The World Customs Organization (WCO) plays a critical role in simplifying and streamlining trade processes that promote smooth international trade. Canadian importers and exporters can benefit from accessing resources and learning about standards provided by the WCO.
The frameworks, standards, and tools developed by the WCO help to empower businesses with efficient and secure trade. Explore the WCO's impact on Canada's importers and exporters, along with the organization's contributions to facilitating Canadian trade across the globe.
Originally founded in 1952 as the Customs Co-operation Council, the WCO is an international organization that has grown to represent 98% of global trade. This includes more than 180 members of customs administrations who are headquartered in Brussels, Belgium.
The WCO develops international standards, provides technical assistance, and promotes collaboration between customs administrations across the world. For Canadian importers, the WCO’s work facilitates consistent, predictable processes that reduce trade barriers, increase security, and enhance the efficiency of supply chains.
The main difference between the World Trade Organization (WTO) and the WCO is the scope of their mandates, with the WCO focusing on a specific trade process while the WTO influences multiple aspects of international trade.
The WTO is akin to a policy maker that deals with the "big-picture" rules of trade, like tariffs, trade barriers, and trade agreements. The WCO, on the other hand, is all about the nitty-gritty of customs, offering practical tools and guidelines to make sure that efficient customs procedures that remain consistent around the globe.
The WCO and the WTO collaborate on projects of shared interest. For example, the WTO can set goals for trade through trade agreements, with the WCO providing the expertise to support a smooth, efficient facilitation of WTO objectives.
These two organizations work in tandem to align trade policy and customs operations, including:
The WTO focuses on policy-level trade facilitation, while the WCO supports its implementation through technical tools like the Revised Kyoto Convention.
The WCO provides technical frameworks for implementing rules of origin, complementing WTO guidelines under trade agreements like CUSMA and CETA.
For Canadian importers, this collaboration ensures consistent procedures, fewer delays, and reduced complexity for international trade.
Canadian importers benefit in several ways from the WCO’s work. Here are some key reasons why it’s worth paying attention:
HS codes are the global standard for classifying goods, managed by the WCO. These codes determine duties, taxes, and compliance requirements. Canada’s customs system aligns with the WCO’s standards, providing an agreed-upon system that's used with nearly all trade partners.
The WCO has developed frameworks like the Revised Kyoto Convention and the SAFE Framework of Standards, which help to simplify and secure international customs procedures. This reduces delays, misunderstandings, and other barriers to smooth trade.
Tools like the WCO’s Time Release Study (TRS) help pinpoint bottlenecks in customs clearance, while the WCO Data Model streamlines electronic data exchange with agencies like the CBSA.
The WCO’s Authorized Economic Operator (AEO) program is the foundation for Canada’s Trusted Trader Program. By enrolling in the program, compliant businesses enjoy benefits like reduced inspections and expedited customs processing.
The WCO is a cornerstone of prosperous, efficient, and secure international trade for Canadian importers and exporters. The resources and frameworks provided in collaboration with the WTO deliver a clear path for Canadian businesses to follow. Leveraging the WCO's knowledge and resources show how to enhance trade efficiency and sharpen a competitive edge in global markets.
Cole International has more than a half-century of experience with companies operating across Canada and the U.S. Reach out and connect with one of our customs leaders today.