From Transport Connectivity to Social Networking. Dr.Esmaeil Tekyeh Sadat Advisor to Deputy Minister MFA iran

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1 From Transport Connectivity to Social Networking Dr.Esmaeil Tekyeh Sadat Advisor to Deputy Minister MFA iran

2 three key challenges out of five, (1) Lack of coordination between government agencies; (2) Lack of political will; (3) No clearly designated lead agency; (4) Financial constraints; (5) Limited human resource capacity.

3 Challenges Afghanistan, Bangladesh, Bhutan, Cambodia and Lao PDR identified financial constraints as the most challenging factor. On the other hand, lack of coordination between government agencies and limited human resources are most frequently identified by respondents from other countries as the most challenging factors.

4 Challenges Central Asia (including four Central Asian countries and the Russian Federation) and South Asia (including all 8 SAARC members) are found to have achieved lower levels of implementation

5 Solution TC = f (Imp, Dis, GDP) (1) Where: TC: Direct Trade Costs Imp: Trade facilitation implementation score Dis: Distance a country to the nearest sea port

6 and Investment Working Paper Series NO. 02/14 JUNE 2014 According to the WTO Trade Facilitation Agreement, Each Member shall establish and/or maintain a national committee on trade facilitation or designate an existing mechanism to facilitate both domestic coordination and implementation of provisions of this Agreement.

7 in China, Indonesia and Malaysia a mechanism for cross-sectoral coordination to facilitate trade and logistics

8 In India, Japan, Republic of Korea and Viet Nam, the committees for paperless trade facilitation (including single window) partially fulfill the functions of trade facilitation bodies but comprise fewer representatives from either government or private sector compared with a fully-fledged trade facilitation committee.

9 Transport Accessibility Availability of laws and regulations for crossborder electronic transaction Availability of recognized certification authority issuing digital certificates

10 Cross-border paperless trade practice Electronic exchange of Sanitary & Phyto-Sanitary certificate Electronic exchange of Certificate of Origin electronically Banks and insurers retrieving letters of credit electronically without lodging paper-based Engagement of cross-border electronic data exchange Source: UN ESCAP 2013/14 Survey

11 Cooperation at the borders Alignment of formalities and procedures with neighbouring countries at border crossings Alignment of working days and hours with neighbouring countries at border crossings Government agencies delegating controls to Customs authorities Cooperation between agencies on the ground at the national level Source: UN ESCAP 2013/14 Survey

12 Measures to facilitate transit Supporting pre-arrival processing for transit trade Cooperation between agencies of countries involved in transit Customs Authorities limit the physical inspections of transit goods and use risk assessment Fully Source: UN ESCAP 2013/14 Survey

13 Transport Reliability Cooperation between agencies on the ground at the national level Government agencies delegating controls to Customs authorities Alignment of working days and hours with neighbouring countries at border crossings Alignment of formalities and procedures with neighbouring countries at border crossings

14 Transport Reliability Information on transit fees and charges is available in paper publications Information on transit fees and charges is available on customs or trade-related website Periodic review of fees/charges and adaptation to changing circumstances Customs Authorities limit the physical inspections of transit goods and use risk assessment Supporting pre-arrival processing for transit trade Cooperation between agencies of countries involved in transit

15 Publication and Availability of Information Relevant trade-related legislation A summary description of importation, exportation and transit procedures Importation, exportation and transit procedures (including port, airport, and other entry-point procedures) The forms and documents required for importation into, exportation from, or transit through the territory of that Member Applied rates of duties and taxes of any kind imposed on or in connection with importation or exportation Fees and charges imposed by customs and other border/governmental agencies on or in connection with importation, exportation or transit

16 Publication and Availability of Information Rules for the classification or valuation of products for customs purposes Laws, regulations and administrative rulings of general application relating to rules of origin Import, export or transit restrictions or prohibitions Penalty provisions against breaches of import, export or transit formalities Appeal procedures Agreements or parts thereof with any country or countries relating to importation, exportation or transit Procedures relating to the administration of tariff quotas Contact information on enquiry points

17 Customs Website Is rate of duties published on Customs website Is information on import and export procedures published on Customs website Procedures of border agencies Publication of rules and examples of customs classification

18 Infrastructure areas for action include: investing in infrastructure with a focus on road safety; investing in cycling- and walking-friendly infrastructure; investing in clean and efficient public transport; improving intermodal changes; and discouraging car use for managing demand (such as by reducing the number of parking facilities and reducing the accessibility of city centres for cars).

19 International transport corridors, highways and railway routes

20 International Corridors

21 Two variants of routes in the East-West transport corridor are proposed: 1. South Baltic Sea Region Lithuania Belarus Russia Kazakhstan China; 2. South Baltic Sea Region Lithuania Belarus Ukraine Georgia Azerbaijan Kazakhstan China.

22 the development of rail traffic between China and Western Europe suffers due to the quality of infrastructure, delays at bordersand lack of interoperability (gauge differences between China (1,435mmgauge), Kazakhstan/Russia/Baltic Rim/Finland 1,520mm gauge) and Western Europe (1,435mm gauge)

23 From China to Western Europe: The transport of goods from China to Western Europe by ship takes around 35 days and by rail only around 14 days 1. By Sea via Suez (35 days) and around Africa (60 days, km). 2. By Continental routes (11000 km, 14 days)

24 only 5% of cargo flows are transported by rail or trucks The reason for that development is that land corridors have not been fully exploited because of lack of common tariff policy, the absence of harmonized border control procedures, bureaucratic barriers, and the lack of infrastructure

25 the railway network in the East West transport corridor There are different standards, different services are being offered in regard to legal base of different countries and different IT systems are being installed on railway sector in each country.

26 Bottlenecks for the joint railway concept Track infrastructure, Rolling stocks, Electric systems, Signal and security systems, IT systems. Operational bottlenecks: Border crossing and customs procedures, Information exchange difficulties, Various operational instructions. Railway business environment bottlenecks: Differences on railways business regulation legislation, Differences on tariffs policy, Different economic and political interests of the corridor countries

27 ITI Corridor At the same time container traffic is not sufficiently balanced. Containers mainly carry imported cargo and are mostly empty when they return. Therefore it is quite important to ensure that containers are full both ways. Another important aspect in the development of the corridor is the use of single tariffs for international cargo transportation. Although single tariffs are the best way of increasing cargo traffic the member countries can not find a common agreement on this issue. There are also some deficits in the area of customs and freight procedures which are not harmonised

28 Transport Inter operability This section examines information on (1) establishment of electronic/automated Customs system (e.g., ASYCUDA), (2) internet connection available to Customs and other trade control agencies at border-crossings and (3) establishment of an electronic Single Window System, as well as (4) electronic submission of documents.

29 Availability of ICT infrastructure for trade facilitation Electronic Single Window System Internet connection available to Customs and other trade control agencies at bordercrossings Electronic/automated Customs System Source: UN ESCAP 2013/14 Survey

30 Electronic submission of documents Electronic application for Customs refunds E-Payment of Customs duties and fees Electronic submission of sea cargo manifests Electronic submission of air cargo manifests Electronic submission of Customs declarations Source: UN ESCAP 2013/14 Survey

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32 Thanks