UN ESCAP Programme on Trade Facilitation & Overview of Trade - - PowerPoint PPT Presentation

UN ESCAP Programme on Trade Facilitation & Overview of Trade Facilitation in Asia-Pacific Region

Tengfei Wang Economic Affairs Officer, Trade Facilitation Unit Trade & Investment Division, UN ESCAP wangt@un.org

Workshop on International Trade Finance, Logistics and Business Development UMFCCI, Yangon, Myanmar, 27-29 November 2015

Introduction to ESCAP

• Regional development arm of the

United Nations for Asia-Pacific region

• 53 member countries and 9

associate members covering Central, South, Southeast, East and South Pacific countries

• Areas covered: Trade and Investment,

Transport, Macroeconomic Policy, Environment, Emerging Social issues, Information and Communication Technologies… ‐ Trade and Investment: (1) Trade Facilitation; (2) Trade Policy; (3) Investment and Enterprise Development

unnext.unescap.org

Trade Facilitation? Reducing Trade Transaction Costs

UN ESCAP Trade Facilitation Programme

Legislative

• Enabling paperless trade (Res.

68/3)

• Regional Arrangement on cross-

border paperless trade facilitation (Res. 70/6)

Analysis

• ESCAP-WB Trade Cost

Database

• Paperless Trade Guides &

Impact analyses

• Global Trade Facilitation &

Paperless Trade Implementation Survey

• Trade Process Analysis

Database

Capacity Building

• Business Process Analysis
• Single Window & Paperless

Trade Implementation

• Trade & Transport

Facilitation Monitoring Mechanism

• Agricultural & SME trade

facilitation

• (WTO TFA support)

UNNExT*

APTFF* ARTNeT* ISG-CBPT*

*Regional Cooperation platforms and mechanisms: ISG-CBPT: Intergovernmental Steering Group on Cross-Border Paperless Trade; UNNExT: United Nations Network of Experts for Paperless Trade and Transport in Asia and the Pacific; ARTNeT: Asia-Pacific Research and Training Network on Trade; APTFF: Asia-Pacific Trade Facilitation Forum; ROC-TF: Regional Organizations Cooperation Mechanism for Trade Facilitation

ROC-TF*

7th Asia-Pacific Trade Facilitation Forum Wuhan, China 20-21 October 2015

• Over 300 participants from

62 countries

• 17 organizations
• Discussions were focused on

trade facilitation and paperless trade for SMEs and agricultural sector, WTO Trade Facilitation Agreement (TFA) and cross- border electronic commerce

• A key recommendation of

the Forum was the need to prepare and tap

• pportunities associated

with cross-border e- commerce given the potential benefits for SMEs in particular. “Consideration should also be given to joining the TIR convention as a way to facilitate transit trade” "Deepening regional integration through trade facilitation"

UN ESCAP Trade Facilitation Programme

Legislative

• Enabling paperless trade (Res.

68/3)

• Regional Arrangement on cross-

border paperless trade facilitation (Res. 70/6)

Analysis

• ESCAP-WB Trade Cost

Database

• Paperless Trade Guides &

Impact analyses

• Global Trade Facilitation &

Paperless Trade Implementation Survey

• Trade Process Analysis

Database

Capacity Building

• Business Process Analysis
• Single Window & Paperless

Trade Implementation

• Trade & Transport

Facilitation Monitoring Mechanism

• Agricultural & SME trade

facilitation

• (WTO TFA support)

UNNExT*

APTFF* ARTNeT* ISG-CBPT*

*Regional Cooperation platforms and mechanisms: ISG-CBPT: Intergovernmental Steering Group on Cross-Border Paperless Trade; UNNExT: United Nations Network of Experts for Paperless Trade and Transport in Asia and the Pacific; ARTNeT: Asia-Pacific Research and Training Network on Trade; APTFF: Asia-Pacific Trade Facilitation Forum; ROC-TF: Regional Organizations Cooperation Mechanism for Trade Facilitation

