Sooryadev Singh PURMAH, MBA

Team Leader, Customs

(Trade Facilitation & Customs Cooperation)
Joined Customs & Excise Dept in Feb 1972


Total area: 6746 = 2040 sq km
Population: 1.3 million (est)
Mono-crop economy to a diversified one: sugar,
industrial manufacturing, tourism, financial
services, freeport activities, ICT, sea food hub
87% of tariff lines at zero rate
Island state with no natural resources

World Bank Doing Business 2012
Out of 183 countries:
Ease of Doing Business - 23
rd

Trading Across Borders - 21st
Paying Taxes:11th
MRA-Customs Department
Collects 34 % state
revenues

670 customs officers

1 Seaport and 1
International Airport

350,000 declarations per
year (total)


Triggers for Change: Trade Facilitation
v/s Control
Limited resources in contrast with dramatic increase
in volume of trade & travel
Globalization: Liberalization of governmental policies
on cross-border movement of trade and resources
Technological development
Development of institutions to support and facilitate
international trade
Increased global competition
Protection of society & terrorism
Public criticism
Objectives of
Customs Trade Facilitation Programme
Attain revenue targets
Implement Government
economic policies
Reduce economic
distortions associated
with smuggling and
commercial fraud
Create a level playing
field for traders

Facilitate honest traders
while targeting high risk
ones
Promote transparency
Promote voluntary
compliance
Ensure predictability
Reduce discretion and
corruption








Managing Change at Mauritius
Customs
WCO Customs Reform & Modernization
Programme (CRMP) as from 1998 and
Project Management Concept as from end of
2002
CRMP : Orientation Meeting with policy makers
Diagnosis & Planning: Team of Facilitators - WCO, HM
Customs, Revenue Canada: Data Collection, Diagnosis &
Report: 3 Workshops
Project Management Concept: Team constituted &
Strategic planning approach

Outcomes of Diagnosis Mission &
Implementation Strategy
1. Outcomes
Vision: Towards a clean & efficient Customs
Mission: Fiscal, Economic, Protective, Business Support
Strategic plans: Based on 6 Primary Functions
2. Implementation
Steering Committee
Change Management Team (+ consultants)
Implementation Teams in 6 priority areas
Work Improvement Teams
Evaluation
Recruitment of expatriates in Oct 2006 & Feb 2009 to
boost ongoing reforms


Major Changes Over The Years
1. Paradigm shift: gatekeeper to facilitator
2. Partnership with business
3. Automation - Customs Management System (CMS/EDI).
4. Implementation of WTO Valuation Agreement, Post Clearance
Control System
5. Schedule of duties/SOP manuals for officers
6. Redeployment of staff and creation of various enforcement units
7. Code of ethics for officers and customer charter for stakeholders
8. Complaints Bureau
9. Tariff Information Unit
10. Autonomous unit for air-freighted goods
11. Customs Investigation and Intelligence Unit including a drug cell
12. Non-Intrusive Inspection Techniques (NII): Scanners
13. Centralized Risk Management Section

Other Trade Facilitation Initiatives
Single Window office for Cargo Inspection
Single Window office for Exporters
Ecertificate of origin
CARGO FAST TRACK Program - AEO project
Cargo Community System Electronic platform for
tracking & tracing of containers
Express Courier Hub Project
Integrated Tariff and Tariff Classification Rulings
databases on web-site
Rules, regulations, procedures, SOP manual for
stakeholders & administrative forms available on website
Intranet system for officers
Appeal Mechanism
Excise reforms

Requisites for Capacity Building in
Customs
WCO definition: Developing or acquiring skills,
competencies, tools, processes and resources needed to
improve the capacity of the administration to carry out its
allotted functions and achieve its objectives.
Sustained Political Will & Commitment
Leadership & Stakeholder Support
Ownership & Participation of Customs Personnel
Adequate Human and Financial Resources
Effective Human Resource Management Practices
Paradigm shift: Gatekeeper Mentality to Facilitator
Partnership with Business Community
Communication Strategy
Strategic Management Approach & Change Management
Model
Strategies to create a
World Class Customs Service
Institutional
Infrastructural
Technology
Technical
assistance/consultants
Apply international
Customs conventions ,
best practices and
control techniques (e.g.,
risk management & post-
clearance controls)
Modernize Customs law
and regulations
Simplify, standardize &
harmonise customs
procedures
Effective Human
Resource Management
Practices

