TOOLS AND MEASURES FOR TRADE FACILITATION - Escap
TOOLS AND MEASURES FOR TRADE FACILITATION - Escap
TOOLS AND MEASURES FOR TRADE FACILITATION - Escap
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<strong>TOOLS</strong> <strong>AND</strong><br />
<strong>MEASURES</strong> <strong>FOR</strong><br />
<strong>TRADE</strong> <strong>FACILITATION</strong><br />
Seminar on Trade Facilitation in SPECA<br />
Countries<br />
12-13 13 December 2006, Dushanbe<br />
Noordin Azhari<br />
Chief, Trade Efficiency and Facilitation Section<br />
Trade and Investment Division<br />
UNESCAP
Why do SPECA Countries need trade<br />
facilitation?<br />
High Trade<br />
Transactions<br />
Costs<br />
More Expensive<br />
Exports<br />
Hindered<br />
Competitiveness<br />
<strong>TRADE</strong> EFFICIENCY & <strong>FACILITATION</strong><br />
2
Comparison of the process of<br />
trading across border<br />
Region or Economy Documents Time Cost Documents Time Cost<br />
for export for export to export for import for import to import<br />
(number) (days) (US$ per container) (number) (days) (US$ per container)<br />
Armenia 7 34 1600 6 37 1750<br />
Azerbaijan 7 69 2275 18 79 2575<br />
Kazakhstan 14 93 2780 18 87 2880<br />
Kyrgystan .. .. .. 18 127 3032<br />
Mongolia 11 66 3007 10 74 3030<br />
Tajikistan 14 72 4300 10 44 3550<br />
Uzbekistan 10 44 2550 18 139 3970<br />
East Asia & Pacific 7 24 885 9 26 1037<br />
Europe & Central Asia 7 29 1450 10 37 1589<br />
Latin America & Caribbean 7 22 1068 10 28 1226<br />
Middle East & North Africa 7 27 924 10 35 1183<br />
OECD 5 11 811 6 12 883<br />
Source: World Bank, 2006, http://www.doingbusiness.org/ExploreTopics/TradingAcrossBorders/<br />
3
UNESCAP<br />
Trade Facilitation Framework<br />
4
TFF targets five specific<br />
areas:<br />
• Trade and customs laws and regulations<br />
• Trade documentation<br />
• Customs clearance procedures<br />
• Trade and customs enforcement<br />
• The use of ICT for trade facilitation<br />
6
A Step-by-step Approach<br />
Stage Ai<br />
Collect feedback,<br />
analyze, assess and<br />
prioritize the needs<br />
Stage Aii<br />
Establish the<br />
Facilitation Institutional<br />
Structure<br />
Develop<br />
trade finance<br />
infrastructure<br />
Stage Bi<br />
Revise trade<br />
and customs<br />
laws and<br />
regulations<br />
Stage Bii<br />
Simplify,<br />
standardize<br />
and harmonize<br />
import-export<br />
and Customs<br />
procedures and<br />
documentation<br />
Stage Biii<br />
Implement<br />
effective trade<br />
and customs<br />
enforcement<br />
Stage Biv<br />
Implement<br />
effective<br />
information<br />
dissemination<br />
Stage Bv<br />
Apply<br />
information and<br />
communication<br />
technology (ICT)<br />
Stage Bvi<br />
Review and<br />
assess<br />
results<br />
7
Stage Ai<br />
• Collect feedback, analyze, assess and<br />
prioritize<br />
• Target group: Private sector<br />
• Aim:<br />
• Collecting a detailed feedback from a private<br />
sector players by a governmental agency (lead<br />
agency in trade facilitation implementation), or a<br />
National Trade Facilitation Body<br />
• Assessing the feedback and prioritize the needs<br />
• Method: questionnaires, surveys<br />
8
Tools available:<br />
• UNESCAP Trade Facilitation Framework<br />
and relevant questionnaires<br />
• World Bank Trade and Transport<br />
Facilitation: Toolkit for Audit, Analysis and<br />
Remedial Action<br />
• WCO Self-assessment Checklist for GATT<br />
Articles V, VIII and X<br />
9
Stage Aii<br />
• Establish the trade facilitation institutional<br />
structure<br />
• Participants: Public and private sector<br />
• Aim:<br />
• Set an appropriate intra-government and privatepublic<br />
collaborative mechanism to develop trade<br />
facilitation strategies and assist with implementing<br />
trade facilitation measures<br />
• Method: Dialogue among the government<br />
agencies themselves and government and<br />
private sector<br />
10
Tools available:<br />
• UNECE Recommendation 4 on National<br />
Trade Facilitation Bodies<br />