ROC-TF*

Analysis

• ESCAP-World Bank Trade

Cost Database

• Paperless Trade Guides &

Impact analyses

• Global Trade Facilitation &

Paperless Trade Implementation Survey

• Trade Process Analysis

Database

UN ESCAP Trade Facilitation Programme

Intra- and extra-regional comprehensive trade costs in the Asia-Pacific region (excluding tariff costs), 2008-2013

Source: ESCAP-World Bank Trade Cost Database, updated June 2015. Available from

Region ASEAN-4 East Asia- 3 North and Central Asia - 4 Pacific Islands Developing Economies SAARC-4 AUS-NZL EU-3 ASEAN-4 76% (9%) East Asia-3 75% 51% (5%) (-5%) North and 351% 177% 121% Central Asia - 4 (9%) (-7%) (9%) Pacific Islands 175% 174% 368% 133% Developing Economies (-11%) (-9%) (34%) (-10%) SAARC-4 128% 125% 282% 317% 114% (2%) (-0%) (13%) (2%) (10%) AUS-NZL 101% 89% 338% 73% 142% 54% (4%) (-3%) (-5%) (-22%) (-1%) (1%) EU-3 108% 85% 152% 211% 114% 109% 43% (2%) (-4%) (-8%) (-6%) (3%) (0%) (-4%) USA 85% 63% 180% 163% 109% 100% 67% (11%) (-0%) (2%) (-11%) (6%) (4%) (0%) Trade costs: http://artnet.unescap.org/databases.html#first 9

ESCAP-World Bank International Trade Cost Database (updated July 2015)

– Objective: to assess the progress made in implementing trade facilitation and paperless trade measures in Asia and the Pacific.

• Covers implementation of 38 Trade Facilitation Measures in

119 economies; 44 in Asia-Pacific

– Main components of the survey includes

• key WTO related trade facilitation measures
• Paperless trade measures

UNRC Joint Global Survey on Trade Facilitation and Paperless Trade Implementation 2015

http://unnext.unescap.org/UNTFSurvey2015.asp

TF and Paperless Trade Implementation in Asia-Pacific: 2015 Survey Highlights

TF implementation very heterogeneous across the region

11

12

Most and least implemented trade facilitation measures in Asia-Pacific

Most implemented Least implemented

Transparency

• 1. Stakeholder consultation on new draft regulations

(prior to their implementation)

• 2. Publication of existing import-export regulations on

the internet

• 1. Advance ruling (on tariff classification)
• 2. Advance publication/notification of new

regulation before their implementation Formalities

• 1. Risk management
• 2. Pre-arrival processing
• 1. Establishment and publication of average

release times

• 2. Trade facilitation measures for authorized
• perators

Institutional arrangement and cooperation

• 1. Cooperation between agencies on the ground at the

national level

• 2. Establishment of National Trade Facilitation

Committee

• 1. Government agencies delegating controls to

Customs authorities Paperless trade

• 1. Internet connection available to Customs and other

trade control agencies at border-crossings

• 2. Electronic/automated Customs System
• 1. Electronic Application and Issuance of

Preferential Certificate of Origin

• 2. Electronic Application for Customs Refunds

Cross-border paperless trade

• 1. Laws and regulations for electronic transactions
• 2. Recognised certification authority
• 1. Banks and insurers retrieving letters of credit

electronically without lodging paper-based documents

• 2. Electronic exchange of Sanitary & Phyto-Sanitary

Certificate Transit facilitation

• Cooperation between agencies of countries involved in

transit

• Customs authorities limit the physical inspections of

transit goods and use risk assessment

• 1. Supporting pre-arrival processing for transit

facilitation

Global Trade Facilitation Survey report launched at Asia-Pacific Trade Facilitation Forum 2015

UN ESCAP Trade Facilitation Programme

Legislative

• Enabling paperless trade (Res.

