A POSITIVE AGENDA FOR A POSITIVE AGENDA FOR AFRICA IN TRADE AFRICA IN TRADE

FACILITATION: A CASE FACILITATION: A CASE STUDY ON RWANDASTUDY ON RWANDA

By Clare AkamanziBy Clare AkamanziRwanda Mission To The Rwanda Mission To The

UN/WTOUN/WTO

OutlineOutline

Trade Facilitation: Definition and BackgroundTrade Facilitation in RwandaA Comparative Analysis of WTO proposals and Rwanda TF ReformsRegional Initiatives Implementation needsConclusions

Definition and BackgroundDefinition and Background

Broad definition‘everything from Government regulations and controls,

performance of customs services, business competence and efficiency, transportation, physical infrastructure at ports and airports, information and communications capacity and finance’.

WTO scope narrow: Improve and clarify GATT articles V (goods in transit), VIII (border fees and formalities), X (administration and transparency of Government proceduresSome WTO Agreements contain TF elements (ACM, TBT, SPS, Import licensing procedures, Rules of origin)

ContCont’’dd

Background1996 Singapore Ministerial Declaration ‘analytical and exploratory work’2001 Doha Ministerial ‘…negotiations to commence after fifth ministerial’Fifth Cancun Ministerial-collapseAnnex D ‘July Package’-launched negotiations through modalities

ContCont’’dd

Annex D-July Package, was a comfortable compromise. Three key areas of interest

i) Defining the specific and limited scope of the negotiations

ii) Positive S and D elements linking commitments to the provision of TA and CB, and in particular the assumption of commitments to the requisite capacity

iii) Leaving open the final result of the negotiation and its precise form

ContCont’’dd

Brief State of play-In August-39 proposals, now about 46 proposals

submitted in all three articles-Developed countries main demandeurs with

ambitious proposals-Developing countries main concern-cost

implications-African countries’ proposals: Uganda, South Africa,

Egypt, and Rwanda-

ContCont’’dd

2 African Group proposals on TA and CBDiscussion on implementation mechanism of TA and CB still inadequateAssessments of needs and priorities still very lowHong Kong expectations- intensify negotiations, some requests for list of proposals and text-based phase

Trade Facilitation in RwandaTrade Facilitation in Rwanda

Rwanda-Location-Development objectives-Regional Integration

Formation of RRA and customs department

ContCont’’dd

Challenges by Rwandan traders-High transport costs-Multiple border transactions and delays-Multiple and inconsistent weighbridges-irrelevant fees and charges-Transit fees-Inconsistent transport regulations

WTO PROPOSALS: A WTO PROPOSALS: A COMPARATIVE ANALYSIS COMPARATIVE ANALYSIS

WITH RWANDAWITH RWANDA’’S REFORMSS REFORMS

Publication and availability of Publication and availability of information (GATT VIII, and X)information (GATT VIII, and X)I) Trade all Regulations (non-discriminatory, no cost, official gazette, official website, journals, summaries, and internet)Rwanda: mainly official gazette: also partially-RRA website, parliamentary websiteTA and CB Needs: Transition periods for translation and compilation, information technology improvement, increase in human resources

ContCont’’dd

2) Publication of Penalty provisions, and prohibition of unpublished penaltiesRwanda: part of legal provisions, published in the official gazettes, and part of draft law

3) Internet Publication of all Art. X Rwanda: RRA and Parliamentary websitesTA and CB needs: IT improvement, compilation

4) Notification of Trade RegulationsRwanda: Need to enforce this, and address

associated challenges

ContCont’’dd

5) Enquiry points, 24 hour basisRwanda: Customs Public relations unit, one staff, 08hrs00-17hrs00TA and CB needs: establishment of an enquiry point for all trade regs, institutional and human resources

Time period between Time period between publication and publication and

implementation (GATT,VII, X)implementation (GATT,VII, X)Interval between publication and entry into force of a law/regulationRwanda: Legally, a law is in force upon publication, but customs grants ten days before enforcement.S and D needs: Flexibility to enforce urgent laws

Consultation and commenting on Consultation and commenting on new and amended rules (GATT new and amended rules (GATT

X)X)1) Time for prior consulting and commentingRwanda: No mandatory prior commenting, however consultations on foreign laws and practices thus would be burdensome and unnecessary.2) Information on policy objectives soughtRwanda: Policy objectives by authorities, and preamble but mandatory requirements may infringe on policy space.

