Text 13.1. How to communicate with customs

Customs administrations communicate with the traders by using various sophisticated information and communications technologies.

Electronic communication in Customs Management takes place by printing messages or creating Electronic Data Interchange (EDI) messages. The EDI is a class of industry specific message formats used in electronic commerce. It can communicate and set up electronic Customs processes with various European, US, and Australian Customs authorities. It can also address different filing formats, data transmission requirements, and other features.

Clients may connect via the Internet for EDI, or alternatively clients with high volumes of transactions may find it more cost-effective to have a direct connection to Customs. There are many EDI software packages commercially available to industry.

There are certain advantages and disadvantages of EDI.

Advantages

• Ability to store records.

• Declarations and cargo reports can be held, saved, amended, printed and retransmitted.

• Ability to batch transactions.

• Option for other business enhancements to software, such as accounting and auditing functions.

Disadvantages

• Higher set-up and maintenance costs.

• Software reliability and impact of downtime.

• Potential costs of training staff.

Exporters have the option of lodging Export Declarations (EDNs) by two methods:

By document. This is referred to as a documentary export declarationinvolving the completion of a paper declaration, prepared by the owner or agent acting on behalf of the owner. Documentary export declarations must be lodged in person at a Customs counter.

Electronically. Export declarations can only be lodged by a registereduser of different systems. The system converts the data into an Intermediate Document (IDoc) and sends the IDoc output file (i.e., text) to a middleware. The middleware acts as a translator to convert the IDoc file into the format in which the receiving system expects it.

US Customs and Border Protection uses Automated Export System (AES), which collects and retains electronic Shipper's Export Declaration records. AES provides a standardized, efficient, real-time information exchange between Сustoms authorities and traders. It features enhanced flexibility regarding legal and organizational changes and accelerates purchasing, production, and sales processes.

In Australia traders communicate electronically with Customs via the Integrated Cargo System (ICS). Under the ICS, Customs uses an open system based on Internet protocols. This provides clients with a number of options for communicating with Customs:

• a range of enhanced functions for lodging import and export declarations and cargo reports;

• facilities to amend previous electronic data interchange (EDI) messages;

• access to the diagnostic facility to verify the status of transactions in the ICS;

• the ability to update the client register.

There are a number of existing and emerging Customs management computer systems available today on the market. All have a core of similar modules that permit Customs to manage its customs clearance operations using computer and communications-supported modules.

Information and communications technologies can substantially contribute to making Customs operations both more effective and more efficient.

Answer the following questions.

1. What is Electronic Data Interchange?

2. What are advantages and disadvantages of EDI?

3. What are the options for traders to communicate with Customs?

to call for

to raise general public awareness

to identify emerging issues

to comply with Customs requirements

Study the following words and word combinations from the text.

предусматривать, требовать

повышать осведомленность обще-ственности

выявлять возникающие проблемы соблюдать таможенные

TEXT 13.2. BENEFITSтребованияOFCOMMUNICATION

Generally, modern Customs administrations have two main tasks to collect duties and taxes, which represent a substantial proportion of the government's revenue, and to protect society by combatting the movement of restricted and prohibited goods. In performing these tasks Customs administrations need to maintain the appropriate balance between facilitating legitimate trade and travel while ensuring compliance with the laws and regulations they enforce, and to demonstrate that these laws and requirements are applied fairly, efficiently, and effectively.

To achieve these objectives Customs requires a sound organization with well-trained, motivated, and informed officers who apply the law clearly and consistently, and an effective system of communication.

Effective communication will bring benefits to Customs management and staff, the business community, and the public. Although it contributes positively to the administration's overall image, its main objective is to achieve compliance. A total Customs communication system can be extremely complex, but its complexity varies with the needs associated with particular Customs organizations and their operational environmental situations. Each Customs function or

situation calls for its own subsystem of communication. Effective communication helps

management by:

ü ensuring that target groups be informed;

ü raising general public awareness of Customs' role;

ü measuring business and public acceptance;

ü identifying emerging issues;

ü assisting in policy making.

staff by:

§ developing better relations between the public, the business community, and employees;

§ assisting in the delivery of quality service;

§ promoting confidence and morale, thus motivating them to carry out their duties;

§ improving the public's and the business community's perception of their tasks;

§ ensuring the proper flow of information to and from employees. the business community by:

Ø contributing to businesses ability to comply with Customs

requirements, which contributes to higher compliance;

Ø ensuring that their views and opinions are taken into account when designing and implementing programmes;

Ø demonstrating to business that the law is being applied fairly.

the public by:

o enabling individuals to comply with Customs requirements by informing them about their rights and obligations;

o minimizing any inconveniences;

o educating them about the benefits for their communities.

