TRS as Measurement of TF: TRS as Measurement of TF: Customs Experience in Asia Customs Experience in Asia

PacificPacific

Shujie ZHANG Shujie ZHANG WCO Regional Office for Capacity Building (ROCB) WCO Regional Office for Capacity Building (ROCB)

For the WCO PICARD Conference 2009For the WCO PICARD Conference 2009Sep 28–30, 2009 Sep 28–30, 2009

San Jose, Costa Rica San Jose, Costa Rica

Collect revenue

Protect domestic Ind.

Protect society

Secure trade security

Facilitate legitimate

trade

controlfacilitation

Why: Efficiency of CustomsWhy: Efficiency of CustomsHow to

measure?

Why: Why: Complexity inComplexity in IImportationmportation

Customs

Port Authority

Import License

Food sanitation

Airlines Quarantines

Importer

Shipping lines

Forwarder

Customs Broker

Warehouse

BanksContainer Yards

Immigration

Border Police

Agents

Why: Stakeholders Why: Stakeholders

Customs &OGAs

- Internal audits or review

- Continous improvement

- Link to modernization

Trade community

- Remove time delays - Modern logistics like just-in-time inventory- Predictability and transparency

Government - Trade facilitation - Better revenue generation- Good governance

International community

- WTO trade facilitation negotiation - Remove non-tariff barriers

Simplified, transparent procedures

Efficient processing of legitimate trade flow

Reduced time and cost

TRS: Image (sea) TRS: Image (sea)

Consumed by

Shipping companyShipping agent

Port Authority, etc.

Consumedby

Importer,Customs brokerContainer Yard

OGAs, etc.

Consumedby

CustomsBank

Customsbroker

Consumedby

Port AuthorityContainer Yard

Warehouse,Forwarder, etc.

DeclarationShip Arrival PermissionUnloading Delivery

1991

First TRS by First TRS by Japan and USJapan and US

1994

TRS was TRS was adopted by adopted by

WCOWCO

2001

TRS TRS Guideline Guideline was was rreviewed & eviewed & updated updated by WCOby WCO

2005

TRS Software TRS Software was was developed by developed by WCO and the WCO and the World BankWorld Bank

What: TWhat: TRSRS Timeline Timeline

Link to Other TF IndicatorsLink to Other TF Indicators

Logistics Logistics PerformaPerformance Indexnce Index

Enabling Enabling Trade IndexTrade Index

Doing Doing Business Business IndexIndex

Cross border

Time/

procedures

Regional Rollout: Membership Regional Rollout: Membership

Regional Rollout: Phased ApRegional Rollout: Phased Approach proach

Initiation Preparation

Data Collection

Data Analysis &

Report

Action For Improve- ment

Level Countries / Projects

Time Method Use of WCO Software

First Time Initiation Support

Country Level

Australia 2007 Manual No Yes APEC Japan, Korea

China 2006 Manual No Yes APEC ROCB

Indonesia 2006 Manual No Yes NA JICA

Japan Since 1991

Manual No Periodical Self /

Korea Since 1997

Auto-matic

No Periodical Self /

Lao PDR 2008 Manual Yes Yes World Bank

ROCB

Philippines 2002 Manual No Yes Self JICA

Malaysia 1995,2007

Manual Yes No Self WCO

Thailand 2006 Manual No Yes Self ROCB

Regional Level

GMS CBTA EWC TRS[i]

2009 Manual Yes No[ii] ADB ROCB

BIMP-EAGA TRS[iii]

2009 Manual Yes Yes ADB ROCB

Regional Rollout: MatrixRegional Rollout: Matrix

Conduct regularly since 1991Conduct regularly since 1991 DurationDuration: 7 consecutive days: 7 consecutive days

(8(8thth TRS: 13-19 March 2006) TRS: 13-19 March 2006) Geographical ScopeGeographical Scope: All regional Customs: All regional Customs

(At least one sea port).(At least one sea port). Types of goodsTypes of goods: All cargoes.: All cargoes. Choice of TrafficChoice of Traffic: Sea and Air: Sea and Air Choice of Customs OfficeChoice of Customs Office: 22 major sea : 22 major sea

ports and 4 major air ports.ports and 4 major air ports.

Regional Rollout : Japan Case Regional Rollout : Japan Case

26.826.031.135.135.439.445.247.6

33.736.8

37.846.049.5

63.784.9

94.5

3.34.3

4.95.6

10.213.1

19.826.1

0 50 100 150 200

20062004200119981996199319921991

Arrival-Unload Unlord-Declaration Declaration-Permission

1.2

2.6

3.5

3.5

6.7

7.5

8.6

8.7

12.8

14.0

21.6

27.3

37.9

34.6

42.7

41.6

0.4

0.4

0.6

0.7

1.8

1.6

1.6

2.3

0 10 20 30 40 50 60

2006

2004

2001

1998

1996

1993

1992

1991

Arrival-Unload Unlord-Declaration Declaration-Permission

35.6

4.4

Cargo owner

Shipping company andothers

Quantitative Evaluation (billion yen)

Source: Ministry of Finance, Japan (2004 year basis)

Regional Rollout: ROCB RoleRegional Rollout: ROCB Role

TRS Workshop in Thailand (2006) TRS Workshop in Thailand (2006) TRS Workshop in China (2006) TRS Workshop in China (2006) TRS Workshop in Lao PDR, in cooperation with World TRS Workshop in Lao PDR, in cooperation with World

Bank (2008, 2009)Bank (2008, 2009) TRS Workshop for BIMP-EGGA (Mar.2009) TRS Workshop for BIMP-EGGA (Mar.2009)

TRS Workshop for GMS EWEC (Jun.2009)TRS Workshop for GMS EWEC (Jun.2009)

Developed “Regional Best Practice Compendium on Developed “Regional Best Practice Compendium on TRS” (2007) TRS” (2007)

Regional Rollout : Common findingsRegional Rollout : Common findings

Customs may not be a significant impedimentCustoms may not be a significant impediment Entities and variables on TTF are numerous and uEntities and variables on TTF are numerous and u

sually intertwined and inter-dependent sually intertwined and inter-dependent The private sector may be responsible for some dThe private sector may be responsible for some d

elays elays Regular conduct of a TRS Regular conduct of a TRS

Regional Rollout: Dilemmas Regional Rollout: Dilemmas

Customs only vs. whole process? Customs only vs. whole process? Look easy vs. actually difficult? Look easy vs. actually difficult? Standard-alone vs. integral? Standard-alone vs. integral? Quantitative vs. qualitative? Quantitative vs. qualitative? Performance measurement or not? Performance measurement or not? Benchmarking tool or not? Benchmarking tool or not? The quicker, the better? The quicker, the better?

On Successful TRS On Successful TRS

Political will and concrete commitment shoulPolitical will and concrete commitment should be in place. d be in place.

Stakeholders’ buy-in should be obtained. Stakeholders’ buy-in should be obtained. Project management approach should be adoProject management approach should be ado

pted. pted. Defining types and components of clearance pDefining types and components of clearance p

rocess is critical. rocess is critical. Principle of 3W & H should be followed.Principle of 3W & H should be followed. Use findings properly and utilized wisely Use findings properly and utilized wisely

ConclusionsConclusions

TRS can contribute to the continuous TRS can contribute to the continuous

improvement of trade and transportation improvement of trade and transportation

facilitationfacilitation

The WCO Guideline should be adapted locally. The WCO Guideline should be adapted locally.

TRS incorporated into national TTF strategy TRS incorporated into national TTF strategy

and Customs modernization programand Customs modernization program

Capacity building is criticalCapacity building is critical

Shujie (Jack) ZHANGShujie (Jack) ZHANG

Technical AttachéTechnical Attaché

WCO ROCB (Bangkok) WCO ROCB (Bangkok)

shujie@rocbap.orgshujie@rocbap.org

rocb@rocbap.orgrocb@rocbap.org