Engaging the Trading Community Forum on WTO, Trade Facilitation and the Private Sector in Developing Countries

Transcription

1 Engaging the Trading Community Forum on WTO, Trade Facilitation and the Private Sector in Developing Countries Geneva, February 2010 How can the Trading Community Support the Implementation Process, Capacity Development and Technical Assistance? by Creck Buyonge Adjunct Associate Professor Faculty of Law University of Canberra Regional Manager Centre for Customs & Excise Studies (CCES) Nairobi, Kenya 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.

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3 Engaging the Trading Community: Forum on WTO, Trade Facilitation and the Private Sector in Developing Countries Presentation by Creck Buyonge, CCES Africa, Nairobi, Kenya Centre Wm. Rappard, February 2010, Geneva Session III: How can the Trading Community Support the Implementation Process, Capacity Development and Technical Assistance?

4 Summary Who is the Trading Community? Nature of Interaction between the Trading Community & Government Agencies (on Trade Facilitation Issues) in Developing Countries Specific Issues of Benefit to the Trading Community How the Trading Community can Help Government in Implementation Process, TA & CB 2

5 By defining what we mean by Trading Community It becomes easier to map what the roles of various actors in the trade chain are, and what they can contribute in setting the agenda for negotiations on trade facilitation, in the implementation process, technical assistance and capacity building

6 Who is the Trading Community? Customs often (narrowly) refer to Freight Forwarders & Customs Brokers as Trading Community BUT it could refer to different private sector interests at various stages of the International Trade Chain e.g. Importers, Exporters, Insurance Companies, Chambers of Commerce, Export/Import Agents, Banks, transporters, carriers, goods consolidators, shipping lines, inspection companies, warehouse keepers 4

7 The Trading Community Importers/Exporters Accurate Information: on compliance requirements, clearance period, charges.. Advance Rulings e.g. Classification & Origin: to determine raw material sources, charges, budget Appeal Procedures: enhance confidence in justice system & compliance to the law Assess Risk: self/clients Forwarders/Brokers Accurate Information: on compliance requirements, to advise their clients Advance Rulings: to avoid or reduce offences, facilitate compliance, offer proper advice to clients Appeal Procedures: enhance confidence in justice system & compliance to the law Assess Risk: self/clients 5

8 The Trading Community Insurance/ Banks Accurate Information: on computation of duty/tax, legal obligations Release & Clearance of Goods: retirement of security bonds, link with port authorities and Customs for payments Appeals: mistakes/offences Risk Management: internal & clients Shipping Companies Accurate Information: on compliance requirements & legal obligations Release & Clearance of Goods: link with port authorities & Customs (manual or electronic manifest Appeals: mistakes/offences Risk Management: internal & clients 6

9 The Trading Community Transporters Availability of Information: for trip planning, budgeting Appeal Procedures: In cases of violation of laws & regulations, assure justice Release & Clearance of Goods: reduction of idle time & maximum use of space, trucks, security Assess Risk: Self/Others Inspection Companies Availability of Information: planning inspections, resource use Appeal Procedures: for transparency, to enhance confidence in justice Release & Clearance of Goods: delays for goods inspected in-country after importation Assess Risk: Self/Others 7

10 Private Sector in Developing Countries Low Trust, & danger of State Capture by Private Interests ICT: low level of penetration in Small & Medium Enterprises (fast-growing, create jobs) Lack of/low Professionalism: attention to profit at all costs (blame government for inefficiency) Varied levels of abilities and expertise (some local companies use global standards) Too much government focus on multinationals and organized private sector (neglect of SME s) 8

11 Private Sector Positive Developments Greater professionalism and better organization in the clearing & forwarding industry through the efforts of FIATA, governments and donors through Structured Training and Accreditation Frameworks, regional associations (e.g. in East Africa) Improved trust and collaboration between government and national private sector organizations (e.g. Private Sector Federations) and at regional level (e.g. East African Business Council) 9

12 Existing Partnerships: Examples Organization: Create strong private sector bodies that can control members, negotiate (clearing agents; shipping councils) ICT: Offer IT facilities & space to clearing agents to lodge documents at borders (esp. in remote areas) Professionalism: National & regional efforts to develop curricula for clearing agents, accreditation Simplified Documents for SME (e.g.) Origin Cert. Diagnosis of Needs and Priorities: Involved in diagnosis of public sector needs (WCO/WTO), what about needs of the Private Sector? Those involved in Authorized Economic Operator pilots have reported benefits in improving their own processes. 10

13 WHAT TRADING COMMUNITYCAN DO Get organized or use existing organizations (e.g. through manufacturers associations, Shippers Councils, Chambers of Commerce ) to support facilitative measures Create and maintain links with international private sector organizations for experience sharing on the negotiations process Participate actively in national trade facilitation committees, and in efforts to simplify trade See the big picture: readiness to give and take 11

14 Integrity in the Trade Chain Corruption and Bribery can take place anywhere along the Chain Importers/Exporters, Agents, transporters etc both corruption victims & beneficiaries Integrity Management requires action in private sector & government, and at points of interaction BUY PAY SHIP 12

15 Food for Thought Simplification, Harmonization & Coordination potentially sabotages Corruption Networks, so it will be resisted by illegitimate traders The Private Sector needs to recognize its specific roles in the International Trade Chain, and what actions and investments importers/exporters, banks, clearing agents, shipping agencies etc are required to facilitate international trade Diagnostics & Assessments have NOT focused on private sector because government agencies are seen as more prone to red tape (is this true?) 13

16 Private Sector in Implementation Diagnosis: Organized Private Sector have carried out own Corridor Surveys to determine impediments in the Trade Chain can supplement Studies by Customs & Other Agencies Business Process Review: Exactly what happens in the Trade Chain (including roles of private sector and government agencies) 14

17 Private Sector in Implementation Sharing of Experience & Expertise: Especially where private sector have more experience e.g. ICT, Change Management Pilots e.g. ICT, Authorized Economic Operator Investments e.g. ICT Support, Single Window Issues Tracking: to facilitate improvements 15

18 Conclusion Proposed Measures Important for the Private Sector Continuous Engagement necessary within Private Sector, and between government agencies and the Private Sector Important to define various private sector interests and their role in the Trade Chain Recognize existing partnerships between Private Sector & Government 16

19 CONTACTS Creck Buyonge Adjunct Associate Professor, Faculty of Law University of Canberra Regional Manager, Centre for Customs & Excise Studies No. 9 NAS Apartments, Milimani Road P. O. Box GPO Nairobi KENYA Tel: Fax: Creck.Buyonge@canberra.edu.au 17