BBL Trade and Transportation Facilitation : Learning from each other A Review of Recent Experience in Southeast Europehttp:// By Gerald Ollivier and Michel Audige

The TTFSE Program  Regional Investment Program US$120 million, WB $78 million  8 countries/one project in each implementation started in 2001 for first six  Goals: (a) Reduce : (i) processing time for legitimate traders/transporters, (ii) ‘facilitation’ payments, and (iii) corruption related to international transport and trade; (b) in parallel improve effectiveness of controls and of anti-smuggling efforts.  Components: TA for border agency modernization (Customs), X-ray equip., IT equipment (computers/network) and TA (Single Elect. Window), border crossing improvements, training to service providers, website on all applicable rules/procedures of border agencies  What made it possible? *Committed countries: -European integration prospects -Strong donor support (SECI,Stability Pact, US, Netherlands, Austria, France) -Peer pressure -High cost of not acting (transport cost/credibility as trading partners) *High level support from ECAVP -Willingness to go regional and add projects to CAS -Timely budget

Type of Benefits Expected Improved revenue collection by Customs Administration Reduced corruption and smuggling opportunities Cheaper import goods/inputs for consumer and industries More reliable business environment Time saving for goods and vehicle, reduced errors and lower transaction cost when interacting with border agencies Regional integration Adoption of international standards and procedures

Customs Performance Indicators Revenue Collected per Staff (US$)

Pilot Site : a Valid Concept … calling for further rollout

Stakeholders/Required Expertise STAKEHOLDERS : a wide array Government side : Customs, Border Police, Veterinary and Phyto-sanitary agencies, Ministry of Transport… Users: road transport association, freight forwarder association, Chamber of commerce, large companies, NGO focused on transport or corruption.. International partners : IRU, FIATA, Donors, UNECE, WCO, UNECEFACT REQUIRED EXPERTISE : Integrator, Customs Specialist, Customs IT Specialist creating links across various ministries/donors

Main TTF Issues Raising awareness about the issue! …despite frequent changes Conflicting Objectives? - Revenue collection vs. facilitation Selective Processing and Automation (keeping it simple) Cooperation interagency/Coordination Cooperation across border Dialogue with the private sector Provision of clear information on procedures/requirements Strong Government commitment is a must.

The TTFSE Response Memorandum of Understanding and Regional Steering Committee Raising awareness : user survey, partnership with professional associations and Chambers. Performance Measurement Top-down (strategy) and bottom up approach (pilot sites) Regional website ( to provide procedures/requirements online Focus on change management Stimulate exchange of positive experience (advance declarations, selective processing, opening hours, reducing opportunities for bribes…

Measuring Performance and Setting Targets  Customs efficiency indicators (MOF focus) -6 measures of Customs performance -Allow for comparison (evolution, regional) -Close attention needed in collection  Pilot site indicators (Trade Facilitation focus) -National Customs collecting data regionally and measuring the overall processing (from entry to exit) -Three indicators linked to covenants : Percentage of vehicles cleared in less than 15 minutes; percentage of declarations inspected; trucks opened at border. - Constant attention required to collect meaningful and comparable data while staff rotates  Target set based on initial data measurement (preferably independent)

TTFSE Scale and Timing Highly client- and context-dependent Project cost from US$ 11 m to US$27 million From 12 months to 24 months to prepare (identification- board) From US$160 k to US$400 k to prepare, US$70 to 90k to supervise per year (quite intense supervision) Regional economies of scale (surveys,..) One Program Team Leader, two TTL, one Sr. Customs Specialist, one Institutional Specialist

Tools Available Global Facilitation Partnership-Facilitation Audit Toolkit at and related questionnaire Example of facilitation audit carried out in the Caucasus at c005bfaec?OpenDocument User survey : report.htm Performance Measurement Manual PRO-Committee definition and relation among participants ( site) Sample tender documents at Transweblibraryeca Number of Distance learning programs to be available shortly under the GFP-DLI (road transport, forwarding, supply chain management…)

Building Partnership with Private Sector Essential for sustainability Raise awareness Contribution (1 st year $150k grant, $150k local contribution) Draw on existing structure and initiative (local and international) and support their strengthening (institutionalized but flexible) Support public-private dialogue with direct private sector contribution through professional associations/ Chamber NGO to organize debate/training/and structure available information (see Organize professional certification (IRU/FIATA)

Regional/National? Regional ties with individual country projects highly preferable –Economies of scale –Generate increased cooperation/competition –Stronger potential support from donors –Joint training programs to give access to opportunities –Replication of successful experiences But Regional is complex (frequent staff change, political instability) and require some strong commitment at VP level. Opportunities to cooperate across VPU as well Caucasus/Iran/Central Asia/Afghanistan

Link to Millennium Development Goals Target 16. In cooperation with developing countries, develop and implement strategies for decent and productive work for youth Economies of scale Giving access to new opportunities through TTF : market, jobs Facilitating cross border relationships and stability Thank You