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Green Customs: More than a fad, an irreversible commitment to sustainability in international trade

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The environment: an essential dimension for life, well-being and development

La The Earth provides us with the basic natural resources we need to live (air, water, food, etc.) and thrive (energy, minerals, medicines, etc.). Our well-being depends on ecosystems and the services they provide, as well as on their sustainable use.

Sustainability: an irreversible objective

In 1987, the expression “Sustainable development” was used for the first time in the report “Our Common Future”, prepared by the United Nations (UN), to express the idea of ​​“satisfying current needs without compromising future ones”.

To achieve this goal, three major components of our well-being had to be taken into account: environment, economy and society. In 1992, the idea was incorporated into the Declaration on Environment and Development of the Rio de Janeiro Summit. From then on, society at a global level established the concepts of “sustainable development” and “sustainability”.

National and local governments, together with environmental associations, are developing awareness campaigns to achieve this. Today, we are continuing to move forward with a sustainable environmental horizon.

A healthy environment, whether natural or man-made, is essential for the life and development of communities. All the conditions of our immediate surroundings - environmental, social and economic - are therefore key to our lives, since our common well-being and prosperity depend on them. In turn, the environmental conditions of our immediate surroundings influence other parts of the world, and vice versa.

In the preamble to the 2030 Agenda, leaders of nations decide to protect the planet from degradation, including through sustainable consumption and production, by managing its natural resources in a balanced manner and by taking urgent measures on climate change, so that it can meet the needs of present and future generations.

Following the adoption of the 2015 Agenda for Sustainable Development and its 2030 Sustainable Development Goals (SDGs) in September 17, Customs administrations responded by committing to work to make Sustainable Development an effective force for all citizens of the world.

In 2020, the WCO Secretariat chose the theme of sustainability, with the motto “Customs for sustainability for people, prosperity and the planet”. Mr Mikuriya announced the decision by stressing that “this topic is more topical than ever” and that 2019 had been “the year in which sustainability and climate change issues dominated the public debate”. Statements that remain relevant today.

The emergence of the term “Green Customs”

In recent years, the term “Green Customs” has become something of a buzzword in the speeches of leaders of organizations and governments. However, with the rise of this popularity comes the spread of superficial and misunderstood ideas about what it really means to implement Green Customs in the context of international trade. As someone who has already addressed this issue on other occasions, I feel that it is time to adopt the “Smooth Road Primer” – a practical and straightforward guide – to clarify what is really at stake.

The purpose of this article

This article aims not only to demystify the concept of Green Customs, but also to address in depth the essential role of customs, the private sector and the international organisations involved. In addition, I will criticise the growing tendency to treat the term as a passing fad, without a real commitment to sustainability and the actions needed to transform theory into practice.

What are Green Customs?

Green Customs represents a set of customs practices and policies designed to promote sustainability in international trade. In practice, this means that customs, traditionally focused on functions such as tax enforcement and collection, are beginning to incorporate environmental considerations into their daily operations.

The organizations involved

Implementing Green Customs is not something that can be done in isolation. It requires the coordination and commitment of various international organisations, national governments and, crucially, the private sector. Some of the key entities involved are highlighted below:

    1. United Nations Environment Program (UNEP): UNEP is a leading advocate for integrating sustainable practices into customs operations. In 2021, it launched the “Green Customs Guidance for Multilateral Environmental Agreements”, a document that provides practical guidelines for customs to adapt to contemporary environmental challenges. In addition, UNEP coordinates global efforts to protect the environment through multilateral agreements.
    2. World Customs Organization (WCO): The WCO plays a key role in standardising customs practices worldwide. It provides guidance on how customs can effectively implement AMEs, ensuring that environmental regulations are respected in international trade. The WCO also works closely with governments to promote the training of customs professionals on sustainability-related issues.
    3. INTERPOL: INTERPOL, known for its operations against organised crime, also plays an important role in Green Customs. The organisation works to prevent and combat illegal trade in products that threaten the environment, such as hazardous waste, substances that deplete the ozone layer and endangered species.
    4. United Nations Office on Drugs and Crime (UNODC): UNODC supports customs authorities in combating trafficking in substances and products that cause environmental damage. The organization promotes international cooperation and provides technical assistance to strengthen the enforcement of environmental laws.

