tom butterly presentation 25th august2006 001

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Published on May 8, 2008

Author: Virginia

Source: authorstream.com

Trade Facilitation Trends Tom Butterly Deputy Chief, Global Trade Solutions United Nations Centre for Trade Facilitation and Electronic Business (UN/CEFACT) :  Trade Facilitation Trends Tom Butterly Deputy Chief, Global Trade Solutions United Nations Centre for Trade Facilitation and Electronic Business (UN/CEFACT) Agenda:  Agenda Trade Facilitation work at UNECE Trade Facilitation and the WTO UN/CEFACT Standards and Tools International Trade Single Window UN Economic Commission for Europe (UNECE) :  UN Economic Commission for Europe (UNECE) What is Trade Facilitation:  What is Trade Facilitation Facilitate - to make easy or easier Trade Facilitation: “The simplification, standardization and harmonization of procedures and associated information flows required to move goods from seller to buyer and to make payment “ Why is UNECE involved:  Why is UNECE involved UNECE’s objective in international trade: to facilitate and strengthen the integration of member States, and especially countries in transition, into the European and global economy Trade Facilitation is a key tool of UNECE to achieve this objective UN Millennium Development Goal 8 United Nations Centre for Trade Facilitation and Electronic Business - UN/CEFACT What are the Benefits:  What are the Benefits Estimates vary from 1-15% of total trade transaction costs Even if only 1%, OECD estimates total gains to world economy of US$40, billion APEC estimates gains of US$46 billion from trade facilitation measures - adopted TF as key policy target. Trade Facilitation is a key element in competitiveness and investment United Nations Centre for Trade Facilitation and Electronic Business (UN/CEFACT):  United Nations Centre for Trade Facilitation and Electronic Business (UN/CEFACT) Vision: Simple, Transparent and Effective Processes for Global Commerce Open to all UN Member States and Organisations Recognised by ECOSOC Global Mandate Over 400 international experts from government and industry – meets worldwide Trade Facilitation Negotiations at the WTO (Doha Round):  Trade Facilitation Negotiations at the WTO (Doha Round) OBJECTIVES: “clarify and improve relevant aspects of Articles V, VIII and X of the GATT 1994 with a view to further expediting the movement, release and clearance of goods, including goods in transit” (July Package, Annex D) Recognizing Special and Differential Treatment (SDT) for developing countries and LDCs: Entering into commitments related to their implementation capacities (CB and TA, investment in infrastructures...) Beyond traditional SDT (pure exemptions, transition periods, differentiated non-reciprocity) Trade Facilitation Negotiations at the WTO (Doha Round):  Trade Facilitation Negotiations at the WTO (Doha Round) Objective: “clarify and improve relevant aspects of Articles V (Transit of Goods), VIII (Fees and Formalities) and X (Publication and Administration) of the GATT 1994 with a view to further expediting the movement, release and clearance of goods, including goods in transit” (July Package, Annex D) Special and Differential Treatment (SDT) and Technical Assistance for developing countries and LDCs Over 100 proposals Suspension of the negotiations Political will UN/CEFACT Standards and Recommendations:  UN/CEFACT Standards and Recommendations Over 30 Recommendation, many of which are ISO Standards and several are covered in the WTO TF Negotiations Recommendation 1 - UN Layout Key for Trade Documents (ISO 6422) Recommendation 25 - UN/EDIFACT (ISO 9735) UNTDED (ISO 7372) – CCTS - WCO Customs data model Recommendation 33 - Single Window UNeDocs - IDS Recommendation 4 on TF Structures Slide11:  Process Analysis Process Simplification and Harmonization National Data Harmonization Cross Border Data Exchange Single Window UMM, GFP Audit Methodology, etc Business/Political Process Collaboration Between Trader and Government (UN/CEFACT Rec 4, Rec 18) UN Layout Key, Master Document, UNTDED, TF Toolkit and Forms Repository UNTDED, CC, UN Locode, code lists, UNeDocs, Rec 34 UNeDocs, WCO DM, CBRDM Rec 33, 34,35 Document Simplification and Standardization STEP BY STEP PATH TO PAPERLESS TRADE Slide13:  Rec 3: ISO Country Code Rec 16: UN/Locode Rec 19: Mode of Transport Rec 9: Currency Code Rec 20: Units of Measurement Rec 21: Package Codes United Nations Standards for Trade Documents… SAD:  United Nations Standards for Trade Documents… SAD Slide15:  XML Exporter Importer PAPER Importers Bank EDIFACT F Forwarder HTML/PDF Electronic Signature Document Validation Electronic Post Mark Language switching National Requirements Time Stamping…. Digital Document Web Services Office PC Standard user software, Internet Browser Back-end Server UNeDocs Trade & Transport Documents Security, efficiency, speed, best business practice, ICT integration Adds Provides specialised