32 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
IV. Implementation costs of trade facilitation
Estimating the cost of implementation of selected trade facilitation measures is
a difficult exercise. Indeed, trade facilitation measures are typically implemented either as
part of larger reform efforts or as part of continuous reviews and improvements of rules
and procedures of customs and other, often numerous, agencies, each with its own
budget and resources. In addition, the political dimension of trade facilitation and its
potential impact on rent seeking by groups of government officials can also add significantly
to the cost and time necessary for full implementation of a given trade facilitation measure.
Aside from political costs, trade facilitation implementation costs may include
legislative/regulatory costs, institutional costs (e.g., for the establishment and operation of
a national trade facilitation committee or enquiry point), human resource training costs
(e.g., training of customs officers on conducting post-clearance audits) and infrastructure
costs (e.g., hardware and software needed for establishment of an electronic trade
documentation system).
After highlighting selected quantitative information from the country case studies,
a summary of the results of an international expert survey on the implementation costs of
selected trade facilitation measures, and their sequencing, is presented.
A. Selected quantitative information from country
case studies
Research team members reported major difficulties in obtaining relevant cost
estimates, budget breakdowns and related information from Customs and other government
agencies involved in implementing trade facilitation measures. Selected information from
each of the country studies is reported here. However, numbers and estimates provided
below should be taken as indicative at best.
India
• Trade and legal reforms are on-going in India. In addition, key institutions
and regulatory authorities in charge of these reforms are in place, such that
legislative and regulatory costs of trade facilitation are expected to be low.
• USD 0.80 million was allocated for the introduction of self-assessment based
risk management system and post clearance audits for low risk importers
and exporters.
• The growth of a Certifying Authority under the purview of Customs to issue
relevant digital signature certificates to facilitate and secure the exchange
and processing of electronic trade documents will require 32 additional posts
in addition to the existing 4.