Implementation of GMS Cross- Border Transport Agreement (CBTA)

Size: px
Start display at page:

Download "Implementation of GMS Cross- Border Transport Agreement (CBTA)"

Transcription

1 Implementation of GMS Cross- Border Transport Agreement (CBTA) Yushu Feng Senior Regional Cooperation Economist Asian Development Bank 27 May

2 Contents I. What is covered by CBTA II. CBTA implmentation: Achivements, Challanges III. GMS Customs Transit System IV. CBTA operation along EWC 2

3 If commodities do not cross the border, soldiers will cross the border."

4 I. What is covered by CBTA? No Go --- To Go: trucks, drivers and goods could go to any GMS country Open corridors (exchange traffic rights) Trucks (GMS road transport permit + bilateral permit) Drivers (mutual recognize driver s s license) Goods (dangerous goods, perishable goods) Transloading --- Go Through: goods with trucks could transit without reloading Customs Transit System: harmonized transit documents Issuing/guaranteeing organizations in operation Long Time --- Short Time: shorten clearance time at border by facilitating Single window inspection (in one country, by CIQ) Single stop inspection (two countries, by CIQ) Risk management (by CIQ) Pilot --- Full Implementation Pilot borders implementing CBTA before ratification, after all countries c ratified, more borders could implementing 4

5 CBTA Road Map CBTA Framework Agreement Signed & Ratified Signing of CBTA LAO Nov THA Nov VIE Nov CAM Nov PRC Nov MYA Sept Ratification of CBTA by 31 December, Annexes & Protocols (A&P) - Negotiation Signing of 20 A&P 16 A&P signed signed by all countries 2007 Ratification of 20 A&P by 2008 CAM PRC All ratified LAO All ratified MYA n/a THA 11 ratified VIE All ratified 16 ratified All ratified CBTA (Interim) Implementation Arrangements Customs Transit System 2012 CBTA Full Implementation GMS Road Transit Permit Customs Transit Document for Goods, Vehicles, and Containers Guarantee Organization GMS CTS CTS operation in EWC and NSC on in Initial Implementation at key borders - Hekou Lao Cai commenced - Lao Bao-Dansavanh commenced - Mukdahan-Savannakhet commenced 6 more commenced by 2011 (Mohan-Boten, Houayxay-Chiang Khong, Huu Nghi- Youyiguan) 5

6 CBTA Institutional Mechanism National ADB RETA Support Subregional Cambodia NTFC PRC NTFC Ministerial Joint Committee Lao PDR NTTFC Myanmar NTFC subcommittees Thailand NTFC Transport Customs Health Immigration Viet Nam NTFC

7 II. CBTA Implementation: Achievements CBTA project was rated successful by ADB OED Evaluation Study (August 2008) 4 country ratified all annexes and protocols of CBTA 6 Borders implementing CBTA: Lao Bao Dansavanh, Mukdahan Savannakhet,, Lao Cai Hekou 6 more borders are to implement CBTA by 2011 Mohan Boten (negotiated), Huu Nghi Youyiguan, Houayxay- Chiang Khong Public Private Partnership on Operation of GMS Customs Transit System (CTS) to be established Interim Agreement between Customs and Guarantee organizations (Viet-Lao Lao-Thai), signed by June 2009; Interim Agreement among Guarantee organizations of Viet-Lao Lao-Thai signed by June 2009 GMS Road Transport Permit is to operate together with GMS Customs s Transit 7 System

8 CBTA implemented at 6 borders Single Stop involving Thai, Lao, VN and PRC (Single-Stop Stop inspection be assessed by two countries' border control authorities together conduct one-stop inspection at the inbound checkpoint ) Lao Bao (VN) and Dansavanh (Lao) Single Window (Single-window inspection be assessed by the extent that all border control authorities in one country are co-located to provide one-stop service) Mukdahan (Thai) and Savannakhet (Lao PDR) Single Window Lao Cai (VN) and Hekou (PRC) 8

