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TRS as Measure of TF: Customs Experience in Asia Pacific

TRS as Measure of TF: Customs Experience in Asia Pacific. Shujie ZHANG WCO Regional Office for Capacity Building (ROCB) May 20 – 22, 2009 Beijing, China . Regional Policy Forum on Trade Facilitation and SMEs in Times of Crisis 20-22 May 2009, Beijing, China.

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TRS as Measure of TF: Customs Experience in Asia Pacific

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  1. TRS as Measure of TF: Customs Experience in Asia Pacific Shujie ZHANG WCO Regional Office for Capacity Building (ROCB) May 20–22, 2009 Beijing, China Regional Policy Forum on Trade Facilitation and SMEs in Times of Crisis 20-22 May 2009, Beijing, China

  2. Against Crisis: Customs Action • Promotion of risk management and other trade facilitation measures • Customs-Customs cooperation • Consultations with trade policy ministries • Customs-Business partnerships • Coordinated border management • Deferred payment & Flexibility of guarantee (security) Sustain and promote growth of international trade which is in the benefits of the trade including SMEs * WCO Communication on the Global Financial Crisis for G20 Summit

  3. Customs Evolving Role Revenue Collection Duty Other Tax Protection Society Drug Firearm Counter- feit Environ- ment Protection Domestic Industry Anti- Dumping Duty etc. Economic Develop- ment Trade Facilitation Security Protection Global Supply Chain Statistic Compile Trade Statistic

  4. Capacity Building WCO Tools for TF Single Window SAFE Framework of Standards (AEO) World Customs Organization: Sole inter-governmental organization competent in Customs matters with 174 member administrations. Guideline on application of ICT WCO Data Model, UCR Revised Kyoto Convention, Mutual Administrative Assistance, Harmonized System, Rules of Origin, WTO Valuation, Istanbul/ATA, Container Convention, etc. Time Release Study, Risk Management Guide Integrated Supply Chain Management Guide

  5. Parties Involved in Importation Customs Import License Importer Customs Broker Border Police Airlines Quarantines Shipping lines Food sanitation Agents Port Authority Forwarder Warehouse Immigration Container Yards Banks

  6. Brief Background of TRS • Systematic and standard system to measure average time between arrival of goods and its release • Two ways: manual (Japan) and automatic (Korea) • First TRS by Japan and US (1991) • TRS was adopted by WCO (1994) • TRS Guideline updated by WCO (2002) • TRS Software developed by WCO and the World Bank (2005)

  7. Why TRS • To Customs & OGAs - Used as Trade Facilitatin Index & Clearance Quality Index - Identify bottlenecks/problems in clearance - Consider solutions to improve - Develop service charter • To trade community - Predictability - Reduced time and cost of logistics

  8. TRS: Image Consumed by Shipping company Shipping agent Port Authority, etc. Consumed by Port Authority Container Yard Warehouse, Forwarder, etc. Consumed by Importer, Customs broker Container Yard OGAs, etc. Consumed by Customs Bank Customs broker Ship Arrival Unloading Declaration Permission Delivery

  9. Link to Other TF Indicators Doing Business Index Cross border Time / procedures Logistics Performance Index National competitiveness

  10. Regional Situation of TRS National Level: • Japan (Since 1991) • Korea (Since 1998) • Philippines (2002) • Indonesia (2005) • China (2006) • Thailand (2006) • Malaysia (2007) • Australia (2008) Regional Level • Brunei Darussalam, Indonesia, Malaysia, Philippines East ASEAN Area (BIMP-EAGA) (2009) • Great Mekong Subregion (GMS) East West Economic Corridor (EWEC) (2009)

  11. Country Case: Japan • Conduct regularly since 1991 • Duration: 7 consecutive days (8th TRS: 13-19 March 2006) • Geographical Scope: All regional Customs (At least one sea port). • Types of goods: All cargoes. • Choice of Traffic: Sea and Air • Choice of Customs Office: 22 major sea ports and 4 major air ports. Quantitative Evaluation (billion yen) Source: Ministry of Finance, Japan (2004 year basis)

  12. ROCB Support • TRS Workshop in Thailand (2006) • TRS Workshop in China (2006) • TRS Workshop in Lao PDR, in cooperation with World Bank (2009) • TRS Workshop for BIMP-EGGA (Mar.2009) • TRS Workshop for GMS EWEC (Jun.2009) • Developed “Regional Best Practice Compendium on TRS” (2007)

  13. Implications on Policy • Political commitment and will must be obtained. • The purpose must be clearly defined as for what data, by who and through what methodology • Close cooperation among relevant governmental agencies and support from private sector is necessary. • The results should be used wisely and effectively. • Integrate TRS with other Customs modernization initiatives.

  14. Shujie ZHANG Technical Attaché WCO ROCB (Bangkok) shujie@rocbap.org rocb@rocbap.org http://www.wcoomd.org/home_wco_topics_pfoverviewboxes_tools_and_instruments_pftoolstimerelease.htm

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