WCO Reviews Kyoto Convention to Address Global Trade Challenges

The 24th Session of the Revised Kyoto Convention (RKC) Management Committee focused on advancing a comprehensive review of the RKC. The meeting assessed the alignment of proposals with the Convention and existing tools to address new global trade challenges such as the pandemic, information technology, e-commerce, and supply chain security. Emphasis was placed on inclusivity, welcoming Liberia, Turkmenistan, and Uzbekistan as new contracting parties. This collective effort contributes to global trade facilitation and security, ensuring the RKC remains relevant and effective in the modern trading environment.
WCO Reviews Kyoto Convention to Address Global Trade Challenges

As global trade undergoes profound transformations, the World Customs Organization (WCO) is actively working to ensure its cornerstone instrument—the Revised Kyoto Convention (RKC)—remains relevant in today's evolving international trade landscape. From March 1-5, 2021, the RKC Management Committee (RKC/MC) held its 24th session, focusing on advancing a comprehensive review of the convention to address current and future challenges.

Meeting Overview

The virtual meeting attracted over 130 participants worldwide, demonstrating broad international recognition of the RKC's importance. Discussions centered on the second phase of the comprehensive review, which evaluates proposed recommendations against the RKC, related guidelines, and other existing WCO tools.

The RKC/MC has established a "four-step framework" to guide the review process:

  • Step 1: Submission of proposals and formulation of recommendations
  • Step 2: Assessment of recommendations against the RKC, guidelines, and existing WCO tools
  • Step 3: Evaluation of whether recommendations require RKC amendments based on established criteria
  • Step 4: Development of amendment proposals under Articles 6 and 15 of the RKC

The Secretariat presented the first draft assessment for phase two, developed with input from contracting parties and observers. Key discussions focused on pandemic-related concepts including relief goods, electronic payments, postal procedures, travelers, and information technology applications.

Background and Significance of the RKC Review

As the WCO's central instrument for harmonizing and simplifying customs procedures, the RKC has served as a foundation for global customs modernization since its adoption in 1999. The comprehensive review aims to ensure the convention remains effective amid rapid economic development and changing trade patterns.

This modernization effort holds significant implications for global trade facilitation and security. Regular reviews allow the WCO to address emerging challenges such as e-commerce, supply chain security, and intellectual property protection while enhancing transparency and predictability for businesses.

Key Discussion Topics

Pandemic Response

Participants examined how the RKC framework could better address COVID-19's impact on trade, including expedited clearance of relief supplies, expanded electronic payment systems, optimized postal procedures, and traveler health protections.

Digital Transformation

The meeting explored technological applications to improve customs efficiency, reduce trade costs, and strengthen border security through electronic documentation, standardized data exchange, and intelligent risk management systems.

E-commerce Adaptation

Discussions addressed customs challenges posed by booming e-commerce, including rapid clearance of small parcels, cross-border tax administration, and consumer protection measures.

Supply Chain Security

Participants considered enhancements to prevent terrorism, smuggling, and illicit trade through measures like authorized economic operator programs, strengthened risk assessment, and deeper international cooperation.

Meeting Outcomes and Future Directions

The session achieved consensus on next steps for the review process while welcoming three new contracting parties—Liberia, Turkmenistan, and Uzbekistan—bringing total membership to 127. These nations shared their accession experiences during the meeting.

Pranab Kumar Das, Director of Compliance and Facilitation, noted satisfaction with the convention's growing membership since the December 2020 meeting. The committee also discussed inclusive approaches to incorporate observer contributions in the review process.

The next RKC/MC meeting is scheduled for June 7-11, 2021, as work continues to adapt this critical instrument to contemporary trade realities.