The reduction of trade barriers doesn't automatically translate to smooth global commerce. Even with lowered tariffs, complex customs procedures, opaque regulations, and inefficient clearance processes remain significant obstacles for businesses. To help developing nations overcome these challenges, the World Customs Organization (WCO) has implemented assistance programs. This article examines a WCO diagnostic assessment of Namibia Customs and Excise (NCE), designed to enhance its implementation capabilities under the WTO Trade Facilitation Agreement (TFA).
Background: WTO Trade Facilitation Agreement and WCO Mercator Program
The World Trade Organization's (WTO) Trade Facilitation Agreement (TFA), enacted in 2017, aims to reduce trade costs and improve efficiency through simplified, harmonized, and standardized international trade procedures. The agreement covers critical areas including information transparency, advance rulings, border agency cooperation, and goods release mechanisms. Full TFA implementation is essential for developing countries to integrate into global value chains, attract investment, and stimulate economic growth.
To support TFA implementation in developing nations, the WCO launched the Mercator Program. Named after the renowned cartographer Gerardus Mercator, the initiative symbolizes providing customs administrations with a "roadmap" for TFA implementation. The program offers tools, guidance, and technical assistance to help customs agencies assess gaps, develop implementation plans, and conduct capacity-building activities. Its core mission is ensuring effective TFA execution to foster inclusive and sustainable global trade development.
Case Study: Diagnostic Assessment of Namibia Customs and Excise
At the request of Namibia Customs and Excise (NCE), the WCO conducted a diagnostic support mission from October 22-26, 2018, in Windhoek, focusing on TFA implementation. The assessment, conducted under the Mercator Program framework with financial support from Korea's Customs Cooperation Fund (CCF), aimed to comprehensively identify NCE's challenges and opportunities in TFA adoption while establishing foundations for subsequent technical assistance.
Assessment Methodology: Comprehensive Stakeholder Engagement
The WCO team conducted extensive consultations with senior and mid-level officials from NCE's central and regional offices, representing various departments and functional areas to ensure comprehensive evaluation. The assessment also included engagements with public and private sector representatives—traders, freight forwarders, and industry associations—to understand practical trade challenges and ground-level perspectives.
Key evaluation areas included:
- Information Transparency: Assessing whether NCE established effective mechanisms to provide traders with clear, timely information about customs regulations and procedures
- Advance Rulings: Evaluating if NCE offers binding pre-import determinations on tariff classification and rules of origin
- Border Agency Cooperation: Examining coordination mechanisms with other border agencies (health, phytosanitary, standards) for collaborative supervision and information sharing
- Goods Release: Analyzing measures to expedite clearance, including risk management, document simplification, and electronic declaration systems
- Appeal Mechanisms: Reviewing whether NCE maintains impartial, transparent channels for traders to contest customs decisions
Findings and Recommendations: Customized Improvement Strategy
The WCO team produced a detailed diagnostic report with tailored recommendations addressing NCE's implementation challenges while capitalizing on opportunities to enhance trade facilitation. Key proposals covered:
- Legal Framework: Advising legislative reviews to align customs laws with TFA requirements
- Institutional Reform: Recommending organizational optimization for improved efficiency and coordination
- Capacity Building: Proposing enhanced training programs for customs officers on TFA-related competencies
- Technology Adoption: Encouraging digital solutions for automated, paperless customs processes
- Stakeholder Collaboration: Strengthening partnerships with border agencies and private sector actors
Next Steps: Sustained Partnership for Progress
The WCO committed to ongoing collaboration with NCE to develop an implementation plan prioritizing capacity-building activities, donor coordination, and peer customs administration cooperation. The Mercator Program will leverage WCO's extensive toolkit to support Namibia's TFA execution.
Impact and Significance: Advancing Namibia's Trade Ecosystem
This diagnostic assessment represents a successful Mercator Program case study. By identifying institutional strengths and weaknesses, NCE gained clarity to implement targeted improvements that will enhance trade facilitation, reduce commercial costs, attract investment, and stimulate economic growth. Namibia's experience also provides valuable implementation insights for other developing nations pursuing TFA compliance.
Ultimately, the WCO's assessment delivered strategic guidance to Namibia while contributing to global trade facilitation efforts. Through sustained cooperation and capacity development, such initiatives collectively advance more open, efficient, and inclusive international trade systems.