JAMAICA: FOUNDATIONS FOR COMPETITIVENESS AND GROWTH PROJECT Loan No.:8408-JM

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1 JAMAICA: FOUNDATIONS FOR COMPETITIVENESS AND GROWTH PROJECT Loan No.:8408-JM Assignment Title: Assignment Title: ORGANIZATIONAL RE-DESIGN OF TRADE REGULATORY SERVICES IN BORDER REGULATORY AGENCIES OF GOVERNMENT Reference No. (as per Procurement Plan): FCG/CON/053 TERMS OF REFERENCE I. BACKGROUND 1.1 The Government of Jamaica has secured a loan from the World Bank to finance a project entitled Foundations for Competitiveness and Growth (FCG). The Project Executing Agency is the Planning Institute of Jamaica (PIOJ) with key Project Components to be implemented by JAMPRO and the Development Bank of Jamaica (DBJ) as the Lead Coordinating Agencies. The overall objective of the project is to strengthen the business environment in Jamaica for private sector investment by promoting broad-based private sector-led growth, improving the investment climate, modernizing infrastructure and logistics, as well as enhancing entrepreneurship and competitive industries. Component 1 of the project, which is coordinated by JAMPRO, seeks to provide technical assistance (TA) and implementation support to address critical business regulatory and procedural issues that constrain firm entry, operation and expansion, competition, and trade and logistics. Support for the re-design of border agencies stands consistent with this mandate. 2.1 Jamaica s Trade Facilitation Programme is being implemented against the background of the GOJ s Public Sector Transformation and Modernization Programme (PSTMP), which builds on previous efforts to reform the public sector. In keeping with the National Development Plan: Vision 2030, the government has established its priorities, as reflected in the Government s Strategic Priorities for the period, , and the 2015/2016 Growth Agenda Policy Paper. At the heart of these priorities are economic growth and fiscal prudence, which are reflected in the strategies for transformation and modernization of the public sector, with specific focus placed on those elements which are able to demonstrate tangible changes in the shortest possible time. 3.1 Having learnt from previous iterations of executing public sector reform, the current programme has been realigned to ensure achievements where previous programmes have fallen short. In the thrust to modernize and ultimately transform the public sector, the following four (4) thematic areas have been identified: Page 1 of 10

2 1. Trade and Investment Facilitation and Service Delivery 2. Managing Public Sector Costs 3. Human Resource Management Transformation and Institutional Strengthening of Ministries 4. ICT Transformation Trade Facilitation Logistics 4.1 The Government of Jamaica (GoJ) is currently pursuing a program of trade facilitation reform to achieve alignment with the WTO Trade Facilitation Agreement (TFA), modernize the national trading environment in line with the government s objective to become a world class logistics hub and stimulate economic growth. 5.1 The cornerstone of its trade facilitation program is the implementation of ASYCUDA World, an automated Customs data management system. Implementation of a Port Community System for the Shipping Industry - an initiative of the Port Authority and Jamaica Customs Agency is also at an advanced stage. The necessary interfaces are being developed between the Customs and Port Community systems. Final approval has now been secured for the implementation of an Electronic Single Window (ESW) for trade to encompass the other government agencies concerned with trade regulation and facilitation and incorporating with the Customs and Port Community systems. ASYCUDA World has been implemented and is functional at the Jamaica Customs; it is expected that the ESW will be implemented within three (3) years. 6.1 Mention might also be made of the government s Global Logistics Hub Initiative which will involve the creation of state of the art logistics zones, upgrading and further development of air and sea port infrastructure and the creation of an enabling environment, which will allow businesses to fully exploit Jamaica s strategic location and is a long-term initiative. It would appear axiomatic that the optimization and automation of processes, and paperless working environment throughout the rationalized trade facilitation supply chain are essential elements of this enabling environment and a basic property of any credible player in international logistics. Ease of Doing Business 7.1 As reported in the World Bank Doing Business 2017 Report, the introduction of ASYCUDA in Jamaica Customs (allowing for the electronic submission of customs declarations and supporting trade documents - resulting in a substantial decrease in the time required for international trade processes) was associated with the Country s improved ranking of 2 places (from 133 to 131, out of 190 countries) on the Trading Across Borders indicator of the Doing Business matrix between 2014/15 and 2015/16. According to the World Bank s Doing Business Report 2017, Jamaica reduced the time to complete documentary requirement for exports by a 24%. There is still potential for improvement. For example, with the recent reform, the time to export is 13% lower than the LAC average, but still almost 6 times the OECD average. Import times are almost on par with the LAC average but almost 12 times higher than the OECD average. However, the cost to export from Jamaica is 51% higher than the LAC average and over 5 times the OECD Page 2 of 10

