Trade and Transport Facilitation Monitoring Mechanisms (TTFMM): Needs, Functions and Experiences Tengfei Wang Economic Affairs Officer, Trade Facilitation Unit Trade, Investment and Innovation Division United Nations Economic and Social Commission for Asia and the Pacific [email protected]National workshop on TTFMM, Suva, Fiji, 14 July 2016
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Trade and Transport Facilitation Monitoring Mechanism (TTFMM)
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Trade and Transport Facilitation Monitoring Mechanisms (TTFMM):
Needs, Functions and Experiences
Tengfei WangEconomic Affairs Officer, Trade Facilitation Unit
Trade, Investment and Innovation DivisionUnited Nations Economic and Social Commission for Asia and the Pacific
Key weaknesses of national trade and transport facilitation assessments so far…
• Often ad–hoc or one off• Sometimes driven by international
organizations or development partners• Often no adequate follow up===========
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Need for an integrated and sustainable mechanism: (1) To provide adequate data & information to supportdecision making and to monitor implementation and impact of these decisions on trade facilitation measures(2) To reduce unnecessary duplication of efforts & ensure recommendations are implemented
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Outline of presentation1. Why is there a need to establish national TTFMM?
– Review of international cross-country indicators– Review of the relevant work which has been carried out
2. Key features and functions of TTFMM– Core functions– Key outputs– Integrated methodology: Business Process Analysis Plus (BPA+)
3. Key factors for maintaining sustainability of TTFMM– Institutional Arrangement– National Human Resource and Capacity-building
4. Experiences of conducting TTFMM baseline studies in Asia5. Conclusion
11
TTFMM: Core Functions
Measure, monitor and assess progress in trade facilitation
Trade facilitation reform Implementation
Baseline trade and transport facilitation assessment study
Formulate, update and prioritize recommendations for advancing trade facilitation
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TTFMM: Key Outputs
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• TTFMM Database, including:– Description, activity diagram and related rules/regulations
for each trade & transport procedure for selected products along selected corridors
– Time, Cost, No. of documents for each process/procedure• Set of Indicators (dashboard)
– Include Time, Cost, No. of documents for each process/procedure
– Average speed along the corridor– Average border crossing time
• An analytical report– Presenting relevant summary information from the
database to relevant stakeholders (including in-depth analysis and recommendations)
Different tiers of data for targeted stakeholders
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Policy makers
Analysts, experts and
specialists to support decision making
Integrated methodology: Business Process Analysis Plus (BPA+)
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• Underpinning TTFMM is a methodology called Business Process Analysis Plus (BPA+)
• Business Process Analysis Plus (BPA+) is built on the UNNExT Business Process Analysis, supplemented by Time Release Study (TRS) or Time-Cost-Distance (TCD)/ Corridor Performance Measurement and Monitoring (CPMM) methods.
• Depending on each country’s specific need and context, other trade facilitation assessment and monitoring methods may also be integrated into BPA+.
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Broad trade facilitation definition encompasses the full trade transaction scope
In its broader sense, Trade Facilitation involves all operations and all
stakeholders from buyer to seller
Source: UNECE
BPA+: An Integrated Methodology
Trade-related procedures before cargo movement
Cargo origin
Border crossing point
Border crossing point
Cargo destination
Trade-related procedures after cargo arrival
TRS TRS
TCD/CPMM
BPA of Trade Procedures
Business Process Analysis (BPA) for diagnosis of TF bottlenecks along entire supply chainTime-Cost Distance Method (TCD) & Time Release Study (TRS)to Improve/verify BPA time and cost estimates
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18
Shipping company
Shipping agentPort Authority,
etc.
Customs,
Bank,Custom
sbroker
Port AuthorityContainer
YardWarehouse,Forwarder,
etc.
Importer,Customs bro-
kerContainer
YardOGAs, etc.
