Support to improve PA’s Customs readiness to assume functions from Israel and collect revenues from trade-related taxes
Objectives:
To provide technical assistance to the Palestinian Authority (PA) Ministry of Finance to:
- Reduce fiscal leakage of trade-related taxes from inefficient clearance mechanisms between the PA and Israel as stipulated in the Paris Protocol.
- Support the enhancement of PA Customs’ capacity and responsibilities, including the possible transfer of custom functions from Israel to the PA; and
- Tasdeer will work with the PA and other stakeholders to facilitate technical discussions and coordinate closely with international community partners. Our work with Customs will be guided by international best practice, aligned to WCO and WTO standards and protocols
Our intervention is to assist MoF in launching e-Makasa for business use across Palestine. The launching campaign will have three elements:
- Train the first batch of more than 500 businesses on using the new e-Makasa online platform.
- Train MoF staff and build in-house capacities, so they can continue to train remaining and new businesses in the future.
- Raise awareness by designing and producing leaflets, brochures, online video tutorials, and other promotional material and activities to facilitate a smooth transition to e-Makasa.
Current procedures for clearance of goods within Palestine Customs differs from crossing point to crossing point and are complicated by additional processes imposed by Israel. The resultant lack of clarity creates a non-tariff barrier to trade and an opportunity for fraudulent activity. It also reduces the ability of Customs institutions to provide effective control of goods, maximise revenue collection, and provide reliable statistical data.
Our intervention supports the PA to align Customs procedures to the World Customs Organisation SAFE Framework of standards and creates a platform for improved capacity of PA Customs to assume functions from Israel.
Based on our initial assessment with the Ministry of Finance (MoF), we are supporting the development of an Authorised Economic Operator programme as well as procedures for a Customs Clearance Warehouse
Our intervention works with the MoF to support and improve the automation of customs in Palestine. We are currently coordinating and funding an upgrade of the Customs Management System (ASYCUDA World) with UNCTAD.
The upgraded version of ASYCUDA will improve the quality of data analysis and reporting, allowing Palestine Customs to make better use of trade information and help with risk management. A fully functional Customs Management System with modern capabilities will enable compliance with the digital transformation business requirements of a modern Customs Administration, moving towards a paperless environment. A modern CMS can facilitate the electronic submission of documents, preferably pre-arrival, and can enable the early identification of high-risk consignments.
Supporting the modernisation and digitisation of Customs will have a positive long-term impact on the performance of the Palestine Customs.
