Improvement of instruments of customs administration: international and legal aspect (The Revised Kyoto Convention Management Committee)

The State Official Educational Institution of Higher Education «RUSSIAN CUSTOMS ACADEMY»


The Regional Training Center of the World Customs Organization The Research Institute of the Russian Customs Academy



M.A. KADYRKULOV, S.V. MOZER

IMPROVEMENT OF INSTRUMENTS OF CUSTOMS ADMINISTRATION: INTERNATIONAL AND LEGAL ASPECT (The WCO Revised Kyoto Convention Management Committee)

Monograph







Moscow
2018

UDC 339.543








     Reviewers:
     N.G. LIPATOVA, Director of Research Institute - Leading Researcher of the Russian Customs Academy, Candidate of Technical Sciences, Senior Researcher (Associate Professor);
     M.A. RYLSKAYA, Director of Institute for Problems of an Effective State and Civil Society of the Financial University under the Government of the Russian Federation, Doctor of Law, Associate Professor



     Kadyrkulov M.A., Mozer S.V.
        Improvement of instruments of customs administration: international and legal aspect (The Revised Kyoto Convention Management Committee): monograph / M.A. Kady-rkulov, S.V. Mozer. Moscow: Publishing House of the Russian Customs Academy, 2018. 248 p.


        ISBN 978-5-9590-1024-9



          The monograph presents historical and modern facts of the World Customs Organization’s activities in terms of improving of customs regulation and revision of the International Convention on the Simplification and Harmonization of Customs Procedures (Kyoto Convention). It analyzes some aspects of the forthcoming work on the updating of the Kyoto Convention by the international customs community. It considers the possible directions of mutually beneficial customs cooperation between the World Customs Organization as an international institution for the development and improvement of customs administration and the Eurasian Economic Commission as a permanent regulatory body of the Eurasian Economic Union (EEU).
          The monograph can be useful for a wide range of specialists in the field of international customs cooperation and improvement of customs regulation on the basis of international standards. It can be used by scientists, lecturers, students, graduate students and other categories of students in the Russian Customs Academy, in other universities and Regional Training Centers of the World Customs Organization specializing in «Customs» and «Jurisprudence» as well as for experts of the WCO working bodies, Customs and other executive authorities in the Member States of the EEU, experts of the Eurasian Economic Commission for organizing and implementing mutually beneficial customs cooperation between the Eurasian Economic Commission and the World Customs Organization.


UDC 339.543




ISBN 978-5-9590-1024-9

© М.А. Kadyrkulov, 2018
© S.V. Mozer, 2018

From authors




    Dear friends and colleagues!

    With great pleasure we present to your attention our monograph, which reveals the current issues of the functioning of the World Customs Organization (WCO) in the context of creation and improvement of modern instruments of customs regulation.
    To date, the WCO is a serious international structure under the aegis of which the international customs community creates modern standards and legal means of customs administration. The WCO Secretariat headed by the Secretary General provides invaluable assistance in this process. Our active cooperation with this international institute, where the experts of the world Customs administrations discuss and decide relevant issues of customs regulation, began in 2016 after the signing of the Memorandum of Understanding between the Eurasian Economic Commission (EEC) and the World Customs Organization. During this time the doors were opened for the EEC specialists to a number of WCO working bodies, which are responsible for various issues of customs administration and trade facilitation.
    With each working visit to the WCO we learn more about its specifics and peculiarities, realizing the importance of continuing common beneficial cooperation between the Eurasian Economic Union and the WCO on improving customs regulation and matters of common interest. Such interaction already brings its positive results within the framework of Eurasian integration and modernization of the EEU law in customs sphere.
    In the near future we will witness a revision of the International Convention on Harmonization and Simplification of Customs Procedures. The EEC experts of customs block have already expressed their willingness to participate in this process, which will be no doubt very interesting from the professional and scientific point of view. Actually, the monograph is devoted to the issue of the forthcoming revision of the Kyoto Convention.



