the wto trade facilitation agreement trade impact · • in wto terms tf can be understood as:...
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THE WTO TRADE FACILITATION AGREEMENT Trade Impact
FIATA WORLD CONGRESSNew Delhi, India
26 – 29 September 2018
Alejandro Gamboa-AlderWTO, Market Access Division
In this presentation
• State of play and objective of the TFA
• Cutting the Red Tape
• Current implementation of the TFA
• Issues related to the SW, the NCTF and the e-certificates
• The Road Ahead: Challenges and Opportunities
• Trade impact of full TFA implementation
TFA ENTRY INTO FORCE AND RATIFICATIONS
138 Instruments of acceptance received = 84.1%
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AlbaniaAfghanistanAntigua and BarbudaArgentinaArmeniaAustraliaAustriaBahrain, Kingdom ofBangladeshBarbadosBelgiumBelizeBeninBoliviaBotswanaBrazilBrunei DarussalamBulgariaBurkina FasoCambodiaCanadaCentral African RepublicChadChileChinaCongo, Rep. ofCote d'IvoireCosta RicaCroatiaCubaCyprusCzech RepublicDenmarkDjiboutiDominica
Dominican RepublicEl SalvadorEstoniaFinlandFijiFranceGabonThe GambiaGeorgiaGermanyGhanaGreeceGrenadaGuatemalaGuyanaHondurasHong Kong, ChinaHungaryIcelandIndiaIndonesiaIrelandIsraelItalyJamaicaJapanJordanKazakhstanKenyaKorea, Republic ofKuwait, the State ofKyrgyz RepublicLao PDRLatviaLesotho
LiechtensteinLithuaniaLuxembourgMacao, ChinaMacedonia, former YugoslavRepublic of MadagascarMalawiMalaysiaMaliMaltaMauritiusMexicoMoldova, Republic ofMongoliaMontenegroMozambiqueMyanmarNamibiaNepalNetherlands, TheNew ZealandNicaraguaNigerNigeriaNorwayOmanPakistanPanamaPapua New GuineaParaguayPeruPhilippinesPolandPortugalQatar
RomaniaRussian FederationRwandaSaint LuciaSaint Kitts and NevisSaint Vincent & the GrenadinesSamoaSaudi Arabia, Kingdom ofSenegalSeychellesSierra LeoneSingaporeSlovak RepublicSloveniaSouth AfricaSpainSri LankaSwazilandSwedenSwitzerlandTaipei, ChineseThailandTogoTrinidad and TobagoTurkeyUgandaUkraineUnited Arab EmiratesUnited KingdomUnited States of AmericaUruguayViet NamZambia
Objective of the TFA• In WTO terms TF can be understood as:
Simplification, harmonization, automation of the proceduresapplied to international trade, particularly the requirementsand formalities related to importation and exportation with aview to further expediting the movement, release andclearance of goods, including goods in transit.
• TFA Objective: “… clarify and improve relevant aspects ofArticles V, VIII and X of the GATT” in order to:– Expedite the movement, release and clearance of goods
– Improve cooperation between customs agents and other authorities
– Enhance technical assistance and capacity building for developingcountries, especially LDCs
THE RED TAPE
• Lack of information sharing between public and private entities
• Non-standardized complex processes
• Delays in shipment and transhipment operations
• Lack of traceability of documents
• Lack of reliable statistics
• Poor infrastructure, including lack of refrigerated areas,
berths and lanes
• Small and old facilities for processing cargo
• Increased volume of trade and trade operations
HOW DOES THE TFA CUT RED TAPE
AT THE BORDER FOR EASIER TRADE?
Article 1Publication & Availability
of Information
Article 2Comment
and Consultations
Article 3Advance
Rulings
Article 4Procedures for
Appeal or Review
Article 5Measures to Enhance
Impartiality, Non-Discrimination
& Transparency
Article 6Disciplines on Fees
and Charges
Article 7Release and Clearance
of Goods
Article 8Border Agency
Cooperation
Article 9Movement under
Customs Control
Article 10Import, Export
&Transit Formalities
Article 11Freedom
of transit
Article 12Customs
Cooperation
HOW DOES THE TFA CUT RED TAPE AT THE BORDER FOR EASIER TRADE?
EXTENDED AND ENHANCED TRANSPARENCY:
• Publish Information; opportunities tocomment information; advance rulings;inform the carrier/importer in case ofdetention; review/appeal procedures
RELEASE AND CLEARANCE OF GOODS:
• Pre-arrival processing; release of goodsprior to final determination of duties,fees and charges; TF measures for AO;expedited release of goods enteredthrough air cargo; prompt release ofperishable goods; acceptance of paper/electronic copies; risk managementsystems for customs control
AUTOMATED PROCEDURES:
• Advance lodging of documents in e-forms;e-payments; e-request for advancedrulings; Single Window; informationthrough internet; use of e-forms; e-requests and e-responses betweencustoms
FEES, FORMALITIES AND PENALTIES:
• Fees limited to the cost of servicesrendered; penalties imposed only toresponsible persons, commensurate withthe breach and, written explanation.
BORDER AGENCY COOPERATION:•One stop shop
https://www.tfadatabase.org/implementation
The TFA implementation rate for the entire WTO membership stands at
60.7% to date,
based on developing and LDC Members' notification as well as developed Members' commitments.
Broken down, that figure equates to:
• 100% implementation rate by developed Members,
• 59.5% among developing Members and
• 22.3% among least-developed countries.
