TRADE FACILITATION AND BORDER AGENCY
COOPERATION: CASE OF TURKEY
Ankara, 20161
OUTLINE
2
1- INTERNATIONAL LEGAL INSTRUMENTS
4
INTERNATIONAL LEGAL INSTRUMENTS
• WCO SAFE Framework of Standards (in 2005, Turkey provided the letter of intent to the Secretariat)
• International Convention on the Simplification and Harmonization of Customs Procedures(Kyoto Convention) as amended
• TIR Convention (signed in 1975)
• Customs Convention on the ATA Carnet for the Temporary Admission of Goods (ATA Convention)
• International Convention on Mutual Administrative Assistance for the Prevention, Investigation and Repression ofCustoms Offences (Nairobi Convention)
• WTO Trade Facilitation Agreement (on 16 March 2016, we presented the instrument of acceptance to WTO Secretariat)
• International Convention on the Harmonized Commodity Description and Coding System
• United Nations European Economic Commission (UNECE) 1982 International Convention on the Harmonization ofFrontier Controls of Goods (in force in Turkey in 2005)
• EU Customs Legislation (648/2005)
• Conventions on the Common Transit procedure and on the simplification of formalities in trade in goods (in force in
Turkey in 1 December 2012) (since then, New Computerised Transit System has been used)
5
INTERNATIONAL LEGAL INSTRUMENTS
BILATERAL AND MULTILATERAL AGREEMENTS
«Agreements on Co-Operation and Mutual Assistance in Customs Matters» with OIC Countries:
Afghanistan, Pakistan, Kyrgyzstan, Bangladesh, Algeria, Morocco, Libya, Tunus, Iran, Saudi Arabia, Albania, Palestine, Kazakhstan, Kuwait, and Turkmenistan
NOT WITH Malaysia and Indonesia
• Customs Administrations of Turkey, Turkmenistan, Azerbaijan project to sign aMemorandum of Understanding to Establish a Joint Consultative Committee onCustoms Procedures on Border Crossing Points.
6
• e-TIR Pilot Project with Iran
Aim: computerization of TIR & to reduce reliance on paper carnets
1st Pilot Project: ever implemented in the scope of Electronic TIR Customs Transit System (eTIR)
1st phase completed
Testing C2B data
Second phase (as of 02.09.2016): planning to test multiple loading-unloading transports, partialtransports and transit transports
2- BAC ACTIVITIES ACROSS OIC REGIONS AND COUNTRIES
7
• Islamabad-Tehran-Istanbul (ITI) Coridor
to contribute to the sustainable development and poverty reduction through enhancement of transittrade among the enroute Member States
Using TIR along the Corridor
8th Ministerial Meeting on Transport and Communications of Economic Cooperation Organization (ECO)(Ashgabat, 28-29 June 2011)
Organising an open-ended High-Level Working Group (HLWG)
Thanks to Pakistan becoming a Contracting Party to TIR Convention on 21 January 2016,Much easier for ITI Project to serve as a trade facilitation instrument among all the respective enroute
countries.
2- BAC ACTIVITIES ACROSS OIC REGIONS AND COUNTRIES
8
• Silk Road Customs Initiative and Caravanserai Project
to revitalize ancient Silk Road, turn it into a preferable route
to increase the trade and transportation volume between Europe and China and among the countries onthis route through harmonization, facilitation and acceleration of border crossing procedures amongSilk Road Countries.
Launched in 2008
Six Forums organised until now;
7th Forum will be hosted by Kazakhistan in November
The “Caravanserai Project” launched in 2009
implemented as a pilot project in 2012
2- BAC ACTIVITIES ACROSS OIC REGIONS AND COUNTRIES
9
• Bilateral Cooperation: Iran, Kyrgyzstan, Kazakhstan, Afganistan and Iraq
Iran, Kazakhstan & Kyrgyzstanmainly on data exchange, general customs procedures and intelligence and customs control to fight against smuggling
Afganistan on training matters with the Afghan Customs, especially about the implementation of TIR system and general Customs procedures and Consumer Protection in Turkey
Iraq local authorities of both countries in Habur - İbrahim Khalil Border Crossing Point realize regular meeting to discuss problems and find solutions at the local level if possible.
