Trade Facilitation at the Border 4 th seminar, UN Development Account project Trade Facilitation in Central Asia (Dushanbe, 11-13 May 2009) The Harmonization

Trade Facilitation at the Border 4th seminar, UN Development Account project Trade Facilitation in Central Asia

(Dushanbe, 11-13 May 2009)

The Harmonization Convention and Border-Crossing Facilitation

Konstantin Glukhenkiy, UNECE Transport [email protected]

Mario Apostolov, Regional Adviser, UNECE Trade [email protected]

Convention on the Harmonization of Frontier Controls of Goods, 1982

• 53 Contracting Parties53 Contracting Parties

• Latest accessions: Jordan, Lao People’s Latest accessions: Jordan, Lao People’s Democratic Republic, Moldova, TunisiaDemocratic Republic, Moldova, Tunisia

• Expressed interest to join: China, IranExpressed interest to join: China, Iran

Contracting Parties

Increasingly numerous and complicated

formalities and controls at borders for persons

and goods

1984 EU estimate: US$ 12 billion loss annually

due to border crossing difficulties

IRU estimate: International road freight transport in Europe requires around 40 documents

Lack of simplification, no one-stop-shop

Background of the Harmonization Convention

Legal framework for Coordinated Border Management

and harmonization of controls

Simplify customs and administrative border crossing

procedures (sanitary, veterinary, phytosanitary etc.)

Harmonize formalities

Reduce the number and duration of controls

Standardize documentation

Co-ordinate national and international control

procedures

Aim of the Harmonization Convention

Reduction of border delays,

Reduction of transport cost

Reduction of trade transaction cost

Reduction of border operating costs for

State budget

More efficient investments in border

facilities

Benefits of the Harmonization Convention

Scope of the Harmonization Convention

• All goods moved across borders (exported, All goods moved across borders (exported, imported or in transit) imported or in transit)

• All control services All control services

• All modes of transport All modes of transport

• Specific provisions for certain transport modes Specific provisions for certain transport modes and goodsand goods

• Also addresses certain issues with regard to Also addresses certain issues with regard to vehicles and drivers vehicles and drivers

General principles vs. detailed provisions

• Framework providing for a high degree of flexibility Framework providing for a high degree of flexibility in organizing national and international cooperation in organizing national and international cooperation

• No universal ‘one size fits all’ solutionNo universal ‘one size fits all’ solution

• Examples of best practice are essential Examples of best practice are essential

• Integrated operational annexes are required Integrated operational annexes are required

• Annex 8 on road transport came into force in 2008Annex 8 on road transport came into force in 2008

• A new Annex 9 on rail transport has been agreed A new Annex 9 on rail transport has been agreed

Major aspects of border crossing facilitation

• Infrastructure Infrastructure

• Procedures Procedures

• Documents and informationDocuments and information

• PersonnelPersonnel

Infrastructure• Necessary equipment and facilities at frontier pointsNecessary equipment and facilities at frontier points

• Minimum list for road border crossings Minimum list for road border crossings

• Common facilities and shared use of equipment, both Common facilities and shared use of equipment, both domestically and with neighbourdomestically and with neighbouringing countries countries

• To the extent possible, controls should be moved To the extent possible, controls should be moved from the border to other locations (e.g. departure or from the border to other locations (e.g. departure or destination)destination)

• At border crossing points, controls should be At border crossing points, controls should be replaced by verification of internationally replaced by verification of internationally standardized documentationstandardized documentation

Domestic intra-service coordination: sine qua none for efficient procedures

• There are many control authorities at the There are many control authorities at the border. Who takes the lead? border. Who takes the lead?

• Control mentality is an obstacle Control mentality is an obstacle

• Each control authority wants to have their Each control authority wants to have their shareshare

• A decision should be taken at the highest A decision should be taken at the highest possible political levelpossible political level

• Establishment of a single agencyEstablishment of a single agency

• Delegation of authority Delegation of authority

Documents and information

• Internationally standardized (UN Layout Internationally standardized (UN Layout Key) documents and certificates Key) documents and certificates

• Use of any technical/commercial documentsUse of any technical/commercial documents

• Use of ICTUse of ICT

• Exchange of informationExchange of information

• Transparency with respect to legislation, Transparency with respect to legislation, regulations and procedures regulations and procedures

