WTO TRADE FACILITATION AGREEMENT BENEFITS FOR BUSINESSES AND WHAT BUSINESSES NEED TO DO? Tran Huu Huynh Chairman of the International Trade Advisory Committee WTO Center - Vietnam Chamber of Commerce and Industry
Structure Benefit for businesses in the TFA? - TFA Blueprint for reform - Implementing TFA Momentum for reforms - TFA in VN and other countries What businesses need to do to realize the TFA? - Vote and voice - Notice and comment - Work together to realize
Benefits for businesses from the TFA Benefits from reforming customs procedure (TTHQ) - Trade facilitation: Broad coverage (customs, duties, infrastructure, supporting industries, supply chain) WTO TFA: Mostly customs procedure facilitation - Benefit from facilitation of customs procedures: Vietnam ranking in trading across borders 65/189 (Mrs. Đặng Thị Bình An) Vietnam Customs currently has 500 documents with 5000 requirements (charecharizing by 9 Nots.) 9 Nots not clear, not efficient, not effective etc. (Mr. Nguyễn Đình Cung) 1 day reduction in customs clearance time expects to result in a savings of VND1.6 billion (Mr. Nguyễn Đình Cung) Reducing customs procedures would reduce 2.8% trade costs for upper middle income countries and 2.2% for lower middle income countries (OECD)
Benefits for businesses from the TFA TFA Blueprint for reforming customs procedures - Transparency requirements Existing regulations: Businesses need to know where they are available. Future requirements: Businesses need to know how to comment on new rules, and allow time to prepare for implementation. Unknown issues: Businesses can ask for advance rulings from customs before import and export; Unsatisfied issues: Where businesses can appeal.
100 How to find information on Customs Administrative Procedures (%) 80 80 80 60 40 37 20 9 0 Trực tiếp đến tìm hiểu tại cơ quan giải quyết TTHC Truy cập vào trang web của cơ quan nhà nước nơi giải quyết TTHC Tìm hiểu trên trang cơ sở dữ liệu quốc gia về TTHC Qua cách thức khác 5
The Quality of Information Provided (%) 80 64 60 59 50 46 46 40 31 34 34 Kém Khá Tốt 20 16 5 7 8 0 Trực tiếp đến tìm hiểu tại cơ quan giải quyết TTHC Truy cập vào trang web của cơ quan nhà nước nơi giải quyết TTHC Tìm hiểu trên trang cơ sở dữ liệu quốc gia về TTHC Qua cách thức khác 6
Regulations on administrative procedures are publicly posted at related administrative agencies or not (%) 3% 97% Có Không 7
Quality of posted Information on administrative procedures (%) 100 81.5 80 60 40 15.4 20 3.2 0 Đầy đủ, dễ hiểu, dễ tiếp cận, chính xác Không đầy đủ, khó hiểu, khó tiếp cận, không chính xác Nhận xét khác 8
Enterprises have been given comments on administrative procedures (%) 24% 76% Đã từng Chưa từng 9
Benefits for businesses from the TFA TFA Blueprint for reforming customs procedures - Requirements on key areas for import and export General provisions Fees and charges Special control measures (TBT, SPS ) Pre-arrival processing post departure measures Release of goods v. clearance of goods Single window Special provisions: AEO Special procedures: Expedited shipment, perishable goods Goods in transit
Benefits for businesses from the TFA >>> Summary: TFA sets clear standards and requirements for customs reforms Domestic law has already covered these issues but is at our own initiative and not subject to international commitment and review in case of violation.
