DP World Komatipoort – Handles First Import

Trade solutions multinational DP World has completed the first transit import through the DP World Maputo port, in Mozambique, to DP World Komatipoort, in South Africa.

This is a significant milestone as it demonstrates that the Maputo port can be seamlessly used as a gateway to South Africa, the company says.

International container imports landed in the Maputo port and destined for the South African hinterland can be moved under bond to Komatipoort where full customs clearance can be provided and made ready for delivery across South Africa.

“The Komatipoort facility as a bonded container depot is a game changer for the Maputo Corridor. The success of the trial brings DP World a step closer to enabling a more cost effective, seamless and efficient user experience for our local customers and enhances trade linkages for countries in the Southern African region,” DP World Maputo CEO Christian Roeder says.

Currently, in South Africa, 69% of maritime imports are transported through the Port of Durban. Local customers now have the option to consider using the Maputo port as a gateway to transport their international freight to Komatipoort where it can be cleared more easily and efficiently for customers based in and around Gauteng.

DP World Komatipoort has a full-service offering and links via the Maputo Corridor to DP World Maputo’s modern and efficient container terminal where there is no vessel and port congestion, as well as fixed berthing windows available to major shipping lines, which provides customers with transport savings and avoids delays for consignees in Mpumalanga, Limpopo and Gauteng.

Once a shipment is retrieved at the DP World Maputo port, the organisation handles the entire supply chain process from there to Komatipoort without delay and beyond to various areas in the hinterland. While the cost of this service varies per user, the service is estimated to be equivalent in costs or cheaper compared to traditional routing through Durban.

However, it is more efficient, especially for the northern areas of the country, DP World note.

Source: Engineering News, Schalk Burger, 3 May 2021

EU – Import Control System 2 (ICS2)

The European Union makes it a top priority to ensure the security of its citizens and single market. Every year trillions of Euros worth of goods are imported into EU, with the EU-27 now accounting for around 15 % of the world’s trade in goods. The European Union is implementing a new customs pre-arrival security and safety programme, underpinned by a large-scale advance cargo information system – Import Control System 2 (ICS2). The programme is one of the main contributors towards establishing an integrated EU approach to reinforce customs risk management under the common risk management framework (CRMF).

The pre-arrival security and safety programme will support effective risk-based customs controls whilst facilitating free flow of legitimate trade across the EU external borders. It represents the first line of defence in terms of protection of the EU internal market and the EU consumers. The new programme will remodel the existing process in terms of IT, legal, customs risk management/controls and trade operational perspectives.

The EU’s new advance cargo information system ICS2 supports implementation of this new customs safety and security regulatory regime aimed to better protect single market and EU citizens. It will collect data about all goods entering the EU prior to their arrival. Economic Operators (EOs) will have to declare safety and security data to ICS2, through the Entry Summary Declaration (ENS). The obligation to start filing such declarations will not be the same for all EOs. It will depend on the type of services that they provide in the international movement of goods and is linked to the three release dates of ICS2 (15 March 2021, 1 March 2023, and 1 March 2024).

Advance cargo information and risk analysis will enable early identification of threats and help customs authorities to intervene at the most appropriate point in the supply chain.

ICS2 introduces more efficient and effective EU customs security and safety capabilities that will:

  • Increase protection of EU citizens and the internal market against security and safety threats;
  • Allow EU Customs authorities to better identify high-risk consignments and intervene at the most appropriate point in supply chain;
  • Support proportionate, targeted customs measures at the external borders in crisis response scenarios;
  • Facilitate cross-border clearance for the legitimate trade;
  • Simplify the exchange of information between Economic Operators (EOs) and EU Customs Authorities.

For more information on the ICS2 programme, refer to the EU Webpage here!

Source: European Union

New WTO handbook sheds light on the Technical Barriers to Trade Agreement

A new WTO publication, launched on 22 February, provides an overview of the purpose and scope of the WTO Agreement on Technical Barriers to Trade (TBT Agreement), the types of measures it covers and its key principles. Prepared by the WTO Secretariat, this new edition in the “WTO Agreements” series aims at enhancing understanding of the TBT Agreement.

