Trade Facilitation at the Border

1. Trade Facilitation at the Border 4thseminar, UN Development Account project Trade Facilitation in Central Asia (Dushanbe, 11-13May 2009) The Harmonization Convention and Border-Crossing Facilitation Konstantin Glukhenkiy, UNECE Transport konstantin.glukhenkiy@unece.org Mario Apostolov, Regional Adviser, UNECE Trade mario.apostolov@unece.org

2. 53 Contracting Parties Latest accessions: Jordan, Lao People’s Democratic Republic, Moldova, Tunisia Expressed interest to join: China, Iran Convention on the Harmonization of Frontier Controls of Goods, 1982

3. Contracting Parties

4. Background of the Harmonization Convention • 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

5. Aim 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

6. Benefits 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

7. All goods moved across borders (exported, imported or in transit) All control services All modes of transport Specific provisions for certain transport modes and goods Also addresses certain issues with regard to vehicles and drivers Scope of the Harmonization Convention

9. Framework providing for a high degree of flexibility in organizing national and international cooperation No universal ‘one size fits all’ solution Examples of best practice are essential Integrated operational annexes are required Annex 8 on road transport came into force in 2008 A new Annex 9 on rail transport has been agreed General principles vs. detailed provisions

10. Infrastructure Procedures Documents and information Personnel Major aspects of border crossing facilitation

11. Necessary equipment and facilities at frontier points Minimum list for road border crossings Common facilities and shared use of equipment, both domestically and with neighbouring countries To the extent possible, controls should be moved from the border to other locations (e.g. departure or destination) At border crossing points, controls should be replaced by verification of internationally standardized documentation Infrastructure

12. There are many control authorities at the border. Who takes the lead? Control mentality is an obstacle Each control authority wants to have their share A decision should be taken at the highest possible political level Establishment of a single agency Delegation of authority Domestic intra-service coordination: sine qua none for efficient procedures

13. Internationally standardized (UN Layout Key) documents and certificates Use of any technical/commercial documents Use of ICT Exchange of information Transparency with respect to legislation, regulations and procedures Documents and information

14. Qualified personnel in sufficient numbers should be available Officers should get instructions for acting in accordance with international agreements and national provisions Joint controls Delegation of functions Personnel

15. Monitoring is essential for the proper implementation What gets measured gets managed Border crossing performance indicators/benchmarks: OSCE-UNECE Handbook Every two years, UNECE is to carry out a survey on the implementation of Annex 8 on road transport Public-private partnership Monitoring mechanism

16. Structure of the Harmonization Convention • 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

17. Harmonization ConventionAnnex 1 • Harmonization of Customs and other controls • Organization of controls (simultaneous control, opening hours, availability of facilities and personnel, delegation to Customs) • Result of controls

18. Harmonization ConventionAnnex 2 • 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

19. Harmonization ConventionAnnex 3 • Veterinary inspection • Transport of animals and animal products • Information (types of goods, offices, requirements) • Organization of controls (availability of facilities, storage, working hours) • Goods in transit and co-ordination

20. Harmonization ConventionAnnex 4 • Phytosanitary inspection • Relating to transport of plants and plant products • Information (types of goods, offices, requirements, restrictions/prohibitions) • Organization of controls (storage, disinfection, working hours) • Goods in transit and co-ordination

21. Harmonization ConventionAnnex 5 • 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 • Goods in transit and co-ordination

22. Harmonization ConventionAnnex 6 • Quality Control • Information (offices, procedures) • Organization of controls (facilities, working hours) • Does normally not apply for goods in transit • Co-ordination

23. Facilitation of border crossing procedures for road transport To the extent possible, perform controls at the places of departure or destination At crossing points, replace controls by verification of internationally standardized documentation and certificates New Annex 8

24. Facilitation of visa procedures for professional drivers Facilitated border crossing procedures for goods, particularly for urgent consignments, such as live animals and perishable goods

25. Faster controls of road vehicles (technical inspections) and equipment used for transport of goods under controlled temperatures Standardized weighing procedures and international vehicle weight certificate Minimum infrastructure requirements for efficient border crossing points

26. Management of the Harmonization Convention • Languages: English, French, Russian and Spanish • UNECE Working Party on Customs Questions affecting Transport (WP.30) • Administrative Committee (Contracting Parties) • Secretariat (UNECE)

27. 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

28. Very useful tool for transport facilitation at national and international levels Used as a model both at the national level and among neighbouring countries Results from the 2006 survey

29. Lack of detailed guidelines for organizing cooperation at the national and international levels Need for training/capacity building in the implementation of integrated border management procedures Problems highlighted by the survey