When dealing with the staff, the public, and the business community, Customs administrations should ensure consistency in applying Customs laws and regulations by:

– providing accurate, complete, objective, timely, relevant, and understandable information about policies, programmes, and services;

– ensuring their concerns and views to be taken into account when establishing priorities, developing policies, and implementing programmes.

In a business context, all communication can be divided into two categories namely, external Communication and internal Communication.

Internal communicationis the flow of information within theorganization. The goals of effective internal communication are to:

ü disseminate the information required for staff to perform the work effectively;

ü motivate staff through a feeling of belonging and pride;

ü ensure that staff are aware of the administration's goals, policies, and priorities;

ü make staff sensitive to the needs and concerns of the public and the business community; and

ü provide staff with a forum to contribute ideas to improve the way Customs conducts its business.

External communicationis the flow of information from theorganization to ensure that the public and the business community have the information they need to comply with the law and to instil confidence in the quality of the organization. The goals of effective external communication are to:

§ disseminate the information in a useful, timely, and accurate manner;

§ ensure the public and the business community understand their rights and obligations;

§ educate the public and the business community about the role of the Customs administration in collecting revenue, protecting society, and facilitating trade;

§ ensure that the Customs administration knows and understands the needs of the public and the business community;

§ ensure that the views of the public and the business community are taken into account in policy-making programme design.

Effective communication is vital to raise awareness on specific topics as well as Customs achievements, to enhance transparency, to change perceptions when needed and improve compliance rates. Good communication also has profound impacts in how we learn from each other.

EXERCISES

I. What are the synonyms from the text of the following

words/phrases?

1. to keep, preserve, uphold 6. to act in accordance with

2. to guarantee 7. to realize

3. to compel, to put in force 8. interrogation, investigation

4. honestly, justly 9. surroundings

5. firm, stable, secure 10. to fight against, to oppose by

force

II. Find the words in the text which follow the verbs below.

1.	to achieve	5.	to bring	9. to promote
2.	to enforce	6.	to raise	10. to combat
3.	to facilitate	7.	to identify	11. to enhance
4.	to collect	8.	to develop	12. to comply

III. Match the adjectives on the left with the nouns on the right to make a word combination and translate them.

economic	1.	goods
informed	2.	Customs officers
international	3.	balance
motivated	4.	procedures
legitimate	5.	trade
effective	6.	organization
prohibited	7.	communication
restricted	8.	provisions
business	9.	community
sound	10. situation
well-trained
simplified

environmental

operational

appropriate

IV. Match left to the right to make a sentence complete.

1.	Customs administrations	a. the facilitation of legitimate trade
collect duties and taxes, which	and ensuring compliance with the
represent a substantial	laws and regulations they enforce.
proportion of ...
2.	Customs administrations	b. policy making.
play a leading role in ...
3.	Customs administrations	c. information to and from
need to maintain the	employees.
appropriate balance between ...
4.	Customs requires a sound	d. the benefits for their
organization with ...	communities.
5.	Effective communication	e. the government's revenue.
will bring benefits to ...
6.	Effective communication	f. Customs requirements.
helps management by assisting
in ...
7.	Effective communication	g. well-trained, motivated and
helps staff by assisting in ...	informed officers.
8.	Effective communication	h. protecting society from drugs.
helps staff by ensuring the
proper flow of ...

9. Effective communication helps the public by enabling individuals to comply with ...

10. Effective communication helps the public by educating them about ...

i. the delivery of quality service.

j. Customs management and staff, the business community, and the public.

V. Complete the following sentences with the correct forms of the verbs from the box.

use	assist	restrict	inform
protect	call	make	prohibit
apply	attach	simplify	motivate
accomplish

1. Customs administrations must play a leading role in … society.

2. Customs must combat the movement of … and … goods.

3. Customs requires a sound organization with well-trained, … and … officers.

4. Effective communication helps management by… in policy …

5. Customs administration should ensure consistency in … Customs laws and regulations.

6. Such activities as inquiries officer's conduct, and … procedures fundamentally influence the attitudes of the public and business community.

7. The Customs Service in different countries experimented with many sophisticated technologies to aid in … their various tasks.

8. A new system … the Integrated Cargo System (ICS) has been introduced in Australia.

9. It was carried to Customs with a cheque … by a paper clip.

10. Brokers started … a statement to make payment to Customs.

VI. Translate into English.

1. Какая еще важная задача стоит перед таможенной службой временнымпомимосбора налогов и пошлин?

2. Поч му для таможенной администрации важно сохранять рав-нов сие м жду содействием развитию торговли и туризма и одно-

обеспечением соблюдения требуемых законов и правил?

3. Что требуется таможне для достижения ее целей?

