1. Beirut, Lebanon, 6-7 November 2006
21/09/2018
Introduction to TRADE FACILITATION
Beirut, Lebanon, 6-7 November 2006
United Nations Conference on Trade and Development
21/09/2018
Workshop on Trade Facilitation Introduction
Basics on Trade Facilitation

2. Workshop on Trade Facilitation Introduction
Key points
Scope of Trade Facilitation;
SME’s possible concerns;
Important aspects of an international trade transaction;
Key areas of work;
Conclusions.
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Workshop on Trade Facilitation Introduction

3. Beirut, Lebanon, 6-7 November 2006
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Operational
Issues
Regulatory
Issues
The scope
of Trade Facilitation
Bank &
Insurance
Issues
Customs
Issues
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Workshop on Trade Facilitation Introduction
Basics on Trade Facilitation

4. Beirut, Lebanon, 6-7 November 2006
21/09/2018
Trade Facilitation:
Improving the environment
of trade transactions
Operational
Issues
Regulatory
Issues
Trade
Facilitation
Bank &
Insurance
Issues
Customs
Issues
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Workshop on Trade Facilitation Introduction
Basics on Trade Facilitation

5. Development Dimension Issues
Beirut, Lebanon, 6-7 November 2006
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Development Dimension Issues
Trade facilitation is a development factor and not simply an administrative tool with an impact limited to border-crossing trade operations.
It strives to create commonalities in standards & practices not only between the trading partners’ respective environments but also between different actors within the same country.
It can foster better public capacity to monitor and supervise foreign trade as well as support existing and potential national exporting trading communities.
At the same time, the facilitation needs and priorities of countries may differ with regard to the structure of trade, the trading partners involved and the available transport infrastructure and services.
Rules on trade facilitation are currently being discussed within the WTO Council of Trade in Goods, with a view to determining the modalities of possible negotiations after the Fifth Session of the Ministerial Conference and identifying the trade facilitation needs and priorities of members
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Workshop on Trade Facilitation Introduction
Basics on Trade Facilitation

6. SME’s possible concerns
Beirut, Lebanon, 6-7 November 2006
21/09/2018
SME’s possible concerns
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Workshop on Trade Facilitation Introduction
Basics on Trade Facilitation

7. Workshop on Trade Facilitation Introduction
Concerns of SMEs
Lack of understanding of the international trade transactions (issues related with what may happen beyond the national boundaries).
Complexity of procedures and documents.
Complexity of the organization of door-to-door deliveries.
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Workshop on Trade Facilitation Introduction

8. Beirut, Lebanon, 6-7 November 2006
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What do SMEs want ?
Transparency
Non-discrimination
Simplification
Most Favored Nation treatment… ?
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Workshop on Trade Facilitation Introduction
Basics on Trade Facilitation

9. Beirut, Lebanon, 6-7 November 2006
21/09/2018
Table 12.1
Which indicators make up the ranking?
Starting a business
Procedures, time, cost and paid-in minimum capital to open a new business
Dealing with licenses
Procedures, time and cost of business inspections and licensing (construction industry)
Employing workers
Difficulty of hiring index, rigidity of hours index, difficulty of firing index and firing cost
Registering property
Procedures, time and cost to register commercial real estate
Getting credit
Strength of legal rights index, depth of credit information index
Protecting investors
Indices of the extent of disclosure, extent of director liability and ease of shareholder suits
Paying taxes
Number of tax payments, time to prepare tax returns and total taxes as a share of commercial profits
Trading across borders
Documents, time and cost to export and import
Enforcing contracts
Procedures, time and cost to resolve a commercial dispute
Closing a business
Recovery rate in bankruptcy
Source:
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Workshop on Trade Facilitation Introduction
Basics on Trade Facilitation

10. Workshop on Trade Facilitation Introduction
Source:
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Workshop on Trade Facilitation Introduction

11. Some important aspects of an international trade transaction
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Workshop on Trade Facilitation Introduction

