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FACILITATING INTRA-OIC TRADE:

Improving the Efficiency of the Customs Procedures in the OIC Member States

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Member States give utmost importance to using ICT in customs services. Most of them

have installed ASYCUDA or using their own systems for improving the clearance

process. Moreover, the number of countries using x-ray scanners for physical

investigation increases every year. Importance of internet technology is also

acknowledged by the Customs Administrations of the Member States. Most of them

have established their own internet sites and trying to benefit from its facilities.

On the other hand, modern techniques such as advance rulings, post clearance audit, risk

management, deferred payments and authorized economic operators programs are not

implemented effectively by many Member States. The problems faced in implementing

these procedures are mostly common.

The laws and regulations governing the customs procedures are below the international

standards in many Member States. Some of the Member States did not accede to the

relevant international conventions. For example, only 25 Member States have acceded

to the RKC. The number of acceding countries to other relevant conventions is less. On

the other hand, some of the countries, despite acceding to some of the relevant

international conventions are facing difficulties in fulfilling their obligations.

Publication of up to date relevant information is an important tool of increasing

transparency and predictability. The information publicized not only reduces the

customs clearance process but also increases awareness on the potential traders what to

expect at customs on future trade. Usage of internet technology in publishing the

customs related information increased dramatically by the developed and some

developing countries. However, many Member States do not provide such information

through internet even in local language. Few Member States are using their websites

effectively publish relevant laws, tariffs, procedures, working hours etc. Other types of

ICT could not be used effectively in some of the Member States for example for

electronic submission of declarations, processing, payment etc. Use of single window,

x-ray scanners are expanding among the Member States in recent years.

Appeal procedures, which is an important factor for making the customs administrations

transparent is recognized by the Member States. However, the procedures in some of

the Member States are not compatible with international standards such as RKC and the

new WTO Trade Facilitation Agreement.

Advanced ruling is an instrument for preventing possible delays in clearance process

and a good reference for the traders in estimating their costs. However, it is

implemented by only few Member States.

The rate of physical inspections on the cargo decreased with the use of risk management

techniques in many Member States. In some Member States, the risk management needs

to be improved because the cargo subject to physical inspection is still high. On the

other hand, the number of Member States applying the Authorized Economic Operators