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Development as Gateways to Global Markets for Mongolia & the People’s Republic of China Dissemination Workshop, Puma Hotel December 13, 2012 Ulaanbaatar, Mongolia G-0204 MON Southeast Gobi Urban & Border Town Development Project Cross Border Institution Development Program for MON-PRC Regional Cooperation Robert L. Wallack, Trade Logistics & Border Development, United States of America Implementation of Cross Border Management Organizations: Zamyn-Uud, Dornogobi-Erlian, Inner Mongolia Autonomous Region Gashin Sukhait, Omnigobi-Ganqimaodao, Inner Mongolia Aut. Region Shivee Huren, Omnigobi-Ceke, Inner Mongolia Autonomous Region
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Page 1: Harmonizing Border Port Development as Gateways to Global Markets for Mongolia & the People’s Republic of China Dissemination Workshop, Puma Hotel December.

Harmonizing Border Port Development as Gateways to Global

Markets for Mongolia & the People’s Republic of

China

Dissemination Workshop, Puma HotelDecember 13, 2012 Ulaanbaatar, Mongolia

G-0204 MON Southeast Gobi Urban & Border Town Development ProjectCross Border Institution Development Program for MON-PRC Regional CooperationRobert L. Wallack, Trade Logistics & Border Development, United States of AmericaOdnoo L., National Consultant, MongoliaAECOM, U.S.A.

Implementation of Cross Border Management Organizations:

Zamyn-Uud, Dornogobi-Erlian, Inner Mongolia Autonomous RegionGashin Sukhait, Omnigobi-Ganqimaodao, Inner Mongolia Aut. RegionShivee Huren, Omnigobi-Ceke, Inner Mongolia Autonomous Region

Page 2: Harmonizing Border Port Development as Gateways to Global Markets for Mongolia & the People’s Republic of China Dissemination Workshop, Puma Hotel December.

ZAMYN-UUD

Page 3: Harmonizing Border Port Development as Gateways to Global Markets for Mongolia & the People’s Republic of China Dissemination Workshop, Puma Hotel December.

Actionable Statements “Zamyn-Uud is for imported machines and spare parts…

delays are frequent…improved processes would greatly assist as would access to bonded yards & covered storage & would enable imports destined for Gobi region to be stored in ZU.”---Multinational Importer

“At the beginning it was difficult with the border agencies…but we had the right people and regular meetings and the agencies and businesses saw that they benefitted…”---International Best Practice, N. America

“…ruled by the daughters of Genghis Khan, the Mongols created a new world system based on a faster flow of goods and information than had been previously practical.”---Jack Weatherford

Page 4: Harmonizing Border Port Development as Gateways to Global Markets for Mongolia & the People’s Republic of China Dissemination Workshop, Puma Hotel December.

Results of Cooperation

New Roads in Zamyn Uud North American Bison

Page 5: Harmonizing Border Port Development as Gateways to Global Markets for Mongolia & the People’s Republic of China Dissemination Workshop, Puma Hotel December.

Contents I. Background to Cross Border Harmonization

II. International Best Practices

III. Concepts & Cases

IV. Cross Border Trade for Global Markets

V. Border Management: Internal & Bi-National

VI. Border Counseling Meeting of Zamyn Uud-Erlian

Page 6: Harmonizing Border Port Development as Gateways to Global Markets for Mongolia & the People’s Republic of China Dissemination Workshop, Puma Hotel December.

I. Background to Harmonization

Revised Kyoto Convention: MON & PRC forSimplification & Harmonization of Customs

Implementation: World Trade Organization & World Customs Organization

RKC/WTO/WCO ADB CAREC

Border Counseling Meeting

Continuous Improvements for Border Management: Cross Border Trade & Security

Page 7: Harmonizing Border Port Development as Gateways to Global Markets for Mongolia & the People’s Republic of China Dissemination Workshop, Puma Hotel December.

II. International Best Practices City-Twinning

Steering Group: Administrations from both towns-Decision MakingCentral Governments has limited functionSmall and Medium- Sized Businesses active

Goal of Twinning: Improve welfare of citizensof both towns and facilitate border crossing

Achievments:• Russia-Finish Key Industrial Park (KIEP)-1999• Improvements in: waste-water treatment

systems,energy, tourism infrastructure, improved municipal government

The City Twins Association (CTA)-2006 & City Twins Cooperation Network project-2004-06—Finland-Russia longest in EU, 1324 km

Imatra, Finland—Svetogorsk, Russia: Rail and Road

Page 8: Harmonizing Border Port Development as Gateways to Global Markets for Mongolia & the People’s Republic of China Dissemination Workshop, Puma Hotel December.

Ajo Border Residence

Lead internal border agency:

U.S. Government Services Administration(GSA) cooperates and coordinates with

U.S. Customs and Border Protection (CBP) for constructing residences for officers at the U.S.-Mexico Port of Entry. • Local offices submit requests with data to state for national approvals

• Ajo, Arizona Housing Development Project for CBP officers is 40 miles north of the U.S.-Mexico border and Lukeville POE.

