Trade Facilitation:
An Introduction
Jan.Hoffmann@UNCTAD.org
Geneva, May 2009
Trade Facilitation: An Introduction
•
•
•
Scope of Trade
facilitation
Traders’ main
concerns
Key areas of work
Trade Facilitation: An Introduction
•
•
•
Scope of Trade
facilitation
Traders’ main
concerns
Key areas of work
TRADE FACILITATION
Simplification
Process of eliminating
all unnecessary
elements and
duplications in
formalities, processes
and procedures
Harmonisation
Alignment of national
procedures, operations
and documents with
international
conventions, standards
and practices.
Standardisation
Process of developing
internationally agreed
formats for practices
and procedures,
documents and
information.
TRADE FACILITATION
Standardisation
Process of developing
internationally agreed
formats for practices
and procedures,
documents and
information.
International rules and standards
• IMO
• ISO
• UN-CEFACT
• WCO
• WTO
UN Lay-out Key
(UNECE Rec.#1)
TRADE FACILITATION
Simplification
Process of eliminating
all unnecessary
elements and
duplications in
formalities, processes
and procedures
Harmonisation
Alignment of national
procedures, operations
and documents with
international
conventions, standards
and practices.
Standardisation
Process of developing
internationally agreed
formats for practices
and procedures,
documents and
information.
TRADE FACILITATION
Harmonisation
Alignment of national
procedures, operations
and documents with
international
conventions, standards
and practices.
TRADE FACILITATION
Simplification
Process of eliminating
all unnecessary
elements and
duplications in
formalities, processes
and procedures
Harmonisation
Alignment of national
procedures, operations
and documents with
international
conventions, standards
and practices.
Standardisation
Process of developing
internationally agreed
formats for practices
and procedures,
documents and
information.
TRADE FACILITATION
Simplification
Process of eliminating
all unnecessary
elements and
duplications in
formalities, processes
and procedures
TRADE FACILITATION
Simplification
Process of eliminating
all unnecessary
elements and
duplications in
formalities, processes
and procedures
Harmonisation
Alignment of national
procedures, operations
and documents with
international
conventions, standards
and practices.
Standardisation
Process of developing
internationally agreed
formats for practices
and procedures,
documents and
information.
Trade Facilitation: An Introduction
•
•
•
Scope of Trade
facilitation
Traders main
concerns
Key areas of work
The Trade Transaction
GOODS
S
INFORMATION
PAYMENT
B
Company A
Company B
Product
Supplier
Manufacturer
Wholesalers
Retailers
Customer
What do traders want ?
• Simple and smooth processing of formalities
• Means to allow goods to proceed promptly to
their final destination. No longer itineraries,
no unpacking, no delays
• A single control point for all public services
• Standard forms, assembled into a ‘single
bunch of documents’, compatible with trade
documents and transport contracts
• Predictable and transparent rules and
procedures
Data exchange
in International Trade
Purchase
Exportation
Importation
•
•
•
•
Bill of lading, Documentation
Vessel Booking Request
Confirmed Line of Credit
Importer’s
Bank
Vessel Booking Confirmation
Exporter’s
Bank
Original B/L,
Invoice, PO,
Packing List
Fund Transfer
Line of Credit
Proforma Invoice
Rated Bill of Lading
LC
Confirmation
Letter of
Instruction
Invoice, PO
Shipping & funding detail
Release/Hold
Notice
Inland
Carrier
Manifest
Dock receipt
Export Declaration
AES
Cargo
Status
Customs House
Broker
Pick-up & Delivery Order
Shipping & Funding Detail
Marine
Insurance
Company
Demurrage
guarantee &
payment
Dock receipt
Freight Forwarder /
NVOCC
Import
Terminal
Operator
Ocean Carrier
Export
Terminal
Operator
Exporter
Proforma Invoice
Arrival Notice
Dock Receipt
Purchase Order
Importer
Release/Approval
Bill of Lading
Import
Docs
Cargo
Status
Customs ( Import )
Vessel Manifest
Export Declaration
Port
Customs (Export)
Importer Notice
20 actors;
> 200 data elements;
Manual procedures;
Multiple data
systems;
• > 30 documents or
messages.
