Trade Facilitation: An Introduction

1. Trade Facilitation: An Introduction Jan.Hoffmann@UNCTAD.org Geneva, May 2009

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

3. Trade Facilitation: An Introduction • Scope of Trade facilitation • Traders’ main concerns • Key areas of work

4. 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.

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

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

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

8. 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.

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

12. 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.

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

16. 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.

18. Trade Facilitation: An Introduction • Scope of Trade facilitation • Traders main concerns • Key areas of work

19. S B INFORMATION The Trade Transaction GOODS PAYMENT

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

21. 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

22. 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.

23. 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…

24. 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 (to be collected only on the first call of the year of each ship), • 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 ).

25. Days to complete each stage of importing Source: World Bank Doing business 2006

26. Inspections Source: World Bank Doing Business 2006

27. Trade Facilitation: An Introduction • Scope of Trade facilitation • Traders main concerns • Key areas of work

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

29. Sequencing

30. Cooperation at the national level • Between the government institutions concerned by foreign trade: Finance, Commerce, Transport • With the private sector in the trading community: importers and exporters • With service providers: transport operators, banks, insurance companies…

31. Cooperation at the internationallevel

32. Trade Facilitation: An Introduction Questions? • Scope of Trade facilitation • Traders’ main concerns • Key areas of work