• UNESCAP Study on National Coordination<br />
Mechanisms for Trade and Transport<br />
facilitation<br />
• World Bank Trade and Transport<br />
Facilitation: Toolkit for Audit, Analysis and<br />
Remedial Action<br />
11
Stakeholders in general<br />
• Public:<br />
• Private:<br />
Ministry of Trade/ Economy<br />
Ministry of Transport<br />
Ministry of Finance/ Customs<br />
Ministry of ICT/<br />
Communications<br />
Ministry of Agriculture<br />
Veterinary & phytosanitary<br />
agencies<br />
Ministry of Health<br />
Immigration Office/ Agency<br />
Traders<br />
Freight Forwarders<br />
Customs Brokers<br />
National Trade and Transport<br />
Carriers<br />
Facilitation Committee<br />
(NTTFC)<br />
Insurance agents<br />
Banking sector<br />
12
Stage Bi<br />
• Revise trade and customs laws and<br />
regulations<br />
• Participants: Public and private sector<br />
• Aim:<br />
• Streamlined, clear and transparent regulations,<br />
which are harmonized with the relevant<br />
international and regional trade and customsrelated<br />
conventions<br />
13
Tools available:<br />
• Revised WCO Kyoto Convention<br />
• GATT Articles V, VIII and X<br />
• Article VII of the GATT 1994 and the relevant<br />
agreement on implementation of this article<br />
• WTO Agreement on Import Licensing<br />
Procedures;<br />
• WTO Agreement on Rules of Origin;<br />
• WTO Agreement on the Application of Sanitary<br />
and Phytosanitary Measures.<br />
14
Stage Bii<br />
• Simplify, standardize and harmonize<br />
import/export documentation and procedures<br />
• Participants: Public sector/ National Trade and<br />
Transport Facilitation Committee (NTTFC)<br />
• Aim:<br />
• Streamlined and simple trade documents and procedures,<br />
which are aligned to the international conventions and<br />
standards<br />
15
Total trade transaction approach to<br />
trade facilitation<br />
BUY<br />
SHIP<br />
PAY<br />
Prepare For<br />
Export<br />
Export Transport<br />
Prepare for<br />
Import<br />
Import<br />
INVOLVES<br />
Commercial<br />
Procedures<br />
Transport<br />
Procedures<br />
Regulatory<br />
Procudures<br />
Financial Procedures<br />
• Establish Contract<br />
• Order Goods<br />
• Advise On Delivery<br />
• Request Payment<br />
• Establish Transport<br />
Contract<br />
• Collect,Transport and<br />
Deliver Goods<br />
• Provide Waybills,<br />
Goods Receipts<br />
Status reports etc.<br />
• Obtain Import/Export<br />
Licences etc<br />
•ProvideCustoms<br />
Declarations<br />
• Provide Cargo<br />
Declaration<br />
• Apply Trade Security<br />
Procedures<br />
• Clear Goods for<br />
Export/Import<br />
• Provide Credit Rating<br />
• Provide Insurance<br />
• Provide Credit<br />
• Execute Payment<br />
• Issue Statements<br />
Source: UN/CEFACT<br />
16
Tools available (1):<br />
• United National Layout Key for<br />
Trade Documents<br />
UNECE Recommendation 1; ISO<br />
6422<br />
The most widely used<br />
international standard for trade<br />
documents<br />
Same data and information are in<br />
the same place<br />
Same format used regardless a<br />
size of paper (A4 and the U.S<br />
legal format)<br />
Precondition to move to<br />
electronic documents<br />
17
Source: UNeDocs<br />
18
Tools available (2):<br />
• WCO Revised Kyoto Convention<br />
• United Nation Trade Data Elements Directory (UNTDED; ISO 7372)<br />
• ISO Country Code: Code for Representation of Names of Countries<br />
(Recommendation 3, ISO 3166)<br />
• The United Nations Code for Trade and Transport Locations (UN/LOCODE,<br />
Recommendation 16)<br />
• Facilitation Measures related to International Trade Procedures<br />
(Recommendation 18)<br />
• UN/CEFACT Recommendation no. 3 - use of ISO Country Codes in<br />
documents;<br />
• UN/CEFACT Recommendation no. 5 – use of INCOTERMS;<br />
• UN/CEFACT Recommendation no. 7 – use of numerical representation of<br />
dates and time;<br />
• UN/CEFACT Recommendation no. 9 – use of alphabetic Code for<br />
Currencies;<br />
• UN/CEFACT Recommendation no. 16 – use of codes for ports and other<br />
locations;<br />