68/3)

• Regional Arrangement on cross-

border paperless trade facilitation (Res. 70/6)

Analysis

• ESCAP-WB Trade Cost

Database

• Paperless Trade Guides &

Impact analyses

• Global Trade Facilitation &

Paperless Trade Implementation Survey

• Trade Process Analysis

Database

Capacity Building

• Business Process Analysis
• Single Window & Paperless

Trade Implementation

• Trade & Transport

Facilitation Monitoring Mechanism

• Agricultural & SME trade

facilitation

• (WTO TFA support)

UNNExT*

APTFF* ARTNeT* ISG-CBPT*

*Regional Cooperation platforms and mechanisms: ISG-CBPT: Intergovernmental Steering Group on Cross-Border Paperless Trade; UNNExT: United Nations Network of Experts for Paperless Trade and Transport in Asia and the Pacific; ARTNeT: Asia-Pacific Research and Training Network on Trade; APTFF: Asia-Pacific Trade Facilitation Forum; ROC-TF: Regional Organizations Cooperation Mechanism for Trade Facilitation

ROC-TF*

Capacity Building

• Business Process Analysis
• Single Window & Paperless

Trade Implementation

• Trade & Transport Facilitation

Monitoring Mechanism

• Agricultural & SME trade

facilitation

• WTO TFA implementation

support

UN ESCAP Trade Facilitation Programme

UNNExT Tools

Other Guides – Trade and transport facilitation performance monitoring mechanism: BPA+

– http://www.unescap.org/tid/unnext/tools/bpa+.pdf – Developed in cooperation with ADB

– Forthcoming (2015):

• UNNExT Guide on paperless transit
• UNNExT Guide on trade facilitation for SMEs

Business Process Analysis: United Modelling Language (UML)

Use Case Diagram

• A frame of reference illustrating a high

level business process and its associated actors Activity Diagram

• A detailed elaboration of a use case

diagram

• A graphical representation of a

business process and its attributes – Activities that come in a specific

• rder and decision points

– Actors who perform those activities – Defined inputs and outputs of each activity – Criteria for entering and exiting the business process – Relationships among actors – Information flow

Buy - Conclude sales contract and trade terms Exporter or Representative Importer Quote price and term of trade Confirm the intent to purchase Proforma Invoice Purchase Order Not acceptable Acceptable Cancel Prepare the shipment

• f goods

Exporter or Representative Importer 17

18

BPA: a whole-of-supply-chain approach

1 2 3 4 5 6 7 8 9 10 11 Day Process 30 20 10 5 25 15 35

14 days 3 days 2 days 1 day 3 days 4 days 1 day 1 2 4 3 5 6 7 8 9 10 11 1 day 1 day

• 1. Buy - Conclude sales contract and trade terms
• 2. Have product sampled and technically examined
• 3. Arrange transport
• 4. Prepare export permit
• 5. Apply for cargo insurance
• 6. Prepare and submit customs declaration
• 7. Stuff container and transfer it to port of departure (covered by TCD)
• 8. Clear goods through customs (covered by TRS and TCD)
• 9. Handle container at terminal and stow it on vessel (covered by TCD)
• 10. Prepare documents required by importer as listed in L/C
• 11. Pay - Claim payment of goods

Assuming 50% reduction for each procedure of 7-9 0.5 day /30 days = 1.7% (TRS) 1.5 days/30 days = 5% (TRS and TCD combined)

e-Single Window and paperless trading National Data Harmonization

BPA: the first step to be taken before introducing other trade facilitation measures

Document Simplification & Standardization Cross Border Data Exchange Business Process Analysis for Trade Facilitation 1 6 5 3 2 4 Process Simplification and Harmonization

Business Process Analysis

• Over 50 import

and export process cases are included, based on studies conducted since 2009 by international

• rganizations

such as ESCAP, ECE, ADB and their member states.