The TBT Agreement entered into force with the establishment of the WTO on 1 January 1995. It aims to ensure that product requirements in regulations and standards — on safety, quality, health, etc. — as well as procedures for assessing product compliance with such requirements (testing, inspection, accreditation, etc.) are not unjustifiably discriminatory and do not create unnecessary obstacles to trade. The Agreement also emphasizes the importance of transparency and strongly encourages the use of international standards as a basis for harmonizing regulations across WTO members. 

The handbook sets out the key principles of the TBT Agreement and discusses how these have been addressed in recent disputes brought under this Agreement. The publication looks into requirements on transparency, a cornerstone of the TBT Agreement, and describes the mandate, role and work of the TBT Committee. It also considers how TBT‑related matters have been tackled in negotiations at the WTO. 

The handbook also contains the full text of the TBT Agreement, as well as a compilation of all decisions and recommendations adopted by the TBT Committee since its creation in 1995. 

“Standards and regulations are among the most important types of trade-related measures used around the world. Crafting them carefully, in line with the disciplines of the WTO Agreement on Technical Barriers to Trade, can help governments achieve important policy objectives, including safeguarding human health and safety, as well as protecting the environment — and this without unnecessarily disrupting trade. This Handbook is a must-read for anyone interested in these issues,” says Deputy Director-General Alan Wolff in a foreword to the handbook.

The publication contains many substantive updates, changes and additions as compared to previous editions (this is the 3rd edition). It can be downloaded here. Printed copies can be purchased from the WTO’s Online Bookshop.

Other publications in this series cover the Agreement on Agriculture and the Agreement on the Application of Sanitary and Phytosanitary Measures.

International Customs Day 2021

Once again, the Customs community comes together, united in celebrating International Customs Day, which officially falls on 26 January of each year. This special day enables WCO Members, the WCO Secretariat and Customs’ worldwide partners to dedicate themselves to taking forward a particular theme. Thus, throughout 2021, under the slogan “Customs bolstering Recovery, Renewal and Resilience for a sustainable supply chain,” the Customs community will be focusing on emerging from the global pandemic and support people and businesses by strengthening the global supply chain, reinforcing collaboration, harnessing technology and putting “people” at the centre of the transformation process.

Indeed, as Customs will be moving to reconstruction in the wake of COVID-19, Members will be invited to embrace digital transformation at the borders, paying particular attention to automation, the use of innovative technologies, and the adoption of collaborative approaches with all stakeholders along the supply chain.

Customs, being uniquely positioned and mandated at borders, can contribute to a sustainable supply chain in the following ways:

  • Reinforcing collaboration to drive the Recovery process. The economic impact of the pandemic on companies has been colossal, with considerable disruption of global supply chains. The herculean task of reconstruction cannot be undertaken in isolation, and the expertise of all border agencies and stakeholders will be a decisive factor. Customs will be called upon to demonstrate its leadership during this process, at the national and international levels. The COVID-19 crisis has demonstrated that coordinated border management is possible, efficient, and can be further institutionalized at international and national levels. The sound implementation of the SAFE Framework of Standards, including the AEO standards and cooperation with other government agencies, appears to be a relevant focus in this context. Given the increase in e- commerce observed during the COVID-19 period, it would be timely for Members to implement the WCO E- Framework of Standards on Cross-Border E-Commerce in order to address security and facilitation in the context of this emerging supply chain trend, in close collaboration with stakeholders.
  • Embracing advanced technologies to enable Renewal rather than return to how things were before. The COVID-19 pandemic has shown the importance of major innovative and technological concepts which the WCO has been promoting for years. These include all-digital and paperless clearance methods, and the use of technology for implementing effective controls and facilitating, enhancing and accelerating processes. Irrespective of the pandemic, Customs administrations have been sensitized – through specialized forums and conferences – about thebenefits that can be reaped from the integration of technologies based on the use of big data, telematics and the Cloud into Customs operations. Building on the lessons learned, Customs administrations should look at the way goods are cleared at borders from a fresh perspective. Non-intrusive inspection devices, blockchain, artificial intelligence, sensors and connected objects, and other technological advances offer tangible benefits in terms of collecting, combining, sharing and analysing data, and these benefits should be maximized.
  • Putting “people” at the centre of change for a Resilient and sustainable supply chain. In order to address the vulnerability of Customs to systemic risks such as pandemics, Customs administrations will be called upon to build on the lessons learned and ensure that no one is left behind as we move towards a deeper transformation. To create greater resilience, “people” should be at the centre of the recovery model. Citizens around the globe have changed their daily lives drastically to adapt to the new reality. By the same token, Customs are called upon to rethink and adapt the way they operate, and enhance the preparedness of their staff through awareness raising and capacity building for the provision of a professional service. At the same time, resilience cannot be achieved without integrity, diversity and inclusion. A lack of integrity in Customs can distort trade and investment opportunities, undermine public trust in government administration and ultimately jeopardize the wellbeing of citizens, which in times of recovery could prove to be a recipe for failure.

