Doing Business 2017

Trading Across Borders Technology gains in trade facilitation

n the era of digital advancement ƒ Increased national trade digitalization and constant innovation, interna- THE ADVANCEMENT OF leads to efficiency gains for exporters Itional trade has greatly benefitted SINGLE WINDOWS and importers. from the development and integration ƒ Many single windows have a high of various electronic interfaces. Aspiring International trade has evolved into a level of sophistication and consist to advance cross-border trade through complex network of actors, both within of complex networks of regulatory the use of digital technologies and and outside sovereign borders. Trade agencies and private actors. This is electronic services, the World Customs processes involve not only government the case of the Ventanilla Única Organization (WCO) declared 2016 authorities and private firms but also de Comercio Exterior (VUCE) in the Year of Digital Customs. The WCO customs brokers, commercial banks, Colombia, which connects multiple placed a special emphasis on the coor- vendors, insurance companies and public agencies and several private dination of customs activities such as freight forwarders.4 For example, at least companies with exporters, importers, automated customs clearance systems, nine institutions play a role in the process customs agents and brokers. the implementation of single windows of exporting coffee from Colombia to the ƒ Sweden was one of the first economies as well as improvement of electronic United States. First, the National Institute to introduce a national single window information exchanges. The goal of of Food and Drug Monitoring issues a in 1989. Since then, the system has these activities is to promote the free phytosanitary certificate, which ensures evolved from an export statistics flow of information and increase trans- that the coffee meets current sanitary platform to a comprehensive trade parency while improving the efficiency standards. The Colombia Coffee Growers facilitation tool. of day-to-day trade processes.1 Adding Federation then issues a certificate that ƒ Seaports maintain their competitive to this effort, theDoing Business trading attests to the quality of the shipment.5 edge through the automation and across borders indicator set measures The Colombian Agricultural Institute modernization of port infrastructure. technological advancement in the area of then conducts a phytosanitary inspection trade facilitation by collecting data on the while the antinarcotics police perform ƒ Economies that perform well on the trading across borders indicators also time and cost of customs clearance and security inspections and customs clears tend to have lower levels of corruption. inspections procedures.2 For the first time the freight. The exporter must obtain a this year, the indicators collect data on certificate of origin from the Colombian the use and advancement of single win- Chamber of Commerce to comply with dows around the world. For this purpose, the U.S.-Colombia Trade Promotion Doing Business defines a single window Agreement. And these are only the steps as a system that receives trade-related that must be completed in Colombia. information and disseminates it to all Once the shipment of coffee reaches the the relevant governmental authorities, United States, it has to go through clear- thus systematically coordinating con- ance with the U.S. Customs and Border trols throughout trade processes. The Protection, Food and Drug Administration new data on single windows capture and the U.S. Department of Agriculture. the different levels of their integration Remarkably, the Colombian example is a and digitalization.3 relatively simple one compared to most 80 DOING BUSINESS 2017

