Transcript Third Meeting of Trade Ministers of Landlocked Developing

UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT
Trade facilitation policy at national and
regional levels: core elements
Strengthening Trade Competitiveness in times of global economic crisis –
Challenges faced by LLDCs
José María Rubiato
UNCTAD – Trade Logistics Branch
[email protected]
Third Meeting of Trade Ministers of Landlocked
Developing Countries
Ezulwini, Swaziland, 21-22 October 2009
Outline
 Evolving concepts on Trade Facilitation
 International Instruments related to
Trade Facilitation
 New Tools available
 Trade facilitation reform
 How to start
Evolving concepts
Traditional definition
 Simplification and harmonization of international trade
procedures and documentation
 Core elements:
• Documents as support of information
• Procedures as information processing
 Main outcomes:
• Standard documents
• Standard data and codes
• Standard protocols
Recent evolution
 Transport corridors and trade channels
 Supply chain management model
 Core elements:
• Goods movements rather than paperwork
• Operational issues not only controls
 Main outcomes:
• Integrated approach on processes
• Single international transaction
Potentially Misleading Beliefs
 TF is just a matter of bureaucracy
 TF is inexpensive & easy to implement
Data Flow for International Trade
Purchasing
Export
Confirmed Line of Credit
Importer’s
Bank
Exporter’s
Bank
Original B/L,
Invoice, PO,
Packing List
Fund Transfer
Line of Credit
Proforma Invoice
LC
Confirmation
Purchase Order
Exporter
Importer
Proforma Invoice
Letter of
Instruction
Invoice, PO
Shipping & Funding Detail
Marine
Insurance
Company
Shipping & funding detail
Import
• Up to 20
Bill of lading, Documentation
Involved
Vessel Booking Request
Parties
Vessel Booking Confirmation
Release/Approval
• 200+ data
Bill of Lading
elements
Rated Bill of Lading
Arrival Notice
Import
Terminal
• Manual data
Ocean Carrier
Dock Receipt
Operator
exchange
Demurrage
guarantee &
processes
payment
Cargo
Export
• Multiple
Status
Terminal
data
Operator
Customs House
platforms
Broker
Dock receipt
Pick-up &
Import
Delivery Order • 30+
Docs
Pick-up & Delivery Order
Release/Hold
documents
Inland
Notice
Cargo
Carrier
or messages
Status
Freight Forwarder /
Inland
NVOCC
Carrier
• 60-70%
Manifest
Customs ( Import )
Dock receipt
repetitions
Export Declaration
• 6-15% of the
Vessel Manifest
AES
Export Declaration
final value of
Port
Converted Vessel
Customs (Export)
the goods
Manifest
• 40% of the
Importer Notice
transaction
time
International Instruments related to
Trade Facilitation
Instruments outside WTO
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ICC International Customs Guidelines;
ICS rec. on B/L and ship’s manifest;
IMO FAL Convention;
IMO: other conventions with TF relevance (7);
Relevant ISO Standards;
UN/ECE (& UN/CEFACT) Recommendations;
UN/ECE TIR Convention;
UN/ECE CMR Convention;
WCO: Revised Kyoto Convention;
WCO: Istanbul Conv. (Temporary Admission);
WCO: Nairobi Conv. on Prevention, Investigation &
Repression of Customs offences;
 WCO: Various other WCO Customs Conv. (9);
 WCO: Various non-binding WCO rec. (5);
 Free trade agreements and/or Customs unions.
Existing WTO rules on trade facilitation
 Agreement on the Implementation of Article VII GATT
1994 (Customs Valuation)
 Agreement on Preshipment Inspection
 Agreement on Import Licensing Procedures
 Agreement on Rules of Origin
 Agreement on Technical Barriers to Trade
 Agreement on Sanitary and Phytosanitary Measures
New Tools available
Trade Facilitation Platforms

National and Regional Trade and Transport Facilitation
Committees: as structures for dialogue with private stakeholders,
inter-agency coordination and high level policy coherence at
national level in the design of administrative reforms.

WTO Trade Facilitation Support Groups: as coordinating
mechanisms to support national negotiators in Geneva through the
provision of technical expertise and feedback on the tabled
proposals.

Transit corridor facilitation clusters: as operational multi
stakeholders multi national cooperative platforms to assess
obstacles, design and implement solutions to improve transport
corridor operations and management.
Repository of Trade Facilitation Working Groups
 A joint initiative by UNCTAD and UNECE the repository
of national working group on trade facilitation, provides a
collection of country's experiences in setting up and
maintaining national inter-agency public private
consultative trade facilitation mechanisms
 The country experiences currently include Benin,
Burkina Faso, Ecuador, Mali, and St. Lucia. It is planned
to expand the number of countries’ participating during
this and the following year.
