Facilitating the Regional Movement of Goods. Paul Apthorp. Asia Pacific Trade Facilitation Forum. Bangkok 26 th November 2009

Transcription

1 Facilitating the Regional Movement of Goods Asia Pacific Trade Facilitation Forum Bangkok 26 th November 2009 Paul Apthorp

2 Phase I December 2005 ARN Developments Linking Singapore- Malaysia Thailand Growth 300 % Phase II January 2007 Linking Thailand- Laos- Vietnam via EWEC Phase III July 2008 Linking South China to the ARN via Hanoi Linking Phonm Phen to Bangkok and Saigon Feb 2009

3 Singapore 新加坡 Myanmar 缅甸 Laos 老挝 VTE VTE Vietnam 越南 Hanoi 河内 PXG 凭祥 Nanning 南宁 China 中国 Guangzhou 广州 Thailand 泰国 Bangkok 曼谷 Phnom Phen 金边 ZVK Cambodia 柬埔寨 Ho Chi Minh 胡志明 Danang 岘港 Malaysia 马来西亚 Kuala Lumpur 吉隆坡

4 Trade Facilitation The simplification and harmonization of International Trade procedures (WTO).. Streamlining and simplifying International Trade Procedures in order to allow for easier flow of goods (OECD) Simplification and harmonization of International Trade procedures to assist the movement of goods (DFAT Aus)

5 Countries & Customs Some Countries Customs seen as Pro Export Customs are User friendly simplified export processes Customs are trade facilitators First. Revenue collectors Second Customs allow internal bonded transfer on a per consignment basis User Friendly Customs in GMS Thailand..Inland bonding on a per shipment basis Laos.. huge improvement across EWEC...user friendly route Vietnam pro export and pro trade attitude

6 Countries & Customs Some Countries Customs regulations differ by border and method of export If the International land border is with the province.much easier Lack consistence in interpretation of regulations Strict adherence to Articles of Association Not listed, can t export. Buy the license through a broker!

7 Customs Exporting Why does it need to be so hard? Importing is another subject

8 Simplification & Harmonization Export Customs Clearance Holding up shipments for days Name on export license is not an exact match with Invoice CIQ certificate is made out to a subsidiary Packing list should list some items separately Senior officer ( decision maker) in meeting! Pre registration with customs Requiring HS codes to be pre-register to use a customs route 7 Days in advance Including individual product weights in grams Bonded shipments require Endorsed Contract of sale

9 Simplification & Harmonization Export Customs Clearance cont. Designated routes for certain products Some products can only clear at certain export ports Pre Lodgment for export clearance 24 hours in advance Then the tea money ( $ 150) to get the stamp No consistency between export border In the same country!

10 Simplification & Harmonization Export Licenses Often bought though agents Not needed at some export border customs User friendly pro export customs don t care..don t check Re-cycled packing material Not mentioned in Articles of Association.. therefore Must buy export license from a broker For second had line assembly boxes!

11 Simplification & Harmonization Export Bonding the real nightmare! Only one shipment per vehicle No consolidation.no matter how small the shipment Must have contract of sale stamped and endorsed Export Clearance Some countries pro export Some regions / gateways..pro export Some are rule book junkies!

12 Singapore 新加坡 Myanmar 缅甸 Laos 老挝 VTE VTE Vietnam 越南 Hanoi 河内 PXG 凭祥 Nanning 南宁 China 中国 Guangzhou 广州 Thailand 泰国 Bangkok 曼谷 Phnom Phen 金边 ZVK Cambodia 柬埔寨 Ho Chi Minh 胡志明 Danang 岘港 Malaysia 马来西亚 Kuala Lumpur 吉隆坡

13 Cross Border Transport in Asia..Today Road Transport Border Transshipment CBTA. Coming in GMS resistance by local interests CBTA not in operation yet..despite the press announcements! Sea Designed for Long Distance High Volume Ports often congested with High charges Can take a week to get a container out! Air Capacity limitation in regional centers Freighters only serve major hubs Mainly narrow body PAX aircraft with small freight capacity

14 Reality Today Thailand- Hanoi Pearl Delta ( Guangzhou- Shenzhen ) Growing demand : High Tech Component swapping get it out of the air Conventional Sea too slow Must be time specific to meet JIT Manufacturing requirements North Vietnam Demand for export freight capacity outstrips supply Cambodia Exports Constrained by capacity Going via road to SGN or BKK for air uplift Going via sea to SIN for air uplift

15 Did You Bring Any Help?

16 Costly Border Transshipment

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18 Borders Borders Open 12 hours x 7 Days Multi Million Dollar Border Facilities But..Customs Opening hours 5 Hours a day 5 days a week With a 3 hours lunch Apparently it s cultural!

19 Time is more expensive than distance ( asset utilisation) The easiest and quickest route is generally cheaper than a slower shorter route. Transport takes the route of least resistance Vehicles ( Trucks, Planes, Ships) Cost money standing still The Cost of Transport Freight rates are driven by market forces not distance

20 The Certainties in Transportation Handling Costs Money Every time you stop, offload or Transship it costs money Handling Facilities have to be paid for! Cranes, Warehouses and Labour cost money The costs are passed on to the Customers! They go to the Cost Of Goods Sold!! Affecting the competitiveness of goods, imports or inputs

21 Updating Transport Regulations and Moderisation London to Paris 1981 $ 900 One way No channel tunnel.. Ferry costs $ 300 one way. No open market Permits required Customs clearance.. With costs 12 meter Trailers ( 40 ft) 18 ton maximum pay load $ 0.05 per kilo London Paris 2008 $ 900 One way ( $2300 with Inflation) Channel tunnel No permits Reduced customs procedures 13.6 Meter Trailers 24 ton maximum pay load $ per kilo ($ with Inflation)

22 Updating Transport Competition and Moderisation London to Paris 1981 $ 900 One 18 tons = $ 0.05 per kg Using UK inflation $ 900 in 1981 = $ 2300 in price should be $ per kg Current Price $ per kg

23 Why Make Export Hard? Export is the life blood of developing countries Export creates Jobs at all levels Why is Export Clearance so Hard in some countries Can understand Imports But why make export clearance so hard??

24 The Challenge Encouraging a more modern and efficient door to door transport system such as that offered by Multi Modal Transport will go a long way towards alleviating rural poverty, enhanced trade and improve the foreign exchange earnings of developing countries and countries in transition UNCTAD

25 The Road from Guangzhou to Bangkok Despite the obstacles