Improving Customs Transit Systems
In the Islamic Countries
1
Executive Summary
The Study on Improving Customs Transit Systems in the Islamic Countries in the OIC Countries
is the result of a research-based consultancy for the Standing Committee for Economic and
Commercial Cooperation of the Organization of Islamic Cooperation (COMCEC). The objective of
the study is to document and analyze the state of implementation of Customs Transit Regimes
(CTR) in the OIC Member States (MS) to support the Member States’ efforts to deepen and
improve CTR.
Customs Transit by definition of the World Customs Organization (WCO) “means the Customs
procedure under which goods are transported under Customs control from one Customs office
to another.”
Whilst attempting to analyze through the survey as the many OIC Member States as possible, the
final analysis was limited due to their partial participation or lack of any response. The final
analysis was based on responses to the survey from6 OIC MS and information publicly available.
35 OIC member states are evaluated according to trade facilitation measures of the UN Global
Survey on Digital and Sustainable Trade Facilitation, each positioned at different stages on the
CTR implementation.
The average on the four transit measures is 41.17% fully, 35.36% partially, 4.54% planned, and
18.94% not implemented status. Transit Facilitation Agreements are ranging from 37.50%
having fully implemented, 40.63% partially, 0% planned, 21.88% at the not implemented level.
Cooperation between agencies and countries measures ranging from 43.75% having fully,
37.50% at a partially, 3.13% at planned, 15.63% at the not implemented level. Supporting pre-
arrival processing for transit facilitation measure ranging from 28.57% having fully, 34.29% at
a partially, 8.57% at planned, 28.57% at the not implemented level. Customs authorities limit
the physical inspection of transit goods and use of risk assessment measures ranging from
54.84% having fully, 29.03% at a partially, 6.45% at planned, 9.68% at the not implemented
level.
The transit has a huge impact on trade costs and time, especially for landlocked MS. The average
of the trade costs according to the UN ESCAP database for the OIC MS is 297.34%, and 23
Members States are below and inside mean value, while 17 MS have higher trade costs than the
mean value. For the costal OIC MS, the average trade costs are 282.57%, comparing to the
landlocked OIC MS, where the trade costs are 341.66% on average. Landlocked OIC MS have
near 60% higher trade costs comparing with the costal OIC MS.
OIC MS LPI score is slightly below the global average LPI score for all six dimensions, except
when compared with the best performing country (Germany). Landlocked countries have a
higher score when it comes to trading across the border. While the average time to import is