Trade Facilitation and SMEs

Tom ButterlyChief, Trade Facilitation Unit

United Nations Economic Commission for Europe (UNECE)

SMEs

• SMEs account from between 60 and 70% of employment in OECD countries

• Figure often much higher in developing countries

SupplySupply

Sources:plantsvendorsports

Manufacturers,Regionalwarehouses:stockingpoints

Fieldwarehouses:stockingpoints

Customers,demandcenters

MaterialProduction/purchasecosts

Manufacturing/Inventory &warehousingcosts

Transportationcosts Inventory &

warehousingcosts

Transportationcosts

Source: Simchi-Levi & al , 2000

Supply Chain

UN/CEFACT SUPPLY CHAIN REFERENCE MODELUN/CEFACT SUPPLY CHAIN REFERENCE MODEL

CommercialProcedures

• Establish Contract

• Order Goods• Advise On

Delivery• Request Payment

TransportProcedures

• Establish Transport Contract

• Collect,Transport and Deliver Goods

• Provide Waybills, Goods Receipts Status reports

RegulatoryProcudures

• Obtain Import/Export Licences etc

• Provide Customs Declarations

• Provide Cargo Declaration

• Apply Trade Security Procedures

• Clear Goods for Export/Import

Financial Procedures

• Provide Credit Rating

• Provide Insurance

• Provide Credit• Execute Payment• Issue Statements

INVOLVES

Prepare For

ExportExport Transport Import

SHIPBUY PAY

Prepare For

Import

Constitution dossier Achat

Signature et cachet

Résultat contrôle Labo

Labo Contrôle

Fax et courrier

Préparation Titre d'importation

Assurance

Suivi commande

Lettre d'engagement si produit inflamable

Constitution Dossier

Calcul de la freinte

Stockage

non conforme

Formulaire d' écart

Lettre de non conformité / F

Produit Isolé

B. de Retour MP

Enregistrement Informatisé

B. d'entrée interne

Vérification de la saisie

Calcul prix de revient

Classement et Archivage

Photocopie document

conforme

Transporteur

Livraison

Avis d'embarq.

Documents d'expédition

Agence Maritime

Déclaration douanière

Règlement douane

Enlèvement M.P

D T C

Contrôle Périodique

Note d'achat Demande d'offre de prix

B.C ManuelAnalyse des d'offres

Stock Mini atteint

B.C informatisé

55Offre de prix

fact. Proforma

Confirmation Commandes

17

16108

2322

1918

24

1 2 4

Classement des documents

Produit retourné

Comptabilité

Transitaire

3

52

5543 1086

18

9

19 20 22

30 31

32 33

8 29185 17 21

14 12

13 11

13 14

6

5 8 29 30 31

32 33

3

16 17

1716

Photocopie Doc.

Prélèvement des échantillons

Déchargement

Contrôle Qté Signat. & Cachet BL

Réception

11

16 17 2828

5 8 21

30 31

29

3332

Etiquettage non-conformité

2121

2827

23

10 19

18 24

8

22

24

333231302921

36

11

7

15

15

15

12

12 12 12 12

12

Constitution dossier Achat

Signature et cachet

Résultat contrôle Labo

Labo Contrôle

Fax et courrier

Suivi commandeConstitution

Dossier

Calcul de la freinte

Stockage

non conforme

Produit Isolé

Enregistrement Informatisé

Vérification de la saisie

Calcul prix de revient

Classement et Archivage

Photocopie document

conforme

Transporteur

Livraison

Avis d'embarq.

Documents d'expédition

Agence Maritime

Déclaration douanière

Règlement douane

Enlèvement M.P

Contrôle Périodique

Demande d'offre de prix

Analyse des d'offres

Stock Mini atteint

B.C informatisé

33Offre de prix

fact. Proforma

Confirmation Commandes

98651

Classement des documents

Produit retourné

Comptabilité

Transitaire

2

32

332 54 6

12 13 14 15

5 763

4

3 5 11 12 13

14 15

2

Photocopie Doc.

Prélèvement des échantillons

Déchargement

Contrôle Qté Signat. & Cachet BL

Réception

3 5 7

12 13

11

1514

77

8

5 9615141312117

16

D T C

911

Total Trade Transaction – Integrated supply-chain

Building Trade Efficiency

Trade facilitation

Company processes

General needs• Customers• Finance • Information

– Buyers– Price– Standards– Quality– Packaging– Transport– Taxes,duties, etc

• Transport Infrastructure• Trade Support Services• Etc

Trade Facilitation Needs• Reduce complexity and cost (relatively

higher for SMEs)• Certainty / transparency – (advance ruling)• Speed• Access to International Supply Chains• ICT Solutions – low cost and simple to use

(on my PC)

Must assess specific needs of SMEs in a given country/region

Major Issues• Authorised Economic Operator (AEO) –

implications for SMEs – Authorised Supply Chain

• Security – implications for SMEs• Consultation – SMEs part of the solution• Life before and after trade facilitation

Benchmarks and milestones (roadmap – national and regional strategies for TF)

Selected Case Studies of Public-Private Sector Partnerships in Trade Facilitation 1. Export Electronic Single Window, Guatemala2. Mauritius TradeNet, Mauritius3. Port Net Amsterdam, Netherlands4. Cargo Risk Analysis and Scanning, Sierra Leone5. Computerised Risk Management, Tanzania6. Tunisia TradeNet, Tunisia7. Cargo Processing System in the Port of Felixstowe,

United Kingdom8. Chicago Rail Industry, United States.

 

.. now we have to make trade facilitation happen!

Follow-upAll UNECE Recommendations, codes, standards and publications are available for free on our website at:

– www.unece.org/trade– www.unece.org/cefact/– www.unece.org/etrades/unedocs/

– E-mail: tom.butterly@unece.org

UNECE Paper on Public-Private Sector Partnerships in Trade Facilitation Implementation

Key Factors:1. High level of trust among the participants: A

strong degree of trust between the partner organisations allows partner organisations to contribute a substantial amount of resources and effort in the assured knowledge that the partner will do the same.

2. Fixed deadlines: Setting deadlines allow each partner organisation to focus on the relevant task(s) that need(s) to be accomplished.

3. Clear objectives: Clear objectives act as an ongoing guideline by which the partnerships success can be constantly evaluated.

4. Constant communication: There needs to be a constant flow of information, feedback and evaluation between the partner organisations to enable both parties the opportunity to ‘voice their concerns’ and to make crucial interventions at various stages of the partnership when necessary.

5. Funding: The issue of funding is crucial as it allows for all the concepts and ideas that have been proposed to attain the operational or implementation stages.

6. Transparency: At any point in the development of a PPP there needs to be the ability to evaluate any area of the partner organisation.

7. Leadership: Strong leadership ensures that the various aspects of the PPP are achieved in a timely, effective and efficient manner.

There are significant positive benefit/cost ratios that can be derived by implementing TF measures through the medium of PPPs, due to the particular abilities of both sectors. Certainly, the increased funding or pool of skills available between partner organisations increases the chance of successful implementation and sustainability of PPPs and the substantial benefits therein.