Trade Facilitation Principles Transparency Simplification - - PowerPoint PPT Presentation

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Session 6: KEY TRADE FACILITATION PRINCIPLES AND MEASURES

Jakarta, Indonesia 24-25 April 2018 Wenguo Cai Director, International Programs The Conference Board of Canada

Presentation Outline

❖ International Trade Transaction

Process

❖Trade Facilitation Principles

 Transparency  Simplification  Harmonization and Standardization  Modernization

International Trade Transaction Process

How is international trade in goods conducted?

❖ International trade in goods: main

procedures

 prepare for exports  transport and shipping  regulatory procedures  financial payment

❖ Key stakeholders or players of

international trade in goods

International trade transaction process

4

Commercial Procedures Transport Procedures Regulatory Procedures Financial Procedures

Buy

Pay

Ship

Import Transport Prepare for export Export Prepare for import

In its broader sense, trade facilitation involves all operations and all stakeholders/players from sellers to buyers

International Trade Transaction Process

5

Commercial Procedures Transport Procedures Regulatory Procedures Financial Procedures

• Establish Contract
• Order Goods
• Advise On Delivery
• Request Payment
• Establish Transport

Contract

• Collect, Transport and

Deliver Goods

• Provide Waybills, Goods

Receipts Status reports

• Obtain Licences etc.
• Provide Customs and Cargo

Declarations

• Apply Trade Security

Procedures

• Clear Goods for Export/Import
• Provide Credit Rating
• Provide Insurance
• Provide Credit
• Execute Payment
• Issue Statements

Buy

Pay

Ship

Import Transport Prepare for export Export Prepare for import

International Trade Transaction process

6

Commercial Procedures Transport Procedures Regulatory Procedures Financial Procedures

• Establish Contract
• Order Goods
• Advise On Delivery
• Request Payment
• Establish Transport

Contract

• Collect, Transport and

Deliver Goods

• Provide Waybills, Goods

Receipts Status reports

• Obtain Licences etc.
• Provide Customs and Cargo

Declarations

• Apply Trade Security

Procedures

• Clear Goods for Export/Import
• Provide Credit Rating
• Provide Insurance
• Provide Credit
• Execute Payment
• Issue Statements

The WTO Trade Facilitation Agreement addresses the border regulatory activities, practices and formalities

Project Executed by: Partner:

CBSA VIDEOS ON EXPORT AND IMPORT PROCEDURES

https://www.cbsa-asfc.gc.ca/multimedia/trf6/menu- eng.html https://www.cbsa-asfc.gc.ca/multimedia/trf5/menu- eng.html

Four Trade Facilitation Principles

❖ Transparency ❖ Simplification ❖ Harmonization and Standardization ❖ Modernization

Fo Four Pil illars s of Trade de Fa Facil ilit itati tion

• n Prin

incip iple les

Trade ade Facilitati ilitation

• n Principles

ciples

Transpa sparenc rency

Simpl plifica cation

• n

Harmon

• nizat

zation

• n

and stand ndar ardiza dization

• n

Moderni rnizat zation

• n

Collabor aborat ation ion bet etween een public ic and privat ate e sector

• r

Trade de Facilita tati tion

• n Princi

nciple ple: : Transpa spare rency ncy Transpa sparenc rency

Transparency promotes openness and accountability of a government's actions by disclosing information in a way that the public can readily access and use it. This information may include laws, regulations and administrative decisions of general application, budgets, procurement decisions and meetings.

Source: UNECE Trade Facilitation Implementation Guide

WT WTO Trade e Facilit ilitation ation Agree eement nt

Trade de Facil ilita tation ion Princ ncipl iple: : Trans anspa paren rency cy

Relevan ant TFA Articl cles es

• Art. 1.

1.1.

• 1. Publication

ation

• Art. 1.

1.2 Inform rmati tion n ava vailabl lable e throug ugh Interne rnet t

• Art. 1.

1.3 Enqu quiry y Points ts

• Art. 1.

1.4 Not

• tification

ation

• Art. 2.1.

