Time Release Study for effective implementation of Trade Facilitation

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Time Release Study for effective implementation of Trade Facilitation Japan Customs 18 th March 2015

Topics TRS in WTO TFA TRS in WCO Mercator Programme WCO TRS Guidelines TRS Experience by Japan Customs

Topics TRS in WTO TFA TRS in WCO Mercator Programme WCO TRS Guidelines TRS Experience by Japan Customs

TRS in WTO TFA WTO AGREEMENT ON TRADE FACILITATION ARTICLE 7: RELEASE AND CLEARANCE OF GOODS 7.6 Establishment and Publication of Average Release Times 7.6.1 Members are encouraged to measure and publish their average release time of goods periodically and in a consistent manner, using tools such as, inter alia, the Time Release Study of the World Customs Organization.

TRS in WTO TFA WTO AGREEMENT ON TRADE FACILITATION ARTICLE 7: RELEASE AND CLEARANCE OF GOODS 7.6 Establishment and Publication of Average Release Times 7.6.2 Members are encouraged to share with the Committee their experiences in measuring average release times, including methodologies used, bottlenecks identified, and any resulting effects on efficiency.

TRS in WTO TFA TFA 7.6 aim to Conduct TRS periodically in consistent manner Hopefully conduct based on WCO TRS Guide line Publish result and average release time of goods Release time will be expected!

Topics TRS in WTO TFA TRS in WCO Mercator Programme WCO TRS Guidelines TRS Experience by Japan Customs

WCO Mercator Programme Objectives To assist governments worldwide to prepare for the implementation of WTO TFA and TF measures expeditiously and in a harmonized manner by using core WCO tools To help developing needs-based TA projects for both recipients and donors

TRS in Mercator Programms TRS use to Measure base line and current situation Identify bottlenecks and needs Develop tailor-made Technical Assistance Program Monitor performance of TF measures will be conducted Beneficiaries can receive better TA!

TRS in WCO Mercator Programme Source: World Customs Organization

Topics TRS in WTO TFA TRS in WCO Mercator Programme WCO TRS Guidelines TRS Experience by Japan Customs

WCO TRS Guidelines Objectives To Identify the bottlenecks in supply chains To provide benchmark, contributing to planning, implementing, and evaluating various TF measure by Customs, OGAs and Private sectors

WCO TRS Guidelines detail TRS Guideline include Design whole study picture Plan TRS method and elements Prepare to conduct TRS How to conduct TRS physically How to use TRS results Smooth conducting and using TRS!

Outline of WCO TRS Guidelines Phase 1: Preparation of the Study Phase 2: Collection and Recording of Data Phase 3: Analysis of Data and Conclusions

Topics TRS in WTO TFA TRS in WCO Mercator Programme WCO TRS Guidelines TRS Experience by Japan Customs

TRS Experience by Japan Customs 1 st : February 1991 2 nd : February 1992 3 rd : March 1993 4 th : March 1996 5 th : March 1998 6 th : March 2001 7 th : March 2004 JP Customs conducted TRS 10 times! 8 th : March 2006 9 th : March 2009 10 th : March 2012

Conditions of 10 th TRS Duration of study Geographic scope Focus of study Mode of transport Types of cargo 1 week (Monday, 12 th Sunday, 18 th March 2012) All 9 Regional Customs Arrival Warehousing Declaration Permission Sea and Air All cargos except balk

Picture of TRS by JP Customs Planning Direction to the Regional Customs Data Analysis & Evaluation Publication Supervise TRS operations and lead the coordination among stakeholders Filling-in Survey sheets Collection of Survey sheets Report to the HQs Customs HQs (MOF) Regional Customs Survey sheets are filled in manually by the Brokers, Customs and OGAs concerned referring to the data in NACCS. Filling-in Survey sheets Customs Broker necessary data NACCS OGAs Filling-in Survey sheets

Scope of Study Shipping company, Container Yard, Port Authority, Customs broker, etc. Container Yard, Warehouse, Importer, Customs broker, OGAs, etc. Customs, Bank, Customs broker, etc. Container Yard, Warehouse, Forwarder, Port Authority, Customs broker, etc. Arrival Warehousing Declaration Permission Delivery

Changes in the mean time required for clearance (Sea Cargo) 1991 1992 1993 1996 1998 47.6 45.2 39.4 35.4 35.1 46.0 63.7 49.5 94.5 84.9 10.2 5.6 13.1 19.8 26.1 Parallel document check Interface with OGA s system & Immediate permission upon arrival Pre-Arrival Documentary Examination 2001 31.1 37.8 4.9 2004 26.0 36.8 4.3 Simplified Import Declaration & 1 st Single Window 2006 2009 26.8 26.3 33.7 33.0 3.3 3.1 AEO Program & 2 nd Single Window 2012 27.0 31.2 2.6 0 20 40 60 80 100 120 140 160 180 (Hours) Arrival-Warehousing Warehousing-Declaration Declaration-Permission

Changes in the mean time required for clearance (Air Cargo) 1991 1992 8.7 8.6 41.6 42.7 2.3 1.6 Pre-Arrival Documentary Examination 1993 1996 1998 3.5 7.5 6.7 27.3 34.6 37.9 0.7 1.6 Parallel document check 1.8 Immediate permission upon arrival 2001 3.5 21.6 0.6 2004 2.6 14.0 0.4 Simplified Import Declaration 2006 2009 1.2 5.5 12.8 10.1 0.4 0.4 AEO Program 2012 7.0 6.0 0.3 0 10 20 30 40 50 60 (Hours) Arrival-Warehousing Warehousing-Declaration Declaration-Permission

Actions taken so far Customs Database for RM (1991) Pre-arrival Doc. Examination (1991) Parallel Docs examinations with OGAs (1994) Interface with OGAs system (1997) Simplified Declaration for Authorized persons (2001) Introduction of Single Window (2003) 24 Hours operation (2003) AEO Program (2007) 2 nd Single Window(2008)

Changes in the mean time required for clearance with OGA requirements (Sea Cargo) 1996 36.5 68.3 9.2 1998 35.1 (1997 : Interface with OGA) 58.9 4.7 2004 28.9 (2003 : 1 st Single Window) 59.3 6.1 2009 34.4 (2008 : 2 nd Single Window) 53.2 4.9 2012 32.4 45.9 3.7 0 20 40 60 80 100 120 (Hours) Arrival-Warehousing Warehousing-Declaration Declaration-Permission

Actions taken so far with OGA Reengineering of Single Window (2008) IF AI AI ID Food Sanitation Animal Quarantine Plant Quarantine License Foreign Countries NACCS Single Window Portal Business GD GD GD GD ID GD Port Manager Japan Coast Guard Quarantine Immigration Customs

Public TRS results and Awareness Press Release by MOF Major News Papers picked up TRS! The Daily Cargo The Japan Maritime Daily WTO TFA required to public average release time! Awareness public interest! Increase expectation!

Conclusion TRS Conduct periodically in consistent manner! Use for simple comparison in national and historical! Is NOT goal just tool to identify bottle neck and measure TF in your country!

When do you do it? Of course, NOW!

Thank you very much! Takao IWAI E-mail: takao.iwai@mof.go.jp