wco regional workshop on strategic initiatives for … · adb’s support for customs modernization...

ADB’s Support for Customs Modernization and Trade Facilitation

Across Asia and the Pacific

WCO Regional Workshop on Strategic Initiatives for

Trade Facilitation - Mercator Programme16-18 March 2015, Jakarta, Indonesia

Outline

About the Asian Development Bank

ADB’s Support for Customs Modernization and Trade Facilitation

ADB-WCO Partnership

Customs Modernization and Trade Facilitation: Major ADB Activities

Challenges in the 21st Century and Customs Reality

Customs: Economic Development with Sound Social Development for

All

Project Cycle

Developing a strong business case

WTO ATF, WCO Tools and ADB

Contact Persons for Customs Modernization, Trade Facilitation and

Trade Security

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3

Established in 1966 Long-term ratings:− S&P: AAA− Moody’s: Aaa− Fitch Ratings: AAA HQ in the Philippines

28 offices in Asia including Sydney3 representative offices in Frankfurt,

Tokyo, and Washington DC Over 2,800 employees

Quick Facts

ADB HQ

ADB Field Offices

3


- ADB Operational Structure

4

Public sector funding and private sector funding

operated under one corporate umbrella and strategy

Policies and strategies

Management

Sovereign Operations(Regional departments)

Non Sovereign Operations(PSOD)

East Asia

Southeast Asia

South Asia

Central and West Asia

The Pacific

All regions


Strategy 2020 (2008)

Mid-term Review of Strategy 2020 (April 2014)

Mid-term Review of Strategy 2020 Action Plan (July2014)

Inclusive Growth

Environmentally Sustainable Growth

Regional Integration and Cooperation

5


Regional Cooperation and Integration (RCI) Strategy

Knowledge/

Capacity BuildingPillar 1

Cross-border

infrastructure and

related software

Knowledge/


Trade and

Investment

Cooperation and

Integration

Knowledge/

Capacity Building

Knowledge/


Monetary and

Financial

Cooperation and

Integration

Pillar 4

Cooperation in

Regional

Public Goods

Investing in

cross-regional

Infrastructure

connectivity

Research on Best

Practices in RCI

Lending and

knowledge work

on : (i) trade and

investment

creation and

promotion; (ii)

trade facilitation;

(iii) trade finance

Collaboration with

international

institutions (WCO

and WTO)

Regional

macroeconomic

and financial

stability Regional policy

dialogue (Finance

Ministers

meetings) Chiang Mai

Initiative (CMI) Asian Bond

Markets Initiative

(ABMI)

Environmental

protection Management of

natural disasters Prevention and

containment of

communicable

diseases Energy efficiency Clean Energy

funds and

partnerships

To reduce poverty in Asia and the Pacific through regional collective action that leads to greater physical connectivity; trade and investment expansion; financial market development and regional macroeconomic and financial stability; and improved

environmental, health and social conditions

Overall Goal

ADB’s Support for Customs Modernization and

Trade Facilitation: Overview

CMTF Projects (2000-2014)

21 investment projects/programs ($227 million)

73 TA projects ($82 million)

Increasing focus on trade facilitation and security

Economic Competitiveness Program

Promoting accession to RKC, SAFE, HS, etc

New tools (Revised TRS, Single Window compendium and

Risk Management compendium, etc)

Close partnership with WCO

MOU with WCO in 2010

WTO ATF (2015~)

APEC SCCP (2010, 2011, 2015)7

ADB-WCO Partnership:

MOU to Maximize Operational Complementarity

ADB-WCO MOU signed duringADB Annual

MeetingTashkent

(4 May 2010)

”Facilitating and securing global trade will have a substantial

economic impact on ADB's developing member countries and will

further deepen regional economic integration in the region," said

Mr. Kuroda. “Under the MOU, ADB's transport infrastructure

finance and regional cooperation programs and WCO's technical

customs competency will complement each other and improve the

efficiency of our efforts to facilitate and secure trade.”