1.2 2 Interval al bet etween n Publica cati tion n and Entry y into

• Force
• Art. 2.1.

1.1 1 Opportun tunity ty to Comment t on New and Amended ed Rules

• Art. 2.2 Consulta

ultati tions ns

• Art. 4 Procedures

dures for Appeal and Revi view … and many more

Country Case: Canada

Transparency

Can anad adian ian Bor

• rde

der r Ser Servi vice ces s Age genc ncy y (CB (CBSA SA) ) is is pr promo

• moting

ting tr tran anspar sparen ency y on

• n the

the cu customs stoms clear learan ance ce of

• f goo

goods ds thr throu

• ugh

gh the the In Inter terne net. t. The he main main web b pa page ge of

• f C

CBSA SA of

• ffer

ers s a a lot lot

• f
• f i

inf nfor

• rma

mation inc tion including luding ho how to e to exp xpor

• rt

t to to Can anad ada an a and d ho how to to impor import t fr from

• m

Can anad ada. a. Web pa b page ges s pr provi vide de a a lot lot of

• f i

inf nfor

• rma

mation tion

• n l
• n law

aws, s, regula gulati tions,

• ns, pr

proce

• cedur

dures es and and too tools ls for impor

• r imports

ts an and e d exp xpor

• rts.

ts.

Source: CBSA Website

Trad ade e Fac acil ilita itation tion Pri Princ nciple iple: : Si Simplifi mplifica cation tion

Simpl mplifi fica cation

• n

Simplification is the process of elimi elimina nating ting all u all unn nnec ecessa essary y eleme element nts and duplications in trade formalities, processes and procedures.

Source: UNECE Trade Facilitation Implementation Guide

Trade Facilitation Principle: Simplification

Relevant TFA Articles

• Art. 6.1 General Disciplines on Fees and

Charges

• Art. 7.4 Risk Management
• Art. 7.7 Authorized Operators
• Art. 10.1 Formalities and Documentation

Requirements

• Art. 10.4 Single Window
• Art. 10.5 Preshipment Inspection
• Art. 10.6 Use of Customs Brokers

Country Case: Indonesia Single Window (INSW)

Simpli lification ication

Indonesia Single Window is an integrated customs clearance system which enables traders and other stakeholders to interact with relevant agencies with minimum physical presence to expedite the process of issuing the export/import licenses, document inspection, customs clearance, and other customs procedures in a paperless environment.

Source: Indonesian Single Windows

Source: UNESCAP, INDONESIA NATIONAL SINGLE WINDOW (INSW), GATEWAY TO PAPERLESS CROSS BORDER TRADE, 2017

Trade Facilitation Principle: Harmonization and Standardization

Harmo moniza ization ion and and st standardiza ization ion

Harmonization and standardization are the processes of de development elopment and and alignment alignment of

• f

na national tional pr procedur

• cedures

es, , oper

• perations

tions and and documents documents , , within t ithin the he countr country and and with ith inter interna national tional con conventions entions, standards and practices. It can come from adopting and implementing the same standards as partner countries, either as part of a regional integration process or as a result of business decisions.

Source: UNECE Trade Facilitation Implementation Guide

Trade Facilitation Principle: Harmonization and Standardization

Relevant TFA Articles

• Art. 8 Border Agency Cooperation
• Art. 10.3 Use of International Standards
• Art. 10.7 Common Border Procedures and

Uniform Documentation Requirements

• Art. 10.9.16 International Cooperation on

Freedom of Transit

• Art. 12 Custom Cooperation

ASEAN Case Study

Har Harmo moniza ization ion and and st stan anda dardiza dization

• n

Da Data ta Har armoniza monization tion and and Standar tandardiza dization tion in in AS ASEAN AN S Sing ingle W le Windo indow Da Data ta har harmoniza monization tion objectiv

• bjective:

e: AS ASEAN AN Sing ingle le Windo indow cr crea eates tes an en an envir ironment

• nment

wher here e na national tional sing ingle le windo indows of

• f AS

ASEAN AN Member ember Sta tates tes can can oper

• perate

te and and inte integrate. te. As As a r a res esult, ult, da data ta har harmoniza monization tion and and standar tandardiza dization tion is is the the key ey to to the inte the integration tion pr proces

• cess.