WCO & WTO Trade Facilitation
Instruments
HS Convention
RKC
Arusha Declaration
Customs Reform & Modernization Programme
Columbus Programme WCO Framework of Standards
WTO Valuation Agreement
Time Release Study
WCO Data Model
Rules of origin


Institutional Change - 1 July 2006
Mauritius Revenue Authority (MRA): revenue depts
under one umbrella as a corporate body to act as agent
of government:
Vision: World Class Revenue Service
Mission: Continually reform and modernize in order to
achieve effectiveness and efficiency comprising with
highly motivated and skilled staff.
Core Values: Integrity, Responsiveness, Fairness,
Transparency, Accountability
MAURITIUS REVENUE AUTHORITY
ORGANISATION STRUCTURE
Existing Offices Renovated to Improve Customer Service

RED/GREEN Channel @ SSR
Arrivals
Customer Counters @ SSR Air Cargo
Open Concept Offices @ IKS Building One Stop Shop @ Dragon House
Single Window Cargo Inspection
Office at Port
Custom House
Fully Operational since December 2009


AUTOMATION - CMS/EDI: Continuous
enhancement since 1998
From 22 to 5 steps, minimal physical contact
officers/brokers, real time information
Electronic submission of cargo manifest, matching with
customs declarations
Rates according to HS entered, automatic calculation, etc.
Risk management module: Entry Selection/Selectivity
Criteria/identify risk factors - Green/Yellow/Red/Blue.
Release of goods through message to freight stations.
Transfer of FCL containers: automated transfer document.
Epayment, E certificate of origin, Valuation database, Tariff
rulings, Integrated tariff, Import permit
External Users: Ministries, VAT, Port Authority, Freeport,
Brokers , Freight Agents

Port Airport
Nuctech X-Ray Scanners
(operational since Feb 2006)





Training and Development Initiatives
Management Development , Project
Management , Investigative & Control
Techniques, Risk Management
Post clearance auditing
Laws & Regulations, Processes &
Procedures
ICT & Integrity
Customer Care, Performance Management
System
Staff and Stakeholder Training

K9 Drug Detector Dogs
Year 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/
08
2008/0
9
2nd
09
Customs
Duty
(billions)
3.47 3.29 3.50 4.04 3.93 3.09 2.14 2.68 1.54 0.82
Excise Duty
(billions)
4.99 4.90 5.36 5.75 6.79 6.72 7.33 7.90 12.11 4.62
VAT on
Imports
(billions)
3.42 4.07 5.65 6.34 7.68 8.47 9.45 11.45 8.51 6.17
Total duties
and taxes
(bilions)
11.88 12.26 14.51 16.13 18.40 18.28 18.92 22.03 22.16 11.61
C us toms Duty
E xcis e Duty
VAT on I mports
Total duties and taxes
DUTIES AND TAXES COLLECTED BY CUSTOMS
2008 2009 2010
red channel 18 16 17
green/yellow channel 82 84 83
0
10
20
30
40
50
60
70
80
90
%
CHANNELING OF DECLARATIONS
Integrity
Internal Affairs & Internal Audit Divisions within
MRA
2006: Customs Department awarded by ICAC the
Best Anti-Corruption Framework Award in the
Public Service and the most improved public sector
institution.
2010: Integrity Risk Assessment conducted for
whole MRA: MRA awarded Best Anti-Corruption
Framework & ranked first in Management
Commitment and Integrity Management
Projects in the pipeline
Mauritius Trade Portal based on the Single
Window Concept
Paperless Customs
Internal Appeal Mechanism & Prescribed
Administrative Penalties
Accounts Manager.

End Note
In todays world, the only constant is change - Need for
continuous improvement
For change to be sustainable - Need for trust and
commitment through leadership, employee
participation, communication & motivation
Comment from a change agent: Customs reform is like
pregnancy. It is often fun and easy to conceive, but
delivery is long and painful.