8

Good (+)

Bad (-)

Trade Finance

Human

Trafficking

HIV/AIDS

Infrastructure

Improvement

Customs

Improvement

Accidents,

pollution, etc

Transit

Improvement

Tra

de

/T

ra

ffic

In

cre

ase

Po

sitive

Eco

nom

ic

&

S

oc

ia

lIm

pa

cts

Ne

gative

S

oc

ia

l &

He

alth

Im

pa

cts

Ne

gative

E

co

nom

ic

Im

pac

ts

ADB and WCO

ADB and WCO

ADB-WCO Partnership to

promote the good and contain the bad …

Source: Haruya Koide, ADB. 2005. Central and South Asia Transport and Trade Forum. Modified in 2010 and 2012.

Illicit

Trade

ADB-WCO-IDB: Asia and the Americas:

Customs Leaders Partnership Dialogue ̶ Efficient and Secure Trade

for Shared Prosperity (Panama City, Panama, 4-5 April, 2013)

136 participants from Asia and Latin America and the Caribbean (LAC)

97 customs leaders from 53 countries from the two regions and 39 staff

from ADB, IDB, WCO, and Panama Customs, gathered to discuss and

exchange views on key customs-related issues and challenges, as well

as South-South cooperation opportunities between Asia and LAC.

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Topics

strategic partnership for growth and development of the two regions;

modern customs procedures (including the Revised Kyoto Convention

[RKC]) towards improving economic competitiveness and deepening

regional integration through implementing the Economic Competitiveness

Package (ECP);

customs’ contribution to interregional connectivity through introduction of

information and communications technology (ICT);

customs approach to facilitating and securing international trade including

Authorized Economic Operator (AEO) and Mutual Recognition

Agreement (MRA) schemes;

transformation of customs operations through performance measurement;

customs-to-customs (C2C) cooperation to counter illicit trade for

protecting society; and

capacity building

ADB-WCO-IDB: Asia and the Pacific and the Americas (AP-A):



11

12

The Dialogue identified four priority themes for cooperation between

Asia and LAC

trade facilitation

trade security

information exchange

protection of society

ADB-WCO-IDB: Asia and the Pacific and the Americas (AP-A):



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Central Asia Regional Economic Cooperation (CAREC)

-Customs Cooperation and Trade Facilitation

Main Goals

Reduce transaction costs and time by

improving administrative efficiency

simplifying, standardizing, and harmonizing trade procedures.

Encourage the free movement of people and goods.

Increase the transparency of trade regulations and procedures.

In October 2012, the CAREC Custom Coordination Committee

(CAREC CCC) agreed to adopt the self-assessment tools of the

World Customs Organization (WCO) in their work on RKC.

There are 5 CCC member customs that have not acceded to the

RKC and others will still need to enhance compliance.

“Accession to the RKC has been one of the cornerstones of

CAREC Customs Cooperation and Trade Facilitation”

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-Customs Cooperation and Trade Facilitation

Main Reform and Modernization Agenda

Amended Customs codes

Joint customs control (JCC): PRC-Kazakhstan and PRC-

Mongolia

Time release studies (TRS)

Capacity building

Partnership with Shanghai Customs College (SCC) and

WCO’s ROCB AP

– WCO supported regional training center utilizing WCO approved

curricula

Regular customs courses for CAREC customs officials at

SCC – Customs Modernization Training

– Customs Inspection and Risk Management Techniques

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-CAREC Customs Cooperation and Trade Facilitation

Next steps

Pair up those countries working on RKC accession

with those seeking to accede

Group 1:

RKC contracting parties – AZE, PRC, and PAK

Non-contracting parties – AFG, TKM, and UZB

Group 2:

RKC contracting parties – KAZ and MON

Non-contracting parties – KGZ and TAJ

Connect RKC accession/compliance efforts with WTO

accession/compliance efforts

Develop Accession Action Plans

Identify common needs for accession assistance

Identify common needs for compliance assistance

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Mongolia: Customs Modernization Project

Financing

ADB ($5 million and $0.5 million eAsia Partnership

Fund)

Korean Government/KOICA ($2.5 million)

Mongolian Government ($1.3 million)

Project Scope

Customs Automated Information System (CAIS)

