Presentation on theme: "Delivering Trade Facilitation"— Presentation transcript:
1Delivering Trade Facilitation Customs ModernisationAn Essential Component forEffective Border ManagementWorkshop on Trade Facilitation and Aid for Trade12-13 March 2009, Addis AbabaTrevor Simumba - Senior Advisor- Customs & Trade FacilitationValentina Mintah – Senior Solutions Specialist –Public Finance Management IT
2Owned by The Crown Agents Foundation Foundation’s social and developmental objectivesOwned by The Crown Agents FoundationPermanent MembersElected MembersCrown AgentsProfitCrown Agents is a private limited companyGroup of companies/subsidiaries ultimately owned by The Crown Agents FoundationPermanent Members – 13Elected Members - 26Company limited by guarantee, owned by the membersNon profit distributing beyond allocation of funds to developmental purposes – training scholarships (max £200K)
3Crown Agents World Wide Europe and Former Soviet Union:Albania AzerbaijanBosnia BulgariaDenmark GeorgiaKyrgyzstan MacedoniaRomania UkraineRussiaUnited KingdomOver 40 offices worldwideAsia:AfghanistanBangladeshIndiaJapanMalaysiaPakistanPhilippines SingaporeVietnamAmericas/Caribbean:BahamasUSA MiamiUSA WashingtonThis is our current range of international offices and agents, with just over half being run by permanent CA staff. This Office network will be rationalised over the coming months in accordance with the Strategic Review.So what do they do and why do we need them?Middle East:IraqJordanUnited Arab EmiratesYemenAfrica:Angola Mozambique SudanEthiopia Nigeria TanzaniaGhana Rwanda UgandaKenya Sierra Leone ZambiaMalawi ZimbabweAustralasia:New Zealand
4What is Trade Facilitation? The simplification, harmonisation, standardisation, and modernisation of trade procedures* in the interests of reducing transaction costs between government and business.*Trade Procedures being understood as activities, practices and formalities associated with the administration of the transference of goods and services across national borders.
5World Trade Organisation World Customs Organisation Legal and Policy FrameworkWorld Trade OrganisationGATT Articles V, VII, and XDoha Round TF dossierWorld Customs OrganisationKyoto Convention,SAFE Framework of StandardsUnited NationsUNECA, UNCEFACT, UNCTADRegional InstitutionsEU, COMESA, ECOWAS, SADC/SACUNAFTA, Mercosur, ASEAN, etc.Trade FacilitationOperational ComponentsEfficient MISRegulatoryTransparencyGATT Articles:V – freedom of transitVII – fees and formalitiesX – regulatory transparencyIntegrated Border Management = government inter-agency / departmental cooperationIntegratedBorder Management(IBM)SimplifiedProceduresService-LevelAgreementsGovernment –Business DialogueApplicationof InternationalStandardsRisk-BasedControlsSingle WindowHarmonisation
6The Challenges for Customs Administrations Trade FacilitationThe Challenges for Customs AdministrationsStriking the right balance between trade facilitation, customs control and securityNeed for greater mutual understanding between public and private sectors, based on genuine partnership and consultationTo increase awareness by public authorities of the wider impact their actions have upon international supply chains and its consequences for the wider economyTo adopt an inter-agency ‘single window’ operational approach – Integrated Border ManagementMove away from transaction based control systems to audit-based whole trader control - ‘trusted trader’To fully take into account business practices when implementing legislative, procedural and ICT based changeTo develop a professional knowledge based service cultureCompanies are increasingly competing on the efficiency of their globalised supply chains. Modern forms of international production networks are splitting the value chain into ever smaller slices which can be produced in different countries depending upon their comparative advantage for the different portions of the value chain. To achieve the speed these require firms have to be able to reassure customs authorities (particularly in the US and other OECD countries) on the security of their supply chains. WCO Framework of Standards and the Authorised Economic Operator.
