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WCO LAUNCHES ITS PERFORMANCE MEASUREMENT MECHANISM

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By Valentina Ferraro and Maka Khvedelidze, WCO Secretariat

WCO News 102 – Issue 3 / 2023. WCO launches its Performance Measurement Mechanism

A COMMON APPROACH TO PERFORMANCE MEASUREMENT

The WCO has developed many self-assessment tools over the years, to enable Customs administrations to determine where they stand with respect to the adoption of WCO standards and recommended practices, to monitor how the Customs clearance service is being carried out, as well as to measure the impact of reforms and programmes on border processes.

For a long time, however, there was no tool to assess Customs efficiency and effectiveness in a comprehensive manner, and hence Customs administrations were using various methodologies to do this. With evaluation being at the centre of discussions among the players in international development aid, including at the WCO, where Customs administrations have been repeatedly asking the WCO Secretariat to measure the quality of its interventions, the WCO decided in 2019 to set up a Working Group on Performance Measurement (WGPM) with the aim of developing a comprehensive WCO Performance Measurement Mechanism (WCO PMM) for Customs.

WCO PERFORMANCE MEASUREMENT MECHANISM

The WCO Performance Measurement Mechanism (WCO PMM) was endorsed by the Council in June 2023. It pivots around four dimensions: Trade Facilitation and Economic Competitiveness; Revenue Collection; Enforcement, Security and Protection of Society; and Organizational Development. Each is divided into expected outcomes with corresponding Key Performance Indicators (KPIs). A progressive approach has been taken regarding the development process for the KPIs and the first version of the WCO PMM (PMM v.1) includes only a limited set of 23 expected outcomes with the corresponding KPIs (51 in total).[1] The KPIs included in the first version of the PMM relate to Customs administrative data. Many administrations already have a national performance measurement system in place and therefore just need to add those KPIs that are not yet covered by their system. Customs administrations can choose not to use a KPI if it cannot be measured due to national specificities.

Customs administrations are also able to decide whether to make information on the results of the assessment public, to share it with other Customs administrations, or to keep it confidential. Conducting a PMM assessment is voluntary and is to be divided into two consecutive phases. First the administration is to conduct self-assessment, organized in a biennial cycle. Second, WCO experts are to carry out a peer review, upon request, thus ensuring the credibility of the assessment process and its quality. Once an initial assessment has been carried out, it will have to be repeated on a regular basis. In other words, KPIs will have to be monitored over time. Guidance material has been developed and the WCO Secretariat will offer continuous support during the process.

BENEFITS                                                             

The implementation of the WCO PMM will enable Customs administrations to identify areas where capacity needs to be built or strengthened, including through the intervention of the WCO Secretariat.

The effective implementation of the WCO PMM is expected to lead to several other benefits. For the WCO Secretariat, it will provide an indication of the impact of its interventions, which will enable it to adapt and enhance its capacity building programmes and to mobilize funding.

The WCO PMM also aims to build capacities for the proper interpretation of results and, in the long run, to enable Customs to build their own evaluation capabilities, making evaluation the standard practice.

ONLINE PLATFORM

By the end of 2023, WCO Members will be invited to participate in the first phase of the WCO PMM by submitting data via the WCO PMM online platform. Reporting has been standardized, and data will be presented in the form of tables and diagrams.

The platform is accessible to WCO Members only. A letter has been sent to the Directors General of WCO Member Customs administrations asking them to nominate a WCO PMM coordinator who will be responsible for managing access to the platform at the national level based on the following roles: National Contact Point(s) (NCP), who will enter data, and National Read-Only (NRO) users, who will only be able to view data.

Data has been divided into three categories according to the applicable level of protection: national-level data (national NCP and NRO, as well as peer reviewers), WCO-level data (WCO Members and Secretariat staff) and public data.

MAINTENANCE

As the WCO PMM aspires to be the global mechanism to measure Customs performance, changes to it must follow a robust amendment procedure. A Performance Measurement Mechanism Project Team (PMMPT) has been set up to enforce the procedure, review the quality of the data submitted through the online platform, measure the extent to which WCO tools and instruments are applied, collaborate with other WCO working bodies on the elaboration of new KPIs to measure the implementation of the main WCO tools and instruments, organize and monitor the peer reviews, and provide capacity building assistance.

WCO News 102 – Issue 3 / 2023.

Сustoms Academy: SCIENCE

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23.10.2023

Note: More detailed information about the WCO performance assessment mechanism is available in the research article of Mozer Sergei.To the issue of the methodology for assessing the level of development of customs regulation in the EEU, taking into account legal means of the World Customs Organization // Gaps in Russian Legislation. — № 1.- 2023. (Article). URL: http://customs-academy.net/?p=16375  

 

More information:

WCO Performance Measurement Mechanism

The WCO PMM outlines the methodology for assessing the efficiency and effectiveness of all Customs competences structured around four dimensions of Customs performance:

  • Trade Facilitation and Economic Competitiveness;
  • Revenue Collection;
  • Enforcement, Security and Protection of Society; and
  • Organizational Development.

The PMM also aims at measuring the application of the main WCO instruments and tools that have a major impact on the corresponding expected outcome under the PMM.

The PMM is also mapped in relation to the Sustainable Development Goals (SDGs) of the United Nations (UN), thereby positioning the PMM with respect to the global impact, beyond the outcome level.

The four performance dimensions are further broken down into specific expected outcomes with the corresponding Key Performance Indicators (KPIs).

The PMM will provide several benefits to Customs and the WCO. It will make it possible to:

  • identify strengths and weaknesses in Customs administration processes;
  • set the reform agenda;
  • set performance goals and targets for continuous improvements through evidence-based benchmarking;
  • monitor and evaluate reform progress;
  • assess the contribution to the UN Sustainable Development Goals through enhanced performance;
  • design evidence-based WCO capacity building interventions; and
  • identify the effectiveness of the main WCO tools, ensuring that they are fit for use.

The disclosure policy identifies the possibility of reporting specific KPIs at different levels according to Member administration preferences:

  • Public level: Available on the public site;
  • WCO level: Available to all National Contact Points (NCPs) and peer reviewers of all WCO Members, plus Secretariat staff, including all users with a basic PMM role;
  • Union level: Available to NCPs and peer reviewers of Members of the Union, plus Secretariat staff; and
  • Country level: Available to NCPs and peer reviewers of the Member to be reviewed, plus Secretariat staff.

The PMM assessment is voluntary and is to be conducted in two consecutive phases (self-assessment and peer review), in order to ensure the credibility of the assessment process. The peer review will be conducted only if Members request it after the self-assessment stage. However, the completion of the peer review should be a prerequisite for a thorough performance evaluation. It will enable the WCO to ensure data quality, and to provide evidence-based technical assistance and capacity building support.

The WCO self-assessment phase is launched by the WCO Secretariat. This phase is to be conducted through the automated data collection platform for the WCO PMM.

The Member administration participates voluntarily, submitting the data through the platform biennially.

First Version of the PMM (PMM V.1)