The World Customs Organization (WCO; French: Organisation mondiale des douanes, OMD) is an intergovernmental organization headquartered in Brussels, Belgium. Notable projects include its collaboration with the WTO on trade facilitation and the implementation of the SAFE Framework of Standards to secure global supply chains. The WCO works on customs-related matters including the development of international conventions, instruments, and tools on topics such as commodity classification, valuation, rules of origin, collection of customs revenue, supply chain security, international trade facilitation, customs enforcement activities, combating counterfeiting in support of intellectual property rights (IPR), illegal drug enforcement, combating counterfeiting of medicinal drugs, illegal weapons trading, integrity promotion, and delivering sustainable capacity building to assist with customs reforms and modernization. The WCO maintains the international Harmonized System (HS) goods nomenclature, and administers the technical aspects of the World Trade Organization (WTO) Agreements on Customs Valuation and Rules of Origin. The WCO oversees the implementation of new technologies, artificial intelligence, to improve the efficiency of customs operations. Furthermore, the WCO is involved in addressing emerging issues, such as the digitalization of customs systems.
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History
On 23 August 1947 the Committee for European Economic Cooperation created a European Customs Union Study Group (ECUSG) to examine economic and technical issues of inter-European Customs Union concerning the rules of the General Agreement on Tariffs and Trade (GATT). In total, six ECUSG meetings were held in four years from November 1947 to June 1950. This work of ECUSG led to the adoption in 1950 of the Convention establishing the Customs Co-operation Council (CCC), which was signed in Brussels. On 26 January 1953 the CCC's inaugural session took place with the participation of 17 founding members. CCC membership subsequently expanded to cover all regions of the globe. In 1994, the organization adopted its current name, the World Customs Organization. Today, WCO members are responsible for customs controls in 187 countries representing more than 98 percent of all international trade.
One of the major turning points in the WCO’s history was its expansion beyond Europe, which allowed it to become a truly global organization. This expansion was fueled by the recognition of the need for standardized customs procedures across different regions of the world, particularly in the post-colonial period when many new nations were emerging. The WCO played a crucial role in helping these nations establish efficient customs administrations. In the 21st century, the WCO has emphasized digitalization and the harmonization of customs systems to address the challenges of global e-commerce and cross-border trade.
The development and implementation of the Harmonized System(HS) were direct institutional responses to the severe non-tariff barriers created by fragmented national customs nomenclatures during the late 20th century’s expansion of global trade. Prior to 1988, the lack of a universal classification language resulted in inconsistent product categorization across borders, generating significant uncertainty, administrative delays, and high transaction costs for internationally-trading firms.
Vision and objectives
The WCO is internationally acknowledged as the global center of customs expertise and plays a leading role in the discussion, development, promotion and implementation of modern customs systems and procedures. The WCO has supported the modernization of customs procedures in over 180 countries through initiatives like the Revised Kyoto Convention and the Harmonized System. It is responsive to the needs of its members and its strategic environment, and its instruments and best-practice approaches are recognized as the basis for sound customs administration throughout the world.
The WCO's primary objective is to enhance the efficiency effectiveness other members customs administrations, thereby assisting them to contribute successfully to national development goals, particularly revenue collection, national security, trade facilitation, community protection, and collection of trade statistics.
Instruments
In order to achieve its objectives, the WCO has adopted a number of customs instruments, including but not limited to the following:
Online tools
The World Customs Organization (WCO) released a new online platform, WCO Trade Tools, that encompasses the Harmonized System, preferential Rules of Origin and Valuation. It includes the 2002, 2007, 2012, 2017 and 2022 editions of the HS, around 400 Free Trade Agreements with their preferential Rules of Origin/ and Product Specific rules, and the set list of Valuation texts, including those of the Technical Committee on Customs Valuation.
Administration
The WCO Secretariat is headed by a Secretary General, who is elected by the WCO membership to a five-year term. Ian Saunders from the United States was elected WCO Secretary General in June 2023 and took office on 1 January 2024.
The WCO is governed by the council, which brings together all members of the organization once a year, in a meeting chaired by an elected chairperson. Additional strategic and management guidance is provided by the Policy and Finance committees.
There are several other WCO committees, including the Harmonized System Committee, the Permanent Technical Committee, the Technical Committee on Customs Valuation, Technical Committee on Rules of Origin, the Capacity Building Committee, and the SAFE Working Group.
Under the leadership of recent Secretaries General, the WCO has increasingly embraced digital transformation in customs practices, focusing on the adoption of technology to streamline border processes. These initiatives, such as the implementation of artificial intelligence in customs operations, have placed the WCO at the forefront of modern customs administration, ensuring that its members are well-equipped to face the challenges of an increasingly interconnected global economy.
Members
Status akin to WCO membership