FACILITATING INTRA-OIC TRADE:
Improving the Efficiency of the Customs Procedures in the OIC Member States
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TPS-OIC (Trade Preferential System Among the Member States of the Organization of
Islamic Cooperation) is one of the most important projects of the COMCEC. TPS-OIC
is based on three agreements namely Framework Agreement, Protocol on Preferential
Tariff Scheme (PRETAS) and Rules of Origin. These agreements have very limited
provisions on customs procedures such as “removal of para tariffs” and “determination
of the customs value”. According to Article 6 of the PRETAS, participating states shall
remove the para-tariffs (border fees and charges except tariffs and indirect taxes) upon
entry force of the protocol (for LDCs within three years). Participating states shall also
not introduce new para-tariffs or increase the existing ones. Customs valuation is also
given special emphasis in Rules of Origin. According to Article 2/d of the Rules of
Origin, customs value means “the transaction value of imported goods, which is the
price actually paid or payable for the goods when sold for export to the country of
importation, including other leviable charges and adjustment”. According to the same
article, following methods will be used fo valuation if the actual price could not be
determined,:
 The transaction value of identical goods,
 The transaction value of similar goods,
 The deductive value method,
 The computed value method,
 The fall-back method.
There are also other regional groupings in which Member States are working together
with other countries for the modernization or harmonization of customs procedures in
Asia, Africa, Europe and Latin America. For example Uganda, together with Kenya and
Rwanda launched Single Customs Territory in Kigali, Rwanda on October 28th, 2013
with the participation of their Heads of States, which shows the strong will towards
increasing trade. The project aims at harmonizing customs procedures and facilitating
the movement of the cargo between these countries.
-Bilateral Cooperation
The OIC Member States are also enhancing bilateral cooperation in the area of customs
among each other and with the third countries. Experience shows that, this type of
cooperation may take different forms. For example in addition to signing mutual
assistance agreements or cooperation protocols, bilateral free trade agreements of some
of the Member States include detailed provisions on customs procedures.