Morocco

In the early 1980s, Morocco's political leaders decided to open their economy to world markets despite the danger of economic vulnerability. They adopted a series of priority measures to attract foreign investors into the country and ensure the safety of their investments. Because Morocco has abundant skilled labor, the government encouraged foreign industrial and financial institutions to invest in major sectors such as textiles, electronics, and automobile accessories. These export promotion efforts not only increased exports substantially but also encouraged export diversification. The Moroccan economy is now open and trade barriers are almost nonexistent.

Modernizing customs administration is an integral part of trade promotion, and Morocco began reform of its customs administration and customs services early on, before reform became an urgent necessity. The country's pragmatic, open-door policy called for three major areas of focus, namely:

* enhancement of customs management quality

* development of an improved tariff schedule

* simplification of customs procedures

After summarizing the factors that led the Administration of Customs and Indirect Taxes (ACIT) to opt for modernization, this chapter describes the process that led to the definition of a strategy, presents the framework for reform implementation, describes the new working environment, and analyzes the results achieved to date.

Background to Customs Reform

Several factors facilitated the customs administration reform: clear goals, abundant human and institutional resources, and expert management guidance.

Problems and Goals

In the early 1990s, to foster economic development and to sustain an infant processing industry, King Hassan II envisaged a series of measures to boost foreign trade. During the implementation of these measures, serious malfunctions were detected in the customs service, for which some high-ranking officials were held accountable. In response to those problems, the minister of finance issued clear-cut directives to his staff to analyze the criticisms leveled at the customs service, assess the existing system, and propose reforms adapted to developments in the international trading environment. Morocco has been a member of the World Customs Organization since the inception of that organization in 1995 and has adjusted its approach to international trade in accordance with the World Customs Organization's successive conventions and agreements. In this context, it reformed its customs administration to facilitate customs clearance transactions while securing customs revenue.

Institutional Resources

The customs administration was already disciplined and properly structured, which facilitated the attainment of the reform objectives. Staffers in all positions were able to emerge from a culture of exhaustive controls to lend their full support to trade facilitation measures that were introduced progressively. In addition, representatives of the trading community attended meetings designed to enlist the active participation of customs administration staff members.

Foreign consultants reinforced the contribution of national actors. France provided high-level experts to propose changes in the Ministry of Finance. Experts from the International Monetary Fund contri...

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