The WCO will continue to provide guidance, help to share best practices and information, and deliver capacity building and technical assistance support to Members for the achievement of the above goals.

As in previous years, I am fully convinced that Customs administrations and the wider Customs community will rise to the occasion, fully committed to actively promoting their efforts and activities aimed at bolstering “Recovery, Renewal and Resilience for a sustainable supply chain” that includes sharing relevant practices and activities with others at WCO meetings and in key WCO publications.

Wishing you all a happy International Customs Day!

Dr. Kunio Mikuriya

WCO Secretary General

26 January 2021

New Version of the WCO DM (version 3.10.0) released

The WCO, through the Data Model Projects Team (DMPT), maintains the WCO Data Model (WCO DM) and produces annual releases to keep the WCO DM up to date. The maintenance processes were undertaken in accordance with the WCO DM Maintenance Procedure that enables WCO DM users, including WCO Members, partner government agencies, and other international organizations to submit Data Maintenance Requests (DMRs) to the DMPT for its consideration. From September 2019 (55th Meeting) to June 2020 (57th Meeting) the DMPT has received 33 DMRs submitted by Members and approved 21. All of those approved DMRs were incorporated in the WCO DM and released as version 3.10.0. 

The WCO DM version 3.10.0 is an iteration of the overall version 3 series. The version maintains the core scope of version 3 datasets, which cover not only data requirements for Customs import/export/transit procedures, but also Customs’ partner government agencies in the context of a Single Window environment for supporting regulatory digital collaboration. As such, version 3.10.0 of the WCO DM consists of datasets that are useful to facilitate submission of regulatory data requirements by traders (i.e., Business to Government (B2G) Declaration, such as import declaration, cargo report, transit declaration, etc.); electronic certification (i.e., Licences, Permits, Certificates, and other kinds of electronic documents – LPCO); regulatory notifications or responses (G2B; and Inter-Governmental data exchange (i.e., INTERGOV – G2G). Being a part of the version 3 series, the new version also maintains backward compatibility to the previous versions.

Further information on the WCO DM can be found on http://wcoomd.org/DataModel. The publication packages of the WCO DM could be found in its e-Handbook1. Any inquiry on how to access the publication package could be addressed to dm@wcoomd.org.

1http://www.wcoomd.org/en/topics/facilitation/instrument-and-tools/tools/data-model/ehandbook.aspx

Source: World Customs Organisation

HMRC – Border Operating Model with the EU

From 1 January 2021, the transition period with the European Union (EU) will end, and the United Kingdom (UK) will operate a full, external border as a sovereign nation. This means that controls will be placed on the movement of goods between Great Britain (GB) and the EU.

The UK Government will implement full border controls on imports coming into GB from the EU. Recognising the impact of coronavirus on businesses’ ability to prepare, the UK Government has taken the decision to introduce the new border controls in three stages up until 1 July 2021.

