South Asia Subregional Economic Cooperation : SASEC Trade Facilitation

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1 South Asia Subregional Economic Cooperation : SASEC Trade Facilitation Presentation at the UNCTAD South Asia Regional Forum on Trade Facilitation 7-8 October 2013 Regional Cooperation and Operations Coordination Division South Asia Department Asian Development Bank Disclaimer: In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. South Asia Subregional Economic Cooperation (SASEC) Program SASEC vital statistics Strategic context of SASEC Snapshot of the overall SASEC Program SASEC trade facilitation component Trade facilitation activities 2 1

2 SASEC Vital Stats 4 member countries Bangladesh, Bhutan, India, Nepal $4.7 billion in investments 25 loan and grant investments $50 million in technical assistance 3 priority sectors Transport, trade facilitation, energy 2 priority transport corridors 3 One Shared Objective More efficient, transparent, secure, and service-oriented trade in SASEC countries to contribute to increased trade and cooperation within South Asia, create connectivity and linkages to East and Southeast Asia, ensure effective and efficient cross-border movement of goods, people, and businesses, and improve the quality of life and opportunity for the people of the SASEC region 4 2

3 ADB s Strategy 2020 and RCI Inclusive Growth Environmentally Sustainable Growth Regional Integration Private Sector Development Main Drivers in Strategy 2020 Knowledge Partnerships Good Governance Core Areas in Strategy 2020 Infrastructure Environment Regional Education Financial Sector Cooperation and Development Integration Regional/Subregional Economic Cooperation Programs Four Pillars in Regional Cooperation and Integration Strategy Monetary and Financial Cooperation and Integration Trade and Investment Cooperation and Integration Cooperation in Regional Public Goods 5 ADB s Approach to RCI in South Asia National Subregional Regional Inter-regional projects with subregional dimensions SASEC SAARC SAARC-BIMSTEC Practical Flexible Project implementation Capacity building Building block Multi-track Multi-speed framework 6 3

4 SASEC Snapshot Male, 1997: South Asia Growth Quadrilateral, endorsed by the Ninth SAARC Summit Bangladesh, Bhutan, India, and Nepal 2001: SASEC Program launched Bangladesh: New markets, port development, energy import Bhutan: Access to ports, energy export India: Access to ports for NE, transit to NE, energy Nepal: Access to ports, energy export 7 SASEC in an Connected Asia SASEC Asia is increasingly integrated economically stretching from the shores of the Black Sea in the West to the Western shores of the Pacific in the East and stretching from the Maldives and South Pacific to PRC and Central Asia in the North. ASEAN Association of Southeast Asian Nations BIMP-EAGA Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area BIMSTEC Bay of Bengal Initiative for Multisectoral Technical and Economic Cooperation CAREC Central Asia Regional Economic Cooperation GMS Greater Mekong Subregion IMT-GT Indonesia Malaysia Thailand Growth Triangle PIF Pacific Islands Forum SAARC South Asian Association for Regional Cooperation Disclaimer: In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. 8 4

5 10 regional road corridors/gateways 5 regional rail corridors/gateways 10 maritime gateways 7 aviation gateways policy measures to improve transport & trade facilitation (click on the colors) SAARC Corridor 1 SAARC Corridor 2 SAARC Corridor 3 SAARC Corridor 4 SAARC Corridor 5 SAARC Corridor 6 SAARC Corridor 7 SAARC Corridor 8 SAARC Corridor 9 SAARC Corridor 10 River 9 SASEC Transport Corridors

6 Objectives SASEC Trade Facilitation Improve regulations & procedures Build modern and efficient institutions Enhance transparency & accountability Improve coordination among stakeholders Progress SASEC Trade Facilitation Loan/ Grant SASEC Technical Assistance Workshops: Accession to RKC; Time Release Studies; Customs Leaders Dialogue; SAFE Framework of Standards; Risk-Based Cargo Selectivity; National Trade Facilitation Committees; Secure & Efficient Cross-Border Transport; Customs Valuation BPA-I on trade transactions, performance of select SASEC corridors BPA-II to add time-cost-distance and TRS methods Capacity Development Technical Assistance for customs reforms, analytical work, customs cooperation/ knowledge sharing

7 SASEC Trade Facilitation Strategy (draft) (1) 1. Priority Area 1 Customs modernization and harmonization Simplify and expedite border formalities (e.g., RKC, SAFE Framework of Standards, BPA) Increase application of ICT processing (e.g., ICES/DTI, ASYCUDA ++, BACCS/ RAMIS) Develop National Single Window system, as appropriate 2. Priority Area 2 Standards and conformity assessment strengthening Identify SPS-sensitive commodities/ strengthen National Conformity Assessment Boards (through SARSO) 13 SASEC Trade Facilitation Strategy (draft) (2) 3. Priority Area 3 Cross-border facilities improvement Establish logistics facilities and services at major trade ports (e.g., ICPs, LCS, ICDs) 4. Priority Area 4 Through-transport facilitation Develop and pilot bilateral arrangements (e.g., UNESCAP Secure Cross-Border Transport model) 5. Priority Area 5 Institution and capacity building Enhance cooperation and coordination mechanisms among stakeholders (e.g., trade facilitation committees, enhanced trade portals) 14 7

8 Business Process (BPA): Inventory of processes, documents, data, parties, rules & regulations Description of processes Specifications for harmonizing data and development of electronic documents Specifications to develop software for the automation of procedures Business models for operation of single window A basis for maintenance and improvement 15 Supply Chain Model in Detailed Sequence Supplier Intermediary Authorities Customer Buy Ship Pay Prepare for export Export Transport Prepare for import Import Commercial Procedures Establish contract Order goods Advise on delivery Request payment Transport Procedures Establish transport contract Collect, transport and deliver goods Provide waybill, gods receipt and status reports Regulatory Procedures Obtain export/import licenses, etc. Provide customs declaration Provide cargo declaration Apply trade security procedures Clear goods for import/export Financial Procedures Provide credit rating Provide insurance Provide credit Execute payment Issue statements 16 8

9 Major Recommendations Automation and ICT Reduce lengthy customs/ cargo handling time at Kolkata port Faster opening of L/C account Cargo insurance Obtain permits and certificates Subregional transit mechanisms Synchronized cross-border Customs Remove export/import regulatory burden 17 SASEC Priority Objectives in Trade Facilitation Improved regulations & procedures Modern and efficient institutions Enhanced transparency & accountability Improved coordination among stakeholders Customs Border Facilities Institution and Capacity Building Standards Transport Facilitation 18 9

10 Thank you! For more information: SASEC Trade Facilitation Program: