By Yusuf Soraan

The Automated System for Customs Data (ASYCUDA) is a computerized system designed by the United Nation Conference on Trade and Development (UNCTAD) to administer a country’s Customs (UNCTAD, 2006). According to UNCTAD, It is an automated Customs data management system that can handle all Customs clearance related processes. This is done by implementing simplified and harmonized procedures, and standardized trade documents. The system allows for the electronic processing of declarations, risk management, transit operations and expedited clearance of goods, in addition to collecting timely and accurate statistical data for fiscal and trade policy objectives. Automated System for Customs Data (ASYCUDA) Program was developed by UNCTAD in the early 1980s to automate the operations of Customs Administrations. It is presently installed in 84 countries. The program was developed to support Customs Administrations in their objective of trade facilitation and efficiency of Customs clearance control. UNCTAD has developed three versions of ASYCUDA so far and is currently rolling out ASYCUDA World.

ASYCUDA is a complete and fully integrated Customs computer system. The ASYCUDA interface makes operation easier for the user by presenting the system to the user in the form of task specific modules and modules designed for the needs of an office or of a particular grouping of functions. ASYCUDA system modules are grouped into main three types, according to function: – 1. ‘General office User modules’ are for basic or mainstream Customs processes, such as the input and processing of declaration data, and Customs controls. 2. ‘Specialist User modules’ are generally for Customs support functions. These functions integrate with or add to the main Customs processes of the General office modules. 3. ‘System Maintenance and Reporting’ modules manage the running of the ASYCUDA⁺⁺ system on a day to day basis.

Abundant experience around the world has made it clear that the single most important ingredient for effective tax administration is clear recognition at the highest levels of politics of the importance of the task and the willingness to support good administrative practices even if political friends are hurt (Bird and Casanegra de Jantscher, 1992). Unfortunately, very few developing countries have so far proved able to leap this initial hurdle. More frequently, urged by international agencies or simply desperate to get more revenues, countries have launched frantic efforts to corral defaulters or to rope in new victims without hurting politically powerful interests and without providing the time, resources and consistent long-term political support needed to do a good job.

Somaliland customs, there is an urgent need for reform of the archaic and bureaucratic system of revenue assessment and collection presently in force. Computerization is the answer, and fortunately there is in existence a system of revenue assessment control and accounting designed specifically for countries with emerging economies. ASYCUDA (Automated System for Customs Data) is in use in over eighty countries and regions world-wide, including twenty-nine countries in Africa. It is a computerized system for manifests, customs declarations, accounting procedures, bonded warehouses; inward and outward processing relief’s and transit control. ASYCUDA also generates trade data for statistical purposes. Although ASYCUDA can be configured to suit individual custom regimes, such as a national tariffs and legislation, it is most effective when used in conjunction with the accurate and effective Harmonized System (HS) of tariffs and the Single Administrative Document (SAD), which should also be introduced in conjunction with ASYCUDA.

If Somaliland ministry of finance decided to computerize revenue collection and administration in all Somaliland Customs by introducing computer software called the automated systems for customs data, Somaliland customs obtains the maximum possible benefit from the implementation of automated system for customs data, for instance the outstanding benefits of the introduction of ASYCUDA are in the areas of manifest control, production of accurate, meaningful statistics, and the elimination of many manual calculations and accounting procedures. The resulting release of operational staff from desk bound repetitive tasks will enable the Somaliland Customs to develop other areas of customs control, such as effective border patrols, search of vessels, development of intelligence, prosecution of offenders and more selective control of passengers, furthermore Automated System for Customs Data offers several additional benefits to the government, including facilitation of compliance management, risk analysis, timely and accurate trade statistics, and revenue collection, and made it easier to trade across border and also a willingness to co-operate with neighboring countries’ customs services, particularly Ethiopia.

No doubt if we use ASYCUDA, Somaliland custom’s automation mainly results in increased transparency in the assessment of duties and taxes, substantial reductions in Customs clearance times, and predictability. All these factors will eventually lead to direct and indirect savings for both government and the trading community. More specifically, benefits usually include: Simpler, more transparent procedures and documents, based on international standards; Faster electronic lodgment of Customs declarations, using Direct Trader Input (DTI) or other on-line connections; Reduced Customs clearance times and less physical examination of shipments owing to the use of risk management applications; Increased collection of duties and taxes and less fraud due to the uniform application of laws and regulations, the automated calculation of duties and taxes as well as built-in security; Reduced Customs auditing of documents and records after release of the goods; and separation of payment of duties and taxes from the physical clearance of goods (under deferred payment schemes, e.g. payment by week or month); Enhanced capacity building of staff and management in both Customs and the private sector (e.g. through training courses on simplified procedures and documents based on international norms, UN recommendations and WCO standards); and Improved and timely foreign trade statistics as trade data are an automatic byproduct of the computerized system.

Also no doubt automated System for Somaliland customs could protect the national interest; for instances computerized risk-management systems determine the routing of transactions for Customs control according to criteria established by Customs officers specialized in enforcement and intelligence gathering. Customs controls aim not only at protecting fiscal revenue and detecting fraud and smuggling but also at ensuring secure trade in the face of the terrorist threat. Since 11 September 2001, security measures need to be reconciled with expedited Customs clearance of goods. This can be achieved only by using modern, computerized procedures that track and target high-risk consignments and reduce the number of physical inspections (UNCTAD, 2006). ASYCUDA’s risk management system capitalizes on over 25 years of experience in the computerization and implementation of Customs operations worldwide. ASYCUDA covers the whole declaration-processing path, including cargo and transit. It uses sophisticated tools, from the classic selection of the examination procedure and the allocation of the declared goods to a control ‘channel’ —green, for the release of goods without examination; yellow, for documentary checks prior to goods release; red, for physical examination of the goods prior to release; or blue, indicating that goods will be released but will be subjected to a post-clearance audit control by Customs— to the use of multimedia, scanned images and wireless devices. State-of-the-art technological tools provide Customs officials with immediate remote access to intelligence and control databases. Customs controls can now be undertaken in situations where this was not possible before —for example; to stop cargo in transit and verify that the paper documents presented correspond to what has been declared at departure, or to perform on-the-spot checks of a container’s content and the status of the goods (cleared, in transit, etc.). The system permits the periodic assessment of risk-management processes in order to measure the effectiveness of selection criteria and to change, extend or eliminate risk management parameters as needed. The transit module of ASYCUDA includes forgery-proof electronic documents, electronic signature, and registration of all transactions. No data re-entry is required by carriers or at border crossings. The system can process transit documents such as the TIR Carnet. It allows for the full integration of transit procedures into the Customs clearance process with transit documents being generated from waybills and export declarations.

Customs’ main functions are to control the cross-border flow of goods, ensure compliance with government rules and regulations, to collect the duties and taxes due according to the national Customs tariff and tax code, and to protect the country against the import of goods and materials intended for illegal purposes, and against terrorist activities. This complex work can be facilitated through the use of computer systems consisting of comprehensive and integrated software packages with a number of functionalities or modules, such as: Cargo control, to monitor all movements of import, transit and export, and ensure that all goods are either duly cleared before release or a mechanism is in place that allows for the release prior to clearance; Declaration processing, to capture and process data for duty and tax collection; Payment and accounting, to register and account for payments by importers and exporters; Intelligence operations, to store and exchange data for risk profiling and enforcement, and risk management to select consignments bearing a higher risk of concealing duties and taxes, or those prone to smuggling and trafficking illegal substances and materials; Statistics and reporting, to extract data for foreign trade statistics and to generate management reports for Customs.

Yusuf Soraan    

MBA of Tax and Custom Administrator

Email: sooran07@hotmail.com Tell: 063- 4247584

Do you sometimes check yourself that you are literally a fuel-powered machine? Why traditional hydrocarbon products often affect our lives so extensively? What are the conspiracy theories on the global oil plunge? Why do we worry about a potential global depression?

No doubt at all, that we are all on board a west-controlled economic vehicle moving in a world driven by corporatocracy, bureaucracy, interest, greed, omission, nepotism and deception of every shape. Ordinary people caught between the global media, which is more propagandistic than realistic and conspiracies, which are more opaque than transparency. Oil prices would fall deeper in the coming months, as Brent Crude, the main global oil benchmark has virtually bowed down to the heat, as it was traded below $50 a barrel let alone the other benchmarks, like West Texas Intermediate (WTI) and Dubai Crude. Analysts are forecasting more market panics and low tide of investments in the capital markets as the price could possibly go below $40 a barrel in the coming months.

