1. Harmonizing Border Port Development as Gateways to Global Markets for Mongolia & the People’s Republic of China Dissemination Workshop, Puma Hotel December 13, 2012 Ulaanbaatar, Mongolia G-0204 MON Southeast Gobi Urban & Border Town Development Project Cross Border Institution Development Program for MON-PRC Regional Cooperation Robert L. Wallack, Trade Logistics & Border Development, United States of America Odnoo L., National Consultant, Mongolia AECOM, U.S.A. Implementation of Cross Border Management Organizations:  Zamyn-Uud, Dornogobi-Erlian, Inner Mongolia Autonomous Region  Gashin Sukhait, Omnigobi-Ganqimaodao, Inner Mongolia Aut. Region  Shivee Huren, Omnigobi-Ceke, Inner Mongolia Autonomous Region

2. ZAMYN-UUD

3. Actionable Statements  “Zamyn-Uud is for imported machines and spare parts…delays are frequent…improved processes would greatly assist as would access to bonded yards & covered storage & would enable imports destined for Gobi region to be stored in ZU.”---Multinational Importer  “At the beginning it was difficult with the border agencies…but we had the right people and regular meetings and the agencies and businesses saw that they benefitted…”---International Best Practice, N. America  “…ruled by the daughters of Genghis Khan, the Mongols created a new world system based on a faster flow of goods and information than had been previously practical.”---Jack Weatherford

4. Results of Cooperation New Roads in Zamyn UudNorth American Bison

5. Contents  I. Background to Cross Border Harmonization  II. International Best Practices  III. Concepts & Cases  IV. Cross Border Trade for Global Markets  V. Border Management: Internal & Bi-National  VI. Border Counseling Meeting of Zamyn Uud-Erlian

6. I. Background to Harmonization  Revised Kyoto Convention: MON & PRC for Simplification & Harmonization of Customs  Implementation: World Trade Organization & World Customs Organization  RKC/WTO/WCOADB CAREC  Border Counseling Meeting Continuous Improvements for Border Management: Cross Border Trade & Security

7. II. International Best Practices City-Twinning Steering Group: Administrations from both towns-Decision Making Central Governmentshas limited function Small and Medium-Sized Businesses active Goal of Twinning:Improve welfare of citizens of both towns and facilitate border crossing Achievments: Russia-Finish KeyIndustrial Park (KIEP)-1999 Improvements in:waste-water treatment systems, energy, tourism infrastructure, improved municipal government The City Twins Association (CTA)-2006 & City Twins Cooperation Network project-2004-06—Finland-Russia longest in EU, 1324 km Imatra, Finland—Svetogorsk, Russia: Rail and Road

8. Ajo Border Residence Lead internal border agency: U.S. Government Services Administration (GSA) cooperates and coordinates with U.S. Customs and Border Protection (CBP) for constructing residences for officers at the U.S.-Mexico Port of Entry. Local offices submit requests with data to state for national approvals Ajo, Arizona Housing Development Project for CBP officers is 40 miles north of the U.S.-Mexico border and Lukeville POE.

9. El Uno and Grasslands Chihuahua, Mexico—60 miles Mexico-U.S.-Nature Conservancy Ecoreserve near drug war zone Reserva Ecologica El Uno 3 R’s of grassland restoration: resting it, replanting, researching CB cooperation: Bison in Mexico Not seen grazing since 1832 Educational center: Ranchers learn new, sustainable grazing methods

10. III. Concepts & Cases Supply Chain Management Containerization-Intermodalism Supply Chain Strategy & Management Product Flows, Information Flows, Financial Flows: Customers Inventory Management: High Turnover tied to Sales Cross Border: On Time Deliveries=Revenues(business/GOM) Partnership between Border Agencies & Private Enterprise: WCO-mutual recognition agreements: US, Jordan, Australia, Sweden Containerization & Intermodalism Overloaded trucks  containers: safe, secure, customer service Consolidation  transport economics lower unit costs Capacity utilization of Full Container: “weigh out” “cube out” -combine shipments into one container of heavy & light cargo Benefits: Easier transloading, storage, congestion, environment

