Transcript Trade and Transport Facilitation

Trade and Transport
Facilitation
Jean Francois Arvis
International Trade Department
The World Bank
Teheran April 27 2004
Trade and Transport Facilitation
(TTF)
1. TTF: definitions, area of focus and
importance for growth.
2. TTF policies: the case of transit
3. World Bank Programs: the trade and
transport facilitation audit.
04/27/2004
Scope of TTF
Rationalisation, optimization and harmonization of
procedures and services for international trade
looking for reduction in costs and delays. Areas of
focus thus include:
•
•
•
•
Transportation networks (road, rail, maritime and air)
Customs and import procedures
Transit procedures and infrastructure
Communication and information management
Scope of TTF (2)
• Efficiency of logistics services (handling,
storage)
• Regulations and governance.
• Security
• Market structure and business practices
Issues
• The TTF should be put in the context of
international competitiveness and growth
• Today, potential gains from trade facilitation
>= gains from tariffs
• The TTF can be undertaken at the country
level by the government and stakeholders
• Multilateral framework can help (only topic
of consensus at WTO 2003 Meetings in
Cancun)
Cost and Gains from TTF
• Logistics= 1/3 cost of cargo
• Excess inventory resulting from poor
logistics can increase the cost of final
product by 20%
• Time factor:
– 1 day = 0.5 point tariff equivalent
– 1 week delay for Imports = 0.5% GDP (in Iran)
Cost and Gains from TTF (2)
• Role of IT: 10% reduction in cost of
telecommunication = 1% impact on total
trade
• WB study shows that improving trade and
transport services like ports and customs
increases trade volume by around 400 billion
USD. (Mostly South-South trade)
10 yrs growth in GDP/cap
Facilitation and growth
12%
10%
8%
6%
4%
2%
0%
-2% 0
-4%
-6%
R2 = 0,1245
0,2
0,4
0,6
0,8
2 % growth differential
facilitation index
1
The Potential Measures in TTF
• Policy reforms (e.g., removal of price
interventions/controls, adoption of
‘economic’ pricing etc.)
• Regulatory and public sector reforms
• Enterprise reform in the area of services
• Reengineering of procedures and
documentation( “single document”)
The Potential Measures in TTF (2)
• Introduction of modern information and
communication technologies related to
transport and trade (EDI)
• Key investments in infrastructure that could
remove bottlenecks to trade
• Financial system: risk mitigation measures,
transit guarantees (e.g.TIR system, bonds)
Transit facilitation
• Transit is an internationally recognized right
• Transit objectives:
• Safeguard the interests (notably customs revenue)
of the country of transit.
• Allow smooth and speedy movement of the goods
to the country of destination. This means:
– No duties or inspection on good in transit
– Adequate transit customs procedures (bonds)
Transit facilitation(2)
• Transit = most difficult issues in facilitation:
– Extended in space and time and vulnerable to
inadequate procedures and practices
– Requires International cooperation
• Transit may be an opportunity for growth in
the country of transit.
Transit lessons from experience
1. A working guarantee system (preferably
carnet)
2. Engage the private sector
3. Customs modernization:
•
•
automation,
enforcement
4. International cooperation: corridor
agreements, regional technical agreements
Flow of Documents
Customs
Shipping
Agents
Freight
Forwarders
Ministry of
Commerce
Traders
Port Authority
Customs
Brokers
Cargo
Handling
Figure A
Banks
Trade Facilitation Network
(Single Window)
Customs
Shipping
Agents
Traders
Freight
Forwarders
Ministry of
Commerce
EDI Server
Port Authority
Customs
Brokers
Cargo
Handling
Figure B
Banks
1
Resources from the World Bank
Available for Assistance in TTF
• GFP and Web based resources
• Increasing knowledge base : indicators, best
practice, reform examples
• Diagnostics and audits: trade and transport
facilitation audit
• Projects: technical assistance or hardware.
Examples of recent projects
• Tunisia
1.Development of
SMEs (ex. training)
2.Pre-export finance
(ECA)
3.EDI and “single
document”
•
Phase 2 in
preparation
• Peru
1.Export promotion
institutions
2.Export credit
3.Logistics:
• import/export
procedures
• EDI
• Key infrastructure
A Global Resource: “Global
Facilitation Partnership”
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Global forum for trade facilitation
WTO, WCO, WB
Regulators (e.g.. Ministry of transport)
Operators
Information exchange
Distance learning for professional in logistics
sector (e.g. GFPDLI)
• www.gfptt.org
Trade and Transport Facilitation
Audits (of TTFAs)
o Practical approach to problems encountered
by exporters and importers.
o Users’ perspective: based on interviews of
participants to trade activities
o Diagnostic + remedial actions.
o Potentially provide the groundwork for
cross-cutting projects
The Focus
Effectiveness of procedures and cost of services
available to international trade including:
– Inland, sea, and air transport costs
– Procedural and documentary requirements needed to
move goods through borders
– Quality and range of logistic services and infrastructure
– Information exchange and coordination between private
and public participants
The Interviewees
o Forwarder/Agent/Broker
o Multimodal Transport
Operator or 3rd party
logistics provider
o Exporter
o Importer
o Shipping Line and Ships’
Agents
o Road Carrier
o Airline/Airport
o Express Operator
o Railway Company
o Port Authority
o Key Border Crossing
Point
o Customs (central)
Commercial Bank
o Exchange
Control/Central Bank
o PSI Agency
o Chambers of Commerce
The Toolkit
• John Raven: “Trade and Transport Facilitation –
An Audit Methodology”, World Bank, April 2000.
• Based on experience of practical application in a
variety of Bank lending and project assessments.
FY04 TTFA program.
• Trade diagnostic: Benin , Chad, Laos,
Malawi, Mozambique , Tajikistan, Zambia
• Export competitiveness: Dominican
Republic, Bangladesh
• Self standing: Morocco