The World Bank

Modern Transit Global Trends and International Framework

Cost to the economy Companies sometimes spend more money complying with Customs regulations than Customs earn in revenue 9 billion documents are necessary each year to process movements of goods in the world According to UNCTAD, an average Customs process implies...

Costs 27 parties 40 documents 200 data elements (30 of which are repeated at least 30 times) Retyping of 30 percent of data

The Transit situation in Southeast Europe The region was - and will become again - a major transit zone –Traffic goes around –Traffic from Turkey goes across the Mediterranean Trans European corridors TRACECA

Costs Border delays and processing account for 10 percent of transport times between SEE and EU countries

Thank you.

For us, transit is percent coordination, and 10 percent technology

The Bank approach Integration –Dialogue –Public - Private sector cooperation –Inter-agency cooperation Benchmarks –Indicators –Pilot sites

What can the Bank bring? Global perspective on trade facilitation Transit considered as a support to trade facilitation We measure times and costs Funding of projects –TTFSE (Southeast Europe) –Caucasus –Kirgyzstan

What else can the Bank bring Constant dialogue with the authorities Facilitation of contacts –Regional structures –Working groups Strong partnership with –International organizations (UN agencies, IMF, EU, WTO, WCO) and –The private sector

Integrated approach Implies other agencies Institutional reform International cooperation

The Bank approach Computerization –Indispensable to meet project objectives –Experience sharing –Opening of the system Data sharing Web-site

Measurement Performance indicators Annual review Independent survey on transit costs

Computerization We seek the best system for the country, make use as much as possible of what exists, fit in other projects We encourage development of standards

Where do we go next? Promote cooperation at the borders –Cross training - awareness –Delegation of activities Cross border exchanges –Single data capture –Data transfer –Use of Customs functions for other purposes

The technological solutions New solutions –Smartcard, bar coding, OCR,scanning Integrate systems so they are ready for new solutions when they become available

The near future Best practice –Provide a package Refine benchmarking –To prepare projects –To evaluate results Develop transparency

Technical solutions We can disseminate information –Technology (Smartcards, scanners) –Hardware –Software solutions But it is not our role to design solutions Although we can contribute to put together documentation on best practice

Example Equipment –Bar coding –Automatic data capture –Use of OCR technology –Telecommunications

Example Organization –Single data capture –Coordination across agencies and borders –Coordination with the trade community

Example Administrative reform –All legislation and regulations must often be reviewed –Respective role of agencies must be clarified

Sofia Office

The World Bank