other trade-related interactions world- in customs revenue.7 As a result of increasing the number of exporting firms wide. To ensure effective coordination, the introduction of ASYCUDA in the and on improving international trade Colombia developed a single window Philippines in 1996 and Sri Lanka in flows.13 In Costa Rica, for example, the system for foreign trade—the Ventanilla 1994, in the first year of implementation implementation of streamlined proce- Única de Comercio Exterior (VUCE)—in customs revenues increased by more dures to process export permits through the early 2000s. The single window con- than $215 million and $100 million, a single window resulted in an increase nects 21 public agencies and three private respectively.8 Similarly, St. Lucia has in the number of exporters by 22.4%.14 companies (that provide e-signature benefited from the implementation of Moreover, Doing Business data show that certificates and legal information) with ASYCUDA. Customs brokers no longer traders in economies with fully opera- importers, exporters, customs agents need to visit multiple customs clearance tional electronic systems (that allow for and brokers through an online platform officers or government agencies to verify export and import customs declarations that allows users to request approvals, and obtain documents as most of the to be submitted and processed online) authorizations and other certifications paperwork is verified automatically. By spend considerably less time on customs needed to import and export goods. In enabling the rapid electronic submis- clearance (figure 9.1). Recognizing the addition, tax identification and business sion of documents, the overall customs positive impact of digitalization, govern- registration records are available to the clearance process in St. Lucia has been ments and international institutions agencies integrated into the system. reduced by 24 hours since implementa- worldwide have dedicated significant tion. However, not all of the economies resources to modernizing border compli- In the early 1980s governments and that adopted the ASYCUDA program ance processes. international organizations recognized managed to achieve the desired results. the need to facilitate the coordination The Comoros, for example, introduced Challenges of establishing of multiple trade actors to make cross- the ASYCUDA software in 2010 but it single windows border trade more cost effective and was not used widely by local traders. In 2005, the United Nations Centre time efficient. Trade processes gradually Electricity cuts and shortages made the for Trade Facilitation and Electronic began to shift from physical to electronic system unreliable during regular business Business defined a single window as a platforms. One of the first attempts hours; the private sector did not experi- platform that enables trade stakeholders to create a trade electronic platform ence the expected positive impact from to submit documentation and other rel- took place when the United Nations the implementation of the program. evant information through a single point Conference on Trade and Development of entry in a standardized way in order (UNCTAD) launched an automated As trade chains have become increas- to complete export, import and transit customs data management system, ingly globalized, the demand for the procedures.15 However, over the past the Automated System for Customs coordination of diverse trade actors has decade, the concept of a single window Data (ASYCUDA).6 Following a request continued to rise.9 Many economies have has expanded to include the entire evo- from the Economic Community of West needed to move beyond relatively simple lution of electronic systems, including African States (ECOWAS) in 1981 for customs electronic data interchange customs automation, trade point portals, technical assistance to collect foreign systems, such as ASYCUDA, and toward electronic data interchange techniques, trade statistics from its member states, a more inclusive and sophisticated plat- agency-specific single windows, national UNCTAD developed customs software form: the single window. The importance single windows, and even regional and covering most foreign trade procedures. of the adoption and integration of single global single windows (figure 9.2).16 Due The focus of the ASYCUDA software windows in trade has been highlighted by to the multifaceted nature of electronic is trade facilitation, customs clearance, the Bali Agreement of the World Trade interchange systems, national govern- fiscal control and operational capacity, Organization (WTO), particularly in the ments and international development allowing for the replicability and adapt- context of developing economies.10 organizations face numerous obstacles ability of its software in a cost-effective in coordinating the implementation of manner. The program, which is imple- The level of national digitalization, spe- comprehensive single window platforms. mented free of charge by UNCTAD, cur- cifically regarding cross-border trade, has Furthermore, cross-country comparabil- rently is installed or being installed in over been shown to have a significant impact ity is complicated by the fact that dif- 90 economies worldwide. on economic growth.11 Specifically, stud- ferent economies choose to introduce ies have found that an increase of an single windows of varying complexity. In most cases, ASYCUDA yields positive economy’s digitalization score by just Mauritius’ single window, TradeNet, is results for all parties involved. Traders 10% leads to a 0.75% growth in GDP.12 mostly focused on customs procedures benefit from faster customs formalities Research also demonstrates the positive and currently the system only includes and governments report an increase impact of single window systems on the Mauritius Revenue Authority, TRADING ACROSS BORDERS 81

FIGURE 9.1 Trade digitalization leads to efficiency gains for both exporters production and trade processes, con- and importers ducting sanitary inspections and issuing sanitary certificates.18 Average export border compliance time (hours) Average import border compliance time (hours)

120 120 Single windows may suffer from various institutional and regulatory limitations 100 100 that stem from conflicting interests related to technical standards, data 80 80 harmonization and information shar- 19 60 60 ing. Border operations, especially those managed by customs authorities, are 40 40 legislated at the national level. As such, governments and development organiza- 20 20 tions must first convince different politi- cal actors of the need to integrate and 0 0 20 Paper onlyPaper and Electronically Paper onlyPaper and Electronically modernize trade operations. Moreover, electronic electronic because the information technology suppliers of the electronic systems are Source: Doing Business database. Note: The relationship is significant at the 1% level after controlling for income per capita. The three categories third parties with complex contractual are: only paper submission of customs declaration is possible; both paper and electronic submissions are in use; relationships with governments, change and only electronic submission is possible. The sample includes 165 economies. can be slow. Beyond agreeing on the scope of work and bringing together the Mauritius Port Authority and the a broad range of government agencies. different stakeholders, implementation Mauritius Chamber of Commerce and The Australian single window con- of a single window can entail a number Industry.17 In Australia, by contrast, the nects customs authorities, quarantine of organizational complexities. The cost Customs and Border Protection Service authorities and meat producers. These may also vary depending on the parties Integrated Cargo System incorporates actors work closely throughout the involved and the level of integration. The