3 average. The cost to import, similarly, is 20% higher than the LAC average and 7 times the OECD average. 8.1 Recent analysis completed by the World Bank, the International Trade Centre (ITC) and UNCTAD has indicated that despite these gains, there remains a major weakness in the nation s trade facilitation environment which must be addressed with alacrity if transformation is to be achieved. Some of these include: a) Lack of coordination between border regulatory agencies b) Complexities and multiplicity of steps involved in executing transactions c) Over-regulation of trade practices d) High levels of inspection e) High fees and charges f) Low business capacity to comply with international trade procedures and quality requirements g) An absence of an integrated and harmonized cross-border framework h) Legislation and policies which require revision, having regard to the need to ensure conformity with best practices, and update laws and policies in light of the changes which have been made/are being made, and are to be made. 9.1 In addition to Jamaica Customs the seven (7) border agencies identified have the greatest impact on the trading across borders in terms of the time it takes to trade as well the cost of doing business. These are the agencies from which the vast majority of permits and licenses are required; they are also the agencies that conduct most of the inspections of goods that enter and leave the island. The organizational re-design is intended to improve the process flow of these agencies so as to significantly improve their efficiencies. Page 3 of 10

4 The critical border agencies to be assesses are: Agency Process Maps Veterinary Services Division (VSD) Plant Quarantine Division (PQD) National Compliance and Regulatory Authority (NCRA) Food Storage and Prevention of Infestation Division (FSPID) The Trade Board Limited (TBL) Ministry of Health -Public Health Ministry of Health -Pharmaceuticals and Regulatory Affairs Import Permit Standard Issue Import Permit- Dairy Products Import Permit- Zoo Animals Import Permit- Controlled Goods Export Health Certificate Fisheries products Fisheries Processing Establishment Licence Export Certificate Non-fisheries processed goods Export Health Certificate dogs, cats and birds Export Health Certificate Horses and food animal Import Inspection Export Phytosanitary Certificate Export Packaging Facility Certification Pre-clearance certificate Import Permit Import Inspection Import Inspection Import Inspection Export Licence Scrap Metal Exporter Registration Import Licence- manual Import Licence- electronic Import Food Inspection Import Permit for chemicals and food additives Import permit Control Substance - commercial Import permit- medicines, cosmetics and medical devices Product Registration Product Registration- generic for product licences Governance Framework Given the cross-cutting nature of international trade, various entities are a part of the overall governance framework for trade facilitation in Jamaica. The Ministry of Industry, Commerce, Agriculture & Fisheries (MICAF) is primarily responsible to Cabinet for the successful implementation of the Trade Facilitation Programme. MICAF has the portfolio responsibility for creating and sustaining an enabling environment to support local and foreign trade. Notwithstanding, it is recognized that because the business of trade touches and concerns other ministerial portfolios, MICAF while accepting ownership of the Programme will also rely heavily on the support of other ministries to ensure the success of the Programme. Page 4 of 10

5 The Trade Facilitation Task Force (TF)2 was set up to lead the development and ensure the successful implementation of the Trade Facilitation Programme. The specific role of a Programme Steering Committee is to ensure the successful delivery of the Programme by setting the direction for the Programme and overseeing the achievement of the objectives of the various related projects. The Task Force: oversees Programme implementation; reviews and approve project proposals presented by stakeholders; provides direction and approve strategies to address implementation issues which cut across the Programme components and affect multiple stakeholders; and deliberates recommendations for policy and operational changes. The TF2 Secretariat is currently housed at the Trade Board Limited. The Secretariat is responsible for the Programme Coordination and Management and is responsible, on behalf of the Task Force to coordinate activities to ensure the achievement of the Programme s objectives. The Secretariat facilitates the work of the TF2 by managing the formal mechanism (the various Sub- Committees and Project Teams) within which the various projects under the Trade Facilitation Programme are implemented, to deliver the agreed outputs under the Programme. II. PURPOSE OF THE CONSULTANCY 10.1 The Government of Jamaica (GOJ) is seeking to engage the services of a team of Consultants to make recommendations on the streamlining of seven selected Border Regulatory Agencies (BRAs) of the Government following, with a view to proposing a more modern and efficient architecture. The Consultant should make recommendations for a new architecture to include the organizational re-design of the trade regulatory services in the seven (7) key border regulatory agencies of government other than Jamaica Customs Agency. III. OBJECTIVES OF THE ASSIGNMENT 11.1 The objective of this assignment is to arrive at a rationalised organizational structure in the trade regulatory services of the seven (7) selected agencies. The ultimate aim is to realign the agencies to realize the potential for reduced cost (including costs to the users), enhanced productivity and professional development, and quantum improvement in the ease of doing business in Jamaica. Page 5 of 10