12. Workshop on Trade Facilitation Introduction
The Trade Transaction S
GOODS B
INFORMATION
PAYMENT
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13. A domestic trade transaction
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14. Workshop on Trade Facilitation Introduction
The traded goods
Must comply with local norms and regulations (commerial, industrial, health, safety, etc.).
Must be properly documented (commercial invoice, transport contract, etc.).
Must be properly packaged for safe movements.
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Workshop on Trade Facilitation Introduction

15. Workshop on Trade Facilitation Introduction
Moving goods…
Services
Information
Legal set-up
Operations
Vehicles
Infrastructure
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Workshop on Trade Facilitation Introduction

16. Interests controled by the agencies
Beirut, Lebanon, 6-7 November 2006
21/09/2018
Interests controled by the agencies
Insect/pest control; Toxic wastes; Production processes; Manufacturing emissions; Endangered species
Environmental Protection
Health, Agriculture, Industry
Health and Safety
Food; Consumer goods; Animal disease; Plant disease; Generic safety
Immigration
Vehicle registration
Interior
Entry Controls
International Security
Protecting national interests:
New national concerns about the quality and use of imported goods in developed as well as developing economies.
Governments, industry, consumers, and special interest groups call for enforcement of restrictions on goods for export and import, as well as on their trade-related services..
These requirements involve many different federal agencies that have the potential and ability to disrupt supply chains and to increase transaction costs for exports and imports.
National interests are legitimate issues of sovereign governments.
But if not implemented efficiently, protection of these interests can become a significant burden on the global trading system.
Moreover, these burdens are even greater in countries where governments simply cannot cope with the increasing volume of trade and the need for safeguards without disruption in the flow of legitimate commerce.
Anti-terrorism; Gun controls; Arm trafficking; Weapons of mass destruction
Army
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Workshop on Trade Facilitation Introduction
Basics on Trade Facilitation

17. Finances, Commerce Transport
Duties; Taxes; Fees
Revenue Generation
Quotas; Dumping
Entry Controls
Finances, Commerce
Patent; Trademark; Copyright
Intellectual Property
Consumer Protection
Terms & conditions of services contracts
Drugs, narcotics; Pornography; Money laundering; Fraud
Prohibited Transactions
Revenue Generation
Highway tolls
Entry Controls
Driver’s license
Transport
Health and Safety
Vehicle safety
Traffic Management systems
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Workshop on Trade Facilitation Introduction

18. Key agencies concerned
Beirut, Lebanon, 6-7 November 2006
21/09/2018
Key agencies concerned
Finances
Customs
Commerce
Industry
Interior
Transport
Foreign Affairs
Chambers of Com.
Infrastructure
Operations
Services
Vehicles
Goods
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Workshop on Trade Facilitation Introduction
Basics on Trade Facilitation

19. An international trade transaction
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Workshop on Trade Facilitation Introduction

20. The movement of goods in International Trade
Beirut, Lebanon, 6-7 November 2006
21/09/2018
The movement of goods in International Trade
Country A
Country C
Destination
Transport
Origin
Border 1
Country B
Transit 3 2
International link
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Workshop on Trade Facilitation Introduction
Basics on Trade Facilitation

21. Providing International Services
Information
Legal set-up
Infrastructure
Operations
Vehicles
Mode A
Infrastructure
Operations
Vehicles
Interface
Infrastructure
Operations
Vehicles
Mode B
Infrastructure
Operations
Vehicles
Interface
Infrastructure
Operations
Vehicles
Mode C
Country Origin
Country Destination
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Workshop on Trade Facilitation Introduction

