1. Trade Facilitation & Iran Esfandiar OMIDBAKHSH, Ph.D.
88th CACCI Conference Asian Council on Trade Facilitation 18 September :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

2. 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

3. Trade Facilitation Agreement
TFA clarifies + improves upon 3 articles of GATT
Negotiated in Considered inadequate to meet needs of modern business world
Articles 5,
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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. Iran Chamber of Commerce
Thanks you for your Attention