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Symposium Symposium on Practical Experience of on Practical Experience of Implementing Trade Facilitation Reforms, Implementing Trade Facilitation Reforms,
Including Their Costs and BenefitsIncluding Their Costs and Benefits
November 8-9, 2011November 8-9, 2011
World Bank Gap Assessment Study
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Gerard McLindenCustoms and Border Management Practice Group
International Trade DepartmentThe World Bank
Introduction Introduction Assessment based on comparing the
systems and procedures currently employed in three member countries against the measures outlined in TN/TF/W/165/Rev.11
Drew on WB experience in developing Customs and Border Management reform programs (120 projects over last 20 years)
Builds on previous study undertaken by WB, WCO and IMF (November 2006)
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Purpose Purpose The WTO Trade Facilitation Gap Assessment was
designed to:
assess the gap between existing systems and procedures in place and the measures likely to be included in a new WTO Trade Facilitation Agreement;
identify any technical assistance and capacity building support needed to close the gap and ensure sustained and effective implementation and long term operation; and
prepare approximate cost estimates and indicative implementation timelines.
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Assumptions and Assumptions and QualificationsQualifications
Focus beyond simple compliance to effective
implementation to deliver trade facilitation
benefits for governments and traders
Short missions (8 - 10 days in each country)
Covered needs of Customs and other border
management agencies
Timetables based on probable rather than
possible implementation timelines
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Assumptions and Assumptions and QualificationsQualifications
Running costs not included as evidence supports
positive resource offsets from TF measures
Cost calculations based on WB project design and
implementation experience
Single Window
◦ Cost estimates based on electronic SW
◦ Connectivity with existing Customs system not
total replacement of ICT infrastructure
◦ B2G not B2B
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Summary of FindingsSummary of Findings
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Country Estimated Cost
Implementation Timeline
Compliant Partially Compliant
Not Compliant
Country A $5.1m - $ 7.95m
1 – 5 years 16 15 5
Country B $ 2.4 m 1 – 3 years 14 11 11
Country C $7.5m – $10.5 m
1 – 5 years 13 20 3
General ObservationsGeneral Observations
No country is starting from scratch – all have reform and modernization plans in place and have made genuine progress
Customs ahead of other government agencies in understanding TF agenda
Much donor support already provided – but mainly to Customs
High level of support for measures at the national level by public and private sector stakeholders …. but ….
All measures in keeping with existing global standards and good practice approaches
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General ObservationsGeneral ObservationsSignificant TA and capacity building support
required in all countries …. but its not the only critical implementation challenge
Sequencing of reform implementation important
Implementation process needs to be managed holistically as many measures are interdependent
Donor support needs to be carefully coordinated based on an agreed comprehensive implementation plan …. Not piecemeal cherry picking of individual measures
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One example of the need for One example of the need for careful sequencing due to careful sequencing due to interdependencies interdependencies
In order to successfully implement Art 10.1 (Review of
formalities and documentation requirements) and
10.2 (Reduction and rationalization of these
requirements) it is first necessary to identify and
collate all requirements. This also needs to be
undertaken to achieve Arts 1.1, 1.2 and 1.3
(Publication and Availability of Information) and would
greatly assist effective implementation of Arts 2.1,
2.2 and 2.3 (Prior publication and consultation).
In order to implement Article 10.4 (Single Window)
Arts 10.1 and 10.2 need to be completed first. 9
One example of sequencing, One example of sequencing, logical task families and logical task families and interdependencies interdependencies
All require strong and effective inter-agency coordination
such as outlined in Art 9 (Border Agency Cooperation).
That in turn requires a sound and fully effective
coordination and governance mechanism as proposed
under Art 14 (National Committee on Trade Facilitation).
Logically, establishing the National
Committee on Trade Facilitation would be a
sensible first step
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•Manifest•Bills of Lading•Sea/AW Bill•Container Plans
•Invoice•Packing List•Declaration•Delivery Note
Storage
Air, Sea, LandInternational
Transport Customs Port
Pay TaxesClear CustomsRelease Goods
Ship’sDocuments
CertificatesOf Origin
Chamber ofCommerce
ForeignChambersCommerce
OverseasEmbassies
Post/Courier
“LegalInvoices”
DOMESTICSUPPLY CHAIN
•Raw Materials•Packaging•Transport•Storage
•Quotations•P.O.s•Delivery Notes•Con. Notes•Invoices•Statements
•Payments•Remittance Advice
IMPORTER
MANUFACTURER
EXPORTERFOREIGNBUYER
•Licenses•Certificates•Government Approvals
•Certificates Of Origin•Form A•EUR.1
GovernmentDepartments& PIAs
FinanceMinistry
Port
•Invoice•Packing List•Declaration•Delivery Note
Pay TaxesClear CustomsRelease to Port
Port Processes•Internal Transport•Storage•Container Handling•Loading
Port Customs
ReceiveGoods
Bank
•P.O.•Contract Terms•Delivery Instructions•L.O.C.
PayBank
•L.O.C.•Packing List•Invoice LOC Courier
LOC Approval
ShippingDocuments
Book/Confirm Transport
•Licenses•Certificates•Government Approvals
Customs
A simplified map of the international trade process A simplified map of the international trade process
Necessary Preconditions for a Necessary Preconditions for a National Committee on Trade National Committee on Trade FacilitationFacilitation• Clear and unambiguous commitment
translated into a concrete mandate • Agreed leadership, participation and
governance model• Clearly identified:
o Roles and responsibilitieso Obligationso Performance measures and accountabilitieso Budget/resourceso Dispute resolution mechanism
• Realistic future strategic vision – owned by all and translated into a comprehensive implementation plan
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What next ?What next ?• WB and partners can undertake additional
gap assessments but this exercise makes more sense when undertaken as part of the development of a comprehensive implementation strategy
• Not a minor undertaking – WB projects take two years to design and develop
• Multiple counterpart nature of proposed measures adds enormously to complexity
• A coordinated effort from the development community will be essential to ensure technical assistance and capacity building resources are used most effectively
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