Time Release Study (TRS): Measuring ‘time’ for border crossing procedures (credit: WCO)
Arrival of cargo
Unloading/Storage
Submission ofDeclaration
Customs release permission
Removal of cargo18
Transport to border
Wait at border crossing/change transport mode
Transport to sea port
Wait at sea port
Sea transport
500 km 1000 km 2000 km1500 km
Day 4
Tim
e
Day 3
Day 2
Day 1
$400
Cost
$300
$200
$100
Distance
Point of Origin
Destination
TCD/CPMM: record ‘time’ and ‘cost’ of physical movement of cargoes
19Credit: Transport Division, ESCAP
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Why is it not sufficient to just look at TRS and TCD/CPMM results?
1 2 3 4 5 6 7 8 9 10 11
Day
Process
30
20
10
0
5
25
15
35
14 days
3 days
2 days
1 day
3 days
4 days
1 day
1
2
4
3
56 7 8
9
10
11
1 day
1 day
1. Buy - Conclude sales contract and trade terms2. Have product sampled and technically examined 3. Arrange transport4. Prepare export permit 5. Apply for cargo insurance6. Prepare and submit customs declaration 7. Stuff container and transfer it to port of departure (covered by TCD)8. Clear goods through customs (covered by TRS and TCD)9. Handle container at terminal and stow it on vessel (covered by TCD)10. Prepare documents required by importer as listed in L/C11. Pay - Claim payment of goods
Assuming 50% reduction for each procedure of 7-90.5 day /30 days = 1.7% (TRS)1.5 days/30 days = 5% (TRS and TCD combined)
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Outline of presentation1. Why is there a need to establish national TTFMM?
– Review of international cross-country indicators– Review of the relevant work which has been carried out
2. Key features and functions of TTFMM– Core functions– Key outputs– Integrated methodology: Business Process Analysis Plus (BPA+)
3. Key factors for maintaining sustainability of TTFMM– Institutional Arrangement– National Human Resource and Capacity-building
4. Experiences of conducting TTFMM baseline studies in Asia5. Conclusion
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Institutional arrangement: an exampleSu
ppor
t fro
m In
tern
ation
al o
rgan
izatio
ns NTFC
TTFMM implementation team leader (A senior member of NTFC or a person appointed by NTFC)
TTFMM implementation coordinator (Secretariat of NTFC)
BPA data collection & TTFMM analysis, database and report (a research institute under the Min. of Trade or Customs)
TRS data collection (Customs officers)
TCD data collection (freight forwarders and drivers)
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National Human Resource and Capacity-building
• National human capacity needs to be developed and maintained in the process of establishing TTFMM
• Some countries, especially least developed countries and landlocked developing countries, may face difficulties in putting TTFMM in place on their own and may need to be provided technical and financial assistance at the beginning
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Outline of presentation1. Why is there a need to establish national TTFMM?
– Review of international cross-country indicators– Review of the relevant work which has been carried out
2. Key features and functions of TTFMM– Core functions– Key outputs– Integrated methodology: Business Process Analysis Plus (BPA+)
3. Key factors for maintaining sustainability of TTFMM– Institutional Arrangement– National Human Resource and Capacity-building
4. Experiences of conducting TTFMM baseline studies in Asia5. Conclusion
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TTFMM baseline studies in South Asia
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Inception Workshop in Bangkok 2013 National workshop in Phuentsholing Bhutan 2014
National Workshop in Dhulikhel Nepal 2014 National Workshop in Dhaka Bangladesh 2014
760 km Export of ferro silicon Import of motor vehicles 27
TTFMM baseline studies in Bangladesh, Bhutan and Nepal
• Notwithstanding various sorts of challenges for the baseline studies, the success story so far is that all three LDCs can carry out the studies with their own national experts.
• However, support from development partners and int’l organizations is crucial to build national capacity at the beginning stage
Data collection in Kolkata in March 2016
Project team met in Bangkok in Jan. 2016
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Concluding remarks• It is important to establish national trade and
transport facilitation mechanism to support policy making
• A combination of BPA, TRS and TCD/CPMM would provide insightful observations and conclusions on trade and transport facilitation improvement
• Political will and support is important to sustain the success of TTFMM.