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Improving Transnational Transport Corridors

In the OIC Member Countries: Concepts and Cases

173

Trade Facilitation Indicators

ESCWA initiated work on a Single Window (SW) for Trade Facilitation in 2010. An assessment

was carried out on the status of the SW development in ESCWA countries. Nine factors

required for the establishment of a Single Window in member countries were identified,

namely: (a) a one-stop shop; (b) a trade promotion portal; (c) electronic customs declaration

(EDI); (d) a government formalities single window; (e) an integrated formalities single

window; (f) port shipping services; (g) a port community network; (h) a port/logistics single

window; and (i) a national single window.

Inefficient trade facilitation processes and procedures and, to a lesser extent, underdeveloped

transport infrastructure constrain the ability of Mashreq North-South Corridor countries to

trade more with each other, with the region, and with the world. According to the World

Bank’s Regional Cross-Border Trade Facilitation and Infrastructure Study, these impediments

impose greater trade losses than formal trade tariffs or quota restrictions. While many of the

constraints are technical in nature, others such as the lack of infrastructure require investment

in new facilities and carefully selected locations.

Border crossing

Coordination between border agencies within countries is still in its early stages and behind

that of competing countries. Even the idea of “one-stop border agencies” is still largely limited

to concentration of customs procedures in a single location rather than a similar concentration

of all border agencies in the same location.

Despite a simplification of customs procedures and reduced clearance times, the efficiency of

the Mashreq North-South Corridor cross border procedures is falling behind those of its

trading partners and neighbors. This is due to a slow and ineffective introduction of risk

management, little effort to monitor the performance of customs at the border, and insufficient

improvements of facilities at the border crossings. Rather than reducing inspections and

increasing the proportion of cargoes cleared on submission of documents, the approach of

customs is often to use risk management as an additional level of control. Many of the Mashreq

North-South Corridor countries face significant challenges, due to extensive misrepresentation

of cargo type and value by traders and customs brokers and widespread corruption. There has

been limited effort to break out of the heavy handed and largely unsuccessful mechanisms of

enforcement, through physical inspection. Only minimal efforts have been initiated to

introduce risk profiles and collaboration with large shippers, such as the Authorized Economic

Operators program.

Common standards for favored trader status

Many developed countries (including the EU and the US) have established favored trader

regimes, through which goods of selected traders are not subject to the same level of

inspections as those of other traders. Several Mashreq North-South Corridor countries have

established “Golden Lists” of traders with similar privileges. However, with the exception of