1 WCO Time Release Study Guide --- An analytical tool for TF--- UNCTAD/UNECE Workshop 1 November 2006, Geneva Tadatsugu Toni Matsudaira World Customs Organization (WCO)

2 Importance of National TF coordination International Supply Chain International Supply Chain Lack of awareness Lack of awareness What procedures are required for the trade?What procedures are required for the trade? Where are the bottlenecks? By whom?Where are the bottlenecks? By whom? Lack of persuasive criteria Lack of persuasive criteria To grasp the current situationTo grasp the current situation To obtain the effect of TF measuresTo obtain the effect of TF measures To mobilize internal/external resourcesTo mobilize internal/external resources Time for the goods release

3 Simple model Arrival of vessels  Lodge import declaration to Customs Lodge import declaration to Customs  Obtain import permission Obtain import permission  Delivery of Goods from The Customs storage

4 Players (example) Arrival of vessels  Lodge import declaration to Customs Lodge import declaration to Customs  Obtain import permission Obtain import permission  Delivery of Goods from The Customs storage Manifest from the ship Import license from the Trade Board Technical conformity certificate from the Standard Board Payment of the duty/tax by the importer Receipt issued by the bank Open the gate by the warehouse

5 Points to note Different players Different players Depends on the country, type of goods, mode of transport, etc One intervention often constitutes the precondition to the others One intervention often constitutes the precondition to the others Interest Interest Service provider  processing time Service provider  processing time User  processing time + waiting time User  processing time + waiting time Importer  receive the goods arrived in Importer  receive the goods arrived in the country as soon as possible the country as soon as possible

6 Time Release Study From arrival to goods release covering Customs and other agencies/entities Only Customs Mechanism to grasp waiting times Only processing time Only waiting time Data compilation by type of goods, mode of transport, control channel, other government agencies intervention, and other Simple compilation of time Mechanism to grasp the rationale of delay Only time stamp Ideal Basic

7 Customs only? (example: A/P)

8 Processing time only? New Customs mainframe can process 2,000 declarations within one minute. No DTI. At least one full day waiting time before input of the data to the mainframe by Customs.

9 Waiting time only? (example: AMS)

10 Mode of transport? (example: ESA) (hours)

11 Control channel? Goods declaration Risk management Green Immediate release subject to duty payment Yellow Documentary Check (e.g., OGA’s certificate, origin certificate) Red Physical inspection (e.g., classification verification, check against smuggling)

12 (hours) OGA intervention? (example: ESA)

13 Other: Pre-arrival processing (ESA) (hours)

14 (days) Rationale of delay (example: NAME) Customs receives the goods declaration Customs finishes necessary checks and requests to pay duty/tax Trader starts seeking available money to pay duty/tax Trader pays duty/tax Customs issues release permission

15 WCO Time Release Guide Standardized guide Standardized guide Cross border movement Cross border movement Arrival  Release Arrival  Release + Intervening stages (15 stages) + Intervening stages (15 stages) Analytical (type of goods, modes of transport, other government agency intervention, TF measures, rationale of delay) Analytical (type of goods, modes of transport, other government agency intervention, TF measures, rationale of delay) Not only for Customs Not only for Customs Not only time but also questionnaire Not only time but also questionnaire WTO TFNG proposal (W/139) WTO TFNG proposal (W/139)

16 Implementation Four phases Four phases 1. Preparation of the study 2. Collection and compilation of data 3. Analysis of data and recommendation 4. Action plan WCO CB/TA is available (subject to funding) WCO CB/TA is available (subject to funding) Kenya, Malawi, Mozambique, Sri Lanka, Tanzania, Zambia (planned: Brazil, Nigeria, PNG and possibly Zimbabwe) Kenya, Malawi, Mozambique, Sri Lanka, Tanzania, Zambia (planned: Brazil, Nigeria, PNG and possibly Zimbabwe) IT software is available (more user friendly version will be released soon) IT software is available (more user friendly version will be released soon)

17 What is TRS for? Identify the bottlenecks in trade procedures in Customs and other agencies/entities Identify the bottlenecks in trade procedures in Customs and other agencies/entities Design reform and modernization well addressing the bottlenecks Design reform and modernization well addressing the bottlenecks A persuasive indicator in front of the budget authority / donor community A persuasive indicator in front of the budget authority / donor community A criteria for progress of trade facilitation A criteria for progress of trade facilitation

18 Thank you! Tadatsugu Toni Matsudaira World Customs Organization Rue du Marché 30, 1210 Brussels Tel : + 32 (0) Fax: + 32 (0)