STRATEGIC
OBJECTIVE

WORK PROGRAM

TIMEFRAME/ PARTNERS

1.Strengthen

Revenue

Collection

a. implement government orders to prevent and combat smuggling through close cooperation with the military, police, and local authorities

Continuing

b. cooperate with Tax Department in exchanging information

Continuing/TD

on firms for the purpose of strengthening their tax discipline

and obligation - this establishes an integrated tax system and

assists audits

c. implement transparent but flexible measures on sensitive

Continuing/MEF

goods to ensure revenue

2. Enhance the

Legal Framework

– revise law for

modern customs

operations and to

meet international

commitments and

standards

a. develop new draft Law on Customs

2002-2003/IMF

b. draft Sub-Decrees and Prakas to implement the law

2002-2003/IMF

c. organize training courses on the new law for Customs

2003-2004/ donors

officers and stakeholders

2003-2004/

d. translate and publish manual on Law on Customs and

donors

related regulations

3. Improve Trade

Statistics and

Revenue Analysis

–through

computer

hardwareand

software and

training

a. evaluate current data collection system - in terms of

Feb-Mar2002/

accuracy and security, data processing and transfer, report

SGS

format, automation, networking, CED ownership, etc.

b. install computer hardware and software for modern

2002-2003/SGS

statistical work

c. implement recommendations of the assessment of the

2002-2003

statistical system

d. provide training courses on trade statistics and revenue

2003

analysis to officers

e. produce timely and reliable trade statistics and revenue

quarterly

analysis

4. Implement

Tariff

Restructuring and

the ASEAN

Harmonized Tariff

Nomenclature –

rationalize tariffs

to 4 tariff bands,

reduce maximum

rate to 35% and

un-weighted

average to 15%,

adopt AHTN

a. study the impact of tariff restructuring on revenue, trade,

2002-2003/IMF

and local production

b. convert national nomenclature to AHTN

2002-2003

c. reduce the unweighted average tariff rate to below 15% - an

2003

opportunity to rationalize tariffs while maintaining revenue

neutrality

d. publish new Customs tariff nomenclature

2003

e. organize training courses on HS and AHTN - for officers

ongoing/donors

and other government officials (300-400), traders and brokers

(120-150)

f. follow up and prepare to implement HS2007 (new)

2005-2006

5. Simplify and

Modernize

Customs

Procedures –

streamline

procedures for

trade facilitation

and effective

operations

a. review and simplify current Customs procedures

2003

b. adopt new simplified Customs procedures – starting with

2003

Prakas and Sub-Decrees, new procedures and structures,

awareness and training program

c. review and assess PSI, recommend options – scope,

2003/IMF →

mechanism, fee structure, technical assistance

2004

d. enhance and expand the Green Lane system –risk

2004-2008

management criteria needed

e. translate RKC into Khmer

2004/Japan

f. implement new payment system (new)

2005/MEF

g. pilot test Single Window and Single Stop Customs

2005-2006/

Inspection (new)

WB/ADB

h. adopt CED Client Service Charter (new)

2005

6. Implement

Post-Clearance

Audit – to ensure

compliance with

Customs

procedures

a. prepare the legal basis for PCA – include in draft law, and

2002-2005

activate new Audit office

b. develop manual on PCA

2002-2003/JICA

c. train Customs officers on PCA principles and techniques

2003-2004/donors

d. conduct seminars/workshops on PCA for business clients

2003-2004/JICA

e. organize Audit team to implement PCA

2003→2004

f. translate and publish ASEAN PCA Manual and Blueprint

2005/JICA

(new)