FIGURE 9.2 Some single windows have a high level of sophistication, encompassing complex networks of regulatory agencies and private actors

Agriculture Ministries

Industry $ $ Trade

Banks Payment of duties

Technical certificate

Sanitary inspection Trade license

E-declaration Customs

Road document Handling fees

Single Window Freight forwarder Bill of lading Land

Port Carriers Shipping line Border authority

Source: Doing Business database. 82 DOING BUSINESS 2017

single window for exports in Guatemala, Singapore’s single window for trade, synchronization with national single for example, was developed by the private TradeNet, one of the first such systems window efforts, electronically integrated sector for less than $1 million, with ongo- put in place in the world, began operating regional systems are on the rise. The ing operational costs of $1.2 million per in 1989 as an electronic data interchange Association of South East Asian Nations year. Users of the Guatemalan single win- system that allowed the computer-to- (ASEAN)32 Single Window (ASW) initia- dow pay a fee for each transaction in addi- computer exchange of structured mes- tive, which was adopted and endorsed tion to a flat monthly fee. Conversely, the sages between the government and during the Ninth ASEAN Summit in 2003, single window in Malaysia, which covers members of Singapore’s trading com- aims to integrate the national single both exports and imports, was established munity.26 TradeNet now handles more windows of ASEAN countries by allowing through a public-private partnership and than 30,000 declarations a day, processes the electronic exchange of customs infor- cost about $3.5 million.21 99% of permits in just 10 minutes and mation and expediting cargo clearance. receives all monetary collections through The regional single window is expected One study shows that among 12 selected interbank transactions.27 Regarding cost, to reduce the overall cost of trading by trade facilitation mechanisms, single trading firms report savings of between 8%, with the largest savings arising from windows generate one of the largest long- 25% and 30% in document processing.28 a reduction in documentation dispatch term cost savings despite having some of costs.33 The implementation of the ASW the highest setup and operating costs Sweden was also one of the first countries is being carried out gradually; member and an average implementation time of to introduce a national single window. states are currently in the process of about four years.22 Despite the different The first steps toward the implementa- implementing their respective domestic uses and applications of single windows, tion of the Swedish single window were ratifications. A significant challenge has the benefits outweigh the costs of taken in 1989 with the development of been the fact that most ASEAN member developing a comprehensive framework the Customs Information System (CIS) by states have their own customs regimes integrating multiple trade actors. These the Swedish customs authorities. During and relevant legislation in place, which benefits include improved revenue yields this initial stage, the CIS was an online can be difficult to reconcile with new and the adoption of control risk manage- platform that recorded export statistics regional legislation. ment techniques for governments, as electronically to the statistics bureau. well as enhanced predictability, reduced The system gradually evolved from an Efforts toward electronic regional integra- costs and fewer delays for traders.23 As a export data exchange to a comprehensive tion are also underway in Latin America result of implementing an electronic data single window that encompasses exports, and the Caribbean. The Inter-American interchange system in the Philippines, imports and transit goods’ procedures. Network of International Trade Single customs custody time was reduced to Currently, the Swedish single window con- Windows (Red VUCE) initiative was 4–6 hours for “green channel” shipments nects customs not only to the statistics launched in 2011 as a forum to promote (from 6–8 days previously).24 Albania also bureau but also to other important inter- cooperation and peer-to-peer learning significantly reduced the time spent in national trade actors.29 Clearing goods among national single windows in Latin customs by adopting a digital risk-based in Sweden is easy and straightforward. America and the Caribbean, with the goal border inspection process. Between The trader or representative submits the of reducing the time and cost of trading 2007 and 2012, this process reduced the customs declaration online; even though in the region.34 During its fifth meeting in days goods spent in Albanian customs paper copies are still allowed, they are 2014, Red VUCE representatives agreed by 7% and boosted the value of imports rarely used. Customs processes the to launch a pilot project that will allow also by 7%.25 The implementation of this relevant information and if a license or a interoperability of single windows in electronic facility, based on ASYCUDA permit from other agencies is required it the region with the primary objective of modules for risk management, was is requested automatically through the eliminating paper copies of documents recognized as a positive reform in the single window.30 Even though the use of and interconnecting the single windows of Doing Business 2016 report. the online system is not compulsory, 94% Chile, Colombia, Mexico and Peru, the four of customs declarations are submitted founding members of the Pacific Alliance, The implementation of a single window electronically, and approximately 12,000 by 2016.35 in Singapore yielded positive results. companies and 7,000 citizens use it.31 The Following a recession in the 1980s, platform operates 24 hours a day, seven Economies that trade through seaports Singapore’s government set up a high- days a week and is free of charge. maintain their competitive edge not only level committee to improve economic through the use of electronic services competitiveness. One of the committee’s Over time single windows have moved and single windows but also through the recommendations was to increase the beyond national boundaries, encom- automation and modernization of port use of information technology in trade. passing entire geographic regions. In infrastructure (box 9.1). TRADING ACROSS BORDERS 83

