Financial Crime World

Burkina Faso Takes Steps to Enhance Compliance in International Trade

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Burkina Faso’s Customs Administration has taken significant steps to simplify trade procedures by implementing two key measures: an Advance Ruling Mechanism on tariff classification and Time Release Studies. These initiatives align with the World Trade Organization’s Agreement on Trade Facilitation, aiming to enhance trade predictability and compliance.

Advance Ruling Mechanism

The Advance Ruling Mechanism allows economic operators to request prior decisions from Customs on the classification, origin, and valuation of commodities before importation or exportation. This mechanism provides numerous benefits:

  • Greater certainty for traders regarding customs requirements and duty liabilities
  • Lower likelihood of customs intervention
  • Advance information on anticipated international trade transactions can be fed into risk management engines

Time Release Study

The WCO Time Release Study is an internationally recognized tool used to measure the actual time taken for goods release and clearance from arrival until physical release. The study assesses the effectiveness and efficiency of border procedures for imports, exports, and transit movements.

Burkina Faso’s Time Release Study results showed an average release time of five days and two hours at the Port of Ouagadougou. Recommendations for improvement include:

  • Enhancing risk management capacity
  • Ensuring implementation of risk assessment results
  • Developing competencies in post-clearance audit
  • Increasing working hours
  • Reducing redundant physical inspections
  • Facilitating online payment
  • Considering a Single Window

Project Implementation and Stakeholder Engagement

Burkina Faso received assistance from the World Customs Organization (WCO) in project management and stakeholder engagement as part of its West African Customs Administrations Modernization Project funded by the Swedish Government. The project aims to enhance customs modernization in West Africa, focusing on strategic management, human resource management, and stakeholder engagement.

Roadmap for Implementation

The Customs Administration adopted a project management methodology, established a Project Management Unit, and trained officers on project management. For the Advance Ruling Mechanism, Burkina Faso followed a roadmap that included:

  • Consultations with the private sector
  • Development of a procedure and legal framework
  • Training for customs officers
  • Database development
  • Sensitization of all frontline staff and the private sector

Launch and Future Plans

The mechanism was piloted in 2018 and received positive feedback from traders. The Customs Administration has formally launched the mechanism and plans to reach out to the private sector to enhance its nomenclature department.

In conclusion, the establishment of the Advance Ruling Mechanism and publication of the Time Release Study results will enhance trade predictability in Burkina Faso. These efforts have already contributed significantly to improving collaboration between Customs and the private sector.