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    In this context we are ready to share our experience and knowledge, sincerely hoping that they can be useful for a wide audience - practitioners of Customs authorities, students, graduate students as well as interested persons who study the World Customs Organization and issues of international customs cooperation, legal development means of customs regulation and trade facilitation.
    Kind regards,

Mukai Kadyrkulov                                             Sergei Mozer

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TABLE OF CONTENTS



      SYMBOLS AND ABBREVIATIONS ...............................9

      FOREWORD................................................. 10

      Chapter 1
      THE WORLD CUSTOMS ORGANIZATION
1.1.   The World Customs Organization as a modern institution for improvement of customs regulation and trade facilitation .... 14
1.2.   Areas of activity and strategic objectives of the World Customs Organization ........................... 16
1.3.   Structure of the organizational form of management of the Kyoto Convention ..................................... 19
1.3.1. The Compliance and Facilitation Directorate............20
1.3.2. The Procedures and Facilitation Sub-Directorate.........20
1.3.3. The Revised Kyoto Convention Management Committee.......22


     Chapter 2
     INTERNATIONAL CONVENTION
     ON THE SIMPLIFICATION AND HARMONIZATION
     OF CUSTOMS PROCEDURES

2.1.   On the International Convention on the Simplification and Harmonization of Customs Procedures ............................... 24
2.2.   Revision of the Convention and results ...................... 25
2.3.   Major features of the Revised Kyoto Convention .............. 28
2.4.   Accession to the Convention ................................. 29
2.5.   Benefits of the Kyoto Convention ............................ 30
2.6.   Kyoto Convention and WTO Negotiations on Trade Facilitation . 31

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2.7.   Kyoto Convention and Framework of Standards to Secure and Facilitate Global Trade............................. 32
2.8.   Rights and obligations of the Parties to the Convention ... 33

      Chapter 3
      THE WORLD CUSTOMS ORGANIZATION
      AND THE EURASIAN ECONOMIC UNION
3.1.   Interaction of the Eurasian Economic Union
       and the World Customs Organization at the current stage ....................................... 36
3.2.   International activities of the Eurasian Economic Union
       in the framework of interaction with the World Customs Organization..........................43
3.3.   Improvement of customs regulation in the context of interaction between the EEU and the WCO ....................... 53

      Chapter 4
       IMPROVEMENT OF INSTRUMENTS OF CUSTOMS REGULATION: THEORETICAL ASPECT
4.1.   On legal instruments and tools of customs regulation....... 65
4.2.   The main instruments of customs regulation................. 68
4.2.1. Customs law as a branch of administrative law ............. 70
4.2.2. Norms of customs law ...................................... 70
4.2.3. Legal institutes of customs law ........................... 71
4.2.4. Normative acts in the sphere of customs regulation......... 71
4.2.5. Permissions, bans, positive requiring in the sphere of customs regulation ....................................................... 71
4.2.6. Legal mechanism in the field of customs regulation ........ 72
4.2.7. Administrative and legal regimes (customs procedures)........ 72
4.2.8. Legal constructions in the field of customs regulation ...... 74

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4.2.9. Forms of management in the sphere of customs regulation ...... 75
4.2.10. Act of public administration ................................ 76
4.2.11. Administrative agreement in customs sphere .................. 76
4.2.12. Programs, concepts of development and improvement of customs regulation (as acts of public administration
       in the field of customs) ..................................... 76
4.3.   The concept of improving the instruments of customs regulation............................................... 81
4.4.   Methodological approaches to improve the instruments of customs regulation............................................... 91

       Chapter 5
       REVISION OF THE KYOTO CONVENTION
5.1.   Conceptual approaches in 2009 for the revision of the Kyoto Convention ........................................... 98
5.2.   Revision of the Kyoto Convention: outcomes of 2018 .......... 106
5.3.   Analysis of procedural issues of the Terms of Reference
       of the Working Group on a Comprehensive Review of the Revised Kyoto Convention ............................. 109
5.4.   Improvement of the instruments of customs regulation: the Revised Kyoto Convention...................................... 113
5.5.   Overview of the directions of updating the Kyoto Convention.. 116
5.6.   Classification of topical issues
       of customs regulation considered by the Permanent Technical Committee in 1997-2018........................................139
5.7.   Proposals for the revision of the Kyoto Convention .......... 152
5.7.1. Plan of activities for the revision of the Kyoto Convention . 153
5.7.2. Concept of the revision of the Kyoto Convention ............. 156
5.7.3. On the Methodology of the revision of the Kyoto Convention .. 162

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5.7.4.  Organizational and legal aspects of interaction between
      the participants of the Working Group
      on a Comprehensive Review of the Revised Kyoto Convention ................................. 173
5.7.5.  The role of observers in the revision of the Kyoto Convention . 181
5.7.6.  On the issue of National Working Groups (Committees) on a Comprehensive Review of the Kyoto Convention .............. 186

