Technical Assistance & Capacity Building in Trade Facilitation

WTO Workshop

10 & 11 May 2001

Julian Oliver, IECC & ICC

IECCThe Global Voice of the Express

IndustryInternational Express Carriers Conference = coalition

of DHL, FedEx, TNT, UPS + regional & national Express associations

• Paradigm: door-to-door international express delivery

• VISION: Free movement of Dox & Goods

• MISSION: promote trade liberalisation

• MANTRA: 6 F’s

fast, faster, fastest, free, freer, freest

What do IECC want?

• Ratification of revised Kyoto convention by 41 out of the 60 contracting countries

• Adoption by all countries of principles for the liberalisation of Air Cargo

• Launch of new broad-based WTO trade round to bind WCO revised Kyoto convention

• Immediate release and clearance of documents and packages by Customs

Express facts and figures

• > 220 countries

• > 750,000 people

• > 1200 aircraft

• > 1350 daily flights

• > 10 million packages cleared each DAY

• > $55 billion revenues in 2000

• > $50 billion paid in duties & taxes

Buoyant Growth Industry

• IECC < 20 years young

• Double-digit volume growth rates

• Boeing: 18% pa growth 1995-2015

• McKinsey forecast that 80% of Mgd goods will cross borders by 2010

• Ecommerce = turbo-charging express

• Express is enabler of global commerce

IECC & Trade Facilitation 10 m. Customs clearances per day

• IECC work via many agencies: APEC, EU, OAS, CIS, ICC, UNCTAD, UNECE, WCO, WTO, UPU, World Bank etc.

• 3 examples:

• Trade Facilitation Audit Methodology

• Project ACCESS in Malaysia

• Shanghai Model Port Project

An Audit Methodology forTrade & Transport Facilitation

• IECC/WB joint venture• To alleviate poverty and gain access to trade• 80% of trade in goods will cross borders• Borders impose complex barriers• WB invests a lot in ports, airports & roads• Investments will not yield full returns unless

there is associated trade facilitation• Romania Customs and Italian shoes

ASEAN Project ACCESS Malaysia

• ASEAN CASTEM agreement 1997

• Asean Customs Clearance & Express Services, ACCESS, 1999

• Partnership to promote global trade via world-class standards Customs Vision 2020

• 20 years is a long time but not unrealistic for Myanmar, Laos, Cambodia & Vietnam

Inbound clearance procedures Consignment Categorisation and Regulations Pre-flight Clearance processes Risk Management and Selectivity processes Automation Training Transparency Co-operation Integrity Reduction of Resources and Costs Knowledge and Skill Improvement of staff Reduction of Paperwork and Controls Revenue Generation• Elimination of Contraband and Illegitimate Trade

Malaysia as a pilot

• ASEAN includes world’s richest to poorest

• Malaysian Customs are current pilot

• Malaysian revenues up and fraud down

• All 10 countries DGs of Customs attend

• Peer group learning and implicit pressure

• ASEAN part of APEC

APECShanghai Model Port Project

• 2001 APEC Leader Conference in Shanghai• In 1999 GM, Ford, FedEx, Microsoft, Proctor &

Gamble, Applied Materials, Mattel, Oracle, GE, HP, UPS, DHL, TNT signed-up to JV project

• 12 APEC Sub-Committee Customs Procedures collective action plan items as the core for :- 1) Establishing an Express Handling Centre

2) Advanced Training and

3) IT systems upgrade

Key areas for improvement in Shanghai Model Port Project

Implement more flexible hours for customs clearance. Automate clearance for all express consignments by using Customs

Clearance EDI system. Ensure trade and tariff policies are carried out consistently in all regional

Chinese Customs Bureau Improve communications between Express Carriers and Customs.

• Implement the principles of the WCO Immediate Release Guidelines and the Kyoto Convention

• Improve transparency of customs procedures, via a web site.

• Implement world standards in the new Pudong Express Handling Centre. Adopt UN EDIFACT for the EDI system in the Express Handling Centre. Adopt WTO Valuation Agreement and apply valuation principles.• Improve their Risk management techniques.

Shanghai summary

• Potential to enable Shanghai to open world-class facility in 2003

• Potential for replication within China and elsewhere in APEC

• Continuing challenges in keeping deadlines

• Conclusion….so far, so good.

Overall Conclusions

• Is it enough? • IECC members are largest customers of Customs• Customers are increasingly shippers of high-value,

time sensitive goods• Effective & efficient Customs essential if Express

industry is to enable global commerce• IECC/WCO MOU : co-operation and training at

global, regional and national levels

Recommendation to WTO

• But, WCO lacks enforcement powers• And, many national Customs are still

underpaid/corrupt and inefficient• WCO revised Kyoto convention has trade

facilitation in obligatory general annex

RECOMMENDATION:

WTO adopt revised Kyoto convention to assist enforcement of trade facilitation