4. Что оказывает значительное влияние на отношение общест-венности и деловых кругов к таможенной службе?

5. Что собой представляет система таможенных связей?

6. Как может помочь таможенному руководству эффективная система коммуникаций?

7. Почему важно и общественным и деловым кругам действовать

в соответствии с таможенными правилами?

FOLLOW-UP ACTIVITIES

I. Punctuate the following text. Divide the text into paragraphs.

MEDIA RELATIONS¹

The main intent of any media is to pass information to pubic be it electronic or print media the public needs to be aware of the news print media is a medium through which printed matter is disseminated to the audience print media typically includes newspapers articles journals etc on the other hand electronic media could be internet television etc the definition of media relations involves forming relationships with various members of the press in order to get publicity or to cause publicity to go a certain way media relations can be described as a company's interactions with editors reporters and journalists the goal is to communicate a client's newsworthy message story or information using the appropriate media outlets in the context of communications undertaken by the Customs administration media relations is a planned activity which involves establishing and maintaining effective communication with representatives of the print and electronic media it is aimed at providing information from a Customs administration to the business community and the public in general responding to enquiries media relations can be viewed as an integral part of the communication programme for a Customs administration the media is an invaluable tool it is a fast cost-effective way to deliver information to large numbers of people and special interest groups the media is often a barometer of public opinion and developing trends that could influence the decisions that a Customs administration makes it can also be an indicator of the quality and the effectiveness of an administration's information and communication system monitoring and evaluating media are critical

¹ Media relations, MR (англ. –связи со средствами массовой инфор-мации) – технологии коммуникационного менеджмента.

tools in managing communication since Customs is a part of the public administration it has to abide by the rules and procedures that the appropriate authority has established

II. Translate into Russian.

INFORMED COMPLIANCE

«Informed compliance» represents the philosophy of the trade community that importers be clearly and completely informed of their legal obligations so that they may comply with the law.

II. The information that a Customs administration gives to mass media should conform to its communication objectives and protect confidential data. The responses given to news organizations¹ should ensure that: (Choose five essential points.)

1. ongoing investigations are not jeopardized.

2. list of all the press organizations is presented.

3. information concerning classified operational procedures is not divulged.

4. the interests of another authority are not compromised.

5. court cases are not influenced.

6. political sensitivities are always taken into the account.

III. Fill in the gaps to make the sentences complete.

A

Reference words: interviews, the telephone, briefing, instructions and directives, regular meetings

Spoken communication can be divided into various forms. Some are listed below:

1. … may be used to provide information about, maybe, a new procedure or some new policy. These are mostly one-way from the supervisor/manager to the subordinates. However it is essential to allow discussions and questions.

¹ News organization – an agency to collect news reports for newspapers anddistributes it electronically. Syn: news agency, press agency, etc.

2. … are very beneficial to management, employees and the department. They can help to trash out problems and promote brain-storming employee involvement and creativity.

3. … should be also well planned. It is most important for the interviewer to be a good listener and to understand what the interview is trying to put across. Especially important here, is the decoding of body-language (non-verbal communication) and good listening.

4. … are communicated by means of the spoken word in face-to-face situations. This type of communication should also be planned, wherever possible, in advance. It is not uncommon for one to say something and then immediately afterwards realize that one should not have said it.

5. … is also a very common means of spoken communication. We should use it properly as it is frequently an effective public relations linkage. Good telephone «manners» should always be considered as very important.

B

Reference words: notice boards, suggestion boxes, bulletin, electronic mail, circular, report

There are many types of written communication such as reports, circulars, notice boards, bulletins, journals, suggestion boxes, electronic mail, newsletters, etc.

1. … are used to draw the attention of staff and sometimes the public to some information. Their setting should ensure that those who are entitled to access the information have the attention drawn to the information displayed. They should be kept to date with the removal of stale information and the timely affixing of new ones.

2. … may be introduced in various chosen places to promote and facilitate upward communication. Suggestions may be brought to management's attention in order to improve output, routines and the avoidance of problems.

3. … is very widespread now but it is an effective means of disseminating information. It is very convenient, speedy and cost-effective when the necessary office equipment is installed in most offices.

4. … is a printed advertisement, directive, or notice intended for mass distribution.

5. … is an official document that carefully considers a particular subject.

6. … is a news report on radio or television; an official statement that tells people about something important; a letter or printed statement that a group or organization produces to tell people its news.

IV. Customs can take the initiative by contacting representatives of news organizations as part of a planned strategy or communication programme, to disseminate one or more specific messages, or to convey the information necessary to achieve particular aims (provide information about a new procedure, etc.). Contacts may take the following forms: (Choose six items.)

