Improving the Border Agency Cooperation
Among the OIC Member States for Facilitating Trade
106
5. BAC RECOMMENDATIONS AND ROADMAP FOR THE OIC 57
Promoting cross-border economic activity is usually in the core of those regional integration
initiatives where trade facilitation plays a key role. Facilitating the free flow of goods (and
people) and the expedited processing of shipments is given high priority that can be achieved
through a coordinated and collaborative approach between border agencies. BAC becomes a
fundamental component that is often strengthened by simplifying, harmonizing and
standardizing customs procedures in order to achieve a high degree of trade facilitation - all in
the pursuit of promoting economic prosperity in the region. Achieving political integration and
confronting security challenges may be other goals of regional partnership initiatives. BAC may
manifest itself in various forms such as the provision of technical assistance; sharing of best
practices; participating in international forums; sharing of equipment and human resources;
and the mutual exchange of information to combat smuggling, fraud and other customs
infringements.
World Bank’s Logistics Performance Index (LPI) data shows that logistics professionals are
often more satisfied with customs administrations than with other border agencies. In fact,
according to McLinden (2012), customs are responsible for “no more than one-third of
regulatory delays” at the border. So, even if customs procedures are becoming increasingly
harmonized, many companies face delays and complex procedures at the borders due to other
border control agencies.190 Mounting evidence also shows that delays at the borders are
strongly associated with the performance of the slowest border agency.191 Because cargo
remains stuck at the border as long as all competent border control agencies have released
goods, benefits of fast customs clearance are lost if, for example, health authorities delay their
controls and withhold the release decision.
There are many ways to advance Border Agency Cooperation. Some of the ways, however, are
more suitable for many OIC member countries to pursue trade facilitation and economic
integration. This chapter presents a six-step roadmap towards further BAC from the
perspective of the 57 OIC member states. This roadmap builds on and summarizes the
research and analysis of the earlier chapters of this report.
Step 1. The first step in any border agency cooperation initiative is to identify and analyze
factors that currently slow down the cross-border flow of goods or drive additional costs for
supply chain operators and governmental agencies. It is important to understand where and
why these bottlenecks and extra costs exist in the cross-border operations. The first step can
be best achieved by addressing the following points:
 Identify the improvement potential both for international BAC and for national BAC;
 Analyze the identified improvement potential both from the government agency
perspective as well as from the perspective of companies involved in the cross-border
operations;
 Prioritize identified improvement solutions in a follow-up implementation plan;
 Establish a national trade facilitation body that engages both government agencies and
private sector operators in a constructive dialogue (e.g. case Malaysia); and
 Ensure necessary secretary services to support smooth decision-making process
within the context of the national trade facilitation body.
190 World Bank LPI, 2012 accessed 20 August 2016)
191 McLinden 2012