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FTAA.sme/inf/113
August 12, 2003

Original: Spanish
Translation: FTAA Secretariat

FTAA – CONSULTATIVE GROUP ON SMALLER ECONOMIES

PARAGUAY

REQUEST FOR FINANCIAL AND TECHNICAL ASSISTANCE UNDER THE HEMISPHERIC
COOPERATION PROGRAM – RELATED TO CUSTOMS

 

  1. PROJECT TITLE

    TECHNICAL AND FINANCIAL ASSISTANCE FOR CUSTOMS SERVICES.

  2. EXECUTING AGENCY

    Government of Paraguay, through the General Directorate of Customs (DGA).
    (Paraguayo Independiente y Colón - Tel./Fax 595 – 21 – 497 960)

  3. BACKGROUND

    The Government of the Republic of Paraguay, based on its 1999/2003 program to raise the standard of living and improve the quality of life of the Paraguayan people, designed and implemented the STRATEGIC SOCIOECONOMIC PLAN (P.E.E.S.). The goal of the plan is to lay the foundation for a new development model supported by private initiatives, by eliminating structural inefficiencies and obstacles from the country’s production and institutional systems in order to achieve a sustained increase in real GDP per capita and reduce poverty and inequality.

    This general framework requires that the country’s domestic policies be tailored and harmonized to the global economic situation, and particularly to international trade, as a means of achieving competitiveness in an era of globalization, and with a view to ensuring socioeconomic development in the country.

     
  4. RATIONALE

    Significant changes at the national and global level constitute huge challenges and demands for the General Directorate of Customs of Paraguay (DGA): the modernization and upgrading of customs services for users, including importers, exporters, customs agents, carriers, and related companies in the country.

    The implementation of the SOFIA system, a new system of computerized services provided through a joint effort with the Customs Agent Center of Paraguay, exemplifies the government’s commitment to modernizing the country’s customs services and linking them to similar systems throughout the world.

    In particular, countries with small economies, such as Paraguay, that are heavily dependent on foreign trade, must assign high priority to mechanisms for improving their international relations. Sectoral strategy, therefore, must be brought in line with general economic strategy by harmonizing policies and instruments.

    Limited government resources, increasingly tied to macroeconomic goals, require the optimization of procedures for prioritizing these goals, as well as innovations and improvements in public administration.

    Stimulating the modernization of economic agents linked to international trade is of great strategic value for the Paraguayan economy and therefore, the assistance that the FTAA could provide for a project such as this, the success of which is threatened by DGA budgetary restrictions, will help to reinforce the mechanisms being implemented by the General Directorate of Customs.

    The SOFIA system, the flagship project of the DGA, is lacking in several areas, despite being closely supported by all of the units comprising this institution. For example, the registration, verification, valuation, and liquidations departments, as well as the customs training school and other technical and administrative departments, must adapt to increased growth and industrial modernization.

    The resources available to international negotiators are another key element that must be strengthened within the framework of international negotiations. The FTAA will prove to be an invaluable source of support for Paraguay in this particular area.

     
  5. PROJECT OBJECTIVES

     
    General Objective

    To modernize and strengthen the capacities of the General Directorate of Customs to maximize its contribution to the design of policies that promote socially and environmentally sustainable development, by harmonizing the current rules of the market economy and international trade.

    Specific Objectives

    To strengthen and develop capacities to design and evaluate sectoral policies in production, foreign trade, rural development, and environmental sustainability.

    To develop institutional and technical capacities to ensure an effective and timely dialogue with the various entities of importance for foreign trade. 

    To achieve the technical capacities required to operate as a center for technical support and for the consultative bodies of the Ministry of Finance in international trade.

    To create the necessary technical capacities to optimize the allocation of institutional resources based on development objectives, organize international cooperation initiatives, and modernize institutional management.

    To set up a comprehensive customs information system that would support public and private sectoral agents. 

    To train DGA technicians to understand and manage the comprehensive trade relations between industrialized nations and smaller economies, such as Paraguay.

     

  6. INPUTS

    The resources required for the project are as follows:

     

    COMPONENTS

    RESOURCES REQUIRED


    Experts

     

    1 expert in narcotics detection and handling, 8 months 
     
    1 expert in detection and handling of explosive, nuclear, or hazardous materials , 8 months

    1 expert in money laundering and international fraud, 10 months


    Training of DGA technicians

    Master’s-level courses

     6 months’ to 2 years’ duration
    - 10 in customs techniques
    - 10 in international trade
    -  10 in information technology (satellite linkups)

    National Master’s-level courses
     6 months’ to 2 years’ duration
    - 10 in customs techniques
    - 10 in international trade
    - 10 in information technology (satellite linkups)

    Specialized courses abroad
     6 months’ to 2 years’ duration
    - 10 in customs techniques 
    - 10 in international trade
    - 10 in information technology (webpage design)
    - 10 in information technology (customs agent kit)
    - 10 in information technology (distance learning)

    National seminars
     2 to 5 days’ duration
    - 6 seminars

    International seminars
     2 to 5 days’ duration
    - 6 seminars


    Support for participating in customs negotiations meetings

    Training for international negotiators

    Cost of airfare and accommodations for an average of 10 technicians attending 10 international meetings per year
     10 Professionals
     6 laptop computers

    Support for participating in international courses

    Cost of airfare and accommodations for an average of 10 technicians attending 10 international courses per year.  

