Transcript TTFSE Stability Pact1302

Trade and Transport Facilitation in
Southeast Europe
http://www.seerecon.org/ttfse.htm
Preliminary Lessons and Challenges
World Bank
Stability Pact Working Group
on Trade Liberalization and Facilitation
May 13-14, 2002
TTFSE Program
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Regional Investment Program - US$120 million, WB $78 million
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Co-financed with the US, partnership with the EU
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8 countries/one project in each - implementation started in 2001 for first six
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Three years implementation
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Goals: (a) reduce : (i) processing time for legitimate traders/transporters, (ii)
facilitation payments, and (iii) corruption related to international transport and
trade; and (b) in parallel improve effectiveness of controls and of anti-smuggling
efforts
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Components: (i) TA for border agency modernization (Customs), (ii) IT
equipment and TA, (iii) border crossing improvements, (iv) training to trade &
transport communities, (v) website on all applicable rules/procedures of border
agencies
TTFSE Principles
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Holistic approach (all border agencies included)
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Measurement of performance related to trade and transport
facilitation
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Use of regional mechanisms:
*Regional Steering Committee (RSC)
*Regional Website
*Regional Training for border users
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Strong Involvement of users:
*Constant dialogue (participation in RSC)
*Building on an existing regional network (PRO-Committees)
*User surveys (in each country)
*implementation of trade facilitation component
*Building distance learning programs with professional associations (IRU, FIATA)
Performance Indicators
comparable across countries
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Customs efficiency indicators
-
6 measures of national customs performance
- allow for comparison (evolution)
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Pilot site indicators
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data collected regionally
- overall processing measurement (from entry to exit)
- three main indicators linked to loan/credit covenants : (I) percentage of
vehicles cleared in less than 15 minutes; (ii) percentage of physical inspections; (iii) trucks
opened at border.
- consistency of data collection to ensure comparability
www.seerecon.org/ttfse//RegionalInitiatives/TTFSE/TTFSE_Manual.pdf
Customs Performance Indicators:
Revenue Collected per Staff (US$)
Croatia
800,000
700,000
600,000
500,000
400,000
300,000
200,000
100,000
1999
Yugoslavia
Romania
Moldova
2000
Macedonia
Croatia
Bulgaria
2001
BiH_RS
BiH_Fed
Albania
0
Regional User Survey
First phase (2001/2002) – strengthening baseline and
methodology
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Objectives:
-
supplementing performance measurements through survey, interviews
and discussion groups to analyze improvement of border agencies’
performance in each country
- drawing attention to decision makers on areas of priority improvements
(strong tool)
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Sample: 150 companies, with validation from international cities
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Six dimensions: Customs law; Communication; Procedures; Personnel;
Logistics; Integrity
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Phasing methodology: refined after phase I to increase comparability of
results (2002, 2003); transfer to Chambers of Commerce in phase II
User Survey Results
Problem groups
 all problems above average
 communication the most acute
 Bulgaria closest to average
Example
Integrity Assessment
 covers petty/small corruption only
 main recipients Customs officers
 highest level of payments BiH
 highest frequency Macedonia
Ttfse cost and trade map
TTFSE and Distance Learning
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Professional competence-an EU
requirement for road transport Operators
*EU-accession  legal harmonization
*Creation of 13 vocational training centers
(EU-PHARE/TACIS)
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Next steps in Distance Learning
*Creation of a web platform for the Global
Facilitation Partnership-Distance Learning
Initiative (GFP-DLI) (under finalization)
*IRU Academy established regional quality
standards/planned Distance Learning
*Creation of a mechanism for new Bank
projects to build on available content and
programs with certification and support their
expansion, as appropriate to new countries
*Bank/TTFSE program catalyst to attract
funding for knowledge transfer
*Prof. Associations: Leadership role *WB:
catalyst to attract funding and help in
content pooling.
*Distance Learning Certificate of
Professional Competence for truckers: two
countries being piloted BA, MK - 2 other
enrolled-three more involved shortly
*Sustainable capacity building tool
Similar approach with FIATA-Preparation
of a Distance Learning Program for
Forwarders, started in SEE
*Integration and use of content produced
by donors, professional associations
*Development of a Supply Chain Manager
Program
*Cooperation with other regions to see
what program could be expanded
TTFSE Achievements
after on year of implementation
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Sharp improvement in performance at some pilot sites through streamlined
procedures:
-Inland terminal (HR) : processing time reduced by 50% (150 minutes); Border crossing exit
time (HR) reduced by 75%;
-Advanced declaration module (BG): reduction of clearance from 210 to 15 minutes for precleared goods, and average reduction to 40 minutes
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RSC: decision on International Weighing Certificate recognized by Customs
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New Customs Law adopted in Croatia and Macedonia
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Customs modernization: introduction of Mobile Enforcement Teams (MK)
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Border inter-agency cooperation: joint check points Customs-Border Police (RO)
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Improved communication: regional website launched
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Increased awareness of border users: leads to pressure on authorities to improve
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User surveys validate all above positive trends
Main Lessons
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Benchmarking contribute to improved performance
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Performance measurements prove futility of 100%
physical inspection

…thus selective inspection based on risk assessment
is essential
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Reducing inland clearance time may be more important
than reducing border time
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Roles of Border Police and Customs need clarification
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Participation of business community offers best
dynamic for reform
Challenges Ahead
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High rotation of key staff at country level intense
Bank supervision to preserve initial results
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Delays in introducing selectivity
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Close coordination made difficult by the large number
of players
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Setbacks (conflict in Macedonia)
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First phase of an 8 year modernization processdemonstrating the approach validity
Conclusions
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Concrete positive results of TTFSE after one year
Replication of pilot improvements to other sites will
prove the success of the program
Simultaneous projects yield a bonus
Individual countries could also benefit
Development of similar program in other regions
(Caucasus, Central Asia)