See:http://r0.unctad.org/ttl/repository/TFWGintro.htm.
Clusters along Transport Corridors
Customs
Carrier
Freight Forwarder
Shipper
Cluster
Time/Cost – Distance Methodology
Ulaanbaatar
Tianjin Port
Example: Tianjin-Ulaanbaatar Railway link
Ulaanbaatar
1700 km
Day 4
04.18 a.m.
75 hrs 31 min.
Average speed
22.4 km/h
Day 3
Zamyn Uud
1000 km
02.30 a.m.
Day 2
Day 1
29 hrs 12 min.
Tianjin, 0 km
33.7 km/h
500 km
Transshipment:
Shunting + train
formation:
20 hrs 31 min.
05.59 a.m.
3 hrs. 20 min.
(3.5 min. per box)
3 hrs. 35 min.
Erenhot, 983 km
1000 km
Customs:
1,691 km
1500 km
2000 km
China,
3 hrs. 00 min.
Mongolia,
4 hrs. 50 min.
Border Crossings: Cost or Time
Cost per TEU
$650
$700
$600
$500
$400
$300
$200
$293
$131
$155
$124
$200
NepalIndia
KazakhstanRussian Fed.
$100
$100
$0
Lao PDRThai
Lao PDRViet Nam
MongoliaChina
MongoliaRussian Fed.
*UzbekistanTurkmenistan
* Estimated from cost of standard European 12 meter semi trailer.
UNCTAD Liner Shipping Connectivity in 2009
160
Maximum vessel size
150
140
TEU
130
120
110
100
Vessels
Services
90
Companies
80
70
2004
2005
2006
2007
2008
Source:http://www.unctad.org/transportnews
2009
Transit Countries LSCI 2004-2009
Country
2004
2005
2006
2007
2008
2009
China
India
Thailand
Brazil
South Africa
Lebanon
Iran, Islamic Rep. of
Pakistan
Vietnam
Argentina
Uruguay
Côte d'Ivoire
Ghana
Chile
Djibouti
Peru
Senegal
Togo
Namibia
Benin
Kenya
Cameroon
Congo, Republic of
Tanzania, UR of
100.00
34.14
31.01
25.83
23.13
10.57
13.69
20.18
12.86
20.09
16.44
14.39
12.48
15.48
6.76
14.79
10.15
10.19
6.28
10.13
8.59
10.46
8.29
8.10
108.29
36.88
31.92
31.49
25.83
12.53
14.23
21.49
14.30
24.95
16.58
14.52
12.64
15.53
7.59
14.95
10.09
10.62
6.61
10.23
8.98
10.62
9.10
8.59
113.10
42.90
33.89
31.61
26.21
25.57
17.37
21.82
15.14
25.58
16.81
12.98
13.80
16.10
7.36
16.33
11.24
11.09
8.52
10.99
9.30
11.41
9.12
8.71
127.85
40.47
35.31
31.64
27.52
30.01
23.59
24.77
17.59
25.63
21.28
14.98
14.99
17.49
10.45
16.90
17.08
10.63
8.37
11.16
10.85
11.65
9.61
10.58
137.38
42.18
36.48
30.87
28.49
28.92
22.91
24.61
18.73
25.70
22.88
16.93
18.13
17.42
10.43
17.38
17.64
12.56
11.12
12.02
10.95
11.05
11.80
10.46
132.47
40.97
36.78
31.08
32.07
29.55
28.90
26.58
26.39
25.99
22.28
19.39
19.33
18.84
17.98
16.96
14.96
14.42
13.61
13.52
12.83
11.60
11.37
9.54
Rank
2009
1
22
25
33
29
34
35
38
39
40
46
53
54
56
58
60
63
68
69
70
72
73
74
83
Change
2009/2008
-4.91
-1.21
0.30
0.21
3.58
0.63
5.99
1.98
7.65
0.29
-0.60
2.46
1.21
1.42
7.56
-0.42
-2.67
1.86
2.49
1.50
1.88
0.55
-0.43
-0.92
Change
2009/2004
32.47
6.83
5.77
5.25
8.94
18.98
15.21
6.41
13.53
5.90
5.84
5.00
6.86
3.36
11.22
2.17
4.81
4.23
7.33
3.39
4.24
1.14
3.08
1.44
WB - Logistics Performance Index
1 <= LPI <= 2.29
2.29 <= LPI <= 2.53
2.53 <= LPI <= 3.14
3.14 <= LPI <= 5
No data
1 is the lowest score and 5 is the maximum score.
