Trade Facilitation at the Border 4 th seminar, UN Development Account project Trade Facilitation in Central Asia (Dushanbe, May 2009) The Harmonization Convention and Border-Crossing Facilitation Konstantin Glukhenkiy, UNECE Transport Mario Apostolov, Regional Adviser, UNECE Trade

Convention on the Harmonization of Frontier Controls of Goods, Contracting Parties53 Contracting Parties Latest accessions: Jordan, Lao People’s Democratic Republic, Moldova, TunisiaLatest accessions: Jordan, Lao People’s Democratic Republic, Moldova, Tunisia Expressed interest to join: China, IranExpressed interest to join: China, Iran

Contracting Parties

 Increasingly numerous and complicated formalities and controls at borders for persons and goods  1984 EU estimate: US$ 12 billion loss annually due to border crossing difficulties  IRU estimate: International road freight transport in Europe requires around 40 documents  Lack of simplification, no one- stop-shop Background of the Harmonization Convention

 Legal framework for Coordinated Border Management and harmonization of controls  Simplify customs and administrative border crossing procedures (sanitary, veterinary, phytosanitary etc.)  Harmonize formalities  Reduce the number and duration of controls  Standardize documentation  Co-ordinate national and international control procedures Aim of the Harmonization Convention

 Reduction of border delays,  Reduction of transport cost  Reduction of trade transaction cost  Reduction of border operating costs for State budget  More efficient investments in border facilities Benefits of the Harmonization Convention

Scope of the Harmonization Convention All goods moved across borders (exported, imported or in transit)All goods moved across borders (exported, imported or in transit) All control servicesAll control services All modes of transportAll modes of transport Specific provisions for certain transport modes and goodsSpecific provisions for certain transport modes and goods Also addresses certain issues with regard to vehicles and driversAlso addresses certain issues with regard to vehicles and drivers

General principles vs. detailed provisions Framework providing for a high degree of flexibility in organizing national and international cooperationFramework providing for a high degree of flexibility in organizing national and international cooperation No universal ‘one size fits all’ solutionNo universal ‘one size fits all’ solution Examples of best practice are essentialExamples of best practice are essential Integrated operational annexes are requiredIntegrated operational annexes are required Annex 8 on road transport came into force in 2008Annex 8 on road transport came into force in 2008 A new Annex 9 on rail transport has been agreedA new Annex 9 on rail transport has been agreed

Major aspects of border crossing facilitation InfrastructureInfrastructure ProceduresProcedures Documents and informationDocuments and information PersonnelPersonnel

Infrastructure Necessary equipment and facilities at frontier pointsNecessary equipment and facilities at frontier points Minimum list for road border crossingsMinimum list for road border crossings Common facilities and shared use of equipment, both domestically and with neighbouring countriesCommon facilities and shared use of equipment, both domestically and with neighbouring countries To the extent possible, controls should be moved from the border to other locations (e.g. departure or destination)To the extent possible, controls should be moved from the border to other locations (e.g. departure or destination) At border crossing points, controls should be replaced by verification of internationally standardized documentationAt border crossing points, controls should be replaced by verification of internationally standardized documentation

Domestic intra-service coordination: sine qua none for efficient procedures There are many control authorities at the border. Who takes the lead?There are many control authorities at the border. Who takes the lead? Control mentality is an obstacleControl mentality is an obstacle Each control authority wants to have their shareEach control authority wants to have their share A decision should be taken at the highest possible political levelA decision should be taken at the highest possible political level Establishment of a single agencyEstablishment of a single agency Delegation of authorityDelegation of authority

Documents and information Internationally standardized (UN Layout Key) documents and certificatesInternationally standardized (UN Layout Key) documents and certificates Use of any technical/commercial documentsUse of any technical/commercial documents Use of ICTUse of ICT Exchange of informationExchange of information Transparency with respect to legislation, regulations and proceduresTransparency with respect to legislation, regulations and procedures

