Room XXVI Palais des Nations Geneva, Switzerland. 7 9 December Sudan Country paper on Trade Facilitation

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1 UNCTAD Multi-year Expert Meeting on Transport and Trade Facilitation Room XXVI Palais des Nations Geneva, Switzerland 7 9 December 2011 Sudan Country paper on Trade Facilitation by Ms. Amani Musaad Head of WTO Unit Ministry of foreign Trade Sudan This expert paper is reproduced by the UNCTAD secretariat in the form and language in which it has been received. The views expressed are those of the author and do not necessarily reflect the view of the United Nations.

2 In the Name of Allah the Merciful and Compassionate Republic of Sudan Ministry of Foreign Trade Sudan Country paper on Trade Facilitation United Nations Conference on Trade and Development (UNCTAD) Multi-Year Expert Meeting on Transport and Trade Facilitation 7-9 Dec Geneva Switzerland Introduction Facilitation of foreign trade has been the main concern of the Sudan over the years and became the most frequent and dominant recommendations of all the workshops and seminars on addressing the economic and foreign trade issues. The first practical attempt to facilitate trade was the forming of a committee 2007, during the problem of the accumulation of goods in the Port Sudan port. The committee issued a report and recommendations on that regard as well as on practical procedures that led to some improvement in the custom clearance procedures Therefore, Sudan considered the importance of removing obstacles and barriers preventing access to markets as well as clarifying, analysing and simplifying trade procedures in accordance with the regional and international agreements.

3 Significant efforts were made, however these efforts were sporadic until the World Trade Organization organized a workshop for assessing and identifying the priorities of facilitating trade; this workshop took place during the period 27 October-1 November 2009 with the participation of 26 representatives for bodies relating to trade facilitation. To carry on with the flow of the Regional and International trade and to activate the contribution of the traditional export in the overall economy, the high committee for trade facilitation and electronic business has been formed under the supervision of the minister of state for Foreign Trade and in accordance with the decision No: 39 of the Council of Ministers for the year 2010 Also the Minister of Foreign Trade has formed a working group (WG) for trade facilitation and electronic business, according to the model of the UNCTAD (United Nation Conference on Trade and Development) for the formation of national committee to facilitate trade. Benefits of the working group: The WG helped in the formation of Sudan s views regarding trade facilitation and the identification of its priorities and needs in the field of trade facilitation. The establishment of the WG led to further cooperation and coordination among institutions that are concerned with the trade facilitation, as the members of the team became more familiar with the issue of the trade facilitation and more Knowledge about development in the WTO draft consolidated negotiating text. Sudanese negotiators became more active participation in the negotiations of the trade facilitation, which make them extensively experienced in this field.

4 The WG plan included the following: Listing and gathering all principles related to trade facilitation from different institutions which are concerned with the foreign trade procedures in addition to the recommendations drawn from studies, seminars and workshops in this area. Exchanging in depth discussion the draft consolidated negotiating text and making recommendations for its realization. Translation of the draft consolidated negotiating text to Arabic language to be easy for different agencies to deal with it. WG Plan (follows): Conducting technical studies to determine the electronic management systems (single-window), identifying the electronic document and reviewing the documentary course. Preparing foreign trade procedures directory. Carrying out workshop on the single- window project, and facilitate trade in Sudan. Submitting periodic reports and recommendations of WG to the Foreign Trade Minister to be submitted to the Technical Committee.

5 2. Topics discussed: The first meeting was an introductory on seminar on trade facilitation. Provisions of WTO trade facilitation draft consolidated negotiating text Carrying out technical studies on single window. collected all the actions matrix from different institutions and confined one matrix. Following up specialized and sub-committees work, updating members of the WG on the level of the WTO negotiations. The WG and the specialized sub committees should hold regular meetings to discuss the agenda topics addition to the draft consolidated negotiating text provisions. 3. Sub-Committees Many specialized sub-committees emerged from the working group as an outcome of discussing topics on trade facilitation, These committees are: o o Trade facilitation action matrix committee. Technical studies of electronic systems (single window) Committee. o Directory of Foreign Trade Procedures Committee. o Transit procedures Committee. o working plan and budget Committee.

