FACILITATING INTRA-OIC TRADE:
Improving the Efficiency of the Customs Procedures in the OIC Member States
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2.2.3. Implementing Modernized Procedures and Formalities,
Modern customs procedures aim at simplifying the formalities and reducing their costs.
There are several measures need to be taken for reaching modernized procedures and
formalities such as disciplining fees and charges, implementing pre-arrival processing,
risk management, post-clearance audit and economic operators. Implementing such
measures increase the efficiency of customs procedures and save time and cost in
customs clearance process.
-Fees and Charges
The amount of fees and charges imposed to import and export transactions vary among
the countries (see Table 2). Some developing countries and LDCs are collecting higher
fees and charges on exports, imports and transit because they are considered as an
important income for the country. However this situation has negative impact on their
external trade.
The WTO and WCO have provisions on how to determine the amount of these fees and
charges. For example, according to Article 8 of GATT 1994, “all fees and charges of
whatever character (other than import and export duties and other than taxes within the
purview of Article III) imposed by contracting parties on or in connection with
importation or exportation shall be limited in amount to the approximate cost of services
rendered and shall not represent an indirect protection to domestic products or a taxation
of imports or exports for fiscal purposes”. This provision is also supported by the RKC
which underlines that fees and charges shall be limited to the approximate cost of the
services rendered. GATT Article 8 also states that, provisions of this Article shall extend
to fees, charges, formalities and requirements imposed by governmental authorities in
connection with importation and exportation, including those relating to:
(a) Consular transactions, such as consular invoices and certificates;
(b) Quantitative restrictions;
(c) Licensing;
(d) Exchange control;
(e) Statistical services;
(f) Documents, documentation and certification;
(g) Analysis and inspection; and
(h) Quarantine, sanitation and fumigation.
Providing the opportunity for electronic payment of these fees and charges as well as
duties and taxes is an important tool for time and cost saving.
-Pre-arrival Processing
The main objective of pre-arrival processing is to expedite the clearance procedures in
importing country. The information required by the Customs Administration is presented