Her Majesty’s Revenue & Customs (HMRC) published the first iteration of the Border Operating Model in July 2020, setting out the core model that all importers and exporters will need to follow from January 2021 as well as the additional requirements for specific products such as live animals, plants, products of animal origin and high-risk food not of animal origin. We also provided important details of Member State requirements as traders and the border industry will need to ensure they are ready to comply with these, and not just Great Britain (GB) requirements. Indeed, as set out in the recently published ‘Reasonable Worst Case Scenario’ assumptions, it is largely the level of readiness for Member State requirements which will determine whether there is disruption to the flow of goods at the end of the transition period. This is why we have included additional signposting to those requirements throughout the document, and are encouraging all GB businesses not just to ensure their own readiness but also the readiness of EU businesses to whom they export, and throughout their supply chains.

Since July, the HMRC has worked closely with industry to further develop plans for the end of the transition period, and also to respond to industry questions since the publication of the first iteration of the Border Operating Model. This latest iteration of the Border Operating Model provides additional information in a number of key areas as set out below as well as clarifying a number of questions from industry.

You can access the HMRC Border Operating Model here.

UN Special Recommendation No.33 – Guidelines for Single Window : 2020 Edition

In many countries, companies involved in international trade must prepare and submit large volumes of information and documents to governmental authorities to comply with import, export and transit-related regulatory requirements. Often, this information and documentation must be submitted to several different agencies, each with their own specific (manual or automated) systems and paper forms. These extensive requirements, together with their associated compliance costs, can constitute a serious burden to both Governments and the business community and represents a serious barrier to the development of international trade.

One approach to addressing this problem is the establishment of a Single Window federating all relevant government administrations whereby all trade related information and/or documents need only be submitted once at a single entry point. This can enhance the availability and handling of information, expedite and simplify information flows between trade and government and can result in greater harmonization and sharing of the relevant data across governmental systems, bringing meaningful gains to all parties involved in cross-border trade. The use of such a facility can result in the improved efficiency and effectiveness of official controls and can reduce costs for both Governments and traders due to better use of resources.

The Single Window is therefore a practical application of trade facilitation concepts meant to reduce non-tariff trade barriers.

Download the Guidelines here!

Source: United Nations

Harmonised Message Structures for International Forwarding and Transport Messages on the way

NEWS From the GEFEG Blog

UN COVID-19 project to support data exchange for international supply chain processes

The emergence of COVID-19 has shown an increased demand for coordination, efficient planning, modelling and risk control in many areas. The United Nations Economic Commission for Europe (UNECE) and its trade related United Nations Centre for Trade Facilitation and Electronic Business (UN/CEFACT) are strongly supporting multilateral engagement for interoperable cross-border standards, such as UN/CEFACT Data exchange Standards.

Multi-Model Transport Reference Data Model Ready for use

Many current regulations, standards, instructions and business capacity-building measures are available already. The comprehensive Multi-modal Transport Reference Data Model (MMT RDM) covers the requirements of international forwarding and transport, including related trade, insurance, customs and other regulatory documentary requirements based on the integration of trade facilitation best practices, developed by UN/CEFACT.

COVID-19 Project lead by GEFEG: Development of a standardised data set for the Transport sector

On behalf of the UN, GEFEG provides the project lead for the COVID 19 project. The project concentrates on ensuring the flow of goods and the transport across the various transport modes. Its overall objective is to set up a multi-modal harmonized set of mainly transport documents as a profile of the UN/CEFACT Multi-modal Transport Reference Data Model (MMT RDM).

The data sets developed include seven electronic exchange messages such as Booking Instruction, Shipping Instruction, Waybill, Bill of Lading, Packing List, Status Messages, Rapid Alert Security Food and Feed (RASFF) and their Business Requirement Specifications (BRSs). It has been checked that every data element with the same name also has the same semantic meaning.

The new profile of the MMT RDM will build a bridge to the already existing electronic exchange formats and allow a better use of state-of-the-art technologies such as block chain and APIs regarding the different transport modes.

