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Trade Logistics Bill Gain Global Product Specialist-Trade Logistics, Investment Climate.

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Presentation on theme: "Trade Logistics Bill Gain Global Product Specialist-Trade Logistics, Investment Climate."— Presentation transcript:

1 Trade Logistics Bill Gain Global Product Specialist-Trade Logistics, Investment Climate

2 Trade Facilitation – A couple of definitions  “simplification, standardization, and harmonization of procedures and associated information flows to move goods from seller to buyer and to make payment.”  But also relevant:  “identifying and addressing bottlenecks that are imposed by weaknesses in trade related logistics and regulatory regimes and that prevent the timely, cost effective movement of goods.” 2

3 Benefits of trade facilitation and logistics reform  Trade and Transport Facilitation provides important benefits: –increase trade competitiveness through better logistics, border management, and availability of services for overall improved supply chain performance –Result is better cash flow, lower risk, just in time delivery, and more market opportunities (volume and diversification). 3

4 4  The import/export/transit process is complex  The average trade transaction involves 20 – 30 different parties, 40 separate documents, around 200 data elements (30 of which are repeated many times)  Parties have different objectives, incentives, competence and constituencies  Private sector also need to be part of the process But Reform is not easy

5  Strategy for customs modernization  Human resources and organizational issues  Legal Framework  Integrity in Border Agencies  Managing risk in the clearance process  Redesign of Border and Customs Processes  Simplification and Harmonization  ITC Support for e-Customs and RM - ASYCUDA A Few Trade Facilitation Components – Connectivity is Key

6 Source: DB database 2012, 2013 Efficient trade logistics – The critical link in effective trade facilitation Distance Logistics Costs (Value of Time & Service Charges) International Jurisdiction National Jurisdiction Collection, Marketing & Packaging Inventory of Semi- Finished Product Land Transport Port Handling & Border Clearance Ocean Shipping Inland Transport Processor Warehouse Information Flow Seller In-house procedures Points of Interconnectivity Changes in supply chain performance are realized through changes in: In-house Procedures Level of Interconnectivity Regulation Technology and systems Infrastructre

7 The Private Sector Perspective  Simple and smooth processing of formalities  A ‘seamless’ process (minimal intervention)  Means to allow goods to proceed promptly to their final destination.  Standard forms, assembled into a ‘single bunch of documents’, compatible with trade documents and transport contracts  Consistency & Predictablity of information, rules and procedures

8 Trade Logistics Product 8 Objective To help our clients create simple, efficient and accountable trade logistics systems and services that have a dramatic impact on economic development. Expected Results and Impact Reduce the time & cost to trade, leading to increases in exports & savings to the private sector.

9 40 – 60 % of time to import is related to document preparation and clearance processes. Developing country average import time DAYS 14 days 4 days 5 days 4.5 days DOCUMENTS ASSEMBLY AND PROCEDURES CUSTOMS AND TECHNICAL CONTROL TERMINAL AND PORT HANDLING INLAND TRANSPORT Source: DB 2013 Categories accounting for more than 40– 60% of the total time to export and import in many countries around the world. Categories accounting for 40% or less of the total time to export and import around the world. Documents & clearancePorts and transport

10 Emphasis on impact evaluation Capital Carrying Charge Cargo Loss and Damage User Fees and Charges Inventory Cost Savings Capital Carrying Charge Cargo Loss and Damage User Fees and Charges Inventory Cost Savings Increases Export of … by … Sub Saharan Africa6.1% South Asia5.8% East Europe & Central Asia5.0% Middle East & N. Africa4.1% East Asia and Pacific Islands4.1% Latin America and Caribbean3.5% OECD1.7% A 10% reduction export time Impact on exportsImpact on private sector savings Source: Forthcoming research paper (Subramanian, Anderson and Lee (2012)

11 Global Trade Logistics Advisory Program Themes Simplifying & harmonizing trade procedures and documentation Conducting legal and regulatory reforms Integrating risk management systems into border inspections and clearance Implementing electronic processing/automation and Single Window Systems WTO Trade Facilitation Agreement Improving trade logistics in agribusiness supply chains Bridging the gap between food production and food security by creating and linking growth nodes and markets. Streamlining NTBs and thus offering market access for key agribusiness products in client countries. Agribusiness Improving border clearance, trade logistics systems and services at the regional level Technical Control for the cross border movement of cargo including the implementation and mutual recognition of international standards, accreditation and certification Regional Integration Improving efficiency of cargo movement at ports, airports & dry-ports Improving access for the private sector to invest in logistics and distribution services Improving logistics and services along the supply chain and/or specific Value Chains Trade Supply chain

12 Source: DB database 2012, 2013 Implementation Model Rapid Response Program 10-12 Months Identifies and achieves quick wins that build trust and catalyze reforms Establishes the basis for medium and long term reforms Systemic Reform Program 1-2 Years Extends rapid response work and addresses key constraints Promotes best practices for efficient trade logistics supply chains Industry Competitiveness Program 2-3 years Building regulatory frameworks for modern logistics and distribution services Improving food security & enhancing agribusiness competitiveness Regional Program 3-4 years Eases access to regional and global markets Provides solutions to land-locked, transit and island economies Typical Engagement Program

13 Our clients Trade Logistics projects in over 50 countries Caribbean Region - St Lucia, Antigua & Barbuda, St Kitts & Nevis, Grenada, Dominica Central America Region El Salvador, Honduras, Guatemala, Nicaragua, Costa Rica Liberia, Mali, Burkina Faso, Guinea Bissau, Benin, Sao Tome West Africa Region (ECOWAS) SE Europe Region - Serbia, Albania, Bosnia Herzegovina, Kosovo, Macedonia, Montenegro Armenia Kazakhstan, Mongolia South Asia Region - India, Bangladesh, Nepal Philippines Timor-Leste Chad, Central African Republic, Cameroon, Gabon Egypt, Ethiopia, Rwanda, Kenya, Zambia Columbia, Peru

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