Trade facilitation and supply chain framework in SCCP APEC Vietnam 2017

	Objectives and tasks of Virtual Working Group (VWG) at SCCP APEC meeting in Vietnam
	6 outcomes of the discussions through 2 days of APEC Finance and Central Bank Deputies’ Meeting
	Improvements in Customs Control and promotion of international interoperability through SCCP APEC

On 6-7 March 2017 the WCO TFA Working Group will meet and on the second day jointly meet with the WCO Capacity Building Working Group to assess the specific needs of members. Photo: Hoang Anh.

The implementation of the WTO agreement on trade facilitation

The WCO representative presented updates on the status of WTO-TFA implementation. The WCO representative advised that 108 WTO members have ratified the TFA, leaving only two members to agree before it comes into effect. WCO expects it to come into effect in the coming days. As a result, the focus shifts from ratification to implementation. WCO explained how it can support TFA implementation including through its expertise in developing trade facilitation standards, communication and capacity building. On 6-7 March 2017 the WCO TFA Working Group will meet and on the second day jointly meet with the WCO Capacity Building Working Group to assess the specific needs of members.

Vietnam presented on its ratification process and that of other APEC economies. Currently, 18 of 21 APEC members have ratified the Agreement. Under the direction of the Deputy Prime Minister, Vietnam has been actively preparing for implementation of this Agreement. Particular focus has been on establishment of the National Trade Facilitation Committee (NTFC) as required in Article 22 of the Agreement. The Vietnamese NTFC also covers the National Single Window and the ASEAN Single Window. In addition, Vietnam Customs, in its role as a permanent body of the SCCP, presented on the roadmap for the implementation of the TFA by the Committee towards complete and effective implementation of the Agreement as its entry into force nears.

Vietnam submitted a proposal to organize a workshop on enhancing the partnership between stakeholders in the implementation of WTO TFA. This workshop seeks to help improve the relationship between the involved parties within each Member Economy, as well as to further strengthen the connection among APEC Customs Administrations in the implementation of the TFA. The United States, New Zealand, Japan, Chinese Taipei, the Philippines, China and the WCO voiced their support for the proposal. Japan reminded the meeting of the need to recognize different stakeholders, including the private sector, particularly service providers. China suggested including New Zealand, Japan, Chinese Taipei, the Philippines, China, Peru and Australia, agreed to co-sponsor the proposal. The Concept Note was circulated for SCCP’s endorsement by 1 March 2017.

Peru presented the results of the workshop on “Best practices on critical issues in the Asia-Pacific region for the implementation of the TFA”. 34 public and private sector entities from 14 member economies responded to a survey circulated among CTI, SCCP and ABAC members. The workshop was held in Lima on 20-21 August and discussions during the workshop highlighted an inadequate infrastructure and a general lack of understanding of TFA commitments, particularly, commitments were thought to be more important to Government than Business. The results of the survey and workshop will soon be published on the APEC website.

Chinese Taipei presented on the current status of WTO-TFA implementation. Chinese Taipei was the 13th WTO member to ratify the TFA. A conformity review by Customs and relevant agencies highlighted that Chinese Taipei could immediately implement the TFA. A TRS online system was implemented and opened for public use in January 2017. The results of TRS analysis were based on real transaction data, and it was found that the major bottleneck was with licence issuing authorities. Chinese Taipei also advised on their progress with implementing Coordinated Border Management.

Supply chain connectivity framework

Peru provided an update on the progress of the workshop to identify factors affecting clearance in import and export processes made by MSMEs. Peru presented the objectives, deliverables, and progress of preparation and work schedule of the workshop. The workshop is proposed to take place in October 2017.

The CTI representative in Vietnam presented on Phase Two of the Supply Chain Framework Action Plan (SCFAP II) 2017-2020. The CTI representative in Vietnam went through the objectives of SCFAP 2010-2015 and PSU Final Assessment. The representative shared SCFAP II’s objectives and its 5 chokepoints, proposed PPD on SCFAP II to create understanding of the continuing challenges and problems in each chokepoint, and advised outcomes will be reported to CTI.

Peru reported on the Study of Methodology of Logistic Costs as a public policy to promote GVC’s development. The report provided information about the integral analysis of logistic in Peru, the methodology to measure logistics costs and outcome of the analysis and next steps.

Vietnam introduced its simplification and harmonization of Customs procedures for goods clearance and release, including best practices.

Chile reported on the activities undertaken on enhancing harmonization of the implementation of the Guidelines. Chile also proposed future actions in 2017 including the organization of a workshop for the Member Economies to share experience and production of a Best Practice Manual. Chile urged Member Economies to respond to the survey and advised another questionnaire was also send to private sector stakeholders. The outcomes of questionnaires would support gap analysis to identify technical assistance needs with a view to having a workshop to share experiences and best practices.

WCO is developing new transit guidelines, which has more than 150 guidelines. WCO has also held a number of related workshops. The draft guidelines will be considered for approval at the WCO Council Meeting in July 2017. The WCO representative offered to present the guidelines at the next SCCP.

China and Japan congratulated Vietnam’s progress in simplifying and harmonizing their Customs procedures. China also highly valued the work of Chile in developing best practice for Customs transit matters.

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Hong Kong advised they have rolled out a transit facilitation arrangement for economies having FTAs with China. Japan also reiterated the importance of clearly defining transit and transhipment.