training for reform - world bank tab_feb_26.pdf · training for reform development economics...

Training for Reform

Development Economics │Global Indicators

February 26, 2019

Inés Zabalbeitia Múgica

Regulatory Specialist

Doing Busines

Trading across Borders


I. Why does it matter?

II. What does it measure?

III. What are the main findings in DB19?

IV. Good practices

Why does trade facilitation matter?

• Access to international markets: economies of scale

• Economic growth – poverty reduction

• Participation in global supply chains

• Transfer of know-how

• Positive impact of single windows and digitalization on growth and increasing trade flows

Simplification and harmonization of

international trade procedures

• Required for safety and consumer protection but vary in efficiency from economy to economy

Administrative and regulatory trade frameworks



II. What does it measure?


IV. Good practices

What are the case study assumptions?

EXPORT IMPORT

Product

Comparative advantage of each

economy as determined by data on value

of exports

HS 8708: auto parts for all economies

Shipment 15 metric tons shipment 15 metric tons containerized shipment

PartnerThe main trading partner of the economy for the chosen product as determined by

data on value of exports and imports

Route and mode

of transportBased on trade patterns of the selected product (maritime, land).

Two case studies with particular assumptions

What goes into the Trading across Borders ranking?

Time to import (hours)

(1) Documentary compliance

(2) Border compliance

Time to export (hours)



Cost to export (USD)



Cost to import (USD)



Exporting the product of

comparative advantage

Importing auto parts

Rankings are based on the scores for eight indicators

Note: The time and cost for domestic transport and

the number of documents to export and import are

measured but do not count for the rankings.

What goes into Border Compliance?

Customs procedures

• Customs clearance and inspections;

• Customs brokers’ charges and customs administrative fees.

Non-Customs procedures

• Inspections by other agencies, including phytosanitary and technical inspections.

Port/Border procedures

• Cut-off time;

• Time to queue at the entrance of the port/border;

• Handling at the port/border.

• Loading/unloading

• Storage

What goes into Documentary Compliance?

• Covers all documents required by law and in practice,

including electronic submission.

• The exact number of documents is not used to

compute the ranking.

• Obtaining, preparing and submitting documents

during transport, clearance, inspections and

port/border handling in the origin economy.

• Obtaining, preparing and submitting documents

required by the destination economy and/or any

transit economy.

What goes into Domestic Transport?

For exports:

✓ From a warehouse in the main business city of the economy to the most

widely used border for traders located in the main business city of the

economy

✓ Loading the shipment at the warehouse

✓ Road congestion and traffic

✓ Police stops and tolls

For imports:

✓ From the most widely used border for traders located in the main business

city of the economy, to a warehouse in the main business city of the

economy.

✓ Unloading the shipment at the warehouse

✓ Road congestion and traffic

✓ Police stops and tolls

The indicator measures the time and cost associated with domestic

transport. However, this dimension is not used to compute the ranking.

Who are the Trading across Borders contributors?

Contributors

Ship and customs broker

associations

Freight forwarders

Transportation and logistics companies

International trade

businessmen

Ministries of transportation and commerce



II. What does it measure – and what does it not?


IV. Good practices

17. Estonia 99.92

18. Sweden 98.04

19. Lithuania 97.83

20. San Marino 97.48

21. Bulgaria 97.41

22. Norway 96.97

23. Serbia 96.64

24. Albania 96.29

25. Belarus 96.21

26. Latvia 95.26

27. Hong Kong SAR, China 95.04

28. Bhutan 94.25

29. Macedonia, FYR 93.87

30. United Kingdom 93.76

31. Greece 93.72

32. Eswatini 92.92

Where is it easy to trade in 2017/18?

11

Top performers Score

Source: Doing Business 2019.

1. Denmark 100.00

1. Austria 100.00

1. Spain 100.00

1. France 100.00

1. Poland 100.00

1. Portugal 100.00

1. Czech Republic 100.00

1. Netherlands 100.00

1. Slovenia 100.00

1. Slovak Republic 100.00

1. Belgium 100.00

1. Italy 100.00

1. Romania 100.00

1. Hungary 100.00

1. Croatia 100.00

1. Luxembourg 100.00

Top performers Score

Reforms making it easier to trade across borders in 2017/18

Feature Economies Some highlightsIntroduced or

improved electronic

submission and

processing of

documents for

exports

Angola; Azerbaijan; China; Congo,

Dem. Rep.; India; Iran, Islamic Rep.;

Kazakhstan; Kosovo; Lesotho;

Lithuania; Malaysia; Morocco;

Mozambique; Nigeria; Russian

Federation; Rwanda; Saudi Arabia;

Thailand; Turkey; Uganda; Uzbekistan

Kazakhstan made trading across borders easier by introducing an electronic customs

declaration system, ASTANA-1 IS, and reducing customs administrative fees.

