Trade Facilitation and the Single Window

1 Trade Facilitation plays a significant role in improving Trade growth and competitiveness within the context of the global supply chain. This report sheds light on the requirements Key Factors in Establishing for establishing the Single Window system for Trade Facilitation . Having defined the Single Window system, the report provides comprehensive information on the compliance of national Trade policies with Trade treaties, Trade law and Trade regulations. It also Single Windows for Handling Import/Export analyses initiatives in ESCWA member countries to establish the Single Window system with a view to highlighting best practice across the region. The report concludes with a Procedures and Formalities: number of policy recommendations addressed to ESCWA member countries and to the Commission.

2 Trade Facilitation and the Single Window United Nations House, Riad El Solh Square Box: 11-8575, Beirut, LEBANON. Tel.: +961 1 981301; Fax: +961 1 981510. Faraways - Copyright ESCWA 2011. Printed at ESCWA, Beirut E/ESCWA/EDGD/2011/5. United Nations Publication 11-0286 December 2011 - 472. Christos Georghiou - ECONOMIC AND SOCIAL COMMISSION FOR WESTERN ASIA (ESCWA). KEY FACTORS IN ESTABLISHING Single WINDOWS FOR HANDLING. IMPORT/EXPORT PROCEDURES AND FORMALITIES: Trade Facilitation AND THE Single Window . United Nations Distr. GENERAL. E/ESCWA/EDGD/2011/5. 10 November 2011. ORIGINAL: ENGLISH. ECONOMIC AND SOCIAL COMMISSION FOR WESTERN ASIA (ESCWA). KEY FACTORS IN ESTABLISHING Single WINDOWS FOR HANDLING.

3 IMPORT/EXPORT PROCEDURES AND FORMALITIES: Trade Facilitation AND THE Single Window . United Nations New York, 2011. _____. Note: The opinions expressed are those of the authors and do not necessarily reflect the views of ESCWA. The opinions and recommendations expressed in this document do not necessarily reflect the views of ESCWA or the United Nations Secretariat. 11-0286. Preface This publication was prepared by the Economic Development and Globalization Division (EDGD) of the Economic and Social Commission for Western Asia (ESCWA) as part of its activities in the area of Trade Facilitation and Single Window . It represents an invitation to Trade officials and policymakers in ESCWA. member countries to reorganize their Trade Facilitation policies as a key feature in supply chain management and customs modernization programmes with a view to furthering economic development in the ESCWA.

4 Region. The publication draws on work conducted by an external expert, which was presented at the Regional Training Workshop on Requirements for the Establishment of Single Windows for Handling Export/Import Procedures and Formalities in the ESCWA Region (Beirut, 3-4 March 2011). The original text was modified significantly as a result of the discussions, deliberations and suggestions raised by participants at the Workshop and forms the basis of this study. iii iv CONTENTS. Page Preface .. iii Executive summary .. vii Abbreviations .. x Chapter I. IMPORTING AND EXPORTING: INTERNATIONAL SUPPLY 1. A. Supply chain overview .. 2. B. Supply chain management .. 3. C. The role of the World Trade Organization and the Single Window .

5 4. D. WTO Trade Facilitation mandate .. 5. E. WTO Single Window : one-time submission .. 5. F. Single Window background and purpose .. 7. G. Participants in the Single Window ecosystem .. 8. H. Introductory definitions of the Single Window .. 8. I. Benefits of the Single Window .. 9. II. Single WINDOWS ENHANCE AND FACILITATE Trade .. 11. A. More detailed definitions of a Single Window .. 12. B. Regional Single windows .. 14. C. The Single Window hierarchy .. 15. D. Single Window basics .. 15. E. Trade treaties, Trade law and local Trade regulations .. 18. F. Compliance and border control: customs processes .. 18. G. Technical and compliance agencies: Government Agencies and Permit Issuing Agencies.

6 19. H. Ports, transport and 20. I. ICT and process-change management (reengineering) .. 22. III. COMMON TASKS INVOLVED IN ESTABLISHING A Single Window .. 26. A. Sources of information and 29. B. Best-practice Single windows .. 31. IV. TRENDS AND DEVELOPMENTS IN ESTABLISHING ESCWA REGION. Single WINDOWS .. 32. A. Trade documents .. 33. B. Customs clearance and the Single administration document .. 33. C. Goods movement through the cargo arrival processing system .. 35. D. Costs of carrying goods in ESCWA member countries .. 35. v CONTENTS (continued). Page V. Single Window STATUS OF ESCWA MEMBER 36. A. Research and report methodology .. 36. B. ESCWA country Single Window status reports.

7 40. VI. CONCLUSIONS: RECOMMENDATIONS .. 69. A. Ranking factors .. 69. B. Symbols: numeric rankings .. 71. C. Results of assessments .. 72. D. Recommendations .. 72. LIST OF CHARTS. 1. WTO Trade Facilitation mandate, objectives and scope .. 5. 2. WTO chart AA: Trade Facilitation actions and priorities .. 7. 3. Summary of ESCWA membership Trade 32. 4. (Nominal) documents for exporting and importing, ESCWA member countries .. 33. 5. Time taken for exporting and importing goods (days), ESCWA member countries .. 35. 6. Costs of carrying goods for export and import (US$), ESCWA member countries .. 35. LIST OF DIAGRAMS. 1. Road map for a collaborative national Single Window .. vi 2. Main principles of full-function Single Window for Trade processing.

8 1. 3. Integration of global supply chains .. 3. 4. Intended functionality of Single windows .. 12. 5. Approvals and goods release: where the Single Window sits .. 14. 6. The lifecycle of a Single Window .. 16. 7. Single windows evolution .. 17. 8. Conceptual overview of a national Single Window ecosystem .. 22. 9. Lebanese customs key performance indicators, 1997-2009 .. 53. 10. Component systems and clusters comprising a national Single Window .. 71. LIST OF BOXES. 1. Trade Facilitation .. 4. 2. World Trade Organization Trade Facilitation deal to reduce Trade costs and boost Trade : Lamy .. 6. 3. Non-cargo formalities and regulatory compliance .. 20. 4. TIR: goods transit across national borders.

9 21. 5. Data collection: current Trade processing practices .. 29. 6. Best-practice Single windows .. 36. Annex .. 74. vi Executive summary The present report on Single windows for Trade Facilitation was commissioned by the United Nations Economic and Social Commission for Western Asia (ESCWA). This final document completes a four- months desk research, interview and questionnaire process, which was concluded with the Regional Training Workshop on Requirement for the Establishment of Single Window for Handling Export/Import Procedures and Formalities in the ESCWA Region, Beirut, 3-4 March 2011. The objectives of the report were to: Provide background awareness and learning materials for ESCWA member countries.

10 Document and analyse the current status of Single windows for Trade Facilitation ;. Identify best practices in the region;. Provide policy recommendations for ESCWA and its member countries bearing in mind the outcome of the regional analysis. What is a Single Window , and why is it used? The reason for this exercise is to measure regional progress and preparedness for Single windows in Trade Facilitation . The purpose of a Single Window is to provide a platform and processes for a paperless (electronic) exchange of Trade information between participants in the Trade process, largely accomplished through a Single electronic lodgement. Pressure to implement Single windows is building from several such sources as the World Trade Organization (WTO), which is aiming to have a mandatory inclusion of Single windows in the final version of the Doha Round, probably due for signature by the end of 2011; from countries themselves who see Trade expansion, efficiencies and increased revenue collection as benefits of a successful Single Window , and the global supply chains, who are demanding more efficient Government licensing and customs processes, together with faster, more efficient movement of goods through port and terminal operations to improve national import and export performance.