      CONCLUSION ...................................................... 190

      LIST OF SOURCES USED ............................................ 192

      ANNEXES.......................................................... 210
      1. Contracting Parties to the Revised Kyoto Convention .......... 210
      2. List of Contracting Parties to the RKC - Chart.................223
      3. Memorandum of Understanding Between
      the World Customs Organization (WCO), Having
      its Headquarters in Brussels, Belgium, and the Eurasian
      Economic Community (EAEC), Having its Headquarters
      in Moscow, Russia and in Almaty, Kazakhstan (25 June, 2004) ......224
      4. Decree of the Collegium of the Eurasian Economic Commission
      № 64 «On the draft Memorandum of Understanding between
      the Eurasian Economic Commission and the World Customs Organization» (17 May 2016) ..................................... 227
      5. Memorandum of Understanding between
      the Eurasian Economic Commission and the World Customs Organization (17 June 2016) ..................................... 228
      6. Provisional list of customs operations and business processes .................................... 230
      7. Terms of Reference of the Working Group
      on a Comprehensive Review of the Revised Kyoto Convention (WGRKC) ......................................................... 245

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                SYMBOLS AND ABBREVIATIONS




APEC                - Asia-Pacific Economic Cooperation    
CAREC               - Central Asian Regional Economic      
                    Cooperation                            
CCC, Council        - The Customs Cooperation Council      
CEN                 - Customs Enforcement Network          
Convention, Kyoto   - The International Convention on the  
Convention, Revised Simplification and Harmonization of    
Convention          Customs Procedures                     
CUC                 - The Commission of the Customs Union  
EEC, Commission     - The Eurasian Economic Commission     
EEU, Union          - The Eurasian Economic Union          
EAEC                - The Eurasian Economic Community      
EU                  - The European Union                   
ISCM                - Integrated Supply Chain Management   
PTC                 - The Permanent Technical Committee    
RKC, Revised Kyoto  - The International Convention on the  
Convention          Simplification and Harmonization of    
                    Customs Procedures                     
RKCMC, Management   - The Revised Kyoto Convention         
Committee           Management Committee                   
SAFE                - SAFE Framework of Standards to Secure
                    and Facilitate Global Trade            
UCC                 - Customs Code of the Eurasian Economic
                    Union                                  
UNECE               - The United Nations Economic          
                    Commission for Europe                  
Treaty              - Treaty on the Eurasian Economic Union
WGCR RKC            - The Working Group on a Comprehensive 
                    Review of the Revised Kyoto Convention 
WCO, Organization   - The World Customs Organization.      

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                FOREWORD





    In the publications on the activities of the World Customs Organization (hereinafter - WCO, the Organization), we repeatedly draw attention to the need to develop mutually beneficial relations between the Eurasian Economic Union (hereinafter - EEU) and the WCO, within the framework of which the experts develop fundamental concepts, ideas, models, instruments and recommendations in the field of customs regulation. In our opinion, the WCO is a universal negotiating platform for the majority of the world’s customs administrations, international organizations, representatives of the business community, whose activities are related to the improvement of customs regulation and the governing external trade activities. Full participation in the work of the Organization of stakeholders with the status of the WCO members, observers, stakeholders, including academic circles, allows comprehensive consideration of the customs issues and to prepare proposals for improving customs regulation taking into account different points of view and the variety of options to meet the challenges. Confirmation of this thesis becomes apparent at meetings of various WCO working bodies.
    In May 2018 the representatives of the Eurasian Economic Commission (hereinafter - EEC, Commission) as observers participated for the first time in the meeting of the Revised Kyoto Convention Management Committee. We believe that this is a significant event, because, in our understanding, this WCO working body is one of the main ones, which is responsible for a wide range of issues related to modernization and preparation of recommendations, guidelines for the implementation of the provisions of the International Convention on the Simplification and Harmonization of Customs Procedures. The time of participation of the EEC representatives in the meeting of this working body coincided with the development of a package of documents for a comprehensive revision of the Convention by the Working Group on the Comprehensive Review of the Revised Kyoto Convention (hereinafter - WGCR RKC) with active participation of the WCO Secretariat.
    On January the 1st, 2018 the Customs Code of the Eurasian Economic Union entered into force on the territory of the EEU. The Parties of the Union are the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic and the Russian Federation. When drafting the Code, the experts from the Expert Group on Preparation of the Union Customs Code have often referred to the provisions of the Kyoto Convention. In our opinion,

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