7. Strengthen

Enforcement

Capacity –

implement

enforcement

strategy based on

risk management

principles to

enhance

compliance and

reduce fraud and

illegal cross

border activities

a. formulate comprehensive enforcement strategy and

2002

program based on risk management

b. restructure the Anti-Smuggling Office so that headquarters

2003-2008

handles policy formulation, research and intelligence

gathering, analysis, risk management, and overall

management of enforcement, while operational mobile teams

deal with investigation and suppression

c. establish and strengthen the Customs Marine Team

2004-2006

d. strengthen the Mobile Anti-Smuggling Teams of Customs

2003-2008

offices and provincial branches

e. enhance capacity to prevent and suppress illegal drug

2003-2008/donors

trafficking through training, provision of drug detection

equipment, and establishment of airport contact points

8. Expand

International

Relations –

multilateral and

bilateral relations

under the

framework of

accession to

WTO,

membership in

WCO and ASEAN

and deriving

maximum benefit,

active

participation in

international fora

a. prepare to implement the WTO Agreement on Customs

2002-2008/donors

Valuation – also study impact, train officers, organize

seminars, establish working group to monitor, implement, and

solve disputes, publish ACVG, coordinate technical assistance

b. participate in tariff negotiations – with WTO accession

2002-2003

c. accede to international conventions such as HS, RKC, ATA

2002-2008

Carnet and others

d. fulfill obligations to ASEAN and the Greater Mekong

ongoing

Subregion Economic Cooperation Program

e. participate in regional cooperation efforts to combat cross-

ongoing/donors

border smuggling, commercial fraud/IPR infringements, and

international crime

f. seek technical assistance and training programs from

ongoing/donors

multilateral and bilateral counterparts

g. conclude memoranda of understanding on cooperation and

2001-2003/

mutual assistance with Thai, Lao PDR, and Vietnam Customs

Thai-Lao-Vietnam

Administrations

9. Use Information

Technology for

Customs

Automation –

maximize use of

IT to improve

operating

efficiency and

service; longterm

goal is fully

automated

systems for

Customs

processes

a. develop IT framework for Customs

2002/SGS

b. evaluate Customs automation

2003/IMF

c. prepare legal framework/regulations for IT application

2003

d. select IT system and formulate project – improve statistical

2003

data collection system, introduce linkage with SGS, identify

knowledge gaps from automation, prepare to initiate IT

program, implement IT strategy

e. conduct training courses on automation

2003/donors

f. implement pilot automation projects at headquarters,

2004

Sihanoukville port and Dryports

g. roll-out automation project to Phnom Penh International

2004-2006

airport, Export Office and Excise Office

h. install IT equipment: TC-Scan at Sihanoukville, X-ray

2003-2008/

machines at Pochentong and Siem Reap airports and Poi Pet,

Japan , other

metal and explosive detector devices and computers

donors

10. Implement

Organizational

Reform and

Human

Resources

a. develop and execute organizational restructuring plan with:

(i) revised structure and decentralized authority to provincial

2003-2008

branches with reporting system

(ii) upgrade rank of CED to Royal Customs and Excise

2003/MEF

General Department

Development -

implement new

structure to better

meet changed

need, and

human resource

development plan

with recruitment

and training

b. execute human resource development through:

(i) comprehensive training program to strengthen management

ongoing/donors

and technical skills

(ii) establishment of Customs Training Center and regular

2002-2008/

training programs – need foreign assistance

SGS. Japan

(iii) recruitment of 30–50 highly qualified staff per year through

2003-2008/

open examination of public servants

MEF

c. with implement integrity program through:

(i) internal audit unit reporting directly to Director General

2002-2003

(ii) staff remuneration and promotion policy- incentive bonus,

2002-2008/MEF

performance profiles

(iii) strict disciplinary action for malfeasance

ongoing

(iv) Code of Conduct and Ethics

2003→2004-2005

(v) transparent and rule-based rotation of staff

ongoing/MEF

(vi) physical education and high-morale lifestyle

ongoing

d. establish reference library with 3 computers and internet

2003/MEF

access

11. Modernize

Physical

Infrastructure and

Tool – implement

infrastructure plan

to ensure that

CED is improved

with adequate

office and

examination

facilities,

equipment,

computers,

enforcement tools

a. access infrastructure needs and formulate plan

2003/IMF

b. construct/expand buildings and provide equipment to

2002-2008/

headquarters, provincial and surveillance customs

MEF, donors

stations

c. expand/construct posts, examination yards, and storage

2002-2008/

warehouses

MEF, donors

d. set up a small Customs museum at headquarters

2003/donors

e. set up a small laboratory at headquarters

2004/JICA→

2005

f. establish a printing house for Customs documents

2004/donors →

2005

g. improve telecommunications and enforcement tools at

2002-2008/

provincial branches and checkpoints

MEF, donors

12. Improve

Quality of Service

and Facilitate

Trade – provide

prompt, reliable,

and professional

service to

legitimate

business

a. implement public relations program with designated

2003

Departmental Communications Officer (Information Desk)

b. develop communications strategy to inform trade and

2002-2003

stakeholders about the reform program

c. establish a Trade Consultative Committee for consulting

2002-2003

clients on changes in operational procedures and policies

d. establish a reliable dispute settlement mechanism with clear

2003

responsibility and mandates

e. establish formal relationships with the Chambers of

2003-2008/

Commerce, Transport/Freight Forwarder and Customs

associations

Brokers Associations through Memoranda of Understanding

f. install "complaint and suggestion boxes" at headquarters,

2003-2004

officers, branches, and draft procedures and rules for dealing

with complaints

g. publish Customs bulletins and annual Customs reports for

ongoing

disseminating information to the public

h. improve and expand the CED homepage

2003-2008

13. Manage the

Reform Programs

- establish

management

structure,

including

adjustment of the

plan and reporting

of results to MEF

and Government

a. set up a Customs Reform Working Group at CED

Done

b. establish a Customs Reform Steering Committee

Done/MEF

c. conduct periodic evaluation of the progress of

ongoing/CRWG-

implementation and define adjustments to the Works Plan as

CRSC

required

d. mobilize and coordinate technical assistance to implement

the Reform Strategy and Work Programs

Every 6 months/

e. prepare and publish progress/outcome reports on the

CRWG-CRSC

Reform Strategy and Work Program