Jan.Hoffmann@UNCTAD.org

Geneva, May 2009

Trade Facilitation: Trade Facilitation: An IntroductionAn Introduction

• Scope of Trade facilitation

• Traders’ main concerns

• Key areas of work

Trade Facilitation: An Introduction

• Scope of Trade facilitation

• Traders’ main concerns

• Key areas of work

Trade Facilitation: An Introduction

TRADE FACILITATION

Process of eliminating all unnecessary elements and duplications in formalities, processes and procedures

Simplification Harmonisation

Alignment of national procedures, operations and documents with international conventions, standards and practices.

Standardisation

Process of developing internationally agreed formats for practices and procedures, documents and information.

TRADE FACILITATION

Standardisation

Process of developing internationally agreed formats for practices and procedures, documents and information.

International rules and standardsInternational rules and standards

• IMO

• ISO

• UN-CEFACT

• WCO

• WTO

UN Lay-out Key(UNECE Rec.#1)

TRADE FACILITATION

Process of eliminating all unnecessary elements and duplications in formalities, processes and procedures

Simplification Harmonisation

Alignment of national procedures, operations and documents with international conventions, standards and practices.

Standardisation

Process of developing internationally agreed formats for practices and procedures, documents and information.

TRADE FACILITATION

Harmonisation

Alignment of national procedures, operations and documents with international conventions, standards and practices.

TRADE FACILITATION

Process of eliminating all unnecessary elements and duplications in formalities, processes and procedures

Simplification Harmonisation

Alignment of national procedures, operations and documents with international conventions, standards and practices.

Standardisation

Process of developing internationally agreed formats for practices and procedures, documents and information.

TRADE FACILITATION

Process of eliminating all unnecessary elements and duplications in formalities, processes and procedures

Simplification

TRADE FACILITATION

Process of eliminating all unnecessary elements and duplications in formalities, processes and procedures

Simplification Harmonisation

Alignment of national procedures, operations and documents with international conventions, standards and practices.

Standardisation

Process of developing internationally agreed formats for practices and procedures, documents and information.

• Scope of Trade facilitation

• Traders main concerns

• Key areas of work

Trade Facilitation: An Introduction

GOODS

PAYMENT

The Trade Transaction

S BINFORMATION

ManufacturerSupplier RetailersWholesalers Customer

Pro

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ct

Co

mp

any

A

Co

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any

B

What do traders want ?What do traders want ?• Simple and smooth processing of

formalities• Means to allow goods to proceed promptly

to their final destination. No longer itineraries, no unpacking, no delays

• A single control point for all public services• Standard forms, assembled into a ‘single

bunch of documents’, compatible with trade documents and transport contracts

• Predictable and transparent rules and procedures

Arrival Notice

Letter of InstructionInvoice, PO

Importer’s Bank

Ocean Carrier

Customs House Broker

Line of CreditProforma Invoice

Shipping & funding detail

Cargo Status

Vessel Booking Request

CargoStatus

Shipping & Funding Detail

Exporter’s Bank

Importer Exporter

Vessel Booking Confirmation

Bill of Lading

Rated Bill of Lading

Dock Receipt

Freight Forwarder / NVOCC

Purchase Order

LCConfirmation

AES

Dock receipt

Pick-up & Delivery Order

Vessel Manifest

Dock receipt

Release/Approval

Demurrage guarantee & payment

Inland Carrier

Manifest

Pick-up & Delivery Order

Importer Notice

Converted VesselManifest

Customs (Export)Port

Customs ( Import )

Original B/L, Invoice, PO, Packing List

Inland Carrier

Marine Insurance Company

Fund Transfer

Confirmed Line of Credit

Release/HoldNotice

Purchase Exportation Importation

ImportTerminalOperator

Proforma Invoice

Export Declaration

Export Declaration

Bill of lading, Documentation

Import Docs

Export Terminal Operator

• 20 actors;• > 200 data

elements;• Manual procedures;• Multiple data

systems;• > 30 documents or

messages.

