REPUBLIC OF TURKEY PRIME MINISTRY UNDERSECRETARIAT OF CUSTOMS Modernisation Project of Turkish Customs H. Cahit SOYSAL csoysal@gumruk. gov. tr
FACTORS AFFECTING CUSTOMS ADMINISTRATIONS n n n Growth in Trade Volume Trade Liberalisation Improvements in Technology Falling Transport and Communications Costs Increasing International Competition
WHAT IS EXPECTED FROM CUSTOMS? n n n Speed up the release of goods Rationalise the clearance of goods Simplify procedures Enhance customs control Create and transfer statistical data in a timely and reliable manner
MODERNISATION PROJECT OF TURKISH CUSTOMS Modernisation Project of Turkish Customs is a subcomponent of Public Financial Management Project (PFMP) that was signed in 1995 with World Bank in order to enable institutional reforms within Turkish Government l IMF also provided technical assistance to the project: During July 1996 -May 1999 2 Long term, 6 short term advisors worked for Turkish Customs l
FOCUS OF THE MODERNISATION PROJECT Development and implementation of Computer systems Modification of customs legislation and procedures to International Standards Reorganisation of customs administration
MODIFICATION OF CUSTOMS LEGISLATION New Customs Law, comprised of 254 articles, was discussed and passed from the Parliament New customs procedures were determined for the computerized customs offices 11. 02. 1999 27. 10. 1999 05. 02. 2000 Customs Regulation, comprised of 891 articles and 81 appendices came into force
DEVELOPMENT AND IMPLEMENTATION OF COMPUTER SYSTEMS A software called BİLGE (BİLgisayarlı Gümrük Etkinlikleri) (Computerized Customs Activities) has been developed and by the end of October 2001, 18 Regional Directorates and Directorates will be automated 47 Customs
DEVELOPMENT AND IMPLEMENTATION OF COMPUTER SYSTEMS The pilot implementation of the BİLGE system started August 1998 The international bid, for the deployment of the BİLGE system signed August 1999 January 2000 The pilot implementation of the CUSTOMS/EDI program started
DEVELOPMENT AND IMPLEMENTATION OF COMPUTER SYSTEMS The current rate of automated customs transactions and the estimated rate of customs transactions at the end of this year 100 90 80 70 60 50 40 30 20 10 0 %94%96 %91 %92 IMPORT EXPORT • May 2001 • END of 2001
REORGANISATION OF TURKISH CUSTOMS In order to flatten the organisation and become more efficient: • 120 customs directorates were either merged or closed down • The functions of Regional Directorate of Customs and Directorate of Customs Enforcement have been united to increase service efficiency in 5 regions
LESSONS LEARNT (I) Never think of an organisation as a large machine that can be taken apart and reassembled differently whenever needed! l Changes must be approached carefully with implications for both individuals and groups within the organisation l
LESSONS LEARNT (II) Commitment of Top Management & Assignment of A Project Leader • It is important to establish a Steering Committee to prove the support of top management • A chief executive should be assigned as the project manager and must have the power and authority needed to make the changes happen
LESSONS LEARNT (III) Commitment of Top Management & Assignment of A Project Leader Information era in Customs
LESSONS LEARNT (IV) Management of Change and Time Plan • It may be necessary to establish a permanent Project Unit with sufficient resources and must not be interrupted by daily operations • Change must be planned by developing an action plan
LESSONS LEARNT (V) Communication and Training • Change presents unknowns that cause anxiety • Communication with stakeholders is a very crucial feature for avoiding ambiguity-Do it as early as possible! • A Strategic Statement was very helpful in communicating the reasons and objectives of change to our stakeholders • Customs Consultative Committee also provided participation from trade bodies to our Project
LESSONS LEARNT (VI) Communication and Training • Adapting new technology means carrying out procedures in a totally new way which may cause fear • The fear of new technology can be eliminated by intensive training programmes
LESSONS LEARNT (VII) Confidence • Those who have power in the current situation may resist change since it threatens their power • Be confident about yourself and do not step back in case of any threat! No Change!
LESSONS LEARNT (VIII) Confidence Rebellion at the airport!
MONITORING & REINFORCEMENT It is very important to check after a suitable time to see if the changes are working well or not: • If something is going wrong, modifications must be made • On the other hand if changes are working well and the benefits can be demonstrated use this information to tell everyone to reinforce the transition
CHALLENGES • Implementation of e-commerce technologies will require more resources and expertise • E-commerce and the implementation of Just in Time techniques will increase the number of transactions • Adapting e-commerce technology always hold the possibility of cyber crime, sabotage and loss of system accidentally
Thank you very much for your attention www. gumruk. gov. tr
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