Download Position on: Trade Facilitation

INTERNATIONAL
COUNCIL OF
CHEMICAL
ASSOCIATIONS
Position on
Trade Facilitation
May 2005
Conselho das Associações
da Indústria Quimica do
Mercosul
(CIQUIM)
Argentina, Brazil and
Uruguay
European Chemical
Industry Council (CEFIC)
The International Council of Chemical Associations (ICCA) is an
organization of leading trade associations representing almost 75% of
chemical manufacturing worldwide. World chemical industry production
exceeds US$1.9 trillion annually, and 40% of this production is traded
internationally. Chemicals trade accounts for 10% of world trade in
goods.
Japan Chemical Industry
Association (JCIA)
Introduction
Asociácion Nacional de la
Industria Quimica
(ANIQ)
Mexico
International trade has changed fundamentally since the trading process
for managing the movement of goods was established. Both the volume
and character of transactions have changed and this needs to be
recognized in the procedures adopted for managing international trade.
Canadian Chemical
Producers' Association
(CCPA)
American Chemistry
Council
(ACC)
United States
New Zealand Chemical
Industry Council
(NZCIC)
Plastics and Chemical
Industry Association
(PACIA)
Australia
The issue of trade facilitation is of key concern to the chemical industry.
ICCA fully recognizes that progress on this important, extensive and
complicated issue will require close cooperation and partnership between
all parties involved in international transactions.
It is our firm belief that the World Trade Organization (WTO) is the most
suitable international organization to establish enforceable rules and the
co-ordination of activities related to trade facilitation. The WTO should
determine the scope, priority and timetable for the work on trade
facilitation.
Trade Facilitation goes gar beyond the WTO. Other international
institutions that aim to facilitate trade, notably the World Customs
Organisation (WCO), the United Nations Economic Commission for
Europe (UNECE) and the World Bank, have a unique contribution to
make to the improvement of the international trading process.
The evolution of the trading process should not be delayed by a detailed
analysis of the huge variety of procedures already in place. It should take
a fresh look at what controls and information are essential at borders in
the light of modern trade practice.
Council Secretary:
ALAIN PERROY
7310
Ave. E. van Niewenhuyse 4, Bte. 1, Bruxelles B-1160, BELGIUM
www.icca-chem.org
tel: +32-2-676-7200
fax: +32-2-676-
The WTO should be guided by but not be constrained by the WCO’s revised Kyoto Convention
setting out best practices related to customs procedures. The WTO should aim at establishing
standard information requirements and core commitments on customs procedures.
The new approach should cover the broadest possible geographical scope and should initially
simplify trade procedures related to GATT Articles V, VIII and X. The long term aim should be
to have a comprehensive trade facilitation agreement which extends beyond Articles V, VIII, and
X. Furthermore, modern information technology should be used to implement simplified and
modernized procedures.
The Trade Facilitation negotiations should take into account the needs of developing countries
and provide for a differentiated approach. To help developing countries implement new trade
facilitation rules, technical and financial assistance should be provided by the WTO, along with
the World Customs Organisation (WCO).
ICCA calls on WTO members to make significant progress at the 6th WTO Ministerial Meeting
on trade facilitation - a topic that is fundamental to international trade efficiency.
Position
1. Success criteria specifically related to the further facilitation of the movement of goods:
 Transparency of customs procedures
 Predictability (i.e. no frequent changes of customs procedures)
 Simplification of customs procedures
 Harmonization and standardization of customs procedures
 Modernized communication (Electronic Data Transfer)
 Minimum bureaucracy and no delay at national borders
 All costs related to international transactions should be kept to a minimum
2. Benefits that will accrue from Trade Facilitation:
 More focused and cost-effective control
 More focused interception of illicit trade
 Lower costs for both government and industry
 No loss of revenue
 Easier for small and medium size enterprises to trade internationally
 Simplified procedures will be easier to manage for developing countries
 Less opportunity for corrupt practices
 Development of risk management
 Stimulation of further growth in trade and thereby increased revenue
 More uniform implementation and enforcement of customs rules
3. Issues of prime concern related to facilitation
3.1.