22. Crossing the border affects the movement of the goods….
Country A B
Country B
Movement
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23. The concept of “border”
Beirut, Lebanon, 6-7 November 2006
21/09/2018
The concept of “border”
A border is where the status of the goods, vehicles, or persons transporting/driving them is assessed.
Are goods, vehicles, or persons transporting/driving them in conformity with the national interests of the country in which they pretend to enter?
Do they comply with local laws and regulations?
Protecting national interests:
New national concerns about the quality and use of imported goods in developed as well as developing economies.
Governments, industry, consumers, and special interest groups call for enforcement of restrictions on goods for export and import, as well as on their trade-related services..
These requirements involve many different federal agencies that have the potential and ability to disrupt supply chains and to increase transaction costs for exports and imports.
National interests are legitimate issues of sovereign governments.
But if not implemented efficiently, protection of these interests can become a significant burden on the global trading system.
Moreover, these burdens are even greater in countries where governments simply cannot cope with the increasing volume of trade and the need for safeguards without disruption in the flow of legitimate commerce.
21/09/2018
Workshop on Trade Facilitation Introduction
Basics on Trade Facilitation

24. Role assigned to Customs
Beirut, Lebanon, 6-7 November 2006
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Role assigned to Customs
Revenue Collection of import taxes (duties & excise)
CUS
TOMS F
UNC T I ON
Protection of Economic Interests
(domestic production & services industry)
Protection of society <health, safety>
(drug trafficking, firearms, environment, counterfeit etc.)
Economic development <trade,
investment> (trade facilitation)
Techniques
Partnership with trade
Risk management
Authorized traders
Use of IT
Co-operation with other agencies
Co-operation with other Customs administrations
Security <terrorism>
(shifting focus to supply chain)
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Workshop on Trade Facilitation Introduction
Basics on Trade Facilitation

25. Crossing the may create…
BORDER
Country Destination
Discrepancies
GOODS
Products conformity,
standards & regulations
SERVICES
Commercial regulations
and practices
OPERATIONS
Traffic regulations
and operational practices
VEHICLES
Vehicle standards
and regulations
INFRASTRUCTURE
Design, construction,
maintenance and inter-operability
Country Origin
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Workshop on Trade Facilitation Introduction

26. Workshop on Trade Facilitation Introduction
However…
The concept of “border” has changed.
Borders are no longer necessarily geographic.
The status of the goods, vehicles, or persons transporting/driving them can be assessed at inland locations remote from the geographic border.
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Workshop on Trade Facilitation Introduction

27. Workshop on Trade Facilitation Introduction
Areas of work
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Workshop on Trade Facilitation Introduction

28. Beirut, Lebanon, 6-7 November 2006
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Key elements
TRADE
TRANSPORT
Trade Facilitation
CUSTOMS
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Workshop on Trade Facilitation Introduction
Basics on Trade Facilitation

29. Beirut, Lebanon, 6-7 November 2006
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CUSTOMS
Customs Reform and Modernization
Customs Facilitation
Simplification & harmonization
of documents & procedures
Faster
clearance
Update of Customs laws
Increased
Collection
Automated Systems
ASYCUDA
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Workshop on Trade Facilitation Introduction
Basics on Trade Facilitation

30. Beirut, Lebanon, 6-7 November 2006
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TRADE
Best practices
Trade Facilitation
Faster return on
investment
Simplification & harmonization
of procedures & documents
Increased Competitiveness
Institutional framework
Facilitation Platforms
NTTFC
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Workshop on Trade Facilitation Introduction
Basics on Trade Facilitation

31. Beirut, Lebanon, 6-7 November 2006
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TRANSPORT
Best practices
Transport Facilitation
Avantages of
Integrated Transport
Better use of means
Increased cargo flows
Legal set-up for
Door-to-door transport
Intermodal Solutions
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Workshop on Trade Facilitation Introduction
Basics on Trade Facilitation

32. IMPORTANT: Promote cooperation at national and corridor levels
Beirut, Lebanon, 6-7 November 2006
21/09/2018
IMPORTANT: Promote cooperation at national and corridor levels
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Workshop on Trade Facilitation Introduction
Basics on Trade Facilitation

