Thursday, 19th August 2021, the Indonesian Customs and Excise Training Centre organized Customs Collage Series: Customs Collaboration Beyond The Edge 7th Series: Webinar on Authorized Economic Operator 2.0. Customs Collage: Customs Collaboration Beyond The Edge is a series of events intended to provide knowledge sharing, experience exchanges, and discussions among international customs administration. The Webinar was opened by the keynote remarks from the Head Office of Finance Education and Training Agency, Mr. Andin Hadiyanto. He hoped the Webinar could bridge the communication among related parties and improve their knowledge of the required skills to implement the AEO Program. The Webinar will address the changes of AEO programs in the light of COVID 19 and the future vision of AEO 2.0. <img src="http://klc2.kemenkeu.go.id/image/2021/9/20/1632128953360tje/picture1.jpg"> Mr. Askolani, The Director-General of DGCE Indonesia, conveyed the implementation of the AEO Program in Indonesia, wherein the beginning, there were only five exported companies involved in the AEO piloting program. Gradually in 2021, increasing to 138 with various companies involved exporter and importer, customs broker, carriers, and warehousing, and hopefully increased both quality and quantity in AEO Certified Companies.&nbsp;He shared some benefits as an AEO Certified Company, i.e., time and cost-saving, minimum documentary requirement, simplified customs procedures, and many more. Concerning more complexity in global supply chain security and the significant role of AEO, the Directorate General of Customs Excise is currently drafting significant changes to the ministry of finance regulation on AEO so that the benefit can be enjoyed not only for a large company but also micro, small and medium enterprises. The Resource Person, WCO Accredited Expert Ms. Asha Menon, shared her knowledge and experience in Authorized Economic Operators. In the first session, she started the discussion with the background of SAFE Frameworks to secure the supply chain based on the 9/11 tragedy, then continued with improving the SAFE Frome works of Standards. The discussion extended with an overview of the general AEO Conditions, International AEO Requirements, and accreditation procedures. She disclosed the benefits of implementing AOE for Customs and other government agencies.&nbsp;Besides that, AEO programs provided huge benefits for industries and countries, such as fast clearance time and cost savings at export and import processes.&nbsp;&nbsp;&nbsp; <img src="http://klc2.kemenkeu.go.id/image/2021/9/20/1632128973401gsu/picture2.jpg"> In the second Sessions, the discussion focused on the AEO 2.0. It revealed the background of the AEO 2.0 concept, where it initially came from a discussion at SAFE Working Group (SWG) in April 2019.&nbsp;In her speech, Ms. Asha Menon explained that the Implementation of AEO programs depends on each country. Consequently, AEO programs are not harmonized. Furthermore, She described the MRAs implementation by WCO Members and new initiatives related to AEO. She presented the new tools of the SAFE package 2021 that aim to support WCO Members and stakeholders in establishing, administering, monitoring and reporting the implementation&nbsp;of the WCO SAFE frameworks of Standards and AEO programs. In the end, she intended that implemented the AEO program properly and correctly has abundant benefits not only for customs organizations but also for other government agencies, the certified AEO Company itself even people as an individual. The Webinar of AEO was attended by the customs administration, other government agencies, private sectors, and also the public from Albania, Australia, Azerbaijan, Bhutan, Bolivia, Cambodia, Canada, Egypt, Fiji, Greece, Hong Kong-China, Japan, Korea,&nbsp;Malaysia, Maldives, Mongolia, Myanmar, New Zealand, Nigeria, Papua New Guinea, Philippines, St. Lucia, Singapore, Sri Lanka, Thailand, The Netherlands, UAE-Abu Dhabi, Uganda, Uni Arab Emirates, Indonesia.

