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Trade related aid A reality check. 21 st March 2006. Roderic Lichkus. General information. BRIEF cv Business in SA My role in trade facilitation- Boksburg Group Trade specifically exports an imperative Private sectors involvement This forum and notice. Trade. Expectations
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Trade related aid A reality check 21st March 2006 Roderic Lichkus
General information • BRIEF cv • Business in SA • My role in trade facilitation- Boksburg Group • Trade specifically exports an imperative • Private sectors involvement • This forum and notice
Trade • Expectations • Expediting the movement, release and clearance of goods including in transit. • Technical assistance and support for capacity building. • Effective co operation between authorities. • Transparency, predictability, consistency and consultation. • Actuality • Mistrust • Scepticism • Fraud • Smuggling • Draconian enforcement • Low capacity
Environment • Global • International • Africa regional • COMESA • SADC • Local • RSA • SACU
Supply Chain Management • Government view • Policy- enforcement • Unscrupulous international companies • Business view • Labour view • Industry view • Not always the same • Time • Cost • Infrastructure
Africa • Critical to enhance competitiveness of African economies. • Promote intra Africa trade • Reflected in the: • Bilateral • Sub-regional • Regional agreements
Implications of AID for TRADE • Impact and environment studies • Moral obligations • Objectives • Special interest group’s hidden agendas • Political agendas and trade-offs • Implementation and review programmes • Maintenance, monitoring • Re Engineering and restructuring. • Better planning less changes
Implications for the country • Compliance • Consultative • All the stakeholders and timeously • Protection • Social • Anti-dumping, safeguards • Non tariff barriers • Distortions • Transfer Pricing, multi-nationals • Import parity pricing, knee jerk reaction from locals.
RSA and regional priorities • Reduce high cost of transportation and communication. • Reduce administration • Automation • Risk management • Accreditation • SAD • “One stop shop” “one window” • Use of IDZ and EPZ • Distorting duties on raw materials
Timing • Phased approach • Capacity building • Enhanced and Special Differential Treatment • Beyond longer transition periods • Operations • Flexibility with self assessment • Commitment to long term fully implementation programmes
Political will for simplified border procedures • Support of trade community and improved compliance • Co-operation with other border agencies • Impetus for customs capacity building • Boksburg-type dialogue between trade policy (incl. Geneva), customs and business essential • Project Prisma. How can the professional process benefit
WCO revised Kyoto Convention • Principles for modern customs procedures • Partnership with trade • Transparency and predictability, incl. advance rulings • Use of modern technology • Risk management (better resource allocation) • Specially simplified procedures for authorized traders • Blueprint for customs to • Implement effective and efficient controls; and • Facilitate legitimate trade • Complementary to the WTO rules • Implementation tools for the WTO rules
Self Assessment Checklists • Tertiary education. • Secondments • More comprehensive diagnostic tools available • Framework of Standards • Harmonizing advance electronic manifest • Using a common risk management approach • Using non-intrusive detection equipment to effect examinations • Leading to the accrual of benefits to nations, customs and business • Customs-to-customs pillar • Custom-to-business pillar
Evolution of customs Revenue Collection of import taxes(duties & excise) Protection of Economic Interests (domestic industry) Protection of Society <health, safety> (drug trafficking, firearms, environment, counterfeit etc.) Customs function Economic Development <trade, investment> (trade facilitation) Security <terrorism> (shifting focus to entire supply chain)
SO • Crucial for implementing global standards • Customs Capacity Building Strategy • Diagnostic and integrity tools installed • Regional approach • A moral Responsibility to • Tax payer • Recipient country or region • WTO members at large
Combining strengths in global awareness & presence with next-generation trade applications. Capable of addressing revenue compliance, trade facilitation and government administration restructuring issues in any country in the world. Comprehensive advisory capabilities and focused data collection products and services. Transferring skills and tools directly to the client organisation. On-going value added services for governments and industry.