Imagine if cross-border trade could flow as smoothly and efficiently as domestic logistics—how much time and cost would businesses save? The World Customs Organization (WCO) is working to turn this vision into reality. Under the framework of the UK's HM Revenue & Customs (HMRC) Trade Facilitation Capacity Building Programme, WCO is providing on-the-ground support to the Zambia Revenue Authority (ZRA) to establish an "Authorized Economic Operator" (AEO) program fully compliant with both the WCO's SAFE Framework Standards and Article 7.7 of the WTO Trade Facilitation Agreement.
Project Background and Objectives
As a landlocked African nation, trade facilitation is crucial for Zambia's economic development. Efficient customs clearance processes can reduce business operating costs while attracting foreign investment and boosting employment. Recognizing the AEO program's importance in enhancing trade efficiency, ZRA actively sought international cooperation to upgrade its existing Customs Client Accreditation Programme (CACP) to meet global standards.
The WCO's involvement responds to ZRA's request for assistance in developing a comprehensive, internationally compliant AEO program. This initiative must align with both WCO's SAFE Framework Standards and WTO Trade Facilitation Agreement requirements. Through collaboration with international experts, ZRA aims to incorporate global best practices to optimize customs procedures and enhance trade efficiency.
WCO's Comprehensive Support Package
The WCO has provided multi-faceted assistance to ZRA:
- Expert Mission: In March 2022, WCO deployed a three-member expert team from the South African Revenue Service (SARS), Burundi Customs, and US Customs and Border Protection (USCBP) to Zambia for on-site support. These specialists brought extensive AEO program design, implementation, and management experience.
- Remote Preparation: Preceding the physical mission, WCO delivered remote support in 2021 to help ZRA refine its CACP program, laying groundwork for more effective in-person consultations.
- Field Validation: The team conducted operational validations at a participating company to identify practical challenges and gaps in CACP implementation.
- Capacity Building: Intensive training sessions and discussions strengthened ZRA's AEO team's technical understanding and operational competencies.
Current Status and Development Needs
While ZRA's CACP has achieved notable progress—with growing numbers of accredited businesses enjoying expedited clearance—the program requires further development to meet full AEO standards, particularly regarding security protocols. Unlike CACP's compliance-focused approach, genuine AEO programs emphasize comprehensive supply chain security measures to prevent illicit use of goods.
Strategic Recommendations for Improvement
The WCO assessment identified several critical enhancement areas:
- Security Framework: Implementing robust security standards including staff training, cargo monitoring, and risk management systems.
- Streamlined Certification: Optimizing application processes with clearer guidelines and reduced processing times.
- Interagency Cooperation: Strengthening collaboration with other government entities and private sector partners to combat smuggling and fraud.
- Digital Transformation: Leveraging advanced IT solutions for program administration, including secure databases, analytics tools, and mobile applications.
Mutual Recognition Agreements and Regional Integration
ZRA highlights that WCO's capacity-building support directly advances its strategic objective of establishing Mutual Recognition Agreements (MRAs) with neighboring countries. Such agreements—where nations reciprocally recognize each other's AEO programs—can dramatically reduce trade barriers, operational costs, and processing times while fostering regional economic integration.
Future Collaboration Roadmap
The WCO anticipates continued strategic engagement with ZRA through the Mercator Programme. Supported by HMRC, the next three-year phase—"Accelerate Trade Facilitation"—launches in April 2022 with four key priorities:
- Advanced capacity building for AEO program management
- Technical assistance for digital transformation
- Support for developing MRAs with regional partners
- Program awareness campaigns to broaden business participation
Conclusion
The WCO's technical assistance to Zambia represents more than operational support—it embodies a meaningful contribution to developing nations' trade facilitation efforts. Through expert missions, remote guidance, field validations, and intensive training, ZRA has made substantial progress toward establishing an internationally recognized AEO program. The ongoing strategic partnership between WCO and ZRA promises to deliver lasting economic benefits, not just through enhanced customs efficiency but via strengthened business competitiveness and deeper regional economic integration. With sustained commitment and international cooperation, the vision of seamless, secure cross-border trade continues to move closer to reality.