As the world continues to grapple with the lingering effects of the COVID-19 pandemic, disruptions to supply chains and rising trade barriers have become increasingly prominent. Against this backdrop, the World Customs Organization (WCO) has been working to address these challenges through strengthened collaboration with the private sector, aiming to build a more efficient, secure, and sustainable global trade system.
WCO Private Sector Consultative Group (PSCG) Meeting Highlights
On June 20-21, 2022, the WCO Private Sector Consultative Group (PSCG) convened in a hybrid format at WCO headquarters in Brussels, marking the first in-person meeting since the pandemic began over two years prior. The gathering brought together private sector representatives from around the world to discuss critical issues including business recovery, the WCO Data Strategy, and Green Customs initiatives. During the meeting, PSCG members also held discussions with the WCO Secretary General and Deputy Secretary General on these key topics.
Key Takeaways:
- First in-person PSCG meeting since pandemic began
- Focus on business recovery, data strategy, and sustainability
- Direct engagement with WCO leadership
PSCG Dialogue with WCO Policy Commission (PC)
On June 22, 2022, PSCG members engaged in their first dialogue in three years with the WCO Policy Commission (PC). PC members acknowledged the private sector's significant efforts in collaborating with WCO and national customs administrations to overcome severe supply chain disruptions. This dialogue provided a valuable opportunity to exchange lessons learned and share best practices, helping both customs and businesses better prepare for potential future crises.
Global Trade and Customs' Role in the Pandemic Era
The PSCG emphasized that COVID-19 highlighted both the interconnectedness of economies in today's globalized world and the crucial role of customs as connectors in global supply chains. Trade facilitation measures implemented during the pandemic proved beneficial to businesses, and both PC and PSCG members agreed these measures should be made permanent rather than revoked, supporting business recovery while incorporating modern technologies and enhanced stakeholder engagement.
WCO Strategic Priorities: Data Strategy and Green Customs
The dialogue also allowed the PC to receive PSCG feedback on key elements of WCO's strategic planning, particularly regarding the Data Strategy and Green Customs initiatives. Participants broadly supported using trade facilitation to reduce supply chain carbon emissions and proposed practical measures to significantly decrease WCO's carbon footprint, such as implementing paperless operations and a "zero single-use plastic" culture.
Data Strategy: The Foundation for Strategic Planning
Participants expressed strong support for the WCO Data Strategy, recognizing data's powerful role in strategic planning, intelligence gathering, and providing statistical information for customs and trade. Data-driven decision making will enable customs administrations to better address future challenges and support healthy global trade development.
Detailed Discussion of Key Topics
Business Recovery: Addressing Supply Chain Disruptions
The pandemic caused unprecedented shocks to global supply chains, resulting in production halts, shipping delays, and inventory shortages. Businesses faced tremendous pressure to resume operations, making recovery strategies a critical discussion point. Key measures identified include:
- Paperless clearance: Reducing reliance on physical documents to accelerate processing and minimize errors
- Risk management: Focusing inspections on high-risk goods while expediting low-risk shipments
- Information sharing: Enhancing data exchange between customs and businesses for better production and distribution planning
- Facilitation measures: Providing trusted trader benefits like advance rulings and pre-declarations
WCO Data Strategy: Engine of Customs Modernization
In the digital era, data has become a strategic resource. The WCO Data Strategy helps customs administrations leverage information to improve efficiency, strengthen risk management, combat smuggling, and facilitate trade. Core components include:
- Data collection and integration from multiple sources
- Advanced analytics to identify risks and opportunities
- Secure data sharing with relevant stakeholders
- Robust protections for data security and privacy
Green Customs: Building Sustainable Trade Systems
With climate change concerns growing, Green Customs initiatives aim to reduce trade's environmental impact through measures such as:
- Promoting eco-friendly products
- Implementing green clearance processes
- Combating illegal trade in endangered species and hazardous waste
- Encouraging sustainable packaging solutions
Looking Ahead: Strengthening Collaboration
The dialogue between WCO's private sector advisors and policy makers has established an important platform for customs-business cooperation. By sharing experiences and best practices, both sectors are laying the foundation for a more efficient, secure, and sustainable global trade system. Moving forward, WCO will continue deepening private sector engagement to promote healthy trade development and contribute to global economic prosperity.