Establishing Well Functioning National Trade Facilitation Bodies (NTFBs)
In the OIC Member States
19
1.3. Historical Background of NTFBs
As indicated previously, trade facilitation measures aim to bring simplification, standardization,
harmonization and transparency in order to facilitate and expedite the free flow of trade and
release/clearance of goods. The concept of establishing bodies charged with trade facilitation
objectives has existed for decades and appears to be a direct response to the internationalization of
markets. Such bodies have been established and developed in an ad hoc manner depending on, and
as a response to, particular countries’ circumstances. Sometimes these bodies have been established
in the context of national trade facilitation projects and other times in the context of regional trade
facilitation projects.
Of the international initiatives that address trade facilitation, the UN stands out as the entity that has
long encouraged its members to establish “National Trade Facilitation Bodies”. The creation of PRO22
committees dates back at least to the UNECE's Recommendation No. 4 of 1974.23
The international landscape of organizations that have been engaged in NTFB-related work is broad
and includes UNCTAD and the World Bank, which inter alia provide technical assistance for the
establishment of NTTFCs.
1.3.1. An evolving concept of National Trade Facilitation Bodies (NTFBs)
It has been widely accepted that trade facilitation aims to: simplify, harmonize and standardize trade
transactions so that trading is easier, faster and less costly.24
Over time, as the landscape for trading changes, the role(s) and purpose(s) of NTFBs have evolved in
response to, and in order to speak to, what is necessary to achieve the foregoing aims and objectives.
Similarly, as illustrated by the following sections of this paper, the focus of NTFB-related work
undertaken by various entities appears to have responded to this changing landscape and the
accompanying changing needs – as illustrated, for example, in the section below that highlights the
evolution of Recommendation No. 4 over the years (e.g., to address transport and so forth).
Moreover, the number of international organizations directly engaged in trade facilitation and NTFB
work has increased over time – for example, to the point where trade facilitation is now covered by
WTO rules.
1.3.2. International Efforts for establishing NTFBs
Among the international efforts relating to the establishment of NTFBs include work by UNECE
(which has set out best practices for countries to follow); work by UNCTAD (which maintains a
repository with country-specific information).
1.3.2.1. United Nations Recommendation No. 4 over the years
UN Recommendation No. 4 has evolved over time – since its adoption initially in 1974 – due to the
changing trading environment including new needs in logistic operations. UNCEFACT has been
charged with the updating of Recommendation No. 4.
22 PRO stands for "procedures".
23 UNCTAD, National Trade Facilitation Bodies in the World, Geneva, 2014, p. 23.
24 United Nations, UNECE, National Trade Facilitation Bodies, Geneva, October 2001, ECE/Trade/242, p. 3-4.