FCA - UAE,Federal Customs Authority -United Arab Emirates

FCA - UAE,Federal Customs Authority -United Arab Emirates

Implementing UAE common electronic customs system
8/3/2019
In collaboration with local customs administrations, Federal Customs Authority initiated executive procedures to unify customs system across the United Arab Emirates and authorizing common customs electronic system within all local customs administrations and border zones to contribute to cementing security scheme, trade facilitation, simplifying clearing procedures, expediting information and data.

The honorable Cabinet authorize last June implementing common customs electronic system broadly in all customs administrations in the state and its affiliated zones under supervision of the Federal Customs Authority.

H.E. Ali Saeed Matar Al Neyadi, Customs Commissioner and Authority President said that implementing common customs system state wide contributes to achieving Emirates 2021 strategy objectives on two key pillars namely; Anchoring safe society rules and policies and building knowledge based competitive economy, he pointed out that new common customs system shall transform common customs strategic objectives to reality particularly with respect to reinforcing customs security scheme objectives to ensure seamless society security and developing customs operations to facilitate trade and travelers movement.

H.E. referred that customs electronic systems form the most effective tools in managing risk, customs control, clearing customs transactions and facilitating goods flow and that unifying customs systems in the state is one of key security and customs requirements of state common customs strategy.

"Unifying customs systems in the country is the foundation for integration among government entities, a key milestone in developing single window, constructing databases and information exchange within common knowledge context agreed upon among all customs administrations in accordance with best international practices to satisfy customs and security purposes at the same time." H.E. Authority President added.

H.E. Al Neyadi clarified that implementing common electronic system all over the state will contribute to fulfilling the GCC Customs Union requirements by supporting the mechanism of direct transformation towards direct customs duties among GCC countries as implemented by Emirati initiative in November 2015, he drew the attention that implementing the new system will contribute to accomplishing Al Azm Retreat outcomes between the United Arab Emirates and the Kingdom of Saudi Arabia thanks to implementing the initiatives of Customs Union and Gulf Common Market, and tackling mutual trade obstacles between both countries as well as working on implementing (Paperless customs) initiative by activating and developing electronic integration in both countries and implementing single window to all entities existing in interfacing zones and implementing the Authorized Economic Operator Program.

H.E. recalled that the Federal Customs Authority has conducted detailed study to customs systems implemented in the state by specialized subject matter experts committee in the Authority and local customs administrations which revealed dissimilarity of capacities in implemented systems in local administrations which covers various areas the most prominent of which; risk management, accounts, clearing, revenue and level of cooperation in information and data exchange in addition to policies and laws, the Authority has also conducted many international practices to avail from them which incorporated China, United Kingdom, Singapore and Sweden. 

Positive impacts

In the context talking about positive impact of new system implementation, H.E. Ali Al Neyadi said that implementing the new electronic system will cement performance level, promote compliance with customs procedures and security measures in border ports which will benefit local customs administrations, merchants, importers, exporters and cargo agencies by simplifying procedures, curtailing customs clearance time, speeding up cargo declarations, finalizing customs clearance operations, maximum benefit of available human resources in local departments, utilizing their potentials while contributing to reinforcing inspection and searching system of imported and exported shipments, combating smuggling, illicit trading in goods and commodities and implementing international commitments towards trade and customs.

H.E. states that common customs electronic system features sufficient resilience and capability of forward transition to fulfill future customs requirements and adjusting with modern techniques and contemporary customs concepts including artificial intelligence, smart risk engine, Blockchain, compliance culture in commercial supply chain, automation, and post clearance audit.

"Common electronic customs system augments federal system of tracking air and maritime consignment precisely all over the state in addition to reinforcing early disclosure system, diminishing human faults, promoting performance level in tracking travelers in land, air and maritime entry and exit points." H.E. added. 

H.E. Authority President pointed out that Authority plan encompasses implementing common customs system on stages the first of which will cover two local customs departments that possess essential infrastructure and capabilities, he indicated that entire system implementation in all local departments will take up 26 months according to the proposed timeframe schedule.

 

Steering Committee

As significant step in implementing the new system, H.E. Customs Commissioner, Authority President resolved forming "The Higher Committee on Unifying Customs System" headed by Customs Affairs Division Managing Director within the Authority, and encompasses members representing General Authority of Ports, Borders and Free Zones Security and local customs departments.

The resolution set the missions of the committee in overseeing the implementation plan of customs systems unifying project in state customs, authorizing detailed plan of implementation, execution and time schedule to complete the project, proposing memorandums of understanding with local customs departments and project stakeholders, laying down and authorizing system implementation plan from Authority President in addition to ensuring Authority and local customs departments readiness whether in technical or procedures aspects to complete data exchange process.

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