THE WORLD BANK World Bank Group Multilateral Investment Guarantee Agency Rapid Response Toolkit...

THE WORLD BANKWorld Bank Group Multilateral Investment Guarantee Agency

Rapid Response Toolkit

Trade Logistics Advisory Service

World Bank Group

April 6, 2011, Washington DC


Contents

Country Program Scoping

(Supplemented by Handout 2)

Understanding the Fundamentals

(Supplemented by Handout 1)

Module 1

Module 2


Introduction

This module covers the following topics:

Handout 1: Key elements of the international supply chain – intermodal transport system, traders (end-users), service providers (facilitators) and regulators (enablers)

Cargo and Information Flows across the Supply Chain

Chain performance – time and cost indicators

Main hotspots in the chain – interconnectivity and sources of time delay and excessive cost

1

2

3

4


4

Port Operator

Terminal Handling

Border Clearance

Mombasa Port

Gatuna Border

Malaba Border

Farm to Foam – A Coffee Supply Chain

Baltimore Port


5

Bourbon Coffee2101 L Street NorthwestWashington D.C., DC 20037

Farm to Foam – A Coffee Supply Chain


6

Insurance

’

BuyersWarehouse

Warehouse

BuyerSeller

Insurance

Delivery termsPayment terms

Insurance

policy

Payment preparations

Insurance

policy

Payment preparations

Request for OfferOffer

Order

Invoice BL Copy

Commercial Transactions between buyer and seller –

- Responsibility: Liability coverage; risk; insurance - Location of transfer - Payment Terms: Guarantees; cash; check; LoC - Payment Time: Advance; On Delivery

Cargo & Information Flows Across the Chain



We do not focus on these commercial documents!

’

Request for Offer

Offer

Order

Dispatch

Invoice

Bill of Lading

Manifest

Packing List

Letter of Credit

Seller

Buyer

Transport related


8

Transit DocumentsCertificate of Origin - EAC COMESA Other FTAs

Technical Certificates – Phytosanitary Veterinary Conformity etc

Terminal Handling Receipts

Import License


Inspection Report

Cargo Release Order

Customs Declaration

PreferentialSpecial

TransferCustoms

Types of Official Documentation ..& stamps

This is our focus!



’

Seller

’

Vessel Arrival

Outbound

Port

Shipping

Agent

Customs

Cargo in custodyCleared cargo

Manifest

Manifest

Bill of Lading

International

Shipping Lanes

Port Handling &

Transfer

Terminal Handling

Border Clearance

The Manifest Submission Process

Port Operator

Warehouse

- Manifest need: Information flow to the place of landing i.e. port- Manifest form – hard copy / electronic- Manifest info: Which containers will be unloaded and which containers will be held in the port’s yard under bond to await clearance from customs



Vessel Arrival

Terminal & Port Operations

Technical Control

Clearing Agent

CertificatesTest Protocol

CustomsInspection

B/L CopyDelivery Order

InvoiceDeclarationSupportingDuty & fees

Clearance of Cargo:

Documents to Customs & Technical Control

Duty & fee payments

Role of Agents

Inspections

ConformityPhytosanitaryTransport Veterinary

Inspection



Port Operator

Terminal Handling

Border Clearance

Clearing

Agent

Release order

Declaration OKPayment/port feeRelease order

Clearance:

Port Charges

Release Order

Move to ICD / Private warehouse

Seals

Transport


12

BuyerSeller

Terminal Handling

Border Clearance Day Cost

Kenya 3 430 USDFrance 1 150 USDColombia 2 200 USD

Pick-Up & Inland Transport Day Cost


Document Preparation Day Cost


Terminal Handling Day Cost


Border Clearance

Cost and processing times provide hurdle rates whereby countries whose performance levels in the various categories fall short of best practice (i.e. France here) in comparison can be identified as potential “hotspots”.

Time & Cost Measurements as Indicators ofChain Performance


13 Coffee Farm

Border ClearanceTerminal Handling

Shipping Transport

Retail

Seller

Outbound Port

Hotspots – Common Areas

HotspotsDocument PreparationVessel Arrival & BerthingTerminal HandlingBorder ClearancePickup & Inland TransportationInteragency – interconnectivity; IT


Hotspots in the Chain – Document Preparation

Trader: Importer/Exporter Freight Forwarders & Customs Brokers

Multiple Document Requirements for

• Customs• Ministry of Health• Food & Drug Agency• Ministry of Agriculture• Bureau of Standards• Other Border Agencies

X

Weak Interconnectivity• Manual submission of

documents• Sequential processing

Small & Medium Trader Issues• Hire low cost/low skill agents• Delay in commencing good

declaration due to cash squeeze• Use of cheap port storage

• Preference for low cost/low skill services

• Weak understanding of import requirements

• Lack of trust in system


Hotspots in the Chain – Border Clearance

Cleared

Inspection Required

Inefficiencies for Customs• High number of supporting documents• Repetitious filing of forms• Manual processing• High inspection rates• Lack of electronic support in inspection• Frequent valuation disputes• Lack of inland clearance capabilities


Hotspots in the Chain – Border Clearance (cont.)

Shipping Agent

Clearing Agent

Trader

XBureau of Standards

HealthDepartment

AgricultureDepartment

OtherAgencies

Sequential Processing• Increased dwell time• Increased terminal handling

charges when moving from one inspection area to another

• Excessive documentation• Lack of clarity on roles• Lack of trust and an

unwillingness to share data• Arbitrary behaviour by

government agencies


Hotspots in the Chain – Vessel Arrival/Berthing

International Jurisdiction Receiving Country Jurisdiction

Harbour Limits

ShipManifest

Formalities for Vessel Arrival/BerthingVessel Control AuthorityCoast GuardPort AuthorityPilotage Association/AuthorityCustomsImmigrationDepartment of AgricultureDepartment of Health

Shipping Agent

Port AuthorityCustoms X

Manual Processing


Hotspots in the Chain – Terminal Handling

Vehicle Holding Area

Security Fence

Quay Handling Area

Loaded ContainerStorage Area

Empty ContainerStorage Area

CFS Transit Shed

ContainerRepair Area

Workshop

Admin. Building& Control Centre

Customs/Health

Exam Shed Gate

InterchangeArea

SpecializedContainers


InterchangeArea


Security Fence

Quay Handling Area

Loaded ContainerStorage Area

Empty ContainerStorage Area

CFS Transit Shed

ContainerRepair Area

Workshop

Admin. Building& Control Centre

Customs/Health

Exam Shed Gate

InterchangeArea

SpecializedContainers


InterchangeArea

Poorly Configured Handling Facility

Poor Labour Practices

Inefficient Terminal Tariff System


Hotspots in the Chain – Inland Transport

Travel Delays• Compulsory stops at many weighbridge stations• Police checks • Deficient driver skills that lead to accidents • Frequent vehicle breakdowns, and• Poor road conditions that affect driving speed

Inspection

High Carrier Rates• High cost imported spare parts• Low Utilization due to long cycle time• Absence of backhaul cargo

High Incidence of Cargo Loss & Damage• Frequent accidents• High rates of theft

Absence of Market Competition• Rigid Licensing• Tacit promotion of

cartels


Hotspots in the Chain – Interagency & Coordination

Clearing Agent

Trader

TruckOperator

PortOperator

X

Road Delays

PortAuthority Customs

Police

Pickup & GateClearance Delays

TruckOperator

Communication &Coordination Delays


Questions

21

THE WORLD BANK World Bank Group Multilateral Investment Guarantee Agency Rapid Response Toolkit...

Documents

Transcript of THE WORLD BANK World Bank Group Multilateral Investment Guarantee Agency Rapid Response Toolkit...