Ramchandra Man Singh
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• Background
• Trade Facilitation (TF)
• Customs Role
• Customs and TF
• Modern Customs
• WCO Instruments
• TF Initiations in Nepal
• Coordination
• Conclusion
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Accurate, predictable, and speedy movement of goods across the border offers an attractive feature in the strategy of economic development
Certainty, clarity, Flexibility, &Timeliness
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Simplification, Harmonization,
Standardization and Modernization of trade process
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Contd.
• It aims at-developing a consistent , transparent, and predictable environment for international trade transactions.
• It is based on internationally accepted norms and practices .
5

• Growing volume of trade. Global traffic increased from 137 to 417 million containers between 1995 and 2006.
• Fall in tariff levels after the conclusion of Uruguay
Round.
• Availability of modern technology.
The OECD (2003) calculates that each 1% saving in trade related transaction costs yields a worldwide benefit of US$ 43 billion.
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Reduces the transaction cost and complexity of international trade and improves the trading environment in a country, while at the same time enhancing government controls.
Helps in successful integration into the world economy
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Results in direct benefits both to
Governments and to Business community in terms of increased economic efficiency, better security, faster delivery of goods, and reduced costs
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Customs has become the hub around which the wheel of globalization turns, and that hub must be both strong and flexible in order to global trade to operate efficiently while society remains safe.
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Fulfills three fold mission
• Fiscal mission
• Economic mission
• Social mission
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The role of customs has been changing-
• From a primary focus on revenue collection to one of trade facilitation, by enabling successful balance between effective control measures and facilitation of trade
• Development of a nation through promotion of trade and investment.
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TF and WTO negotiations:
• 1996 WTO Singapore Ministerial conference recognized
TF in WTO agenda.
• 2001 Doha Ministerial conference adopted a declarationmandate for negotiations in area of TF.
Particular reference to modernization of Articles V, VIII and X of GATT 1994
• 2004, WTO General Council on Doha work
Program decided to commence negotiation on TF.
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WCO Support the WTO Work on TF
GATT 1994
Articles V-Freedom of Transit
Article VIII –Fees/Formalities
Articles X- Publication & appeals
WCO (Kyoto)
• Effective rules for transit procedures
• Fees limited to the cost of services rendered
• Simplified procedures and limited data requirements
• Publication of regulations
• Appeals
High Principles
Compatible
Complementary
Tool to implement WTO
Principles
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st
New strategic Direction
Enhancing growth and Development through trade facilitation and border security.
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Ten building blocks
• Globally networked Customs
• Better coordinated border management
• Intelligence-driven risk management
• Customs Trade partnership
• Modern working methods
Contd.
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Contd.
• Enabling technology and tools
• Enabling powers
• A professional knowledge based service culture
• Capacity building
• Integrity
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• Revised Kyoto Convention
• Harmonized System on Tariff Classification
• Istanbul Convention on temporary admission
• Immediate Release guidelines
• Customs Data Model and time Release Guide
• Framework of Standards to Secure and Facilitate
Global Trade.
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• Achieving high compliance and facilitation is the definition of world class Customs
Customs must reduce the burden of trade as measured by 3 C’s
• Clearance time
• Cost of Compliance
• Consistency of practices
Improved trade security, trade efficiency and effective
enforcement.
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Trade Facilitation Initiatives In Nepal
Customs related
• Adoption of Harmonized System
• Implementation of WTO Agreement on Customs
Valuation
• Tariff Structure rationalized
• Implementation of ASYCUDA
• Important provisions of Revised Kyoto convention incorporated in Customs Act.
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Contd.
• Post Clearance Audit, Pre arrival clearance and risk management
• Physical infrastructure improved
• Inter sectoral coordination committee
• Operationalisation of ICD
• Bonded ware house facility
• Accession to WTO, SAFTA, BIMSTEC
• Integrated customs Border Points.
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A Study by World Bank in 2004 revealed
• Increasing global capacity in trade facilitation by half, when compared with the global average, would increase world trade by US$ 377 billion
9.7% rise in global trade.
• About US$ 107 billion of the total gains would come from improvement in port efficiency, about
US$ 33 billion for improvements in customs environments and US$ 83 billion from improvements in the regulatory environment
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• Significant scope for improvement outside customs.
• Focusing on customs reform alone will not produce significantly improved border management performance.
• Time for a new and more comprehensive approach to border management reform
- Coordinated Border Management.
Contd.
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• Trade facilitation is no luxury it is a must
• Customs must become even more effective.
So, Streamlined, effective systems are a prerequisite to fully exploit the opportunity of unfettered global trade in an increasingly hostile environment by enabling a successful balance between effective control measures and facilitation of trade.
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