• Over 50 product and country

specific import and export process cases are included, based

• n studies conducted since 2009.
• Data typically available for each

trade process case, includes

– number of steps/procedures involved, – stakeholders involved, – number and type of documents, – activity diagrams, – time and cost of the procedures, as well as – time-procedure chart.

• Enables TF practitioners to

compare procedures across countries as a basis for making improvement

Trade Process Analysis Database (online test version, Oct. 2015)

tpad.unnext.org

National Trade and Transport Facilitation Monitoring Mechanism (TTFMM)

Why is sustainable national trade and transport facilitation monitoring mechanism important and essential?

• Available international cross-country trade

and transport indicators are useful but not sufficiently detailed or reliable

• Many trade facilitation monitoring exercises have

been carried out in developing countries, but

– One-off / Ad hoc assessment studies; Overlapping and not coordinated; No uniform method & approach – Lack of ownership of results, with no follow-up

Need for an integrated and sustainable mechanism:

(1) To provide adequate data & information to support decision making and to monitor implementation and impact

• f these decisions on trade facilitation measures

(2) To reduce unnecessary duplication of efforts & ensure recommendations are implemented

Trade and Transport Facilitation Monitoring Mechanism

Measure, monitor and assess progress in trade facilitation Trade facilitation reform Implementation

Integrated Methodology: BPA+

Baseline trade and transport facilitation assessment study Formulate, update and prioritize recommendations for advancing trade facilitation Institutional Arrangement National Human Capacity

TTFMM – Key Outputs

25

• TTFMM Database, including:

– Description, activity diagram and related rules/regulations for each trade & transport procedure for selected products along selected corridors – Time, Cost, No. of documents for each process/procedure

• Set of Indicators (dashboard)

– Include Time, Cost, No. of documents for each process/procedure – Average speed along the corridor – Average border crossing time

• An annual report

– Presenting relevant summary information from the database to relevant stakeholders (including in‐depth analysis and recommendations)

Different tiers of data for targeted stakeholders

26 Policy makers Analysts, experts and specialists to support decision making

UN ESCAP Trade Facilitation Programme

Legislative

• Enabling paperless trade (Res.

68/3)

• Regional Arrangement on cross-

border paperless trade facilitation (Res. 70/6)

Analysis

• ESCAP-WB Trade Cost

Database

• Paperless Trade Guides &

Impact analyses

• Global Trade Facilitation &

Paperless Trade Implementation Survey

• Trade Process Analysis

Database

Capacity Building

• Business Process Analysis
• Single Window & Paperless

Trade Implementation

• Trade & Transport

Facilitation Monitoring Mechanism

• Agricultural & SME trade

facilitation

• (WTO TFA support)

UNNExT*

APTFF* ARTNeT* ISG-CBPT*

*Regional Cooperation platforms and mechanisms: ISG-CBPT: Intergovernmental Steering Group on Cross-Border Paperless Trade; UNNExT: United Nations Network of Experts for Paperless Trade and Transport in Asia and the Pacific; ARTNeT: Asia-Pacific Research and Training Network on Trade; APTFF: Asia-Pacific Trade Facilitation Forum; ROC-TF: Regional Organizations Cooperation Mechanism for Trade Facilitation

ROC-TF*

Legislative

• Enabling paperless

trade (Res. 68/3)

• Regional Arrangement
• n cross-border

paperless trade facilitation (Res. 70/6)

UN ESCAP Trade Facilitation Programme

• ESCAP trade facilitation team is taking stock of

the previous work on promoting trade facilitation and paperless trade in the region and assessing the way forward.

• We are gathering information and feedback from

relevant stakeholders (government officials from Ministry of Commerce/Trade, Customs, traders,

• perators…)

Questionnaire survey (12-14 minutes): http://www.surveygizmo.com/s3/2456047/DA8- Project-Evaluation-Questionnaire. (wangt@un.org) Interview

ESCAP further work on trade facilitation and paperless trade: your opinions count!!