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Corridor/Border Management: examples from outside the Caucasus

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Corridor/Border Management: examples from outside the Caucasus Gerald Ollivier Transport Specialist Overview Time as a trade barrier Corridor Approach Integrated ... – PowerPoint PPT presentation

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Title: Corridor/Border Management: examples from outside the Caucasus


1
Corridor/Border Management examples from outside
the Caucasus
  • Gerald Ollivier
  • Transport Specialist

2
Overview
  • Time as a trade barrier
  • Corridor Approach
  • Integrated Border Management and Single
    Electronic Window

3
Developing countries are moving up the technology
ladder(GEP 2004)
Low income countries Share of exports, 1981-2001
(percent)
Middle income countries Share of exports,
1981-2001 (percent)
4
Time is a Trade Barrier (1)
  • Trade occurs in physical space and moving goods
    requires time.
  • Trade logistics costs are as important as tariffs
  • Each day saved is equivalent to 0.5 tariff
    (Hummels)
  • 7 of value of world trade is cost of
    administration of trade logistics (UNCTAD)
  • Time/reliability/adaptability more important in
    multi-stage production (global supply chain)
  • of vertical specialization in trade (use of
    imported inputs for exports) has grown 30 in the
    past 20 yrs and accts for half of overall trade
    growth.
  • Willingness to pay to save time
  • Share of airfreight in US grew from 7 in 65 to
    30 in 98
  • Airfreight 7 times as expensive as ocean shipping.

5
Time is a Trade Barrier (2)
  • Imagine if the contents of a ship can be
    processed in half a day instead of a day or a
    truck can do 6 roundtrips instead of 2 a month
  • Infrastructure capacity increased
  • Twice the cargo, twice the of ships serviced,
    twice the number of containers, increased harbor
    fees, considerably lower cost to traders
  • even more benefits
  • These efficiencies offer wider attraction to
    trading partners
  • Efficiency in vessel turnaround attracts new
    trading, market center, distribution business.

6
Time is a Trade Barrier (3)
  • A wide-body jet can carry fresh produce from
    supplier in one hemisphere to the buyer in the
    other hemisphere on the same or next day.
  • BUT it can take 10 days to
  • Process orders
  • Obtain customs and border agency approvals
  • Book and schedule transport and distribution
  • Obtain payment approvals
  • Complete the transaction
  • This means removing 10 days from the selling
    season, revenue that cannot be replaced

7
Corridors
  • Definition
  • A linear system of transport infrastructure and
    related services connecting centers of economic
    activity and bounded by transport gateways which
    provide access to sources and destinations
    outside the corridor
  • Construction
  • Corridors are usually created through
    back-to-back bilateral agreements which are
    framed for international or regional protocols
  • Management
  • Corridors are not managed in an operational sense
    as most of the activities are performed by
    individual logistics service providers operating
    in the private sector. The important management
    function is coordination of policies between
    adjoining countries

8
Examples
  • West Bengal
  • GMS
  • Maputo
  • Transkalihari
  • North Borneo
  • Northern Corridor
  • EWEC
  • Asian Highway
  • Can-Mex

9
Corridor Components
  • Physical
  • Gateways and Border Crossings
  • Designated Routes, Single and Multimodal
  • Regulatory
  • Trade and Transit Policy
  • Cargo Inspection and documentation
  • Security, Entry and Enroute
  • Transport Services and Equipment
  • Cargo Ownership
  • Liability and Arbitration Rules
  • Duties and Taxes
  • Cost Recovery Mechanism

10
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11
Functions
  • Access to Landlocked Countries
  • Integrate Trading Communities
  • Economic Development Corridors
  • Coordinate Infrastructure Development
  • Control Smuggling

12
Corridor Economic Benefits
  • Domestic Transport Services
  • Complementary Logistics Services
  • Toll Revenues/user charges
  • Trade Facilitation
  • Regional Economic Development

13
Inhibitors to Trade Facilitation
  • Traditional Practices
  • Lack of Transparency
  • Technical Controls
  • Regulations
  • Paper Documents
  • Payment Methods
  • ICT and E-Commerce Infrastructure and Experience
  • Physical Space and Capital
  • Costs of Admin/logistics 14
  • Customs-Centric Systems but other agencies
  • Customs only 15 of Trade Data
  • Post 911
  • Cultural Issues

14
Integrated Border Management
  • Enhancing services to users
  • WTO TF discussion
  • Geneva/Kyoto Conventions
  • Organizing processing by function (an agency can
    apply regulations for another one at low cost)
  • Coordination across border (joint crossing
    points)

15
Source M. Zarnowiecki
16
Principles of Electronic Trade Facilitation
  • Electronics Replaces Paper
  • Reengineer Processes Codes and Standards
  • Upgrade Customs ICT Systems and Processes
  • Transparency
  • Electronic Payment
  • Pre and Post Event Audits
  • Container Scanning
  • Straight-Through Processing
  • Risk Management
  • Create Facilitation Agency
  • Provide a Gateway to Customs Systems
  • Automate Communities

