ASYCUDA - Customs Declaration System (CDS) Integration Project

The Government of Vanuatu has embarked on initiatives to expand the country’s GDP through increased exports, and the government recognises the key role that micro, small and medium enterprises (MSMEs) play in providing decent and sustainable jobs that directly benefit the poor and vulnerable, particularly youth and women. In addition, the Government of Vanuatu is looking to promote and participate in global e-commerce, which reached a total value of USD 29 trillion in 2017. The postal network allows MSMEs to participate in e-commerce by giving them an affordable and direct means to ship merchandise to customers and reducing the need for them to interact with distributors, customs brokers and retailers. Furthermore, e-commerce has emerged as an important pillar during the COVID-19 pandemic by reducing in-person contact, keeping the supply chain moving, and preserving jobs in allowing some sectors to remain open for business. The fast-growing volumes of cross-border e-commerce shipments present a number of challenges to Customs, other relevant government agencies, and private sector stakeholders in terms of ensuring rapid release and clearance while managing safety and security risks, efficient revenue collection and statistical analysis. Moreover, traditional challenges such as illicit trade, illicit financial flows, intellectual property right infringement, counterfeiting, piracy, and commercial fraud continue to exist (source: World Customs Organisation (WCO) Cross-Border E-Commerce Framework of Standards). The provision of electronic exchange of advance information between customs administrations and relevant border agencies is key to countering the transport of counterfeit and prohibited objects, drugs, and other similar dangerous goods in the global supply chain. As an intergovernmental organisation and a United Nations specialised agency, the Universal Postal Union (UPU) is the principal forum for cooperation between governments, designated postal operators, and other sector-wide stakeholders. The UPU’s current strategy makes e-commerce/ e-trade its key priority. In this context, the UPU provides a legal, regulatory and technical framework to support the development of e-commerce and trade through the postal infrastructure. The UPU’s Postal Technology Centre created the Customs Declaration System (CDS), which helps streamline the customs clearance process by allowing participating Posts and Customs to exchange electronic advance data, screen packages and calculate required duties and taxes. The United Nations Conference on Trade and Development (UNCTAD) is part of the United Nations Secretariat and the lead agency that supports developing countries integrate in the global economy to promote inclusive and sustainable development. UNCTAD has established expertise in providing technical assistance and capacity building on trade facilitation and regulatory transparency to developing countries and least developed countries (LDCs). With Customs being a key player in the global trade chain and at the forefront of the country’s image in the ease of doing business, UNCTAD’s ASYCUDA Programme provides technical assistance to develop advance software applications and strengthen the institutional capacity in the customs administration. ASYCUDA embodies more than 30 years of customs reform and automation gathered from its involvement with more than 90 Customs Administrations. This Agreement is the UNCTAD component (funded by EIF) that aims to establish jointly with UPU the electronic exchange of advance data between Customs and Posts in order to enable data-driven customs inspection and clearance processes, translating into an improved and more predictable delivery service.