TRADE FACILITATION AND BORDER AGENCY

COOPERATION: CASE OF TURKEY

Ankara, 20161

OUTLINE

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1- INTERNATIONAL LEGAL INSTRUMENTS

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INTERNATIONAL LEGAL INSTRUMENTS

• WCO SAFE Framework of Standards (in 2005, Turkey provided the letter of intent to the Secretariat)

• International Convention on the Simplification and Harmonization of Customs Procedures(Kyoto Convention) as amended

• TIR Convention (signed in 1975)

• Customs Convention on the ATA Carnet for the Temporary Admission of Goods (ATA Convention)

• International Convention on Mutual Administrative Assistance for the Prevention, Investigation and Repression ofCustoms Offences (Nairobi Convention)

• WTO Trade Facilitation Agreement (on 16 March 2016, we presented the instrument of acceptance to WTO Secretariat)

• International Convention on the Harmonized Commodity Description and Coding System

• United Nations European Economic Commission (UNECE) 1982 International Convention on the Harmonization ofFrontier Controls of Goods (in force in Turkey in 2005)

• EU Customs Legislation (648/2005)

• Conventions on the Common Transit procedure and on the simplification of formalities in trade in goods (in force in

Turkey in 1 December 2012) (since then, New Computerised Transit System has been used)

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INTERNATIONAL LEGAL INSTRUMENTS

BILATERAL AND MULTILATERAL AGREEMENTS

«Agreements on Co-Operation and Mutual Assistance in Customs Matters» with OIC Countries:

Afghanistan, Pakistan, Kyrgyzstan, Bangladesh, Algeria, Morocco, Libya, Tunus, Iran, Saudi Arabia, Albania, Palestine, Kazakhstan, Kuwait, and Turkmenistan

NOT WITH Malaysia and Indonesia

• Customs Administrations of Turkey, Turkmenistan, Azerbaijan project to sign aMemorandum of Understanding to Establish a Joint Consultative Committee onCustoms Procedures on Border Crossing Points.

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• e-TIR Pilot Project with Iran

Aim: computerization of TIR & to reduce reliance on paper carnets

1st Pilot Project: ever implemented in the scope of Electronic TIR Customs Transit System (eTIR)

1st phase completed

Testing C2B data

Second phase (as of 02.09.2016): planning to test multiple loading-unloading transports, partialtransports and transit transports

2- BAC ACTIVITIES ACROSS OIC REGIONS AND COUNTRIES

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• Islamabad-Tehran-Istanbul (ITI) Coridor

to contribute to the sustainable development and poverty reduction through enhancement of transittrade among the enroute Member States

Using TIR along the Corridor

8th Ministerial Meeting on Transport and Communications of Economic Cooperation Organization (ECO)(Ashgabat, 28-29 June 2011)

Organising an open-ended High-Level Working Group (HLWG)

Thanks to Pakistan becoming a Contracting Party to TIR Convention on 21 January 2016,Much easier for ITI Project to serve as a trade facilitation instrument among all the respective enroute

countries.

2- BAC ACTIVITIES ACROSS OIC REGIONS AND COUNTRIES

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• Silk Road Customs Initiative and Caravanserai Project

to revitalize ancient Silk Road, turn it into a preferable route

to increase the trade and transportation volume between Europe and China and among the countries onthis route through harmonization, facilitation and acceleration of border crossing procedures amongSilk Road Countries.

Launched in 2008

Six Forums organised until now;

7th Forum will be hosted by Kazakhistan in November

The “Caravanserai Project” launched in 2009

implemented as a pilot project in 2012

2- BAC ACTIVITIES ACROSS OIC REGIONS AND COUNTRIES

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• Bilateral Cooperation: Iran, Kyrgyzstan, Kazakhstan, Afganistan and Iraq

Iran, Kazakhstan & Kyrgyzstanmainly on data exchange, general customs procedures and intelligence and customs control to fight against smuggling

Afganistan on training matters with the Afghan Customs, especially about the implementation of TIR system and general Customs procedures and Consumer Protection in Turkey

Iraq local authorities of both countries in Habur - İbrahim Khalil Border Crossing Point realize regular meeting to discuss problems and find solutions at the local level if possible.

