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SUPPLY CHAIN SECURITY AND TRADE AND ROAD

TRANSPORT FACILITATION:FROM VISION

TO REALITY

JORDANIAN EXPERIENCE

JAMIL MUJAHED

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•Jordan has played an important role in

serving as a transit country within the Middle

East Region. It contributed to enhancing the

regional economic development and

cooperation through the facilitation of

movement of passengers and goods through

its borders.

•The numbers of Large Trucks (20 Ton GVW

and more) reached approximately 16,000

vehicles.

• Jordan has a well-developed road-network,

with over 28781 Km of highways and 4221 Km

of secondary roads.

Transport Facilitation and Security

Transport facilitation is a part of trade facilitation and may be defined as the simplification and harmonization of international transport procedures and the information flows associated with them.

Its objective is to increase efficiency by performing complex operations as rationally as possible while keeping a delicate balance between the requirements of the transport industry and the national economy, on the one hand, and the necessity to conform with indispensable governmental regulations relating to national health and security, customs duties and taxes, etc., on the other.   

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Trade and Transport Facilitation provides important benefits:

Increase trade competitiveness through better logistics, border

management, and availability of services for overall improved supply

chain performance Result is better cash flow, lower risk, just in time

delivery, and more market opportunities (volume and diversification)

Trade and Transport Facilitation

Supply chain security

Supply chain security refers to efforts to enhance the security of the

supply chain It combines traditional practices of supply chain management

with the security requirements of the system, which are driven by

threats such as terrorism, piracy, and theft. Typical supply chain

security activities include:

• Credentialing of participants in the supply chain.

• Screening and validating of the contents of cargo being shipped.

• Advance notification of the contents to the destination country.

• Ensuring the security of cargo while in-transit via the use of locks and

tamper-proof seals.• Inspecting cargo on entry

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Barriers To Trade

The key barriers to trade include:

• Lack of international electronic trading standards

• Protection of markets

• Bureaucratic border controls

• Poor infrastructure

• Criminal activity

• Lack of training.

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Jordan Major Activities and Projects in Transport and Trade Facilitation

Like most countries with numerous international borders, Jordan

has adopted a number of different approaches to managing

domestic and transit traffic and cargo over recent years.

Developing a secure and more facilitative approach to domestic

and transit traffic and cargo has been a high priority for Jordan to

reduce import and export duration, facilitate trade across borders

and improve Jordan’s global competitiveness ,improved supply

chain security ,and full compliance with international obligations .

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Electronic transit monitoring and facilitation system

The idea of using tracking technology to manage the transit trade in

Jordan was first introduced in 1997 along with a centralized video

monitoring system.

The Jordan Customs electronic transit monitoring and facilitation

system is a pioneer model and to date, a very successful

replacement for the escort system. It has proven it can increase

supply chain security, reduce costs and facilitate the movement of

goods across borders.

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Electronic transit monitoring and facilitation system

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Electronic transit monitoring and facilitation system

The introduction of this system has proven to be very useful:

The need to escort transit trucks has been reduced by more than

90 % •

Transit trade across Jordan has been increased by more than 80 %

Security has been enhanced with more control over the trucks

while they are in Jordan.

Reduces the waiting time for the containers at Aqaba port.

Transit journey time has been reduced by more than 60 % .

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SINGLE WINDOW FOR JORDAN CUSTOMS

To comply with the requirements of international trade, the import and export companies operating in Jordan have to prepare and submit a large volume of information and documents to the government regulatory agencies. The information and documents are provided, either manually or electronically, to a number of different agencies; incurring additional costs which may constitute a significant burden on both the government and the business community.

One method to address this problem is to utilize single window processing through which information and/or documents related to imports and exports are submitted once, and disseminated to all concerned parties.

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SINGLE WINDOW FOR JORDAN CUSTOMS

To strengthen the framework of the single window in Jordan,

agencies are signing memoranda of understanding (MOUs) with

Jordan Customs.

The intent of the MOUs is to organize the cargo processing within

the single window framework, specifically with regard to the

management, operational coordination, and information exchange

functions, in order to achieve a single window that is consistent

with international standards and contributes to reducing the time

and cost associated with import and export operations.

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SINGLE WINDOW FOR JORDAN CUSTOMS

And the MoUs have addressed key issues, which can be summarized as follows:

• Jordan Customs shall assume the duty of the administrative supervision on the activities of the parties participating in the single window at the border

• Agreement to exchange data and information between the participating agencies and develop a vision for that

• Adoption of the customs clearance system "ASYCUDA" for the purposes of the exchange of risk management data and information for each agency.

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ASYCUDA SYSTEM ASYCUDA is a computerised customs management system which

covers most foreign trade procedures.  The system handles manifests

and customs declarations, accounting procedures, transit and

suspense procedures.

Since the launch of ASYCUDA system in 1999 in Jordan, use of paper

has been dramatically reduced. During the Customs Department’s

endeavor to utilize a computerized customs system, "ASYCUDA" has

been taken into account to review and reform of procedures for

development. In other words, reengineering of procedures that lead to

simplification and facilitation of such measures for importers and

stakeholders alike.

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ASYCUDA SYSTEM

Most important achievements of the ASYCUDA system led to :

• Significant reduction in paper use.

• Simplify and standardize the procedures.

• Building integrated tariff tables.

• Adoption and integration of international codes in the ASYCUDA.

• Utilize the principles of risk management procedures in the

system.

• Enacting relevant provisions for the exchange of data .

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The Golden List Program

The Golden List Program was designed to create an environment that promotes and recognizes self-regulating companies that are low risk for noncompliance with tariffs and nontariff regulations and that can effectively exercise supply-chain security measures.

Overall, it was a fundamental step in achieving self-regulation. To do this, the project had to build private sector capacity to demonstrate documented due diligence, assist the JC in recognizing low-risk and compliant companies, and develop the auditing capacity and staff within the JC.

From 2006 to 2008,the number of days it takes to export out of Jordan dropped from 28 days to 19 days, while import time dropped from 28 days to 22 days on average.

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The Golden List Program

Targeted sectors are Supply chain companies that resist in Jordan, working in international trade that reveals the standards and conditions of the program and working in the following sectors :

• Import

• Export

• Transport

• Brokers

• QIZ

• Warehouses

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Golden List Program Benefits

• Expanding green-lane routed cargo.

• Benefiting from pre-clearance service for all materials.

• Immediate release of financially guaranteed cargo prior to declaration filing or processing.

• Direct clearance of truck cargo for import/export companies and QIZ

• Assigning priority to process declarations pertinent to import/export companies and QIZ.

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Thank YOU

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