BOX 9.1 Improving trade efficiency through port and customs automation The ability of ports to ensure timely cargo transfers is a vital dimension of their competitiveness. Efficient ports are not only technologically advanced—using robots and automated container handling—but also employ digital platforms, such as port community systems, to ensure the smooth and reliable transfer of information between all members of the seaport network. Efficient ports generate many economic benefits, including increased trade volume, lower trade costs, and higher employment and foreign investment. Port quality impacts entire supply chains and even the economies of nearby cities.

Studies show the importance of port efficiency for trade facilitation and regional development. According to one study, port effi- ciency is a crucial determinant of shipping costs: improving port efficiency from the 25th to the 75th percentile reduces shipping costs by around 12%. Furthermore, reductions in inefficiencies associated with transport costs from the 25th to 75th percentile imply an increase in bilateral trade of around 25%.a Another study, on the economic impact of the port cluster in Rotterdam, sug- gests that the value added of the port accounts for approximately 10% of regional GDP.b The Le Havre/Rouen port cluster had an even higher share of regional GDP (21%).c Going beyond port automation, data show that, on average, economies with full-time automated processing systems for customs agencies—as well as electronic data exchange platforms—take significantly less time to move exported goods compared to ones where full-time automation is not implemented (see figure). Port and customs automation make the exporting process more efficient. Moreover, data suggest that around-the-clock automated processing systems are a key factor for making border compliance more efficient.

Customs automation at ports/borders allows exporters to save time when dealing with trade logistics

Average export border compliance time (hours) 100

90

80

70

60

50

40

30

20

10

0 Electronic data No electronic data exchange, 24/7 service exchange, no 24/7 service

Sources: Doing Business database; OECD 2015 database. Note: The sample consists of 75 economies. The relationship is significant at the 1% level after controlling for income per capita.

Automation improves reliability, predictability, safety and competitiveness of operations. Ports are land-intensive; automated cranes and vehicles in ports improve the productivity of stacking crane interchange zones, which allows for more efficient land allocation and use. Furthermore, modern automated machinery is fast, economical and low-maintenance and it helps to avoid collisions and other physical damage. Better technology and automation also improves worker safety.c In April 2015 the Patrick terminal at Sydney’s Port Botany optimized the use of AutoStrad, a single piece of equipment that combines stacking and trans- portation capabilities without any human engagement. This technology has made the port safer, more predictable and efficient, ultimately benefiting both users and customers.d

In the global trade logistics environment, where the number of containers is rapidly increasing due to higher international trade volumes, competition among ports to dominate the container market continues to intensify. Ports are complex constructions and changes are not easy to implement. Ports are communities composed of numerous players, both public and private.e Usually port authorities and customs constitute the core of these communities. Other entities include shipping lines, freight forwarders, customs brokers, importers and exporters, all involved in conducting trade. (continued) 84 DOING BUSINESS 2017

BOX 9.1 Improving trade efficiency through port and customs automation(continued) Location is no longer an important differentiator among ports. Now the services ports offer and the added economic value ports provide determine their competitive advantage.f Port efficiency is an integral prerequisite for surviving in the competitive world of trade. Container automation and port community systems can be leveraged to improve efficiency. Given that information sharing is a key element within the port community, information technology capabilities—and port community systems in par- ticular—serve as important differentiators among ports. But container automation can be costly and cause workforce optimiza- tion and therefore its implementation should be carefully weighed. Yet port community systems generate multiple first-hand benefits, including reduced paperwork, better information quality and reliability and safeguarded access to information by all members of the port community.

a. Clark, Dollar and Micco 2004. b. Port cluster means port with multiple functions. c. OECD 2011a. d. Sydney Morning Herald 2015. e. Wrigley, Wagenaar and Clarke 1994. f. van Baalen, Zuidwijk and van Nunen 2008.

