Trade Facilitation & Iran Esfandiar OMIDBAKHSH, Ph.D. 88th CACCI Conference Asian Council on Trade Facilitation 18 September 2017 10:45-12:15 hrs., Round Table 4 Room C3.3, Sydney Convention Center Trade Facilitation & Iran Esfandiar OMIDBAKHSH, Ph.D. Iran Chamber of Commerce Director General - Multilateral Relations Division International Affairs Department

Trade Facilitation Trade Negotiations In A World Increasingly Characterized By Globalized Manufacturing, On Time Production + Integrated Supply Chain There Has Been A Growing Recognition Of The Need For Global Rules To Facilitate Trade Successive Rounds of Multilateral Trade Negotiations Culminating in the Uruguay Round in 1994 Succeeded in dramatically reducing tariffs + other barriers to International trade YET: Trade Costs Remained High… Due in Part to Administrative Burdens + Inefficient Customs Procedures Trade Facilitation Simplification + Modernization + Harmonization of export + import processes has emerged as a key issue for world trading system Entered into force on 22 February 2017 following its ratification by two-thirds of WTO membership 121 of 164 WTO Members Ratified TFA

Trade Facilitation Agreement TFA clarifies + improves upon 3 articles of GATT Negotiated in 1947 + Considered inadequate to meet needs of modern business world Articles 5, 8 + 10 ALSO: takes an innovative tailor-made approach to providing assistance + support to Developing + LDCs in implementing the TFA At Least 5 WTO Agreements Directly Linked to TFA Agreement on Customs Valuation Agreement on Import Licensing Procedures Agreement on Rules of Origin Agreement on Application of Sanitary + Phytosanitary Measures Agreement on Technical Barriers to Trade

Trade Facilitation Agreement TFA agreed to by WTO members at MC9 in Bali on December 2013, 1st multilateral trade agreement concluded since establishment of WTO in 1995 1ST Time in WTO History, THAT requirement to implement agreement is directly linked to the capacity of the country to do so The Main Goals of TFA Diversification of exports from developing countries + LDCs Inclusive of new products and partners. Increased involvement of these countries in global value chain Expanded participation of SMEs in international trade Increased foreign direct investment Greater revenue collection Reduced incidents of corruption TFA

TFA even larger gains for Developing and LDCs Could reduce trade costs by an average of 14.3 % + boost global trade by up to $1 Trillion a year implementation could add up to 2.7% a year in global export growth + more than 0.5 % to global GDP growth By 2030 even larger gains for Developing and LDCs where trade costs are = to applying a 219% tariff on international trade Full implementation could boost their export growth by 3.5% per annum 0.9% for annual economic output + increase diversity of exported goods Part of negotiations for many regional trade agreement (RTAs) More than 90% of notified RTAs currently in force have provisions of TFA By providing them with common standards for TFA + reducing overlaps in cases where countries are parties to several RTAs

TFA Can cover a wide range of issues from IT to transport + logistics services Efficiency of government administrative processes + regulatory requirements remain key factors Past trade agreements about “Negative Integration” countries lowering tariffs + non-tariff barriers WTO TFA is about “Positive Integration” countries working together to simplify processes share information cooperate on regulatory + policy goals

TFA Country Data: Iran Iran NOT WTO Member 1996 Application not open to Iran Iran NOT WTO Member 1996 Application Observer Status Since 2005 TFA not open to Iran Iran can voluntarily adopt all measures Highly Unlikely Due to Lack of Incentive

Digital Customs Work Plan: Being Implemented in Iran Already Phase 1: Improvement of Infrastructure & Security Phase 2: Implementation of Integrated Comprehensive Customs System (ICCS) Phase 3: Implementation of Single Window Phase 4: Implementation of Risk Management National Single Window Allows for Electronic/Automated Customs Processing Being Implemented in Iran Already

Iran Customs Reforms to be Implemented on Road to: WTO/TFA Electronic Data Bank World Wide Web Access Inquiry Point Establishment Electronic Payment System Requirement of Determining Methods of Testing + Declaration of Official/Approved Labs Periodic Review of Trade & Customs Procedures for Optimization + Trade Facilitation Public Comment Forums – for Businessmen & Traders Before Implementation of Laws/Regulations Electronic Pre-Booking + Pre-Arrival Processing to Extent Possible Requirement of Issuance of Request Documents before Goods Arrival Publishing of Related Regulations Requirement of Balance between Customs Charges + Services Rendered Requirement of Establishment of a National Committee on Trade Facilitation Separation of Release from Final Determination of Custom Duties, Taxes, Fees, Charges

Single Window in Iran IRICA & 19 Iranian Governmental & Non-Governmental Agencies involved in Import-Export Ministry of Trade Ministry of Culture Ministry of Health Ministry of Labor Ministry of Economics Ministry of Agriculture Ministry of Communications Ministry of Transportation & Urban Development Chamber of Commerce

Single Window in Iran Customs Ports Authority Banking Sector Standardization Agency Police Organizations Nuclear Agency of Iran Insurance Sector Tax Authorities National Broadcasting Court System

Iran Common Trade Gates w/other Countries Establishment of Common Border Gates with our Major Trade Partners, Such as: Turkey , Azerbaijan , Russia Simplified Customs Corridor (SCC) with Russia For Exchange of Data Data Exchange in Progress with: Armenia Afghanistan Data Exchange w/other Countries & Agencies For Certificate of Origin Through Chambers of Commerce: in Korea & China

The Last Report of WCO Diagnostic in 2017 Promotion of Iran’s Reforms on International Stage WCO Experts ⇛ some Customs Reforms Noteworthy + Significant WCO Experts ⇰ it is better to be shared with other Customs Administrations as “best practice” examples of Customs Modernization These Reforms Worthy of Mention are paperless clearance pool of experts green line clearance of declaration for about 50% without human intervention chatting functions in Iran’s SW system Can be presented + promoted at relevant WCO Venues + other international venues dealing with Trade Facilitation + Customs Automation

Iran Chamber of Commerce Thanks you for your Attention