Bad news for the capital markets if the fall in oil prices keeps on the same track in the coming months and the situation could even go from bad to worse if the majority of oil cartel “OPEC” defiantly stays on this rocky trail of pumping millions of barrels into the global commodity markets on daily basis.

We see both the regional and global markets plummet and needs different policies to be adopted by OPEC to let the markets steadily rally and hence the investors’ faith and confidence is revived.

Why fall in oil prices?

Being navigating between different analyses by different prominent economists and international market gurus, coupled with market news bulletins shared through the media of all types; to give a concurrent answer on the above question would take a time. But, make no mistake; if you look back at US, the domestic giant oil producers had almost doubled their production during the last half a decade. This has virtually marginalized the imports of huge volumes of crude oil from many OPEC member countries, like the Gulf, Persian allies, and African oil riches as well. According to NY times, in US average household would save nearly $800 of oil consumption expenses this year. Owing to this fact, you can simply know by the help of the basics of economics that the theory on “Demand Vs Supply” would justify and convince you about this untimely oil price dive.

On the other hand, when you look at the collective commitment of the world industrialized countries on lowering the green-gas emissions and promoting greener energy policies to safeguarding the environment. Many prominent European and East-Asian countries have developed a fuel efficient echo-friendly technology which would substantially slow down the greed demand for importing more oil from the OPEC members.

Who will feel the heat?

As the matter of fact, every country with oil based economic muscle would get bruised by this fall in oil price. Even USA would suffer a lot, as many loan ridden drilling companies need to pay back their debts to their respective lenders (banks) and answer their investors’ investments (shareholders), whereas many other small scale oil business could possibly wind-up their work. This would firstly depress the human capital in these fields and secondly many other businesses worldwide.

Theories on keeping Market share rather than the Price

Saudi Arabia (the biggest OPEC oil producer) and its allies’ continuous support of not cutting the daily output to enable the global commodity markets take a U-turn and stabilize the oil prices is the real force behind the oil decline. This is an absolute interest oriented move. According to them, they are on the course to take care of the market segment rather than the price. For, losing the market segment would benefit their market competitors and would sideline their production.

A question may there for be asked, why market segment rather than the price? The answer is so simple, on one hand, It’s real that Iraq and Libya, are pumping and even selling oil clandestinely in black markets which would saturate the potential oil markets and, on the other hand, as we have mentioned earlier USA are now relies much on their local oil production as they have doubled pumping oil during last five to six years, many other European counterparts have slowed down their oil consumption by the blessings of their technology as well. So, now the major market has become Asia (the world’s most populous continent) and OPEC members seems to be competing to secure their market grip in Asia rather than the price. After the market confirmation Saudi Arabia and their allies in the region say the prices would climb high, but this lies under a huge economic contingency as there is no credible outlook for maintaining their market segments to bolster the price. This reality could translate Saudi’s steadfastness on oil over-supply even if the price goes below $40 a barrel to bluffing only; and at this juncture, we cannot rule out any immediate move to a different direction by OPEC. In contrast, Algeria, Iran and Venezuela “a traditional hydro-carbon based economies trio”, are not happy with such low levels of oil prices and tried to find a different policy to heat up the price, by just cutting the high levels of oil pumping to leverage the market, but their collective efforts seem to have been swallowed by the mightiness of their competitors like Saudi Arabia.

Other floating theories on that the fall of prices is a clear policy against punishing Russia and Iran, could not possibly be a good testimony as both the countries are one of the most resourceful countries in the world. Furthermore, this problem would not ever be contained within them as it would be a shared responsibility by the global oil producers of all continents.

According to the International Monetary Fund (IMF), the gulf and its Persian oil giants could suffer a loss of about $300 billion this year alone if they fail to find an easy way out of this menace.

Finally, fall in oil prices could seem chilling news for an ordinary household as they would argue that they are enjoying with the fuel budget savings, but to worry about a potential regional or global depression seems to be viable as the oil acts the biggest drug that stimulates the global markets. As the financial markets rule the global economy, any loss of faith in investing would touch every level of our society, business institutions of all types would turn around to their cost cutting policies and in turn this would eventually damage the disposable income of every household (that’s you and me).

Khadar Hanan

E-mail: khadarhanan@gmail.com

Doha, Qatar.