Data center installed at the HQ of Mongolian Customs

General Administration, connected to

all the customs houses in MON and

border customs posts through VSAT

Back-up system in the Ulaanbaatar Customs House

Central laboratory in the HQ

Training (ADB and KOICA) 16

17



Scope of ADB Project Scope of KOICA Project

Ex

tern

al P

orta

l

International

Service

ProviderGlobal

Conn

-ection

OGA

ICT Management System

Customs Administration Information System

Integrated Customs Information system

Clearance Management

Cargo Management

Tax & Revenue Management

Classification ManagementIntegrated DB

Data

Warehouse

Data

MartExecutive

Information

Server & Network Management System

ICT Infra

Backup Management System

Ex

tern

al C

on

nec

tion

XML

XML

SSIA

MASM

GDNT

SGA

EDI

CCI

WEB

RUSSIA

CHINA

EDI

Bank

Risk

Management

Statistics

Management

e-Tracking System

Security System

Airlines

Transport

Companies

Trading

Companies

Railway

Customs

Brokers

Customs Automated Information System: Overview

18

ADB lending to CAREC Corridor 4 (North

South Road Transport Corridors)

4a:Ulaanbaishint-Yarant

4b:Suhbaatar-Ulaanbaatar-Zamyn-Uud

ADB Regional Logistics Development Project

(Zamyn-Uud)


- ADB’s Behind the Border Support

4a

4b

ADB has been recognized as the most valuable contributor to

trade facilitation and infrastructure development by MON

National Chamber of Commerce and Industry and was awarded

the Honorary Order “Silk Road” during the biannual Silk Road

Award Ceremony held in February 2012.

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Mongolia: Customs Modernization

Related Support

PRC Customs Grant for X-ray at Zamyn-Uud

ADB TA supporting PRC-MON joint customs control (JCC) pilots at 2

pairs of border crossing points

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KGZ&TAJ: Reg Customs Modernization & Infra Dev

Financing

ADB ($10.7 million: TAJ component and $7.5 million:

KGZ component)

US Gov/the Bureau of International Narcotics and

Law Enforcement Affairs (INL)($1.6 million: TAJ

component [Kulma border post (BP) with PRC and

Kizilart BP with KGZ])

TAJ Gov ($2.7 million) & KGZ Gov ($1.9 million)

Project Scope

Unified Automated Information System (UAIS)

Construction of BP infrastructure and procurement

of X-ray machines (12 scanners in TAJ) and

generators (102 locations comprising 74 border

points in TAJ and 28 border points in KGZ)

Training

Completed on 31 October 2011 21

KGZ&TAJ: CAREC Regional Improvement of Border

Services Project

Financing

ADB $17.4 million: TAJ ($9.2 million) and KGZ ($8.4

million)

Governments $3.4 million: TAJ ($1.9 million) & KGZ

($1.5 million)

Project Scope

Border crossing point improvement

Karamyk in Kyrgyz Republic and

Guliston in Tajikistan

National single window development

Project management and supervision capacity

strengthening

Implementation Period: June 2013-December 2017

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Greater Mekong Subregion (GMS)

- Transport and Trade Facilitation Action Plan

Endorsed by the 16th GMS Ministerial Conference in 2010

Implementation: 3 subprojects (2010-2012, 2012-2014, and

2014-2016)

10 priority areas

1. Exchange of traffic rights

2. Improved transit

3. GMS-Freight Transport Association

4. Strengthened Road Transport Industry

5. Coordinated Border Management

6. Enhanced SPS Regime

7. Strengthened Trade and Transport Facilitation

Institutions

8. Regional Trade Logistics Strategy

9. Capacity Development

10. Legal/Regulatory Improvement and Harmonization

Partnership with WCO ROCB AP

23

GMS CBTA Single-Stop Customs Inspection at the

Viet Nam-Lao PDR Border

Allows border control authorities from two countries to

jointly conduct one-stop inspection at inbound

checkpoints.