6 IV. SCOPE OF WORK 12.1 The work of the Consultant will include, but not necessarily be limited to: i. Reviewing reports on the business processes, practices and procedures of the seven Border Regulatory Agencies; ii. iii. Identifying legislation, regulations, policies and procedures supporting Trade Regulation in order to develop a list for legislative review; Reviewing As-Is processes of the BRAs, prepared by the World Bank and others as well as the ESW Implementation Team with a view to supporting the recommendations of the consultant; iv. Reviewing reports of Cabinet Office, the ESW Team and any other relevant reports on redesigned ( To-Be ) processes in order to support the recommendations of the consultant; v. Identifying relevant international best practices in structure, functions and core competencies; vi. Validating the As-Is Process flows including identification of time and personnel involved in each stage of the process; vii. Assessing the organizational structure, knowledge and staffing complement across the 7 agencies. This must be supported with interviewing of divisional heads, technical officers and front-line personnel. Particular attention should be paid to the Inspection teams of the respective agencies assessing the extent to which the number of such teams might be reduced through centralization (with cross-training), decentralization (with specialization), or outsourcing; viii. Proposing a new architecture to reflect the new streamlined process flow in keeping with the government of Jamaica rationalization programme and global best practice. The proposed architecture should aim to reduce redundancies and optimize processes; ix. Proposing detailed training requirements to properly equip a balanced inspection force as guided by capacity deficiencies identified; x. Providing content for Cabinet Submission to be tendered by the Ministries with responsibility for regulating Trade at Jamaica s Borders- i.e. Ministry of Industry, Commerce, Agriculture and Fisheries (MICAF), the Ministry of Finance and Planning (including Jamaica Customs) and the Ministry of Health- to seek approval for the sweep of recommended changes; xi. xii. Drafting outlines for Job Descriptions (JD) for the Senior Management and Technical staff to accord with the proposed new arrangements; and Drafting an Implementation Plan. Page 6 of 10

7 13.1 The Consultant is expected to interface with various stakeholders, including those as listed below. The Consultant will be required to facilitate consultations with core stakeholders in executing the tasks. Key stakeholders are listed below: INTERNAL: - Trade Facilitation Task Force; - MICAF; - Ministry of Finance and the Public Service; - The Trade Board Limited; - Office of the Cabinet; - Office of the Prime Minister; - Jamaica Customs Agency; - All levels within the GOJ, but extensive and significant interaction with Permanent Secretaries, Chief Executive Officers of Departments and Agencies, Heads of Divisions. EXTERNAL: - Jamaica Exporter s Association - Shipping Association of Jamaica - Jamaica Manufacturers Association - Jamaica Chamber of Commerce - Associations representing micro, small and medium-sized enterprises - Other key stakeholders involved in trade V. EXPECTED DELIVERABLES 14.1 For each deliverable, the Consultant is expected to submit an intermediate/draft report with his/her preliminary findings so that the relevant stakeholders can provide comments before the final deliverable is submitted. Draft reports should be submitted electronically with final deliverables submitted electronically, in word and PDF The Consultant is expected to participate in meetings/conference calls/videoconferences with the representatives of the Trade Facilitation Task Force and MICAF as well as key stakeholders in order to discuss conclusions and recommendations included in the deliverables. The key deliverables of this project are: listed in the Table below Payment will be paid in keeping with the submission and acceptance of the following deliverables within the stipulated timelines. To effect payment, relevant invoices should be submitted with each deliverable. Page 7 of 10

