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The 6th IATA World Cargo Symposium

Collection of Speeches - Dato' Shaharuddin bin Ibrahim

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Welcoming Address by Y.Bhg. Dato' Shaharuddin bin Ibrahim, Deputy Director General of Customs and Internal Taxes,
The Royal Malaysian Customs, Putrajaya.
Date : 13-15 March 2012
Venue : Shangri La Hotel, Kuala Lumpur

Bismillahirahmannirahim

Thank you Mr Chairman, Mr. Dietmar Jost, Advisor in Customs and Security of Global Express Association (GEA)

Distinguished Guests, Speakers and participants of the 6th IATA World Cargo Symposium 2012,  

Assalamualaikum and a very good morning to all.

It is an honour for me to address such an impressive audience of this grand annual event of the International Air Transport Association or IATA. I would like to thank the organizer for inviting Malaysian Customs to this symposium and to welcome you, with pleasure to this ‘Customs Track’ session of the World Cargo Symposium 2012.

Mr. Chair, Ladies and Gentlemen,

I would like to thank IATA and the organizer for choosing Malaysia as the venue for the symposium this year. I understand that this is already your third day of the program but, never the less, on behalf of the Royal Malaysian Customs, and the Government of Malaysia; I would like to welcome all of you to Kuala Lumpur and its splendour. I believe you are enjoying your stay here, and if you haven’t please find some time to explore the exciting places and wide variety of foods that Kuala Lumpur has to offer. I am sure the organizer is very much obliged to assist you in the matter in any way they could.

Distinguished Guests, Ladies and Gentlemen.

This has been the sixth World Cargo Symposium organized by IATA, and I would like to applaud the efforts made by IATA and for its success in organizing this very important event every year since the first time in Mexico City in 2007.

In any event held, the main success that count is, in achieving the goal and objectives of the event and, most important of all, is for the participants to get the best of what was expected from the symposium. I sure this is the case for you this time in Kuala Lumpur.

Distinguished Guests, Ladies and Gentlemen.

IATA is a non-governmental association but nevertheless needs to works closely with governments or the policy makers to achieve its vision for the members.

The Symposium theme for this year “Partnership at Work” is suggesting the importance of partnership in the working environment for all of us. As we all know Customs is one of the partners to share the load in facilitating and ensuring the security of air cargo supply chain. In this era of ever increasing customer expectation and the demand of economics, Customs has no choice but to evolve and improve its output in order to be relevant to the clients and the stakeholders. Our officers need to keep abreast with all the new developments in trade and new security measures. The task is made more challenging in this borderless world today as we try to strike a balance between facilitation and security control.

Distinguished Guests, Ladies and Gentlemen

In finding the best way forward, Customs Administrations are guided internationally with tools and instruments such as;

  • The Revised Kyoto Convention which is aimed at simplification and harmonization of Customs procedures, by providing administrative basis and practical guidance to ensure effective implementation,

And,

  • WCO SAFE Framework of Standards to Secure and Facilitate Global Trade (SAFE FoS).

Ladies and Gentlemen

Taking the spirit of Customs-Business Partnership by using these tools, Royal Malaysian Customs has taken the initiatives to develop a Customs facilitation program named Customs Golden Client or CGC in 2004, in order to facilitate our highly compliant clients which have met minimal supply chain security standards as defined in the fourth Core elements of SAFE.  This program was later improved and enhanced in term of security requirements and user system to become an AEO Program. Malaysia AEO program was officially launched in January 2010. Malaysian AEO provides simplified procedures, less human intervention and direct access to Customs for the authorized operators. AEOs are now reaping the benefits in term of money, less manpower and faster clearance.

Currently Malaysian Customs is actively promoting our AEO program to potential clients and continuously developing our AEO program to increase the scope of business to apply for AEO status. By February this year Malaysian Customs has authorized 32 AEO statuses and is processing 57 new applications for the status.

To further increase the benefits of AEOs beginning of June last year Malaysian Customs has started negotiation meeting with Japan Customs to reach Mutual Recognition of our AEO programs. Upon signing of this MRA with Japan we expect better Customs facilitation for exports from Malaysians’ AEOs to Japan and vice versa.

Ladies and Gentlemen

In order to ensure supply chain security without reducing the facilitation given, we have to relay more and more on technology and risk management methodology, and less human intervention in our process. To address this issue Malaysian Customs is gradually replacing and enhancing its procedures and systems at work. We have started our Business Process Reengineering (BPR) effort early this year and in the process of replacing our old system with a new system to incorporate better risk management and highly electronic environment process. At the national level Malaysia is taking efforts to promote our National single Window application and is actively embarking on the ASEAN Single Window project.

To implement these new way of working, the whole workforce of public and privet sector needs to be able to adapt to these changes.  We need to focus on Capacity Building not only on our officers but also those of our clients’. Malaysian Customs has been having joint training program with groups of clients in major areas of work. There are also regular Panel Meetings and ad hoc round tables with the Public Sector established at most levels of decision making in the department as well as at the national level. These are “partnerships at work” practices that we practice in Malaysia.

However the challenges continue provoking us as we face new developments and new requirements in our work and I believe we can always do better by working together to succeed and to find the win-win situation for all of us.

Distinguished Speakers, Ladies and Gentlemen

I am glad to have in this forum, renown resource persons and speakers who have the expertise in customs matters to facilitate discussion on the issues put forward especially on recommended programs by the World Customs Organization such as AEO programs and advance electronic information and to further enhance the inter reliant of roles of Customs and Business to mould our way of working together in future.

I would like to congratulate all of you for participating in this symposium especially for this morning session  where you will have the opportunity to exchange of views and sharing of experiences in this forum which we hope will bring forth better understanding of each other requirements which in turn lead to closer cooperation between Customs and the business communities.

Distinguished Speakers, Ladies and Gentlemen

I wish all the best to you and have a good forum.

Thank you.

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