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"    21   - 9 f /7 p  :  ~ w Q_ 9   2(9 1' * > ) * A   ` '  5*"g*(`M )*+,-.HGHG:H;G^CEFGHIOP QRUVO2$4qÛnr$3x!tV$di$2$5WO@Kt,I [c $||     A@ A1 8c8c     ?1 d0u0@Ty2 NP'p<'pA)BCD|E|| @12 3 L g4dddd 0l$pH p` <4BdBd@w 0t,B4ʚ;ʚ;<4dddd@ x 0@<4!d!d@ x 0@9___PPT10 6___PPT9b/ 04&? -O =[5@>Paperless Trade: Implementation Experience and the way ahead 4? + >   Experience of the World Bank Hamid Alavi Middle East and North Africa Region, World Bank UN/CEFACT Executive Forum Geneva , 20-21st June 2005(q2=8#A5(q2 0(  D1  5 U Overview .1.   How does the World Bank view Trade Facilitation and what it is doing in this filed? Why are the simplification and automation of trade transactions important? Efficiency and competitiveness Security concerns Guiding principles for the application of ICT Simplify processes Simplify documentation Re-engineer processes (codes and standards) Automate Customs is only one of many agencies involved in trade transactions Implementation approach Lessons learned 1.( 1.b  ( !Overview of World Bank Activities!   Expanding Country Policy Dialogue Supporting the Doha Round Established Trade Department including Trade Logistics Group Bringing together Trade Policy, Infrastructure and Customs/Border Management teams Stepping up trade  related operations Global Facilitation Partnership for Trade & Transport Trade and Transport Facilitation Audits Trade Facilitation Seminars Better coordination with donors & international organizations Research, analysis and advocacy Customs Modernization Handbook.|(TF(E Overview .1.   How does the World Bank view Trade Facilitation and what it is doing in this filed? Why are the simplification and automation of trade transactions important? Efficiency and competitiveness Security concerns Guiding principles for the application of ICT Simplify processes Simplify documentation Re-engineer processes (codes and standards) Automate Customs is only one of many agencies involved in trade transactions Implementation approach Lessons learned 1.( TK1.b  ( -$Efficiency : Time is a Trade Barrier%%nTrade occurs in physical space and moving goods requires time. Trade logistics costs are as important as tariffs Each day saved is equivalent to 0.5% tariff (Hummels) 7% of value of world trade is cost of administration of trade logistics (UNCTAD) Time becomes even more important in multi-stage production (global supply chain) % of vertical specialization in trade (use of imported inputs for exports) has grown 30% in the past 20 yrs and accts for half of overall trade growth. Willingness to pay to save time: Share of airfreight in US grew from 7% in 65 to 30% in 98 Airfreight 7 times as expensive as ocean shipping.qZZQZZ!ZmZqQ!m  .CEfficiency gains from streamlining and simplifying trade processesImagine if the contents of a ship can be processed in half a day instead of a day & Infrastructure capacity effectively doubled Twice the cargo Twice the # of ships Twice the number of containers Increased harbor duties, excise and revenue Considerably lower cost to traders & even more benefits: These efficiencies offer wider attraction to trading partners Efficiency in vessel turnaround attracts new trading, market center, distribution business.`TZ ZZZT  /BEfficiency gains from streamlining and simplifying trade processesA wide-body jet can carry fresh produce from supplier in one hemisphere to the buyer in the other hemisphere on the same or next day. BUT it can take 10 days to : Process orders Obtain customs and TC approvals Book and schedule transport and distribution Obtain payment approvals Complete the transaction This means removing 10 days from the selling season, revenue that cannot be replaced<UU0 What Gains? /Port efficiency improvements (from 75th to 25th percentile) could reduce transport costs for a country as much as shortening it distance from its trading partners by 9,000 km (IDB 2000) $100 million could be saved each year through the application of ICT (UNCTAD) Singapore gained 1% of GDP Tunisia case@0%  F Overview .1.   How does the World Bank view Trade Facilitation and what it is doing in this filed? Why are the simplification and automation of trade transactions important? Efficiency and competitiveness Security concerns Guiding principles for the application of ICT Simplify processes Simplify documentation Re-engineer processes (codes and standards) Automate Customs is only one of many agencies involved in trade transactions Implementation approach Lessons learned 1.( 1.f  ( 4&Trade transaction is a complex process''HMany documents Many players A typical trade transaction can take as many as 150 different documents to complete Raw material and component supplier Manufacturer/assembler Customs agents/brokers Customs authorities Government authorities- export promotion/approval/stat. Local transport and warehousing companies Container handlers Port and harbor authorities Shippers (sea, air, road, rail, canal, & ) Bank and insurance companies Each have own set of paper forms and interactions with other organizations (incl. counterparts in importing countries.^ZTZ>ZwZT>w   0 05D Different ways to use ICT for TF  Systems built around different agencies Ports Customs long term difficulties in technology areas such as flexibility, interoperability, international standards, volume, ongoing support and support costs. Single windows ((`  <7      0CLPaperless Trade reduces Time and Increases Efficiency and Security- ExamplesMM Mauritius Trade Net has reduced average clearance times of goods from 4 hours to 15 minutes Tunisie Trade Net (TTN) has reduced processing times of trade documents from max of 18 to 7 (3.5 days in cases not requiring technical controls). Time savings in Singapore (STN) translate into 1% of GDP per year. Advanced information sharing in all cases has contributed to security requirements & *\ 4 0or=G Overview .1.   How does the World Bank view Trade Facilitation and what it is doing in this filed? Why are the simplification and automation of trade transactions important? Efficiency and competitiveness Security concerns Guiding principles for the application of ICT Simplify processes Simplify documentation Re-engineer processes (codes and standards) Automate Customs is only one of many agencies involved in trade transactions Implementation approach Lessons learned 1.( 1.b   Design Approach ?Implementation Approach Phased Approach Complexity Quick wins to secure confidence International Standards (UN EDIFACT, etc.) International information exchange requires standards Pilot users Surveys / evaluation / fine  tune Implementing body P+P+P6P P"PP++6 "  @Implementation Issues TTrade Processes - Chain effect As good as weakest link in the chain Benefits only visible when everything works Complex Many details that must fit together Resistance to change Organizational Shift from paper to electronic processes Prepare to manage project risks Multiple activities / issues to address Inter-institutional dependencies ZQZZ$ZZ9Z ZIZZZQ$9  I    $ H Overview .1.   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A)BCD|E||@   p"    fv9ڎ? 1?X' K       C x|l҃Ƕ҃?1? vImplementation lessons from the application of information technology to facilitate trade and smooth out supply chains2w(Z` Z  @ltz   C xڎ? 1?hAD<4___PPT9 Presentation Purpose"(" 2   @  @@``H   0n4s ? 333wwwy___PPT10Y+D=' = @B +  0 hH(  h~ h s *0  7    h  F0     ? @  1 8c8c     ? A)BCD|E||H@   p" h  f]ڎ? 1?X' K    o h C x҃Ƕ҃?1?xX STrade facilitation is increasingly important in Bank policy support and operations T(TS @ltv h C xڎ? 1?hAD<4___PPT9 Quick Background"(" 2   @  @@``H h 0n4s ? 333wwwy___PPT10Y+D=' = @B +v   0 -(  ~  s *   7      Fla     ? @  1 8c8c     ? 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