• UN/CEFACT Recommendation no. 19 – use of codes for modes of<br />
transport;<br />
• UN/CEFACT Recommendation no. 20 – use of codes for unit of measures.<br />
19
Stage Biii<br />
• Implement effective trade and customs<br />
enforcement<br />
• Participants: Customs Administration<br />
• Aim:<br />
• Develop the efficient trade statistics system<br />
• Identify and assess areas of risk<br />
• Allow pre-submission of documents<br />
• Implement a systematic pre-inspection and post-audit<br />
programme<br />
• Establish pre-payment of duties<br />
• Set a juxtaposed customs offices<br />
20
Tools available:<br />
• Revised WCO Kyoto Convention<br />
• WCO Risk Management Guide<br />
• WCO Guideline for the Immediate Release of<br />
Consignments by Customs<br />
• WCO Framework of Standards to Secure and<br />
Facilitate Global Trade<br />
• WCO Customs Data Model<br />
• UN/EDIFACT<br />
• UNECE International Convention on the<br />
harmonization of Frontier Controls<br />
21
Stage Biv<br />
• Implement effective information dissemination<br />
• Target group: Private sector (importers/exporters and other<br />
operators), policy makers, academia<br />
• Aim:<br />
• Develop effective dissemination of trade-related information,<br />
such as laws, regulations, procedures, documentary<br />
requirements, for business<br />
• Establish national inquiry points<br />
• Enhanced transparency<br />
• Methods& tools:<br />
• Use of a Single Window facility (Customs, MIT)<br />
• Establishing Enquiry Point (MIT)<br />
• On-line availability of information and documents<br />
22
Tools available:<br />
• Revised WCO Kyoto Convention (general annex,<br />
chapter 9, standard 9.2, “information to be readily<br />
available”)<br />
• ECE Harmonization Convention (provisions requiring<br />
availability of information on SPS inspection and on<br />
technical standards requirements)<br />
• GATT Article X – Issues of transparency and availability<br />
of trade-related information, including the modes and<br />
means of publications<br />
• ESCAP is developing a database on trade and transport<br />
facilitation, which is one of the outputs of this project,<br />
where we are trying to collect with your kind assistance<br />
all relevant laws, documents and information relating to<br />
T&TF<br />
23
Stage Bv<br />
• Application of information and communication<br />
technologies<br />
• Participants: Public sector implementer/ private sector driver<br />
• Aim:<br />
• Blueprint of the electronic trade documentation system<br />
(ETDS)<br />
• Legislation allowing for ETDS<br />
• Electronic on-line documents<br />
• Automated customs procedures and electronic documents<br />
submission<br />
• Phased approach<br />
24
Tools available:<br />
• UNESCAP: ICT Application Guidelines in Trade<br />
and Transport Facilitation for Landlocked<br />
Countries<br />
• UNESCAP: Trade Facilitation Framework (Bv)<br />
• UNECE: UN/CEFACT Standards<br />
• UNECE: UNeDOCs<br />
• WCO: Kyoto Convention – ICT Guidelines<br />
• UN/CEFACT: Single Window (Recommendation<br />
33)<br />
25
Meeting regulatory requirements and<br />
exchanging information with<br />
government<br />
Current Situation for Government & Traders<br />
Trader<br />
Transport<br />
Electronic<br />
Customs<br />
Agriculture<br />
Paper<br />
Health Dept<br />
26
A Single Authority that receives information, either on paper or<br />
electronically, disseminates this information to all relevant<br />
governmental authorities, and co-ordinates controls to prevent<br />
undue hindrance in the logistical chain (e.g. Sweden)<br />
Source: UN/CEFACT Rec. 33<br />
27
National Blueprint<br />
Aligned Paper<br />
Documents<br />
Trade<br />
Customs<br />
Transport<br />
UNeDocs Stage I<br />
Aligned Electronic<br />
Documents<br />
DDM<br />
Other XML<br />
UNeDocs XML<br />
EDIFACT<br />
TDED<br />
ISO 7372<br />
UNeDocs Stage II<br />
Integration<br />
Services<br />
Web Services<br />
Digital Signature<br />
Automated Validation<br />
XML to PDF<br />
National Services …<br />
National Strategies<br />
Secure Supply Chain<br />