TFA: rate of implementation commitments
https://www.tfadatabase.org/implementation/progress/map
Some issues relating to the SW and the NTCF
The Single Window (SW)Article 10.4
4.1 Members shall endeavour
• to establish or maintain a single window,
• enabling traders to submit documentation and/or data requirements
• for importation, exportation, or transit of goods
• through a single entry point
• to the participating authorities or agencies (… AND OTHERS ???)
After the examination by the participating authorities or agencies of the
documentation and/or data, the results shall be notified to the applicantsthrough the single window in a timely manner.
How to make the SW efficient?
• to establish a managing authority responsible for the SW:
– to coordinate its activities, including the permanent updates of informationconcerning import, export and transit procedures and formalities
• Allocate an autonomous budget for the SW
– To provide updated hardware and software to the agencies involved in the SWprocedures
– To provide TA and CB to the border agencies involved in the SW procedures
• To notify the WTO Committee of changes made / updates introduced to the SW
• To coordinate the integration of existing SWs
It is not a MASTODON
Could be a group of pachyderms
BUT RATHER MUST HAVE THE PARTICULARITIES OF A
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National Trade Facilitation Committees: current practices and challenges
Article 22.3: Each Member shall establish or maintain a nationalcommittee on trade facilitation or designate an existing mechanismto facilitate both domestic coordination and implementation of theprovisions of this Agreement
Consider which governmental / national agencies should participate in the NCTF
Advantages of involving the private sector in the NCTF:Who and How?
Other issues regarding the functioning of the NCTF
• How many Chairpersons and who leads the NCTF? From which agency or sector?
• Does the NCTF have funding provisions? If so from which source? Governmental, Public-Private partnership, donors?
• Does the NCTF have a Technical Secretariat? If so what functions? Logistics, record keeping, facilitate cooperation and coordination, review and comment policies and strategies, collect and analyse data?
• Establish a Road Map and follow it!!
Main challenges when establishing a NCTF
• Getting the right membership/participation
• Adequate mandate and functions
• Lack of support and engagement
• Lack of resources (human & fund)
• Lack of awareness and understanding of its importance and of
the TFA
• Formal approval and legal procedures
• Effective coordination
OWNERSHIP!!!!
ON THE WAY TO E-CERTIFICATION Additional work to facilitate Safe Trade
(by the Standards and Trade Development Facility (STDF))
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What is an SPS E- Cert?
E-cert
EXPORTING COUNTRYCOMPETENT AUTHORITY
IMPORTING COUNTRYCOMPETENT AUTHORITY
Certification processInspection procedure, testing,…
Import proceduresInspection, release,…
Sending certificate
Receiving certificate
Extracted from: Presentation of J. Koh (STDF Seminar on e-cert), 2016
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The authenticated, non-repudiative and secure electronic transmission of SPS certification data
(including the certifying statement) from one competent authority to another
Advantages of electronic certification
Integrity
Efficiency
Security & compliance
Productivity
• Online application and processing• Faster processing through pre-validation• Faster processing cuts clearance time
• Very difficult to forge• Improved compliance with policies and procedures• Online verification for third parties / importing nations
• Single view of all relevant information• Searchable database with all certificates• Simple maintenance of forms
• Electronically secured certificates• Cross-checking in real time• Single national register of certificates
Extracted from: Presentation of J. Koh (STDF Seminar on e-cert), 2016
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Other e-Initiatives
CODEX COMMITTEE ON FOOD IMPORT AND EXPORT INSPECTION (CCFICS): Working Group to assess and review existing guidance on e-certification concerning food safety
Organisation Internationale des Épizooties (OIE): reviewing gaps in standards and guidelines on e-certification concerning animal
To conclude
THE ROAD AHEAD: Challenges and Next Steps
FOR MEMBERS
• Establish the NationalCommittees on TF
• Developing and least-developedCountries:
– Accelerate ratification processes
– Implement and follow-up the provisions notified in Category A
– Determine type of TArequired, and prepare andsubmit Category B and Cnotifications
PRIVATE STAKEHOLDERS• Create awareness of compliance
obligations
• Establish/improve Risk Management Systems
• Encourage and coordinate NCTF participation
• Encourage and develop familiarity with the requirements to apply and benefit from TF measures for AO and expedited shipments
• Develop tools and infrastructure to adapt to any future adjustments
What else? • Political will• AWARENESS among border agencies and OTHERS (ports, airports, logistics and cargo
enterprises, brokers, financial institutions, etc.)
• CO-OPERATION and COORDINATION between border agencies and other regulatory authorities (Art. 8) AND discussions within the NCTF TF is not a turf-war
• No clinical isolation! Mapping/identification of the procedures, requirements,
formalities, forms, documentation, charges, fees, controls and inspections, risk management issues, deadlines, information, deadlines, etc. related to imports, exports or transit of goods
• Use of international standards: HS nomenclature, country codes, incoterms, standard forms; WCO data models
• Change of mentality and cultural habits both in the public and private sectors
• Assessment of the TA and CB required, including human and financial resources
• Use of ICT tools
• Flow of Information between all agencies and stakeholders and private/public partnership
• Permanent update and simplification of forms, formalities, requirements, access, SW, etc.
UPON FULL TFA IMPLEMENTATION:
• Members’ trade costs will be reduced by 14.3%• Time to import goods will be reduced by over 1.5 days• Time to export goods will be reduced by almost 2 days• All in all: a reduction of 47% and 91%, respectively, of current
average time
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Online resources
