TRS as Measurement of TF: Customs Experience in Asia Pacific Shujie ZHANG WCO Regional Office for Capacity Building (ROCB) For the WCO PICARD Conference 2009 Sep 28 30, 2009 San Jose, Costa Rica
Why: Efficiency of Customs How to measure? facilitation Facilitate legitimate trade control Collect revenue Protect domestic Ind. Protect society Secure trade security
Why: Complexity in Importation Border Police Quarantine s Food sanitation Port Authority Import License Customs Importer Customs Broker Airlines Shipping lines Forwarder Warehouse Agents Immigration Banks Container Yards
Why: Stakeholders Customs &OGAs Trade community Government International community - Internal audits or review - Continous improvement - Link to modernization - Remove time delays - Modern logistics like just-intime inventory - Predictability and transparency - Trade facilitation - Better revenue generation - Good governance - WTO trade facilitation negotiation - Remove non-tariff barriers Simplified, transparent procedures Efficient processing of legitimate trade flow Reduced time and cost
TRS: Image (sea) Consumed by Shipping company Shipping agent Port Authority, etc. Consumed by Importer, Customs broker Container Yard OGAs, etc. Consumed by Customs Bank Customs broker Consumed by Port Authority Container Yard Warehouse, Forwarder, etc. Ship Arrival Unloading Declaration Permission Delivery
What: TRS Timeline First TRS by Japan and US TRS Guideline was reviewed & updated by WCO 1991 2001 1994 2005 TRS was adopted by WCO TRS Software was developed by WCO and the World Bank
Link to Other TF Indicators Doing Business Index Cross border Logistics Performan ce Index Time/ procedures Enabling Trade Index
Regional Rollout: Membership
Regional Rollout: Phased Approach Initiation Preparation Data Data Collection Analysis & Report Action For Improvement
Regional Rollout: Matrix Level Countries / Projects Country Level Time Method Use of WCO Software First Time Initiation Support Australia 2007 Manual No Yes APEC Japan, Korea China 2006 Manual No Yes APEC ROCB Indonesia 2006 Manual No Yes NA JICA Japan Korea Since 1991 Since 1997 Manual No Periodical Self / Auto -matic No Periodical Self / Regional Level Lao PDR 2008 Manual Yes Yes World Bank ROCB Philippines 2002 Manual No Yes Self JICA Malaysia 1995, 2007 Manual Yes No Self WCO Thailand 2006 Manual No Yes Self ROCB GMS CBTA EWC TRS [i] BIMP-EAGA TRS [iii] 2009 Manual Yes No [ii] ADB ROCB 2009 Manual Yes Yes ADB ROCB
Regional Rollout : Japan Case 1991 47.6 1992 45.2 1993 Quantitative 39.4 Evaluation 63.7 Conduct regularly since 1991 1996 35.4 49.5 10.2 (billion Duration: yen) 7 consecutive days 1998 2001 2004 2006 35.1 31.1 (8 th 26.0 TRS: 13-19 36.8 4.3March 2006) 26.8 46.0 37.8 33.7 3.3 4.9 94.5 84.9 5.6 Geographical Scope: All regional Customs 1991 (At least one sea port). 13.1 8.7 41.6 Types of goods: All cargoes. 1992 7.5 34.6 Choice of Traffic: Sea and Air 1993 1996 3.5 27.3 0.7 Choice of Customs Office: 22 major sea 1998 2001 2004 2006 2.6 14.0 0.4 ports and 4 major air ports. 1.2 19.8 26.1 0 50 100 150 200 3.5 8.6 6.7 4.4 Arrival-Unload Unlord-Declaration Declaration-Permission 12.8 21.6 0.4 35.6 37.9 0.6 42.7 Shipping 2.3 company and 0 10 20 30 40 50 60 Arrival- Unload Unlord- Declaration Declaration- Permission 1.6 Source: Ministry of Finance, Japan (2004 year basis) Cargo owner others 1.8 1.6
Regional Rollout: ROCB Role TRS Workshop in Thailand (2006) TRS Workshop in China (2006) TRS Workshop in Lao PDR, in cooperation with World Bank (2008, 2009) TRS Workshop for BIMP-EGGA (Mar.2009) TRS Workshop for GMS EWEC (Jun.2009) Developed Regional Best Practice Compendium on TRS (2007)
Regional Rollout : Common findings Customs may not be a significant impediment Entities and variables on TTF are numerous and usually intertwined and inter-dependent The private sector may be responsible for some delays Regular conduct of a TRS
Regional Rollout: Dilemmas Customs only vs. whole process? Look easy vs. actually difficult? Standard-alone vs. integral? Quantitative vs. qualitative? Performance measurement or not? Benchmarking tool or not? The quicker, the better?
On Successful TRS Political will and concrete commitment should be in place. Stakeholders buy-in should be obtained. Project management approach should be adopted. Defining types and components of clearance process is critical. Principle of 3W & H should be followed. Use findings properly and utilized wisely
Conclusions TRS can contribute to the continuous improvement of trade and transportation facilitation The WCO Guideline should be adapted locally. TRS incorporated into national TTF strategy and Customs modernization program Capacity building is critical
Shujie (Jack) ZHANG Technical Attaché WCO ROCB (Bangkok) shujie@rocbap.org rocb@rocbap.org