FACILITATING INTRA-OIC TRADE:
Improving the Efficiency of the Customs Procedures in the OIC Member States
17
Trade facilitation is also one of the focus areas of most of the regional economic
groupings. For example APEC’s Trade Facilitation Plan (2002-2006) aimed at
achieving a reduction in trade transaction costs by 5 percent by 2006. Second Action
Plan (2007-2010) aimed at further reduction of 5 percent in transaction costs. In order to
reach this target four areas have been determined namely, Customs Procedures,
Business Mobility, Standards and Conformance and Electronic Commerce.
1.5. THE CHALLENGES IN FACILITATING TRADE
Despite recognizing the importance of trade facilitation for both increasing trade and
economic development, some of the developing countries and the LDCs face some
challenges in implementing the necessary measures. These challenges include the
following:
Regulatory Issues
The trade procedures and customs formalities are based on legislations including laws
and decrees. These legislations need to be replaced or amended in many cases for
implementing the new measures. Preparation of regulations usually take long time in
developing countries due to involvement of many agencies in drafting the regulations
including customs, Ministry of Foreign Trade, Ministry of Finance, Ministry of
Agriculture, Ministry of Internal Affairs etc.
Changing the existing regulations or acceding to the relevant international conventions
may be difficult due to conflict of interests as well. Sources of conflict may be found
between: government and business stakeholders; local, national and international
interests; government departments (e.g. customs and veterinary inspectors); policy
priorities; industries (e.g. freight forwarders and transport operators); countries (e.g.
who have different legacy arrangements or IT system suppliers); and between liberal
and protectionist trade policy tendencies (Grainger 2007 and Grainger 2008). Therefore,
the government may face resistance from various interest groups.
Another problem faced by these countries is the inadequate level of expertise in drafting
the necessary legislations. Because, such laws, decrees and regulations shall be prepared
in a professional manner which will be in parallel with international standards.
Institutional Issues
Relevant institutions in many countries are not capable of carrying out the necessary
studies for trade facilitation or implement the provisions of the measures due to their
organizational structures, irrelevancy with their mandate or limited human resources. To
implement the trade facilitation measures in these cases will require establishment of
new institutions or units (such as a post-clearance team, a risk management team, or a
central enquiry point (Moise 2004)), restructuring the existing agencies or deployment