Webinar on Authorized Economic Operator (AEO) 2.0

CUSTOMS COLLAGE: CUSTOMS COLLABORATION BEYOND THE EDGE“ASEAN WIDE WEBINAR ON CUSTOMS VALUATION AND TRANSFER PRICING”&nbsp;&nbsp;A.&nbsp;BACKGROUND &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ASEAN Member States (AMS) has built cooperation in relation to Customs Procedures and Trade Facilitation through a working group called the ASEAN Customs Procedures and Trade Facilitation Working Group (CPTFWG). CPTFWG has 7 Strategic Plans of Customs Development (SPCD), one of them is SPCD 2 regarding Customs Valuation in which Indonesia is the coordinator. In SPCD 2, Indonesia's strategy is to update the previous version of the ASEAN Customs Valuation Guide (ACVG) which has not been updated since it was first published in 2003. This updated ACVG will be used as the official customs valuation guide for AMS.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This webinar is an implementation to support the ACVG renewal. The topics that will be discussed in this webinar is not only introducing ACVG but also discussing other important issues related to the practice of WTO rules of customs valuation, which is transfer pricing. Transfer pricing has recently received an important spotlight in ASEAN countries. Although the policy for determining transfer pricing has been implemented by most AMSs, there are still loopholes especially for cross-border transactions.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In this webinar, participants are encouraged to share and discuss their experiences related to ACVG implementation and transfer pricing in their respective countries. <img src="http://klc2.kemenkeu.go.id/image/2021/3/12/1615542202589hnt/1.jpg"> B.&nbsp;IMPLEMENTATION <img src="http://klc2.kemenkeu.go.id/image/2021/3/12/1615544691343tqy/3.png"><img src="http://klc2.kemenkeu.go.id/image/2021/3/12/1615544662436jtl/total.png"> C.&nbsp;EVALUATION&nbsp;The result of the webinar performance evaluastion based on the questtionaire is provided in the table below: <img src="http://klc2.kemenkeu.go.id/image/2021/3/12/1615542560052dpc/2.png"> D. LESSON LEARNED&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dealing&nbsp;with transfer pricing practices, the OECD published the OECD TP Guidelines. This guideline is based on The Arm's Length Principal (ALP), in which the transfer price must be the same if two independent companies are transacting (not related to each other).&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The customs administration concerns in the transfer price because it determines the customs value and import duties that should be paid. TP differs from customs value, because TP examines prices at the aggregate level while customs values ??determine the price per transaction. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ABF makes a policy called transfer pricing valuation advice, which is an up-front research process to determine whether the price adjustment process related to TP is in accordance with the provisions related to customs value.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At last but not least, this report is arranged as an accountability for the implementation of the Webinar “Asean Wide Webinar on Customs Valuation and Transfer Pricing”. We would like to thank to all participants, speakers and all team that support this webinar.

ASEAN WIDE WEBINAR ON CUSTOMS VALUATION AND TRANSFER PRICING

CUSTOMS COLLAGE: CUSTOMS COLLABORATION BEYOND THE EDGE&nbsp;“WEBINAR ON CARGO TARGETING” &nbsp;A.&nbsp;BACKGROUND Criminal challenges, which is faced by customs administrations around the world, are increasing along with the development of information and communication technology. Crimes and terrorism challanges in Asia Pacific region are multidimensional and cross national borders. Increasing the effectiveness of risk assessments for passengers and cargo for exports and imports is a necessity. One way to do this is the implementation of Cargo Targeting System (CTS). CTS is an application technology developed by the World Customs Organization (WCO). CTS is used as an effective risk assessment tool for the import and export of cargo in high-risk transport vehicles. Directorate General of Customs and Excise (DGCE) and customs administrations in the world in general, which have the authority to inspect the cross-border trade in goods, need to continue improving their competence regarding risk assessment and targeting of high-risk cargo to fight transnational crime. <img src="http://klc2.kemenkeu.go.id/image/2021/3/15/1615798851993uhp/1.jpg"> B.&nbsp;IMPLEMENTATION <img src="http://klc2.kemenkeu.go.id/image/2021/3/15/1615799852735nqe/4.png"><img src="http://klc2.kemenkeu.go.id/image/2021/3/15/1615799869387rld/5.png"> C.&nbsp;EVALUATION&nbsp;The result of the webinar performance evaluastion based on the questtionaire is provided in the table below: <img src="http://klc2.kemenkeu.go.id/image/2021/3/15/1615799492669qeo/3.png"> D.&nbsp;LESSON LEARNED&nbsp;WCO Cargo Targeting System (CTS) is a risk management system that developed to assess the risk of goods shipment and selected shipments that need to be intervened, either through document research, technical inspection and specifications, or physical inspection of goods. The expected outcomes from the WCO CTS are as follows:a.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Customs administrations that adopt the WCO CTS can carry out a risk assessment of imported, exported and transit cargoes effectively and comprehensively; identify high-risk goods shipments and facilitate trade;b.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Make the utilization of customs&nbsp;human resources more effective and efficient &nbsp;At last but not least, this report is arranged as an accountability for the implementation of the “Webinar on Cargo Targeting”. We would like to thank to all participants, speakers and all team that support this webinar.