Uganda fully implemented the Centralized Document Processing Centre, an electronic

processing platform that centralizes all documentary checks. Traders in Uganda also

began using the Uganda Electronic Single Window, which allows for electronic

submission of documents as well as for the exchange of information between trade

agencies.

Introduced or

improved electronic

submission and

processing of

documents for

imports

Angola; Azerbaijan; Bahrain; Brazil;

China; Congo, Dem. Rep.; Ghana;

India; Iran, Islamic Rep.; Lesotho;

Malaysia; Morocco; Mozambique;

Nigeria; Paraguay; Russian

Federation; Saudi Arabia; Turkey;

Uganda

Lesotho made importing faster by implementing the Automated System for Customs

Data (ASYCUDA), reducing documentary compliance time for imports by two hours.

Paraguay introduced the legal validity of the electronic signature for trade operations

Strengthened border

infrastructure for

exports

China; El Salvador; India; Malaysia;

Morocco; Rwanda; Uganda

El Salvador made exporting easier by introducing an intermediate customs post in

Santa Ana, reducing congestion at the Anguiatú border crossing.

Rwanda reduced border compliance time by having staff from the Rwanda Revenue

Authority and the Tanzania Revenue Authority at the Rusomo one-stop border post,

the result of the implementation of the Single Customs Territory.

Strengthened border

infrastructure for

imports

Bahrain; China; India; Malaysia;

Morocco; Mozambique; Nigeria;

Rwanda; Saudi Arabia; Uganda

Malaysia strengthened infrastructure at Port Klang by opening a second gate with

additional scanners, upgrading the management system, expanding two terminals and

decreasing the cut-off time.

Enhanced customs

administration and

inspections for

exports and imports

Algeria; Azerbaijan; China; Ghana;

Guinea; India; Iran, Islamic Rep.;

Kazakhstan; Kosovo; Kyrgyz

Republic; Lao PDR; Malaysia;

Mauritius; Nigeria; Russian

Federation; Rwanda; Tajikistan;

Turkey; Ukraine

Mauritius made exporting easier by introducing a risk-based management system

which reduced border compliance time by 14 hours.

Ukraine made trading across borders easier by eliminating the verification

requirement on auto-parts.

Kosovo also introduced simplified controls at the border with Albania, reducing the

number of physical examinations during customs clearance.

EastAsia & the

Pacific

37.5%

25%

37.5%

The implementation of electronic systems is the most popular area

of reform in 2017/18


Afrique subsaharienne

13

Latin America

& theCaribbean

33%

67%

Electronic systems

Border infrastructure

Customs administration

OECD high

income

100%

Sub-Saharan

Africa

24%

29%

47%

Middle East & NorthAfrica

33.3%

22.2%

44.5%

Europe& Central

Asia

57%

43%

South Asia

33.3% 33.3%

33.3%

Type of trade reforms as a percentage of all reforms per region in Doing Business 2019

China made trading across borders easier in 2017/18

14

Implementing

a single

window

Enhancing

risk-based

inspections

Increasing

transparency

Encouraging

competition

China made importing and exporting easier by:


As a result, China reduced the time and cost for border compliance and documentary

compliance for both exports and imports. These reforms apply to both Beijing and Shanghai.

Indicator Beijing – Tianjin Port Shanghai – Shanghai Port

Import Border Compliance 69 hours and $375 decrease 24 hours and $455 decrease

Import Documentary Compliance 56 hours and $71 decrease 30 hours and $30 decrease

Export Border Compliance $100 decrease $228 decrease

Export Documentary Compliance 20 hours decrease 7 hours and $20 decrease



II. What does it measure – and what does it not?


IV. Good practices

What are the global good practices?

Electronic submission and processing

Linking agencies through

Single Windows

Upgrading trade logistics infrastructure

Electronically linking all trade actors.

Both at the national (e.g. Korea) and

regional level (e.g. ASEAN).

Electronic systems for exchanging

customs information (e.g. ASYCUDA).

Saves time and money.

Improve efficiency of processes.

Increase trade flows.

What are the global good practices?

Risk-based inspections

Regional cooperation

Sparking competition

Education and communication

Greater competition can lead to lower fees

and higher quality of service.

Border cooperation agreements.

Customs Unions (e.g. European Union).

The ability of trade professionals to benefit

from electronic systems largely depends on

training and communication.

Inspections are often necessary.

However, risk profiles allows inspections to

correspond to the potential risk of consignments.

Doing Business

www.doingbusiness.org


THANK YOU!

training for reform - world bank tab_feb_26.pdf · training for reform development economics...

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