    Support for publishing texts for distribution

    Cost of texts with basic binding, numbering approximately 100 pages each, on a total of 10 different customs topics.


    Detection equipment
    - Portable Geiger-Müller detector to measure radioactive emissions18 units

    - Pen-style coloration detectors to measure intensive radiation exposure
    -18 units

    Customs agents at border crossings must be able to detect unusual levels of radiation, which may be emitted by explosive materials or prohibited radioactive waste.

    Detection equipment
    - Portable, trackable radios to attach to transport vehicles for monitoring purposes
    - 6 units
     

    Modern methods to monitor and control merchandise require economical and easy-to-use equipment that can be easily attached to transport vehicles to conduct appropriate follow-up.

    Analysis equipment
    - Special envelopes for collecting samples and delivering them to labs (linked to special courier services and must be assembled using representative sampling procedures)
     

    Due to high costs, multiple labs cannot be set up in border regions. However, sampling equipment may be used to extract samples in specially waxed envelopes so that they can be securely delivered to specialized national and international labs.

    Training
    - Technical training in valuation and international trade
    (Valuation Dept.)
     

    Given the highly dynamic nature of the sector, it is recommended that customs agents receive brief practical training sessions. The training program will provide realistic training for customs officials and update them on international methodologies.
     

    - Experts to formulate and design customs and international trade policy, as well as to consult on operational issues.
     
    1 expert from the European Union to design customs and international trade policy
    1 expert in narcotics detection and handling, 8 months
    1 expert in the detection and handling of explosive, nuclear, or hazardous materials, 8 months
    1 expert in money laundering and international fraud, 10 months
    1 customs valuation expert, 10 months (Risk analysis specialist)
    1 expert in customs agent kit development, 8 months
     

    Training of DGA technicians

    Master’s-level courses

     6 months’ to 2 years’ duration
    - 2 in customs techniques
    - 2 in international trade
    - 2 in information technology (satellite linkups)

    National Master’s-level courses
     6 months’ to 2 years’ duration
    - 2 in customs techniques
    - 2 in international trade
    - 2 in information technology (satellite linkups)

    Specialized courses abroad
    6 months’ to 2 years’ duration
    - 2 in customs techniques
    - 2 in international trade
    - 2 in information technology (webpage design)
    - 2 in information technology (customs agent kit)
    - 2 in information technology (distance learning)

    National seminars
    2 to 5 days’ duration
    - 6 seminars

    International seminars
    2 to 5 days’ duration
    - 6 seminars
     

    Support for participating in customs negotiation meetings
     

    Cost of airfare and accommodations for an average of 5 technicians attending 5 international meetings per year
     
    Furnishings for the Customs Training School
    -180 university-style desk chairs
     
    For training in Asunción or in inland areas
    - 50 computers to create a basic computer training unit
    - 50 printers
    - 3 video cameras for computers used in videoconferencing
    For PC training in Word, Windows, and languages, as well as for distance learning and printing of educational material.
    - 10 photocopiers for the Customs Training School and administrative units
    - 10 book staplers
    - 10 3-hole punchers for binding educational material
    To supply printed materials to participants in technical courses.
    - 6 sound equipment units for classrooms
    - Amplifier, speakers, and microphones
    - 6 wireless microphones
    - 6 electronic blackboards
    For distance learning, through the Customs Training School
    - Books, brochures, customs encyclopedias, technical customs dictionaries For use in the library of the Customs Training School
    Support for participating in international courses or seminars Cost of airfare and accommodations for an average of 5 technicians attending 5 international courses per year
     
    Support for publishing texts for distribution Cost of texts with basic binding of approximately 100 pages each on a total of 10 customs topics
     
    - 5 multimedia projectors
    - 5 projection screens
    - 3 29” televisions
    - 3 video cassette players
     
    For use by the Customs Training School In order to conduct distance learning courses and extend the benefits of online education to customs posts in the inland and the border regions
    Books, brochures, customs encyclopedias, technical customs dictionaries
     
     For use in the library of the Customs Training School



  7. EXPECTED RESULTS

    The DGA has qualified personnel, infrastructure, equipment, and extensive experience in the areas for which it is responsible. However, it is currently facing serious budgetary restrictions that affect its ability to operate. The technical and financial support provided by the FTAA would enable the DGA to respond in a timely and efficient manner to the requirements of senior levels of government.

    Furthermore, the DGA is the authorized contact point for other governmental entities associated with international trade and tax collection.

    The DGA strengthens and increases its capacity to administer development and international trade policies and to adapt such policies to the current global rules.

    The DGA creates information systems that serve as essential inputs in the decision-making process of public and private economic agents, and cooperates at the international level with institutions such as RILO (Regional Intelligence Liaison Offices) that are associated with the fight against, and control of, dangerous drugs, contraband, and terrorism.

    DGA technicians are trained to effectively manage public policy and international trade and, as such, would be a strong ally in maintaining social order and controlling crime in this part of the Americas.

 
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