Dissemination Workshop, Puma Hotel December 13, 2012 Ulaanbaatar, Mongolia

1. Harmonizing Border Port Development as Gateways to Global Markets for Mongolia & the People’s Republic of China • Implementation of Cross Border Management Organizations: • Zamyn-Uud, Dornogobi-Erlian, Inner Mongolia Autonomous Region • Gashin Sukhait, Omnigobi-Ganqimaodao, Inner Mongolia Aut. Region • Shivee Huren, Omnigobi-Ceke, Inner Mongolia Autonomous Region Dissemination Workshop, Puma Hotel December 13, 2012 Ulaanbaatar, Mongolia G-0204 MON Southeast Gobi Urban & Border Town Development Project Cross Border Institution Development Program for MON-PRC Regional Cooperation Robert L. Wallack, Trade Logistics & Border Development, United States of America Odnoo L., National Consultant, Mongolia AECOM, U.S.A.

2. ZAMYN-UUD

3. Actionable Statements • “Zamyn-Uud is for imported machines and spare parts…delays are frequent…improved processes would greatly assist as would access to bonded yards & covered storage & would enable imports destined for Gobi region to be stored in ZU.”---Multinational Importer • “At the beginning it was difficult with the border agencies…but we had the right people and regular meetings and the agencies and businesses saw that they benefitted…”---International Best Practice, N. America • “…ruled by the daughters of Genghis Khan, the Mongols created a new world system based on a faster flow of goods and information than had been previously practical.”---Jack Weatherford

4. Results of Cooperation New Roads in Zamyn Uud North American Bison

5. Contents • I. Background to Cross Border Harmonization • II. International Best Practices • III. Concepts & Cases • IV. Cross Border Trade for Global Markets • V. Border Management: Internal & Bi-National • VI. Border Counseling Meeting of Zamyn Uud-Erlian

6. I. Background to Harmonization • Revised Kyoto Convention: MON & PRC for Simplification & Harmonization of Customs • Implementation: World Trade Organization & World Customs Organization • RKC/WTO/WCO ADB CAREC • Border Counseling Meeting Continuous Improvements for Border Management: Cross Border Trade & Security

7. II. International Best PracticesCity-Twinning Steering Group: Administrations from both towns-Decision Making Central Governments has limited function Small and Medium- Sized Businesses active Goal of Twinning: Improve welfare of citizens of both towns and facilitate border crossing Achievments: • Russia-Finish Key Industrial Park (KIEP)-1999 • Improvements in: waste-water treatment systems, energy, tourism infrastructure, improved municipal government The City Twins Association (CTA)-2006 & City Twins Cooperation Network project-2004-06—Finland-Russia longest in EU, 1324 km Imatra, Finland—Svetogorsk, Russia: Rail and Road

8. Ajo Border Residence • Lead internal border agency: • U.S. Government Services Administration • (GSA) cooperates and coordinates with • U.S. Customs and Border Protection (CBP) for constructing residences for officers at the U.S.-Mexico Port of Entry. • Local offices submit requests with data to state for national approvals • Ajo, Arizona Housing Development Project for CBP officers is 40 miles north of the U.S.-Mexico border and Lukeville POE.

9. El Uno and Grasslands Chihuahua, Mexico—60 miles Mexico-U.S.-Nature Conservancy Ecoreserve near drug war zone Reserva Ecologica El Uno 3 R’s of grassland restoration: resting it, replanting, researching CB cooperation: Bison in Mexico Not seen grazing since 1832 Educational center: Ranchers learn new, sustainable grazing methods

10. III. Concepts & Cases Supply Chain Management Containerization-Intermodalism Supply Chain Strategy & Management • Product Flows, Information Flows, Financial Flows: Customers • Inventory Management: High Turnover tied to Sales • Cross Border: On Time Deliveries=Revenues(business/GOM) • Partnership between Border Agencies & Private Enterprise: WCO-mutual recognition agreements: US, Jordan, Australia, Sweden Containerization & Intermodalism • Overloaded truckscontainers: safe, secure, customer service • Consolidationtransport economics lower unit costs • Capacity utilization of Full Container: “weigh out” “cube out” -combine shipments into one container of heavy & light cargo • Benefits: Easier transloading, storage, congestion, environment

