Emerging issues in Transit Transport Facilitation- Implication for Customs

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1 11 th WCO PICARD Conference Manila, Philippines September 2016 Emerging issues in Transit Transport Facilitation- Implication for Customs Sandeep Raj Jain Economic Affairs Officer Transport Facilitation and Logistics Section Transport Division

2 Outline About United Nations ESCAP Emerging issues in transit transport facilitation Implication for Customs

3 About United Nations ESCAP ESCAP is one of five regional commissions of United Nations. Other four are in Europe, Africa, Latin America and Middle East Mission is to work with our member countries for their social and economic development that is inclusive, equitable and sustainable and help them achieving Sustainable Development Goals Vision to be the most comprehensive multilateral platform for promoting cooperation among member States to achieve inclusive and sustainable economic and social development Also a pre-eminent inter-governmental organization in the region to forge norms, agreements, policies on inclusive and sustainable development; generate innovative research and analysis; and serve as regional platform for development knowledge and capacity development

4 Emerging issues in transit transport facilitation 1. Increasing use of paperless transit transport systems Article V of GATT 1947 recognized freedom of transit. However, transit countries reserve the right to be compensated for irregularities in transit through guarantee/security for goods in transit TIR convention first international legal instrument providing for a robust guarantee system Increasing level of integration/ rising volume of transit transport / transit frauds coupled with emergence of ICTs led countries of European Union to develop a computerized transit system

5 Emerging issues in transit transport facilitation 1. Increasing use of paperless transit transport systems Success of NCTS provided inspiration to ASEAN countries ACTS Vienna Programme Action for LLDCs Para 37 (c) modernize transit and transport facilities including Customs and border facilities by fully utilizing the ICT Para 52 (b) encourages landlocked countries to promote use of modern Customs practices including electronic transactions and exchange of information WTO Agreement on Trade Facilitation- many provisions of Article 11 on transit can be complied efficiently with automated transit system Pre-arrival filing and processing of transit declaration (11.9) Prompt termination of transit operation if the transit requirements are met (11.10) Prompt discharge of guarantees ( )

6 Emerging issues in transit transport facilitation 1. Increasing use of paperless transit transport systems ESCAP implemented a project on Deepening Regional Connectivity: Strengthening Capacities of Asian Developing Countries to Increase Intra-regional Trade by Implementing Paperless Trade and Transport Facilitation Systems Study on paperless transit under the project found that the only operational paperless systems was the New Computerized Transit System (NCTS) used for common and community transit in Europe Guide on paperless transit systems to expand the knowledge of stakeholders in designing and implementing such systems Guide on establishing an automated customs transit transport system have been finalized detailing technical design of the system

7 Emerging issues in transit transport facilitation- 2. Application of electronic tracking systems using new technologies Increase accessibility of new technologies Already in use in many countries China, Jordan, Hong Kong, China and many countries in Africa Private companies have taken lead in offering electronic tracking solutions Disconnected ECTS is not able to provide appropriate transit facilitation- tracking system at regional level is one possibility ESCAP developed Secure Cross Border Transport Model in 2012 and did its pilot implementation Electronic tracking by making real time enforcement possible can reduce guarantee requirement

8 Emerging issues in transit transport facilitation 3. Electronic tracking of vehicles part of transit transport facilitation agreements Afghanistan-Pakistan Transit Transport Agreement 2010 Article 13 of the Protocol 1 on international carriage by road of goods and baggage in transit BBIN Motor Vehicle Agreement, June 2015 Need to standardize key components of tracking systems for them to contribute to transit transport facilitation

9 Emerging issues in transit transport facilitation 4. Increase in transit transport by railway Railway transport on time cost axis COST AIR RAILWAY SEA TIME Trade volume between EU and China USD 600 billion expected to touch 1trillion by 2020 Freight trains are running regularly between many cities in China and Europe Importance of coordination of regulatory controls at the border crossing ESCAP working to develop manual of good practices

10 Emerging issues in transit transport facilitation 5.Rising importance of intermodal transit transport facilitation Uncoordinated growth among transport modes has led to unsustainable trends in development of transport road transport contributes to three quarter of emissions from transport activities To reduce carbon footprints of transport sector while meeting increased demand for transport need to develop integrated intermodal transport system Increase in intermodal exchanges that happen at nodes where transport mode is changed ( dry ports, gateway ports, intermodal terminals) and need for enhanced efficiency of such exchanges Streamlined custom formalities to play an important role

11 Implications for Customs Re-engineering of customs control processes to support paperless information exchange- changes in legislation and related executive instruction Enhance cooperation with: border agencies to implement coordinated controls; and with transport operators for efficient exchange of information Streamlined and simplified custom formalities for intermodal exchanges Proactive private sector involvement Developing capacity of Customs Officials for them to use new technologies to discharge their duties

12 Thank you for your attention