Personnel

• Qualified personnel in sufficient numbers Qualified personnel in sufficient numbers should be availableshould be available

• Officers should get instructions for acting in Officers should get instructions for acting in accordance with international agreements accordance with international agreements and national provisionsand national provisions

• Joint controlsJoint controls

• Delegation of functionsDelegation of functions

Monitoring mechanism• Monitoring is essential for the proper Monitoring is essential for the proper

implementationimplementation

• What gets measured gets managedWhat gets measured gets managed

• Border crossing performance Border crossing performance indicators/benchmarks: OSCE-UNECE indicators/benchmarks: OSCE-UNECE Handbook Handbook

• Every two years, UNECE is to carry out a survey Every two years, UNECE is to carry out a survey on the implementation of Annex 8 on road on the implementation of Annex 8 on road transporttransport

• Public-private partnership Public-private partnership

Chapter I: General provisions incl. definitions

Chapter II: Harmonization of procedures

• Co-ordination of controls,

• Resources of the services,

• International co-operation,

• Co-operation between adjacent countries,

• Exchange of information, documents

Chapter III: Goods in transit

Chapter IV: Miscellaneous

Operational annexes

Structure of the Harmonization Convention

Harmonization of Customs

and other controls

• Organization of controls

(simultaneous control,

opening hours, availability

of facilities and personnel,

delegation to Customs)

• Result of controls

Harmonization ConventionAnnex 1

Medico-sanitary inspection

• Protection of life and health of

persons

• Information (types of goods, offices,

requirements)

• Organization of controls (availability

of facilities, storage)

• Goods in transit and co-ordination


Veterinary inspection

• Transport of animals and animal products


requirements)

• Organization of controls (availability of

facilities, storage, working hours)



Phytosanitary inspection

• Relating to transport of plants and plant

products


requirements, restrictions/prohibitions)

• Organization of controls (storage,

disinfection, working hours)



Control of compliance with technical standards

• Relating to technical standards of goods

(conformity, PSI)

• Information (types of goods, offices)

• Harmonization of standards

• Organization of controls



Quality Control

• Information (offices, procedures)

• Organization of controls (facilities, working

hours)

• Does normally not apply for goods in transit

• Co-ordination


New Annex 8

Facilitation of border crossing procedures Facilitation of border crossing procedures for road transportfor road transport

To the extent possible, perform controls at To the extent possible, perform controls at the places of departure or destinationthe places of departure or destination

At crossing points, replace controls by At crossing points, replace controls by verification of internationally standardized verification of internationally standardized documentation and certificatesdocumentation and certificates

Facilitation of visa procedures Facilitation of visa procedures

for professional drivers for professional drivers

Facilitated border crossing Facilitated border crossing

procedures for goods, procedures for goods,

particularly for urgent particularly for urgent

consignments, such as live consignments, such as live

animals and perishable goodsanimals and perishable goods

Faster controls of road vehicles (technical Faster controls of road vehicles (technical inspections) and equipment used for transport inspections) and equipment used for transport of goods under controlled temperaturesof goods under controlled temperatures

Standardized weighing procedures and Standardized weighing procedures and international vehicle weight certificateinternational vehicle weight certificate

Minimum infrastructure requirements for Minimum infrastructure requirements for efficient border crossing pointsefficient border crossing points

Languages: English, French, Russian and

Spanish

UNECE Working Party on Customs Questions

affecting Transport (WP.30)

Administrative Committee (Contracting Parties)

Secretariat (UNECE)

Management of the Harmonization Convention

http.//border.unece.org

http://untreaty.un.org/ENGLISH/bible/englishinternetbible/partI/chapterXI/subchapA/treaty17.asp

http://www.unece.org/trans/conventn/harmone.pdf

Harmonization Convention

Results from the 2006 survey

• Very useful tool for transport facilitation at Very useful tool for transport facilitation at national and international levelsnational and international levels

• Used as a model both at the national level and Used as a model both at the national level and among neighbouring countriesamong neighbouring countries

Problems highlighted by the survey

• Lack of detailed guidelines for organizing Lack of detailed guidelines for organizing cooperation at the national and international cooperation at the national and international levelslevels

• Need for training/capacity building in the Need for training/capacity building in the implementation of integrated border implementation of integrated border management procedures management procedures