17
Single Window
  • A facility providing standardized information and
    documents with a single body to fulfill
    requirements for import, export and transit
    regulations and clearance.
  • Expedite and simplify information flows between
    trading community and the government

18
SEW Success Factors
  • High political mandate (Tunisia)
  • First detailed analysis, followed by process and
    documentary reengineering/streamlining with all
    key players (border agencies, transport,
    traders)
  • Baseline indicators and performance measurement
  • Needed minimum infrastructure
  • Facilitating exchange of information Common and
    intelligent network, international
    standards,regulatory framework for e-signature

19
Models of Single Window
  • Single Authority
  • Sweden, Sokhna for its clients
  • Single automated system for the collection and
    dissemination of information
  • Integrated system data is processed through the
    system (USA)
  • Interfaced system data is sent to the agency for
    processing (Tunisia, but elements of
    transactions)
  • Combination of the above
  • Automated information transactions system
  • Singapore, Mauritius

20
ICT reduces Time and Increases Efficiency -
Examples
  • Mauritius Trade Net has reduced average clearance
    times of goods from 4 hours to 15 minutes
  • Tunisie Trade Net (TTN) has reduced processing
    times of trade documents from max of 18 to 7 (3.5
    days in cases not requiring technical controls).
  • Time savings in Singapore (STN) translate into 1
    of GDP per year.

21
Implementation Approach
  • Phased Approach
  • Complexity
  • Quick wins to secure confidence
  • International Standards (UN EDIFACT, WCO Data
    Model, etc.)
  • International information exchange requires
    standards
  • Pilot users
  • Surveys / evaluation / fine tune
  • Implementing body

22
Issues
  • Trade Processes - Chain effect
  • As good as weakest link in the chain
  • Benefits only visible when everything works
  • Complex
  • Many details that must fit together
  • Resistance to change
  • Organizational
  • Shift from paper to electronic processes
  • Prepare to manage project risks
  • -Multiple activities / issues to address
  • Inter-institutional dependencies

23
Players in the Trade Value Chain
  • Importer/Exporter
  • Trade Professionals
  • Customs Broker
  • Freight Forwarder
  • Shipping Agent
  • Container Terminal
  • Ports and Harbours
  • Storage
  • Transport
  • Shippers
  • Customs
  • Revenue
  • Technical Controls
  • PIAs
  • Cert. of Origin
  • PSI
  • Legal Invoices
  • Banks
  • Insurers
  • etc.

24
Pay Taxes Clear Customs Release Goods
IMPORT
MANUFACTURING/ VALUE ADDED
EXPORT

Air, Sea, Land International Transport
DOMESTIC SUPPLY CHAIN
/Dues
Storage
Customs
Port
Raw Materials Packaging Transport Storage
  • Port Processes
  • Internal Transport
  • Storage
  • Container Handling
  • Loading

Ships Documents
Informal Processes
IMPORTER
  • Manifest
  • Bills of Lading
  • Sea/AW Bill
  • Container Plans
  • Quotations
  • P.O.s
  • Delivery Notes
  • Con. Notes
  • Invoices
  • Statements
  • Invoice
  • Packing List
  • Declaration
  • Delivery Note
  • Payments
  • Remittance
  • Advice

Book/Confirm Transport
Shipping Documents
Pay Taxes Clear Customs Release to Port
/Dues
Foreign Chambers Commerce
  • Certificates
  • Of Origin

MANUFACTURER
Port
Port
Customs
Customs
  • P.O.
  • Contract Terms
  • Delivery Instructions
  • L.O.C.

Informal Processes
  • Invoice
  • Packing List
  • Declaration
  • Delivery Note

Receive Goods
Overseas Embassies
  • Legal
  • Invoices

EXPORTER
FOREIGN BUYER
Post/ Courier
  • Certificates
  • Of Origin
  • Form A
  • EUR.1

Chamber of Commerce
Finance Ministry
Pay
Bank
Bank
  • Licenses
  • Certificates
  • Government
  • Approvals
  • Licenses
  • Certificates
  • Government
  • Approvals

Government Departments
L.O.C. Packing List Invoice
LOC Approval
LOC Courier
25
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26
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27
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28
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29
Trade Facilitation Network
1
30
Port Computerized Systems Some examples
  • Spain ? Portal Servicios Telemàticos
  • UK ? CNS Port Community Systems and Martime
    Cargo Processing
  • Germany ? DAK OSYS
  • Belgium ? DEAGHA
  • Netherlands ? PCR
  • France ? ADEMAR 2000/PORTIS 2001
  • Singapore ? PORTNET
  • Finland ? PORTNET

31
GFP A knowledge resource
  • Knowledge Dissemination with UNTF (www.gfptt.org)
  • Over 200 Reference Documents now on the GFP
    website
  • About 50 Topics maintained by Core Partners open
    for your contributions

32
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33
Thank you!
  • Gerald Ollivier (golliver_at_worldbank.org)
  • GFP Website www.gfptt.org
  • (to register as a partner click on Become a
    Partner on the home page as an individual, click
    on Register as a person)
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