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Concept Note Transborder Control and Optimal Transborder Logistics Sergey Subbotin the Russian Federation. The Main Bottleneck of Effective Transborder Logistics. is weak collaboration of business and government bodies “across the border” transborder multimodal connectivity,
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Concept Note Transborder Control and Optimal Transborder Logistics Sergey Subbotin the Russian Federation
The Main Bottleneck of Effective Transborder Logistics • is weak collaboration of business and government bodies “across the border” • transborder multimodal connectivity, • coordination among border agencies, • paperless transborder document flows etc Sub-Committee on Customs Procedures promotes implementation of government policies that help to facilitate trade at the border APEC Business Advisory Council Electronic Commerce Steering Group facilitates transborder paperless trading “to reduce or eliminate the requirement for paper documents needed for customs and other cross-border trade administration”
Project Background: APEC Business Advisory Council • ABAC continues to focus on a wide range of trade facilitation issues that have the potential to improve the flow of goods and services across borders and substantially reduce costs for businesses • There are considerable efficiencies to be achieved across the supply chain through the harmonization of transport regulations… ABAC will assist in developing a work plan that will assist in establishing safer and more efficient supply chain networks across the region • ABAC has initiated work to secure improved efficiencies and safety through reform in regulatory and administrative arrangements for logistics in APEC economies Source: ABAC Report to APEC Leaders «Building Toward the Bogor Goals with One Community», Singapore 2009
Project Background: APEC Ministers Responsible for TransportationCommitments • Substantial economic benefits can be gained through further work such as addressing the practical side of trade facilitation and reducing ‘behind the border’ barriers which add cost and time • World Bank studies suggest that bringing below average APEC members half way up to the APEC average in trade facilitation would result in a 10% increase in intra APEC trade worth about US $280 billion (World Bank 2003) • We encourage further work on the following projects: • … using best practice examples, establish guidance on ways to improve the efficiency of moving goods through sea ports and airports, addressing the interaction of the commercial systems used by carriers, security regulations, border clearance processes and other factors Source: 5th meeting Ministerial Statement Adelaide, Australia, Mar2007
Project Background: APEC Leaders Statement We will accelerate our work to strengthen REI in the Asia-Pacific, taking a comprehensive approach that focuses on trade liberalization ‘at the border’; improving the business environment ‘behind the border’; and enhancingsupply chain connectivity ‘across the border’ • Leaders welcomed the APEC Supply Chain Connectivity Framework which identified eight Chokepoints on the way of seamless transport and trade flows, • ncluding Chokepoints • Lack of transparency / awareness of full scope of regulatory issues affecting logistics • Lack of awareness and coordination among government agencies on policies affecting logistics sector • Absence of single contact point or champion agency on logistics matters • Inefficient clearance of goods at the border • Lack of coordination among border agencies, especially relating to clearance of regulated goods ‘at the border’ • Underdeveloped multi-modal transport capabilities; • Inefficient air, land, and multimodal connectivity Source: SUSTAINING GROWTH, CONNECTING THE REGION, APEC Leaders Statement, Singapore, Nov2009 1 4 6 Source: APEC Supply-Chain Connectivity Framework
Project Background: Transportation Working Group TPTWG aims to balance security, safety and environmental requirements with trade facilitation and its efforts are focused on: …the development of intermodal supply chains… Proposed project responds the Work Plan for 2010 and will continue previous TPTWG activities: • Mutual Recognition of Qualifications for the Intermodal / Logistics Manager (TPT 01/2004) • Management of Security, Safety and Emerging Technology in Intermodal Transportation and Supply Chain Systems (TPTWG 06/2007) • APEC Seminar of Trade Logistics (CTI 08/2008T) • Survey of Supply Chain Workforce Development Needs & Conducting Seminars on Managing Operations and Risk in Intermodal Global Supply Chain Operations (TPT 02/2009A) • APEC E-Trade and Supply Chain Management Training Course (Phase III: Logistic Management for SMEs) (CTI 02/2010T) • APEC Supply-Chain Connectivity Symposium (Sep2010)
Possible Work Streams on Chokepoint 1: Project Focus • Enhance Transparency • Encourage transparency on all aspects of policy affecting the logistics sector • Promote regular consultations by pertinent government agencies with private sector to seek feedback on areas for improvement • Promote the exchange of best practices among trade logistics practitioners • Encourage Coordination and Holistic Approach to Logistics within each APEC economy • Encourage Review and Assessment of the Policy Environment • Identify policies or regulations that address chokepoints in the supply chain Source: APEC Supply-Chain Connectivity Framework
Project Background: Action Plan for Chokepoint 1 • to improve transparency of the regulatory environment affecting logistics and increase awareness of these issues among companies doing business in APEC economies • to improve coordination and awareness of policies affecting the logistics sector among government agencies Lead Economy:the United States Other Participating Economies:Australia, Chile, Japan, Korea, the Philippines and Viet Nam Proposed Action Coordinating Economy Involved APEC Fora Date APEC Guidelines for Advance Rulings the USA SCCP 2011 Australia, Canada, Japan, Singapore, the USA SCCP, TPTWG Symposium on Supply Chain Connectivity 2010 Compendium of Best Practices of National Logistics Associations SCCP, TPTWG 2011 Australia SCCP, TPTWG Improving the Understanding of Logistics Services 2011 Australia, the USA Source: SCI Action Plans
Current Status in APEC: Sub-Committee on Customs Procedures The mainstream of SCCP activity is Single Window Initiative APEC Single Window Implementation Guide, 2009 Single Window Development Report, 2007 Single Window Strategic Plan, 2007 Single Window is defined as afacility that allows parties involved in trade and transport to lodge standardized information and documents with a single entry pointto fulfill all import, export, and transit-related regulatory requirements Recommendation and Guidelines on establishing a Single Window United Nations Centre for Trade Facilitation and Electronic Business (UN/CEFACT) Rec #33
