trade facilitation: an introduction

• Scope of Trade facilitation

• Traders’ main concerns

• At the border• Key areas of work

Trade Facilitation: An IntroductionGeneva, November 2012Jan.Hoffmann@UNCTAD.org

• Scope of Trade facilitation

• Traders’ main concerns

• At the border• Key areas of work

Trade Facilitation: An Introduction

TRADE FACILITATION

Process of eliminating all unnecessary elements and duplications in formalities, processes and procedures

Simplification Harmonisation

Alignment of national procedures, operations and documents with international conventions, standards and practices.

Standardisation

Process of developing internationally agreed formats for practices and procedures, documents and information.

TRADE FACILITATION

Standardisation

Process of developing internationally agreed formats for practices and procedures, documents and information.

International rules and standards

• IMO• ISO• UN-CEFACT• WCO• WTO

UN Lay-out Key(UNECE Rec.#1)

TRADE FACILITATION

Process of eliminating all unnecessary elements and duplications in formalities, processes and procedures

Simplification Harmonisation

Alignment of national procedures, operations and documents with international conventions, standards and practices.

Standardisation

Process of developing internationally agreed formats for practices and procedures, documents and information.

TRADE FACILITATION

Harmonisation

Alignment of national procedures, operations and documents with international conventions, standards and practices.

TRADE FACILITATION

Process of eliminating all unnecessary elements and duplications in formalities, processes and procedures

Simplification Harmonisation

Alignment of national procedures, operations and documents with international conventions, standards and practices.

Standardisation

Process of developing internationally agreed formats for practices and procedures, documents and information.

TRADE FACILITATION

Process of eliminating all unnecessary elements and duplications in formalities, processes and procedures

Simplification

• Scope of Trade facilitation

• Traders main concerns

• At the border• Key areas of work

Trade Facilitation: An Introduction

GOODS

PAYMENT

The Trade Transaction

S BINFORMATION

ManufacturerSupplier RetailersWholesalers Customer

Prod

uct

Com

pany

A

Com

pany

B

What do traders want ?• Simple and smooth processing of

formalities• Means to allow goods to proceed

promptly to their final destination. No longer itineraries, no unpacking, no delays

• A single control point for all public services

• Standard forms, assembled into a ‘single bunch of documents’, compatible with trade documents and transport contracts

• Predictable and transparent rules and procedures

Arrival Notice

Letter of InstructionInvoice, PO

Importer’s Bank

Ocean Carrier

Customs House Broker

Line of CreditProforma Invoice

Shipping & funding detail

Cargo Status

Vessel Booking Request

CargoStatus

Shipping & Funding Detail

Exporter’s Bank

Importer Exporter

Vessel Booking ConfirmationBill of Lading

Rated Bill of Lading

Dock Receipt

Freight Forwarder / NVOCC

Purchase Order

LCConfirmation

AES

Dock receipt

Pick-up & Delivery Order

Vessel Manifest

Dock receipt

Release/Approval

Demurrage guarantee & payment

Inland Carrier

Manifest

Pick-up & Delivery Order

Importer Notice

Converted VesselManifestCustoms (Export)

Port

Customs ( Import )

Original B/L, Invoice, PO, Packing List

Inland Carrier

Marine Insurance Company

Fund Transfer

Confirmed Line of Credit

Release/HoldNotice

Purchase Exportation Importation

ImportTerminalOperator

Proforma Invoice

Export Declaration

Export Declaration

Bill of lading, Documentation

Import Docs

Export Terminal Operator

• 20 actors;• > 200 data

elements;• Manual procedures;• Multiple data

systems;• > 30 documents or

messages.

Data exchangein International Trade

Too many documents…• Enquiry• Order• Despatch advice• Collection order• Payment order• Documentary credit• Forwarding instructions• Forwarder's invoice• Goods receipt• Air waybill• Road consignment note• Rail consignment note• Bill of lading

• Freight invoice• Cargo manifest• Export licence• Exchange control doc.• Phytosanitary certificate• Veterinary certificate• Certificate of origin• Consular invoice• Dangerous goods

declaration• Import licence• Customs delivery note• TIR carnet

PRE-ARRIVAL & ARRIVAL INFORMATIONPre-Arrival• Vessel’s characteristics or ship’s particulars, kind and tonnage of cargo, vessel’s ETA and master’s requests

must be notified to the Harbour Master Department every 48hrs, 24hrs or at least six hours prior to vessel’s arrival at the port’s anchorage areas.

