Why do some countries achieve rapid results in trade facilitation reforms while others struggle? The answer often lies in the professional competence of customs officials—particularly their understanding and application of complex customs valuation rules. In November 2018, the World Customs Organization (WCO) addressed this critical issue through a capacity-building initiative in Lesotho.
Project Background: Trade Facilitation and Customs Valuation
As global trade grows increasingly vital, trade facilitation has become a key competitive differentiator for nations. Effective implementation of the WTO Trade Facilitation Agreement (TFA) depends on efficient, professional customs operations. Customs valuation—a core function—directly impacts tariff revenue, trade statistics, and fair trade practices. Yet developing countries frequently face valuation challenges:
- Complex regulations: While the WTO Customs Valuation Agreement provides a unified framework, its intricate rules demand substantial theoretical knowledge and practical experience.
- Information asymmetry: Customs authorities often encounter discrepancies between declared and actual values, including underreported prices and misrepresented origins.
- Capacity gaps: Many developing nations lack sufficient expertise in valuation techniques, risk management, and audit procedures.
The WCO Intervention
To strengthen Lesotho's customs valuation capacity for TFA implementation, the WCO conducted a "Train-the-Trainer" workshop in Maseru from November 12-16, 2018. Funded by the UK's HM Revenue & Customs (HMRC), this initiative formed part of the HMRC-WCO-UNCTAD Capacity Building Programme supporting trade facilitation.
Program Objectives: Localizing Expertise
The workshop focused on developing a cadre of certified customs valuation trainers within the Lesotho Revenue Authority (LRA). These trainers would subsequently conduct nationwide instruction for both customs personnel and private sector stakeholders. This "cascade training" model ensured sustainable knowledge transfer.
Participants: Selecting Future Instructors
Thirteen LRA officials from headquarters and regional offices participated. Selected for their valuation experience, learning aptitude, and communication skills, these individuals represented LRA's future training backbone.
Curriculum: Blending Theory and Practice
The comprehensive curriculum covered:
- WTO Valuation Agreement: Deep analysis of provisions, particularly transaction value methodology.
- WCO Revenue Package: Practical application of valuation databases, risk models, and audit guidelines.
- Instructional Techniques: Adult learning principles, course design, facilitation methods, and evaluation strategies.
- Teaching Simulations: Participants delivered mock lessons on valuation topics, refining their presentation skills through feedback.
Methodology: Interactive Learning
The workshop employed dynamic techniques including group discussions, case studies, role-playing, and brainstorming. Practical exercises—such as simulated valuations, risk assessments, and audit investigations—reinforced theoretical knowledge.
Outcomes: Establishing Local Training Capacity
After five intensive days, participants transitioned from trainees to trainers, equipped to disseminate valuation expertise across Lesotho's customs operations.
The Mercator Program: Tailored Capacity Building
This initiative formed part of WCO's Mercator Programme, which provides customized support for TFA implementation in developing countries through technical assistance, training resources, and implementation tools.
Analyst Perspective: Measuring Impact
From a data-driven viewpoint, the project delivers measurable benefits:
- Operational efficiency: Enhanced valuation accuracy reduces clearance times and trade costs.
- Revenue protection: Improved valuation combats undervaluation and origin fraud.
- Investment climate: Transparent procedures attract foreign direct investment.
- Regional integration: Strengthened customs cooperation facilitates cross-border trade.
- Sustainability: Local training capacity ensures long-term competency development.
Future Directions: Institutionalizing Capacity
Sustaining these gains requires:
- Regular refresher training to address evolving trade patterns
- Establishing valuation expert teams for technical support
- Enhancing international cooperation through WCO networks
- Updating legal frameworks for valuation procedures
- Integrating digital tools like AI and big data analytics
Through sustained investment, Lesotho can maintain and expand its customs valuation capabilities, driving continued trade-led economic growth.