Single electronic Window<br />
Transport Facilitation<br />
….<br />
UNeDocs Stage III<br />
Use of ICT Applications in Trade/<br />
Transport Facilitation (Readiness Level)<br />
28
Stage Bvi<br />
• Review and assessment of results<br />
• Participants: MIT, MRTT, MF/ Customs,<br />
ICT Agency, NTTFC, private sector<br />
• Aim:<br />
• Evaluate whether improvements of each step met<br />
national objectives<br />
• Improve on a regular basis<br />
29
APPLICATION OF UNESCAP TF FRAMEWORK<br />
Country Armenia Azerbaijan Kazakhstan Kyrgyzstan Mongolia Tajikistan Uzbekistan<br />
Stages<br />
Ai – Collect feedback, analyze, assess and prioritize needs<br />
Ai –1: Conduct detailed survey X X X X X<br />
Ai –2: Conduct focus group discussions X X X X X<br />
Ai –3: Document the findings X X X X X X<br />
Number of “” 3 0 0 0 2 0 0<br />
Aii – Establish the trade facilitation institutional structure<br />
Aii – 1: Designate a lead agency (LA) X <br />
Aii – 2: Establish a trade facilitation advisory committee X X X X X<br />
Number of “” 1 1 1 1 2 1 1<br />
Bi – Revise trade and customs laws and regulations<br />
Bi – 1: Obtain a clear understanding of the overall trade legislative X <br />
and regulatory framework<br />
Bi – 2: Review the import-export laws to determine relevance and X <br />
conformity with international conventions and obligations<br />
Bi – 3: Review customs act to assess conformity with international X <br />
conventions and recommendations<br />
Bi – 4: Review bilateral, regional and multilateral agreements on <br />
trade, transport and transit to determine whether existing legislation<br />
has incorporated elements of these agreements<br />
Bi – 5: Consolidate and streamline all trade related regulations X X X X <br />
Number of “” 4 5 4 3 5 2 5<br />
Bii – Simplify, standardize and harmonize import-export<br />
documentation and customs procedures<br />
Bii –1: Classify all tradable products and identify agencies involved <br />
in implementing trade controls<br />
Bii –2: Review current trade and customs procedures <br />
Bii –3: Streamline, simplify and harmonize trade document<br />
X X X X<br />
processing<br />
Bii –4: Align and simplify documents used in trade X X X X<br />
Number of “” 3 3 2 3 4 3 2<br />
Biii – Implement effective trade and customs enforcement<br />
30
APPLICATION OF UNESCAP TF FRAMEWORK (cont’d)<br />
Biii – 1: Develop an efficient trade statistics collecting system X X X <br />
Biii – 2: Establish channels of trade intelligence X X X X<br />
Biii – 3: Identify and assess areas of trade risk X X X X X<br />
Biii – 4: Implement systematic pre-inspection and post-audit<br />
X X X X X X<br />
programme<br />
Biii – 5: Allow pre-submission of documents X X X X X X<br />
Biii – 6: Establish pre-payment of duties X X X X <br />
Biii – 7: Conduct physical inspections based on risk profiling X <br />
Biii – 8: Set up juxtaposed customs offices <br />
Number of “” 4 6 5 2 5 1 4<br />
Biv – Implement effective information dissemination<br />
Biv – 1: Conduct information and training needs assessment X X X X X X X<br />
Biv – 2: Develop mechanisms to inform the business community X <br />
Biv – 3: Collaborate with other agencies and industry associations X X<br />
Biv – 4: Establish help desks and contact points X X X X <br />
Number of “” 2 3 2 2 3 0 2<br />
Bv – Apply information communication technology<br />
Bv –1: Develop blueprint for Electronic Trade Documentation<br />
X X X X X<br />
System (ETDS)<br />
Bv –2: Provide legislative powers for ETDS X X X X X X X<br />
Bv –3: Developing electronic online documents (eDOCs) for ETDS X X X X X X X<br />
Bv –4: Automating internal processes of agencies involved in<br />
X X X X X X X<br />
ETDS<br />
Bv –5: Appointment of ETDS vendor and contractor X X X X X X X<br />
Bv –6: Develop the ETDS system and software X X X X X X X<br />
Bv –7: Establish technical and training support X X X X X X X<br />
Bv –8: Develop e-payment system for customs duties X X X X X X X<br />
Total number of “” 17 19 15 11 21 7 14<br />
31
THANK YOU<br />
<strong>FOR</strong> ATTENTION<br />
azhari@un.org