2- BAC ACTIVITIES ACROSS OIC REGIONS AND COUNTRIES
10
3- WTO TRADE FACILITATION AGREEMENTTFA Article 8: Border Agency Cooperation
1- ‘…authorities and agencies responsible for border controls and procedures cooperate with one another and coordinate their activities in order to facilitate trade.’
2- ‘…cooperate on mutually agreed terms with other Members with whom it shares a common border with a view to coordinating procedures at border crossings to facilitate cross-border trade.
Such cooperation and coordination may include, alignment of working days and hours, alignment of procedures and formalities, development and sharing of common facilities, joint controls and establishment of one stop border post control.’
TFA Article 10: Formalities Connected with Importation, Exportation and Transit
• Single Window
• Common Border Procedures and Uniform Documentation Requirements
TFA Article 12: Customs Cooperation
• Exchange of Information
• Verification
11
MEMBERS of both OIC and WTO Non - WTO Members
Hashemite Kingdom of Jordan* Sultanate of Oman* Republic of Djibouti Republic of Azerbaijan
Islamic Republic of Afghanistan Republic of Gabon* Kingdom of Saudi Arabia* Republic of Uzbekistan
Republic of Albania* The Islamic Republic of The
Gambia
Republic of Senegal* Islamic Republic of Iran
State of The United Arab
Emirates*
Republic of Guyana* Republic of Suriname* Turkmenistan
Republic of Indonesia* Republic of Guinea Republic of Sierra Leone People’s Democratic Republic of
Algeria
Republic of Uganda* Republic of Guinea-Bissau Islamic Republic of Mauritania Republic of The Sudan
Islamic Republic of Pakistan* Kyrgyz Republic* Republic of Mozambique Syrian Arab Republic
Kingdom of Bahrain* State of Qatar* Republic of Niger Republic of Somalia
Brunei-Darussalam* Republic of Kazakhstan* Federal Republic of Nigeria* Republic of Iraq
People’s Republic of Bangladesh Republic of Cameroon* Republic of Yemen State of Palestine
Republic of Benin Republic of Cote D'ivoire* Republic of Togo Union of The Comoros
Burkina-Faso State of Kuwait* Republic of Tunisia* Republic of Lebanon
Republic of Tajikistan* Republic of Maldives Arab Republic of Egypt* Libya
Republic of Turkey* Republic of Mali Kingdom of Morocco*
Republic of Chad Malaysia*
44 of 57 OIC members are also a member to the WTO
WORLD TRADE ORGANIZATION
TRADE FACILITATION AGREEMENT
12
15 of 44 OIC Members ratified the ATF.
Malaysia (26 May 2015)
Nigeria (6 August 2015)
Togo (1 October 2015)
Pakistan (27 October 2015)
Guyana (30 November 2015)
Brunei (17 December 2015)
Mali (20 January 2016)
Turkey (16 March 2016)
United Arab Emirates (18 April 2016)
Albania (10 May 2016)
Kazakhstan (26 May 2016)
The Kingdom of Saudi Arabia (28 July 2016)
Senegal (30 August 2016)
The Kingdom of Bahrain (23 September 2016)
Bangladesh (27 September 2016)
27 of those 44 OIC members notified Category A commitments
Hashemite Kingdom of Jordan Sultanate of Oman Kingdom of Saudi Arabia
Republic of Albania Republic of Gabon Republic of Senegal
State of The United Arab Emirates Republic of Guyana Republic of Suriname
Republic of Indonesia Kyrgyz Republic Federal Republic of Nigeria
Republic of Uganda State of Qatar Republic of Tunisia
Islamic Republic of Pakistan Republic of Kazakhstan Arab Republic of Egypt
Kingdom of Bahrain Republic of Cameroon Kingdom of Morocco
Brunei-Darussalam Republic of Cote D'ivoire Malaysia
Republic of Tajikistan State of Kuwait Republic of Turkey
ANALYSIS OF CATEGORIZATION OF RELATED ARTICLES
Only 13 of 27 countries notified Article 8 – Border Agency Cooperation under Category A.