Arrival• The component of the committee that performs vessel clearance consists of 10 members from Harbour Master

Department, Department of Customs and Excise, Immigration Police, National Shipping Agency and Broker, and Quarantine Authorities. Ten copies of cargo manifest are required to be provided to the Department of Customs and Excise.

• Entry permit (arranged by official shipping agency), • Last port clearance certificate, • 15 lists of last port of call (at least 10 last ports), • 5 declarations of vessel’s arrival, • 10 import cargo manifests, • 3 bills of loading, • 2 transit cargo manifests, • 7 crew lists, • 7 passenger lists, • 3 lists of vessel’s provisions, • 3 lists of crew personal effects, • 1 copy of health declaration certificate, • 1 copy of vaccination list, • 1 copy of drugs and narcotic list, • 1 copy of fresh water origin, • 3 cargo plans, • 1 copy of valid original ship’s certificates, • Certificate of vessel's registration,

– International load line certificate, – International tonnage certificate, – International oil pollution prevention certificate, – Cargo vessel safety equipment certificate, – Cargo vessel safety construction certificate, – Cargo vessel safety radio certificate, – Minimum safe manning certificate.

• Exemption Certificate (to be inspected by quarantine officers ).

• Scope of Trade facilitation

• Traders main concerns

• At the border• Key areas of work

Trade Facilitation: An Introduction

Crossing the

Country Destination

BORDER

Commercial regulationsand practices

Traffic regulationsand operational practices

Vehicle standardsand regulations

Design, construction,maintenance and inter-operability

Country Origin

SERVICES

OPERATIONS

VEHICLES

INFRASTRUCTURE

GOODS Products conformity,standards & regulations

Infrastructure

Operations

Services

Vehicles

Goods

Fina

nces

Custo

ms

Comm

erce

Indu

stry

Inter

ior

Tran

spor

t

Fore

ign A

ffairs

Cham

bers

of C

om.

• Scope of Trade facilitation

• Traders main concerns

• At the border• Key areas of work

Trade Facilitation: An Introduction

Role assigned to CustomsRevenue Collection of import taxes (duties & excise)

Protection of society <health, safety> (drug trafficking, firearms, environment, counterfeit etc.)

Economic development <trade, investment> (trade facilitation)

Protection of Economic Interests (domestic production & services industry)

Security <terrorism>(shifting focus to supply chain)

CUSTOMS FUNCTION

Functional linkages

CustomsAutomation

CustomsTime Release

RiskAssessment

SingleWindow

Post-auditControls

AdaptedH.S.

Standardizeddocumentation

Sequencing

ID Linkages betweenTrade Facilitation measures

Q2 05

27.3

1 Standardization and simplification

2 Introduction of single administrativedocument (SAD)

3 Computerization and automation of Customsprocedures

4 Risk management, pre-arrival processing andpost-clearance audit

5 Customs-related judicial or administrativemeasures

Q4 04

13.22.1 30.116.1 10.46.2

Q1 05

20.27.11 3.46.35.12 9.1 27.2 13.3 20.323.1

Cooperation at the international level

Cooperation at the regional levelBORDERCountry A

GovernmentAuthorities

Min. Trade,Finances (Customs),Transport, Interior,

Foreign Affairs, etc.

Private sectorChambers of Commerce,professional associations,corridor-based interests

(around projects such as:ICD, Free Zones, etc.)

NTTFC, Clusters,Public-Private Partnerships

Country BGovernmentAuthorities

Min. Trade,Finances (Customs),Transport, Interior,

Foreign Affairs, etc.

Private sectorChambers of Commerce,professional associations,corridor-based interests

(around projects such as:ICD, Free Zones, etc.)

NTTFC, Clusters,Public-Private Partnerships

Bilateral consultationson trade & transport issues

Professional networks

Regionalcoordination

Cooperation at the national level

• Between the government institutions concerned by foreign trade: Finance, Commerce, Transport

• With the trading community: importers and exporters

• With service providers: transport operators, banks, insurance companies…

• Scope of Trade facilitation

• Traders’ main concerns

• At the border• Key areas of work

Trade Facilitation: An IntroductionGeneva, November 2012Jan.Hoffmann@UNCTAD.org