Current Status in APEC: Sub-Committee on Customs Procedures Source: Single Window Development Report “Working toward the Implementation of Single Window within APEC Economies”, Jun2007
Current Status in APEC: Electronic Commerce Steering Group The key guideline of ECSG activity is “APEC’s Strategies and Actions toward a Cross-Border Paperless Trading Environment”. The Strategies provide effective cross-border interaction between trade administration, custom clearance, international transportation, financial settlement and the main expected result is interoperable framework Legal Technical Procedural • Business processes • Common data model • Message standards • Platform for message exchange I n f o r m a t i o n t r a n s m i t t i n g Trade administration Customs clearance International transportation Financial settlement
Current Status in Russia The Government of the Russian Federation has approved (decree from 22 Nov, 2008 #1734) the Transport Strategy of the Russian Federationup to 2030, which includes the following objectives: • Creation of integrated information environment of technological interaction of different transport modes, transport practitioners, customs bodies and other government regulators • Use of up-to-date information and telecommunication technologies to ensure high-quality transport services • Harmonization of Russian and international transportation legal base Source: Transport Strategy of the Russian Federation up to 2030
Current Status in Russia • In particular the Transport Strategy is aimed at: • to improve the linkages between the modes in multimodal transportation systems by creation of specialized coordinating agencies • to improve the customs legal base • to simplify and accelerate the customs procedures in international transit • to continue development of transport-customs technologies, relevant information systems, transit infrastructure, which will speed up the customs processing and delivery of transit goods Source: Transport Strategy of the Russian Federation up to 2030 In the frames of Transport Strategy implementation Russia starts a long-term activity on developing the legal base of transportation regulatory framework
Advantages of Transborder Transportation Efficiency Logistics operators are responsible for coordinating complex cross-border transactions involving a variety of transport modes, as well as the necessary interchanges and transshipments Theimpact of a 10% improvement in the efficiency of transporting goods between the borders of APEC economies is estimated to be over US$21 billion (in 2004 real dollars) The most comprehensive dataset on an economy‘s logistics friendliness is the World Bank‘s Logistics Performance Index Source: the Economic Impact of Enhanced Multimodal Connectivity in the APEC Region
Project Methodology &Timeline 1. Investigation and preliminary analysis Identification and scope of relevant principles, methods and tools of transborder logistics organization, control and management, especially in coordination of transport flows and border control Thorough investigation of issues of transborder multimodal connectivity, business and government bodies’ cooperation, paperless transborder document flows etc. 2. Drafting of APEC principles of transborder logistics services optimization Draft principles should include necessary terms of use applicable to developed economies as well as developing ones. Each APEC Member economy will have an option of easy adoption of the project outcomes to its own requirements April 2011 2012
Project Methodology & Timeline 3. Discussions & Workshop Workshop holding Experts networking Discussions of the investigation stage findings, including draft of APEC principles Gathering and analysis of amendments, comments and proposals to APEC principles Development of Workshop Proceedings 4. APEC principles finalizing & Outcomes dissemination Development of the final version of APEC principles of transborder logistics services optimization Development & dissemination of project deliverables Project closure April 2011 2012
The Main Methodological Challenge of the Project Achievements • There is a strong diversity in legal and regulatory frameworks in APEC region • Just this domestic environment is the basis for APEC Economies’ achievements in transborder logistics • Project team has to provide an option of easy adoption of the outcomes to the requirements of each (developed or developing) APEC Economy • To provide this possibility we should clear understand “the institutional roots” of every identified principle, their compatibility, sequence of necessary steps to adapt / improve domestic environment • Only well coordinated international team of experienced experts can ensure the required level of research transport infrastructure officials skills level legal base regulatory framework
Project Objective & Tasks • The project objective is to determine APEC principles of transborder logistics services optimization, covering government and industry transactions • The main tasks of the project are: • to identify the principles used in APEC Member economies, methods and tools of transborder logistic organization, control and management, especially in matching of transport flows and border control • to draft the APEC principles of transborder logistics services optimization • to hold an APEC Workshop to network the TPTWG and other relevant APEC fora experts, define the common approaches and select the best relevant principles as well as discuss and improve interim results • to determine the APEC principles of transborder logistics services optimization and disseminate project outcomes
Project Features Proposing APEC Economy - the Russian Federation Co-sponsors - Australia, China, Chinese Taipei Sources of finance - APEC Operational Account& self-funding Full project proposal will be developed by Russia, if the CN is approved by BMC3 We are looking for experts with bright ideas in the project team
Contacts Information • Ministry of Transport of the Russian Federation • Project OverseerElena Batalova • BatalovaEV@mintrans.ru • 1/1, Rozhdestvenka str., Moscow, Russia,109012 • +7 (495) 626-9693 • Association for Cooperation with Nations of Asia and Pacific Region • Project CoordinatorTatyana Bogdanova • Bogdanova@ACN-partnership.ru • build 8, 15, Yaroslavskaya str., Moscow, Russia, 129366 • +7 (495) 617-4238