Personnel Qualified personnel in sufficient numbers should be availableQualified personnel in sufficient numbers should be available Officers should get instructions for acting in accordance with international agreements and national provisionsOfficers should get instructions for acting in accordance with international agreements and national provisions Joint controlsJoint controls Delegation of functionsDelegation of functions

Monitoring mechanism Monitoring is essential for the proper implementationMonitoring is essential for the proper implementation What gets measured gets managedWhat gets measured gets managed Border crossing performance indicators/benchmarks: OSCE-UNECE HandbookBorder crossing performance indicators/benchmarks: OSCE-UNECE Handbook Every two years, UNECE is to carry out a survey on the implementation of Annex 8 on road transportEvery two years, UNECE is to carry out a survey on the implementation of Annex 8 on road transport Public-private partnershipPublic-private partnership

 Chapter I: General provisions incl. definitions  Chapter II: Harmonization of procedures Co-ordination of controls, Resources of the services, International co-operation, Co-operation between adjacent countries, Exchange of information, documents  Chapter III: Goods in transit  Chapter IV: Miscellaneous  Operational annexes Structure of the Harmonization Convention

 Harmonization of Customs and other controls Organization of controls (simultaneous control, opening hours, availability of facilities and personnel, delegation to Customs) Result of controls Harmonization Convention Annex 1

 Medico-sanitary inspection Protection of life and health of persons Information (types of goods, offices, requirements) Organization of controls (availability of facilities, storage) Goods in transit and co-ordination Harmonization Convention Annex 2

 Veterinary inspection Transport of animals and animal products Information (types of goods, offices, requirements) Organization of controls (availability of facilities, storage, working hours) Goods in transit and co-ordination Harmonization Convention Annex 3

 Phytosanitary inspection Relating to transport of plants and plant products Information (types of goods, offices, requirements, restrictions/prohibitions) Organization of controls (storage, disinfection, working hours) Goods in transit and co-ordination Harmonization Convention Annex 4

 Control of compliance with technical standards Relating to technical standards of goods (conformity, PSI) Information (types of goods, offices) Harmonization of standards Organization of controls Goods in transit and co-ordination Harmonization Convention Annex 5

 Quality Control Information (offices, procedures) Organization of controls (facilities, working hours) Does normally not apply for goods in transit Co-ordination Harmonization Convention Annex 6

New Annex 8 Facilitation of border crossing procedures for road transport Facilitation of border crossing procedures for road transport To the extent possible, perform controls at the places of departure or destination To the extent possible, perform controls at the places of departure or destination At crossing points, replace controls by verification of internationally standardized documentation and certificates At crossing points, replace controls by verification of internationally standardized documentation and certificates

Facilitation of visa procedures for professional drivers Facilitation of visa procedures for professional drivers Facilitated border crossing procedures for goods, particularly for urgent consignments, such as live animals and perishable goods Facilitated border crossing procedures for goods, particularly for urgent consignments, such as live animals and perishable goods

Faster controls of road vehicles (technical inspections) and equipment used for transport of goods under controlled temperatures Faster controls of road vehicles (technical inspections) and equipment used for transport of goods under controlled temperatures Standardized weighing procedures and international vehicle weight certificate Standardized weighing procedures and international vehicle weight certificate Minimum infrastructure requirements for efficient border crossing points Minimum infrastructure requirements for efficient border crossing points

 Languages: English, French, Russian and Spanish  UNECE Working Party on Customs Questions affecting Transport (WP.30)  Administrative Committee (Contracting Parties)  Secretariat (UNECE) Management of the Harmonization Convention

http.//border.unece.org ible/partI/chapterXI/subchapA/treaty17.asp Harmonization Convention

Results from the 2006 survey Very useful tool for transport facilitation at national and international levelsVery useful tool for transport facilitation at national and international levels Used as a model both at the national level and among neighbouring countriesUsed as a model both at the national level and among neighbouring countries

Problems highlighted by the survey Lack of detailed guidelines for organizing cooperation at the national and international levelsLack of detailed guidelines for organizing cooperation at the national and international levels Need for training/capacity building in the implementation of integrated border management proceduresNeed for training/capacity building in the implementation of integrated border management procedures