services Cost Recovery basis Internet UNeDocs International Trade Single Window to enhance the efficient exchange of information between trade and government :  International Trade Single Window to enhance the efficient exchange of information between trade and government Submission of Trade Documents The current situation:  Submission of Trade Documents The current situation Single Window Approach:  Single Window Approach a simple, one-stop solution offering official control with trade facilitation UN/CEFACT Single Window Recommendation Calls on Governments to establish a Single Window with the following features::  UN/CEFACT Single Window Recommendation Calls on Governments to establish a Single Window with the following features: Allow traders to lodge standardized information and documents with a single entry point to fulfil all import, export, and transit-related regulatory requirements If information is electronic then it need only be submitted once Allow for the sharing of information amongst government agencies in respect of international trade transactions Recommendation 33 (continued)::  Recommendation 33 (continued): Provide coordinated controls and inspections of the various governmental authorities. Allow payment of duties and other charges Be a source of trade related government information Recommendation includes a set of Guidelines for the establishment of a Single Window Diversity of SW models: adopting to specific national/regional conditions and requirements :  Diversity of SW models: adopting to specific national/regional conditions and requirements Financing By the State (Finland, Sweden, United States), By the private sector (e.g. Guatemala, Germany) private-public partnership (e.g. China, Malaysia, Mauritius, Senegal, Singapore) The use of Single Window compulsory (Finland, Guatemala, Mauritius, Senegal) voluntary (China, Germany, Malaysia, Sweden, United States) Services Free on charge (Finland, Sweden, United States) Paid based on various payment schemes (Guatemala, Germany, China, Malaysia, Mauritius, Senegal, Singapore) Costs and Benefits of a Single Window:  Costs and Benefits of a Single Window Benefits for government and trade Faster processes, clearance and release Reduced costs of compliance Reduced corruption Reduction in bureaucratic processes Better collection of government revenues Improved trader compliance risk management techniques for control and enforcement purposes Predictable application and explanation of rules Implementation costs From less than one million US dollars (Guatemala) to Between 1and 4 million dollars (Finland, Senegal, Malaysia). In the US, the cost was significantly higher but the system is quite extensive and covers many additional areas. Benefits outweigh costs …… Main obstacles in implementation:  Main obstacles in implementation Changing the established business and State practices (Malaysia, Senegal, Singapore, United States) Establishing cooperation and commitment of various state authorities involved in import/export procedures (Finland, USA) Modernizing the technologies currently used by the State and the private sector (Guatemala), and small and medium-sized enterprises, in particular (Sweden). Key factors for success:  Key factors for success Strong leadership, which can come from the private (Guatemala) or the public sector (Malaysia, Senegal, United States, Singapore, Korea, Australia) Cooperation and commitment of all stakeholders, private and public (Finland, Mauritius, Malaysia, Senegal, United States, Singapore) User-friendly system, which do not create complications for usual business procedures (China, Malaysia, Sweden, Senegal, United States) Investments in modern technologies (Guatemala, Malaysia) Phased, flexible approach (Germany, Mauritius, Singapore) UN/CEFACT SW REPOSITORY Overview of existing Single Window facilities in::  UN/CEFACT SW REPOSITORY Overview of existing Single Window facilities in: Finland Germany Guatemala Hong Kong SAR (China) Mauritius Japan Malaysia Senegal Singapore Sweden United States Ghana More case studies to come ……. Next Steps for UNECE …:  Next Steps for UNECE … Establishment of Single Window Stakeholder Group Development of Recommendation 34 – Data Harmonisation Development of Recommendation 35 – Legal Framework for Single indow Development of the Cross Border Reference Data Model Promote Single Window Welcome to participate in this work Summary Points:  Summary Points Trade Facilitation key element in Trade Efficiency and Economic Development UN/CEFACT instruments provide a solid foundation for implementation Single Window provides an integrated approach to trade facilitation and paperless trade Be an early implementer! Follow-up:  Follow-up All UNECE Recommendations, codes, standards and publications are available for free on our website at: www.unece.org/trade www.unece.org/cefact/ www.unece.org/etrades/unedocs/ E-mail: tom.butterly@unece.org

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