Trade & Transport Facilitation Trade & Transport Facilitation Committee - PakistanCommittee - Pakistan

JAVAID MANSOORJAVAID MANSOORExecutive SecretaryExecutive Secretary

NTTFCNTTFC

UNECE/UNCTAD Workshop 31 Oct – 1 Nov 2006UNECE/UNCTAD Workshop 31 Oct – 1 Nov 2006

UNECE/UNCTAD Workshop 31 Oct – 1 Nov 2006 UNECE/UNCTAD Workshop 31 Oct – 1 Nov 2006 2 of 19

BackgroundBackground

• 1989 - World Bank Workshop – PAKPRO established• 1992-94 - UNCTAD Multimodal & Trade Facilitation

Workshop• 1995-96 - World Bank Logistics Cost Study• 1998 – World Bank funded TTFP with technical

support of UNCTAD approved and establishment of NTTFC notified

• 2001 – NTTFC Secretariat established• February 2002 - work on TTFP jumpstarts with

Project Mobilization Workshop• June 2006 - TTFP concludes• End 2006 - TTF2 to commence

UNECE/UNCTAD Workshop 31 Oct – 1 Nov 2006 UNECE/UNCTAD Workshop 31 Oct – 1 Nov 2006 3 of 19

TTFP ObjectivesTTFP Objectives

• Introduction of Single Administrative Document

• Modernization of transport legislation

• Standard terms and conditions for contract of carriage of goods

• Modernization of freight forwarders

• Modernization of marine transport insurance

• Streamlining of financial and banking provisions relating to foreign trade

UNECE/UNCTAD Workshop 31 Oct – 1 Nov 2006 UNECE/UNCTAD Workshop 31 Oct – 1 Nov 2006 4 of 19

TTFP ObjectivesTTFP Objectives

• Review of international conventions related to Customs, trade and transport

• Establishment of an operational trade point

• Study for promotion of refrigerator transport and cold storage of fresh procedure

• Institutional strengthening of NTTFC

• Development of local training managers in trade facilitation

Continued

UNECE/UNCTAD Workshop 31 Oct – 1 Nov 2006 UNECE/UNCTAD Workshop 31 Oct – 1 Nov 2006 5 of 19

Constitution of NTTFCConstitution of NTTFC

1. Ministry of Commerce2. Ministry of Communications3. Ministry of Finance4. Ministry of Planning and Development5. Central Board of Revenue6. State Bank of Pakistan7. Pakistan Shippers Council of FPCCI8. National Logistic Cell9. Karachi Port Trust10. Port Qasim Authority11. PNSC /National shipowners12. Pakistan Railways13. Export Promotion Bureau14. Pakistan Horticulture Development and Export Board

UNECE/UNCTAD Workshop 31 Oct – 1 Nov 2006 UNECE/UNCTAD Workshop 31 Oct – 1 Nov 2006 6 of 19

Constitution of NTTFCConstitution of NTTFC

15. Pakistan International Airlines16. Small and Medium Enterprises Development Authority17. Multimodal Transport Operators18. FPCCI, Karachi19. Insurance Association of Pakistan20. Dry Port Terminal Operators21. Freight Forwarders Association22. Pakistan Ship Agents Association23. All Pakistan Shipping Association24. Goods Carriage Association25. Pakistan Bankers Association26. ICC Pakistan

Continued

UNECE/UNCTAD Workshop 31 Oct – 1 Nov 2006 UNECE/UNCTAD Workshop 31 Oct – 1 Nov 2006 7 of 19

NTTFC NTTFC Terms of ReferenceTerms of Reference

i. Continuous review of the trade and transport procedures and systems with a view to update their simplification and harmonization

ii. Undertake coordination of efforts of concerned organizations in the field of facilitation of international trade and transport

iii. Collect and disseminate information on international trade and transport formalities, procedures, documentation and related matters

iv. Pursue the simplification and alignment of trade and transport documents on the basis of the United Nations layout key, including documents designed for use in computer and other automated systems

v. Promote the adoption of the standard trade and transport terminology and international codes for trade and transport legislation

UNECE/UNCTAD Workshop 31 Oct – 1 Nov 2006 UNECE/UNCTAD Workshop 31 Oct – 1 Nov 2006 8 of 19

NTTFC Organisation StructureNTTFC Organisation Structure

UNECE/UNCTAD Workshop 31 Oct – 1 Nov 2006 UNECE/UNCTAD Workshop 31 Oct – 1 Nov 2006 9 of 19

