Establishing Well Functioning National Trade Facilitation Bodies (NTFBs)
In the OIC Member States
5
These concepts are evident in the various definitions employed by relevant entities (including
international organizations), which are drawn in the following figure (i.e. Figure 1. Global Enabling
Trade Report 2014) of the World Economic Forum (WEF) and subsequent paragraphs.
In addition, the Swedish Trade Procedures Council (SWEPRO) acknowledges that: "Trade facilitation
is a concept directed towards reducing the complexity and cost of the trade transaction process and
ensuring that all these activities take place in an efficient, transparent and predictable manner. Trade
facilitation comprises the whole trade chain from exporter to importer, including transportation and
payment, with emphasis on the border-crossing and the agencies involved there".1
Moreover, the United Nations Centre for Trade Facilitation and Electronic Business (UNCEFACT)
describes trade facilitation as "the simplification, standardization and harmonization of procedures
and associated information flows required to move goods from seller to buyer and to make
payment".2
The above definitions set out the elements that make up the concept of trade facilitation guiding the
work of each of these institutions. The effect of trade facilitation is what matters most for each
stakeholder – reducing costs. The following part of this study explains the costs resulting from the
absence of trade facilitation measures and expenditures required for the implementation of such
measures.
1 SWEPRO
2 UNCEFACT: United Nations Centre for Trade Facilitation and Electronic Business.