National Trade and Transport Facilitation Monitoring Mechanism (TTFMM)

National Trade and Transport Facilitation
Monitoring Mechanism (TTFMM)
Tengfei Wang
Economic Affairs Officer
Trade Facilitation Unit
United Nations Economic and Social Commission
for Asia and the Pacific (UNESCAP)
Email: [email protected]
ADB-ESCAP Workshop on TTFMM baseline studies in
Bangladesh, Bhutan and Nepal
UNCC, Bangkok, Thailand, 13-15 January 2016
Agenda
To discuss the importance for establishing a sustainable national trade and
transport facilitation monitoring mechanism
To provide an overview of Trade and Transport Facilitation Monitoring
Mechanism (TTFMM)
1.
2.



To ascertain the key factors for maintaining sustainability of TTFMM
3.


4.
Core functions
Key outputs
Integrated methodology: Business Process Analysis Plus (BPA+)
Institutional Arrangement
National Human Resource and Capacity-building
To review the efforts to establish TTFMM in Bangladesh, Bhutan and Nepal
2
Importance for establishing sustainable national TTFMM (1)
 Available
international cross-country trade
and transport indicators are useful but
not always sufficiently detailed or reliable
 Trade
facilitation monitoring exercises carried out in
developing countries are often undermined by the
following weakness:



Ad hoc in nature without effective follow-ups
Little coordination;
Limited buy-in by the government
Importance for establishing sustainable national TTFMM (2)
 There
is therefore a need for regularly and
systematically monitoring progress and impact of
trade and transport facilitation reforms to




provide adequate data and information to support decision
making;
monitor implementation and impact of these decisions on
trade facilitation measures;
reduce unnecessary duplication of efforts; and
ensure recommendations are implemented
Agenda
To discuss the importance for establishing a sustainable national trade and
transport facilitation monitoring mechanism
To provide an overview of Trade and Transport Facilitation Monitoring
Mechanism (TTFMM)
1.
2.



To ascertain the key factors for maintaining Sustainability of TTFMM
3.


4.
Core functions
Key outputs
Integrated methodology: Business Process Analysis Plus (BPA+)
Institutional Arrangement
National Human Resource and Capacity-building
To review the efforts to establish TTFMM in Bangladesh, Bhutan and Nepal
5
Agenda
To discuss the importance for establishing a sustainable national trade and
transport facilitation monitoring mechanism
To provide an overview of Trade and Transport Facilitation Monitoring
Mechanism (TTFMM)
1.
2.



To ascertain the key factors for maintaining Sustainability of TTFMM
3.


4.
Core functions
Key outputs
Integrated methodology: Business Process Analysis Plus (BPA+)
Institutional Arrangement
National Human Resource and Capacity-building
To review the efforts to establish TTFMM in Bangladesh, Bhutan and Nepal
6
Core Functions
Baseline trade and transport facilitation assessment study
Formulate, update and prioritize
recommendations for advancing trade facilitation
Trade facilitation reform
Implementation
Measure, monitor and assess
progress in trade facilitation
Agenda
To discuss the importance for establishing a sustainable national trade and
transport facilitation monitoring mechanism
To provide an overview of Trade and Transport Facilitation Monitoring
Mechanism (TTFMM)
1.
2.



To ascertain the key factors for maintaining Sustainability of TTFMM
3.


4.
Core functions
Key outputs
Integrated methodology: Business Process Analysis Plus (BPA+)
Institutional Arrangement
National Human Resource and Capacity-building
To review the efforts to establish TTFMM in Bangladesh, Bhutan and Nepal
8
TTFMM – Key Outputs
 TTFMM


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

Database, including:
analytical report
Presenting relevant summary information from the database
to relevant stakeholders (including in-depth analysis and
recommendations)
9
Different tiers of data for targeted stakeholders
Policy
makers
Analysts,
experts and
specialists to
support decision making
10
Agenda
To discuss the importance for establishing a sustainable national trade and
transport facilitation monitoring mechanism
To provide an overview of Trade and Transport Facilitation Monitoring
Mechanism (TTFMM)
1.
2.



To ascertain the key factors for maintaining Sustainability of TTFMM
3.


4.
Core functions
Key outputs
Integrated methodology: Business Process Analysis Plus (BPA+)
Institutional Arrangement
National Human Resource and Capacity-building
To review the efforts to establish TTFMM in Bangladesh, Bhutan and Nepal
11
Integrated methodology: Business Process Analysis Plus (BPA+)
Baseline trade and transport facilitation assessment study
Formulate, update and prioritize
recommendations for advancing trade facilitation
Trade facilitation reform
Implementation
Measure, monitor and assess
progress in trade facilitation
Integrated Methodology: BPA+
Integrated methodology: Business Process Analysis
Plus (BPA+)
 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) methods.
 Depending on each country’s specific need and context,
other trade facilitation assessment and monitoring
methods may also be integrated into BPA+.
13
BPA+: An Integrated Methodology
Trade-related
procedures
before cargo
movement
Cargo
origin
Border
crossing
point
Border
crossing
point
TRS
TRS
Cargo
destination
Traderelated
procedures
after cargo
arrival
TCD
BPA of Trade Procedures
Business Process Analysis (BPA) for diagnosis of TF
bottlenecks along entire supply chain
Time-Cost Distance Method (TCD) &
Time Release Study (TRS)
to Improve/verify BPA time and cost estimates
Time Release Study (TRS): Measuring ‘time’ for
border crossing procedures
Shipping company
Shipping agent
Port Authority,
etc.
Arrival of
cargo
Importer,
Customs broker
Container Yard
OGAs, etc.
Unloading
/Storage
Customs,
Bank,
Customs
broker
Submission of
Declaration
Port Authority
Container Yard
Warehouse,
Forwarder,
etc.
Customs
release
permission
Removal
of cargo
15
15
Time-Cost-Distance Method: record ‘time’ and
‘cost’ of physical movement of cargoes
Destination
Day 4
Sea transport
$400
Day 3
$300
Day 2
$200
Day 1
$100
Wait at
sea port
Transport
to sea port
Wait at border
crossing/change
transport mode
Transport to border
500 km
Point of Origin
1000 km
1500 km
2000 km
Why is it not sufficient to just look at TRS and TCD
results?
Day
35
Assuming 50% reduction for each procedure of 7-9
0.5 day /30 days = 1.7% (TRS)
1.5 days/30 days = 5% (TRS and TCD combined)
30
4 days
11
3 days
25
20
3 days
14 days
1 day
4
1 day
5
8
1 day
9
10
3
1. Buy - Conclude sales contract and trade terms
2. Have product sampled and technically examined
3. Arrange transport
4. Prepare export permit
5. Apply for cargo insurance
6. 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/C
11. Pay - Claim payment of goods
15
10
6
1 day
7
2
5
2 days
1
0
17
1
2
3
4
5
6
7
8
9
10
11
Process
Agenda
To discuss the importance for establishing a sustainable national trade and
transport facilitation monitoring mechanism
To provide an overview of Trade and Transport Facilitation Monitoring
Mechanism (TTFMM)
1.
2.