Data exchangeData exchangein International Tradein International Trade

Too many documents…Too many documents…• Enquiry• Order• Despatch advice• Collection order• Payment order• Documentary credit• Forwarding instructions• Forwarder's invoice• Goods receipt• Air waybill• Road consignment note• Rail consignment note• Bill of lading

• Freight invoice• Cargo manifest• Export licence• Exchange control doc.• Phytosanitary certificate• Veterinary certificate• Certificate of origin• Consular invoice• Dangerous goods

declaration• Import licence• Customs delivery note• TIR carnet

PRE-ARRIVAL & ARRIVAL INFORMATIONPre-Arrival• Vessel’s characteristics or ship’s particulars, kind and tonnage of cargo, vessel’s ETA and master’s requests

must be notified to the Harbour Master Department every 48hrs, 24hrs or at least six hours prior to vessel’s arrival at the port’s anchorage areas.

Arrival• The component of the committee that performs vessel clearance consists of 10 members from Harbour Master

Department, Department of Customs and Excise, Immigration Police, National Shipping Agency and Broker, and Quarantine Authorities. Ten copies of cargo manifest are required to be provided to the Department of Customs and Excise.

• Entry permit (arranged by official shipping agency), • Last port clearance certificate, • 15 lists of last port of call (at least 10 last ports), • 5 declarations of vessel’s arrival, • 10 import cargo manifests, • 3 bills of loading, • 2 transit cargo manifests, • 7 crew lists, • 7 passenger lists, • 3 lists of vessel’s provisions, • 3 lists of crew personal effects, • 1 copy of health declaration certificate, • 1 copy of vaccination list, • 1 copy of drugs and narcotic list, • 1 copy of fresh water origin, • 3 cargo plans, • 1 copy of valid original ship’s certificates (to be collected only on the first call of the year of each ship), • Certificate of vessel's registration,

– International load line certificate, – International tonnage certificate, – International oil pollution prevention certificate, – Cargo vessel safety equipment certificate, – Cargo vessel safety construction certificate, – Cargo vessel safety radio certificate, – Minimum safe manning certificate.

• Exemption Certificate (to be inspected by quarantine officers ).

Days to complete each stage of importingDays to complete each stage of importing

Region Pre-arrival documents

Port and terminal handling

Customs and

inspections

Inland transport to warehouse Total time

OECD high income 8 2 2 2 14

East Asia & Pacific 18 3 4 3 28

Latin America & Caribbean 24 4 5 3 36

Middle East & North Africa 25 5 9 4 43

Europe & Central Asia 25 4 7 7 43

South Asia 24 6 7 10 47

Sub-Saharan Africa 33 8 10 9 59

World 23 5 6 5 40

Source: World Bank Doing business 2006Source: World Bank Doing business 2006

Region

% of cargo inspected (import)

OECD 5

East Europe 18

East Asia 31

Latin America 51

Middle East 63

Africa 67

South Asia 69

Source: World Bank Doing Business 2006Source: World Bank Doing Business 2006

InspectionsInspections

• Scope of Trade facilitation

• Traders main concerns

• Key areas of work

Trade Facilitation: An Introduction

Functional linkagesFunctional linkages

CustomsCustomsAutomationAutomation

CustomsCustomsTime ReleaseTime Release

RiskRiskAssessmentAssessment

SingleSingleWindowWindow

Post-auditPost-auditControlsControls

AdaptedAdaptedH.S.H.S.

StandardizedStandardizeddocumentationdocumentation

SequencingSequencing

IDLinkages between

Trade Facilitation measures

Q2 05

27.3

1 Standardization and simplification

2Introduction of single administrativedocument (SAD)

3Computerization and automation of Customsprocedures

4Risk management, pre-arrival processing andpost-clearance audit

5Customs-related judicial or administrativemeasures

Q4 04

13.22.1 30.116.1 10.46.2

Q1 05

20.27.11 3.46.35.12 9.1 27.2 13.3 20.323.1

Cooperation at the Cooperation at the national national levellevel

• Between the government institutions concerned by foreign trade: Finance, Commerce, Transport

• With the private sector in the trading community: importers and exporters

• With service providers: transport operators, banks, insurance companies…

Cooperation at the Cooperation at the internationalinternational levellevel

• Scope of Trade facilitation

• Traders’ main concerns

• Key areas of work

Trade Facilitation: An Introduction

Questions?Questions?