TTFP Steering CommitteeTTFP Steering Committee

• Chairman NTTFC

• Chairman PSC

• Representative World Bank

• Representative UNCTAD

UNECE/UNCTAD Workshop 31 Oct – 1 Nov 2006 UNECE/UNCTAD Workshop 31 Oct – 1 Nov 2006 10 of 19

• MoU between MoC and PSC

• Staff salary sharing as below

• Office facilities provided by PSC

• Budget limited to staff salary and limited office expenditure

• After 3rd year funds arranged through EDF grant

Funding of NTTFC SecretariatFunding of NTTFC Secretariat

YearYear ProjectProject PSCPSC

1 100% -

2 80% 20%

3 45% 55%

Subsequent - 100%

UNECE/UNCTAD Workshop 31 Oct – 1 Nov 2006 UNECE/UNCTAD Workshop 31 Oct – 1 Nov 2006 11 of 19

Performance of Performance of NTTFCNTTFC

• Goods Declaration Form introduced as SAD

• Standard forms according to IMO FAL Convention

• Production of Phytosanitary Certificate, Certificate of Origin and Commercial Invoice on UNLK

• Carriage of Goods by Road Act and Carriage of Goods by Sea Act approved by Cabinet and presented to National Assembly

• Carriage by Air Act and Marine Insurance Act presented to Cabinet for approval

• Held various training workshops

UNECE/UNCTAD Workshop 31 Oct – 1 Nov 2006 UNECE/UNCTAD Workshop 31 Oct – 1 Nov 2006 12 of 19

Performance of NTTFCPerformance of NTTFC

• Documents produced for modernization of freight forwarding industry:– Standard trading conditions– Minimum qualification standards– Code of conduct

• Held seminars on International Standard Banking Practices and ICP 500

• Guidance provided for ratification of various conventions

• Study for refrigerated transport and cold storage of fresh produce

• Helped in implementation of security measures

Continued

UNECE/UNCTAD Workshop 31 Oct – 1 Nov 2006 UNECE/UNCTAD Workshop 31 Oct – 1 Nov 2006 13 of 19

Difficulties in efficient Difficulties in efficient functioning of NTTFCfunctioning of NTTFC

• Decisions of recommendatory nature required lengthy follow up for implementation

• Reluctance to accept change

• Frequent changes of Chairman and other key personnel

• Financial constraints of NTTFC Secretariat

• Inadequate professional contribution by members of Working Groups

UNECE/UNCTAD Workshop 31 Oct – 1 Nov 2006 UNECE/UNCTAD Workshop 31 Oct – 1 Nov 2006 14 of 19

Preconditions for Preconditions for success and sustainabilitysuccess and sustainability

• Political will and commitment at highest level

• Correct understanding and definition of public and private sector role

• Ownership and commitment of key stakeholder

• Committed lead agency

• Representation of concerned ministries and public & private sector organizations at senior level

UNECE/UNCTAD Workshop 31 Oct – 1 Nov 2006 UNECE/UNCTAD Workshop 31 Oct – 1 Nov 2006 15 of 19

Preconditions for Preconditions for success and sustainabilitysuccess and sustainability

Continued

• Institutional arrangement for functioning on permanent basis

• Strong linkage with international trade facilitation institutions

• Prior identification of key issues

• development of a project with well defined objectives and action plan

UNECE/UNCTAD Workshop 31 Oct – 1 Nov 2006 UNECE/UNCTAD Workshop 31 Oct – 1 Nov 2006 16 of 19

Preconditions for Preconditions for success and sustainabilitysuccess and sustainability

Continued

• Technical and financial support of international organizations to implement the project

• Permanent secretariat with experienced professionals rewarded at market rates

• Sound financial arrangement for running NTTFC Secretariat on permanent basis

UNECE/UNCTAD Workshop 31 Oct – 1 Nov 2006 UNECE/UNCTAD Workshop 31 Oct – 1 Nov 2006 17 of 19

Preconditions for Preconditions for success and sustainabilitysuccess and sustainability

• Suggested structure – Members

– Steering Committee / Council

– Working Groups

• NTTFC to play role of coordinator, facilitator and technical support provider

• Execution by the concerned organizations

Continued

UNECE/UNCTAD Workshop 31 Oct – 1 Nov 2006 UNECE/UNCTAD Workshop 31 Oct – 1 Nov 2006 18 of 19