ADB supported bilateral meetings between the transport

ministries of Lao PDR and Viet Nam on 3-4 October 2012 to

revisit the SSI process

Viet Nam and Lao PDR Customs officials are conducting

joint inspection of cargo trucks under the CBTA SSI

modality at the Lao Bao border in Viet Nam

24

GMS and Indonesia-Malaysia-Thailand Growth Triangle (IMT GT)

- Trade Facilitation Support for ASEAN

Regional TA: Trade Facilitation Support for ASEAN

Economic Community Blueprint Implementation (2012)

1. Trade Facilitation Indicators (including TRS)

2. Improved Legal and Regulatory Framework

(RKC Accession)

1. Efficient Border Agency Operations

HS, rules of origin, risk management (customs

enforcement network [CEN]), single window

2. Capacity building

25

BIMP-EAGA

- Support for Trade Facilitation

1. Strengthening trade-related outreach activities

2. Enhancing risk management in local context

3. Strengthening compliance-based Post Clearance Audit (trader-

centric, system-based)

4. Accreditation of reliable traders following the SAFE Framework

principles

5. Adoption of various monitoring and evaluation tools (including

the TRS) to measure results

26

Brunei Darussalam – Indonesia –

Malaysia – Philippines East ASEAN

Growth Area (BIMP-EAGA):

Customs Sector Action Plan (2011-2014)

South Asia

- SASEC Trade Facilitation Program

SASEC Trade Facilitation Program (TFP)

1. SASEC TF Program: support policy reforms

(Bangladesh: $21M; Bhutan: $12M; and Nepal: $15M)

TFP Promotes the RKC and SAFE Framework

• Customs Modernization

• Harmonization and Simplification

• Transport and Transit

• Information and Service Orientation

2. Technical Assistance Projects

Support the TF Program design and implementation

SASEC TF Program was designed and is being implemented in

cooperation with WCO (Brussels and ROCB AP)

SASEC TFP is being implemented in conjunction with SASEC

regional road connectivity improvement in Bangladesh, Bhutan, India

and Nepal.

(SASEC = South Asia Subregional Economic Cooperation) 27

South Asia

- Trade Facilitation Activities

Research and Knowledge Production: Business Process Analysis

(BPA)

The BPA methodology is being used to collect data on costs and

time of trade procedures and processes in SASEC countries on

selected border crossing points and corridors.

TA Support for SASEC Trade Facilitation

ADB approved 3 TA projects in Bangladesh, Bhutan, Nepal and 1

regional TA project funded by Japan Fund for Poverty Reduction,

totaling $6 million (August and September 2013 )

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PNG: Pilot Border Trade and Investment

Development Project (2009)

PNG: TA Pilot Border Trade and Investment

Development Project

PNG: Trade and Investment Institutional

Strengthening

RETA (PNG-Indonesia and Timor Leste-

Indonesia): Capacity Strengthening and

Institutional Development for Border

Management and Trade and Tourism

Development in the Pacific (2010)

Improve capacity for border management and

cross-border transport links between PNG

and Indonesia, and between Timor Leste and

Indonesia

Pacific


29

TA 46502: Trade and Transport Facilitation in the Pacific

($2 million JFPR, approved in June 2014)

The expected impact of the TA

improved trade competitiveness of Pacific developing member

countries (DMCs), and the outcome will be participating

Pacific DMC governments strategically plan trade and

transport facilitation investments.

The TA’s components

(i) assessment tools for trade facilitation and transport

logistics performance established and institutionalized;

(ii) national and regional agencies’ capacities to assess trade

and transport demand and design investment and policy

options strengthened; and

(iii) regional and national agencies’ capacities to improve

logistics and customs performance strengthened.

Pacific


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ADB-WCO Activities (1-5) in 2014

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2014 ActivityPlace

(City, Country)Dates

Joint Subregional Train-the-Trainer Workshop on Customs Valuation under the Multiyear Assistance Initiative

Colombo, Sri Lanka

3-7 February 2014

WCO Asia/Pacific Regional Workshop on Resource Mobilization

Melaka, Malaysia 24-28 February 2014

National Workshop on Trade and Transportation Facilitation Monitoring Mechanism (TTFMM)

Phuntsholing, Bhutan

10-14 March 2014

CAREC Trade Facilitation: Customs Cooperation Committee Technical Assistance Inception Workshop

