Transcript Global Facilitation Partnership

Corridor/Border Management:
examples from outside the Caucasus
Gerald Ollivier
Transport Specialist
Overview
Time as a trade barrier
Corridor Approach
Integrated Border Management
and Single Electronic Window
Developing countries are moving up
the technology ladder…(GEP 2004)
Low income countries: Share of
exports, 1981-2001 (percent)
Middle income countries: Share of
exports, 1981-2001 (percent)
100
90
90
80
70
60
50
40
30
20
2001 10
1981
0
80
70
60
50
40
30
20
10
0
Resource- Low tech
based
Medium
Tech
High tech
2001
1981
Resource-based
Low tech
Medium Tech
High tech
Time is a Trade Barrier (1)
Trade occurs in physical space and moving goods
requires time.
Trade logistics costs are as important as tariffs
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Each day saved is equivalent to 0.5% tariff (Hummels)
7% of value of world trade is cost of administration of trade
logistics (UNCTAD)
Time/reliability/adaptability more important in multistage production (global supply chain)
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% of vertical specialization in trade (use of imported inputs for
exports) has grown 30% in the past 20 yrs and accts for half
of overall trade growth.
Willingness to pay to save time:
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Share of airfreight in US grew from 7% in 65 to 30% in 98
Airfreight 7 times as expensive as ocean shipping.
Time is a Trade Barrier (2)
Imagine if the contents of a ship can be
processed in half a day instead of a day …or
a truck can do 6 roundtrips instead of 2 a
month
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Infrastructure capacity increased
Twice the cargo, twice the # of ships serviced,
twice the number of containers, increased harbor
fees, considerably lower cost to traders
…even more benefits:
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These efficiencies offer wider attraction to trading partners
Efficiency in vessel turnaround attracts new trading,
market center, distribution business.
Time is a Trade Barrier (3)
A wide-body jet can carry fresh produce from
supplier in one hemisphere to the buyer in the
other hemisphere on the same or next day.
BUT it can take 10 days to :
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Process orders
Obtain customs and border agency approvals
Book and schedule transport and distribution
Obtain payment approvals
Complete the transaction
This means removing 10 days from the selling
season, revenue that cannot be replaced
Corridors
Definition
A linear system of transport infrastructure and related
services connecting centers of economic activity and
bounded by transport gateways which provide access to
sources and destinations outside the corridor
Construction
Corridors are usually created through back-to-back
bilateral agreements which are framed for international
or regional protocols
Management
Corridors are not managed in an operational sense as
most of the activities are performed by individual logistics
service providers operating in the private sector. The
important management function is coordination of
policies between adjoining countries
Examples
West Bengal
GMS
Maputo
Transkalihari
North Borneo
Northern Corridor
EWEC
Asian Highway
Can-Mex
Corridor Components
Physical
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Gateways and Border Crossings
Designated Routes, Single and Multimodal
Regulatory
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Trade and Transit Policy
Cargo Inspection and documentation
Security, Entry and Enroute
Transport Services and Equipment
Cargo Ownership
Liability and Arbitration Rules
Duties and Taxes
Cost Recovery Mechanism
Functions
Access to Landlocked Countries
Integrate Trading Communities
Economic Development Corridors
Coordinate Infrastructure Development
Control Smuggling
Corridor Economic Benefits
Domestic Transport Services
Complementary Logistics
Services
Toll Revenues/user charges
Trade Facilitation
Regional Economic Development
Inhibitors to Trade Facilitation
Traditional Practices
Lack of Transparency
Technical Controls
Regulations
Paper Documents
Payment Methods
ICT and E-Commerce
Infrastructure and
Experience
Physical Space and
Capital
Costs of Admin/logistics
14%
Customs-Centric
Systems but other
agencies
Customs only 15% of
Trade Data
Post 911
Cultural Issues
Integrated Border Management
Enhancing services to users
WTO TF discussion
Geneva/Kyoto Conventions
Organizing processing by function
(an agency can apply regulations
for another one at low cost)
Coordination across border (joint
crossing points)
What a border crossing can
look like
Truck parking lot
Truck parking lot
Country A's enclave in the
territory of Country B
(border line)
Actual border
line
Police
Green channel exit
CustomsPolice
Customs
Trucks
Joint coach examination
Country A Country B
Secondary
Police
Customs
Police
Customs
Secondary
Separator
Adminstrative A
Exit country control boths
Cars (red and
green channels)
Secondary exam
diversion
Administrative B
Secondary exam diversion
Secondary
Secondary
Police
Customs
Police
Customs
Separator
Joint coach examination
Separator
Country A's enclave in the
territory of Country B
(border line)
Green channel exit
Police
Trucks
Customs
Police
Customs
Truck parking lot
Truck parking lot
Source: M. Zarnowiecki
Principles of Electronic Trade Facilitation
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Electronics Replaces
Paper
Reengineer
Processes: Codes
and Standards
Upgrade Customs
ICT Systems and
Processes
Transparency
Electronic Payment
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Pre and Post Event
Audits
Container Scanning
Straight-Through
Processing
Risk Management
Create Facilitation
Agency
Provide a Gateway to
Customs Systems
Automate Communities
“Single Window”
A facility providing standardized information
and documents with a single body to fulfill
requirements for import, export and transit
regulations and clearance.