1. a news conference or briefing

2. a photo opportunity

3. a fax

4. a teletext

5. a mobile telephone

6. an interview with a designated Customs spokesperson

7. a news release or article

8. a public speech

9. a letter

10. a special event to which media and the public are invited

V. Complete the the following statements. Give your reasons. Supply some additional information.

Ø This century has seen extraordinary innovations in the way we communicate. First we had the telephone, then radio, television, fax machines and now the Internet. The Internet is …

Ø Maintaining two-way communication (both internal and external) ...

DO IT FOR FUN

I. Match the headlines (1–10) with the short articles (A–J).

1.	Major Workload Activities	6.	Secure your Future!
2.	Admission Information	7.	The Graduate

3.	Customs' New Legal Chief	8.	Stansted Officer Assaulted
4.	Training Makes a Winner	9.	New Services
5.	Insurance Premium Tax	10. Alcohol, Food and Fun

(A)We still remember the «drunk» trains and buses from Finland when tens of thousands of Finns filled St. Petersburg's streets, restaurants and inns on weekends. In those days there was something like a dry law in Finland. Nowadays there is an abundance of beer, vodka and wine in Helsinki, but, as before, vodka is very expensive. You can have a fine meal in the countless cafes in Finland, but they do not serve strong alcoholic beverages there. The restaurants and night clubs are, of course, better, but the prices there are very high. (Finland)

(B)Admission to the Customs Academy is open to all. Most Academy courses are offered periodically throughout the year for maximum scheduling flexibility. Early registration is suggested since class sizes are restricted to ensure the optimum level of personal attention. Tuition is payable in advance. (USA)

(C)There is a dedicated IPT (Insurance Premium Tax) team to take care of the traders. The Collection has been split into three separate «links»: Lynne Clare is the Liaison Officer; her role is to co-ordinate IPT on a daily basis. The other members of the team are: Karen Green and Mike Smith. (UK)

(D)North West Collection is a regional winner in the national training awards sponsored by the Department of Employment. The award recognizes the collection's advanced practical rummage training which is targeted specifically at front line officers at seaports throughout UK who already have experience in vessel search and need to increase their expertise. (UK)

(E)Processing 600,000 VAT returns and remittances every month still left Shirley Baker with the energy to pursue a BA Honours degree with the Open University. Shirley, who works in the Valuation Section of Accounting Services Division, earned her BA in art and literature after studying for six years. She received her degree at Ely Cathedral, watched by a very proud family. (UK)

(F)
	FY 2005	FY 2015
Air passenger processing	29,946	46,804
Sea passenger processing	4,988	6, 798
Vessels processed
Revenue collected (million)	$ 8,225	$ 17,995

(USA)

(G)David P. has been appointed solicitor to HM Customs and Excise. Mr. P. has been legal adviser to the Ministry of Defence since 1991, and a principal assistant treasury solicitor since 1990. He was educated at Poole Grammar School and the Polytechnic of Central London where he studied for a law degree. (UK)

(H)Mr. Sean D. has successfully run mid-career seminars in the Thames Valley. The aims of the seminars are:

• to explain the full range of benefits available under the Civil Service Pension Scheme;

• to provide a personal consultation;

• to provide advice on financial planning ... (UK)

(I) A man carrying 10,000 ecstasy tablets assaulted a Customs officerat Stansted Airport. George Capper, 18, was stopped on arrival from Amsterdam. Following an examination of his baggage which revealed the pills he was asked to undergo a body search. He asked to appeal to a magistrate and attempted to escape while awaiting arrangements for the hearing.

Caper was jailed for 5 years at Southern Crown Court for drug smuggling and ordered to serve a six months' concurrent sentence for the assault. (UK)

(J)The Oktyabrskaya railway offers its clients over forty types of services. External contact sections provide assistance in registering visas and foreign passports, and they also organize trips to European countries. The Freight declaration section prepares Customs declarations for goods crossing the Russian border. The Baggage department assures the transportation of baggage and freight within Russia and abroad and

safeguards all types of baggage. The Business centre has Xerox machines and Computer service available to passengers also helps organize pre- and post-trip service. (Russia)

II. Unjumble the following paragraphs to make up two texts: «Channel Link-up» and «Finding the facts».

(1) A six-member fact-finding group including delegates from the EC, France, Germany, Greece and the UK visited the Gothenburg Customs region of Sweden to find out how the external maritime frontier is managed.

(2) Senior managers from French and UK Customs met at Southampton to discuss how developments in intelligence and anti-smuggling techniques can help the working relationship between the two countries in cross-Channel ports.

(3) The group congratulated their hosts on their achievements in just nine months of EC membership and on having undergone a major reorganization of Swedish Customs last July.

(4) Delegates were briefed on the Swedish Customs organization and the Customs information system for clearing imports and exports. They also attended a presentation by the Port of Gothenburg.

