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Facilitating Trade:

Improving Customs Risk Management Systems

In the OIC Member States

5

Figure 1: Global supply chain and the role of Customs Administrations

Author’s compilation

“The United Nations Conference on Trade and Development (UNCTAD) estimates that the

average customs transaction involves 20-30 different parties, 40 documents, 200 data elements

(30 of which are repeated at least 30 times) and the re-keying of 60-70% of all data at least once.

With the lowering of tariffs across the globe, the cost of complying with customs formalities has

been reported to exceed in many instances the cost of duties to be paid. In the modern business

environment of just-in-time production and delivery, traders need a fast and predictable release

of goods.

3

” It is clear that the OIC MS average is below the average from theWorld for trade costs

and time regarding border and documentary compliance (see section

2

- Conceptual

Framework).

1.1

The Methodology of the Study

The methodology used in this Study is conducted in following stages:

Desk research

was conducted a literature review, including a review of the relevant

literature as well as the works, documents, and experience of relevant international and

regional organizations. The objectives of the conducted desk research were to review

trends in CRM experiences globally, locate and analyze CRM systems in three non-OIC

countries to develop three case studies related to their CRM and develop lessons learned

and critical success factors/challenges arising from the implementation of CRM in

different countries.

Data collection and systematization

as the second stage of the methodology covered

creation and dissemination of the survey to the OIC member states, but also collection,

systematization and analyzing of the statistical data from internationally available

databases as World Economic Forum’s Enabling Trade Index (ETI); Organization for

Economic Co-operation and Development’s (OECD) Trade Facilitation Indicators (TFIs);

World Bank

Logistics performance index

. The objective of the data collection and

3

9th WTO Ministerial Conference, Bali, 2013, Briefing note: Trade facilitation — Cutting “red tape” at the border,

https://www.wto.org/english/thewto_e/minist_e/mc9_e/brief_tradfa_e.htm

(last check: September, 2017)