#1GUSTON U PACER PLUS PARTIES - 2024 REVENUE MOBOLIZATION DIALOGUE - 27th 29th February 2024, Nadi Country Presentation: Republic of Vanuatu#2OVERVIEW • Back Ground • Single Window Project in Vanuatu Leveraging Single window to increase Revenue Key Achievements • Trade Statistic • Revenue status • Lessons Learnt and Recommendation 2#3BACKGROUND Coral Sea FED STATES OF MICRONESIA Hi Tegua Le Toge ILES TORRES Vor Tanda Uréparapara LES ROWA Mota Lave TORBA Vanua Lava Mots Sola LES BANKS Santa Maria Mérig Lava Lath SANMA Bay Part-Olry Naone Espiritu Santo Latar Longana Madwo Maria Aoba Passag NEW ord Malo Parteson Lelang PENAMA Pentecôte Lakatore Malakula Ambrym MALAMPA Lire Paame Tomman Ringdave MARSHALL ISLANDS NORTH PACIFIC OCEAN Vanuatu National capital TORBA Province name Province capital Road Lope έρι Morus Tengos Tangan EndILES SHEPHERD Makuve Malaso SHEFA Nguna Mor- Emso Elate Pert-Vila Ferari HEBRIDES Unpongkor Erromango 25 00 75 100 Kilometers 25 50 75 Mercator Projection SOUTH PACIFIC Manung Ipsta TAFEA Tanna Ireupue SAMOA Isangel NAURU KIRIBATI PAPUA NEW GUINEA SOUTH SOLOMON ISLANDS TUVALU PACIFIC Cival Dies VANUATU PUR TONGA 20 New Caledonia FRANCE OCEAN AUSTRALIA New Caledonia FRANCE 10 Ourds Anelghowhat 100 Miles OCEAN Anatom 170 3 Located in the South Pacific Ocean Land area of 12,189 sq.km (4,706 sq mi), 83 Islands (13 larger islands and 70 smaller islands Official language: French, English, Bislama 134 - native languages Population 334,506#44 Vanuatu Ports 3 International Ports (ISPS Compliance) Cargo, Cruise ships, Petroleum, Gas Tanker, Army ships 1. Port Vila Cruise International Port Port Vila 2. Lapetasi International Port - Port Vila 3. Luganville International Port - Santo The approved Port Port Of Of Entries to facilitate yachts and other ships entry: 1. Port Vila- Efate 2. Lenakel on Tanna 3. Luganville on Santo 4. Sola on Vanua-Lava www Port Vila Cruise International Port Ifira International Port Luganville International Port AL TOUI Service#5Vanuatu Customs & Inland Revenue Mandate International Framework • Member Of WCO Ratify Pacer Plus Agreement 11th October 2020. Ratify Trade Facilitation Agreement in 2020 National Frameworks • Customs ACT No.7 of 2013 • Excise ACT No.24 of 2002 • TAA (Tax Administration Act No.37 of 2018. 5#6Why Single window • Trade Procedures in Vanuatu have been inefficient, lengthy and slow resulting in high cost of trade transaction/doing business. The main reason are as follows; Many stakeholders involved in cargo clearance process. Stakeholders exchange many documents among themselves. Stakeholders ends up sending the same document to each other many times. Exchanges are in hard copy form in most cases, processing of information is carried out manually. Perennial congestion at the port facilities and ultimately. Loss competitiveness of the country. 6#7Single Window Project in Vanuatu 221 2 Electronic Single Window 22222 2222 Project Van 7 ברהההה#8Single Window 8 ASYCUDA World was implemented in 1999 to facilitate trade, collect revenue, and protect the borders of Vanuatu In the past (1999-2017) clearance of goods takes a lot of time and too much paper between trader and regulatory agency. Regulatory requirements have not link with clearance of customs and it delays import and export of goods and affect border protection With the Introduction of Single Window in 2019, clearance of good become more efficient through online processing. It Facilitated work for traders, regulatory agencies and customs clearance has become more easier with less paper. Vanuatu's Electronic Single Window system enables businesses to submit and pay for import and export certificates, licenses and permits online.#99 SINGLE Window- Modules Government and Regulatory Agency Biosecurity Environment unit Energy Unit TRBR Vanuatu POST FTA NDMO Health Fisheries Ensure plant and animal product import are safe and expo meet standard and a our requirements or our market Control import of GAS of cooling system such gas, Air Con fridge, freezer and to protect the export or import on endangered Plant and animal in Vanuatu. To control energy appliance that use a lot of power, of go quality and environment friendly. Allow import of telecommunication device such as Mobile Phone, radio that meet standards of good quality Link the system to facilitate E-commerce in Vanuatu Certificate of Origin ROO to export their product to other countries. Approve import of imports of Humanatarian supplies and distribution during disaster. Control import of medicine/pharmaceutical product are s and effective for people to use. Regulate and protect and sustain the export of marine an#10Other VeSW Module Concession Module currently used by Industry, Tourism and customs. 