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The World Bank
Modern Transit
Global Trends and International Framework
Cost to the economy
• Companies sometimes spend more money complying with Customs regulations than Customs earn in revenue
• 9 billion documents are necessary each year to process movements of goods in the world
• According to UNCTAD, an average Customs process implies...
Costs
• 27 parties
• 40 documents
• 200 data elements (30 of which are repeated at least 30 times)
• Retyping of 30 percent of data
The Transit situation in Southeast Europe
• The region was - and will become again - a major transit zone– Traffic goes around– Traffic from Turkey goes across the
Mediterranean
• Trans European corridors
• TRACECA
Costs
• Border delays and processing account for 10 percent of transport times between SEE and EU countries
• Thank you.
For us, transit is...
• 90 percent coordination, and
• 10 percent technology
The Bank approach
• Integration– Dialogue– Public - Private sector cooperation– Inter-agency cooperation
• Benchmarks– Indicators– Pilot sites
What can the Bank bring?
• Global perspective on trade facilitation• Transit considered as a support to trade facilitation
• We measure times and costs
• Funding of projects– TTFSE (Southeast Europe)– Caucasus– Kirgyzstan
What else can the Bank bring
• Constant dialogue with the authorities
• Facilitation of contacts– Regional structures– Working groups
• Strong partnership with– International organizations (UN agencies, IMF,
EU, WTO, WCO) and– The private sectorThe private sector
Integrated approach
• Implies other agencies
• Institutional reform
• International cooperation
The Bank approach
• Computerization– Indispensable to meet project objectives– Experience sharing– Opening of the system
• Data sharing
• Web-site
Measurement
• Performance indicators
• Annual review
• Independent survey on transit costs
Computerization
• We seek the best system for the country, make use as much as possible of what exists, fit in other projects
• We encourage development of standards
Where do we go next?
• Promote cooperation at the borders– Cross training - awareness– Delegation of activities
• Cross border exchanges– Single data capture– Data transfer– Use of Customs functions for other purposes
The technological solutions
• New solutions– Smartcard, bar coding, OCR,scanning
• Integrate systems so they are ready for new solutions when they become available
The near future
• Best practice– Provide a package
• Refine benchmarking– To prepare projects– To evaluate results
• Develop transparency
Technical solutions
• We can disseminate information– Technology (Smartcards, scanners)– Hardware– Software solutions
• But it is not our role to design solutions
• Although we can contribute to put together documentation on best practice
Example
• Equipment– Bar coding– Automatic data capture– Use of OCR technology– Telecommunications
Example
• Organization– Single data capture– Coordination across agencies and borders– Coordination with the trade community
Example
• Administrative reform– All legislation and regulations must often be
reviewed– Respective role of agencies must be clarified
The World Bank