Page 9: Harmonizing Border Port Development as Gateways to Global Markets for Mongolia & the People’s Republic of China Dissemination Workshop, Puma Hotel December.

El Uno and Grasslands

Chihuahua, Mexico—60 milesMexico-U.S.-Nature Conservancy

Ecoreserve near drug war zoneReserva Ecologica El Uno

3 R’s of grassland restoration:resting it, replanting, researching

CB cooperation: Bison in MexicoNot seen grazing since 1832

Educational center: Ranchers learn new, sustainable grazing methods

Page 10: Harmonizing Border Port Development as Gateways to Global Markets for Mongolia & the People’s Republic of China Dissemination Workshop, Puma Hotel December.

III. Concepts & Cases Supply Chain Management Containerization-Intermodalism

Supply Chain Strategy & Management• Product Flows, Information Flows, Financial Flows: Customers• Inventory Management: High Turnover tied to Sales• Cross Border: On Time Deliveries=Revenues(business/GOM)• Partnership between Border Agencies & Private Enterprise:WCO-mutual recognition agreements: US, Jordan, Australia, Sweden

Containerization & Intermodalism• Overloaded truckscontainers: safe, secure, customer service• Consolidationtransport economics lower unit costs• Capacity utilization of Full Container: “weigh out” “cube out”-combine shipments into one container of heavy & light cargo• Benefits: Easier transloading, storage, congestion, environment

Page 11: Harmonizing Border Port Development as Gateways to Global Markets for Mongolia & the People’s Republic of China Dissemination Workshop, Puma Hotel December.

INCOTERMS & Border Management College

INCOTERMS(International Commercial Terms, International Chamber Of Commerce)• Three letter standardterms of buyer & seller in international contracts• Shipment terms as important as product price• Insurance, duty payments,

broker fees, risks

Border Management Staff College, Dushanbe, Tajikistan

• Sr. Border Officials• OSCE international standards

in border management• Workshops on inter-agency

cooperation, best practices, exchange of information

CAREC Federation of Carrier & Forwarder Associations (CFCFA)• Supply Chain Curricula• Centers of Excellence

Page 12: Harmonizing Border Port Development as Gateways to Global Markets for Mongolia & the People’s Republic of China Dissemination Workshop, Puma Hotel December.
Page 13: Harmonizing Border Port Development as Gateways to Global Markets for Mongolia & the People’s Republic of China Dissemination Workshop, Puma Hotel December.

Slovakia Land Locked in Europe

• CB transport of natural resources

• Organization for Security & Cooperation in Europe (OSCE):

Slovakia & Mongolia

Page 14: Harmonizing Border Port Development as Gateways to Global Markets for Mongolia & the People’s Republic of China Dissemination Workshop, Puma Hotel December.

IV. CB Trade for Global Markets

Source: National Statistics Office Mongolia, Bulletin, External Trade, 2009 & 2012, USDCAGR: Compound Annual Growth Rate

Year Total Turnover Exports Imports Balance

2000 1,150.3 535.8 614.5 -78.7

2001 1,233.9 596.2 637.7 -41.5

2002 1,214.4 524.0 690.4 -166.4

2003 1,406.3 615.4 790.9 -175.5

2004 1,888.4 869.1 1,019.3 -150.2

2005 2,241.2 1,063.9 1,177.3 -113.4

2006 2,977.0 1,542.0 1,435.0 -107.0

2007 4,009.3 1,947.5 2,061.8 -114.3

2008 5,779.0 2,534.5 3,244.5 -710.0

2009 4,033.9 1,902.6 2,131.3 -228.7

2010 6,108.6 2,908.5 3,200.1 -291.6

2011 9,099.7 3,747.3 5,352.4 -1,605.0

2012 9,404.0 3,664.7 5,739.3 -2,074.6

CAGR (2000-12) 19.1% 17.3% 20.3% (31.2%)

Trade Growth Calls for Border Counseling Meeting to be a Forum to Assist in Resolving Issues:

Infrastructure, Trade Facilitation, Policy & Environmental

Page 15: Harmonizing Border Port Development as Gateways to Global Markets for Mongolia & the People’s Republic of China Dissemination Workshop, Puma Hotel December.

V. Border Management: Internal

U.S.Department of Homeland

Security (DHS)

Customs and Border Protection (CBP) (lead agency for border inspection and control agencies)

U.S. General Services Administration (along with US Army Corps of Engineers designs, builds, leases)

CBP tells the long range plan and GSA does it. Both agencies have monthly meetings of senior officials. Border stations built by GSA and CBP operate/owns them under DHS

United States General Services Administration

(GSA)

U.S. Customs Service

U.S. Immigration and Naturalization

Service

U.S. Department of AgricultureAnimal & Plant Health Inspection Service U.S. Food & Drug Administration

Federal Highway Administration-U.S. Department of Transportation

GSA is real estate agent for federal government for border port agencies Responsible for building border port facilities with US Army Corps of Engineers

All six agencies signed MoU Met every 3 months Wrote long range plan & recommendations for U.S. lawmakers to allocate funds for border projects

United States Border Administration Framework 1997-2002 Border Station Partnership Council comprised of

U.S. Border Administration Framework 2003-Present

Page 16: Harmonizing Border Port Development as Gateways to Global Markets for Mongolia & the People’s Republic of China Dissemination Workshop, Puma Hotel December.