Baku, Azerbaijan 7-9 April 2014

National Workshop on TTFMM Dhulikhel, Nepal 15-17 April 2014


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First GMS Transport and Trade Facilitation Development Partners Meeting

ADB HQ, Manila, Philippines

21-22 April 2014

Time Release Study (TRS) Exit Conference

Putrajaya, Malaysia

29 April 2014

Second Meeting of the SASEC Customs Subgroup and Training on Customs Automation

Kathmandu, Nepal

22-23 May 2014

Revised Kyoto Convention (RKC) Training Workshop

Yangon, Myanmar

28-30 May 2014

National Workshop on RKC Implementation

Thimphu, Bhutan 9-12 June 2014


33

ADB-WCO Midterm Review ADB HQ, Manila, Philippines

23 June 2014

2014 WCO Knowledge Academy for Customs and Trade

Brussels, Belgium

30 June-11 July 2014

National Planning Workshop on TRS Ulaanbaatar, Mongolia

29 July – 1 August 2014

13th Customs Cooperation Committee Meeting

Issyk-kul, Kyrgyz Republic

22-23 September

2014

TRS Exit Conference Yangon, Myanmar

26 September 2014


34

Risk Management Training and Systems Assessment Workshop

Tashkent, Uzbekistan

29 September– 4 October

2014

ADB Review of draft WCO Transit Handbook

ADB HQ, Manila, Philippines

10 October 2014

Risk Management Training and Systems Assessment Workshop

Astana, Kazakhstan

14-17 October2014

National Workshop on the Authorized Economic Operator (AEO) Program

Baku, Azerbaijan 21-23 October 2014

Second WCO-ADB Joint SubregionalTrain-the-Trainer Workshop on Customs Valuation

Male, Maldives 21–24 October 2014


35

WCO ROCB A/P 10th Anniversary Bangkok, Thailand

7 November 2014

National Planning Workshop on TRS Bishkek, KyrgyzRepublic

10-13 November

2014

National Planning Workshop on TRS Astana, Kazakhstan

17-20 November

2014

RKC: Sharing of Accession Experiences for CAREC Countries

Shanghai Customs College, People’s Republic

of China

17-22 November

2014

Facilitation of Regional Transit Trade in CAREC – Inception Workshop

Almaty, Kazakhstan

15-16 December

2014

Asia and the Pacific

- Japan Trade Facilitation Initiative (JTFI)

Amount: $25 million

Period: 2011-2015

Geographical Focus: Asia and the Pacific

Financing Source: The Government of Japan

Administration: ADB

Operational Partnerships: Customs and Tariff Bureau,

Japan; JICA; WCO; and ADB

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- Level of RKC Accession

37

0%

10%

20%

30%

40%

50%

60%

2010 2011 2012 2013 2014

Developing Asia (ADB's DMCs)

World (Contracting Parties)

Source: ADB staff estimate based on the WCO web data on RKC accession.


- RKC Accession Countries

38Source: WCO web data on RKC accession.

ADB DMCs Date of Accession

2000

1. People’s Republic of China 15 June 2000

2003

2. Republic of Korea 19 February 2003

2004

3. Pakistan 1 October 2004

2005

4. India 3 November 2005

2006

5. Azerbaijan 3 Febrauary 2006

6. Mongolia 1 July 2006

2008

7. Viet Nam 8 January 2008

8. Malaysia 30 June 2008

2009

9. Kazakhstan 19 June 2009

10. Sri Lanka 26 June 2009

2010

11. Fiji Islands 29 January 2010

12. Philippines 25 June 2010

2012

13. Bangladesh 27 July 2012

2013

14. Armenia 19 July 2013

2014

15. Papua New Guinea 31 January 2014

16. Cambodia 28 June 2014

17. Indonesia 22 August 2014

18. Bhutan 15 September 2014

Challenges in the 21st Century and Customs Reality

Challenges

1. Increasing trade volumes and complexity

Substantial Asia’s trade increase (12% since 2000)

Trade today is “the world is making things together”

Private sector’s calls for speedy customs services

Increasing concerns over security and illicit trade

2. Human resource (HR) constraints

3. Budgetary constraints

Customs Reality

Customs administrations have to deliver efficient and effective

services

with limited budgets and staff

in meeting the increasing trade volumes, speeds and

complexities in the 21st century.

