Mainstreaming e-GovernmentMainstreaming e-GovernmentThe Case of Trade FacilitationThe Case of Trade Facilitation

Hamid AlaviHamid AlaviFinance, Private Sector and Infrastructure GroupFinance, Private Sector and Infrastructure Group

Middle East and North Africa RegionMiddle East and North Africa Region

April 26-27, 2005April 26-27, 2005

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•Manifest•Bills of Lading•Sea/AW Bill•Container Plans

•Invoice•Packing List•Declaration•Delivery Note

Storage

Air, Sea, LandInternational

TransportCustoms Port

Pay TaxesClear CustomsRelease Goods

Ship’sDocuments

•CertificatesOf Origin

•Licenses•Certificates•Government Approvals

Chamber ofCommerce

ForeignChambersCommerce

OverseasEmbassies

Post/Courier

•“LegalInvoices”

DOMESTICSUPPLY CHAIN

Raw MaterialsPackagingTransportStorage

•Quotations•P.O.s•Delivery Notes•Con. Notes•Invoices•Statements

•Payments•Remittance Advice

IMPORTER

MANUFACTURER

EXPORTERFOREIGNBUYER

IMPORT

•Licenses•Certificates•Government Approvals

•Certificates Of Origin•Form A•EUR.1

GovernmentDepartments

FinanceMinistry

Port

•Invoice•Packing List•Declaration•Delivery Note

Customs

“InformalProcesses”

Pay TaxesClear CustomsRelease to Port

InformalProcesses

Port Processes•Internal Transport•Storage•Container Handling•Loading

Port Customs

MANUFACTURING/ VALUE ADD EXPORT

ReceiveGoods

Bank

•P.O.•Contract Terms•Delivery Instructions•L.O.C.

PayBank

L.O.C.Packing ListInvoice LOC Courier

LOC Approval

ShippingDocuments

Book/Confirm Transport

/Dues

/Dues

3

Consignee/Trade

Professional

CED

2. ArrivalNote

3.Original

BOL

Importer Pays1. Doc’t Handling Fee2. THC

4.Commercial

Invoice

5.THC

Receipt

7.Letter of Attorney

Consignee/Trade

Professional

KAMSAB

Importer Pays3. KAMSAB Delivery Order (D.O.) Fee

12. KAMSAB

D.O.

13. KAMSAB Receipt

1. Import Permit

2. ArrivalNote

11. Trucking

Order

18.SGS

Certificate

19.Customs

Declaration

6.Letter of

Guarantee

8.Copy BOL

Docs: 2-5and 7-8.

9. Letter

Authority

10. Release

Instruction

ShippingLine

Consignee/Trade

Professional

SGS PSI

18. SGS

Certificate

Docs:3-4,6-9 and 12

14. Packing

List

15.VAT

Certificate

16. Insurance Certificate

1. Customs

Permit

17. SGS/Permit

Authorisation

CED

Importer Pays4. Import Duty5. Document Fees6. (Late Lodgement Fine)

19Customs

Declaration

20Document

Fee Receipt

21.Import Duty

Receipt

22InspectionCertificate

23Customs

Release Note

CamControl

Importer Pays7. 0.1% Inspection Fee8. Document Fees

Port Office

Importer Pays9. Port Entrance Fee10. Cargo Handling Fee11. Road No.4 Security Fee

Economic Police

Docs: 1,3,4,6-9, 12, 14-18

24Sancert(if req’d)

25Document

Fee Receipt

26Inspection

Fee Receipt

27Inspection

Report

28SurveyReport

29Survey

Record of Contents

Docs:6-9,

11-12

30Delivery

List

31Port Entrance Fee Receipt

32Cargo Handling

Receipt

33Road No. 4

SecurityReceipt

12KAMSAB

D.O.

Importer Pays12. Port Exit Fee

34Exit

Permit

35Port Exit

Fee Receipt

Scanning;Repeat

Processes forIrregularities

Goods to Consignee

Diagram 2.1 IMPORT PROCESSES, DOCUMENTS AND FEES

Flow of DocumentsFlow of Documents

Customs

Customs Brokers

CargoHandling

Port Authority

Traders

Ministry ofCommerce

Freight Forwarders

Shipping Agents

Banks

Figure A

CustomsCustoms

Customs Brokers

CargoHandling

Port Authority

Traders

Ministry ofCommerce

Freight Forwarders

Shipping Agents

Banks

Figure A

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Trade Facilitation NetworkTrade Facilitation Network(Single Window)(Single Window)

1

Customs

Customs Brokers

CargoHandling

Port Authority

Traders

Ministry ofCommerce

Freight Forwarders

Shipping Agents

Banks

EDI Server

Figure B

CustomsCustoms

Customs Brokers

CargoHandling

Port Authority

Traders

Ministry ofCommerce

Freight Forwarders

Shipping Agents

Banks

EDI Server

Figure B

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Processing of TCE

2 - 3 D

1 D

0 Goods Arrival

Validation, Amendments, Data Capture of Manifest

2 D

Deliver Manifest hardcopy to Customs and STAM

1/4 D

Goods discharged from vessel

STAM submits hardcopy report of unloaded cargo discrepancies to ship agent

2 - 4D

Shiping Agent reconciles discrepancies regarding cargo unloaded

2 - 5 D

1/2 D 1 -2 D

Shipping Agent delivers final manifest to Customs and STAM

Importer / Broker prepares customs declaration.and delivers to Customs

2 - 3 D Importer / Broker picks up processed declaration.

1 D

Payment of customs duty, storage charges and port dues

0 - 2 D

Confirmation of goods landed byShipping Agent and issue of delivery note

Goods removed from port area

1/4 D 15 mins

Prior to Trade Facilitation Initiative

1 2 3 15 10 5

After Trade Facilitation Initiative

Days

Figure C

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Implementation ApproachImplementation Approach

Phased ApproachPhased Approach– ComplexityComplexity– Quick wins to secure confidenceQuick wins to secure confidence

International Standards (UN EDIFACT, etc.)International Standards (UN EDIFACT, etc.)– International information exchange requires standardsInternational information exchange requires standards

Pilot usersPilot users– Surveys / evaluation / fine –tuneSurveys / evaluation / fine –tune

Implementing body Implementing body

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IssuesIssues Trade Processes - Chain effectTrade Processes - Chain effect

– As good as weakest link in the chainAs good as weakest link in the chain– Benefits only visible when everything worksBenefits only visible when everything works

ComplexComplex– Many details that must fit togetherMany details that must fit together

Resistance to changeResistance to change– Organizational Organizational – Shift from paper to electronic processesShift from paper to electronic processes

Prepare to manage project risksPrepare to manage project risks-Multiple activities / issues to addressInter-institutional dependencies

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Success FactorsSuccess Factors Commitment at the highest level of government Commitment at the highest level of government CooperationCooperation among private sector operators and various among private sector operators and various

government stakeholders at all stages of the processgovernment stakeholders at all stages of the process adoption of a regulatory framework that allowed for electronic adoption of a regulatory framework that allowed for electronic

processing and signature processing and signature simplification of customs requirements simplification of customs requirements extension of electronic processing to all import and export extension of electronic processing to all import and export

administration and other agencies involved in trade transactions administration and other agencies involved in trade transactions adoption of internationally recognized standards and codes in adoption of internationally recognized standards and codes in

order to ensure a common language among different users and order to ensure a common language among different users and in different countries in different countries

aligning the relative costs of processing paper documentation aligning the relative costs of processing paper documentation and on-line processing.and on-line processing.

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THANK YOU !THANK YOU !