TRADE AND TRANSPORT FACILITATION AUDITS TTFA

1. TRADE AND TRANSPORT FACILITATION AUDITSTTFA Jean-François ARVIS & Zeynep ERSEL

2. Objectives of TTFAs • practical approach to problems encountered by exporters and importers. • users’ perspective: based on interviews of participants to trade activities • Diagnostic + remedial actions. • potentially provide the groundwork for cross-cutting projects Trade and Transport Facilitation Audits

3. The focus Effectiveness of procedures and cost of services available to international trade including: • Inland, sea, and air transport costs associated with the movements of products (inputs and outputs) • Procedural and documentary requirements needed to move goods through borders • Quality and range of logistic services and infrastructure • Trade finance and sources of commercial risk • Information exchange and coordination between private and public participants Trade and Transport Facilitation Audits

4. Forwarder/Agent/Broker Multimodal Transport Operator or 3rd party logistics provider Exporter Importer Shipping Line and Ships’ Agents Road Carrier Airline/Airport Express Operator Railway Company Port Authority Key Border Crossing Point Customs (central) Commercial Bank Exchange Control/Central Bank PSI Agency Chambers of Commerce The interviewees Trade and Transport Facilitation Audits

5. The potential measures • Policy reforms (e.g., removal of price interventions/controls, adoption of ‘economic’ pricing etc.) • Regulatory and public sector reforms • Enterprise reform in the area of services • Introduction of modern information and communication technologies related to transport and trade • Key investments in infrastructure that could remove bottlenecks to trade • Additional sources of trade finance and risk mitigationmeasures Trade and Transport Facilitation Audits

6. The Toolkit • John Raven: “Trade and Transport Facilitation – An Audit Methodology”, World Bank, April 2000. • Based on experience of practical application in a variety of Bank lending and project assessments. => EVOLVING METHODOLOGY upon the experience of current audit (FY04) and onward. Trade and Transport Facilitation Audits

7. When to program a TTFA? • Systematic exercise in the context of a Diagnostic of Trade Integration Study (DTIS) for : • Integrated framework countries • IDA landlocked countries • An exercise within the context of a transport or export competitiveness project • Or as a Self-Standing exercise Trade and Transport Facilitation Audits

8. Implementation issues • Very intensive: 40-60 interviews minimum • Needs: • A team of a local and an international consultant • Minimum of 2 weeks in the field for the international consultant (for a « small country ») • Depending on the consultants a Bank staff may need to join the mission • The international expert must have strong understanding of a wide range of topics including: transport, customs, governance, finance, PSD… Trade and Transport Facilitation Audits

9. FY04 TTFA program. • DTIS: Benin , Chad, Laos, Malawi, Mozambique , Tajikistan, Zambia • Export competitiveness: Dominican Republic, Bangladesh Trade and Transport Facilitation Audits

10. Other TTFA related ESW • Previously: « 1st generation »: Caucasus study 2000, Central Asia 2002, Benin and Guinée 2003, EAP study (country reports). • In parallel TTFA = « horizontal » component in larger ESW on trade logistics: e.g. Morocco Trade and Transport Facilitation Audits

11. Resources • Sample TORs • Toolkit • A consultant roster • For now, limited number of consultants given the very specific profiles needed- working to expand the list • Nevertheless diversified (all working languages in the Bank are covered) Trade and Transport Facilitation Audits

12. Contacts • TUTDR: • Marc JUHEL 32392 • PRMTR • Jean-François ARVIS 84842 • Zeynep ERSEL 82502 Trade and Transport Facilitation Audits