Advance Rulings (GATT X)Advance Rulings (GATT X)

On tariff classification, rate if duty, customs valuation, duty deferral, tariff preferences…Rwanda: Not available nowS and D, TA and CB needs: legislation, enforcement, and training, best endeavor

Appeal procedures (VIII,X)Appeal procedures (VIII,X)

1) Right of appeal-same agency, judicial body, standard time, publication of decisionsRwanda:Legal right to appeal, RRA appeals committee, Ministry of Finance, decisions published, average of three days for minor appeals. No separate tribunal2) Release of goods under appealRwanda: Upon guarantee

Other measures (Art.X)Other measures (Art.X)

1) Uniform Administration of trade regulations (central function to interpret, compile and distribute regulations, case books…)Rwanda: Non-existent2) Maintenance of integrity among officialsRwanda: RRA staff code of conduct

Fees and Charges (GATT Fees and Charges (GATT Article VIII, X)Article VIII, X)

1) General Disciplines-including specific parametersRwanda: No specific parameters, but efforts aim at minimizing fees and charges, important to review the parameters first2) Publication/NotificationRwanda: Publication is done, notification within restrictive times may be difficultS and D-Best endeavor period for LDCs

ContCont’’dd

3) Prohibition of unpublicized fees and chargesRwanda: All fees and charges that are levied are publicized 4) Periodic Review of fees and charges at regular intervalsRwanda: Review takes place but not on regular/fixed intervals5) Automated paymentRwanda: Not available-only cash, and cheques

ContCont’’d d

6) Reduction/Minimization, with the remaining ones notifiedRwanda: Fees minimized to the extent possible.

FormalitiesFormalities

1) Periodic review (take into account new information, business practices, modern techniques and new technology..)Rwanda: practiced, but a binding requirement to do so would need the requisite resources to do so2) Reduction and limitation of formalities and documentationRwanda: revised processes and procedures, single declaration document, cargo scanner, Asycuda++, modernization of clearing agencies operations.

ContCont’’dd

3) Use of international standards e.g, UN layout key, Kyoto convention, HS conventionRwanda: Practiced: implemented ACM, HS 2002, Kyoto convention…TA and CB: To further implement other international standards and enhance current ones4) Uniform customs code among membersRwanda: Rwanda consults especially in the regions

ContCont’’dd

5) Acceptance of commercially available information and copiesRwanda: Commercially available information accepted, not copies6) AutomationRwanda: ASYCUDA ++7)Single windowRwanda: for customs formalities only 8) Elimination of preshipmentRwanda: done in 2004

ContCont’’dd

Phase out mandatory use of customs brokersRwanda: Not feasible in the near future

Consularization (GATT VIII)Consularization (GATT VIII)

Prohibition of consular transaction requirementsRwanda: Not levied

Border Agency cooperation ( Border Agency cooperation ( GATT Article VIII)GATT Article VIII)

Coordination of activities of all border agenciesRwanda: Exchange of information only with Uganda and Kenya

Release and clearance of Release and clearance of goods (Article VIII,X)goods (Article VIII,X)

1) Pre-arrival clearanceRwanda:Not done, except in the draft law2) Risk assessmentRwanda: Done under ASYCUDA ++3) Post-clearance auditRwanda: Introduced4) Release before clearanceRwanda: enforceable upon payment of a guarantee5) Establishment of average release and clearance timesRwanda: Done: an average of one average if there are no irregularities, and 4 hours for exports

Tariff classification (VIII,X)Tariff classification (VIII,X)

Objective criteriaRwanda: HS 2002

Transit issues (GATT, V)Transit issues (GATT, V)