7Case Study: AngolaTrade Facilitation in Practice – Key Results to dateCustoms clearance time for business slashed from an average of 21 days to 48 hrs.Introduction of risk-based controls, speeding up the flow for legitimate traders.1,731% increase in government revenue between years 2000 (baseline) and 2009 (up from U$215m to U$4bn+ respectively).1st SADC country to implement the SADC format single administrative document.Automated customs entry processing (TIMS) at Luanda’s air and sea ports and key regional border posts (including direct trader input).New Consolidated Customs Code & Regulations introduced, aligned with internationally agreed standards e.g. WTO Rules for Customs Valuation.Customs Code of Conduct and ‘customer’ Service Standards adopted, improving transparency and predictability for business
8Case Study: Angola How they were achieved Key to success – close working partnership between CA and the Government of Angola with a strategic approachHigh level policy commitment to change - political willA detailed review of the legal and policy framework to adopt best practice and align with recognised international and regional standards (e.g. WCO, WTO and SADC)Strengthening capacity of Customs personnel through: staff and management development programmes, mentoring schemes and graduate recruitmentThe streamlining of processes and procedures in line with recognised international standards (e.g. UN/CEFACT)
9Lessons LearnedEarly ‘buy in’ by key stakeholders in Government and private sectorEarly development and implementation of systems and processes to enhance integrity and transparencyThe centrality of client country ownership throughout the programme (e.g. joint working and senior level mentoring)Adoption of appropriate information technology (TIMS) to support the re-engineering of processes and proceduresThe importance of collaborative working based upon institution transformation through a sustained long term technical assistance support programme to instil best practice aligned with internationally recognised standards
10Crown Agents & Single Window An important building block for the realization of the Trade Facilitation Goal
11Single Window Environment InteroperabilityUbiquitousAnytime AccessShipping LineManifest Datareport agentForwarderTrade FirmBankNationalSingle WindowTrade Related AgenciesData ProviderCommunication Network Service ProviderAirlineBonded TransportationInspection CompanyCustoms BrokerWarehouseAll stakeholders stand to benefit fromSIMPLE, TRANSPARENT and EFFECTIVE trade processes.
13All Inclusive Single Window Adopted ModelModel 2: All Inclusive ModelAll Inclusive Single WindowModelAutomationOperational Efficiency
14Alignment - SolutionA Business model that adapts to each participant’s environmentTechnology that supports BOTH advanced organisations (XML) and those reliant on document-based processes (PDF)Alignment of technology componentsMinimal entry requirementsLittle or no re-engineering requiredFast Scale Up pathWORKING TOWARDS AN AGREED VISION AND STANDARD
15Alignment – Holistic Approach Comprehensive Gap and Operations AnalysisAlignment with existing Trade initiativesLeveraging and amplifying current and planned programmesSeeking value from all existing programmesInteroperabilityIntegration with Regional Single WindowACROSS ALL AGENCIES
16Technology Evaluation Crown AgentsSingle Window RoadmapDetailed approach that integrates Strategy Confirmation and Goal DefinitionTechnology Evaluation
17Public Sector Benefits Benefits of aSingle Window ApproachECONOMY - PUBLIC SECTOR - PRIVATE SECTOR – CITIZENPublic Sector BenefitsBoost to Economic GrowthImproved CompetitivenessIncreased Government RevenueCo-ordination of the controls and inspections of the various governmental authoritiesResponse to Heightened Security NeedsA professional, transparent, accountable, auditable, efficient and automated Customs ServiceINTERNATIONAL COMPETITIVE ADVANTAGE
18Private Sector Benefits Benefits of aSingle Window Approach (cont’d)PRIVATE SECTOR – PUBLIC SECTOR – CITIZEN - ECONOMYPrivate Sector BenefitsAssuring TransparencyPredictabilitySaving Time –Clearance, Compliance etcCost SavingsCreating Customer ValueImproving Supply Chain Security and PerformanceINTERNATIONAL COMPETITIVE ADVANTAGE
19Questions & Answers PLEASE FEEL FREE TO CONTACT US: THANK YOU FOR YOUR ATTENTION.PLEASE FEEL FREE TO CONTACT US:Trevor Simumba:Valentina Mintah:Kevin Atkinson: