UNECE COMMERCIAL AGRICULTURAL QUALITY STANDARDS Serguei Malanitchev
Trade Facilitation (TF) and its Economic Benefits Serguei Kouzmine UNECE GTS 8 December 2010 1.
-
Upload
eleanore-arnold -
Category
Documents
-
view
219 -
download
0
Transcript of Trade Facilitation (TF) and its Economic Benefits Serguei Kouzmine UNECE GTS 8 December 2010 1.
Trade Facilitation (TF) and itsEconomic Benefits
Serguei KouzmineUNECE GTS
8 December 2010
1
Ratio of world exports of goods and commercial
services to GDP, 1981-2009
(Index 2000=100)
Source: IMF for world GDP, WTO Secretariat for world trade in goodsand commercial services.
in 2009 the global economic crisis sparked a 12.2% contraction in the volume of global trade.
The largest such decline since World War II.
Recent trendsRecent trends
« International Trade is one of the most important
arenas in which we must combat the real effects of the
crisis. Trade itself is a stimulus. »Source: Simon Crean, Australian Minister of Trade
« Where the trade environment is more favorable,
businesses are better positioned to take advantage of
new opportunties, to grow and to great jobs when the
global economy picks up again. »Source: WB, World Business Report, 2010
Importance of trade facilitationImportance of trade facilitation
Where is trading easy—and where not?
Easiest RANK Most difficult RANK
Singapore 1 Niger 174
Hong Kong, China 2 Burkina Fasu 175
United Arab Emirates 3 Burundi 176
Estonia 4 Azerbaijan 177
Finland 5 Tajikistan . 178
Denmark 6 Iraq 179
Sweden 7 Congo Rep. 180
Korea, Rep. 8 Kazakhstan 181
Norway 9 Central African Rep. 182
Israel 10 Afghanistan 183
Source: Doing Business database. Doing Business Report 2011
….But in many economies cumbersome trade procedures, long delays and high trading costs continue to stifle trade potential.
Ranking indicators:
• Documents to export & import
• Time to export & import
• Cost to export & import
Arrival Notice
Letter of InstructionInvoice, PO
Importer’s Bank
Ocean Carrier
Customs House Broker
Line of CreditProforma Invoice
Shipping & funding detail
Cargo Status
Vessel Booking Request
CargoStatus
Shipping & Funding Detail
Exporter’s Bank
Importer Exporter
Vessel Booking Confirmation
Bill of Lading
Rated Bill of Lading
Dock Receipt
Freight Forwarder / NVOCC
Purchase Order
LCConfirmation
AES
Dock receipt
Pick-up & Delivery Order
Vessel Manifest
Dock receipt
Release/Approval
Demurrage guarantee & payment
Inland Carrier
Manifest
Pick-up & Delivery Order
Importer Notice
Converted VesselManifest
Customs (Export)Port
Customs ( Import )
Original B/L, Invoice, PO, Packing List
Inland Carrier
Marine Insurance Company
Fund Transfer
Confirmed Line of Credit
Release/HoldNotice
Purchase Exportation Importation
ImportTerminalOperator
Proforma Invoice
Export Declaration
Export Declaration
Bill of lading, Documentation
Import Docs
Export Terminal Operator
• 20 actors• > 200 data elements;
(60-70% re-keyed at
least once, 15% re-
typed up to 30 times)• Manual procedures;• Multiple data
systems;• > 30 documents or
messages.
Data exchange in International TradeData exchange in International Trade
Source: UNCTAD 2006
Too many documents…Too many documents…
Enquiry Order Despatch advice Collection order Payment order Documentary credit Forwarding instructions Forwarder's invoice Goods receipt Air waybill Road consignment note Rail consignment note Bill of lading
Freight invoice Cargo manifest Export licence Exchange control doc. Phytosanitary certificate Veterinary certificate Certificate of origin Consular invoice Dangerous goods declaration Import licence Customs delivery note TIR carnet
Source: UNCTAD 2006
Number of documents to export and importNumber of documents to export and import
Documents to Export (number) Documents to Import (number)
Region DB 2011 DB 2007 DB 2011 DB 2007
OECD high income 4.4 4.5 4.9 5.2
East Asia & Pacific 6.4 6.8 6.9 7.5
Latin America & Caribbean 6.6 6.6 7.1 7.3
Middle East & North Africa 6.4 7.5 7.5 8.6
Eastern Europe & Central Asia 6.4 7.1 7.6 8.5
Sub-Saharian Africa 7.7 8.3 8.7 9.3
South Asia 8.4 8.5 9.0 9.4
Global Average 2010 6.5 7.3
Source: World Bank Doing Business 2011Source: World Bank Doing Business 2011
Time to export and importTime to export and import
Time to Export (days) Time to Import (days)
Region DB 2011 DB 2007 DB 2011 DB 2007
OECD high income 11 11 11 12
East Asia & Pacific 23 24 24 26
Latin America & Caribbean 18 22 20 27
Middle East & North Africa 20 25 24 32
Eastern Europe & Central Asia 27 32 28 34
Sub-Saharian Africa 32 37 38 45
South Asia 32 35 33 38
Global Average 2010 23.1 25.8
Source: World Bank Doing Business 2011Source: World Bank Doing Business 2011
What do traders want ? What do traders want ?
Simple and smooth processing of formalities
Means to allow goods to proceed promptly to their final destination. No longer itineraries, no unpacking, no delays
A single control point for all public services
Standard forms, assembled into a ‘single bunch of documents’, compatible with trade documents and transport contracts
Predictable and transparent rules and procedures
Source: UNCTAD
CSDAT Aug 2010 10
TRADE FACILITATION
Process of eliminating all unnecessary elements and duplications in formalities, processes and procedures
Simplification Harmonisation
Alignment of national procedures, operations and documents with international conventions, standards and practices
Standardisation
Process of developing internationally agreed formats for practices and procedures, documents and information
Source: UNECE, UNCTAD
By reducing trade related transaction costs, delays at the
borders, number of documents required,improving custom
administration……., trade facilitation:
Fosters businesses’ competitiveness
Increases trade volumes and gains
Raises countries’ GDP
Boosts government tax revenues
The economic benefits of TF The economic benefits of TF
Trade related transaction costs are estimated to lie between 2 and 15% the value of imported goods (OECD 2001, 2003)
Each 1% reduction of such costs is worth up an economic prize of USD 43 billion worldwide (OECD 2003)
Some evidence…. Worldwide
Some evidence…. Worldwide
If APEC members, who perform below average, were able to improve their TF performance to half the APEC average, intra-APEC trade could increase by USD254billion and raise average APEC region GDP by 4,3 % (Wilson et al. 2004)
If APEC members would reduce border delays by 1 day, they would increase exports by 1% (Martinez-Zarzosa et Marquez-Ramos 2008)
Some evidence (con’t d)…In APEC
Over the past 5 years, economies that rank high
on the ease of trading across borders have:
1. Introduced or improved electronic data interchange systems
2. Introduced or improved risk-based inspections
3. Improved customs administration
4. Reduced number of trade documents
5. Improved procedures at ports
6. Introduced or improved single window
7. Implemented border cooperation agreements
Source: WB, World Business Report, 2010
Towards smart regulation
● In Singapore, the SW System (Trade Net) allows the business community to: submit 100 % of trade applications (9 mln per year) to all concerned government
authorities
with a processing time of 10 minutes
● In Korea, the SW System: Processes 80% of all import applications (3,000 per day)
It is s used by 17 participating organizations and about 16,068 businesses from the trade
community (as of December 2009).
● In both countries Firms’ savings in labor, printing, paper delivery, storage, inventory
costs, etc. amount to approx US$ 1 billion per year
.
Source: UN/CEFACT Single Window Repository 2010
Opening a single window (SW) in Singapore & Korea
Россия в рейтинге «doing business»Россия в рейтинге «doing business»
Беларусь Казахстан Россия
Простота ведения бизнеса 58 63 120
Открытие бизнеса 7 82 106
Разрешение на строительство 44 143 182
Наём работников 32 38 109
Регистрация собственности 10 31 45
Получение кредита 113 43 87
Защита инвесторов 109 57 93
Уплата налогов 183 52 103
Трансграничная торговля 129 182 162
Исполнение договоров 12 34 19
Закрытие бизнеса 74 54 92
Как видят Россию?Как видят Россию?
« Индекс развития ИКТ » - Россия - 48 место
(Швеция-1; Германия-13; Франция-18:
Беларусь-55; Казахстан-69; ..)« Индекс логистики » -Россия- 94 место
(Германия-1; Швеция-3; Франция-17;
Казахстан-62; Украина-102; ..)« Делать бизнес» - Россия - 120 место
(Сингапур – 1; США – 4; Германия – 25; Франция – 31; Беларусь- 58; Казахстан –63,..)
In summaryIn summary
Trade facilitation: Gives businesses a competitive edge
Allows greater integration in the global economy
Enhances government revenues
Contacts:Sergei KouzmineUNECE Global Trade Solution [email protected]/trade