1)Non-discriminationRwanda: Effected2)Fees and Charges (publication, review)Rwanda: Practiced 3) Reduction/SimplificationRwanda: ASYCUDA, planned electronic cargo scanner system (US $ 1,500,000) and transit sheds (US $500,000)Use of international standardsRwanda: Partially implemented

ContCont’’dd

Promotion of regional transit arrangementsRwanda: COMESA, Northern and central corridorsLimitations of inspections and controlsRwanda: Inspection limited to seals, planned cargo scanners (US $ 10m) and weigh bridges SealingRwanda: For containerized goods

ContCont’’dd

Cooperation and Coordination on document requirementsRwanda: Partially implementedMonitoringRwanda: Need to revamp the Northern corridor committeeBonded Transport regime/GuaranteesRwanda: Ratified the COMESA Regional Customs Guarantee scheme

REGIONAL TRADE REGIONAL TRADE FACILITATION INITIATIVESFACILITATION INITIATIVES

COMESACOMESA

HS 2002 adopted as COMESA standard customs nomenclature, and a Common Tariff nomenclature (CTN). Rwanda has implemented thisAdopted the WTO Agreement on Customs Valuation. Rwanda has implemented thisCOMESA C-D (imports, exports,transit,warehousing)Harmonization of customs legislations and procedures-Working group, draft COMESA Customs Management Act (CCMA)

ContCont’’dd

Customs integrity and conduct –code of ethics. Rwanda uses RRA oneFacilitating of transit in some countries ( harmonized axle load controls, harmonized transit charges, yellow card insurance scheme, regional bond customs scheme…)COMESA simplified certificate of origin (goods not exceeding $200)

Northern CorridorNorthern Corridor

Created in 1985DRC, Burundi, Rwanda, Uganda and KenyaCarries 75% of Rwanda’s importsTransit Agreements to safeguard freedom of transit, implements provisions, jointly promote and coordinate infrastructure development, harmonization of all transit policies…Implementation not adequate

Central CorridorCentral Corridor

Covers Tanzania, Uganda, Rwanda and BurundiNo formalized legal frameworkBilateral coordination committees between Tanzania and other countriesUsed by Rwanda too, and use could increase after further infrastructure development

EPAsEPAs

Rwanda to negotiate under ESA region with EUNegotiating mandate ‘simplify all requirements and procedures….drawing on the highest international standards…’Important for ESA to determine scope in relation to WTO

EU FTASEU FTAS

Euro-Med Association Agreements with Tunisia, Israel, Morocco, Jordan, Palestine, Algeria, LebanonAlso with South Africa, Mexico, ChileEU ambition seems relative to level of development, and ambition of the other partyCover simplification of procedures, computerization, SAD, exchange of information, elimination of customs duties, cooperation committees, single agency, modern customs techniques, right of appeal, common int.positions

Rwanda Overall Rwanda Overall implementation needsimplementation needs

Institutional reformInstitutional reform

Enhancement and creation of institutions-Enhancement of customs department (improved

legal, IT department, advance ruling system…)-Enhancing Ministry of Trade role (e.g to implement

notification requirements, consultations with WTO members, coordination within & regionally)

-Institutionalized coordination of all trade institutions, including an integrated legal function

-Customs appeals tribunal- Enquiry point

Infrastructure developmentInfrastructure development

Broad Transport improvement, including building of transport shedsElectricity to computerize all borders Expansion of border staff and officesCustoms clearance equipment (e.g software, electronic cargo monitoring system, scanners)Training facilities (customs or clearing and forwarding)

Human resource developmentHuman resource development

Training (e.g automation, risk assessment, post audit, advance rulings…)Exposure/inter-country exchange (cooperation with more developed systems)Consistency and sustainability

ConclusionsConclusions

TF has a role in addressing Rwanda’s competitive disadvantagesMany reforms already unilaterally achievedExtent of implementation variesAppropriate sequencing needed for some measuresSome measures difficult to implement or non-existentHowever time for efficiency and experience still youngTherefore technical assistance and capacity b ildi i i l

Thank you!Thank you!