Paperless Trade in Azerbaijan: State of Affairs Anar Suleymanov State Customs Committee Republic of Azerbaijan towards a better trade environment

PRESENTATION OUTLINE Overview of TF/PT Initiatives Major Challenges Way Forwards

Right questions, right answers

Ever changing global trade environment growing trade volumes growing demand from business community increased complexity and new trading patterns innovations with international trade supply chain THE WORLD WE LIVE IN

Risk Management Risk Assessment Post Clearance Audits Advance Rulings Maximum use of Information Technology Automation Partnership with the Trade System of appeals Pre-arrival Declaration /Information Single Window Authorized Traders WCO TF Techniques Simplified Procedures and Practices

International Rankings: Azerbaijan  DB2016 rank: 63  DB2015 rank: 80 Change in rank: 17  DB 2016 TAB: 94  DB 2015 TAB: 166 Change in rank: 72

7 Automated Customs Management: UAMS Integrated Approach – Single Window Minimized Contacts – e-Customs Services Targeted Controls – Pre-Arrival Information Performance Measurement – Time Release Study Secure Transportations – GPS Trace and Track System of Appeals – Customs Web Portal Innovation Projects

UAMS Traders e-Government Customs clearance and customs control Financial activities Customs Enforcement Trade Statistics Resource management Risk management Integrated Document Management Business Process Management United Automated Management System

Min. of Road Transport Phitosanitary Control Veterinary Service Sanitary -Quarantine Service Border Service UAMS Min. of Taxes Min. of Finance Traders, Brokers.... IAMAS Central Bank INTERPOL FHN, Radiation Stand. and Patents Min. of Economic Devel. IRU, SITA Caspian Adm. Traffic Police Central Customs Examination AZAL CARGO

10 Single Window: Customs Leads Presidential Decree on the application of the Single Window (Nov 2008) Presidential Decree on the application of the Single Window (Nov 2008) Dozens of internal regulations Dozens of internal regulations Cooperate with other border agencies, interact, grow mutual trust, and remove overlaps or gaps to ensure consistent approach

C2B: NEW OPPORTUNITIES FOR BUSINESS

12 Time Release Study Identifying bottlenecks processes affecting customs release Assessing new procedures, operations, etc. Identifying opportunities for TF improvement Establishing baseline TF performance measurement Develop a new benchmarking tool

TRS: Methodology and Approach Focus on customs particular needs Measure not time, but the effectiveness of the operational procedures Take traders’ perspective

Time and Duration Geographical scope – Border Customs Checkpoints Type of Transportation – Land Transportation Type of Goods – All Commercial Goods Customs Procedures – Imports, Exports and Transit Scope

Time Release Study (TRS): Azerbaijan approach Single Window Border Service Т1Т1 Т4Т4 Т2Т2 Т3Т3 Border Crossing Time Document Submission Time Document Delivery Time Entrance Time

Implementation of ICT-based Time Release Study (TRS) Т1Т1 Border Customs Checkpoint Т4Т4 Customs Operations «Single Window» Т2Т2 Т3Т3 Customs of destination Customs of cargo release Т5Т5 Т6Т6 Т7Т7 Border Crossing Time Document Submission Time Document Delivery Time Entrance Time Entry time to clearance cust oms Time of lodging documents for clearance Cargo release time Time required for customs control at the border Т bc = Т 4 – Т 1 Time required for Cargo Clearance Т cr = Т 7 – Т 5 Time required for Cargo Release Т rel = Т bc + Т cr

TRS DATA PUBLICATION

Regional Cooperation Pre-Arrival Information Exchange Georgia – ALREADY EXCHANGING GUAM – PROTOCOL SIGNED (July 8th 2015) Turkey – DRAFT PROTOCOL Russia – DRAFT PROTOCOL Islamic Republic of Iran – DRAFT PROTOCOL Uzbekistan - DRAFT PROTOCOL

20 To be launched from Jan 1 st 2016 Paperless Declaration System

Use advanced ICT and innovative working methods, while re-engineering business process Cooperate with OGAs and customs administrations: interact, grow mutual trust, and remove overlaps or gaps to ensure consistent approach; Involve trade: provide incentives, provide a better service; Integrate to global logistics: introduce new concepts, improve capacity, train personnel. What are the Challenges?

Automation of document management AMS “Single Window” (Road transport) Integration with other agencies AMS of customs Time Automation level AMS “Single Window” (Air, Marine and Railway) Clearance (Customs receipt order) AMS of customs declaration Application of electronic keys Implementation of GPS system for road transport Paperless technology in customs e-Customs e-Government … e-Payments e-Procurement e-Trade Roadmap for Paperless Trade

Thank you !