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Technical Assistance & Capacity Building in Trade Facilitation

Technical Assistance & Capacity Building in Trade Facilitation. WTO Workshop 10 & 11 May 2001 Julian Oliver, IECC & ICC. IECC The Global Voice of the Express Industry. International Express Carriers Conference = coalition of DHL, FedEx, TNT, UPS + regional & national Express associations

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Technical Assistance & Capacity Building in Trade Facilitation

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  1. Technical Assistance & Capacity Building in Trade Facilitation WTO Workshop 10 & 11 May 2001 Julian Oliver, IECC & ICC

  2. IECCThe Global Voice of the Express Industry International 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

  3. 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

  4. 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

  5. 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

  6. IECC & Trade Facilitation10 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

  7. 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

  8. 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

  9. 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

  10. 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

  11. 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

  12. 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.

  13. 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.

  14. 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

  15. 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

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