Focusing on the different transport modes in the next phase

Additional information will be collected in the next phase, with a stronger focus on the different modes of transport. Results will be reported back to the Multi-modal Transport RDM and change processes initiated regarding relevant yet missing information in the MMT RDM. And last but not least, profiles of the MMT for the different modes of transport, such as air, rail, road, and maritime will be published.

Michael Dill, CEO of GEFEG is looking forward to welcome further participants in the project: It will be important to get advice and hints on any missing data requirements across the various modes of transport! I would like to encourage colleagues involved in transport processes to join the next phase of the project. Your valuable input and expert knowledge would be very much appreciated.”

Interested parties wishing to participate in the project should contact info@gefeg.com with subject detail: New Participant in COVID-19 project.

Source: GEFEG News Blog, dated 16 September 2020

DTIC Launches New Support System to Address SA’s Export Barriers

The Department of Trade, Industry and Competition (the dtic) launched the Export Barriers Monitoring Mechanism (EBMM) that will put South Africa in a strong position to provide the type of consistent, ongoing support that is needed to continuously improve the country’s export environment. The Department’s e Deputy Director-General of Export Development, Promotion and Outward Investments, Ms Lerato Mataboge said the fundamental aim of EBMM is to make the government’s support to exporters facing barriers more effective, more flexible, and more accessible.

By creating a systematic approach to monitoring these barriers, the government can develop a long-term agenda to target the most important export barriers. By addressing each individual barrier, government can begin to manage each problem with the level of nuance and detail needed for these complex challenges.

During an initial pilot project, 28 key export barriers were processed by the EBMM and during the initial phase of the national lockdown, the EBMM methodology was used to process 76 barriers related to COVID-19. From today, the EBMM is open to any firm that encounters an export barrier of any kind, whether locally or in any foreign market.

In 2018, South African exporters faced an estimated 154,571 unique customs requirements worldwide. Over the last ten years, 23,795 new or amended technical barriers to trade have been registered with the World Trade Organisation; while over the same period 13,364 sanitary and phytosanitary barriers were registered or amended.

DTIC’s priority is to work progressively to smooth these barriers, the experience of the last decade of trade has demonstrated that we need to be prepared to manage this growing complexity. Increasingly, a key component of global competitiveness will be how we manage a constantly changing global trading environment. Managing this environment will only be possible through a close working partnership between the government and the private sector.

Speaking at the same launch, the Executive Director of the South African Electrotechnical Export Council, Ms Chiboni Evans, highlighted the importance of maximising content and projects in the African continent, and the important role played by export barriers in reducing competitiveness in the region.

Persistent logistics barriers meant that transporting goods by road took longer from all our major cities to mines in the Southern African Development Community (SADC) region. It was then easy for these countries to import goods from Asia, Americas and Europe rather than waiting on South Africa.

Highlighting previous experiences of partnering with the dtic to resolve export barriers, Ms Evans noted that a lot of the barriers to export can only be resolved by the private sector working together with government. She added that this new mechanism will assist greatly in opening up government support to a much broader spectrum of private sector individuals.

All export barrier queries can be reported to ExportBarriers@thedtic.gov.za or through the the dtic website.

Source: The Department of Trade, Industry and Competition, August 31, 2020

U.K. Starts Research on Brexit Customs System Due in Four Months

Marcin Jozwiak – Uplash

The British government has started to conduct research on its new post-Brexit customs IT system, with four months left before the service is due to go live.

Her Majesty’s Revenue & Customs, which is in charge of handling the new customs paperwork that will apply to UK-EU trade from 2021, has invited hauliers to participate in rounds of remote-user testing in the coming months for its Goods Vehicle Movement Service (GVMS), according to a memo to the freight forwarding industry.

The GVMS – which is set to be used to police cross-Irish Sea trade from Jan 1 2021, and then all UK-EU goods flows from July – will give freight companies a unique reference number that proves that they have filed the necessary post-Brexit paperwork, such as customs declarations.

Without a reference from the GVMS, trucks will not be allowed to cross between the UK and EU.

