UNECE Committee on Trade 5th Session Joint ITC-UNECE trade-needs-assessment study on Kazakhstan: major findings and key recommendations Regulatory and procedural barriers to trade (based.
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UNECE Committee on Trade 5th Session Joint ITC-UNECE trade-needs-assessment study on Kazakhstan: major findings and key recommendations Regulatory and procedural barriers to trade (based on the enterprise survey on NTMs) By: Date: Olga Solleder-Skorobogatova, ITC 18 June 2012, Geneva Plan • ITC enterprise surveys on non-tariff measures (NTMs) and their implementation in Kazakhstan • Preliminary survey results and their comparison to the results in other countries • Recommendations Country coverage of the NTM surveys ITC NTM programme Global methodology …based on large-scale company level surveys …representative by sector and company size …adjusted to countryspecific requirements • Identify trade impediments faced by companies on product and partner country level. • Enable companies to voice their concerns and needs regarding the identified problems and create dialogue among national stakeholders. • Reinforce country capacity: survey and analysis implemented in collaboration with local specialists, after intensive training. Project process Country request Stakeholder workshop initiation Training, survey of enterprises Analysis of the results; draft report Stakeholder workshop validation Jan 2012 Sep 2012 Dec 2012 Kazakhstan: timeline Apr 2011 Nov 2011 Survey methodology Kazakhstan: current coverage Business register 800 companies Phone screening 243 companies In-depth face-toface interviews 28 companies NTM cases and procedural obstacles 45 cases Exporting and importing companies report… …regulatory barriers in partner countries: “Uzbekistan introduced a new regulation requiring adding the details of Certificate of Origin into invoices, which should be done within one day. Before it was possible to have a single certificate for the entire shipment, currently it is necessary to do this for every part.” …regulatory barriers in Kazakhstan: “Kazakhstan Government Resolution about temporary prohibition to export sunflower oil due to the domestic deficit is an issue for our company.” …regulatory and procedural barriers in transit countries: “While exporting beverages from Kazakhstan to partner country, Tajikistan, cargo is inspected in the transit country, Uzbekistan. The cargo is opened and some products are getting lost.” … procedural barriers and problems with business environment at home and abroad: “Railroad transport: Insufficient rolling stock.” Survey coverage: Companies Direction of trade (n=243) Company size (n=243) 28% 31% 48% 52% 21% 1. Export 2. Import 3. Export and Import 20% Small Medium Large Survey coverage: Sectors Export sectors 2% 1% 4% 01. Fresh 1%Food 4% 6% 8% 2% 5% 8% 02. Processed 2% Food 14% 15% 2% Import sectors 39% 03. Wood Products 16% 04. Textiles 13% 17% 05. Chemical 1% 1% 01. Fresh Food 02. Processed Food 8% 4% 03. Wood Products 05. Chemical 07. Basic manufactures 27% 08. Non-electronic machinery 09. IT & Consumer electronics 10. Electronic Components International comparison Share of affected exporting companies: agriculture 80% 60% 40% 20% 0% 75.4% 72.1% 43.8% 56.5% 49.4% 68.3% 65.3% 63.3% 50.3% 44.0% 23.5% Share of affected exporting companies: Manufacturing 100% 80% 60% 40% 20% 0% 74.3% 34.3% 33.1% 79.4% 73.0% 63.8% 27.7% 30.7% 39.6% 49.5% 10.7% Small companies are more affected in other countries. In Kazakhstan? Importing companies reporting obstacles Exporting companies reporting obstacles Small 10 Small 37 Medium 5 31 Medium Large 7 39 Large Total 22 107 Total 0% 50% 1. Yes 2. No 100% 14 2 5 21 0% 30 21 31 82 50% 1. Yes 2. No 100% Does Customs Union work? Importing partner country Share in total export (2009) - Belarus - Russian Federation Customs Union average World average No. of surveyed companies that export to this country No. of Share of surveyed affected companies companies that reported among those NTMs applied exporting to this by this country country 0.5% 2 0 0% 16.1% 10 1 10% 16.6% 12 1 8% 17 14 82% Most reported regulatory issues Partner countries on exports from Kazakhstan - Inspections - Quality control measures - Anticompetitive measures Kazakhstan on imports - Charges and taxes - Conformity assessment Kazakhstan on exports - Export certification - Export prohibition and licensing Problems with business environment Top issues in Kazakhstan - Limited transportation infrastructure - Time delays - Lack of human resources in agencies involved in export and import - Lack of access to information Top issues in partner and transit countries - Time delays - Corruption - Low security level for persons and goods - Road blocks Preliminary reccommendations Potential response to most reported issues: • Regulatory barriers in partner countries: • Addressing transit issues • Procedural barriers in partner/transit countries: • Enforcing existing agreements • Regulatory barriers in Kazakhstan: • More predictable and less stringent regulation of exports, e.g. reduced number of certificates • Regularising customs valuation for imports • Procedural barries in Kazakhstan: • Removing red tape, especially intentional time delays • Better railroad infrastructure Thank you! For questions or comments please contact [email protected] Non-tariff measures: [email protected] International Trade Centre (ITC) Palais des Nations CH-1211 Geneva 10, Switzerland Fax: +41 (0)22 730 0577