Trade Facilitation: An Introduction

1. Trade Facilitation: An Introduction Geneva, November 2012 Jan.Hoffmann@UNCTAD.org • Scope of Trade facilitation • Traders’ main concerns • At the border • Key areas of work

2. Trade Facilitation: An Introduction • Scope of Trade facilitation • Traders’ main concerns • At the border • Key areas of work

3. TRADE FACILITATION Simplification Harmonisation Standardisation Process of eliminating all unnecessary elements and duplications in formalities, processes and procedures Alignment of national procedures, operations and documents with international conventions, standards and practices. Process of developing internationally agreed formats for practices and procedures, documents and information.

4. TRADE FACILITATION Standardisation Process of developing internationally agreed formats for practices and procedures, documents and information.

5. International rules and standards • IMO • ISO • UN-CEFACT • WCO • WTO

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

7. TRADE FACILITATION Simplification Harmonisation Standardisation Process of eliminating all unnecessary elements and duplications in formalities, processes and procedures Alignment of national procedures, operations and documents with international conventions, standards and practices. Process of developing internationally agreed formats for practices and procedures, documents and information.

8. TRADE FACILITATION Harmonisation Alignment of national procedures, operations and documents with international conventions, standards and practices.

11. TRADE FACILITATION Simplification Harmonisation Standardisation Process of eliminating all unnecessary elements and duplications in formalities, processes and procedures Alignment of national procedures, operations and documents with international conventions, standards and practices. Process of developing internationally agreed formats for practices and procedures, documents and information.

12. TRADE FACILITATION Simplification Process of eliminating all unnecessary elements and duplications in formalities, processes and procedures

15. Trade Facilitation: An Introduction • Scope of Trade facilitation • Traders main concerns • At the border • Key areas of work

16. S B INFORMATION The Trade Transaction GOODS PAYMENT

17. Company B Company A Product Retailers Supplier Manufacturer Wholesalers Customer

18. 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

19. Purchase Exportation Importation Bill of lading, Documentation Vessel Booking Request Confirmed Line of Credit Vessel Booking Confirmation Release/Approval Exporter’s Bank Importer’s Bank Bill of Lading Rated Bill of Lading Arrival Notice Original B/L, Invoice, PO, Packing List ImportTerminalOperator Fund Transfer Ocean Carrier Dock Receipt Demurrage guarantee & payment Line of CreditProforma Invoice Cargo Status LCConfirmation Export Terminal Operator Purchase Order Customs House Broker Exporter Importer Dock receipt Pick-up & Delivery Order Import Docs Proforma Invoice Pick-up & Delivery Order Release/HoldNotice Letter of InstructionInvoice, PO Inland Carrier Cargo Status Freight Forwarder / NVOCC Inland Carrier Manifest Customs ( Import ) Shipping & Funding Detail Dock receipt Export Declaration Marine Insurance Company Vessel Manifest Shipping & funding detail AES Export Declaration Port Converted Vessel Manifest Customs (Export) Importer Notice Data exchangein International Trade • 20 actors; • > 200 data elements; • Manual procedures; • Multiple data systems; • > 30 documents or messages.

20. 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 Too many documents…

21. PRE-ARRIVAL & ARRIVAL INFORMATION Pre-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 ).

22. Trade Facilitation: An Introduction • Scope of Trade facilitation • Traders main concerns • At the border • Key areas of work

23. Products conformity, standards & regulations GOODS Commercial regulations and practices SERVICES Traffic regulations and operational practices OPERATIONS Vehicle standards and regulations VEHICLES Design, construction, maintenance and inter-operability INFRASTRUCTURE Country Origin Country Destination BORDER Crossing the

24. Chambers of Com. Foreign Affairs Commerce Transport Services Goods Finances Customs Industry Interior Operations Vehicles Infrastructure

25. Trade Facilitation: An Introduction • Scope of Trade facilitation • Traders main concerns • At the border • Key areas of work

26. Role assigned to Customs Revenue Collection of import taxes(duties & excise) CUS TOMS F UNC T I ON Protection of Economic Interests (domestic production & services industry) Protection of society <health, safety> (drug trafficking, firearms, environment, counterfeit etc.) Economic development<trade, investment> (trade facilitation) Security <terrorism> (shifting focus to supply chain)

27. CustomsTime Release RiskAssessment Standardized documentation AdaptedH.S. CustomsAutomation SingleWindow Post-auditControls Functional linkages

28. Sequencing

29. Cooperation at the internationallevel

30. BORDER Country A Country B Bilateral consultationson trade & transport issues Government Authorities Min. Trade,Finances (Customs), Transport, Interior, Foreign Affairs, etc. Government Authorities Min. Trade,Finances (Customs), Transport, Interior, Foreign Affairs, etc. NTTFC, Clusters,Public-Private Partnerships NTTFC, Clusters,Public-Private Partnerships Regionalcoordination Private sector Chambers of Commerce, professional associations, corridor-based interests (around projects such as: ICD, Free Zones, etc.) Private sector Chambers of Commerce, professional associations, corridor-based interests (around projects such as: ICD, Free Zones, etc.) Professional networks Cooperation at the regionallevel

31. 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…

32. Trade Facilitation: An Introduction Geneva, November 2012 Jan.Hoffmann@UNCTAD.org • Scope of Trade facilitation • Traders’ main concerns • At the border • Key areas of work