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Improving Customs Transit Systems

In the Islamic Countries

4

The Objective and Methodology of the Study

The objectives of the study are to improve awareness of the CTR and benefits of trade

facilitation:

Improve awareness on the importance of efficient custom transit regimes;

Share information on the good practices of well-functioning custom transit

regimes globally;

Explore comparatively the state of the play in the OIC countries in this regard;

Provide policy options that may be useful for policymakers to consider in their

efforts to develop/improve efficient customs transit regimes.

CTR has an important role to play for simplifying trade formalities. This study provides a

comprehensive view of how OIC MSs currently implement CTR. It also reflects how customs and

other agencies involved in the export and CTR procedures can strengthen their efforts to ensure

successful operations and sustainability and leverage a trade facilitation benefit.

The experts propose using a cross-country assessment framework and a pragmatic approach to

policy options development to deliver on these objectives. Also, desk research on best practices

and the evolution of the conceptual framework of CTR will be undertaken and summarized to

improve the understanding of CTR concept and aspects.

The cross-country assessment framework is designed to compile and analyses information

collected from primary and secondary information sources. It is a structured approach to

describe and compare OIC MS's efforts and the way of implementation of Customs Transit

Systems. The pragmatic policy options development approach is designed to derive a set of

policy recommendations that are specific to the OIC MSs situations.

Cross-country assessment framework

- Many Customs Administrations worldwide have

implemented modern CTR with the aim to facilitate international trade and to simplify the

transit procedures and at the same time to lower the costs and transit time to the Economic

operators.

The way how the Customs Administrations adopted the CTR differs across countries and

numerous different Customs Declaration Processing Systems and supportive tools and solutions

have emerged. The exchange of data and information among Customs Administration(s) related

to transit is an important aspect of simplifying, speed-up, and lower the risk focusing on the

high-risk goods and means of transport.

Early attempts have been limited to the paper-based exchange of information or like in case of

EU-EFTA at the very early stage by faxing among the Customs Authorities. The risk management

functionalities of the Customs Declaration Processing Systems together with the Guarantee

Management System and Authorization Management System are managing the transit