The fact that the GVMS is still in the research and design phase less than 90 working days before it is due to be introduced is a cause for concern in the logistics industry: one freight forwarder, who spoke under condition of anonymity, said they are worried the service won’t be completed and functional on time.

The new system will be required even if Britain and the EU sign a free-trade agreement.

And while consultation with the industry is welcome, it would have been preferable to do such research during the system design process, said Anna Jerzewska, founder of Trade and Borders, a customs and trade consultancy.

“The Government has made it clear that GVMS is unlikely to be ready for January 1 and as far as we understand there will be back-up procedures in place,” she said.

“It will be crucial to ensure that such alternatives are available in places where traffic management will be important,” she said, citing Kent and the Irish Sea.

In the memo, HMRC says it wants to start the first round of testing “ASAP” due to the shortage of time.

The tests will involve hour-long video calls where hauliers try prototypes and give feedback.

“When designing a system that the industry will be using, it is important we work in partnership with them to make sure it suits their and our needs,” HMRC said by email.

“We will continue to develop our systems in readiness for the end of the transition period and when full border controls are implemented from July 2021.”

Source: Bloomberg, article authored by Joe Mayes, 28 August 2020

World Bank suspends ‘Doing Business’ rankings after fraud

The World Bank has suspended its Doing Business report, which ranks countries based on the costs of doing business. It is the latest crisis to beset the institution.

“A number of irregularities have been reported regarding changes to the data in the Doing Business 2018 and Doing Business 2020 reports,” the global institution said in a statement on August 27.

The institution said it had informed the authorities of the most affected countries, but did not name them. “We will act based on the findings and will retrospectively correct the data of countries that were most affected by the irregularities,” the statement added.

The Wall Street Journal reported that data on China, Azerbaijan, the United Arab Emirates and Saudi Arabia “appeared to have been inappropriately altered.”

If confirmed, the revised data could affect the rankings of the five countries. The latest report, for example, showed vast improvement among Middle Eastern economies with Saudi Arabia climbing 30 places.

The latest report, published last year, ranked Togo and Nigeria among the 10 countries that had shown the most improvement and collectively accounted for “one-fifth of all the reforms recorded worldwide.”

There are no reports that the scores of either country were tampered with.

In the report, only two Sub-Saharan economies, Mauritius and Rwanda, ranked among the top 50. Kenya, South Africa, Zambia, Botswana, and Togo ranked among the top 100 while South Sudan, Eritrea and Somalia ranked among the lowest globally.

The decision to suspend the rankings is also likely to reignite controversy around the annual report, particularly in the methodologies behind the rankings.

In the 17 years it has been published, the Doing Business reports have amassed “surprising influence over global regulatory policies,” researchers wrote in a paper published in 2019. The researchers found that the rankings strongly affect policy as governments make reforms to improve their ranking.

“Changes over time in the Doing Business rankings are not particularly meaningful. They largely reflect changes in methodology and sample—which the World Bank makes every year, without correcting earlier numbers—not changes in reality on the ground,” Researchers at the Center for Global Development wrote in February 2018.

In June, the Bretton Woods institution appointed Carmen Reinhart as its new chief economist. Reinhart’s two predecessors, Penelope Koujianou Goldberg and Paul Romer, resigned after less than two years on the job. Pinelope Goldberg quit in February, effective 1 March.

Romer quit in January 2018 after igniting a controversy around Chile’s ranking in the Ease of Doing Business Report, which he suggested may have been deliberately lowered under the presidency of left-leaning Michelle Bachelet.

The World Bank is also struggling to counter the fallout from the publication of an internal paper that looks at elite capture of foreign aid.

Source: The Africa Report, 28 August 2020

WTO: COVID-19 related restrictions on cross-border mobility are affecting global trade

A new information note published by the WTO Secretariat highlights how trade in goods and services has been affected by temporary border closures and travel restrictions linked to the COVID-19 pandemic.

It describes how the cross-border mobility of individuals plays an important role in both the cross-border provision and consumption of services and in manufacturing value chains.  