33. Promotion of Trade Facilitation
Beirut, Lebanon, 6-7 November 2006
21/09/2018
Promotion of Trade Facilitation
Ministry of Transport
Ministry of Trade
Ministry of Finances
Customs reform
& modernization
Trade facilitation
measures
Door-to-door
Logistics
Private Sector
Key stakeholders
Government (Min. Transport, Trade, Finances);
Trading communities (importers/exporters);
Services providers (transport operators, FF and 3PLs, ancilliary services, banking & insurance)
Reduce transaction costs
Monitor external trade flows
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Workshop on Trade Facilitation Introduction
Basics on Trade Facilitation

34. Towards a necessary cooperation at national level
Beirut, Lebanon, 6-7 November 2006
21/09/2018
Towards a necessary cooperation at national level
Between the institutions concerned by foreign trade: Finances, Commerce, Transport;
With the private sector in the trading community (importers and exporters);
With services providers: transport operators, banks, insurance companies…
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Workshop on Trade Facilitation Introduction
Basics on Trade Facilitation

35. Workshop on Trade Facilitation Introduction
The Three Key Players
Governmental
Authorities
USERS
of trade & transport
services
PROVIDERS
N.T.T.F.C.
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Workshop on Trade Facilitation Introduction

36. National Trade and Transport Facilitation Committee
A national forum to propose, discuss, consult and search consensus
between commercial parties
and governmental authorities
on facilitation measures to improve international trade & transport.
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Workshop on Trade Facilitation Introduction

37. Cooperation mechanisms
BORDER
Country A
Country B
Bilateral consultations on trade & transport issues
Government
Authorities
Min. Trade, Finances (Customs),
Transport, Interior,
Foreign Affairs, etc.
Government
Authorities
Min. Trade, Finances (Customs),
Transport, Interior,
Foreign Affairs, etc.
NTTFC, Clusters, Public-Private Partnerships
NTTFC, Clusters, Public-Private Partnerships
Regional coordination
Private sector
Chambers of Commerce,
professional associations,
corridor-based interests
(around projects such as:
ICD, Free Zones, etc.)
Private sector
Chambers of Commerce,
professional associations,
corridor-based interests
(around projects such as:
ICD, Free Zones, etc.)
Professional networks
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Workshop on Trade Facilitation Introduction

38. Workshop on Trade Facilitation Introduction
CONCLUSIONS
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Workshop on Trade Facilitation Introduction

39. Trade Facilitation is …
Beirut, Lebanon, 6-7 November 2006
21/09/2018
Trade Facilitation is …
Comprehensive (it embraces a wide spectrum of important issues);
Mainly a domestic issue;
An opportunity to “revamp” national institutions and mechanisms supporting foreign trade;
An opportunity for reforms within certain institutions of the public sector;
An opportunity to foster national private sector.
An opportunity to introduce modern methods and technologies (e.g. ICTs) at national level;
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Workshop on Trade Facilitation Introduction
Basics on Trade Facilitation

40. Beirut, Lebanon, 6-7 November 2006
21/09/2018
The WTO context
Trade Facilitation embraces a wide spectrum of important issues.
Within the context of the mandate on Trade Facilitation, WTO Members have limited the scope of their work to the review, clarification and improvement of three articles of GATT 1994:
Article V: Freedom of Transit;
Article VIII: Fees and formalities connected with Importation&Exportation; and
Article X: Publication and administration of trade regulations
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Workshop on Trade Facilitation Introduction
Basics on Trade Facilitation

41. Workshop on Trade Facilitation Introduction
Independently of the result of the negotiations within the context of the WTO, Trade Facilitation will carry on the innovation process initiated well before the Ministerial Conferences of Singapore, Doha and following …
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Workshop on Trade Facilitation Introduction

42. More details: www.gfptt.org
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Workshop on Trade Facilitation Introduction

43. THANK YOU! Peter Faust (peter.faust@unctad.org)
Maxence Orthlieb
José Rubiato
Jan Hoffmann
Regina Asariotis
Trade Logistics Branch
Division for Services Infrastructure
for Development and Trade Efficiency