Imagine a nation's economic lifeline—its import and export trade—hampered by inefficient and opaque customs valuation processes. For the Democratic Republic of Congo (DRC), enhancing customs valuation capabilities is not just about tax revenue but about the nation's broader economic health. The World Customs Organization (WCO) has recognized this critical need and extended its support.
Project Background: Outsourcing Challenges and the Need for Self-Reliance
For years, the DRC's Directorate General of Customs and Excise (DGDA) outsourced key functions, including customs valuation, to private inspection companies. While this approach temporarily eased operational burdens, it created new challenges: diminished control over core operations and reduced institutional autonomy. Recognizing these limitations, DGDA sought technical assistance from WCO to assess and strengthen its customs valuation capabilities in preparation for reclaiming these outsourced functions.
WCO Technical Assistance: Comprehensive Assessment and Capacity Building
From January 12-23, 2015, WCO launched the first phase of its technical assistance program. The mission conducted a thorough diagnostic of DRC's customs valuation system, identifying strengths and weaknesses while proposing actionable improvements. WCO experts engaged extensively with DGDA management and senior staff, held workshops with customs brokers, and conducted field visits to provincial customs offices to observe valuation and clearance procedures firsthand.
Modernization Priorities: Balancing Control and Trade Facilitation
DGDA is currently navigating a crucial modernization phase, aiming to balance effective customs control with trade facilitation. WCO endorsed DGDA's plan to reclaim valuation functions and recommended adopting modern tools like risk management and post-clearance audit (PCA) systems—proven methods from WCO's Revenue Package that enhance valuation accuracy while maintaining efficiency.
Alignment With International Standards
WCO's support aligns with the Niamey Declaration recommendations on pre-shipment inspection companies and the WTO Trade Facilitation Agreement. These frameworks promote efficient, transparent customs operations that reduce trade costs while safeguarding national revenue.
Strategic Recommendations for Sustainable Reform
To ensure successful transition, WCO proposed concrete measures:
- Specialized Training: Comprehensive programs on WTO Valuation Agreement principles, method selection, related-party transactions, and risk assessment tools.
- Price Database Development: Creation of a robust, regularly updated reference system incorporating international and domestic market prices.
- Risk Management Implementation: Scientific profiling to focus inspection resources on high-risk shipments.
- Post-Clearance Audit Strengthening: Enhanced verification mechanisms for cleared goods to deter undervaluation.
- Interagency Coordination: Improved collaboration between valuation, inspection, and audit units, plus cross-government data sharing.
- Digital Transformation: Deployment of electronic declaration, payment, and data analysis systems with robust cybersecurity.
- International Cooperation: Continued engagement with WCO and peer administrations for knowledge exchange.
Future Outlook: Building an Efficient Valuation System
Through this collaboration, DRC is positioned to establish a transparent, efficient customs valuation framework that supports trade growth, revenue protection, and economic security. WCO's assistance represents both a commitment to DRC's development and a contribution to global trade standards, offering valuable lessons for other developing nations undertaking similar reforms.