Expedite and simplify information flows
between trading community and the
government
SEW Success Factors
High political mandate (Tunisia)
First detailed analysis, followed by process and
documentary reengineering/streamlining with all
key players (border agencies, transport,
traders…)
Baseline indicators and performance
measurement
Needed minimum infrastructure
Facilitating exchange of information: Common
and intelligent network, international
standards,regulatory framework for e-signature
Models of “Single Window”
Single Authority
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Sweden, Sokhna for its clients
Single automated system for the collection
and dissemination of information
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Integrated system: data is processed through the
system (USA)
Interfaced system: data is sent to the agency for
processing (Tunisia, but elements of transactions)
Combination of the above
Automated information transactions system
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Singapore, Mauritius
ICT reduces Time and Increases
Efficiency - Examples
Mauritius Trade Net has reduced average
clearance times of goods from 4 hours to 15
minutes
Tunisie Trade Net (TTN) has reduced
processing times of trade documents from
max of 18 to 7 (3.5 days in cases not requiring
technical controls).
Time savings in Singapore (STN) translate
into 1% of GDP per year.
Implementation Approach
Phased Approach
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Complexity
Quick wins to secure confidence
International Standards (UN EDIFACT, WCO Data
Model, etc.)
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International information exchange requires standards
Pilot users
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Surveys / evaluation / fine –tune
Implementing body
Issues
Trade Processes - Chain effect
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As good as weakest link in the chain
Benefits only visible when everything works
Complex
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Many details that must fit together
Resistance to change
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Organizational
Shift from paper to electronic processes
Prepare to manage project risks
-Multiple activities / issues to address
Inter-institutional dependencies
Players in the Trade Value Chain
Importer/Exporter
Trade Professionals
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Customs Broker
Freight Forwarder
Shipping Agent
Container Terminal
Ports and Harbours
Storage
Transport
Shippers
Customs
Revenue
Technical Controls
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PIAs
Cert. of Origin
PSI
“Legal Invoices”
Banks
Insurers
etc.
Pay Taxes
Clear Customs
Release Goods
IMPORT
Air, Sea, Land
International Customs
Transport
Ship’s
Documents
IMPORTER
•Invoice
•Packing List
•Declaration
•Delivery Note
Foreign
Chambers •Certificates
Commerce Of Origin
Overseas
Embassies
DOMESTIC
SUPPLY CHAIN
Raw Materials
Packaging
Transport
Storage
/Dues
Port
Storage
“Informal
Processes”
•Manifest
•Bills of Lading
•Sea/AW Bill
•Container Plans
MANUFACTURING/ VALUE ADDED
•“Legal
Invoices”
•Licenses
•Certificates
•Government
Approvals
•P.O.
•Contract Terms
•Delivery Instructions
•L.O.C.
Bank
EXPORTER
Chamber of
Finance Commerce
Ministry
Pay
Government
Departments
L.O.C.
Packing List
Invoice
Port Processes
•Internal Transport
•Storage
•Container Handling
•Loading
•Quotations
•Payments
•P.O.s
•Delivery Notes •Remittance Book/Confirm Transport
Advice
•Con. Notes
Pay Taxes /Dues
•Invoices
Clear Customs
•Statements
Release to Port
MANUFACTURER
Post/
Courier
EXPORT
Customs
Port
•Invoice
Informal
•Packing List Processes
•Declaration
•Delivery Note
•Certificates
Of Origin
•Form A
•EUR.1
•Licenses
•Certificates
•Government
Approvals
LOC Approval
LOC Courier
Shipping
Documents
Port
Customs
Receive
Goods
FOREIGN
BUYER
Bank
Processing
of TCE
Validation,
Amendments,
Data Capture
of Manifest
Prior to Trade Facilitation Initiative
2D
Shiping Agent
discrepancies regarding
reconciles
unloaded
cargo
Goods
discharged
from vessel
2-3D
2 - 4D
Deliver
Manifest
hardcopy
to Customs
and STAM
Payment of
Importer / Broker
customs duty,
prepares
customs declaration.andstorage charges
delivers to Customs and port dues
2-5D
0-2D
STAM
Shipping Agent
submits
final manifest to
delivers
report of
hardcopy
and STAM
Customs
unloaded cargo
discrepancies
to ship agent
Confirmation of
landed byShipping
goods
and issue of delivery
Agent
note
2-3D
1D
Importer / Broker
up
processed declaration.
picks
Goods removed
from port area
After Trade Facilitation Initiative
1D
1/4 D 1 -2 D
Figure C
1/2 D
15
1/4 D
mins
Goods Arrival
0
1
2
3
5
10
15
Days
Trade Facilitation Network
Customs
Shipping
Agents
Traders
Freight
Forwarders
Ministry of
Commerce
EDI Server
Port Authority
Customs
Brokers
Cargo
Handling
Banks
Figure B
1
Port Computerized Systems: Some
examples
• Spain  Portal Servicios Telemàticos
• UK  CNS Port Community Systems and Martime
Cargo Processing
• Germany  DAK OSYS
• Belgium  DEAGHA
• Netherlands  PCR
• France  ADEMAR 2000/PORTIS 2001
• Singapore  PORTNET
• Finland  PORTNET
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