Is de-merger the right solution
IN his article titled “Restructure FRCS” (FT 10/2) my former colleague Bill Raikuna has attempted to justify his assertion that the customs diminished border control role under the FRCS structure has partly attributed to the recent importation of a large quantity of meth into Fiji. He has further insinuated that customs would have been more effective as a border protection agency had it remained as a separate entity. At the outset I must state that it is not my intention to dispute his viewpoint, but rather to provide a more balanced perspective of the confronting issues that needs to be addressed. Whilst there is some merit in his call for the de-merger of the two tax agencies my school of thought is that a more in-depth analysis is needed to evaluate the ramifications of such decision.
Shift in focus
TO begin with, one needs to recognise that the role of Customs has evolved significantly in the 21st century mainly in response to the increasing globalisation of trade. Typically, Customs is responsible for implementing a wide range of border management policies including those on behalf of other agencies. In many developing countries Customs primary focus is revenue collection.
The dilemma for Customs administrations began with the shift towards facilitation of trade emanating from the demands of the changing business environment. Thus diluting its role from “gatekeeper” to “facilitator”. Even today most administrations are struggling to find the right balance between facilitation and control because of the escalating level of risk. And Fiji is no exception. Now they are also performing additional task as coast guards for other neighbouring countries. One thing is for sure: the criminals will never stop exploiting the vulnerabilities in the international supply chain system to devise ingenious and more sophisticated tactics of moving their illicit goods across the borders. Remember how the US law enforcement agencies were caught off guard by the 9/11 terrorist attack.
Potential threat is out there
In 2018 several packages of cocaine were discovered floating in our waters near Lau and Yasawas some of which were washed ashore. Surely it did not land there by accident, but was deliberately dumped. It was reported in the media that the drugs were handed over to the police by the villagers. But the question remains whether all the drugs were surrendered to the law enforcement authorities. How can we be sure there were no finders keepers?
Admittedly, just like the police, Customs cannot be present everywhere. More importantly, it should have raised alarm bells as to why the peddlers were employing these modus operandi to smuggle drugs through the Pacific. Was it a smoke screen to camouflage a bigger illicit activity?
The possible removal of other illegal goods such as firearms in the same manner cannot be ruled out. Incidentally, in a similar case eight Tongan nationals were jailed for up to thirteen years in 2021 after being found guilty of selling 36 kilograms of cocaine washed ashore on the beach. Was any action taken to beef up surveillance in our maritime zones after the discovery? Who is responsible for this?
Strengthening integration and collaboration
Fiji Revenue & Customs Services has come a long way since its establishment in 2000. Thanks to its enhanced institutional capacity, it has transformed into a formidable organisation not only in the area revenue collection, but also as a border control agency.
With the implementation of modern and advanced systems and tools such as the X-ray machines, K9 Unit, continual development and upgrading of skills, enhanced powers for control delivery and support from partner agencies such as Transnational Crime Unit (TCU) and a strong networking with neighbouring Customs administration the Customs arm is now adequately resourced and equipped to carry out its mandate.
Greater say in decision making
However, improvement in certain crucial areas will enhance its capacity to perform its functions more efficiently. As a matter of priority the composition of the FRCS Board needs to be reviewed. It is to be noted that since its inception none of the serving members had any Customs background or understanding of the Customs systems and procedures. Without this expertise how can they be expected to effectively perform their advisory role in terms of developing the necessary policies and interventions to address the gaps. Unfortunately, that vital input has been lacking. More so when you have a CEO who is not au fait with Customs multifaceted role. To some extent the predominant presence of academics and business professionals in the Board may have given rise to the perception of greater focus on revenue performance and trade facilitation as opposed to border security.
Optimise our strength to mitigate the risk
In addition, in line with its overarching objective, FRCS should vigorously seek to promote more integration between the two arms. To this end the creation of a Joint Intelligence Unit comprising customs and tax will set the platform for more collaboration mainly in the area of information sharing. Sitting together in one room they will be in a stronger position to intercept and collect vital information on criminal activities relating to revenue fraud, money laundering, suspicious financial transactions, smuggling of currency, acquisition of assets and properties from ill-gotten money, etc. Based on my long experience as a customs investigator, I can say that where there is a Customs fraud there is a high likelihood of tax fraud as well. If we are to successfully combat the drug problem, then we must attack it from all fronts to send a strong message to the perpetrators that we are coming after them. In other words, we need to create fear in the minds of the criminals. Given that FRCS’s risk management system is intel driven it should be supported by a robust monitoring and evaluation framework to ensure its compatibility with the changing environment. It is not good for us to seen as firefighting all the time.
All core functions have equal status
Therefore, in my view it is unfair to judge the effectiveness of Customs performance as a border control agency on the basis of their failure to intercept one shipment of narcotics that has slipped through the net. In contrast even Customs administrations in developed countries with state of the art facility and highly developed intelligence capacity are fighting an uphill battle in trying to stop drugs from entering their borders. It must be also clarified that just because border security role is ranked fourth amongst the key focus areas it does not necessarily mean its importance is subservient to other roles. All in all, in my assessment Fiji Customs is doing a good job under the current structure and to roll back will be a regressive move. As regards to the Customs status in other countries all I can say is what is good for the goose isn’t necessarily good for the gander.
SELWA NANDAN
■ is a former Deputy Director of Customs and Advisor for Trade with Oceania Customs Organisation. The views expressed here is his and not necessarily shared by this newspaper.