Benefits for businesses from the TFA Implementing TFA Momentum for reforming customs procedures - Customs reforms so far is self-initiated Determination of the Government and wishes of businesses Big strides vs. a long list of outstanding issues It is not acceptable to take 4 days to complete customs procedures for exports which is 2 times higher than the regional average, and 4 days for imports while the regional average is only 3 days (Prime Minister)
Benefits for businesses from the TFA Implementing TFA Momentum for reforming customs procedures - Reforming customs procedures in the future: momentum from within and from international commitment + Requirement on Standards + Requirement on implementation approach + Requirement on completion time >>> Summary: The TFA sets a time schedule for clear, customs reforms
Benefits for businesses from the TFA TFA = Trade facilitation = Reduced cost (time, human resources, money, risk) = Improved profitability Stable business strategy
What business benefit from TFA? TFA: Reforms of Customs procedures in Vietnam and other countries - TFA: A binding agreement to all WTO members - Customs procedures reforms: A global work - Business request rights + In Vietnam - All other WTO members + Of course, there are limitations (developing countries, less developed countries have options for types of commitments and timeframe for commitments)
What business can and should do? Customs procedures reforms need participation from business - To identify/pinpoint - To reflect - To initiate - To pressure
What business can and should do? Business identify based on TFA+ - Regulations incompatible with TFA - Practices incompatible with TFA - Problems reducing effectiveness of TFA Business reflect under TFA+ - To agencies responsible for implementation of TFA (customs, other related agencies) - To monitoring, directing agencies (NA, Government) - To business representatives (VCCI, Associations)
Difficulties of implementing administrative procedures (%) 18
Assessment on administrative officials (%) 100% 80% 81% 76% 80% 69% 60% 60% 40% 20% 0% Thái độ văn minh, lịch sự Nhiệt tình giải quyết khó khăn, vướng mắc, hướng dẫn đầy đủ, dễ hiểu Tuân thủ đúng quy trình, thời gian tiếp nhận Giải quyết TTHC đúng quy định, nhanh chóng, linh hoạt Không nhũng nhiễu, tiêu cực 19
What business can and should do? Business initiatives under TFA+ - Propose solutions for solving hard issues - Comments on solutions proposed by the government - Co-propose solutions Business pressures via TFA+ - Standards, deadlines for reforms of customs procedures - World/international rankings - Public pressures and influences
What business can and should do? A business government partnership for implementation of TFA Why not? - Via VCCI, business have participated in TFA development with government agencies - Business get great benefits from implementation of TFA Government is responsible for implementation of TFA
Enterprises have been given comments on administrative procedures (%) 24% 76% Đã từng Chưa từng 22
Forms of comments on administrative procedures (%) 60.0 54.4 40.0 32.4 29.4 20.0 0.0 Gửi bằng văn bản Điện thoại Thư điện tử, trang tin điện tử 23
Commenting Issues (%) Sự không phù hợp của thủ tục hành chính 32 Sự không đồng bộ, không thống nhất của quy định hành chính 26 Các hành vi chậm trễ, gây phiền hà của cơ quan hành chính hoặc của cán bộ, công chức 22 Sáng kiến ban hành mới quy định hành chính 15 Phương án xử lý đối với quy định hành chính, TTHC hoặc hành vi hành chính đã phản ánh 9 Quy định hành chính trái với điều ước quốc tế mà Việt Nam đã ký kết hoặc gia nhập 4 Quy định hành chính không hợp pháp 3 0 10 20 30 40 24
What business can and should do? A business government partnership for implementation of TFA How does it work? - Model: + A private public joint committee? + Periodic report on implementation of TFA? - Capacity building: + For buisness: Information, advices + For government agencies (monitoring and implementation): Information hub/exchange
Legal Framework for Business to join with Government Decree No. 24/ 2009/ NĐ-CP Detailing and Providing Measures for the Implementation of the Law on Promulgation of Legal Documents Decision No. 06/2012/QĐ-Ttg on Consulting the Business Community on International Trade Agreement Programs, Documents and cooperation Mechanism btw VCCI and Government Authorities and domestic and foreign Associations 26
Thank YOU Trung tâm WTO Phòng Thương mại và Công nghiệp Việt Nam 9 Đào Duy Anh Hà Nội Tel: 04-35771458 Fax: 04-35771459 Email: banthuky@trungtamwto.vn Website: trungtamwto.vn