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FACILITATING INTRA-OIC TRADE:

Improving the Efficiency of the Customs Procedures in the OIC Member States

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by the exporter or the importer before cargo reaches to the border, so that release time

speeds up. According to Standard 3.25 of the RKC, national legislations of the

Contracting Countries shall make provision for the lodging and registering or checking

of the Goods declaration and supporting documents prior to the arrival of the goods. It

is important to note that although Customs may accept this data, it should not inform the

trader whether their goods will be released, with or without inspection, until after the

goods have actually arrived in the country (IFC 2007).

-Deferred Payment

Deferred duty/tax payment refers to the payment of duties and taxes for goods declared

over a specified period, e.g. 14 days, after the release of the goods, in one amount by

bank transfer or other non-cash payment method, to the Customs bank account or by

withdrawal by Customs from the trader's Customs account (UNECE 2012).

According to the Chapter 3.40 of the General Annex of the RKC, Goods declared shall

be released as soon as the Customs have examined them or decided not to examine

them, provided that:

- No offence has been found;

- The import or export license or any other documents required have been acquired;

- All permits relating to the procedure concerned have been acquired; and

- Any duties and taxes have been paid or that appropriate action has been taken to

ensure their collection.

Therefore, it is not mandatory according to the RKC to provide deferred payment.

However, Standard 4.9 states that “When national legislation specifies that the due date

may be after the release of the goods, that date shall be at least ten days after the release.

No interest shall be charged for the period between the date of release and the due date.”

Deferred payment not only expedites the clearance process but also reduces the

possibility of corruption, since it does not require payments in cash and in hand.

However, this method is not so common in many countries.

-Risk Management

International trade and international tourism increased dramatically over the last fifty

years. These developments increased the work load of the Customs Administrations. In

order to deal with the increasing cargo, Customs Administrations have developed risk

management techniques to conduct their clearance procedures effectively. The Chapter

6 of the General Annex of the RKC states that, during the application of customs

control, the customs shall use risk management. In this context, the customs shall

conduct risk analysis to determine which persons and which goods, including means of

transport, should be examined and the extent of the examination. Moreover, according