Converted Vessel
Manifest
Pick-up &
Delivery Order
Inland
Carrier
Too many documents…
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•
•
•
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Enquiry
Order
Despatch advice
Collection order
Payment order
Documentary credit
Forwarding instructions
Forwarder's invoice
Goods receipt
Air waybill
Road consignment note
Rail consignment note
Bill of lading
•
•
•
•
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Freight invoice
Cargo manifest
Export licence
Exchange control doc.
Phytosanitary certificate
Veterinary certificate
Certificate of origin
Consular invoice
Dangerous goods
declaration
• Import licence
• Customs delivery note
• TIR carnet
PRE-ARRIVAL & ARRIVAL INFORMATION
Pre-Arrival
•
Vessel’s characteristics or ship’s particulars, kind and tonnage of cargo, vessel’s ETA and master’s requests must be notified to
the Harbour Master Department every 48hrs, 24hrs or at least six hours prior to vessel’s arrival at the port’s anchorage areas.
Arrival
•
The component of the committee that performs vessel clearance consists of 10 members from Harbour Master Department,
Department of Customs and Excise, Immigration Police, National Shipping Agency and Broker, and Quarantine Authorities. Ten
copies of cargo manifest are required to be provided to the Department of Customs and Excise.
•
Entry permit (arranged by official shipping agency),
•
Last port clearance certificate,
•
15 lists of last port of call (at least 10 last ports),
•
5 declarations of vessel’s arrival,
•
10 import cargo manifests,
•
3 bills of loading,
•
2 transit cargo manifests,
•
7 crew lists,
•
7 passenger lists,
•
3 lists of vessel’s provisions,
•
3 lists of crew personal effects,
•
1 copy of health declaration certificate,
•
1 copy of vaccination list,
•
1 copy of drugs and narcotic list,
•
1 copy of fresh water origin,
•
3 cargo plans,
•
1 copy of valid original ship’s certificates (to be collected only on the first call of the year of each ship),
•
Certificate of vessel's registration,
–
–
–
–
–
–
–
•
International load line certificate,
International tonnage certificate,
International oil pollution prevention certificate,
Cargo vessel safety equipment certificate,
Cargo vessel safety construction certificate,
Cargo vessel safety radio certificate,
Minimum safe manning certificate.
Exemption Certificate (to be inspected by quarantine officers ).
Days to complete each stage of importing
Pre-arrival
documents
Port and
terminal
handling
Customs
and
inspections
Inland
transport to
warehouse
Total time
OECD high income
8
2
2
2
14
East Asia & Pacific
18
3
4
3
28
Latin America & Caribbean
24
4
5
3
36
Middle East & North Africa
25
5
9
4
43
Europe & Central Asia
25
4
7
7
43
South Asia
24
6
7
10
47
Sub-Saharan Africa
33
8
10
9
59
World
23
5
6
5
40
Region
Source: World Bank Doing business 2006
Inspections
Region
OECD
East Europe
East Asia
Latin America
Middle East
Africa
South Asia
% of cargo
inspected
(import)
5
18
31
51
63
67
69
Source: World Bank Doing Business 2006
Trade Facilitation: An Introduction
•
•
•
Scope of Trade
facilitation
Traders main
concerns
Key areas of work
Functional linkages
Customs
Time Release
Adapted
H.S.
Risk
Assessment
Standardized
documentation
Customs
Automation
Post-audit
Controls
Single
Window
Sequencing
ID
1
2
3
4
5
Linkages between
Trade Facilitation measures
Standardization and simplification
Introduction of single administrative
document (SAD)
Computerization and automation of Customs
procedures
Risk management, pre-arrival processing and
post-clearance audit
Customs-related judicial or administrative
measures
Q4 04
7.11
Q1 05
5.12
Q2 05
2.1 9.1 16.1 23.1 30.1 6.2 13.2 20.2 27.2 6.3 13.3 20.3 27.3 3.4 10.4
Cooperation at the national level
• Between the government institutions
concerned by foreign trade:
Finance, Commerce, Transport
• With the private sector in the trading
community: importers and exporters
• With service providers:
transport operators, banks, insurance
companies…
Cooperation at the international level
Trade Facilitation: An Introduction
Questions?
•
•
•
Scope of Trade
facilitation
Traders’ main
concerns
Key areas of work