Moscow International Business Association
Forum on the Russian Customs Code: Another step towards the WTO
Brussels, 15 October 2004

Opening speech by Kunio Mikuriya, Deputy Secretary General, WCO

The Chairman of MIBA, Mr. Borisov,
HE the Ambassador of Russia, Mr. Volcov,
Distinguished guests,
Dear colleagues,
Ladies and gentlemen,

It is a great pleasure and honor to welcome all participants to this forum which is being held in Brussels and which will facilitate dialogue between the Russian customs administration and the business community on the issue of Russia’s future accession to the WTO. I am particularly pleased that the Russian customs have initiated this forum given the leading role that they are playing in the international customs community in their capacity as the current WCO Vice- Chair and representative of the European region.

These days there is growing recognition of the vital role customs can play in revenue collection and increasing the competitiveness of the national economy. Transparent, predictable and speedy customs procedures evidently constitute a main feature of competitiveness in facilitating trade and promoting inward investment. This is the reason behind the recent WTO decision to launch negotiations on trade facilitation. The WTO decision formally recognizes the work of the WCO as providing a basis for its future negotiations. Indeed, the WCO has developed and maintained standards to streamline customs procedures based on best practices used by customs around the world. These standards are incorporated in the revised Kyoto Convention, or the "International Convention on the Simplification and Harmonization of Customs Procedures" that defines how a modern customs administration should operate. This convention is also the WCO’s response to calls from the trading community for the movement of goods to be facilitated to the greatest extent possible.

After the terrorist attacks on September 11 in the US, security has become a global concern. Expectation is high for customs to make a valid contribution in securing the international trade supply chain, while ensuring the smooth flow of legitimate trade. In responding to this call, the WCO has developed guidelines and instruments to enhance security and facilitation of the trade supply chain. The WCO High Level Strategic Group, comprising twelve customs administrations, including Russia of course, is ready to provide leadership in this area. It has been mandated to consider ways to effectively implement the new standards. This will naturally involve strengthening customs-to-customs networks and customs-to-trade partnerships.

Indeed, the WCO strives continuously to promote international cooperation among its 164 member customs administrations especially with regards to the exchange of information and the sharing of best practices. We need such cooperation between customs all the more in order to respond to the challenges that constantly arise from the ever-changing trade environment.

Implementation of international rules and standards, set by both the WCO and the WTO, is essential for the customs community to collectively discharge its responsibilities. Technical assistance and capacity building has thus gained importance for all our member administrations. Russian customs made a valid contribution in this area by generously offering to host a Regional Training Center for neighboring administrations in the region. In this respect, I should express my appreciation for their cooperation and goodwill.

Today’s topic the "Russian customs code" is an important issue as we all know that Russia introduced new legislation this year based primarily on the revised Kyoto Convention. Constant review and updating of the customs code is a challenge for all customs administrations, in developed and developing countries. Today we have excellent speakers from customs and trade who will provide us with their insight and the efforts of Russian customs in overcoming possible obstacles in its implementation. I am convinced that the Russian experience in addressing its problems in partnership with the trade will be of great interest to the whole international customs community.

I wish this conference every success.