Improving Customs Transit Systems
In the Islamic Countries
31
Customs Business Sector Transporter
National
Economy
The region as a
Whole
Efficient CTR
guarantee system
Reduced time to
import goods
Reduce transport
time
Increase
national
export
Increase regional
export
Reduced
paperwork
Reduced
paperwork and
guarantee costs
Reduced
paperwork and
guarantee costs
Regional
economic
integration
Improved global
integration of the
region
Standardized and
simplified
documents
Reduced costs,
better
compliance,
fewer disputes
Reduced costs,
better compliance,
fewer disputes
Higher
employment
Higher
employment
Mutual
cooperation with
other CAs
Enhanced
predictability and
efficiency
Enhanced
predictability and
efficiency
Higher foreign
investment
Higher foreign
investment
The decrease in
smuggling of
goods in transit
Partnership with
CA and OGAs
Partnership with
CA and OGAs
Decrease of
national grey
economy
Decrease of
regional grey
economy
Reduced
opportunities for
bribery
Reduced
corruption
Reduced corruption
Better
productivity
Fewer customs
physical
inspections
Fewer customs
physical
inspections
Faster transport times
Source: Author own compilation
Implementation of an efficient CTR is a part of many facilitation agreements, conventions, and
recommendations. According to the WTO 27, the full implementation of Trade Facilitation
Agreement could reduce trade costs by an average of 14.3% and boost global trade by up to 1
trillion USD dollars per year, with the biggest gains in the poorest countries. For example, the
University of International Business and Economics (UIBE) from Beijing, China in 2017
conducted a study about TIR implementation and the facilitation of unimpeded trade for China,
offering compelling evidence of the benefits of TIR to establish unimpeded trade for China. The
report shows the benefits of TIR implementation, which could reduce transit time by as much
as 80 percent and increase total exports by up to USD 7.86 billion 28. China joined the TIR
Convention in 2018, and goods originated from China are going global with higher efficiency,
while foreign imports also will be faster and safer.
27
28