UNCTAD and EU funding for modernization of Palestinian customs operations – EU press release//Non-UN document

UNCTAD intensifies its assistance to Palestinian customs with €2.5 million European Union funding

The United Nations Conference on Trade and Development (UNCTAD) and the European Union (EU) are stepping up their technical assistance activities to help modernize Palestinian customs operations as part of broader efforts to strengthen the capacities of Palestinian institutions. Under the patronage of Dr. Salam Fayyad, Palestinian Authority (PA) Prime Minister and Minister of Finance, UNCTAD and the EU signed a grant agreement on Monday 6 August, whereby the EU will provide a €2.5 million grant to finance the Palestinian Customs Modernization Programme: ASYCUDA-Phase III technical assistance project that will implemented by UNCTAD. 

The ASYCUDA++ computerized system will serve as the backbone of the modernised Palestinian Customs and Border Management and spearhead trade facilitation efforts. It will provide accurate and up-to-date information for Palestinian policy-makers on import declarations and the customs tariff structure, previously unavailable to the Palestinians. Phase III of the project will see the complete rollout of the ASYCUDA++ system at main border crossings over the next three years.

Roy Dickinson, head of Operations at the European Commission's office in East Jerusalem, said "This project is another sign of the European Union's strong commitment to supporting Prime Minister Fayyad's Government in the creation of well-functioning modern institutions serving the Palestinian people. The efficient and honest management of border crossings is a vital part of building a state, which is the shared ambition of the Palestinian people and the European Union."

Mahmoud Elkhafif, Officer in Charge of UNCTAD's Unit on Assistance to the Palestinian People said "UNCTAD takes great professional pride and satisfaction at seeing this programme grow into a mature and vital component of international aid to Palestine". He expressed UNCTAD's "appreciation of H.E the Prime Minister for his effective leadership during a particularly challenging time. I would also like to thank the European Union for its foresight, commitment and deepening engagement with UNCTAD Programme of Assistance to the Palestinian People".

UNCTAD and the Palestinian Authority have worked since 2001 to develop the prototype computerized system Palestine-ASYCUDA,in close consultation with international development institutions and concerned donors to avoid duplication of effort andtoensure national ownership.  Previous phases of the project, which is considered as the most successful experience in UNCTAD's technical cooperation with Palestine, included the EU-funded Phase II and the Special Technical Assistance for Rollout at the Gaza Border with Egypt.

During these phases, the ASYCUDA system was installed in the customs headquarters in Ramallah, and in five West Bank district offices. It was also installed in Gaza Headquarters and attheRafahborder, where ithas been fully operational since November 2005. ASYCUDA national staff play a central role in ensuring the Palestinian customs' responsiveness and preparedness for statehood. The team is continuously modifying and adapting the prototype system to address emerging needs at the Rafahborder.

The main activities in Phase III of the project involve linking all international entry points electronically, centralising the monitoring of the different customs activities under a single roof, and"going live" at all customs offices. In addition, tailor-made components for risk management and selectivity will be introduced, along with ASYCUDA-World, which will allow Palestinian customs to join the world of e-customs.

UNCTAD will give special consideration to building the capacity of PA customs staff in the use of modern customs clearance techniques, to foster transparency and trade efficiency. The project national team will also receive further technical and functional training. This will not only help foster a sense of national ownership of the project, but will ensure that the team becomes self-sufficient in managing the operations and any further enhancements to ASYCUDA.

The project is funded by theEU as part of its strategy to help build the institutions of a future viable and independent Palestinian state.