.

Source: ASEAN, ASEAN Single Window Data Harmonization and Standardization

ASEAN Case Study dy Harmonization and

standardization

• 1. Identif

tificati ation

• n of data

a from

• m each

h member mber stat ate

• 2. ASEA

EAN N Data ta Model del (Wor

• rkbase

ase 1) 1)

• 3. Data

ta class assif ificatio ication – unifor

• rm

m and consis sisten ent

• 4. Customs
• ms declar

laratio ation forms ms – unifor

• rm

m

• 5. Data

ta harmon moniz ization tion with h all l ASEA EAN N membe bers

• 6. Stand

andar ardiz izat atio ion

• 7. Stand

andar ardi dized ed Data ta Set et

• 8. Data

ta and forma mats ts – computer eriz ized ed and integ egrat ated ed

Source: ASEAN, Single Window Data Harmonization and Standardization

Source: AFIT, ASEAN Single Window, 2007

Trad ade e Fac acil ilita itation tion Principle Principle: : Mod

• der

erniza nization tion Moderni rnizat zation

• n

Modernization is the us use of e of new new tec techniques hniques and and tec technologies hnologies, , including ICT in customs and administrative practices and procedures It can help speeding up the submission and processing of tradeand customs declarations

• perations, especially through use of modern

information technology

Source: Andrew Grainger, 2011

Trade Facilitation Principle: Modernization Moderniza rnizati tion

• n
• Art. 7.1 Pre-arrival Processing
• Art. 7.2 Electronic Payment
• Art. 10.2 Acceptance of Copies
• Art. 10.4.4 Use of IT to Support the

Single Window

Cou

• untr

ntry y Case: ase: The he Phili Philipp ppines ines

Moder

• derniza

nization tion The P he Philippines hilippines has has r recentl ecently pas passed ed the the Cus Customs toms Moder

• derniza

nization tion and T and Tarif ariff Act Act (CM CMTA) A) and and deter determined mined to to moder moderniz nize e its its cus customs toms in or in order der to to facilita acilitate te tr trade. ade. The P he Philippines hilippines has has als also

• us

used the ed the AS ASYCU CUDA A for

• r impr

improving ing ef efficienc iciency of

• f bor

border der contr control

• l

and and goods goods c clear learance.

• ance. The P

he Philippines hilippines is is planned planned to to upg upgrade ade its cus its customs' toms' automa automated ted system f tem from

• m AS

ASYCU CUDA++ A++ to to AS ASYCU CUDAWor

• rld

ld with ith a moder a modern n I ICT CT inf infras astr tructur ucture, e, etc etc.

Source: EU-Philippine TRTA 3

Country Case: The Philippines

Mod

• der

erniza nization

• n

Futur Future e Plans lans:

• The

he Gover ernment nment of

• f the

the Philppines hilppines is is cur currentl ently ne negotia gotiating ting with ith the the Wor

• rld

ld Bank Bank for

• r

$200 $200 million million loan loan to to moder moderniz nize its its cus customs toms, , par particular ticularly the the automa automation tion of

• f the cus

the customs toms pr procedur

• cedures

es in in or

• rder

der to to pr promote

• mote tr

trade ade facilita acilitation tion as as well ell as as to to elimina eliminate te the the cor corruption uption and and smug muggling ling

Source: EU-Philippine TRTA 3 Final Evaluation Report

Trade ade Facilit acilitation tion Principles Principles

Collab llabor

• ratio

ation bet etween en public ic and priv ivate e sec ector

• r

Article 23.2 National Trade Facilitation Committee: A NTFC aims to "coordinate or orchestrate dialogue between governments and business/traders in order to promote trade-facilitating responses to proposals for border measures

Source: ITC, UNCTAD, and UNECE, "National Trade Facilitation Committees: Moving Forward Implementation"

Q&A and Discussion Thank you for your attention.