2- BAC ACTIVITIES ACROSS OIC REGIONS AND COUNTRIES

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3- WTO TRADE FACILITATION AGREEMENTTFA Article 8: Border Agency Cooperation

1- ‘…authorities and agencies responsible for border controls and procedures cooperate with one another and coordinate their activities in order to facilitate trade.’

2- ‘…cooperate on mutually agreed terms with other Members with whom it shares a common border with a view to coordinating procedures at border crossings to facilitate cross-border trade.

Such cooperation and coordination may include, alignment of working days and hours, alignment of procedures and formalities, development and sharing of common facilities, joint controls and establishment of one stop border post control.’

TFA Article 10: Formalities Connected with Importation, Exportation and Transit

• Single Window

• Common Border Procedures and Uniform Documentation Requirements

TFA Article 12: Customs Cooperation

• Exchange of Information

• Verification

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MEMBERS of both OIC and WTO Non - WTO Members

Hashemite Kingdom of Jordan* Sultanate of Oman* Republic of Djibouti Republic of Azerbaijan

Islamic Republic of Afghanistan Republic of Gabon* Kingdom of Saudi Arabia* Republic of Uzbekistan

Republic of Albania* The Islamic Republic of The

Gambia

Republic of Senegal* Islamic Republic of Iran

State of The United Arab

Emirates*

Republic of Guyana* Republic of Suriname* Turkmenistan

Republic of Indonesia* Republic of Guinea Republic of Sierra Leone People’s Democratic Republic of

Algeria

Republic of Uganda* Republic of Guinea-Bissau Islamic Republic of Mauritania Republic of The Sudan

Islamic Republic of Pakistan* Kyrgyz Republic* Republic of Mozambique Syrian Arab Republic

Kingdom of Bahrain* State of Qatar* Republic of Niger Republic of Somalia

Brunei-Darussalam* Republic of Kazakhstan* Federal Republic of Nigeria* Republic of Iraq

People’s Republic of Bangladesh Republic of Cameroon* Republic of Yemen State of Palestine

Republic of Benin Republic of Cote D'ivoire* Republic of Togo Union of The Comoros

Burkina-Faso State of Kuwait* Republic of Tunisia* Republic of Lebanon

Republic of Tajikistan* Republic of Maldives Arab Republic of Egypt* Libya

Republic of Turkey* Republic of Mali Kingdom of Morocco*

Republic of Chad Malaysia*

44 of 57 OIC members are also a member to the WTO

WORLD TRADE ORGANIZATION

TRADE FACILITATION AGREEMENT

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15 of 44 OIC Members ratified the ATF.

Malaysia (26 May 2015)

Nigeria (6 August 2015)

Togo (1 October 2015)

Pakistan (27 October 2015)

Guyana (30 November 2015)

Brunei (17 December 2015)

Mali (20 January 2016)

Turkey (16 March 2016)

United Arab Emirates (18 April 2016)

Albania (10 May 2016)

Kazakhstan (26 May 2016)

The Kingdom of Saudi Arabia (28 July 2016)

Senegal (30 August 2016)

The Kingdom of Bahrain (23 September 2016)

Bangladesh (27 September 2016)

27 of those 44 OIC members notified Category A commitments

Hashemite Kingdom of Jordan Sultanate of Oman Kingdom of Saudi Arabia

Republic of Albania Republic of Gabon Republic of Senegal

State of The United Arab Emirates Republic of Guyana Republic of Suriname

Republic of Indonesia Kyrgyz Republic Federal Republic of Nigeria

Republic of Uganda State of Qatar Republic of Tunisia

Islamic Republic of Pakistan Republic of Kazakhstan Arab Republic of Egypt

Kingdom of Bahrain Republic of Cameroon Kingdom of Morocco

Brunei-Darussalam Republic of Cote D'ivoire Malaysia

Republic of Tajikistan State of Kuwait Republic of Turkey

ANALYSIS OF CATEGORIZATION OF RELATED ARTICLES

Only 13 of 27 countries notified Article 8 – Border Agency Cooperation under Category A.