(5) French Customs directors representing ports from Dieppe to Nantes, a French embassy official and senior Customs managers from Southern England attended the meeting hosted by Southern England collector Chris Packman.

(6) The collector said he was keen to develop plans geared towards joint operations and exercises in the future.

(7) The two-day visit was organized as part of the Commission's Customs strategy aimed at identifying common problems, areas for improvement and examining possible solutions to various aspects of Customs policy.

III. Agree or disagree with the following statements. Give your reasons. Discuss your answers with your partner. Supply some additional information.

1. Training of officers in the field of communications will always remain important.

2. It is thought that the overwhelming priority of Customs activity is the fight against commercial fraud in all its manifestations.

3. Recently political and economic changes – most spectacularly in a large number of transition and developing economies – have emphasized the values of market-based competition.

3. Policies directed at protecting and supporting «domestic» firms and products have become more difficult to implement, not least because of the difficulty of identifying «national origin» with a real meaning in a globalizing world.

4. Market-based approaches and competition values in domestic policy are equally desirable internationally.

5. Lack of (or constraints on) market competition can give rise to international friction.

6. Foreign goods, services, ideas, investments and business people have to be able to benefit from opportunities to compete in the market on terms equal or comparable to those enjoyed by local producers.

UNIT 14. CUSTOMS OFFENCES

Study the following words and word combinations from the text.

prejudicial [preʤʊˈdɪʃəl] пагубный

to confer upon возлагать на …

investigatory powers следственные полномочия

to take precautionary measures принимать меры предосторож-

ности

to seize задерживать

to detain арестовывать, задерживать

fraudulent intent злой умысел

inadvertent [ɪnədˈvɜːtənt] непреднамеренный, неумышлен-

ный

force majeure [fɔːs mæˈʒɜːr] непреодолимая сила

the nature of the alleged характер предполагаемого пре-

offence ступления

to contravene нарушать

forfeiture [ˈfɔːfɪʧə] конфискация

TEXT 14.1. CUSTOMS OFFENCES

(Excerpts from Specific Annex H.2 concerning Customs offences)

The primary task of Customs is to ensure compliance with Customs law. Customs offence means any breach or attemted breach of Customslaw¹. Offences against Customs law are prejudicial to the economic, social and fiscal interests of States and to the legitimate interests of trade. Customs offences may be dealt with by the Customs authorities, in accordance with procedures laid down in national legislation. In this case only Customs offences which are regarded as relatively serious are

brought before the administrative tribunals or courts of law.

National legislation confers upon the Customs authorities a wide range of investigatory powers in connection with Customs offences. For example, they can examine the production of documents and search persons and premises.

When a Customs offence has been established, the Customs authorities are empowered, in certain circumstances, to take the necessary precautionary measures and, in particular, to seize or detain the goods

¹ International Convention on Mutual Administrative Assistance for the Prevention, Investigation and Repression of Customs Offences (Nairobi, 9 June 1977).

and means of transport The penalties applied in respect of Customs offences vary according to the seriousness or the importance of the offences. Customs offences which are regarded as particularly serious may have severe consequences. In case of offences which are regarded as of minor importance a small fine is imposed.

If there is no fraudulent intent, there is normally no penalty. These are the cases of an inadvertent error, through force majeure or other circumstances beyond the control of the person concerned. National legislation shall specify which persons can be held responsible in connection with the commission of a Customs offence.

Depending on the seriousness of the Customs offence, the Customs authorities may be empowered to require security, to seize or detain the goods and means of transport, or to detain the persons concerned and hand them over to other competent authorities .

After discovering a Customs offence the Customs authorities shall inform the person concerned as soon as possible of the nature of the alleged offence, the legal provisions that may have been contravened and, as appropriate, the possible penalties.

Goods shall not be seized or detained unless they are liable to forfeiture or adequate security cannot be given or they may be required to be produced as evidence at some later stage in the procedure or are subject to prohibitions or restrictions.

The penalties commonly applicable are fines, forfeiture of the goods and, where appropriate, forfeiture of the means of transport.

In cases where penalties are applied, the following Customs offences should be punishable only by a small fine provided that there is no question of fraudulent intent:

• failure to present goods within a specified time limit;

• failure to follow the itinerary prescribed for the conveyance of goods under Customs control;

• failure to produce documents or information within a specified time limit.

The fines are normally based on the amount of the duties and taxes evaded or unduly repaid and not on the value of the goods.

(International Convention on the simplification and harmonization of Customs procedures.

Kyoto, 18 May 1973)

EXERCISES

I. Match the words from the text with their corresponding definitions.

1. conveyance a. having a bad effect on something

2. fraudulent b. to give or grant some right, title, etc.

