The IX OAS International Seminar in Brazil has concluded. What did the event leave us with? In order to analyze the question, it became necessary to consult the Procomex Institute and evaluate the results of the meeting called “Coordinated Border Management, OAS Program for Integrated Operations and Electronic Commerce.”
For the analysis it is convenient to consider where we come from. That is to say, remember the previous International Seminars, organized by Procomex and the Brazilian Federal Revenue Service, with the intense support of the Organization of American States, the World Bank and the Global Alliance for Trade Facilitation, on the subject of Coordinated Border Management, where the Declarations of General Directors of Customs were signed in São Paulo, in 2018, the Addendum to the São Paulo Declaration in 2019 and 2022, as well as the birth of the "Impulse Group" for Coordinated Border Management at the end of 2022, sponsored by this series of commitments.
Where are we? Expecting the IX OAS International Seminar. After eleven customs offices of the Americas and the Caribbean signed the Regional Mutual Recognition Agreement of the figure of the Authorized Economic Operator (OAS) for the benefit of legitimate trade and the security of logistics chains, the new Procomex meeting involved a more technical process to define how to implement the agreement with regard to regional integration and border coordination. That is, how to transform the words of the text into concrete action.
Then, How was the 2023 edition? For César García, Senior Consultant at Procomex, the The IX OAS International Seminar held in partnership with the Federal Revenue Service of Brazil on May 24 and 25 was the “most successful event in every sense.” He prefers to talk about progress in terms of objectives and the call for proposals. The Seminar brought together more than 460 representatives from the public and private sectors. In addition to Brazil, Argentina, Bolivia, Chile, Colombia, Costa Rica, the United States, Ecuador, Guatemala, Mexico, Panama, Paraguay, Peru, the Dominican Republic and Uruguay participated in this event.
There is an additional, and no less important, variable when it comes to knowing the results of the event. For whom was it a step forward? “The step forward was for the people,” said García. He explained in this regard that the event was an opportunity for the private sector and government agencies to work together in the development of a coordinated border management system that increases the competitiveness and economic prosperity of the countries in the region.
Specifically, César García referred to the evolution, that is, to the commitment of public sector (customs and health and agricultural agents) to initiate a roadmap that allows working together on aspects such as shared information. Border control management is a comprehensive project; it is not possible for one agency to move forward alone. This is established in Pillar 3 of the SAFE Regulatory Framework of the World Customs Organization, which establishes standards to secure and facilitate international trade.
In addition to the above, the private sector The meeting also addressed issues such as the implementation of AEO programmes, a fundamental part of the regional strategy to advance the facilitation of safe trade. In this regard, the responsible companies raised concerns regarding the application of the benefits of the Mutual Recognition Agreement (regional or bilateral) provided for in the AEO programmes due to the configuration of the TIN (Trader International Number) code, understood as the exporter's identifier provided by the customs office of origin.
Regarding the cooperation framework that helps develop a more comprehensive AEO program, customs in Brazil, Colombia, Bolivia, Guatemala, Paraguay and Peru commented on the inclusion of other border control authorities in their AEO program.
With their differences and similarities, the eleven customs of the signatory countries of the Regional Mutual Recognition Agreement (MRA) of the AEO Program reported the status of implementation. Chile defined the initiative as a “strategic issue.” The Dominican Republic announced that the MRA already has a legal basis. Paraguay is developing software for the AEO Program in order to have “zero paper.” Guatemala shared data on the benefits granted to AEOs authorized by customs in other countries. Colombia highlighted its electronic system to identify AEO companies from abroad. Bolivia has incorporated training. Argentina has raised the challenges of using technology at the Santo Tomé-Sao Borja crossing to apply it in other centers. Meanwhile, Uruguay raised the need for the AEO program to be a “national instrument.” Brazil considered that it can be improved. And Peru developed training, dissemination, surveys and information cross-checking actions. In addition, the Private Sector Advisory Group raised the need for Customs to provide benefits to AEO companies to establish ties of trust and highlighted, at the same time, that compliance is the “strong commitment” of the private sector.