The paper notes that sweeping travel barriers introduced in the early stages of the pandemic have given way to more fine-tuned policies aimed at allowing through “essential” foreign workers, or creating quarantine-free “travel bubbles” among partners. Nevertheless, mobility barriers have had a particularly heavy impact on tourism and education services, as well as on trade in goods, due to their effect on transport services and on information and transaction costs.

The paper notes that international cooperation has a potentially important role to play in minimizing the economic impact of mobility restrictions. For instance, exchanging information on lessons learnt about mobility restrictions and trade could help WTO members foster greater resilience in the face of future crises. Such an exercise could help with identifying options to implement travel measures that meet public health protection objectives while minimizing the negative effects on trade.

Key points

  • International trade and investment have always relied on the cross-border mobility of individuals. 
  • To contain the spread of COVID-19, many WTO members imposed temporary border closures and travel restrictions. The severe restrictions on cross-border movement are not motivated by trade considerations but by public health reasons. Nevertheless, they have had a significant impact on trade. In several members, initial sweeping travel barriers have been replaced by more fine-tuned policies, aimed at allowing the movement of “essential” foreign workers, or creating “travel bubbles” permitting quarantine-free mobility among partners. 
  • A significant amount of services trade requires physical proximity between producers and consumers. International mobility to consume or provide services abroad is one way to attain this proximity. Mobility is also important to the operations of services providers who establish a commercial presence in other countries, as well as to those who ordinarily provide services remotely across international borders. 
  • Border measures and travel restrictions have had a particularly heavy impact on sectors such as tourism and education services. COVID-19 has triggered an unprecedented crisis for the tourism sector. In terms of travellers and revenue, international tourism in 2020 is expected to register its worst performance since 1950. In higher education, some institutions are facing a potential drop in international student enrolment of 50 to 75 per cent. 
  • Mobility barriers also significantly affect trade in goods, through their impact on transport services and on information and transaction costs. 
  • Restarting international mobility is unlikely to proceed in a linear fashion. Given the crossborder spill-overs resulting from measures affecting transnational mobility, a case can be made for supplementing domestic action with international cooperative efforts. WTO members may eventually wish to look into building greater preparedness and resilience for future crises, for example starting with information exchange about lessons learnt about mobility restrictions and trade. The exercise could help with identifying ways to implement travel measures that meet public health protection objectives while producing the least trade distortive effects.

The report can be found here!

Source: World Trade Organisation

South Africa – President signs Border Management Authority Bill into Law

President Cyril Ramaphosa has signed the Border Management Authority Bill of 2020 into law.

The new legislation is in force from today, 21 July 2020.

The legislation addresses a need identified by government and diverse stakeholders in the economy for an integrated and well coordinated border management service that will ensure secure travel and legitimate trade in accordance with the Constitution and international and domestic law. 

The new Border Management Authority will, as an objective of the Act, replace the current challenge of different agencies and organs of government all playing different roles in managing aspects of border control.

The integrated Authority will contribute to the socio-economic development of the Republic and ensure effective and efficient border law enforcement functions at ports of entry and borders.

The new law provides for the establishment, organisation, regulation, functions and control of the Border Management Authority, the appointment of its Commissioner and Deputy Commissioners and officials.

The law also provides for their terms of office, conditions of service and functions and powers.

Furthermore, the law provides for the establishment of an Inter-Ministerial Consultative Committee, Border Technical Committee and advisory committees, for the review or appeal of decisions of officers, and the definition of certain things offences and the levying of penalties.

The legislation therefore contributes to the security of the country and the integrity and ease of trade and the general movement of persons and goods in and out of the country.

Source: The Presidency, Pretoria, 21 July 2020

The Illicit Tobacco Trade in Zimbabwe and South Africa

The following report (Working Paper) was issued in March 2019, a while back, but should not be considered too outdated for analysis and consideration, nevertheless.