To ascertain the key factors for maintaining Sustainability of TTFMM
3.


4.
Core functions
Key outputs
Integrated methodology: Business Process Analysis Plus (BPA+)
Institutional Arrangement
National Human Resource and Capacity-building
To review the efforts to establish TTFMM in Bangladesh, Bhutan and Nepal
18
Agenda
To discuss the importance for establishing a sustainable national trade and
transport facilitation monitoring mechanism
To provide an overview of Trade and Transport Facilitation Monitoring
Mechanism (TTFMM)
1.
2.



To ascertain the key factors for maintaining Sustainability of TTFMM
3.


4.
Core functions
Key outputs
Integrated methodology: Business Process Analysis Plus (BPA+)
Institutional Arrangement
National Human Resource and Capacity-building
To review the efforts to establish TTFMM in Bangladesh, Bhutan and Nepal
19
Core Functions
Baseline trade and transport facilitation assessment study
Formulate, update and prioritize
recommendations for advancing trade facilitation
Trade facilitation reform
Implementation
Measure, monitor and assess
progress in trade facilitation
Integrated Methodology: BPA+
Institutional Arrangement
Institutional arrangement: an example
International organizations such as
ADB and UNESCAP
National Trade Facilitation Committee (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, Clearance
Agencies, other stakeholders)
TCD data collection
(freight forwarders and
drivers)
Agenda
To discuss the importance for establishing a sustainable national trade and
transport facilitation monitoring mechanism
To provide an overview of Trade and Transport Facilitation Monitoring
Mechanism (TTFMM)
1.
2.



To ascertain the key factors for maintaining Sustainability of TTFMM
3.


4.
Core functions
Key outputs
Integrated methodology: Business Process Analysis Plus (BPA+)
Institutional Arrangement
National Human Resource and Capacity-building
To review the efforts to establish TTFMM in Bangladesh, Bhutan and Nepal
22
National Human Resource and Capacity-building
Baseline trade and transport facilitation assessment study
Formulate, update and prioritize
recommendations for advancing trade facilitation
Trade facilitation reform
Implementation
Measure, monitor and assess
progress in trade facilitation
Integrated Methodology: BPA+
National Human Capacity
Institutional Arrangement
Agenda
To discuss the importance for establishing a sustainable national trade and
transport facilitation monitoring mechanism
To provide an overview of Trade and Transport Facilitation Monitoring
Mechanism (TTFMM)
1.
2.



To ascertain the key factors for maintaining Sustainability of TTFMM
3.


4.
Core functions
Key outputs
Integrated methodology: Business Process Analysis Plus (BPA+)
Institutional Arrangement
National Human Resource and Capacity-building
To review the efforts to establish TTFMM in Bangladesh, Bhutan and Nepal
24
Key efforts to establish TTFMM: foundation
25
Key events
Inception Workshop in Bangkok 2013
National Workshop in Dhulikhel Nepal 2014
National workshop in Phuentsholing Bhutan 2014
National Workshop in Dhaka Bangladesh 2014
26
Scope of BPA in TTFMM: Products
Import Processes
Export Processes
Bhutan
Bhutan
Bangladesh
Cardamom
Nepal
Third country
Bangladesh
Kitchen and table
wares of plastics
Nepal
Motor vehicles
Lentil
Fabrics
Ferro silicon
Third country
Wools
Woolen
carpet
Scope of BPA in TTFMM: Corridors
Corridor
Corridor 1 Kathmandu Kakarvitta-Panitanki-FulbariBanglabandha - Dhaka
Corridor 2 Thimpu Phuentsholing-JaigaonHasimara-ChangrabandhaBurimari - Dhaka
Corridor 4 - Kolkata –
Raxaul – Birgunj - Kathmandu
Corridor 5 Kolkata –
Jaigaon – Phuentsholing Thimpu
Countries
Linked
Nepal – India Bangladesh
Distance,
Transit
54 km
Products
Bhutan – India
- Bangladesh
115 km
Ban-Bhu: kitchen and
table wares of plastics
Bhu-Ban: cardamom
Nepal - India
1047 km
Bhutan - India
760 km
Import of wools
Export of woolen carpet
Export of ferro silicon
Import of motor vehicles
Nep-Ban: Lentil
Ban-Nep: Fabrics