11. INCOTERMS & Border Management College INCOTERMS (International Commercial Terms, International Chamber Of Commerce) Three letter standard terms of buyer & seller in international contracts Shipment terms as important as product price Insurance, duty payments, broker fees, risks Border Management Staff College, Dushanbe, Tajikistan Sr. Border Officials OSCE international standards in border management Workshops on inter-agency cooperation, best practices, exchange of information CAREC Federation of Carrier & Forwarder Associations (CFCFA) Supply Chain Curricula Centers of Excellence

13. Slovakia Land Locked in Europe CB transport of natural resources Organization for Security & Cooperation in Europe (OSCE): Slovakia & Mongolia

14. IV. CB Trade for Global Markets Source: National Statistics Office Mongolia, Bulletin, External Trade, 2009 & 2012, USD CAGR: Compound Annual Growth Rate YearTotal TurnoverExportsImportsBalance 20001,150.3535.8614.5-78.7 20011,233.9596.2637.7-41.5 20021,214.4524.0690.4-166.4 20031,406.3615.4790.9-175.5 20041,888.4869.11,019.3-150.2 20052,241.21,063.91,177.3-113.4 20062,977.01,542.01,435.0-107.0 20074,009.31,947.52,061.8-114.3 20085,779.02,534.53,244.5-710.0 20094,033.91,902.62,131.3-228.7 20106,108.62,908.53,200.1-291.6 20119,099.73,747.35,352.4-1,605.0 20129,404.03,664.75,739.3-2,074.6 CAGR (2000-12)19.1%17.3%20.3%(31.2%) Trade Growth Calls for Border Counseling Meeting to be a Forum to Assist in Resolving Issues: Infrastructure, Trade Facilitation, Policy & Environmental

15. V. Border Management: Internal

16. PR China: Internal Border Management Chairman of All PRC General Customs Administration & Chairman of PRC Border Administration Vice Chairman of China Trade Bureau & Chairman of Border Administration Office Inner Mongolia Border Administration Office Erlian city People’s Government Vice Chair Border- Road Division of Road Transport: Head 1-Inspection; 1- Coordination Officer;4-Services Officer Chairman of Erlian Border Administration Office Vice Chair for Railway Division of Railway: Head 1- Inspection; 1- Coordination Officer; 4-Services Officer Border Administration Offices for Neighboring: Russia, Kazakhstan, Mongolia Vice Chair Internal Affairs Division of Internal Affairs: 1-Head;4- Services Officers;3- Financial;10-Border Fee Collectors Total Employees: 34. Expanded organization for Erlian airport. Border Administration main function is monitor operations of inspection agencies and other border agencies and to coordinate and harmonize their activities

17. Border Management: Bi-National

18. Gashin Sukhait-Ganqimaodao & Shivee Huren- Ceke How to Organize? Permanent Representative? -Unique cross border trade characteristics  Examine trade data  Identify government & business officials  Review of GOM Policy on Border Management/Development & Master Plans  Extended Border Counseling Meeting?

19. VI. Border Counseling Meeting  Since 2008: civil/security  trade & transport  Appointment of Cross Border Coordinator(s)  Joint Website: www.elsw.gov.cn  Suggestions: E-mail lists, Annual Schedule, Agenda before meetings, remote meetings  Agenda: Policy/Institutional; Trade & Urban Infrastructure (SEW); Trade Facilitation & Operations; Environment; Performance

20. Border Counseling Meeting  Record of Achievements to Prove Value of BCM to all stakeholders (border agencies, businesses, investors, donor organizations Continuously Improving & Harmonizing CB  Asian Development Bank & CAREC  Trade & Transport Facilitation Program  Federation of Carrier & Forwarder Assoc.  Sources to Discuss BCM Budget Issues www.carecinstitute.orgwww.carecinstitute.org www.wcog.org/Borderswww.wcog.org/Borders

21. Border Counseling Meeting CAREC 4a & 4bIMTC-North America

22. Questions to Consider  Alignment of Internal BM: PRC & MON  Clarify Gashin Sukhait—Shivee Huren  Appoint BCM Coordinator  Design, Content, Budget Website: www.elsw.gov.cn  Decide on CB Performance Indicators

23. Single Electronic Window Internal & Bilateral Agreements Source: Internet- Wikipedia

24. Thank YouQuestions/Answers Robert L. Wallack, Cross Border Development Expert, U.S.A. robert.wallack@rlw-international.comrobert.wallack@rlw-international.com for ADB and AECOM, U.S.A.