8 July 1998

Improving Efficiency of Pacific Island Customs Departments

The Assistant Treasurer, Senator Rod Kemp, speaking at the 1998 Forum Economic Ministers Meeting in Nadi, Fiji, has announced the Australian Governments support for a project to help Pacific Island countries strengthen the efficiency and integrity of their customs departments.

Australia will provide $6.5 million over three years to introduce the Automated System for Customs Data (ASYCUDA) customs processing system, and associated advice and training. This fulfils a commitment made at the 1997 Forum Economic Ministers Meeting, and was referred to in the Action Plan agreed at that meeting.

Provision of the new ASYCUDA system will reduce trade costs, make customs clearance procedures both simpler and more rigorous, and produce more accurate and timely trade data. It will also strengthen the capacity of customs departments to detect illegal shipments, including illicit drugs.

Currently, the customs agencies of most Pacific Island countries process import and export documentation manually, leading to inefficiencies and increasing trade costs. The introduction of automated systems, and associated changes to the agencies structures and procedures, can dramatically speed up processing and reduce the scope for fraud.

An effective and efficient customs service is of central importance to Pacific Island countries which are very open, trade dependent economies. Most imports are for essential commodities such as food, petroleum, machinery and other capital equipment.

The ASYCUDA project will be implemented by the United Nations Conference on Trade and Development (UNCTAD) in Samoa, Fiji and Vanuatu. It will be funded through the Australian Governments overseas aid agency, AusAID.

Activities under this project will complement other Australian Government projects in the customs departments of Samoa and Fiji.

8 July 1998
Nadi, Fiji

Contact:
Penny Farnsworth,
Assistant Treasurers Office
61 2 6277 7360

Matt Francis,
AusAID
61 2 6206 4967