Technical Assistance

1
Technical Assistance Capacity Building in Trade
Facilitation

• WTO Workshop
• 10 11 May 2001
• Julian Oliver, IECC ICC

2
IECCThe 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 Fs
• fast, faster, fastest, free, freer, freest

3
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

4
Express facts and figures

• gt 220 countries
• gt 750,000 people
• gt 1200 aircraft
• gt 1350 daily flights
• gt 10 million packages cleared each DAY
• gt 55 billion revenues in 2000
• gt 50 billion paid in duties taxes

5
Buoyant Growth Industry

• IECC lt 20 years young
• Double-digit volume growth rates
• Boeing 18 pa growth 1995-2015
• McKinsey forecast that 80 of Mgd goods will
  cross borders by 2010
• Ecommerce turbo-charging express
• Express is enabler of global commerce

6
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

7
An Audit Methodology forTrade 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

8
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 2020
• 20 years is a long time but not unrealistic for
  Myanmar, Laos, Cambodia Vietnam

9
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

10
Malaysia as a pilot

• ASEAN includes worlds 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

11
APECShanghai 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

12
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.

13
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.

14
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

15
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