8 NO DELIVERABLE DESCRIPTION DUE DATE 2 Comprehensive Status Report As-Is Document Review Review of World Bank and other reports concluded by the Cabinet Office and the Trade Facilitation Task Force (TF) 2, the ESW Team report on Trade-related practices and measures, the PwC s analysis on the improvements in service delivery of ICT to enable trade facilitation. The review and report should also include a list of relevant legislation, regulations, policies and procedures which may require amendment. A validation of the process flows and/or gaps should be reflected. Week 6 of the project REVIEW PERIOD FINAL SUBMISSION 2 weeks Week 9 (1 week after comments are submitted) PAYME NT TERMS 20% 3 National Border Agency Assessment and Global Best Practice Report 4 Proposed Architecture, draft Job descriptions and draft implementation plan An assessment of the organizational structure, knowledge and staffing complement across the 7 agencies as obtained from consultations should be presented. The Report should also include an assessment of international best practices on the coordination of functions of border agencies. Best practice in structure, functions and core competencies of the border agencies should be clearly provided. The Report should include a comparative analysis across key areas of the national landscape (current status) and international best practices. The Report should include clear recommendations on the proposed organizational structure, re-designs and rationalised new architecture of border agencies in keeping with global best practices and gaps to be addressed. Draft job descriptions for senior management and technical officers should be included. A Draft Implementation Plan, detailing a clear pathway with timelines, resources needed to facilitate transition to the approved architecture. Week 12 3 weeks Week 16 20% Week 19 3 weeks Week 23 30% 5 Final Implementation Plan The Final Implementation Plan shall incorporate and/or address all comments presented by the Supervising Entity. 6 Final Report The Final Report which provides a summary of the work undertaken and the various outputs of the project. Week 23 2 weeks Week 26 20% Week 27 1 week Week 28 10% Page 8 of 10

9 VI. SUPERVISION AND COORDINATION 17.1 The Planning Institute of Jamaica is the Contracting Authority and shall be responsible for contractual amendments and payments The MICAF is the designated Supervising Entity and shall be responsible for the approval of contractual reports and payment requests. The designated representative of the Supervising Entity is the Chairman of the Trade Facilitation Task Force Deliverables will be considered by a committee of the Task Force, to include a representative of MICAF, Cabinet Office and the Ministry of Health (MOH); and acceptance of same signified under the hand of the Chairman or Head of the Secretariat, and will be required to interface with the Ministry of Industry, Commerce, Agriculture and Fisheries (MICAF), the Trade Board, MOH, Office of the Cabinet, and other stakeholders involved in the Trade Facilitation Programme In interface with the consultant, the MICAF will support the activities as follows: - Satisfy all reasonable requests for information by the Consultant. - Organise and provide funding support for meetings and consultations. - Organize, compile and submit to the Consultant comments from relevant stakeholders on the Reports and documents developed. VII. QUALIFICATION REQUIREMENTS AND CHARACTERISTICS OF THE CONSULTANCY 21.1 The assignment will require the services of consultants with technical competences in International Trade Facilitation, Business Process Reengineering, and Total Quality Improvement. This assignment may require the services of qualified individuals from a consulting firm. The required qualifications are as follows: Key Expert 1 and Team Leader (preferred) Business Process Re-engineering Specialist Tertiary level education (preferably MBA) in Business Management or Operations management; A minimum of 15 years experience in Business Process Analysis and Organizational Design; Experience with IT Systems used within trade facilitation processes is a requirement; Key Expert 2: International Trade Specialist Tertiary level education in international trade, economics, trade law; A minimum of 15 years experience in dealing with international trade issues; Demonstrable knowledge of trade facilitation issues; knowledge of WTO Trade Facilitation Agreement is a requirement; Demonstrable knowledge of Jamaica s legal, policy, regulatory and customer and border procedures; Page 9 of 10

10 Experience I working in Small Island developing States would be an asset. Key Expert 3: Human Resource Development Specialist Tertiary level education in HR Management or Business Administration; A minimum of 10 years experience in Organizational Change management; A minimum of 10 years experience in drafting job descriptions. VIII. LOCATION AND WORKING CONDITIONS 22.1 While the primary location will be Kingston, the duties associated with the assignment may require occasional travel to work locations outside of Kingston to conduct consultations. The MICAF will provide work station (if necessary) for the Consultant. IX. COMMENCEMENT DATE AND DURATION 23.1 The assignment is expected to start by November 2018 with a projected duration of seven (7) months. ---END--- Page 10 of 10