Albania, United Arab Emirates, Bahrain, Brunei, Guyana (8.1 only), Jordan, Kazakhstan, Morocco, Malaysia, Qatar, Saudi Arabia, Tajikistan (8.1 only), Turkey
Only 4 of them notified Article 10.4 – Single Window under Category A.
Malaysia, Qatar, Senegal, Turkey
Only 13 of them notified Article 12 – Customs Cooperation under Category A.
Albania, United Arab Emirates, Bahrain, Brunei, Guyana, Jordan, Morocco, Malaysia, Qatar, Saudi Arabia, Senegal, Tunisia, Turkey
Only 4 of them notified Article 7.7 – AEO under Category A. Morocco, Malaysia, Saudi Arabia, Turkey
21 of them notified Article 10.7 - Common Border Procedures and Uniform Documentation Requirementsunder Category A.
Albania, UAE, Brunei, Côte D‘Ivoire, Egypt, Guyana (paragraphs 1 and 2 (a)-(c) only), Jordan, Kazakhstan, Kuwait, Morocco, Malaysia, Nigeria, Oman, Pakistan (paragraph 1), Qatar, Saudi Arabia, Senegal, Suriname, Tajikistan, Tunisia, Turkey,
13
NATIONAL COMMITTEE ON TRADE FACILITATION
WTO TRADE FACILITATION AGREEMENTArt. 23/2
DRAFT CIRCULAR OF PRIME MINISTRY ESTABLISHING
BOARD OF TRADE FACILITATION IN TURKEY
Objectives
Overseeing implementation of Trade Facilitation Agreement in the Turkish Customs Area,
Coordinating implementation procedures among related government agencies,
Being a platform for public-private sector partnership in the area of Trade Facilitation
14
BOARD OF TRADE FACILITATION OF REPUBLIC OF TURKEY
Members of the Board
Co-Chairs
Ministry of Customs and Trade
Ministry of Economy
Members
Ministry of Science, Industry and Technology Ministry of Environment and Urbanization Ministry of Foreign Affairs Ministry of Economy Ministry of Food, Agriculture and Livestock Ministry of Customs and Trade Ministry of Development Ministry of Health Ministry of Transport, Maritime Affairs and
Communications
Turkish Standards Institution Foreign Economic Relations Board Small and Medium Sized Industry Development Organization Turkish Exporters Assembly The Union of Chambers and Commodity Exchanges of Turkey International Transporters’ Association Association of International Forwarding and Logistics Service
Providers The Banks Association of Turkey Associations of Customs Consultancy
Structure of the Board
15
BOARD OF TRADE FACILITATION OF REPUBLIC OF TURKEY
Board of Trade Facilitation
• Tasked with agency coordination and establishing a trade facilitation strategy.
Technical Committee• Supporting the technical work being done within Board.
Lojistic and technical support
Secretariat
(DG of European Union andExternal Relations)
How Board will help CBM Activities?
A Platform for gathering all stakeholders responsible for border management activities regarding trade,
Issuing recommendations for all areas and activities within trade facilitation,
Executing technical work in the problematic areas within border crossing and customs procedures by including all government agencies and private sector associations.
16
BOARD OF TRADE FACILITATION OF REPUBLIC OF TURKEY
17
The objective of BAC system to facilitate trade and the clearance of travelers at thesame time ensuring secure borders
Therefore, BAC’s main objective reducing the number of agencies at the border.
BAC;
can provide substantial benefits to both border agencies and the private sector
by streamlining and harmonizing procedures, border agencies can substantially optimizethe use of their resources and manage the border effectively and efficiently
Fewer interventions equal less time spent at the border which equates into cheapertransport costs
International standards and conventions regarding Border Agency Cooperation should be taken intoaccount as references for improving domestic legislation.
A comprehensive Strategy and Action Plan should be developed-updated taking the needs of tradingcommunity into account.
4- CONCLUSION AND THE WAY FORWARD
THANK YOU
Ankara, 201618
Ms. Nagehan ÖZKAN TURUNÇ, Assistant EU Expert
Mr. Hakkı GÜRKAN, Assistant EU Expert
CONTACT:Dumlupınar Bulvarı No:151 Eskişehir Yolu 9. Km.06530 /ANKARA Phone: 0312 449 27 30Fax: 0312 449 28 82