TRADE FACILITATION EXPERIENCE OF TURKEY AND THE ESTABLISHMENT OF A NATIONAL TRADE FACILITATION BODY. September 2015
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1 TRADE FACILITATION EXPERIENCE OF TURKEY AND THE ESTABLISHMENT OF A NATIONAL TRADE FACILITATION BODY September 2015
2 Anlaşmalar Genel Müdürlüğü 2 Source: World Economic Forum
3 Anlaşmalar Genel Müdürlüğü 3
4 INTERNATIONAL TRADE TRANSACTION PROCESS BUY SHIP PAY Prepare For Export Export Transport Prepare For Import Import INVOLVES Commercial Procedures Transport Procedures Regulatory Procedures Financial Procedures Establish Contract Order Goods Advise On Delivery Request Payment Establish Transport Contract Collect,Transport and Deliver Goods Provide Waybills, Goods Receipts Status reports Obtain Import/Export Licences etc Provide Customs Declarations Provide Cargo Declaration Apply Trade Security Procedures Clear Goods for Export/Import Provide Credit Rating Provide Insurance Provide Credit Execute Payment Issue Statements
5 TRADING ACROSS BORDERS RANK Economy Trading Across Borders Rank Economy Trading Across Borders Rank Singapore 1 Benin 121 Hong Kong SAR, China 2 Brazil 123 Korea, Rep. 3 India 126 United Arab Emirates 8 Argentina 128 Malaysia 11 Mozambique 129 Netharlands 13 West Bank and Gaza 130 United Kingdom 15 Algeria 131 United States 16 Maldives 132 Germany 18 Sierra Leone 133 Japan 20 Yemen, Rep. 134 Canada 23 Gabon 135 Morocco 31 Libya 139 Chile 40 Bangladesh 140 Brunei Darussalam 46 Guinea 141 Tunisia 50 Comoros 144 Jordan 54 Iran, Islamic Rep. 148 Djibouti 56 Mauritania 151 Oman 60 Ukraine 154 Qatar 61 Russian Federation 155 Indonesia 62 Nigeria 159 Bahrain 64 Cameroon 160 Philippines 65 Uganda 161 Gambia 77 Sudan 162 Senegal 79 Mali 163 Guyana 82 Azerbaijan 166 Turkey 90 Burkina Faso 174 Saudi Arabia 92 Venezuela, RB 176 Albania 95 Iraq 178 Lebanon 97 Niger 179 China 98 Chad 182 Egypt, Arab Rep. 99 Kyrgyz Republic 183 Suriname 106 Afghanistan 184 Pakistan 108 Kazakhstan 185 Togo 112 South Sudan 187 Kuwait 117 Tajikistan 188 Guinea-Bissau 119 Uzbekistan 189 Source: WB Doing Business Index
6 WHAT IS TRADE FACILITATION OECD: Simplification and standardization of procedures and associated information flows required to move goods internationally from seller to buyer and to pass payments in the other direction UN/CEFACT: Simplification, standardization and harmonization of procedures and associated information flows required to move goods from seller to buyer and to make payment APEC: The use of technologies and techniques which will help members to build up expertise, reduce costs and lead to better movement of goods and services. WTO: the simplification and harmonization of international trade procedures with trade procedures being the activities, practices and formalities involved in collecting, presenting, communications and processing data required for the movements of goods in international trade'. - Issues covered under GATT Art. V, VIII & X 6
7 TRADE FACILITATION Narrow Definition reducing the costs and uncertainty of transporting goods across national borders, including the documentation needed to do so Broad Definition improvement of the commercial and policy environment in which transactions occur, including but not limited to the harmonization and simplification of customs procedures, greater transparency of regulations and procedures, usage of information and communication technologies, and reforms and coordination of the agencies that implement trade facilitation matters
8 WTO Principles Non-discrimination More open Greater predictability and transparency More competitive More beneficial for less developed countries Environmentally conservative WCO Principles Integrity Transparency Accountability Predictability Facilitation and control Client service Standardization Simplification Minimum controls necessary to ensure compliance Information and technology Cooperation and partnership Continuous improvement Compliance improvement
9 WTO TF Negotiations: The Aim to clarify and improve the relevant aspects of. Article V (Freedom of Transit) Article VIII (Fees and Formalities Connected with Importation and Exportation) Article X (Publication and Administration of Trade Regulations)
10 WTO TF Negotiations First time in the Agenda as one the «Singapore issues» 1996 Decision to commence negotiations of the WTO as a part of «July Package» in 2004 Mandate further confirmed in Hong Kong Ministerial Declaration A Continuous & Intensive Negotiation Phase WTO 10th Ministerial Conference held in Bali on 3-6 December 2013 Negotiations have been finalised Preparatory Committee on Trade Facilitation Protocol was adopted on 27 November 2014 The TFA will enter into force once two-thirds of the WTO membership (108 members) has formally accepted the Agreement.