PR China: Internal Border ManagementChairman of All PRC General Customs Administration &

Chairman of PRC Border Administration

Vice Chairman of China Trade Bureau &Chairman of Border Administration Office

Inner Mongolia Border Administration Office

Erlian city People’s

Government

Vice Chair Border-Road

Division of Road Transport: Head 1-Inspection; 1-

Coordination Officer;4-Services

Officer

Chairman of Erlian Border Administration Office

Vice Chair for Railway

Division of Railway: Head 1-

Inspection; 1-Coordination

Officer; 4-Services Officer

Border Administration Offices for Neighboring:

Russia, Kazakhstan, Mongolia

Vice Chair Internal Affairs

Division of Internal Affairs: 1-Head;4-Services Officers;3-

Financial;10-Border Fee Collectors

Total Employees: 34. Expanded organization for Erlian airport. Border Administration main function is monitor operations of inspection agencies and other border agencies and

to coordinate and harmonize their activities

Page 17: Harmonizing Border Port Development as Gateways to Global Markets for Mongolia & the People’s Republic of China Dissemination Workshop, Puma Hotel December.

Border Management: Bi-National

Working Group Committees

Urban

Subcommittees -Water

-Sewage -Environment

Border Trade

Subcommittees -Customs, Inspections -Information Systems

(SEW)

Gashin Sukhiat-Ganqimaoda

Shivee Huren-Ceke

Subcommittees -Urban

-Border Trade -Environment

Border Counseling Meeting (BCM)

Steering Committee Meet monthly. Agencies from both borders make

suggestions to Core Group

Core Group Meet quarterly. Agencies and

organizations from both borders and is

decision making body of the JBDC

General Assembly Meet Annually. Businesses and

governments from a wide group of

stakeholders provide and seek information

Joint Border Website Project

for all activities of BCM: www.elsw.gov.cn

Asian Development Bank active oversight for 2-3 years

until fully operational

Page 18: Harmonizing Border Port Development as Gateways to Global Markets for Mongolia & the People’s Republic of China Dissemination Workshop, Puma Hotel December.

Border Management: Bi-National

Gashin Sukhait-Ganqimaodao & Shivee Huren-Ceke

How to Organize? Permanent Representative?

-Unique cross border trade characteristics Examine trade data Identify government & business officials Review of GOM Policy on Border

Management/Development & Master Plans Extended Border Counseling Meeting?

Page 19: Harmonizing Border Port Development as Gateways to Global Markets for Mongolia & the People’s Republic of China Dissemination Workshop, Puma Hotel December.

VI. Border Counseling Meeting

Since 2008: civil/securitytrade & transport

Appointment of Cross Border Coordinator(s)

Joint Website: www.elsw.gov.cn

Suggestions: E-mail lists, Annual Schedule, Agenda before meetings, remote meetings

Agenda: Policy/Institutional; Trade & Urban Infrastructure (SEW); Trade Facilitation & Operations; Environment; Performance

Page 20: Harmonizing Border Port Development as Gateways to Global Markets for Mongolia & the People’s Republic of China Dissemination Workshop, Puma Hotel December.

Border Counseling Meeting

Record of Achievements to Prove Value of BCM to all stakeholders (border agencies, businesses, investors, donor organizationsContinuously Improving & Harmonizing CB

Asian Development Bank & CAREC Trade & Transport Facilitation Program Federation of Carrier & Forwarder Assoc. Sources to Discuss BCM Budget Issues

www.carecinstitute.org www.wcog.org/Borders

Page 21: Harmonizing Border Port Development as Gateways to Global Markets for Mongolia & the People’s Republic of China Dissemination Workshop, Puma Hotel December.

Border Counseling Meeting

CAREC 4a & 4b IMTC-North America

Page 22: Harmonizing Border Port Development as Gateways to Global Markets for Mongolia & the People’s Republic of China Dissemination Workshop, Puma Hotel December.

Questions to Consider Alignment of Internal BM: PRC & MON

Clarify Gashin Sukhait—Shivee Huren

Appoint BCM Coordinator

Design, Content, Budget Website:www.elsw.gov.cn

Decide on CB Performance Indicators

Page 23: Harmonizing Border Port Development as Gateways to Global Markets for Mongolia & the People’s Republic of China Dissemination Workshop, Puma Hotel December.

Single Electronic WindowInternal & Bilateral Agreements

Source: Internet- Wikipedia

Page 24: Harmonizing Border Port Development as Gateways to Global Markets for Mongolia & the People’s Republic of China Dissemination Workshop, Puma Hotel December.

Thank You Questions/Answers

Robert L. Wallack, Cross Border Development Expert, [email protected] for ADB and AECOM, U.S.A.


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