Technical Assistance & Capacity Building in Trade Facilitation WTO Workshop 10 & 11 May 2001 Julian Oliver, IECC & ICC

IECC The Global Voice of the Express Industry International Express Carriers Conference = coalition of DHL, FedEx, TNT, UPS + regional & national Express associations Paradigm: door-to-door international express delivery VISION: Free movement of Dox & Goods MISSION: promote trade liberalisation MANTRA : 6 F’s fast, faster, fastest, free, freer, freest

What do IECC want? Ratification of revised Kyoto convention by 41 out of the 60 contracting countries Adoption by all countries of principles for the liberalisation of Air Cargo Launch of new broad-based WTO trade round to bind WCO revised Kyoto convention Immediate release and clearance of documents and packages by Customs

Express facts and figures > 220 countries > 750,000 people > 1200 aircraft > 1350 daily flights > 10 million packages cleared each DAY > $55 billion revenues in 2000 > $50 billion paid in duties & taxes

Buoyant Growth Industry IECC < 20 years young Double-digit volume growth rates Boeing: 18% pa growth McKinsey forecast that 80% of Mgd goods will cross borders by 2010 Ecommerce = turbo-charging express Express is enabler of global commerce

IECC & Trade Facilitation 10 m. Customs clearances per day IECC work via many agencies: APEC, EU, OAS, CIS, ICC, UNCTAD, UNECE, WCO, WTO, UPU, World Bank etc. 3 examples: Trade Facilitation Audit Methodology Project ACCESS in Malaysia Shanghai Model Port Project

An Audit Methodology for Trade & Transport Facilitation IECC/WB joint venture To alleviate poverty and gain access to trade 80% of trade in goods will cross borders Borders impose complex barriers WB invests a lot in ports, airports & roads Investments will not yield full returns unless there is associated trade facilitation Romania Customs and Italian shoes

ASEAN Project ACCESS Malaysia ASEAN CASTEM agreement 1997 Asean Customs Clearance & Express Services, ACCESS, 1999 Partnership to promote global trade via world-class standards Customs Vision years is a long time but not unrealistic for Myanmar, Laos, Cambodia & Vietnam

Inbound clearance procedures  Consignment Categorisation and Regulations  Pre-flight Clearance processes  Risk Management and Selectivity processes  Automation  Training  Transparency  Co-operation  Integrity  Reduction of Resources and Costs  Knowledge and Skill Improvement of staff  Reduction of Paperwork and Controls  Revenue Generation Elimination of Contraband and Illegitimate Trade

Malaysia as a pilot ASEAN includes world’s richest to poorest Malaysian Customs are current pilot Malaysian revenues up and fraud down All 10 countries DGs of Customs attend Peer group learning and implicit pressure ASEAN part of APEC

APEC Shanghai Model Port Project 2001 APEC Leader Conference in Shanghai In 1999 GM, Ford, FedEx, Microsoft, Proctor & Gamble, Applied Materials, Mattel, Oracle, GE, HP, UPS, DHL, TNT signed-up to JV project 12 APEC Sub-Committee Customs Procedures collective action plan items as the core for :- 1) Establishing an Express Handling Centre 2) Advanced Training and 3) IT systems upgrade

Key areas for improvement in Shanghai Model Port Project  Implement more flexible hours for customs clearance.  Automate clearance for all express consignments by using Customs Clearance EDI system.  Ensure trade and tariff policies are carried out consistently in all regional Chinese Customs Bureau  Improve communications between Express Carriers and Customs. Implement the principles of the WCO Immediate Release Guidelines and the Kyoto Convention Improve transparency of customs procedures, via a web site. Implement world standards in the new Pudong Express Handling Centre.  Adopt UN EDIFACT for the EDI system in the Express Handling Centre.  Adopt WTO Valuation Agreement and apply valuation principles. Improve their Risk management techniques.

Shanghai summary Potential to enable Shanghai to open world- class facility in 2003 Potential for replication within China and elsewhere in APEC Continuing challenges in keeping deadlines Conclusion….so far, so good.

Overall Conclusions Is it enough? IECC members are largest customers of Customs Customers are increasingly shippers of high- value, time sensitive goods Effective & efficient Customs essential if Express industry is to enable global commerce IECC/WCO MOU : co-operation and training at global, regional and national levels

Recommendation to WTO But, WCO lacks enforcement powers And, many national Customs are still underpaid/corrupt and inefficient WCO revised Kyoto convention has trade facilitation in obligatory general annex RECOMMENDATION: WTO adopt revised Kyoto convention to assist enforcement of trade facilitation