Creating

TRADING ACROSS BORDERS 55
Who is reforming?
In 2004, 25 countries reformed their customs or trade
transport (table 9.2). Egypt was the top reformer. It established
a single window for trade documentation and
merged 26 approvals into 5. A time limit of 2 days for
clearing customs now applies. Improvements were part
of a broader reform that cut the number of tariff bands
from 27 to 6 and simplified inspections. The inspiration
was the association agreement with the European Union.
Rwanda came second. Preshipment inspection is no
longer required. The customs declaration can be made
electronically, although hard copies are still inspected
when the cargo is picked up.
Colombia, Guatemala, Peru and 4 other countries set
lower time limits for going through customs. Colombia
reduced the time limit from 5 days to 2, Guatemala from 4
to 2, and Peru from 6 to 2. If the allowed time expires and
the cargo is not cleared, the trader can claim it.
Fiji and Hungary introduced electronic filing of
customs documents. The file is submitted before the
cargo reaches the border and usually approved within
10 minutes. Now 88% of shipments go through without
stopping. For the rest, risk assessment software sends an
alert. Documents are checked in detail for 10% of trade,
and only 2% of containers are opened and inspected.
Pakistan eliminated the requirement for an import
or export license for each shipment. Previously a trader
needed to obtain a license each time he brought goods
across the border. Now the license is given to the trader,
not each cargo, and lasts 2 years. Yemen abolished licensing
for imported shipments. Instead, a general import
license is now in place. These reforms saved costs and
numerous trips to the Ministry of Trade.
TABLE 9.2
Major customs or trade transport reforms in 2004
Reform
Set time limits on customs
Introduced electronic fi ling
Abolished trade licenses
Introduced risk analysis
for inspections
Stopped mandating preshipment
inspection
Improved road and port
infrastructure
Automated trade tax payment
Source: Doing Business database.
Country
Cameroon, Colombia, Egypt,
Guatemala, Jamaica, Peru, Russia
Fiji, Hungary
Germany, Pakistan, Uganda, Yemen
Austria, Mauritius, Timor-Leste
Philippines, Rwanda
Afghanistan, China, Mauritania
United Arab Emirates
Iran, Panama, Spain
In the United Arab Emirates new berths were added
at Jebel Ali port. In 2004 it took 6 days to load cargo.
Now, an average of 17 hours. Similar improvements in
Shanghai cut loading time by two-thirds. In Mauritania
the Nouakchott port now operates around the clock.
Previously it was open just 60 hours a week.
More than half the reforms in 2004 took place in
poor countries. But on average it still takes 3 times as
many days, nearly twice as many documents and 6 times
as many signatures to import in a poor country as it does
in rich countries (figure 9.2). Obstacles to exporting are
just as large. Trade in Africa takes the longest—45 days
on average to export and 59 to import. Typical regulations
in Africa require 18 signatures to export and 28 to
import. Outside the OECD, traders in East Asia have the
easiest time (figure 9.3). Latin America ranks next. Many
of the recent reforms there are inspired by regional trade
agreements with the United States.