9 Devil is in the Detail "

10 CBTA Implementation: Challenges Although great progress has been achieved, Much remains to be done Incorporate CBTA provisions into national law/regulation In sufficient ownership of the CBTA by Customs and other government agencies Strengthen coordination of NTFC and Joint Committee to monitoring CBTA implementation Network Effect hasn t t been demonstrated due to limited road route and limited traffic volume Need active participation of private sector Significant capacity building for CBTA implementation at central, province and border level 10

11 III. GMS Customs Transit System Key Activities Status Legal Basis: Annexes 6, 8, 14 of CBTA Signed in March 2007 GMS Road Permit (Protocol 3 of CBTA) Signed in March 2007 Customs Transit documents for Goods, Vehicles & Containers Country Consultation on the arrangements along East- West, North-South Corridor Agreed; July 2007 Viet Nam, Lao PDR, Thailand & PRC; September November 2007 Model arrangements designed Agreed in April 2008 Identification of Issue/Guarantee organizations Confirmed in April, and July 2008 Study on pricing of Customs Transit documents completed in July 2008 Negotiation Meetings for finalization of the GMS Customs Transit System 29 July 2 August 2008 MOU agreed in principal Negotiation Meetings on EWC Feb. April, May, 2009 Training and Capacity Building (operations manual) Finalizing the CTS documents Completed by June 2009 CTS in operation along EWC among Viet-Lao-Thai Started on 11 June 2009

12 Model of the Proposed GMS Customs Transit System Transit Goods Movements Thai Customs Lao Customs Viet Nam Customs Board of Trade Bank Guarantee / Deposit LIFFA Bank Guarantee / Deposit VATA Bank Guarantee / Deposit Thai transport operators Lao transport operators Viet Nam transport operators

13 How GMS CTS Formulated (3 C) Comprehensive: Integrated solution to urgent need for TTF --- linked with GMS Road Transport Permit --- covering goods, vehicles, and containers customs transit temporary admission --- Compatible with other similar system Compatible --- TIR: GMS CTS is a simplified TIR system to meet GMS reality Common Transit Conformity with international best practice on transport and trade facilitation: 7 international conventions promoted by UNESCAP Conformity

14 How GMS CTS Formulated (2 A) (Interim) Agreement singed between Customs and Guarantee Organization -- Viet Nam Custom with Viet Nam Automobile Transport Association Lao Custom with Lao International Freight Forward Association -- Thailand Custom with Border of Trade (Thai( Chamber Commerce) (Interim) Agreement signed among Guarantee Organizations of VATA, LIFFA and BoT

15 PPP on CTS Customs Agreement Guarantee Organizations CTS Border Crossing Supervisor CTS Border Crossing Facilitator CTS operation At Borders 15

16 IV. CBTA Operation along EWC No Go --- To Go: trucks, drivers and goods could go to any Viet-Lao Lao-Thai country along the EWEC Open corridors (exchange traffic rights) Trucks (GMS road transport permit + bilateral permit) Drivers (mutual recognize driver s s license) Transloading --- Go Through: goods with trucks could transit without reloading Customs Transit System: harmonized transit documents issued Issuing/guaranteeing organizations in operation: VATA, LIFFA, BoT provide guarantee to transit goods, vehicles, and containers Long Time --- Short Time: shorten clearance time at border by facilitating Single window inspection ----at Mukdahan Savannakhet border checking points (in one country) Single stop inspection --- at Lao Bao Dansavanh bordrchecking points ( by two countries) Risk management: 5% for import, near 0% for export at Mukdahan customs Showcase --- Full Implementation showcase could be done at other corridors and CBTA routes, more borders could implementing CBTA 16

17 Widening completed 2007 Road opened March 2004 completed CBTA started June 2005 Road to be opened 2008 MOU for IICBTA finalized CBTA started on 20 Dec nd Mekong Bridge opened on 20 Dec2006 Hai Van Tunnel opened in Jun 2005 Da Nang Port Completed in

18 18

19 19

20 20

21 21

22 22

23 23

24 24