3. forfeiture c. given as a fact without proof

4. inadvertent d. based on criminal deception

5. confer e. to act against (a law)

6. statutory f. transportation, carrying

7. alleged g. done thoughtlessly, not on purpose

8. contravene h. fixed, required by law

9. prejudicial i. the act of loosing something as a punishment

II. Find the synonyms by matching left to the right (sometimes more than one option is possible).

1. consequence a. purpose

2. circumstances b. penalties

3. intent c. conditions

4. error d. proof

5. fines e. route

6. itinerary f. result

7. breach g. testimony

8. premises i. mistake

9. evidence j. infringement

10. restriction k. building

l. effect

m. limitation

n. violation

III. Sort out the following words by putting them into two columns.

to smuggle, to detain goods, to impose a fine, to change a certain itinerary, to seize goods, to hand the persons concerned over to other competent authorities, the forfeiture of means of transport, to evade duties and taxes, breach of the statutory provisions

OFFENCES PENALTIES

IV. Match left to the right to complete the sentences by adding if or unless.

1. In some countries Customs a. a Customs offence has been offences are dealt with by the established.

Customs authorities ...

2.	There is no penalty ...	b. there is no question of
		fraudulent intent.
3.	Goods shall not be seized or	c. they are subject to prohibitions
detained ...	or restrictions.

4. The Customs authorities are d. the Customs offences are empowered to take the necessary regarded as serious. measures ...

5. Some Customs offences are e. they fail to present goods punishable only by a small fine ... within a specified time limit.

6. The Customs authorities cannot	f. they are liable to forfeiture.
examine	the	production	of
documents or search persons and
premises ...
7. The	persons	concerned	are	g. a	Customs offence	arises
supposed to pay a small fine ...		because of an inadvertent error.
8. Goods cannot be required to be	h.	national legislation	confers
re-exported ...			investigatory powers upon them.

V. Translate into English.

1. Какие нарушения таможенных правил передаются в адми-нистративные органы или в суд?

2. Какие полномочия, связанные с расследованием таможенных нарушений, национальное законодательство делегируется таможен-ным властям?

3. Когда могут быть предприняты необходимые меры предосто-рожности по задержанию груза?

4. В каких случаях таможенные нарушения имеют серьезные последствия?

5. Какой штраф налагается при отсутствии умышленного наме-рения нарушить правила?

6. Когда таможенные власти имеют право задержания опреде-ленных лиц и передачи их другим компетентным органам?

7. Кого следует проинформировать таможенным властям о харак-

тере предполагаемого нарушения возможных санкциях?

8. В каких случаях не следует конф сковывать или задерживать товары?

9. Какие таможенные на ушения влекут за собой лишь неболь-шой штраф?

10. Зависит ли размерштрафа т величины таможенных пошлин и сборов?

VI. Speculate about the following.

1. The necessary precautionary measures taken by the Customs authorities.

2. A usual procedure after discovering a Customs offence.

3. Customs offences punishable only by a small fine.

4. Crime doesn't pay. (рroverb)

devastating

to undermine [ʌndəˈmaɪn] counter-laundering measures

concerted

the Financial Action Task Force on Money Laundering

strict safeguards strides

bank-reporting law gambling embezzlement [ɪm'bezlmənt] proceeds (pl.) ['prǝusi:dz] conspicuous [kən'spɪkjʊəs] to overlap

Study the following words and word combinations from the text.

bank-secrecy law закон о тайне банковских опе-раций

закон о банковской отчетности азартные игры хищение, растрата

доход, вырученная сумма заметный, видный

перекрывать, частично совпа-дать

разрушительный

подрывать

меры по борьбе с отмыванием денег

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TEXT 14.2. MONEY LAUNDERING

The growth in international trade, the expansion of the global financial system, the lowering of barriers to international travel, and the surge in the internalization of organized crime have combined to provide the source, opportunity, and means for converting illegal proceeds into what appears to be legitimate funds.

Money laundering¹ happens in almost every country in the world, and a single scheme typically involves transferring money through several countries in order to obscure its origins.

Money laundering, at its simplest, is the act of making money that comes from Source A look like it comes from Source B. In practice, criminals are trying to disguise the origins of money obtained through illegal activities so it looks like it was obtained from legal sources. Otherwise, they can't use the money because it would connect them to the criminal activity, and law-enforcement officials would seize it.

The rise of global financial markets makes money laundering easier than ever – countries with bank-secrecy² laws are directly connected to countries with bank-reporting laws, making it possible to anonymously deposit «dirty» money in one country and then have it transferred to any other country for use.

Examples of money laundering activities include organized crime, drug trafficking, prostitution, gambling, funding terrorism, illegal arms sales and smuggling. Regarding the financial services industry, money laundering activities include embezzlement, insider trading, bribery, tax evasion and fraud schemes.

The basic money laundering process has three stages:

1. Placement. The physical disposal of cash proceeds derived fromillegal activity. At this stage, the launderer inserts the dirty money into a

¹ Money laundering – the crime of moving money that has been obtainedillegally through banks and other businesses to make it seem as if the money has been obtained legally (Cambridge Advanced Learner's Dictionary & Thesaurus Cambridge University Press).

² Bank secrecy is a legal principle in some jurisdictions under whichbanksare not allowed to provide to authorities personal and account information about their customers unless certain conditions apply (for example, a criminal complaint has been filed.

legitimate financial institution. This is often in the form of cash bank deposits. This is the riskiest stage of the laundering process because large amounts of cash are pretty conspicuous, and banks are required to report high-value transactions.

2. Layering. It involves sending the money through various financialtransactions by creating complex layers of financial transactions designed to disguise the audit trail and provide anonymity. Layering may consist of several bank-to-bank transfers, wire transfers between different accounts in different names in different countries, making deposits and withdrawals to continually vary the amount of money in the accounts, changing the money's currency, and purchasing high-value items (boats, houses, cars, diamonds) to change the form of the money. This is the most complex step in any laundering scheme, and it's all about making the original dirty money as hard to trace as possible.

3. Integration. The provision of apparent legitimacy to criminallyderived wealth. At this stage, the money re-enters the mainstream economy in legitimate-looking form – it appears to come from a legal transaction. This may involve a final bank transfer into the account of a local business in which the launderer is «investing» in exchange for a cut of the profits, the sale of a yacht bought during the layering stage or of the profits, the sale of a yacht bought during the layering stage or the purchase of a $10 million screwdriver from a company owned by the launderer. At this point, the criminal can use the money without getting caught. It's very difficult to catch a launderer during the integration stage if there is no documentation during the previous stages.

The three basic stages may occur as separate and distinct phases; they may occur simultaneously; or, more commonly, they may overlap. How the basic steps are used depends on the available laundering mechanisms and the requirements of the criminal organizations.

Money laundering has become a global problem. It can have devastating effects on the soundness of financial institutions and undermine the political stability of democratic nations.

The international response to laundering has taken a number of forms, including multilateral treaties, regional agreements, international organizations, and the identification of universal counter-laundering measures.

The Vienna Convention of 1988 represents the first concerted effort toinfluence the international community's response to drug money laundering.

It requires the parties to take specific actions, including steps to enact domestic laws criminalizing the laundering of money derived from drug trafficking and provide for the forfeiture of property derived from such offenсes. The treaty also promotes international cooperation as a key to reducing the global threat of money laundering and requires states to provide assistance in obtaining relevant financial records when requested to do so without regard to domestic bank secrecy laws.

The Council of Europe is a regional organization established to strengthen democracy, human rights, and the rule of law in its Member States, in part, by harmonizing its policies and encouraging the adoption of common practices and standards. It adopted the Strasbourg Convention in November 1990, which requires each party to adopt legislation that criminalizes money laundering. The treaty also requires signatories to adopt laws authorizing the forfeiture of the proceeds of serious offences. Members must provide investigative assistance to foreign jurisdictions regarding forfeiture cases and take appropriate measures to prevent disposal of subject property prior to confiscation.

There are countless organizations trying to get a handle on the problem. In the United States, the Department of Justice, the State Department, the Federal Bureau of Investigation, the Internal Revenue Service and the Drug Enforcement Agency all have divisions investigating money laundering and the underlying financial structures that make it work. State and local police also investigate cases that fall under their jurisdiction. Due to the fact that global financial systems play a major role in most high-level laundering schemes, the international community is fighting money laundering through various means, including the Financial Action Task Force on Money Laundering (FATF). The United Nations, the World Bank and the International Monetary Fund also have anti-money-laundering divisions.

Most countries now have implemented principles and rules to combat money laundering. These rules should be implemented according to each country's specific circumstances and constitutional framework, allowing flexibility. In their fight for combating money laundering countries should:

ü Determine which serious crimes would be designated as money laundering offences.

ü Take measures including legislative ones, to enable it to criminalize money laundering and should consider both monetary and civil penalties.

ü Be able to confiscate property laundered, proceeds from, instruments used in or intended for use in the commission of any money laundering.

ü Monitor the physical cross-border transportation of cash and bearer negotiable instruments, subject to strict safeguards to ensure proper use of information.

Multilateral agreements that require participants to adopt anti-laundering measures and the regional and world organizations that have developed and encouraged a standardized approach to addressing laundering all have contributed to the strides made in addressing the challenges posed. Only with laws that have been harmonized can law enforcement agencies, working together with financial institution administrators and regulators, combat this ever - increasing problem.