11 GUATEMALA HONDURAS NICARAGUA COSTA RICA PANAMA CUBA GUYANA SURINAME FRENCH GUIANA URUGUAY SENEGAL WESTERN SAHARA LIBERIA REPULIC OF IRELAND PORTUGAL COTE D IVOIRE UNITED KINGDOM GHANA NETHERLANDS BELGIUM DENMARK SWITZ. TUNISIA CAMEROON CZECH REPUBLIC AUSTRIA SLOVAKIA HUNGARY ESTONIA LITHUANIA GREECE LATVIA BULGARIA UGANDA GEORGIA MADAGASCAR TAHKISTAN KYRGYZSTAN SRI LANKA LAOS VIETNAM CAMBODIA TAIWAN NORTH KOREA SOUTH KOREA PAPUA NEW GUINEA GREENLAND ALASKA (USA) ICELAND SWEDEN FINLAND RUSSIAN FEDERATION NORWAY CANADA GERMANY POLAND BELARUS FRANCE ITALY ROMANIA UKRAINE KAZAKHSTAN MONGOLIA UZBEKISTAN SPAIN UNITED STATES of AMERICA TURKEY TURKMENISTAN MOROCCO SYRIA IRAQ IRAN AFGHANISTAN CHINA JAPAN ALGERIA PAKISTAN LIBYA EGYPT NEPAL MEXICO BELIZE MAURITANIA MALI NIGER CHAD SAUDI ARABIA UAE OMAN INDIA MYANMAR SUDAN YEMEN THAILAND China Hong Kong China Singapore the United States Mauritius Malaysia Japan Australia Botswana Trinidad and Tobago Republic of Korea Nicaragua Niger Belize Switzerland Chinese Taipei VENEZUELA COLOMBIA ECUADOR BRAZIL PERU BOLIVIA PARAGUAY CHILE ARGENTINA TRINIDAD AND TOBAGO GUINEA BURKINA NIGERIA ETHIOPIA CENTRAL AFRICAN REPUBLIC SOMALIA KENYA GABON CONGO DEMOCRATIC REPUBLIC OF CONGO TANZANIA ANGOLA ZAMBIA ZIMBABWE NAMIBIA BOTSWANA REPUBLIC OF SOUTH AFRICA MAURITIUSS SINGAPORES MALAYSIA INDONESIA PHILIPPINES AUSTRALIA NEW ZEALAND
12 Turkey s Ratification Process Translation of Agreement into Turkish completed as of May 2015 Agreement will be approved by the Grand National Assembly of Turkey (TBMM) Ratification process is still continuing
13 WTO TRADE FACILITATION AGREEMENT Article 1: Publication and Availability of Information Article 2: Opportunity to Comment, Information Before Entry into Force and Consultation Article 3: Advance Rulings Article 4: Procedures for Appeal or Review Procedures Article 5: Other Measures to Enhance Impartiality, Non- Discrimination, and Transparency [including detentions] Article 6: Disciplines on Fees and Charges Imposed on or in Connection with Importation and Exportation and Penalties Article 7, Para 1: Pre-Arrival Processing Article 7, Para 2: Electronic Payment Article 7, Para 3: Separation of Release from Final Determination of Customs Duties, Taxes, Fees, and Charges Article 7, Para 4: Risk Management Article 7, Para 5: Post Clearance Audit Article 7, Para 8: Expedited Shipments Article 7, Para 9: Perishable Goods Article 8: Border Agency Cooperation Article 9: Movement of Goods Intended for Import under Customs Control Article 10, Para 1:Formalities and Documentation Requirements Article 10, Para 2: Acceptance of Copies Article 10, Para 3: Use of International Standards Article 10, Para 4: Single Window Article 10, Para 5: Pre-shipment Inspections Article 10, Para 6: Use of Customs Brokers Article 10, Para 7: Common Border Procedures and Uniform Documentation Requirements Article 10, Para 8: Rejected Goods Article 10, Para 9: Temporary Admission of Goods and Inward and Outward Processing Article 11: Freedom of Transit Article 12: Customs Cooperation
14 NATIONAL COMMITTEE ON TRADE FACILITATION WTO TRADE FACILITATION AGREEMENT ARTICLE 23.2 Each Member shall establish and/or maintain a national committee on trade facilitation or designate an existing mechanism to facilitate both domestic coordination and implementation of the provisions of this Agreement.