A study was conducted to explore how the illicit trade in licit goods supports organized crime, corruption, and erodes state structures. The illicit tobacco trade in southern Africa occupies a prominent place in southern African politics, due to its prominent role in the ‘state capture’ scandals that characterized politics in South Africa between 2013 and 2018. Indeed, the illicit tobacco trade occupies a prominent place in public debate in South Africa, both about crimes that may have been committed in the last five years, and about how the current administration responds to the illicit economy right now.

The study maps the key dimensions of the illicit cigarette trade in Zimbabwe and South Africa, including the key actors, the pathways of trade and the accompanying ‘modalities’ of criminality, as well as other important dimensions of the illicit cigarette market in southern Africa. It then identifies ‘good-faith actors,’ primarily in South Africa, whose positions could be strengthened by policy and technical interventions, explores opportunities for such intervention, and assesses the practi- cal solutions that can be applied to combat illicit trade and tax evasion in the tobacco industry. The paper contributes to expanding awareness among policymakers and the public of the nexus between the illicit trade in licit goods, corruption, and organized criminal networks.

Download the Report via this link.

Source: Atlantic Council

Blockchain – introducing Customs to the Global Supply Chain, earlier

Picture: Dadiani Fine Art

Customs authorities are age-old institutions whose missions have been subject to numerous changes over time. Historically, the main role was to levy customs duties, which, in other words meant collecting resources for the benefit of local authorities. Today, customs performs many other functions, from securing national borders, recording import and export trade and prevention of fraud and illegal trade activity.

From the customs authority’s perspective, there is a constant focus on finding innovative technology and new methods and techniques to become more effective on risk assessment and inspection of the goods circulating across their borders. At the same time, customs authorities must examine the consequences these changes will have on trade, avoiding the creation of additional burden and obstacles for industries and entities involved in the exchange. Adopting flexible technology is often key for meaningful strategic transformations.

More quality data with accuracy and speed

Each country has its own policies for operating border control when goods arrive or depart from their territory. Most of these policies work from systems built off a central repository, powered by data collected from different sources. Time and effort are often spent in sorting and cleansing data from these various sources but disconsonant data can still create confusing outcomes when analyzed.

While globalization gives an incentive to operate in an open market, the increased amount of trade activity also conceals illicit activities that must be supervised by customs authorities, such as tax evasion, drug traffic or smuggling. It is in the best interest of the entire industry to cooperate, allowing data sharing to flag the early recognition of risky trade transactions.

Receiving data related to the supply chain activities prior to and during the transportation process can assist authorities, supporting them to pinpoint risky elements on international trade. Data validation across various trade and transportation documents allows authorities to manage detailed risk assessment processes and is enhanced with access to earlier and more granular information.

Providing government authorities with access to upstream transport data is one of the features of TradeLens. On the platform, customs authorities have access to data related to their countries from the moment a booking is placed with a carrier. Updates on documents from different data sources and transportation milestones are shared in near real-time.

Additional data is not only a way to make sure that accurate risk assessments are being made, but it can also help decrease the burden placed by the bureaucracy related to importing or exporting goods. Increasing the accuracy of the inspection of goods, can enable authorities to focus their resources on the most important targets and improve trade documentation processing for reliable shippers, truckers and carriers. Enhancing global trade and the upstream exchange of information can drive growth and prosperity for the entire ecosystem.

Doing more with less

While many technologies and platforms exist in the marketplace, organizations are often constrained by limited public resources that must be utilized wisely. TradeLens does not aim at replacing existing systems but enhancing them with additional data from the supply chain. The TradeLens Platform provides a forum for authorities to run pilots and test innovative solutions in a true end-to-end shipment lifecycle.

In order to contribute to the logistics operations of the entire ecosystem, customs authorities can send notifications related to their inspection and release activities to TradeLens. This information will be made available in near real-time to all the players involved in the shipment and permissioned to see the data.

Several countries have already started using TradeLens to improve their access to valuable information that will in turn support their mission goals:Indonesia, Ukraine, Saudi Arabia, Thailand, Jordan and Azerbaijan.

Source: TradeLens, 28 May 2020