The role of international agreements in customs

The role of international agreements in customs

The establishment and development of international relations in the customs field is one of the key elements in consolidating the process of customs administrations capacity building all over the world, in order to meet the challenges and opportunities of the XXI century. In this context, countries promotes policy for the intensification of the international customs cooperation.

International agreement - instrument by which nation-states and international organizations regulate matters of concern. They are governed by international law, and their purposes include the development and codification of international law, the creation of international bodies, and the resolution of actual and potential international conflict. The most comprehensive agreement is a treaty; others, including conventions, charters, and pacts, are less formal and rely primarily on goodwill. Agreements may be negotiated between states, between an organization and a state, between organizations, or between any of those and a nongovernmental organization. 

Such a legal framework as international agreements is vital because of explosive growth in the volume and complexity of international trade. Great demands are being placed on customs administrations around the world. With government resources not able to keep pace with this growing trade, customs administrations rely on mutual assistance as a powerful investigative tool.

Customs cooperation at the international level aims at improving control of trade flows and the enforcement of applicable laws and regulations through the exchange of information on Customs aspects such as export and import declaration data, trader-related information, origin and valuation-related information. Such data exchanges are based on mutual administrative assistance agreements.

The purpose of the Customs agreements is to:

• enable the administrations to exchange information;
• provide each other with technical assistance;
• undertake surveillance and investigations together, with, and on behalf of, each other; 
• co-operate with each other in order to enhance the efficiency of their operations and for such operations.

Cooperation at international level between the custom authorities is an important tool for providing a balance between the necessary trade liberalisation and the increasing international trade with the world's large trading partners. This cooperation should help customs authorities to use new instruments or increase the efficiency in existing tools for the control of the trade flows and the fight against fraud and illegal activities.

International agreements in Customs focus on strengthened co-operation of customs authorities with a view to creating a level playing field for economic operators and to exchanging information on customs legislation and customs rules as early as possible.

They provide also for the possibility to exchange information on technical assistance granted to countries with a view to improving these actions. Usually the agreements specify also that both sides shall strive for simplification and harmonisation of customs procedures, taking into account the work done by international organisations like for example the World Customs Organisation (WCO) and the World Trade Organisation (WTO). They stipulate that both sides shall cooperate as regards the computerisation of customs procedures and formalities with the aim of facilitating trade between them.

The agreements contain also information on mutual assistance in customs matters, which lay down under which circumstances and how customs authorities can exchange data relating to breaches of customs legislation and fraud cases. The rules have to be strictly applied. Moreover, data protection rules have to be applied and the confidentiality of information has to be respected.