15 NATIONAL COMMITTEE ON TRADE FACILITATION To have a TF Committees is a binding obligation It cannot be categorized as B or C Must be implemented upon entry into force of the TFA
16 NATIONAL COMMITTEE ON TRADE FACILITATION Each Member shall establish and/or maintain a national committee on trade facilitation or designate an existing mechanism to facilitate both domestic coordination and implementation of the provisions of this Agreement. SHALL makes it mandatory Establish and/or Maintain implies either to: Create new body Maintain existing one NTFC responsibilities include (specified but not limited to) to facilitate: Domestic Coordination (G2G, G2B and B2G, B2B) Implementation of Provisions of TF Agreement
17 NATIONAL COMMITTEE ON TRADE FACILITATION Agreement is silent about Structure & governance Funding and sustainability Membership and meeting frequency All these have been left to discretion of Members Source: ITC
18 Rising number of TF Committees Source: ITC
19 TURKISH NATIONAL TRADE FACILITATION BODY NATIONAL WORKING GROUP ON TRADE FACILITATION Ministry of Economy (in charge of WTO Affairs) Ministry of Customs and Trade (Turkish Customs Authority) Other Relevant Governmental Bodies & Private Sector Institutions
20 TURKISH NATIONAL TRADE FACILITATION BODY Public Stakeholders Private Stakeholders Ministry of Economy Ministry of Customs and Trade Ministry of Transport, Maritime Affairs and Communications Ministry of Food, Agriculture and Livestock Ministry of Energy and Natural Resources International Transporters Union (UND) Turkish Exporters Assembly (TIM) Foreign Economic Relations Board of Turkey (DEIK) Union of Chambers and Commodity Exchanges of Turkey (TOBB)
21 Republic of Turkey Ministry of Economy Coordination of Foreign Trade Policy Turkey s pursuance of an «Export-led growth strategy» Customs Union with the EU Experiences of Turkish transporters due to Turkey s geographical location and the structure of its foreign trade WTO TF Negotiations 14 Proposals\Joint Proposals submitted by Turkey Market Access Barriers Committee Technical Barriers to Trade Enquiry Point
22 Republic of Turkey Ministry of Customs and Trade Authorised Economic Operator Programme (AEO) & Mutual Recognition Agreement (MRA) Single Window System E-Document E-Application Reduction in the number of authorities with a presence at the border
23 Republic of Turkey Ministry of Customs and Trade Adoption of Common Transit Convention and Implementation of New Computerized Transit System (NCTS) Adoption and Implementation of International Standards ATA Convention, TIR Convention, Istanbul Convention, Common Transit Convention and Convention on The Simplification of Formalities in Trade in Goods, Revised Kyoto Convention Risk Management System Projects for Modernization of Turkish Customs
24 Union of Chambers and Commodity Exchanges of Turkey (TOBB) 252 chambers - 3,5 million documents Global Data Synchronization Network (GDSN) A platform providing synchronization over certified data pools correct and easy data exchange between stakeholders in the supply chain 25 Countries 35 Data Pools >16 million Product
25 Thank you Ayşegül DEMİR Foreign Trade Expert General Directorate of Agreements Ministry of Economy Tel:
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