AN EXPLORATION OF THE NEED FOR AND COST OF SELECTED TRADE FACILITATION MEASURES IN ASIA AND THE PACIFIC IN THE CONTEXT OF THE WTO NEGOTIATIONS



Synthesis report

19


China, India and Indonesia have EDI systems in place and Bangladesh is leapfrogging
to single administrative document (SAD) as part of its implementation of ASYCUDA++.
Although ASYCUDA and SAD have also been introduced in major Customs offices in
Nepal, 11 documents are still needed for exports and 20 for imports. Nepal also requires
that a letter of credit be open for every import transaction above USD 30,000.

10. Border agency coordination

Pilot projects and committees to improve border agency coordination have been
launched and established, respectively, in all the countries examined. However, most
studies point to coordination among agencies as an area where significant improvement is
still needed. In particular, they point to the need for more coordination between Customs
and the many other agencies involved in regulating imports and exports.

The China study reports significant progress in this area since implementation of
a “Fast Customs Clearance” system initiated in 2001 and involving the development, at
major ports, of Electronic Port Platforms connecting 12 to 16 government agencies with
each other and to traders and banks. Steps have also been taken to improve coordination
at the regional level to facilitate movement of goods across regions of China.

One issue raised it that of duplication of physical examination of shipments by
different agencies, resulting in delays in clearance. Simultaneous examinations by officers
from all relevant agencies and/or transfer of authority among staff of different agencies
(whenever feasible) are two possible solutions mentioned in the reports.

Another issue that seem to emerge from the studies is the gap between the
information systems and overall resources of Customs relative to those of units involved in
regulating imports and exports in other government agencies. While Customs have been
reformed and their IT systems upgraded in many countries, those of other agencies may
not have, creating bottlenecks.

11. Release and clearance of goods

As mentioned earlier, most countries examined have launched trade facilitation
initiatives, many of which aimed at shortening release and clearance time. Most reports
point to investment in infrastructure and ICT as the key to more efficient release and
clearance, as in the case of China. The Nepal study also suggests that one of the main
reasons for delay in customs clearance is that customs houses are not equipped with the
modern tools of examination and the technical manpower they need.

In Bangladesh and Nepal, although SADs have been introduced as part of the
implementation of ASYCUDA, clearance still requires an often long list of paper documents
- ranging from 11 for a Nepalese exporter to 20 for a Nepalese importer.

Risk management principles have been applied in all countries, but the level of
implementation varies greatly across countries (see table II.3). Risk assessment systems
often exist at major ports and/or border crossings, but systems do not appear to be in



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