Improving Transnational Transport Corridors
In the OIC Member Countries: Concepts and Cases
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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