UNECE UNECE Integrated Approach to Trade Facilitation Tom Butterly Deputy Chief Global Trade Solutions Branch UNECE Capacity-Building Workshop on the WTO Trade Facilitation Negotiations 12-13 June.
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UNECE UNECE Integrated Approach to Trade Facilitation Tom Butterly Deputy Chief Global Trade Solutions Branch UNECE Capacity-Building Workshop on the WTO Trade Facilitation Negotiations 12-13 June 2006, Chisinau, Republic of Moldova Agenda 1. UNECE Integrated Model of Trade Facilitation 2. Best Practice Examples - UN/CEFACT Standards, Recommendations and Tools 3. International Trade Single Window 4. Capacity Building UNECE UNECE Integrated Model of Trade Facilitation UNECE’s objective in international trade: to facilitate and strengthen the integration of member States, and especially countries in transition, into the European and global economy. Trade Facilitation is a key tool of UNECE to achieve this objective UNECE Trade Facilitation “The simplification, standardization and harmonization of procedures and associated information flows required to move goods from seller to buyer and to make payment “ Facilitate - to make easy or easier UNECE Supply Chain Sources: plants vendors ports Manufacturers, Regional warehouses: stocking points Field warehouses: stocking points Customers, demand centers Supply Material Production/ purchase costs Manufacturing/ Inventory & warehousing costs Transportation Transportation costs costs Inventory & Source: Sim chi-Levi & al , 2000 warehousing costs UNECE INTERNATIONAL TRADE TRANSACTION PROCESS SHIP BUY Prepare For Export PAY Transport Prepare For Export Import Import INVOLVES Commercial Procedures Transport Procedures Regulatory Procudures • Establish Contract • Order Goods • Advise On Delivery • Request Payment • Establish Transport Contract • Collect,Transport and Deliver Goods • Provide Waybills, Goods Receipts Status reports • Obtain Import/Export Licences etc • Provide Customs Declarations • Provide Cargo Declaration • Apply Trade Security Procedures • Clear Goods for Export/Import Financial Procedures • Provide Credit Rating • Provide Insurance • Provide Credit • Execute Payment • Issue Statements UNECE The UN/CEFACT Vision Stock Mini atteint Stock Mini atteint Contrôle Périodique Contrôle Périodique 1 2 1 DDTTCC 2 3 4 6 18 19 Note d'achat 5 8 20 2 3 23 5 3 Offre de de prix Offre prix fact. Proforma fact. Proforma 5 4 Analyse des Analyse des d'offres d'offres Demande d'offre Dem ande d'offre de deprix prix 3 4 B.C informatisé B.C inform atisé B.C Manuel Total Trade Transaction – Integrated supply-chain 6 9 10 4 35 Signature et cachet Signature et cachet 35 Fax etet courrier Fax courrier Préparation Titre d'importation 729 12 13 14 15 30 32 17 17 28 17 18 22 23 9 16 19 24 Transitaire Transitaire 28 8 23 Avis d'embarq. Avis d'em barq. Photocopie Doc. Photocopie Doc. Suivi Suivicommande commande 11 17 10 Lettre d'engagement si produit inflamable Assurance 16 16 Classement Classement desdes documents documents 618 8 2 2 3 5 Constitution Constitutiondossier dossier Achat Achat 3 5 6 8 6 Confirmation Confirmation Commandes Commandes 22 5 8 5 Constitution Constitution Dossier Dossier 16 21 13 11 14 12 Documents Docum ents d'expédition d'expédition 179 24 7 21 1129 1230 1331 1432 1533 Labo LaboContrôle Contrôle 5 10 6 8 9 19 Competitiveness – trade efficiency 31 Réception Réception 33 18 24 Livraison Livraison 22 Résultat Résultatcontrôle contrôleLabo Labo Comptabilité Comptabilité Contrôle Qté Signat. Contrôle Qté Signat. & &Cachet BLBL Cachet conforme conforme 3 5 58 11 29 12 30 13 31 14 32 15 33 Stockage Stockage Calcul Calculde delalafreinte freinte Photocopie Photocopie document docum ent Classem entet et Classement Archivage Archivage 35 58 721 11 29 30 12 31 13 14 32 15 33 Calcul Calculprix prixde de revient revient 7 non nonconforme conforme 11 Form ulaire d' écart 167 12 7 21 21 Déchargement Déchargem ent Déclaration Déclaration douanière douanière Prélèvement des Prélèvem ent des échantillons échantillons Règlement Règlem ent douane douane 11 27 28 Agence Agence Maritime Maritim e Lettre de non conform ité / F 15 B. de Retour MP Enlèvem ent Enlèvement M.PM.P 12 B. d'entrée interne 15 Produit ProduitIsolé Isolé Enregistrem ent Enregistrement Inform atisé Informatisé 15 Etiquettage nonconform ité Vérificationde delala Vérification saisie saisie Transporteur Transporteur Trade facilitation 13 14 Produit retourné Produit retourné 12 12 12 12 36 UNECE Economic efficiency £ Omagh to Algeria. 1 Order – 360 net tonnes, 21 weeks Added value and cost Payment by customer Retail sale Payment of transport and FOB charges Unload and store Delivery to customers warehouse Inwards clearance Main vessel off-loading Proof of export Sea Crossing Refund payment and administration Main vessel loading Delivery to port Unload, re- Exit clearance from community pack Delivery to customs warehouse Dehire GKN pallets Documentation Refund claim Invoice and order administration Load and despatch Manufacture Short Lead Components Export Licence Customs formalities (Inland) Pre-shipment Inspection Documentation Request Health Certificates, Licences Order receipt and administration Artwork Long Lead items Credit Arrangements Enquiry Validation 12 13 15 16 19 21 Weeks (approx) UNECE UNECE Why focus on Trade Facilitation ? Economic Benefits - shift in focus from technical to trade/economic policy perspective Greater demands from business for predictability and speed Information requirements Investment Link Trade Facilitation at the WTO UNECE Economic Benefits Estimates vary from 1-15% of total trade transaction costs Even if only 1%, OECD estimates total gains to world economy of US$40, billion APEC estimates gains of US$46 billion from trade facilitation measures - adopted TF as key policy target. UNECE Economic Benefits Benefits higher for developing countries and for SMEs Greater than the potential value of increased tariff reductions under future multilateral trade negotiations. Inefficient or unnecessary process and controls add no value whatsoever UNECE UNECE Study on TF TF plays a crucial role in deriving benefits from overall trade liberalisation policy Even in non-liberalised economies significant benefits cold be gained The introduction of trade liberalisation measures without parallel trade facilitation initiative might fail to realise their full economic potential. UNECE STEP BY STEP PROCESS Single Window Rec 33, 34,35 Cross Border UNeDocs, Data Exchange WCO DM Data UNTDED, CC, Harmonization Locode, code lists Document Simplification UN Layout Key, UNTDED, TF and Standardization Toolkit and Forms Repository Process Simplification Business/Political Process Collaboration and Harmonization Between Trader and Govt Process UMM Analysis Strategic Approach to Realising the Benefits of Trade Facilitation Undertake detailed needs analysis and set priorities at both the national and regional level Involve the business community from the outset Cultivate the necessary political will Develop national and regional implementation strategies, with trade facilitation as a key trade and economic development instrument Total trade transaction approach Use existing trade facilitation standards, tools and instruments UNECE