39

Customs: Economic Development with Sound Social

Development for All

21st Century expects:

Innovative and agile customs for trade facilitation and

trade security

Higher level of excellence in human capital and

partnerships to deliver complex tasks

Customs = the key role and responsibility for

attaining sustainable prosperity and

ensuring the welfare of the people

in the Asia and the Pacific region

in ongoing globalization

40

Project Cycle

- Coordination at the early stage = Key

1. Country Partnership and

Strategy –Identification of

Projects

2. Feasibility Study, PPTA

Preparation, now part of project

preparation

3. PPTA Implementatio

n

4. Loan and ADTA

Processing

5. Loan Negotiations

6. Loan Approval

7. Loan Effectiveness

8. Project Implementati

on

9. Supervision, Monitoring &

Reporting

10. Completion

11. Evaluation

41


Direct partners: Regional Departments and Field Offices

Country Partnership Strategy Paper = the starting point for

planning and coordinating ADB operations

A concise proposal with good rationale

Costs and benefits/with and without the proposed project, cost estimate,

financing plan, implementation arrangement and schedule, etc

Good perspectives more important than too detailed information

Economic and social benefits (Example: ECP)

Give a good overall picture to development partners in line with

development partners’ strategies and operational plans

Good communication and trust building skills

Human factor (know your partners well)

Dream team (DMC, WCO and development partner)

Sell benefits (value addition) of the proposed partnership well

(Mutually beneficial proposals)

42


43

InfrastructureTech

nolo

gy

Managem

ent

Balanced

Infrastructure,

Management &

Technology

Weak

Technology

Weak

Management

Weak

Infrastructure

What you want to do What you can do

(including political

commitment)

Development partner

WTO ATF, WCO Activities and ADB Activities

Source: WCO 2015 modified by ADB 2015

ADB is aware of WCO Tools to Support WTO ATF

Source: WCO 2015

ADB is aware of WCO Implementation Guidance for

WTO ATF

Source: WCO 2015

East Asia (PRC and MON): East Asia Regional Department

Public Management, Financial Sector and Regional Cooperation (EAPF)

which also has the CAREC Customs Coordination Committee secretariat

(Central and West Asia countries)

Southeast Asia: Southeast Regional Department

Regional Cooperation and Operations Coordination (SERC)

South Asia: South Asia Regional Department

Regional Cooperation and Operations Coordination (SARC)

Pacific: Pacific Department

Transport, Energy and Natural Resources Division (PATE)

ADB Contacts for Customs Modernization,

Trade Facilitation and Trade Security

47

East Asia (PRC and MON): EAPF

Ms. Cristina M. Lozano Astray

Regional Cooperation Specialist

[email protected]

63-2-632-4787 (Local)

Southeast Asia: SERC

Ms. Kanya Sasradipoera

Regional Cooperation Specialist

[email protected]

632-632-6669 (Local)

ADB Contacts

South Asia: SARC

Mr. Ronald Antonio Q. Butiong

Principal Regional Cooperation

Specialist

[email protected]

632-632-6134 (Local)

Pacific: PATE

Ms. Sarosh Khan

Senior Transport Specialist

[email protected]

632-632-4645 (Local)

48

Q: Why do we do this?

A: Efficient and secure trade creates shared prosperity and improves people’s welfare across Asia and the Pacific

Thank you

Mr. Haruya Koide

Principal Regional Cooperation Specialist

APEC Focal Point for ADB

ADB-WCO Partnership Manager

Transport and Trade Facilitation across Asia and the Pacific

Office of Regional Economic Integration

Asian Development Bank

E-mail: [email protected]

Phone: 63-2-632-6124

Fax: 63-2-636-2183

For More InformationContact

ADB’s Support for Customs Modernization and Trade Facilitation across Asia and the Pacific

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wco regional workshop on strategic initiatives for … · adb’s support for customs modernization...

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