New e-Silkroad

1. New e-Silkroad Georg-Dieter Gotschlich Consultant Former Senior Customs Official

2. Benefits and Obstacles

3. CONNECTION BY ROAD Possible Easy Fast Safe

4. Benefits • Faster Trade between Countries of Europe and Asia • Internal Development • Cost effectiveness • Getting closer • Safer Transport • More International Cooperation

5. Obstacles • From Poland to China: 4 Borders to cross • Controls at borders everytime entering and leaving Poland Belorussia Russia Kazakhstan China • 8 controls

6. Obstacles • Uncoordinated actions of Government Services • High fees and Tariffs • Bad Roads and slow railways • Different interests of States • Restrictive Regulations and Rules • Often Change of carriers and • Reloading at Borders

7. Solutions • Abolish Borders like in EU, not possible • Apply Rules of CIS, seems not possible • Use Information Technologies and • TIR, means 2 controls Poland/China • Introduce Facilitation Measures on basis of - International Cooperation and - Use of Best Practice Models

8. Situationwithin European Union • No Borders • Internal Market • Existing EU Transit System + TIR • New IT Transit System NCTS (Pilot – with participation of Switzerland) This does not apply yet for Poland, Hungary, Slovenia and other new EU-Members, but will soon do. Not however for other e-Silkroad Countries

9. SituationinCIS Countries • Easy crossing of Border via • CIS - Customs Transit System • Legally in Force • In all Countries between Poland and China • Along the e-Silkroad • However not operative and applied

10. Some Country details:RUSSIA • Use of IT Progressed • Major Difficulties with frequent changes of laws and regulations • Lack of training for frontier officials • Bad Relations with Trade, Transport, Business • Corruption

11. Some Country Details:BELORUSSIA • Presidential System • No continuity • Difficulties to find out, what are rules, tariffs to be applied • Scarcely use of IT, if at all for tariffs • Corruption

12. Some Country Details:UKRAINE • Recently very positive developments • Young active personnel, willing to change • IT progressively used • Internationally active

13. Some Country Details:Moldova • Was ready for real democracy • Consequence of bad economic conditions and country-split in two parts: • Reinstallation of Communist Powers and • Stop of transition to free economy • No IT really applied – under progressive Development at least up to government change • Corruption

14. Some Country Details KAZAKHSTAN • Open for positive developments • President applies active policies to open for Silkroute • Specific EU Program for Transit Facilitation • Many economic Customs procedures applied • Use of IT by Satellite • Preparation of extensive IT program under way • Integrity is rising in fight against corruption

15. BorderKAZAKHSTAN/CHINA • Change of railway system • Except for some kilometers trucks cannot pass into neighboring country • Reloading in both directions for most lorries and many railway cars • Different documentation • Change of transport documents

16. Some Country Details ASERBEIDJAN • Tries to modernize in context of EU TRACECA Program • Extensive fight against Corruption • Wealthy higher Society because of Oil • Very high interest in rising trade

17. Some Country Details USBEKISTAN • As result of war close relation to West • Difficult borders with Afghanistan • Intensive Customs Program with EU-TRACECA • Tashkent wants to modernize

18. Apply already available Customs Facilitation Measures • Like for instance: • Juxtaposé joint Controls with one BCP • One Stop controls • Use traffic separation • Improve communications with neighbors • Conclude agreements

19. Use already available Information Technologies • If all Countries participate • As a first step to introduce new e-Silkroad • IT measures like Diskettes, Cards, E-Mail systems etc • For transfer of data • Would immensely facilitate Border Crossing

20. Apply existing TIR System • Applicable for Trucks/Lorries • Trucks must be pre-inspected and agreed by Customs • Organized by international Organization • On basis of international Convention • In which Countries must be members • All Countries along e-Silkroad are • But: Seldom applied, preventive high cost • Safe TIR with IT like Kazakhstan

21. What to do further ? • Search for (other interim) results • Avoid re-inventing the wheel • Discuss and agree with parties concerned in the countries • Ensure findings acceptable by the agencies, the WCO and by the EU Commission

22. In the long run……

23. FACILITATION in GENERAL I

24. FACILITATION in GENERAL II

25. FACILITATIONmust be balanced byENFORCEMENT • Risks for national Budgets, Public Order, Health etc. • Risk by even more use of facilitated Silk Road in EAST WEST Direction for Drugs

27. Yearly Production of 4500 tons of Heroin in Afghanistan again Transport mainly via Landroutes

28. Intensify Risk Analysis RAS • Principles • Training • Local Start • Central office working method • Communication • Feedback

29. Further Actions • Many Programs by EU and US in Region • Additional action to bring together high ranking customs officials of the region • with Chinese and Western Officials • With support of EU, WCO, WTO • To promote Information Technologies • for E-Silkroad (Like in Safe TIR)

30. So it needs…. GOOD WILL of all Countries along the e-Silkroad and ASSISTANCE by the WEST Cooperative and trained personnel ACTIVE Facilitation and Enforcement COOPERATION with Trade, Transport Industry and all other Business And, often forgotten………. SUPPORT OF THE PEOPLE