Draft Principles and Tools for Transborder Logistics Optimization in APEC

1. 1 Draft Principles and Tools for Transborder Logistics Optimization in APEC APEC Workshop Transborder Control and Optimal Transborder Logistics Presented by Tagir Khuziyatov Prof., Far Eastern Federal University

2. 2 Draft APEC principles of transborder logistics services optimization Transparency, Consistency, Simplicity, Efficiency, Harmonization, Standardization, Interagency coordination, Cooperation.

3. 3 The principles of transparency and consistency: APEC economies: will make available their relevant laws, rules and regulations relating to international trade and cross-border transportation of cargoes to any interested APEC Member economy and publish the outline of relevant domestic laws, rules and regulations in English; will notify other APEC member economies of the introduction of new trade laws and regulations or the amendment of existing trade laws and regulations that may have a significant impact on trade at the earliest possible stage; will establish non-discriminatory procedures at reasonable cost and time for administrative and legal appeal against the decisions by customs and other relevant agencies affecting international trade.

4. 4 The principles of simplicity and efficiency: APEC economies: will consolidate, rationalize and minimize the number and diversity of fees and charges imposed and documents required in connection with importation and exportation of goods; will work towards establishment of a single window allowing the one-time submission of import or export data and documentation requirements (where relevant); will introduce procedures for filing and examining documents prior to the arrival of goods, in particular, goods of perishable nature, enabling importers to claim their goods immediately after importation unless the goods are subject to a physical examination or the submitted documents need to be reviewed;

5. 5 The principles of simplicity and efficiency (cont.): will establish, in a phased manner, risk assessment and risk management procedures, including Export and Import Clearance Process based on Authorized Economic Operator (AEO) Program and elimination of physical inspection and fast clearance in entry country for low risk cargo controlled within Authorized Supply Chains (ASC), based on mutual recognition of AEOs; will simplify and reduce the incidence and complexity of import and export formalities and data requirements in accordance with domestic laws, rules and regulations to the necessary minimum for enforcing legitimate policy objectives, by applying international standards such as the Revised Kyoto Convention and relevant recommendations of the World Customs Organization, to the extent possible; will promote, to the extent feasible, the use of automation and information technology in customs procedures and establish an electronic communication system to facilitate the electronic submission of documents, payment of duties and communication with the customs authorities for their importers and exporters; will introduce RFID technology into cargo processing.

6. 6 The principles of harmonization and standardization: APEC economies: will, to the extent possible, apply the standards and recommendations of the Revised Kyoto Convention for Simplification and Harmonization of Customs Procedures and other relevant international agreements.

7. 7 The principle of interagency coordination: APEC economies: will establish National Trade and Transport Facilitation Councils or any other suitable mechanism at the highest possible level, with participation of all stakeholders from different ministries, authorities or associations from both the public and private sectors.

8. 8 The principle of cooperation between APEC Member economies APEC economies: will endeavor to provide interested Member economies, including the private sector, with an opportunity to comment on prospective laws or amended trade-related laws and regulations prior to implementation or entry into force of the changes; will endeavor to cooperate on effective exchange of border agencies information and data to improve customs compliance and to facilitate legitimate trade; will adopt Individual Action Plans for Transborder Logistics Optimization, referring to World Bank�s Logistics Performance Index and World Economic Forum Enabling Trade Index, and meaning, as a rule, it�s phased implementation according to individual economy�s circumstances.

9. 9 Measures proposed 1. The use of risk management system. 2. Carrying out a Time Release Study. 3. Coordinated Border Management. 4. Single Window environment. 5. Globally Networked Customs.

10. 10 Actions possible at the APEC level Assisting, on request, in formulating and implementing subregional and bilateral agreements relating to facilitation of border crossing points, international road and rail transport; Promoting accession to and implementation of international facilitation conventions; Assisting in establishing or strengthening national facilitation coordination mechanisms; Refining and applying the tool kit of the time/cost-distance methodology to cross-border and transit transport; Studying the impact of new technologies on border controls and international transport; Preparing guidelines for the development of a national logistics policy; Undertaking a study on national coordination of stakeholders in logistics;

11. 11 Actions possible at the APEC level (cont.) Developing a statistical tool for measuring logistics costs which can be used by countries of the region; Preparing a guideline for the establishment of minimum standards and codes of conduct for logistics services providers in countries of the region; Working with Member economies and industry to identify the transport logistics needs of the region and working with government and industry towards a sustainable training program across the APEC; Organizing regional meetings for freight forwarders, multimodal transport operators and logistics service providers; Reviewing the framework of collaboration between APEC and other regional and subregional organizations and programmes, and exploring ways and means of enhancing cooperation; Convening annual meetings of the APEC Secretariat and the secretariats of subregional organizations as well as subregional programs;

12. 12 Actions possible at the APEC level (cont.) Undertaking comparative studies of the provisions of subregional agreements and advocating convergence of agreements at regional meetings; Providing regional frameworks for supporting subregional connectivity of transport operations and harmonization of arrangements for cross-border and transit transport across subregions; Studying physical and non-physical barriers to inter-regional transport movements and convening regional/inter-subregional meetings to develop action plans to address the relevant issues; Promoting inter-regional trade corridors; Developing Individual Action Plans and Collective Action Plan for the improvement of transborder logistics.

13. 13 Actions possible at the APEC Member economies level Ratifying or approving the signed subregional agreements and implementing the agreements in their territories; Acceding, as appropriate, to international facilitation conventions; Accelerating the formulation of subregional agreements under negotiation; Incorporating into national legislation, as appropriate, the requirements of international treaties on transport facilitation to which the economies are Parties; Establishing or strengthening national facilitation coordination mechanisms; Adopting new technologies available for the control of cross-border and transit transport;

14. 14 Actions possible at the APEC Member economies level (cont.) Establishing inter-ministerial consultations with the participation of the private sector to coordinate the development of logistics; Formulating integrated national logistics policy; Identifying and prioritizing transport logistics training needs and developing a sustainable training program; Developing Individual Action Plans for optimal transborder logistics.

15. 15 Thank you for your attention!