In addition, during the course of the Seminar, the challenge of growth was raised. E-commerce for the global economy, as well as opportunities for public administrations. One of these is the extension of the AEO programme to e-commerce, which encourages customs to strengthen their partnerships with the private sector and the possibilities of applying AEO programmes and mutual recognition agreements in the context of e-commerce.
Specifically, more and better action is needed to ensure the security of the regional logistics chain.
The OAS 2023 International Seminar was the framework of the impulse of the Coordinated Border Management work that has been carried out virtually since the beginning of 2023. García focuses this regional initiative on the roadmap drawn up with information collected to overcome problems in foreign trade control processes. “The costs of border crossings represent up to 15% of the value of the goods traded.”
Therefore, following the idea of working to stimulate coordinated border management that ensures the movement of goods with the purpose of facilitating trade, the 2023 edition of the event legitimized in a Work Plan the proactive and positive contribution of the “Impulse Group", which involves 14 international organizations such as Procomex, Global Alliance, OAS-CICTE, World Bank, Federal Revenue, IDB, SIECA, CAF, SELA, USAID, CT-PAT and Regional Private Sector Group-OMA, T-Fast, Eurofront.
He also recognized the “Technical Groups"made up of Subgroups of Customs, Agriculture, Health and Security, whose primary objective is to build a forum for the debate of the main challenges of each of the different sectors in relation to coordinated border management.
The interesting thing about it - or what should be interesting - is that the new commitment promotes the continuity of the "Drive Group" and the "Technical Working Subgroups" that have worked for more than 20 hours of meetings held, between May 22 and 23, 2023, by all the representatives of Customs, Agriculture and Health present at the Seminar. From this brainstorming, García shares some common points (intended to integrate all institutions in the common objective of Coordinated Border Management). Namely:
1. Harmonization data, following international standards, for example: those of the WCO. For all control bodies in the region. Creation of a technical Working Group for this purpose.
2. Interoperability of systems through the integration of VUCEs and implementation of Blockchain technology.
3. Implementación of Regional Coordinated Management Pilots on land borders.
4. THE STUDIO regional implementation of joint inspections.
In short, these are some of the working groups that emerged under the coordination of the “Impulso Group” that deserve observation, since they must consolidate results by March 2024.
In this way, we find ourselves in a virtuous circle because, in the words of César García: “This is collaboration.” These are the commitment, trust and international support to which the specialist refers and are what he considers relevant to advance in everything else. This is, then, the valuable thing that the event left behind: the starting point of a long road to follow.
In this regard, García concludes with the following concept: “Coordinated border management is a 'shared responsibility' that allows countries to be more competitive in facilitating and controlling international trade.”
Now how do we continue? Indeed, it is necessary to understand that the IX OAS International Seminar 2023 has been an extraordinary moment for the announcement of Three important messages that invite us to persist…
- Consolidation of technical groups for Customs, Agriculture, Health and Safety in the WCO style. César García reported that the initiative - focused on Customs, Health, Agriculture and Security/Immigration agencies - will advance in the conjunction of Foreign Trade and Coordinated Border Management. For this reason, it will have a specific work agenda for each group under the coordination of the Coordinated Border Management Promotion Group in the Americas and the Caribbean.
- Technical work will have political support. Marcelo Martinez, Project Manager of the CICTE/OAS Security Program, announced that his international organization is already working to ensure that countries' foreign ministries commit to implementing the recommendations that arise from groups on coordinated border management.
- The initiative will continue. John Mein, Executive Coordinator of PROCOMEX, announced that the 2024th International Seminar will be held in March XNUMX, in the city of São Paulo, Federative Republic of Brazil.
A final recommendation on the subject:
You can see the IX OAS International Seminar here
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