11. INCOTERMS & Border Management College INCOTERMS (International Commercial Terms, International Chamber Of Commerce) • Three letter standard terms of buyer & seller in international contracts • Shipment terms as important as product price • Insurance, duty payments, broker fees, risks Border Management Staff College, Dushanbe, Tajikistan • Sr. Border Officials • OSCE international standards in border management • Workshops on inter-agency cooperation, best practices, exchange of information CAREC Federation of Carrier & Forwarder Associations (CFCFA) • Supply Chain Curricula • Centers of Excellence

13. Slovakia Land Locked in Europe • CB transport of natural resources • Organization for Security & Cooperation in Europe (OSCE): • Slovakia & Mongolia

14. IV. CB Trade for Global Markets Trade Growth Calls for Border Counseling Meeting to be a Forum to Assist in Resolving Issues: Infrastructure, Trade Facilitation, Policy & Environmental Source: National Statistics Office Mongolia, Bulletin, External Trade, 2009 & 2012, USD CAGR: Compound Annual Growth Rate

15. V. Border Management: Internal

16. PR China: Internal Border Management Chairman of All PRC General Customs Administration & Chairman of PRC Border Administration Vice Chairman of China Trade Bureau & Chairman of Border Administration Office Inner Mongolia Border Administration Office Erlian city People’s Government Chairman of Erlian Border Administration Office Border Administration Offices for Neighboring: Russia, Kazakhstan, Mongolia Vice Chair Border-Road Vice Chair for Railway Vice Chair Internal Affairs Division of Road Transport: Head 1-Inspection; 1-Coordination Officer;4-Services Officer Division of Railway: Head 1-Inspection; 1-Coordination Officer; 4-Services Officer Division of Internal Affairs: 1-Head;4-Services Officers;3-Financial;10-Border Fee Collectors Total Employees: 34. Expanded organization for Erlian airport. Border Administration main function is monitor operations of inspection agencies and other border agencies and to coordinate and harmonize their activities

17. Border Management: Bi-National

18. Border Management: Bi-National Gashin Sukhait-Ganqimaodao & Shivee Huren-Ceke How to Organize? Permanent Representative? -Unique cross border trade characteristics • Examine trade data • Identify government & business officials • Review of GOM Policy on Border Management/Development & Master Plans • Extended Border Counseling Meeting?

19. VI. Border Counseling Meeting • Since 2008: civil/securitytrade & transport • Appointment of Cross Border Coordinator(s) • Joint Website: www.elsw.gov.cn • Suggestions: E-mail lists, Annual Schedule, Agenda before meetings, remote meetings • Agenda: Policy/Institutional; Trade & Urban Infrastructure (SEW); Trade Facilitation & Operations; Environment; Performance

20. Border Counseling Meeting • Record of Achievements to Prove Value of BCM to all stakeholders (border agencies, businesses, investors, donor organizations Continuously Improving & Harmonizing CB • Asian Development Bank & CAREC • Trade & Transport Facilitation Program • Federation of Carrier & Forwarder Assoc. • Sources to Discuss BCM Budget Issues www.carecinstitute.orgwww.wcog.org/Borders

21. Border Counseling Meeting CAREC 4a & 4b IMTC-North America

22. Questions to Consider • Alignment of Internal BM: PRC & MON • Clarify Gashin Sukhait—Shivee Huren • Appoint BCM Coordinator • Design, Content, Budget Website: www.elsw.gov.cn • Decide on CB Performance Indicators

23. Single Electronic WindowInternal & Bilateral Agreements Source: Internet- Wikipedia

24. Thank You Questions/Answers Robert L. Wallack, Cross Border Development Expert, U.S.A. robert.wallack@rlw-international.com for ADB and AECOM, U.S.A.