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



34 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

depots (USD 25 million), computerization of customs offices, training of
government and private sector, improvement in governance, introduction of
advance ruling system and related administrative reform (USD 1 million) and
improvement of physical facilities in customs. Much needed technical assistance
from donor and international agencies are not included in this estimate.

China

No significant regulatory and institutional costs are expected in China, given
the major reforms that have taken place in the area of trade and customs
over the past 15 years, partly as part of China’s accession to the WTO.
Costs related to information publication (laws, regulations and notifications)
and maintenance of webpages are not easily available as they are part of
routine budgetary expenditures.

Training costs are expected to be an important part of the costs of implementing
trade facilitation measures, especially given that China Customs staff number
48,000 in over 300 offices. It is difficult to measure training expenditures
since off-the-job trainings can take various forms that may involve travel and
accommodation costs in addition to training fees.

China has invested heavily in information systems for trade facilitation.
The Customs and Administration of Quality Supervision, Inspection and
Quarantine (AQSIQ) inputs in computerization in 2005/06 are estimated at
RMB 1,420 million (about USD 176 million) and RMB 510 million (about
USD 63 million), respectively. Major information projects conducted by
Customs (e.g., Fast Customs Clearance project) and AQSIQ (e.g., AQSIQ
Information Service System and Database) in 2005/06 are estimated at
RMB 5.888 million (about USD 731 thousand) and RMB 4.386 million (about
USD 544 thousand), respectively.

B. Expert surveys on implementation costs
and sequencing
12

Given the paucity of reliable and meaningful quantitative information, a qualitative
expert survey instrument was developed and administered to international trade facilitation
experts. Fourteen international experts completed the survey between September 2005
and November 2005, resulting in a response rate of 70 per cent. Respondents included
experienced staff and/or senior trade facilitation consultants from the Asian Development
Bank (ADB), OECD, United Nations Conference on Trade and Development (UNCTAD),
United Nations Economic Commission for Europe (UNECE), United Nations Development
Programme (UNDP), UNESCAP, World Customs Organization (WCO) and the World Bank.

12 This section is, for the most part, a summary of the results discussed in more details in Duval
(2006). This study is available in full in the accompanying CD-ROM and at
www.artnetontrade.org.



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