MCC Customs Administration Modernization Program Results To-date and Lessons Learned

1. First Arab Trade and Logistics Conference Aqaba, Jordan November 12-13, 2007 MCC Customs Administration Modernization Program � Results To-date and Lessons Learned The CAMP is a two-year project funded by the MCC, administered by USAID, and implemented by a US-based private sector contractor ARD. I will explain more about the MCC in my presentation. This presentation may be most useful for other countries thinking to upgrade to ASYCUDAWorld� I will describe the relationships between various international agencies here in Jordan who came together to ensure the successful launch of ASYCUDAWorld, and I will speak about the lessons we have learned so far, 10 months into the ProjectThe CAMP is a two-year project funded by the MCC, administered by USAID, and implemented by a US-based private sector contractor ARD. I will explain more about the MCC in my presentation. This presentation may be most useful for other countries thinking to upgrade to ASYCUDAWorld� I will describe the relationships between various international agencies here in Jordan who came together to ensure the successful launch of ASYCUDAWorld, and I will speak about the lessons we have learned so far, 10 months into the Project

2. Contents MCC Threshold Country Program MCC Indicators, Trade Freedom Score Innovative Donor Relationship Program Role in ASYCUDAWorld Implementation Results: Expected and Achieved To-date Lessons Learned

3. The MCC Threshold Program Millennium Challenge Corporation New US Government assistance mechanism since Jan. 2004 Designed as an innovative aid mechanism Host country develops own plans to address policy weaknesses Encourages countries that are: Ruling justly Investing in people Encouraging economic freedom

4. MCC Indicators

5. Heritage Foundation�s Trade Freedom Score Score based on trade-weighted average tariff rates and existence of Non-Tariff Barriers �NTBs� Jordan�s weighted tariff is 7.9% (2005) �The government has made progress in liberalizing the trade regime� but� �NTBs: Import restrictions, import bans, import taxes and fees, red tape and delays in customs, and import licensing requirements

6. How GoJ Will Improve Its Score Launch an integrated program to improve the efficiency of the Customs Department Implement a single window facility Upgrade the ASYCUDA Customs clearance system

7. Reduce Non-Tariff Barriers (Heritage Foundation Trade Freedom score above median of LMIC peers) Reduce the number of documents required to import / export goods Reduce the number of government signatures required to import / export Reduce the number of days to import / export Anticipated Results for Customs Modernization Program

8. Innovative Donor Relationship MCC $ for ASYCUDA through USAID (through contractor ARD) to UNCTAD

9. Program�s Contribution to ASYCUDAWorld Implementation Financial support from the MCC to UNCTAD for Jordan�s implementation Procurement of SOClass software Procurement of Oracle databases Upgrade of telecommunications infrastructure Assure integration of ASYCUDAWorld with other JC ICT systems.

10. Program�s Contribution to ASYCUDAWorld Implementation Data centers and disaster recovery center Fully equipped ASYCUDA training room Support for training for Customs officers, brokers, traders

11. Key Results to-date Multi-million dollar procurements in Information and Communications Technology upgrades for Jordan Customs; Support for Training on ASYCUDAWorld: 50 port officers at ASEZ Customs, 100 Customs brokers at Aqaba, 50 shipping agents in Aqaba, 54 brokers at Sahab 46 Customs officers at Sahab; 11 brokers at Al-Raqeem 6 Customs officers at Al-Raqeem

12. Key Results to-date Supported the Implementation of new automated Customs clearance system ASYCUDAWorld at: Aqaba Special Economic Zone (ASEZ) Customs, Sahab Customs Center, Al-Raqeem Customs Center (November 10, 2007). On track for complete ASYCUDAWorld implementation

13. Key Results, continued IT Project Management Training. 18 Jordan Customs and 2 ASEZ Customs IT officers SoClass Software Training 20 Jordan Customs and 4 ASEZ Customs IT officers.

14. Critical Success Factors WCO guidelines for Customs capacity building: Sustained high-level political will and commitment Greater ownership and participation of Customs personnel Accurate diagnostics and country-specific responses Realistic government and donor expectations Adequate human and financial resources Enhanced cooperation and coherence

15. Lessons Learned High level commitment from counterparts in Customs is critical: Commitment from ASEZ Customs and Jordan Customs to upgrade to ASYCUDAWorld Clear understanding of the benefits of ASYCUDAWorld for improved competitiveness of Jordanian businesses Government motivation to qualify for MCC Compact funding

16. Lessons Learned Greater Ownership and Participation of Customs Personnel leads to improved results: As MCC project, Jordan Customs designed the project scope of work Senior level Customs officials seconded to the Project team Implementation teams include officials from Jordan Customs

17. Lessons Learned Coordination, cooperation, and coherence: Sharing work plans, timelines with UNCTAD Developing flexible work-around solutions to ensure successful implementation on original timeline Such as procurement of telecommunications lines Regular meetings with other Customs consultancy activities (such as EU-funded Twinning Project)

18. Lessons Learned Further improvements needed: integrate and link systems of other government agencies deployed at the Customs centers through ASYCUDAWorld Need to integrate risk management systems of relevant government agencies (such as JFDA, Ministry of Agriculture, JISM, Ministry of Health)

19. Questions?