6 4.Achievements relating to Trade Facilitation: 1. Workshop on assessing the needs and priorities of facilitating trade. The workshop was held in November 2009 and its report was presented to the WTO in Geneva. 2. Workshop on the best methodologies for simplifying customs procedures- August Implementation of payment system where payment is made via magnetic cards. 4. Carrying out a study on the clearance time. 5. Preparing a paper to clarify the idea of a single window project. 6. Signing of a memorandum with Sweden to provide technical support for the single window project. 7. Implementing ASYCUDA world system at Khartoum airport on October Implementing X-ray checking system at the Port Sudan. 4. Achievements relating to Trade Facilitation (follows). 9. Application of risks management system, with support from the World Bank, which is now at the stage of the (Pilot). 10. Construction of a building with superior specifications in Port Sudan city for housing the Single Window Project 11. Providing laws and legislations on trade resolution and modifying the Customs Act to conform to international standard and keeping up with recent changes. 12. Establishment of dry ports in Al Gedaref, Kosti, Madani and Al obaied. 13. Introducing Through Bill of Loading (TBL), where the ships are unloaded upon their arrival at their destination. 14. The agreement with the Swiss customs to provide technical support in the following areas: Risk management. Joint border customs station. Border guards system. Development of customs Training Institute.

7 Achievements in the transport sector: The Ministry of transport began restructuring the transport sector in a way that supports foreign trade and keeps up with rapid international developments. These efforts were based on realizing recommendations of studies, specialized committees and workshops which are concerned with trade facilitation which include the following: 1. Completing the rehabilitation of railway road between Khartoum Atbara. 2. Signing a contract for construction of railway - Atbara- Port Sudan in order to complete the work on the road of Khartoum-Port Sudan. 3. Signing a contract for the establishment of a port specifically for exportation of livestock and fisheries. 4. Signing a contract for the construction and rehabilitation of the railway road between Abugabra and Nyala with a length of 220 km. 5. Resolving the congestion problem at the sea ports through the rehabilitation and construction of berths, bollards and the surface of ports, and providing the means for loading and discharging. 6. Considering development rapid of the maritime transport industry technology. 7. Inspecting ships to ensure the implementation of international standards for maritime safety and preventing pollution. 8. The demarcation of maritime borders, introduction of laws governing the processes of searches and rescues in the territorial waters, the investigation of maritime accidents and the protection of sea ports. 9. A private maritime shipping company was established to export livestock. Road map 1. Transforming the Trade facilitation action matrix into a working plan and making an effort on its fulfilment and dissemination. 2. The issuance of the first version of the foreign trade Directory. 3. Creating trade facilitation Strategic plan for the period of and the working plan for the year Holding a workshop for studying the single-window project in co-ordination with the (ESCWA). 5. Setting up comprehensive Frame work for studying the transit procedures. 6. Further discussion of articles in the draft agreement regarding the trade facilitation and making recommendations. 7. Translation of the WTO draft consolidated negotiating text to the Arabic language. 8. Recommendations should be Incorporated in the annual report of the WG recommendations that lead to implementing decisions.

8 policies on the transport sector: The Sudanese Ministry of Transport pursue proper planning to improve the various means of transportation. These include the following: 1. Associate the transport plan with the economic development plan. 2. Utilizing means of transport on complementary bases 3. encourage the national private investment as well as the foreign investment in the transport sector. 4. Developing and improving means of transportation to bring the different part of Sudan together as well as connecting Sudan with the outside world. 5. Raising ports capacity and improving the maritime transport to contribute to local and regional trade. 6. Adopting incentive policies in the fields of air and river fleet. 7. to encourage investment on the BOT system. 8. Providing efficient, effective and continuous transport services in accordance to international and regional standards in order to compete with the regional and international levels. Transport sector Obstacles : 1. Negative impacts of economic decisions (The negative list). 2. Political instability in the Arab region and their impact on trade. 3. Increased activity of maritime piracy in the Horn of Africa and its impact on navigation. 4. The implications of U.S. sanctions and their impact on the spare parts for railways and aviation. 5. Limited financial resources and inadequate external financing. 6. Aging infrastructure and fleets. 7. Lack of information and information technologies.

9 Obstacles and challenges of trade facilitation Finance difficulties. Access to technical assistance, especially in the field of Information Technology. Dissemination of good practices in the field of trade facilitation and exchange of experiences. The need to coordinate economic policies in order to facilitate the trade. Thank you Amani Musaad Ministry of Foreign Trade