10#11Leveraging Single Window to Increase Revenue Use or repaid account in Customs to facilitate payment • Use of prepaid and credit accounts at the VeSW agencies to facilitate payments for permits and certificate. • Use of Bred Bank Online Payment Facility to facilitate payments in real-time • Customs and Finance accepting bank transfers made to government accounts for payments of customs dues. • Currently working with ANZ for VISA/Credit card e-Gate payment facility to facilitate payments in real-time. 11#12Continue; 12 • Have done work with the National Payment System (NPS) to facilitate payments via different banks, hopefully this will go alive in 2024. • Interface with Finance is listed in Phase III of the VeSW Project to facilitate deposits of customs daily collections. • Note: the above payment initiatives have contributed to facilitating trade.#13KEY ACHIEVEMENTS - BENEFITS OF CUSTOMS SINGLE 13 WINDOW Government Effective & Efficient Deployment of Resources Correct Revenue Yield Improved Trader Compliance Enhanced Security Increased Integrity & Transparency Single Window . Traders Cutting Costs through Reducing Delays Faster Clearance & Release Predictable Application and Explanation of Rules Effective & Efficient Deployment of Resources Increased Transparency#14Resource Distribution Customs Procedures and processes Modernised risk-based approach for Customs I I I I Automated processing through integrated risk assessment Compliance audits (customs regimes) Entity based performance audits (systems & process) Proactive Periodic declarations & Simplifications client management Removing mandatory checks Post Modernisation. resource distribution I I I Value-Adding Activities Registration Declaration Assessment Inspection Inspection Audit Current resource distribution AGCOTE TUMISS ALTOUT Service 14#15Integration of Selectivity 15 • We also acknowledged that the Selectivity module was implemented, and this is when automating the Biosecurity clearance process at the Border to manage the issuance of SPS permits and certificates. • This has fulfils the International standards and recommendation of countries having a single window environment where all the key players such as customs brokers, traders and agents are required to submit cargo and clearance documents to borders agencies at one single place. This reforms initiatives are efforts to continue to facilitate trade in Vanuatu and to ensure border control are well managed and coordinated by both customs & Other Agencies.#16TRADE STATISTIC VOLUME OF TRADE Year Import Declaration TOTAL CIF 2019 26,925 28,015,094,315 2020 19,095 26,246,677,104 2021 21,071 2022 7,532 2023 26,449 30,905,294,609 12,779,645.033* 68,547,713,607 16#17Year Export Declaration 2019 2,786 2020 1,634 2021 1,512 VOLUME OF TRADE TOTAL CIF 9,726,797,865 6,219,166,281 6,752,676,572 2022 582 3,103,748,230* 2023 2,677 14,418,480,024 , 17#18REVENUE STATUS Revenue Target Year (VT) Actual Revenue (VT) 12.8B 2017 15,015,568,464 16.3B 2018 16,919,327,503 17B 2019 17,099,532,384 17.3B 2020 14,584,187,024 17.3B 2021 16,557,203,962 19.1 B 18,100,892,316 19.3 B 2023 22.1 B 18#19Lessons Learnt and RECOMMENDATION 19 Finally, the Journey during the implementation of Technology- ( SINGLE Window)has given certain lessons; 1. Brokers and Traders not willing to use such payment initiative. They prepare to stick to the old fashion mode of payments with cash and cheques. 2. Other Banks, other than Bred Bank, don't have the online payment facility to link with ASYCUDA. 3. Checking bank transfers has delays because accounts have verify payments before the invoices can be receipted in ASYUDA. 4. Struggling to meet the merchant policy requirements to enable the implementation of the ANZ e-Gate payment facility due to lack legal expertise to provide such policies to cover Customs Payments. 5. Despite the available technology in ASYCUDA, developing online payment interface with Banks is challenging to ensure that requirements and technologies are compatible. This process that can take up to a year to implement. 6. NPS is till pending after working with the RBV team since 2019 to implement the facility.#20Recommendation 20 1. 2. 3. Continuous awareness to the trading community to use the available payment facilities is necessary. Put in policy to discourage the use of cash and cheques, due to risks and bottleneck these mode of payments create to trade facilitation. Commitments and dedication are required from both the system team and the banks to ensure the successful implementation of online payment facilities. Finally, Vanuatu Customs Administration recognized early the importance of automation in revenue collection administration reform. Implementation of the Single Window appears to have been more successful and lasting than other reforms.#21The End Tank yu Tumas! 7545 21