Answer the following questions.

1. What is money laundering?

2. What stages does the prosess of money laundering involve?

3. What international organizations are trying to get a handle on the problem?

FOLLOW-UP ACTIVITIES

I. Punctuate the following text.

A South African gold smuggler was rumbled by Heathrow anti-smuggling teams through a mixture of teamwork co-operation and coincidence officers from Heathrow's station 25 struck gold while searching for drugs in the workings of an imported photocopier they found 550 South African Krugerrands concealed inside the gold coins each worth £ 240 were hidden in the base of the machine sent from South Africa to a Hampshire industrial estate officers removed the coins then sent the photocopier to await collection at the import agent's warehouse informing the collection investigation unit (CIU) of the find the following morning the staff doing a routine anti-smuggling check at terminal 4 found $240,000 cash and $32,000 in traveller's cheques in a passenger's baggage they suspected the money might have a drugs connection so they intercepted the bag's owner and called in the CIU

duty team to interview him said case officer Phil G in the interview the passenger mentioned that he would be visiting a company in Hampshire later that day the same company the photocopier was addressed to Phil added CIU staff made the connection with the copier awaiting collection returned the money and placing him under surveillance released him after arranging Customs clearance the man collected the copier the following day he drove to the industrial estate stopping en route to buy a hammer he was arrested while examining the copier at the industrial estate when interviewed under caution he admitted to smuggling the Krugerrands out of South Africa in order to avoid exchange control regulations and into the UK in order to avoid VAT the smuggler paid a £42,000 penalty and a £33,000 restoration fee that evening

II. Match the words on the left (a–j) with their corresponding definitions on the right (1–10).

A

a. breach 1. illegal activities in general

b. contravention 2. the use of something in a way that it should

not be used

c. infringement 3. the act of doing something that is not

allowed by a law or rule

d. offence 4. to go onto someone's private land without

their permission

e. abuse 5. when someone does something that is not

allowed by a law or rule

f. trespassing 6. a violation or breach of a law, custom,

rule, etc.

g. violation 7. to do something that is against a law or

someone's legal rights; an act that disregards an agreement or a right

h. crime(s) 8. an action that breaks a law, rule, or

agreement

B

Fill in the gaps with the right word from the exercise above.

1. The defendant was charged with a range of …, from theft to murder.

2. Driving without a licence is an …

3. It was clear that they had not acted in … of the rules.

4. … is an act of breaking a law, promise, agreement or relationship.

5. Minor … of the law will not be punished.

6. Drug and alcohol … contributed to his early death.

7. Anyone found acting in … of these regulations will no longer be allowed club membership.

8. I hope we are not … on someone's land.

III. Find the first sentence to the following text. Choose from:

1. Members of the public are being encouraged to report any suspicious activity.

2. The remains of some of the world's rarest creatures have been found in a rural area of Wales in a Customs-led operation.

3. Investigation division officers have smashed what is believed to be the biggest ever case of excise duty fraud, involving likely revenue losses of more than £ 100 million.

4. Police and Customs joined forces to launch the «Coastwatch» project.

Assisted by police, 280 officers raided almost 40 addresses in the London area, seizing spirits, beers and other excise goods worth millions of pounds. The goods were intended for export, tax free, but had been diverted onto the home market with no taxes paid.

This diversion fraud is different from bootlegging where goods are imported from other parts of Europe for resale.

The premises raided during the operation – code name Fluke – included cash and carry outlets, bonded warehouses, transport companies and private homes. A number of commercial vehicles have also been seized.

Nineteen arrests have been made and the investigation continues.

IV. Unjumble the following sentences to make up two texts:

«Fighting off the Fakers» and «VAT Fraud».

(1)Two Essex men have been arrested in connection with an alleged £300,000 VAT fraud (UK). (2) A recent seminar in Stafford, hosted by Central England Collection, demonstrated that counterfeit goods aren't all perfume and T-shirts. (3) The participants of the seminar (VAT investigators) searched the business premises in the local area and removed books and records. (4) The men were both directors of a road haulage company suspected of VAT evasion. (5) Apart from the revenue lost, there was the question of public safety if poorly-manufactured parts ended up in cars and aircraft. (6) The seminar follows a similar event organized by other Collections in the South earlier this year. (7) Senior officer Peter H. said that one of the men could have faced up to seven years' imprisonment if the case had gone to court. (8) The fraudster agreed to an out-of-court settlement of £2,000 for bootlegging after excise officers at Dover seized his vehicle – containing more than £2,000 worth of wine, beer and cigarettes. (9) The seminar demonstrated the commitment of the department to combat the growing problem.

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