FACILITATING INTRA-OIC TRADE:
Improving the Efficiency of the Customs Procedures in the OIC Member States
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in acceding to the Convention and implementing its standards. These obstacles include
inadequate financing, underdeveloped legal environment, limited institutional capacity,
lack of skilled human resources etc.
The OIC, as a group, is composed of 36 Developing Countries and 21 LDCs. These
countries are located in different continents from Asia to Latin America. Size of the
population, land area and economy also vary among the Member States. Despite these
differences, a high trade transaction cost is one of the common challenges faced by
many Member States. This situation, together with the other factors, lead to less
international trade in these countries.
This study examined the current status of customs procedures in the OIC Member States
in the light of international standards especially in the framework of RKC. The study
found that, in parallel with the global trends, most of the Member States have initiated
customs reforms during the last decade. Among these, some of them have improved the
customs procedures and reduced cost and time required for cargo clearance both for
exports and imports. They have acceded to the international conventions, initiated
customs reforms and started using modern techniques and technology in clearance
process. On the other hand, some of the Member States could not initiate necessary
reforms or implement these reforms due to various reasons which include inadequate
financial resources, limited coordination and cooperation with the stakeholders, lack of
political ownership, legal framework, institutional capacity and skilled labor. In order to
increase their international trade, these countries need to improve the efficiency of their
customs as soon as possible.
In order to solve the aforementioned obstacles, the Member States which did not do so,
need to accede to the relevant international conventions and upgrade the laws to be
coherent with international standards. Coordination among the various government
agencies and private sector shall be increased and governments shall allocate more
financial resources for implementing modern procedures.
The study is comprised of three chapters followed by a conclusion and
recommendations section.
The first chapter focuses on the concept of trade facilitation. It firstly presents the
various definitions developed by the relevant international institutions. The chapter
continues with highlighting the importance of trade facilitation. Lastly it identifies the
challenges faced by the countries in implementing trade facilitation measures and
suggests possible ways for meeting these challenges.
The second chapter examines the ways and means of increasing the efficiency of the
customs procedures. Making reference to the relevant international conventions and the
guides prepared by the relevant international institutions, the Chapter identifies the