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    Trade Facilitation-Interest For Developing Countries

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    Suci Sabilly
    There are many benefits to trade facilitation for developing countries: 1) Countries that have simplified trade procedures have increased overall trade flows, higher revenue collection, and recovered initial costs of modernizing procedures. 2) Benefits also include increased foreign direct investment as importing and exporting becomes easier. 3) Trade facilitation results in better border controls and increased customs revenues for governments.

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    Trade Facilitation-Interest For Developing Countries

    Uploaded by

    Suci Sabilly
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    There are many benefits to trade facilitation for developing countries: 1) Countries that have simplified trade procedures have increased overall trade flows, higher revenue collection, and recovered initial costs of modernizing procedures. 2) Benefits also include increased foreign direct investment as importing and exporting becomes easier. 3) Trade facilitation results in better border controls and increased customs revenues for governments.

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    Trade Facilitation-Interest for Developing Countries

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    There are many benefits to trade facilitation for developing countries: 1) Countries that have simplified trade procedures have increased overall trade flows, higher revenue collection, and recovered initial costs of modernizing procedures. 2) Benefits also include increased foreign direct investment as importing and exporting becomes easier. 3) Trade facilitation results in better border controls and increased customs revenues for governments.

    Copyright:

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    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    46 views2 pages

    Trade Facilitation-Interest For Developing Countries

    Uploaded by

    Suci Sabilly
    There are many benefits to trade facilitation for developing countries: 1) Countries that have simplified trade procedures have increased overall trade flows, higher revenue collection, and recovered initial costs of modernizing procedures. 2) Benefits also include increased foreign direct investment as importing and exporting becomes easier. 3) Trade facilitation results in better border controls and increased customs revenues for governments.

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    Trade facilitation: interest for developing countries

    Experience shows that developing countries who have successfully simplified and modernised their official trade procedures have: increased overall trade flows, both for exports and imports; enjoyed higher revenue collection (due to increase in trade volume, and higher detection rates of fraud); return of any initial capital costs involved in modernising procedures; and improved overall morale and efficiency of their customs administration. In most cases, infrastructure and hardware costs have been relatively limited and the key has been re-engineering of management techniques coupled with better training and conditions for e.g the customs services. Other benefits from taking trade facilitation measures include the incentives it creates for increased foreign direct investment, as it becomes easier for firms to import and export goods. European business federations have indicated that simple predictable customs procedures are one of the elements they take into account when evaluating potential hosts of their FDI. Trade facilitation measures result in better controls and bigger customs duties revenues for governments. It has been proven time and time again that simple, modern and transparent procedures enhance border control and fraud prevention, and lead to higher revenue intakes. This is particularly important for those developing countries, which depend on customs duties as an important contribution to their national budget.

    There are many benefits of trade facilitation for government and citizens alike - but the following figures are particularly noteworthy. Indeed, studies show that the cost of trade procedures may represent even as much as 4-5 % of the overall costs of trade transaction. This is about the same cost as the current tariff average on trade in industrial goods of industrialised countries, which is 3.8 %. Halving the costs would mean saving 325 billion USD or a year money currently being wasted - largely on the shoulders of SMEs and developing country traders. EC Assistance to Trade Facilitation: Objectives
    Trade Facilitation is an area where assistance to developing countries to build capacity is crucial. TF is one priority area explicitly mentioned in the Communication (513) 2002 on Trade and Development under the heading support for policy reform and investments to enhance economic efficiency and greater participation by developing countries in the multilateral trading system. The EC is currently financing a number of projects related to trade facilitation around the world, most of them with a focus on customs issues, and is committed to do so in the future. A major objective of these projects is to improve trade efficiency, in particular the speeding up of import and export processes,

    Tools for Trade Facilitation

    In designing assistance programmes in the field of trade facilitation, a number of tools are already available (useful diagnostic tools have been prepared by e.g., World Bank, the World Customs

    Organisation (WCO) Customs reform and Modernisation Programme) and new tools are being developed. Within the EU context and specifically for customs projects, DG TAXUD has developed the so called EU Customs Blueprints. These are detailed operational guidelines covering 13 key areas of customs.

    Some Expected results from implementation of specific facilitation projects


    Shortening of waiting time for goods in transit, customs release and clearance. Reduction of trade transaction costs for traders, especially for SMEs. Improved revenue collection and effectiveness of border controls. A more transparent and efficient regulatory climate for investors. Improvement of efficiency, morale and integrity of customs agencies. Improved relations between authorities involved in border control related activities and the business/trading community. Better functioning of public agencies, and a more reliable basis for implementation of government policy.

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