Source:www.worldbank.org/lpi
LPI 2009 – LLDCs and transit
Trade facilitation reform
Reform Policy Objectives
 External commitments:
• Bilateral and regional agreements
• WTO
 Internal objectives:
• Administrative effectiveness
• Better trade management
• Better use of public resources
• Trade competitiveness
• Support national trade sector
• Lower transaction costs
Common Reform Phases
 Definition of goals to achieve the objectives
 Analysis of the capacity of the current processes to achieve the goal
 Analysis of required actions to fill the gaps
 Assessment of needs/resources for identified actions
 Design of individual processes
 Development of comprehensive plan
 Implementation of the solution
 Operation and maintenance of the new system
Elements in each phase
 Staffing: manpower / technical skills
 Technology: equipment and training
 Institutional: functions, interactions and management
 Regulatory: authority and mandates
 Budgeting costs / revenues
 All the above for three different levels:
• Planning and monitoring unit : goals – analysis – solution - sequencing
• Design and development units: analysis and process development
• Implementation units: operation and maintenance of the system
Sequences to introduce reform
 Function sequence depends on:
• Steps to take before
• Impact on consecutive processes
 Priority sequence depends on:
• External commitments
• Other defined objectives
 Time sequence depends on:
• Priorities
• Resource deployment
Three dimensions
TRADE
TRANSPORT
Trade
Facilitation
CUSTOMS
CUSTOMS dimension
Customs Reform
and Modernization
Customs Facilitation
Simplify/harmonize
documents & procedures
faster clearance
of cargo
Implement modern
Customs laws
Increased Customs
revenues
Support automated
data systems
ASYCUDA
TRADE dimension
Best-recommended
commercial practices
Trade Facilitation
Simplify IMP/EXP
documents & procedures
faster RoI
for IMP
Create awareness on
best practices
Competitive
exports
Promote
Single Window
TRANSPORT dimension
Best-recommended
transport practices
Transport Facilitation
Create awareness on
modern transport & logistics
Faster turn-over
of means
Establish norms
(incl. liability insurance)
smooth movement
of goods
Implement modern
Transport laws
Implement logistics tools
How to start
Action planning workshop
 3 days of analysis and 2 days for planning of activities with 20-25
participants:
• Ministry of Trade
• Ministry of Finance/ Customs
• Other Government Agencies related to trade
• Exporters, importers and shippers
• Service providers: Customs brokers, freight forwarders, carriers
• Commercial banks, Central Bank
• Export promotion agency / Investment promotion agency
Objective
 To introduce fundamentals of trade facilitation (basic concepts,
global trends, what can be done, costs and benefits, how to
implement, etc);
 To exchange experiences: learning about trade facilitation (TF),
identify bottlenecks, needs and priorities on TF.
 To develop an initial high level scoping with participants and
outline a strategy for implementation (identification of bottlenecks,
priorities, key stakeholders, etc).
 To prepare a draft national or regional action plan.
Day 1: General presentation
 1) Introduction to trade facilitation
 2) Cost and benefits of trade facilitation.
 3) Main stakeholders of trade facilitation reforms.
 4) Trade facilitation implementation strategies.
 5) Presentation of trade facilitation successful reforms.
Day 2: Needs assessment - round table
 To learn from participants about the state of the play as regards
trade facilitation and identify bottlenecks. The presence of
representatives of the private sector is essential.
 Main obstacles and bottlenecks faced by trade operations
 Current initiatives to address procedural obstacles and bottlenecks
 Existing legal and institutional frameworks governing trade
 Transit /transport policy and transit / transport arrangements.
Day 3: Barriers and Stakeholders
 Risk analysis: minimum conditions that must exist for a successful
implementation of the project; external factors that can have an
impact on the project
 Stakeholder analysis: identify key persons, institutions as
counterparts and establish a TF consultative group; identify a
possible trade facilitation task force that could support the
implementation of adopted measures.
Day 4: Plan of action
 Determine a TF focal point to be the main counterpart for the future
project implementation.
 Define the pre-conditions for projects implementation.
 Determine project objectives/outcomes and related activities.
 Prepare an initial draft of a project proposal.
 Agree on an initial scheduling of the activities.
 Discuss staffing and resource requirements
 Design practical operational modalities.
Day 5: Meeting with donors and partners
 Meet with relevant financing and technical assistance agencies
foreseen to be involved in project implementation
 Current activities and ensure synergies and complementarities
 Discuss local practical conditions for project personnel deployment
and scheduling of deliveries.
Announcements
 8-9-10 December 2009: Experts meeting on Public and
Private Partnerships for the Development of
Infrastructure to Facilitate Trade and Transport.
 11December 2009: Ad Hoc Experts Meeting on Transit
Ports servicing Landlocked Developing Countries
UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT
Thank you
José María Rubiato
UNCTAD – Trade Logistics Branch
[email protected]
Third Meeting of Trade Ministers of Landlocked
Developing Countries
Ezulwini, Swaziland, 21-22 October 2009