In the realm of international trade, and par- Worldwide Governance Indicators’ rule of INFORMATION TECHNOLOGY ticularly in customs clearance procedures, law and control of corruption variables.47 TO FIGHT CORRUPTION corruption can flourish because customs officials control something that firms Economies worldwide have spent Research shows a negative relationship greatly value—access to international decades trying to eradicate corruption in between corruption and investment, markets.43 Research shows that customs international trade, with varying levels of which constrains economic growth.36 officials are particularly prone to accept- success. Many East African economies Corruption is particularly damaging for ing bribes and are more likely to engage are signatories of the World Customs international trade.37 Through advocat- in corruption compared to other sectors Organization (WCO) Arusha Declaration, ing for adherence to international trade of the economy.44 Import and export which is a recognized focal tool of an effec- laws, international organizations have processes are equally affected by corrup- tive approach to tackling corruption and been actively combating corruption in tion. Customs officials can fraudulently increasing integrity in customs for WCO the area of trade.38 Intra-regional trade, overlook import regulations and exonerate members. Nevertheless, corruption and especially in developing economies, goods from inspections while importing, dominance of non-official fees and charg- remains highly vulnerable to fraudulent or abuse their roles of gatekeepers during es remain an important challenge in the and corrupt practices. In economies export procedures.45 region. To enhance integrity in East African with weak institutions and inefficient economies, Kenya, for example, created an governments, the negative effects of Doing Business data show that economies anti-corruption commission tasked with corruption on growth are even more that perform well on the trading across implementing good practices proposed by pronounced.39 Recent studies on borders indicators tend to have lower lev- the Revised Arusha Declaration and the intra-regional trade in Africa demon- els of corruption (figure 9.3). For example, WCO Integrity Development Guide and strate that corruption coupled with there is a strong positive association Compendium of Integrity Best Practices. weak institutional frameworks poses between the economies’ distance to The Arusha Declaration explicitly recog- major obstacles to the development frontier score in the trading across borders nizes the automation of trade processes, of trade flows within the Economic indicators and their score in Transparency including electronic data interchange, and Monetary Community of Central International’s Corruption Perceptions as powerful anti-corruption tools.48 Africa.40 Corruption can alter natural Index.46 Similarly, the distance to frontier trade flows and cause various market score on the trading across borders Increased trade digitalization, which mini- distortions by, for example, causing indicators is strongly and negatively corre- mizes human interactions, creates fewer substantial delays in the delivery of lated with the percentage of firms that are opportunities for bribery and fraud. The goods. To extract bribes, corrupt civil expected to give gifts to obtain an import Philippines successfully fought corruption servants create additional interruptions license. The distance to frontier score in its customs services by adopting sys- and constraints in an otherwise well- tends to be higher in economies where tems that limit in-person interactions and functioning system.41 The literature sug- fewer firms need to offer a bribe to get by imposing heavy penalties on corrupt gests that even when businesses pay things done. Performance on the trading officials. Its approach relied on the use of bribes, they still face high time delays across borders indicators is also strongly modern technology to reengineer the cus- and experience greater capital costs.42 and significantly correlated with the toms services operating environment.49 TRADING ACROSS BORDERS 85

implement good practices, corrup- FIGURE 9.3 A good performance on the trading across borders indicators is tion is still prevalent in many customs associated with lower levels of corruption departments in Sub-Saharan Africa. In Distance to frontier score for trading across borders (0–100) economies where anti-corruption reforms have failed, customs officials are often 100 torn between bureaucratic norms and the expectations of their networks and 80 surroundings. In some African economies, a kinship-based social organization that 60 combines moral obligation and attach- ment is strong, making corruption more 40 present and acceptable.55

20 Mozambique launched an extensive customs reform program in 1995 to 0 20 40 60 80 100 modernize the customs department and Corruption Perceptions Index (0-100) tackle corruption. Customs operations did not have any substantial information technology support before the reform was Distance to frontier score for trading across borders (0–100) implemented. Despite considerable prog-

100 ress, Mozambique still needs to develop further its existing information technol- 80 ogy infrastructure to deal effectively with corruption and smuggling. Corruption is 60 also a challenge in the customs adminis- tration in Uganda. The Uganda Revenue 40 Authority has been implementing various solutions to fight corruption, such as 20 requiring officials to declare their assets, increasing salaries and providing training 0 on integrity.56 Uganda recently introduced 20 40 60 80 100 a modernized version of the ASYCUDA Firms expected to pay bribe for import license (%) World system, but its impact on fighting

