The “paperless customs” is a fundamental quest for the World Customs Organization with the aim of harmoniously modernizing the operational channels, both for the control and exercise of international merchandise traffic. The objective is to move from a “bureaucratic”, “restrictive”, “invasive” customs service to a “computerized”, “facilitating” and “intelligent” one, appropriate for the 21st century.
But this has changed overnight: the digitalisation of customs has ceased to be simply a matter of interest in achieving the goal of modernisation in the medium term, and has become an indispensable achievement in the short term. No one has escaped the serious situation that has arisen on the planet with the appearance of the COVID-19 pandemic, thus generating the paralysis of all activity.
Towards the modernization of Customs
In 2005, the World Customs Organization (WCO) adopted a new vision for customs. Through the SAFE framework, it outlined guidelines for making significant and far-reaching changes to the customs service worldwide and, therefore, to foreign trade as a whole.
This is how the modernization of Customs began, seeking to add security to the logistics chain, focusing the exercise of control on the importance of a greater link, not only between Customs, but also with companies.
The SAFE standards framework has been periodically updated based on the ongoing evolution of international trade, driven by globalization and integration, but always based on three pillars: the “Customs-Customs” partnership, “Customs-Companies” and “Customs-other Public Authorities”.
At the same time, an increase in the growth rate of e-commerce began to be noticed, both in the East and in the West.
At the end of 2018, the WCO itself approved the Regulatory Framework on Electronic Commerce, seeking to establish basic guidelines regarding this new and growing international trading system. It thus encouraged the exchange of advance electronic data for effective risk management, the adoption of simplified procedures regarding settlement and collection, as well as the use of non-intrusive inspection equipment, through data analysis and the use of technologies in order to secure, guarantee and facilitate electronic commerce.
In line with these transformations, customs began to venture into modernization, adopting intelligent control mechanisms, seeking interaction between them and trying, step by step, to mutate towards modern customs.
Argentina has also been making changes in the direction marked by the guidelines of 21st century customs.
The computerization of Argentine Customs
In 2013, the electronic notification SICNEA – Customs Electronic Communication and Notification System – was adopted, which requires all subjects (auxiliaries, importers, exporters) that operate in Customs foreign trade to adhere to it (AFIP General Res. 3474/2013).
Operationally, mechanisms aligned with digitalization were also added:
Modernization of controls in the primary zone, through the digitalization plan for warehouses and terminals, for the best and highest operational customs quality, incorporating non-invasive and effective control elements, through requirements for computer and digital systems (AFIP General Resolution 3871/2016).
The organization and establishment of the Argentine Foreign Trade Single Window regime –VUCEA- by which the procedures related to declarations, permits, certifications, licenses and other authorizations and procedures necessary to carry out import, export and transit operations of all types of goods are administered (Decree 1079/2016).
The AEO regime – Authorized Economic Operator– is a program that has been created following the standards of the World Customs Organization. It is intended for all foreign trade operators or members of the international supply chain who comply with customs, tax and social security obligations and who have a system of training and implementation of security measures for merchandise and integrity of the logistics chain.
The digitalization of export destinations through the pilot plan for digitizing the customs declaration file for those final export destinations for consumption (EC01) registered in the MALVINA Computer System (SIM) at the Ezeiza Customs Directorate. (Joint General Resolution 4606/2019)
The abbreviated summary procedure which implements a summary process for certain customs violations within the framework of art. 994 and 995 of the CA. This allows, through the computerized communications system SICNEA, to simplify the process in the event of voluntary payment. (General Res. AFIP 4088-E/2017).
New needs in the face of the pandemic
Although Customs has been gradually embarking on the path of modernization, without completely abandoning the administrative system of the last century, this process has been carried out in this way due to the need to explore these changes little by little. But now, with great astonishment, we realize that perhaps carrying out the transformation in a timely and harmonized manner has not been a great success in the face of the current situation that requires a fully computerized customs, no longer out of interest in a “modern customs” but out of an effort to prevent international trade from stopping.
The WCO has been advocating for years the need for a “modern” and “facilitating” customs system, and today more than ever, an agile customs service is required, for which it must digitalize its operations, both operationally, administratively, technically and legally.
If there is one thing that Customs possesses, it is the training of its personnel. The renowned men and women in blue vests have always been able to demonstrate their suitability for the needs of customs matters for foreign trade. Today, this human service that has characterized Customs as a specialized body within the Public Administration must be organized immediately by means of a fully computerized system.
Important steps have been taken in recent years based on the WCO guidelines. Consequently, Customs has computerized mechanisms that allow it to “exercise due and intelligent control”, “process data”, “have effective communication with operators and assistants”, “settle”, “collect”, “inspect”, “officialize”, “interact with other organizations”. It also has sufficient capacity to extend other functions to the digital scheme at the operational, tax and procedural level in the face of the effects of the pandemic.
The tools are there, as is the need and urgency. In this sense, Customs has the duty to join in the rapid modernization. There is no possibility of a harmonized mutation over time. Digital Customs is indispensable today.
By: Dr. Guillermo Felipe Coronel, Lawyer specializing in Customs Law
Aduana News is the first Argentine customs newspaper to launch its digital version. With 20 years of experience, its publications and initiatives aim to provide the most relevant knowledge on customs issues in order to contribute to safe trade in the region.
