Trade Facilitation Agreement
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1 Trade Facilitation Agreement implementation in the GCC: Charles Julien, Counsel, White & Case LLP
2 Agenda Challenges and expectations vis à vis implementation of the Trade Facilitation Agreement in the GCC The TFA in a nutshell Entry into force of the TFA are all GCC States covered? Key commitments by GCC States Expected benefits for economic entities operating in the GCC
3 The TFA in a Nutshell Global State-of-play before the TFA Burdensome customs procedures o Numerous 9 billion clearance documents yearly o Lengthy days o Costly 1-day clearance equivalent to 1% tariff Problematic customs procedures o Excessive documentation requirements o Inefficient border-crossing procedures o Non-automated processes o Transport delays transit impediment o Lack of transparency predictability o Lack of coordination among authorities Source: World Bank, Doing Business Project, 2015
4 The TFA in a Nutshell Expedited movement, release and clearance of goods Key features o Simplification o Harmonization o Automation Nature of obligations Variable according to provisions o Binding o Best endeavor o Combination of both
5 The TFA in a Nutshell Structure of Section I of the TFA Article 1 - Publication and availability of information o Publication, information available on the internet o Enquiry points o Notifications Article 2 Comment and consultations o Opportunity to comment o Information before entry into force Article 3 Advance rulings o Mandatory tariff classification origin determination
6 The TFA in a Nutshell Structure of Section I of the TFA Article 4 Procedures for appeal or review o Appeal of decisions of customs authorities o Judicial Review Article 5 Measures to enhance impartiality, non-discrimination and transparency o Notifications for enhanced control or inspections o Detention o Test procedures Article 6 Disciplines on fees and charges o General disciplines o Specific disciplines o Penalty disciplines
7 The TFA in a Nutshell Structure of Section I of the TFA Article 7 Release and clearance of goods o Pre-arrival processing o Electronic payment o Risk management o Average release times Article 8 Border agency cooperation o Cooperation of national border authorities/agencies o Cooperation of authorities of countries with common land borders Article 9 Movement under customs control o Simplified procedure for inland movement
8 The TFA in a Nutshell Structure of Section I of the TFA Article 10 Import, export and transit facilities o Single window o Use of international standards o Pre-shipment inspection o Uniform documentation requirements Article 11 Freedom of transit o Charges, regulations and formalities o Procedures and controls o Guarantees Article 12 Customs cooperation o Exchange between customs authorities of information and/or documents concerning specific import or export declarations
9 Entry Into Force of the TFA 22 February 2017 Entry into force of the TFA ratification by 2/3 rds of the WTO membership Source: WTO
10 Entry into Force of the TFA Category A Immediate implementation (1-year delay for LDCs) Category B Implementation after a transitional period Category C o Implementation after a transitional period o Provided technical assistance and capacitybuilding has been offered Source: WTO
11 Entry into Force of the TFA Ratification by GCC States 18/04/2016 UAE 28/07/2016 Saudi Arabia 23/09/2016 Bahrain 22/02/2017 Oman No ratification yet o Kuwait o Qatar
12 Commitments by GCC States Bahrain Kuwait Oman Qatar Saudi Arabia UAE 1.1 Publication A A A A A A 1.2 Information available through Internet A A N A A A 1.3 Enquiry points A A A A A A 1.4 Notification A A A A A A 2.1 Comments and information before entry into force A A N A N A 2.2 Consultations N A A A A A 3. Advance rulings N Ap N A A Ap 4. Procedures for appeal or review A A A A A A 5.1 Notifications for enhanced controls or inspections A A A A A A 5.2 Detention A A A A A A 5.3 Test procedures N A A A A A 6.1 General disciplines on fees and charges N A A A A A 6.2 Specific disciplines on fees and charges A N A A A A 6.3 Penalty disciplines A A A A A A 7.1 Pre-arrival processing N A N A A N 7.2 Electronic payment N A A A A A 7.3 Separation of release A A A A A A Source: WTO
13 Commitments by GCC States Bahrain Kuwait Oman Qatar Saudi Arabia UAE 7.4 Risk management N N A A A A 7.5 Post-clearance audit N N N A A A 7.6 Average release times A A N A A N 7.7 Authorized operators N N N N A N 7.8 Expedited shipments A A A A A A 7.9 Perishable goods A N A A A A 8. Border agency cooperation A A N A A A 9. Movement of goods A A A A A A 10.1 Formalities A A A A A A 10.2 Acceptance of copies N A A A A A 10.3 Use of international standards A A A A A A 10.4 Single window N N A A N N 10.5 Preshipment inspection A A A A A A 10.6 Use of customs brokers N A A A A A 10.7 Common border procedures N A A A A A 10.8 Rejected goods A A A A A A 10.9 Temporary admission of goods A A A A A A 11. Transit N Ap Ap A A A 12. Customs cooperation Ap N A A A A Source: WTO
14 Commitments by GCC States Bahrain ( Kuwait ( Oman ( and Source: WTO
15 Commitments by GCC States Qatar ( Saudi Arabia ( UAE ( Source: WTO
16 Benefits for Economic Operators Globally Cost reduction potential: 14.3% of trade costs Boost to global trade: $1 trillion/year Source: OECD 2/3 of total gains for developing countries
17 Benefits for Economic Operators Globally Trade facilitation performance Source: OECD
18 Benefits for Economic Operators In the GCC Trade facilitation indicators Source: OECD
19 Benefits for Economic Operators In the GCC Bahrain Source: OECD
20 Benefits for Economic Operators In the GCC Kuwait Source: OECD
21 Benefits for Economic Operators In the GCC Oman Source: OECD
22 Benefits for Economic Operators In the GCC Qatar Source: OECD
23 Benefits for Economic Operators In the GCC Saudi Arabia Source: OECD
24 Benefits for Economic Operators In the GCC UAE Source: OECD
25 Thank you
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