Sources: Doing Business database; Enterprise Surveys database (http://www.enterprisesurveys.org), World Bank; corruption remains to be seen. Transparency International data (https://www.transparency.org/cpi2015/results). Note: The results are significant at the 1% level after controlling for income per capita. A higher score on Transparency International’s Corruption Perceptions Index indicates a lower level of perceived corruption. Data for the Corruption Perceptions Index are for 2015. The samples include 146 economies covered by both Transparency CONCLUSION International and Doing Business and 121 economies covered by the Enterprise Surveys and Doing Business.

Implementing a single window is not an As a result of the anti-corruption reforms, rampant corruption problem. A key step easy undertaking. The complex process about 70% of imports to the Philippines to tackling corruption in the Georgian cus- requires extensive cooperation and are now processed through the “green toms was the introduction of a one-stop coordination among multiple players, channel” within just two hours.50 Similarly, shop system that reduced face-to-face and it can take several years for new single window systems—which limit the interactions between entrepreneurs and electronic platforms to become fully monopoly power of customs agents—can customs officials.53 operational and used by the majority of be implemented to deter corruption in traders. However, the long-term benefits customs services.51 The automation and The introduction of computerized substantially outweigh the costs and the digitalization of administrative systems solutions for processing customs docu- actual integration of single windows or largely eliminates the monopolistic power ments—and the general automation of similar systems can be done in phases. of customs officials.52 Similarly to the case customs clearance—leaves little to the Most economies start with relatively of the Philippines, prior to 2003 the cus- discretion of customs officials, thereby simple electronic exchange solutions and toms department as well as other admin- reducing opportunities for corruption.54 progressively make systemic upgrades istrations and agencies in Georgia faced a However, despite myriad efforts to and expansions. Port automation and 86 DOING BUSINESS 2017

