Imagine navigating a labyrinthine customs process where inefficiencies in cargo clearance lead to mounting losses for businesses. Time costs, operational expenses, and missed opportunities could leave companies at a competitive disadvantage. For landlocked nations like Lesotho, an effective customs management system is pivotal to economic growth. Recognizing this, the World Customs Organization (WCO) has stepped in with targeted diagnostics and support to enhance Lesotho’s customs capabilities and streamline trade processes.
WCO PCA Diagnostics: A Tailored Capacity-Building Initiative for Lesotho
From June 18 to 21, 2019, the WCO successfully conducted a comprehensive Post-Clearance Audit (PCA) diagnostic mission in Maseru, Kingdom of Lesotho, at the invitation of the Lesotho Revenue Authority (LRA). This initiative was part of the HMRC-WCO-UNCTAD project funded by the UK’s HM Revenue & Customs (HMRC) under the Commonwealth Heads of Government Meeting (CHOGM) framework, and aligned with the WCO’s Mercator Programme. The mission aimed to evaluate the LRA’s institutional setup, infrastructure, methodologies, and tools for PCA implementation, offering actionable recommendations to improve trade facilitation.
Objectives: Holistic Assessment for Targeted Improvements
The diagnostic focused on three key goals:
- System Review: Analyzing the LRA’s existing PCA frameworks and infrastructure to identify bottlenecks and opportunities for enhancement.
- Methodology Evaluation: Assessing PCA techniques, including risk assessment, audit workflows, and data analytics, to ensure alignment with global best practices.
- Knowledge Transfer: Introducing the WCO’s PCA framework to deepen understanding of its role in risk management and trade facilitation, particularly in implementing WTO Trade Facilitation Agreement (TFA) Article 7.5 and the revised Kyoto Convention.
Process: In-Depth Consultations Across Key Departments
The WCO team engaged extensively with LRA divisions, including:
- Audit, Compliance, and Risk Management units to evaluate processes and identify gaps.
- IT (Application Development) and ASYCUDA World teams to assess technological support for PCA.
- Trade & Customs, Human Capital, and Authorized Economic Operator (AEO) programs to align policies with PCA objectives.
- Field visits to Maseru Bridge clearance points and legal departments to contextualize operational challenges.
WCO’s PCA Framework: Building Consensus
The mission began with WCO experts presenting the PCA concept, emphasizing its role in balancing trade facilitation with compliance. Interactive sessions helped LRA staff apply PCA principles to TFA and Kyoto Convention requirements, fostering a unified approach.
LRA’s Commitment to Reform
At the mission’s conclusion, LRA’s Core Operations Executive, Makali Lepholisa, endorsed the WCO’s preliminary findings and recommendations, acknowledging their value in refining PCA operations. She highlighted the team’s readiness to address challenges, underscoring LRA’s dedication to modernizing customs administration.
Sustained Collaboration Under the Mercator Programme
The WCO expressed gratitude for LRA’s cooperation and pledged ongoing technical assistance to foster a transparent, efficient trade environment. This partnership aligns with the Mercator Programme’s mandate to support TFA implementation globally through capacity-building and knowledge sharing.
PCA: A Cornerstone of Trade Facilitation
Post-clearance audits are integral to contemporary customs management, enabling authorities to verify trade declarations post-release while minimizing border delays. Key benefits include:
- Enhanced Compliance: Detecting discrepancies in traders’ records to curb fraud and improve voluntary adherence.
- Cost Reduction: Fewer physical inspections accelerate clearance, cutting logistics and storage expenses.
- Revenue Protection: Combating smuggling safeguards tax revenues for national development.
Mercator Programme: Global Standards for Local Impact
The WCO’s Mercator Programme assists members in adopting TFA provisions through technical aid and best practices in risk management, PCA, and digitalization. Lesotho’s participation exemplifies how tailored support can elevate customs performance in landlocked economies.
This collaboration between the WCO and LRA reflects a broader commitment to efficient global trade systems. By leveraging international expertise and local resolve, Lesotho is poised to strengthen its trade infrastructure, benefiting businesses and the economy alike.