TRS as Measure of TF: Customs Experience in Asia Pacific Shujie ZHANG WCO Regional Office for Capacity Building (ROCB) May 20 22, 22, 2009 Beijing, China Regional Policy Forum on Trade Facilitation and SMEs in Times of Crisis 20-22 22 May 2009, Beijing, China
Against Crisis: Customs Action Promotion of risk management and other trade facilitation measures Customs-Customs cooperation Consultations with trade policy ministries Customs-Business partnerships Coordinated border management Deferred payment & Flexibility of guarantee (security) Sustain and promote growth of international trade which is in the benefits of the trade including SMEs * WCO Communication on the Global Financial Crisis for G20 Summit
Customs Evolving Role Revenue Collection Protection Society Protection Domestic Industry Economic Development Security Statistic Duty Other Tax Drug Firearm Counterfeit Environment Anti- Dumping Duty etc. Trade Facilitation Protection Compile Global Trade Supply Statistic Chain
WCO Tools for TF World Customs Organization: Sole inter-governmental organization competent in Customs matters with 174 member administrations. Single Window SAFE Framework of Standards (AEO) Guideline on application of ICT WCO Data Model, UCR Time Release Study, Risk Management Guide Integrated Supply Chain Management Guide Revised Kyoto Convention, Mutual Administrative Assistance, Harmonized System, Rules of Origin, WTO Valuation, Istanbul/ATA, Container Convention, etc. Capacity Building
Parties Involved in ImportationI Border Police Quarantine s Food sanitation Port Authority Import License Customs Importer Customs Broker Airlines Shipping lines Forwarder Warehouse Agents Immigration Banks Container Yards
Brief Background of TRS Systematic and standard system to measure average time between arrival of goods and its release Two ways: manual (Japan) and automatic (Korea) First TRS by Japan and US (1991) TRS was adopted by WCO (1994) TRS Guideline updated by WCO (2002) TRS Software developed by WCO and the World Bank (2005)
Why TRS To Customs & OGAs - Used as Trade Facilitatin Index & Clearance Quality Index - Identify bottlenecks/problems in clearance - Consider solutions to improve - Develop service charter To trade community - Predictability - Reduced time and cost of logistics
Ship Arrival Unloading Declaration Permission Delivery TRS: Image 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.
Link to Other TF Indicators Doing Business Index Cross border Logistics Performa nce Index Time / procedures National competitiven ess
Regional Situation of TRS National Level: Japan (Since 1991) Korea (Since 1998) Philippines (2002) Indonesia (2005) China (2006) Thailand (2006) Malaysia (2007) Australia (2008) Regional Level Brunei Darussalam, Indonesia, Malaysia, Philippines East ASEAN Area (BIMP- EAGA) (2009) Great Mekong Subregion (GMS) East West Economic Corridor (EWEC) (2009)
1991 1992 Country Case: Japan 47.6 45.2 94.5 84.9 26.1 Conduct regularly since 1991 19.8 1993 Quantitative 39.4 Evaluation 63.7 13.1 1996 (billion 35.4 Duration: yen) 49.5 10.2 1998 35.1 : 7 consecutive 46.0 5.6 days 2001 (8 th 31.1 37.8 4.9 2004 26.0 TRS: 13-19 36.8194.3March 2006) 2006 26.84.4 33.7 3.3 Geographical Scope: : All regional Customs 0 50 100 150 200 Arrival- Unload Unlord- Declaration Declaration- Cargo owner Permission (At least one sea port). 8.7 41.6 2.3 Types of goods: : All cargoes. 8.6 42.7 1.6 others 7.5 34.6 1.6 Choice of Traffic: : Sea and Air 6.7 37.9 1.8 35.6 3.5 27.3 0.7 Choice of Customs Office: : 22 major sea 3.5 21.6 0.6 2.6 14.0 0.4 ports and 4 major air ports. 1991 1992 1993 1996 1998 2001 2004 2006 Source: Ministry of Finance, Japan (2004 year basis) 1.2 12.8 0.4 Shipping company and 0 10 20 30 40 50 60 Arrival- Unload Unlord- Declarat ion Declarat ion- Permission
ROCB Support TRS Workshop in Thailand (2006) TRS Workshop in China (2006) TRS Workshop in Lao PDR, in cooperation with World Bank (2009) TRS Workshop for BIMP-EGGA (Mar.2009) TRS Workshop for GMS EWEC (Jun.2009) Developed Regional Best Practice Compendium on TRS (2007)
Implications on Policy Political commitment and will must be obtained. The purpose must be clearly defined as for what data, by who and through what methodology Close cooperation among relevant governmental agencies and support from private sector is necessary. The results should be used wisely and effectively. Integrate TRS with other Customs modernization initiatives.
Shujie ZHANG Technical Attaché WCO ROCB (Bangkok) shujie@rocbap.org rocb@rocbap.org http://www.wcoomd.org/home_wco_topics_ pfoverviewboxes_tools_and_instruments_ pftoolstimerelease.htm