modernization is an important milestone 7. For more information on the Automated 27. Neo and Leong 1994. System for Customs Data (ASYCUDA), see its 28. OECD 2009. that economies can work toward to website at http://www.asycuda.org/. 29. The Swedish single window also connects improve their competitiveness. 8. WTO 1998b. customs to the National Board of Trade, the 9. Elms and Low 2013. Swedish Board of Agriculture, the National 10. WTO 2013a. Inspectorate of Strategic Products, the National The integration of single windows 11. Wilson, Mann and Otsuki 2003. Engman 2005. Board of Taxation, the National Debt Office, the into international trade processes and 12. Sabbagh and others 2013. Booz & Company’s Swedish police, Norwegian customs, Russian improved port automation can aid econo- Digitization Index is a composite score that customs and the European Commission. calculates the level of an economy’s digitization 30. See the website of the Swedish customs mies in combating corruption. Corruption using 23 indicators to measure six attributes: service at http://www.tullverket.se/. remains a major problem in international ubiquity, affordability, reliability, speed, usability 31. UNECE 2005. trade. It perpetuates delays and inefficien- and speed. The Digitization Index measures 32. The members of the Association of Southeast an economy’s level of digitization on a scale Asian Nations are: Brunei Darussalam, cies, increases costs and ultimately has a of 0 to 100, with 100 signifying the most Cambodia, Indonesia, the Lao People’s negative impact on economic growth and advanced, to identify its distinct stage of Democratic Republic, Malaysia, Myanmar, the development. Customs departments are digital development: constrained, emerging, Philippines, Singapore, Thailand, and Vietnam. transitional or advanced. 33. USAID 2012. especially prone to corruption, as customs 13. Sá Porto, Morini and Canuto 2015. 34. The members of Red VUCE (Inter-American officials often hold important decision- 14. Carballo, Schaur and Volpe Martincus 2015. Network of International Trade Single making powers in the international trade 15. UN/CEFACT 2005. Windows) are: Argentina, The Bahamas, 16. Tsen 2011. Barbados, Belize, Bolivia, Brazil, Chile, process. The digitalization of customs 17. Tsen 2011. Colombia, Costa Rica, Dominican Republic, procedures is an efficient tool for tackling 18. World Bank 2015c. Ecuador, El Salvador, Guatemala, Guyana, corruption; it is most effective when 19. Macedo and Scorza 2013. Haiti, Honduras, Jamaica, Mexico, Nicaragua, 20. Grainger 2008. Panama, Paraguay, Peru, Suriname, Trinidad integrated into larger anti-corruption cam- 21. UNECE 2005. The costs of establishing a and Tobago, Uruguay and República paigns. Modern information technology single window can vary greatly depending Bolivariana de Venezuela. infrastructure not only reduces opportuni- on the information technology interface, the 35. Red VUCE 2014. Inter-American Network of level of sophistication, the number of adopted International Trade Single Windows meeting ties for corruption but also has a gener- modules and overall trade volumes. in Cusco, Peru. ally positive impact on the entire trade 22. Duval 2006; Moise, Orliac and Minor 2011. 36. Mauro 1995. process, thereby benefitting economic The Duval 2006 study lists the following 37. Dreher and Herzfeld 2005. 12 common trade facilitation measures: 38. Parisi and Rinoldi 2004. development overall. alignment of trade documents according 39. Meon and Sekkat 2003 and Lopez-Claros 2015. to the UN Layout Key for trade documents; 40. Avom and Fankem 2014. The members of online publication of relevant trade data; the Central African Economic and Monetary establishment of enquiry points and single NOTES Community (CEMAC) are Cameroon, the national focal points for trade regulations and Central African Republic, Chad, Equatorial other trade facilitation issues; establishment Guinea, Gabon and the Republic of Congo. This case study was written by Cécile Ferro, Marilyne of a national trade facilitation committee; 41. Myrdal 1968. Florence Mafoboue Youbi, Dorina Peteva Georgieva, provision of advance rulings; establishment 42. Kaufmann and Wei 2000 and Freund, Valentina Saltane and Inés Zabalbeitia Múgica. of an effective appeal procedure for customs; Hallward-Driemeier and Rijkers 2014. establishment of a single window system; 1. World Customs Organization 2015. 43. Dutt and Traca 2010. establishment and systematic use of pre- 2. WTO 1998a. Trade facilitation is defined 44. Rose-Ackerman 1997. arrival clearance mechanism; implementation by the WTO as “The simplification and 45. Dutt and Traca 2010. of modern risk management systems; harmonization of international trade 46. A higher score on the Corruption establishment and wider use of audit-based Perceptions Index indicates a lower level of procedures, where trade procedures are the customs; expedited clearance of goods and perceived corruption. activities, practices, and formalities involved expedited procedures for express shipments 47. World Bank 2015c. The rule of law variable in collecting, presenting, communicating, and qualified traders/companies. “reflects perceptions of the extent to which and processing data and other information 23. UNECE 2005. agents have confidence in and abide by the required for the movement of goods in 24. Maniego 1999. “Green channel” clearance international trade.” of goods refers to the process of customs rules of society, and in particular the quality 3. In Doing Business 2017 the trading across clearance without routine examination of the of contract enforcement, property rights, the borders indicators collect data on the status of goods. “Green channel” status is provided police, and the courts, as well as the likelihood implementation of the following components only to certain traders and products that meet of crime and violence.” The control of of single window systems in 190 economies: the eligibility requirements set by customs corruption variable “reflects perceptions of the physical one-stop shop; customs electronic authorities. Eligibility requirements may extent to which public power is exercised for data interchange system; port or border include, but are not limited to: government- private gain, including both petty and grand integration; other governmental agencies approved list of companies and products, forms of corruption, as well as “capture” of the integration; national single window; regional top importers in terms of duty payment and state by elites and private interests.” single window. traders who have an impeccable record. 48. World Customs Organization 1998. 4. UNCTAD, “Saving one hundred billion dollars Moving goods through the “green channel” 49. Parayno 2013. annually by the year 2000.” United Nations that are not part of an economy’s list of “green 50. Parayno 2004. International Symposium on Trade Efficiency, channel” products constitutes a customs 51. Ndonga 2013. Columbus, Ohio, Fact Sheet # 5. 1994. offense that carries administrative and in 52. McLinden 2005. 5. See the website of Colombia’s some cases criminal liability. 53. World Bank 2012b. Superintendencia de Industria y Comercio 25. Fernandes, Hillberry and Mendoza 54. Crotty 2010. available at http://www.sic.gov.co/drupal/. Alcantara 2015. 55. Fjeldstad 2009. 6. UNCTAD, “The ASYCUDA Programme.” 26. World Bank 2013a. 56. de Wulf and Sokol 2004.