FACILITATING INTRA-OIC TRADE:
Improving the Efficiency of the Customs Procedures in the OIC Member States
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 Customs clearance and technical control
 Ports and terminal handling
 Inland transportation and handling
In many countries, trade facilitation efforts are carried out in close cooperation with the
business community which helps the governments to identify the problematic trade
procedures. Trade facilitation concentrates on simplifying these problematic procedures
and reduces their costs.
Trade facilitation also aims at harmonizing the trade procedures. Different trade
procedures implemented by many countries increase the complexity and cost of
international trade. Relevant international conventions, recommendations and standards
have been developed in order to harmonize the international trade procedures.
1.2. I MPORTANCE OF TRADE FACILITATION
The firms engaging in international trade need to follow some procedures for realizing
their international trade transactions. In many cases, these procedures vary according to
the product subject to trade. Moreover, export and import of the same product have
different procedures to be followed in many cases. These procedures require some time
and have some costs.
Trade procedures vary amongst the countries as well. While some countries have
simplified their trade procedures over the years, some of them are still requiring the
companies to follow too many steps for completing their trade transactions. Grainger
(2007a) estimates the trade procedures targeting goods, the vehicles that move them or
their operators reach 60.
Trade facilitation aims at decreasing the number of documents, their cost and increase
the speed of such procedures. It reduces the transaction cost and complexity of
international trade and improves the trading environment in a country, while at the same
time enhancing government controls (UNECE 2012).
Who gains from trade facilitation?
Trade facilitation has many benefits for all the countries. It encourages not only the
imports but also exports and foreign direct investment (FDI) flows. In many countries,
export oriented firms are highly dependent on import of several inputs to be competitive
in their export markets. Similarly, trade procedures shall be simple and competitive for
attracting foreign direct investments.
The benefits of trade facilitation have been studied by various studies. For example,
Wilson et al. (2004) measured the relationship between trade facilitation and trade flows