TTFSE Program

1. TTFSE Program • Regional Investment Program US$120 million, WB $78 million • 8 countries/one project in each implementation started in 2001 for first six • Goals: (a) Reduce : (i) processing time for legitimate traders/transporters, (ii) ‘facilitation’ payments, and (iii) corruption related to international transport and trade; (b) in parallel improve effectiveness of controls and of anti-smuggling efforts. • Components: TA for border agency modernization (Customs), IT equipment and TA (Single Elect. Window), border crossing improvements, training to service providers, website on all applicable rules/procedures of border agencies • What made it possible? *Committed countries: -European integration prospects -Strong donor support (SECI,Stability Pact, Netherlands, Austria, France) -Peer pressure -High cost of not acting (transport cost/credibility as trading partners) *High level support from ECAVP -Willingness to go regional and add projects to CAS -Timely budget

2. TTFSE Mechanisms • Balancing top-down and bottom up approach (strategy-local project teams) • Regional Mechanisms *Performance measurements -at border crossings and clearance facilities -at Customs operational level (efficiency) *Regional Steering Committee: high decision makers-policy and comparison *Regional Website *Regional Training for traders, transporters, forwarders (see transweblibraryECA website) • Strong Involvement of Private Sector/ Professional Associations *Constant dialogue (contribution to RSC) *Building on an existing regional network (more than 100 specialists regionally under PRO-Committees) *User surveys (in each country) *Trade facilitation component implementation *Building distance learning programs with international/local professional associations (IRU, FIATA)

3. Performance Indicators • Customs efficiency indicators - National customs performance measurement - Allow for comparison (evolution, regional) - Close attention needed in collection • Pilot site indicators - National Customs and US Customs collecting data regionally and measuring the overall processing (from entry to exit) - Three indicators linked to covenants : Percentage of vehicles cleared in less than 15 minutes; percentage of declarations inspected; trucks opened at border. - Constant attention required to collect meaningful and comparable data while staff rotates www.seerecon.org/ttfse//RegionalInitiatives/TTFSE/TTFSE_Manual.pdf

4. TTFSE Indicators (2) • Pilot Sites *Pilot Inland Terminal -Import Clearance Time (min) -Physical Examination (%) -Trucks cleared in less than 15 min (%) -Irregularities/number of examinations (%) *Pilot Border Crossings -Truck Examination (%) -Irregularities/ Number of Examinations (%) -Average Border Exit Time (min) -Average Border Entry Time (min) -Surveyed Occurrence of Corruption (%) • Customs Efficiency Indicator ratios based on: -Total Number of Customs Staff -Annual Number of Declarations -Total Customs Collection (US$ million) -Total Customs Salaries (US$ million) -Total Customs Cost (US$ million)

5. Regional User Survey • First phase – strengthen baseline and methodology - Objective: supplementing performance measurements through survey, interviews and discussion groups to analyze performance improvement among border agencies in each country. - A sample of 15 to 30 firms (forwarders, transport companies, traders) in each country, with validation from international firms as needed - Questionnaire covering six dimensions : Customs law; Communication; Procedures; Personnel and Integrity; Logistics; Work methods - Methodology refined after first phase to increase comparability of results; transfer to Chambers of Commerce in phase II  Highly useful tool to initiate in depth discussions

6. Ttfse cost and trade map

7. TTFSE and Distance Learning • Professional competence-an EU requirement for road transp. Operators *EU-accession  legal harmonization *Creation of 13 vocational training centers (EU-PHARE/TACIS) *IRU Academy established regional quality standards (CPC)/planned DL *Bank/TTFSE program catalyst to attract funding for knowledge transfer *Distance Learning Certificate of Professional Competence for RTO : two countries being piloted BA, MK - 2 other enrolled-three more involved shortly • Similar approach with FIATA-Preparation of a Distance Learning Program for Forwarders, started in SEE • Next steps in DL *Creation of a web platform for the Global Facilitation Partnership-Distance Learning Initiative (GFP-DLI) (under finalization) *Creation of a mechanism for new Bank projects to build on available content and programs with certification and support their expansion, as appropriate to new countries *Prof. Associations: Leadership role *WB: catalyst to attract funding and help in content pooling. *Sustainable capacity building tool *Integration and use of content produced by donors/IFIs, professional associations *Development of a Supply Chain Manager Program *Cooperation with other regions to see what program could be expanded

8. Achievements and Challenges • Some Achievements *Sharp improvement in performance at some pilot sites in one year through procedural improvements -Inland terminal (HR) : processing time reduced by 50% (150 minutes); Border crossing exit time (HR) reduced by 75%; -Advanced declaration module (BG) reduction of clearance to 15 minutes for pre-cleared goods *RSC: decision on International Weighing Certificate recognition for Customs *New Customs Law adopted in Croatia and Macedonia • Challenges *High rotation of key staff at country levelhigh supervision intensity to preserve initial results *High expectations *Delays in introducing selectivity *Close coordination made difficult by the large number of players *Setbacks (conflict in Macedonia) *First phase of an 8 year modernization process-demonstrating the approach validity *Sustainability and EU prospects *Defining similar program in other regions (Caucasus, Central Asia)