Documentation Requirements
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3.2.
There should be an internationally recognized form with minimum data
requirements.
Maximum use should be made of commercial documentation and the information
contained therein.
Only one set of data should be used for both import and export.
Transit through third countries should require only limited data elements and
customs clearance should not create any delay.
Any duplication of control procedures should be avoided.
Administration of Imports and Exports
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General Points
Imports and exports should not be subject to delay at the border.
There should be uniform national application of internationally agreed procedures
by all WTO members. Standardization of procedures should be achieved through
the revised Kyoto Convention.
The harmonization and simplification of customs procedures has to be substantial
and implemented as fast as possible.
Customs should be the lead Border Management Agency to administer imports
and exports (licensing, etc.) of all types of goods.
Any intervention in the flow of goods at national borders should be made on the
basis of risk analysis and not by physical checks on every consignment.
All documentation requirements should be clearly published, easily accessible and
understandable.
Commercial documentation and its data should be used to the maximum extent.
Authorized Traders
Traders that are confirmed by individual national governments as being proficient
and ethical in their management of international trade should be accorded the
status of an authorized international trader (the criteria that need to be fulfilled to
be given the status of an authorized trader need to be formally established and
recognized internationally).
Authorized traders should be allowed to trade without intervention at the borders
(fast track). Post import/export declarations and post entry and exit audits should
be accepted as a standard part of the trade facilitation process. If audits or
occasional spot checks show that the rules are not being strictly obeyed, then
authorization should be revoked.
Mutual recognition of authorised trader status by all WTO members.
Other Traders
All legitimate other traders should benefit from the overall reforms: minimum
data requirements, simplified procedures and effective use of information
technology.
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3.3.
Automation and the Use of Information Technology
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3.4
Information technology and automation must not drive the process of reform.
Simplification and harmonization of current procedures and information
requirements should not be circumvented by the use of modern communication
and data handling systems.
Electronic data exchange (EDI) should be based on an international standard and
designed to deal with the simplified procedures recommended.
The required customs procedures for all WTO/WCO members should be readily
available on a database administered by the WTO and WCO and available
through the Internet in a user-friendly form.
Supply Chain Security
This is an issue that is second to none for the chemical industry. We are only too
aware of the need to operate securely as well as efficiently. We are supportive of
the initiatives to improve the security of international trade but would like to
emphasise that a secure transaction does not have to be one that is buried in
bureaucracy and subject to intervention. Trade facilitation and security should be
mutually reinforcing. Trade facilitation and security are not a balance! Fast and
efficient trade leaves less time for illegal intervention. A modern risk management
approach means that – through the facilitation of secure, low risk trade - greater
resources can be focused on control and intervention related to the higher risk
transactions. Data requirements that are specific to security needs, exchanged
electronically and kept to a minimum are good for both security and efficiency.
Security measures should be harmonized, coordinated and implemented on an
international basis. Efficient supply chain security requires trust and very close
cooperation between business and trade.
Whilst we fully recognize the enormity of the task to achieve progress as
described above, ICCA believes that these essential changes that will have huge
benefits for developing countries, developed countries and international business.
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The International Council of Chemical Associations (ICCA) is a council of leading trade organizations
and their member companies representing chemical manufacturers in Australia and New Zealand, Europe,
North and South America, Japan and South Africa. ICCA represents approximately 75% of worldwide
chemical production. ICCA's focus is on developing global chemical industry positions and evolving
programs on issues of international significance to the industry in areas such as health, safety, and the
environment; international transport safety; intellectual property; trade policy; and industry efforts to
eliminate chemical weapons and diversion of illegal drugs. ICCA also promotes and coordinates
Responsible Care® and other voluntary chemical industry initiatives. The chemical associations in 52
countries implement ICCA's Responsible Care® initiative.
For an electronic version of this and other ICCA positions on trade, please visit the ICCA web site at
www.icca-chem.org
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