The role of customs in the context of Green Customs

Customs have a central role in the implementation of Green Customs. Traditionally, customs focus on fiscal and security aspects, such as tax collection, protection against smuggling and facilitation of legitimate trade. However, as environmental awareness increases, customs are expanding their control to include environmental responsibilities.

Customs valuation: a new paradigm

One of the main challenges in implementing Green Customs is customs valuation with a focus on sustainability. Traditionally, customs valuation focuses on determining the economic value of a good for taxation purposes. However, in the Green Customs paradigm, this practice needs to be expanded to include the assessment of the environmental impact of products.

Cumulative rules of origin: sustainability and transparency

Another crucial aspect of Green Customs is the regulation of cumulative rules of origin. These rules determine the origin of products for preferential tariff treatment purposes, considering inputs from different countries. Under the Green Customs perspective, transparency and sustainability throughout the entire production chain become essential.

The role of the private sector

The private sector also has a key role to play in the implementation of Green Customs. Companies of all sizes are encouraged – and in some cases, required – to adopt sustainable practices in their operations and ensure that their products comply with international environmental regulations.

Criticism of the Green Customs fashion

This is not the first article I have written on this topic, but with so many misinformed opinions circulating, I feel it is necessary to go back to basics, to the “Smooth Road Primer”. Although the concept of Green Customs is essential and necessary, there is growing criticism that the term is becoming a fad on the lips of leaders of organizations and companies, more interested in showing virtue than in implementing real changes.

The danger of greenwashing in Green Customs

One of the biggest dangers that arises when the term “Green Customs” becomes a fad is greenwashing – the practice of companies or organisations adopting green rhetoric to appear more sustainable than they really are. This phenomenon not only damages the credibility of the companies involved, but also weakens the entire movement towards more sustainable international trade.

The need for concrete actions

For Green Customs to be more than a passing fad or an empty term, it is essential that it is accompanied by concrete actions. This means that customs must be truly equipped to implement sustainable practices, supported by appropriate infrastructure, ongoing training and the adoption of technologies that enable effective environmental enforcement.

The role of education and training

One of the main pillars for the success of Green Customs is the education and training of the professionals involved. Without a clear and in-depth understanding of what it means to operate in accordance with Green Customs standards, it will be difficult for customs and businesses to implement these practices effectively.

International collaboration: a collective effort

Green Customs cannot be implemented in isolation. They require international collaboration and a collective effort from all actors involved in global trade. National borders do not stop environmental problems, and therefore solutions must also be transnational.

The road ahead: transforming fashion into revolution

It is not enough to talk about Green Customs; action is needed. And that action must be guided by a clear understanding of the challenges and opportunities involved. This requires continued commitment and a willingness to confront the difficult realities that arise at the intersection of international trade and sustainability.

In conclusion: real commitment to sustainability

Green Customs has the potential to transform international trade, promoting more sustainable practices and protecting the environment. However, for this to happen, real commitment is needed, far beyond fads and empty speeches. It is essential that leaders of organizations, both in the public and private sectors, understand the complexity and seriousness of the Green Customs concept and are willing to implement the changes necessary to transform this vision into reality.

Customs Broker, with a degree in Economics and a Master in Business Administration in Business Management from Fundação Getulio Vargas (FGV). Co-founder of EBIMEX Comércio Exterior and Director of the Union of Customs Brokers of São Paulo (SINDASP), Brazil. He works as an Advisor on Marketing and Institutional Communication at the International Association of Professional Customs Agents (ASAPRA) and is a member of the Brazilian Chamber of Pharmaceutical Products (CBFARMA) of the CNC. He holds certifications in Artificial Intelligence from the OAS (Organization of American States) and in Marketing and Communication from the International Business Management Institute (IBMI), Germany.

Doctor of Law from the Central American University (UCA), Nicaragua. Founding member of the International Academy of Customs Law in Barcelona (ICLA), Spain, and of the Central American Association of Integration Jurists. Currently, he works as Legal Advisor to the International Association of Professional Customs Agents (ASAPRA). He holds certifications in Incoterms 2020 by the ICC and in the 40 FATF Recommendations by GAFILAT, with specialization in Customs and Tax Law.

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