Albania, United Arab Emirates, Bahrain, Brunei, Guyana (8.1 only), Jordan, Kazakhstan, Morocco, Malaysia, Qatar, Saudi Arabia, Tajikistan (8.1 only), Turkey

Only 4 of them notified Article 10.4 – Single Window under Category A.

Malaysia, Qatar, Senegal, Turkey

Only 13 of them notified Article 12 – Customs Cooperation under Category A.

Albania, United Arab Emirates, Bahrain, Brunei, Guyana, Jordan, Morocco, Malaysia, Qatar, Saudi Arabia, Senegal, Tunisia, Turkey

Only 4 of them notified Article 7.7 – AEO under Category A. Morocco, Malaysia, Saudi Arabia, Turkey

21 of them notified Article 10.7 - Common Border Procedures and Uniform Documentation Requirementsunder Category A.

Albania, UAE, Brunei, Côte D‘Ivoire, Egypt, Guyana (paragraphs 1 and 2 (a)-(c) only), Jordan, Kazakhstan, Kuwait, Morocco, Malaysia, Nigeria, Oman, Pakistan (paragraph 1), Qatar, Saudi Arabia, Senegal, Suriname, Tajikistan, Tunisia, Turkey,

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NATIONAL COMMITTEE ON TRADE FACILITATION

WTO TRADE FACILITATION AGREEMENTArt. 23/2

DRAFT CIRCULAR OF PRIME MINISTRY ESTABLISHING

BOARD OF TRADE FACILITATION IN TURKEY

Objectives

Overseeing implementation of Trade Facilitation Agreement in the Turkish Customs Area,

Coordinating implementation procedures among related government agencies,

Being a platform for public-private sector partnership in the area of Trade Facilitation

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BOARD OF TRADE FACILITATION OF REPUBLIC OF TURKEY

Members of the Board

Co-Chairs

Ministry of Customs and Trade

Ministry of Economy

Members

Ministry of Science, Industry and Technology Ministry of Environment and Urbanization Ministry of Foreign Affairs Ministry of Economy Ministry of Food, Agriculture and Livestock Ministry of Customs and Trade Ministry of Development Ministry of Health Ministry of Transport, Maritime Affairs and

Communications

Turkish Standards Institution Foreign Economic Relations Board Small and Medium Sized Industry Development Organization Turkish Exporters Assembly The Union of Chambers and Commodity Exchanges of Turkey International Transporters’ Association Association of International Forwarding and Logistics Service

Providers The Banks Association of Turkey Associations of Customs Consultancy

Structure of the Board

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BOARD OF TRADE FACILITATION OF REPUBLIC OF TURKEY

Board of Trade Facilitation

• Tasked with agency coordination and establishing a trade facilitation strategy.

Technical Committee• Supporting the technical work being done within Board.

Lojistic and technical support

Secretariat

(DG of European Union andExternal Relations)

How Board will help CBM Activities?

A Platform for gathering all stakeholders responsible for border management activities regarding trade,

Issuing recommendations for all areas and activities within trade facilitation,

Executing technical work in the problematic areas within border crossing and customs procedures by including all government agencies and private sector associations.

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BOARD OF TRADE FACILITATION OF REPUBLIC OF TURKEY

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The objective of BAC system to facilitate trade and the clearance of travelers at thesame time ensuring secure borders

Therefore, BAC’s main objective reducing the number of agencies at the border.

BAC;

can provide substantial benefits to both border agencies and the private sector

by streamlining and harmonizing procedures, border agencies can substantially optimizethe use of their resources and manage the border effectively and efficiently

Fewer interventions equal less time spent at the border which equates into cheapertransport costs

International standards and conventions regarding Border Agency Cooperation should be taken intoaccount as references for improving domestic legislation.

A comprehensive Strategy and Action Plan should be developed-updated taking the needs of tradingcommunity into account.

4- CONCLUSION AND THE WAY FORWARD

THANK YOU

Ankara, 201618

Ms. Nagehan ÖZKAN TURUNÇ, Assistant EU Expert

Mr. Hakkı GÜRKAN, Assistant EU Expert

CONTACT:Dumlupınar Bulvarı No:151 Eskişehir Yolu 9. Km.06530 /ANKARA Phone: 0312 449 27 30Fax: 0312 449 28 82