UNNExT Workshops on Trade Facilitation

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1 UNNExT Workshops on Trade Facilitation UNNExT Workshop on Paperless Trade Facilitation for Small and Medium-Sized Entreprises Almaty, Kazakhstan 4-6 May 2015

2 Paperless Trade Facilitation for SMEs ( Mongolia) NARANTSETSEG Tseyenpil Senior customs officer, Customs General Administration OYUNTSETSEG Chuluun Inspector of food safety, Department of Export and Import Inspection, Professional Inspection Authority of the Capital City TSETSEGMAA Chuluunbat Head of Export Promotion & Development Department, MNCCI Alma Ata

3 Export market by country / 2014/

4 Main export articles / 2014/ 1 - Copper concentrates 2 - Coal 3 - Crude oil. 4 - Iron ores and concentrates 5 - Gold,unwrought or in semi-manufactured forms. 6 - Containing more than 12,0 % by weight of cashmere 7 - Zinc ores and concentrates 8 - Leucite; nepheline and nepheline syenite; fluorspar. 9 - Other

5 Current situation of SMEs in Mongolia workers in SME sector Shared 0.7 % in total export

6 Main SME sectors handicrafts /felt, leather/ Wooden production Agriculture / meat, plants, milk, fruits, honey / Light industry / cashmere and camel wool, yak woolen, textile garment production/ Trade service Tourism Leather shoes service and production

7 Main SME export sectors Cashmere and camel woolen garment Yak woolen garment Handicrafts Traditional furniture production Medical plants Textile garment Felt products

8 Key challenges for SMEs in trade lack of financial resources Lack of skilled workers Need favorable law environment lack of market access information Shortage of new technology Shortage of industrial building

9 Key Government agencies in TF Cabinet Secretariat of Government General Authority for State Registration Customs General Administration Mongolian Agency Standardization & Metrology Information technology, post, telecommunication agency General Agency for Specialized Inspection Mongolian National Chamber Commerce and Industry

10 SEW in Mongolia - Government resolution to adopt SEW program in Mongolia -Government resolution on to implement SEW and to establish steering committee

11 PROJECTS ORGANIZED BY THE INSPECTION AUTHORITIES IN THE FRAME OF MAKING EASIER THE FOREIGN TRADE OF SMALL AND MEDIUM SIZED ENTERPRISES Following projects were performed in the frame of making easier the foreign trade and transferring to single window electronic service by the border inspection authorities in The government has determined the criteria for the risks of imported goods by the Resolution #233 dated in Items and types of the imported goods to be involved under the border professional inspection were identified by the Resolution #60 of the Deputy Prime Minister of Mongolia dated in Inspection details were determined by the Resolution #309 of the Chief of General Authority of Professional Inspection Authority dated in 2014.

12 Previously, the professional inspection authority has controlled all the exported and imported goods through the border but the issuance of the resolution constituted the legal environment for carrying out the risk based inspection. All imported goods are evaluated with their Human effects Animal effects Plant or cultivation effects And environment effects and the goods with great or medium risks are inspected and low risk goods are not inspected.

13 According to damages and negative effects that may result to the human, animal, plant, health, environment and social security, the criteria for determining the risks of imported goods was developed, 5744 types of goods were evaluated and 3550 types of goods were released from the border inspection under the classification code of GCDS (goods coding and determining system). In result of this, the border inspection for foreign trade became easier by 61,8 percent, and the inspection became optimal and effective, it constituted the conditions to reduce the expenses from business, save time, decrease inspection burden.

14 Goods with great risks are goods that may damaged quickly such as different types of meat, seeds, rice, eggs, raw materials, chemical substances, medicines, alive animals, and etc, Medium risk goods are processed foods, raw materials, and some kinds of chemical substances, and Low risk goods included the goods which don t have direct effects to human health.

15 By making analysis to the process of issuing certificates and declaration to the foreign trade business of small and medium-sized entrepreneurs by the professional inspection authority: the entrepreneurs in-person meetings with the professional inspection officer were 5 times but currently it became 2 times. the number of required document was 6, but it became 3. there were 14 stages to issue the documents, now it became 7. there were 5 documents are needed to be developed during the certificate issuance period but now they are not required. It took 3 working days to issue the certificates, declaration and run laboratory test, now it became only 1 day.

16 ГАДААД CUSTOMS ХУДАЛДААГ GENERAL ХӨНГӨВЧЛӨХ ADMINISTRATION OF MONGOLIA Customs law of Mongolia, 2008 Numbers of Documents Required for goods clearance 8+

17 ГАДААД CUSTOMS ХУДАЛДААГ GENERAL ХӨНГӨВЧЛӨХ ADMINISTRATION OF MONGOLIA Revision of Customs law /2012/ Numbers of Documents Required for goods clearance 4

18 ГАДААД CUSTOMS ХУДАЛДААГ GENERAL ХӨНГӨВЧЛӨХ ADMINISTRATION OF MONGOLIA PAPERLESS CLEARANCE Working group was established in February 2014 Launched in August 2014 Focused on mining products Time Cost savings

19 CUSTOMS GENERAL ADMINISTRATION OF MONGOLIA ЭКСПОРТЫН ГАДААД ХУДАЛДААГ ГААЛИЙН ХӨНГӨВЧЛӨХ БҮРДҮҮЛЭЛТ

20 CUSTOMS GENERAL ADMINISTRATION OF MONGOLIA ЭКСПОРТЫН ГАДААД ХУДАЛДААГ ГААЛИЙН ХӨНГӨВЧЛӨХ БҮРДҮҮЛЭЛТ Selenge Customhouse /North border/ By November 30, 2014: Total number of customs declaration: 4762 Estimated duty collection without facilitation: 64,345.0 million tugrug Percentage of trade facilitation /Exempted from Customs duty and VAT/: 34.8% =22,399.9 million tug Comparison of Trade facilitation by year: /million MNT/ , , ,399.9 Altanbulag Free Trade Zone /Launched in June 2014/ Goods exempted from Customs Duty and VAT at Selenge Customhouse: Eqiupment and technology of Agricultural products

21 THANK YOU