It
looks at how procedures and controls governing the movement of goods across
national borders can be improved to reduce associated cost burdens and maximize
efficiency while safeguarding legitimate regulatory objectives. Business costs
may be a direct function of collecting information and submitting declarations
or an indirect consequence of border checks in the form of delays and
associated time penalties, forgone business opportunities and reduced
competitiveness.
Understanding
and use of the term “trade facilitation” varies in the literature and amongst
practitioners. "Trade facilitation" is largely used by institutions
which seek to improve the regulatory interface between government bodies and
traders at national borders. The WTO,in an online training package, once
defined trade facilitation as: “The simplification and harmonization of
international trade procedures” where trade procedures are the “activities,
practices and formalities involved in collecting, presenting, communicating and
processing data required for the movement of goods in international trade”.
In
defining the term, many trade facilitation proponents will also make reference
to trade finance and the procedures
applicable for making payments (e.g. via a commercial banks). For example UN/CE FACT defines trade facilitation as "the
simplification, standardization and harmonization of procedures and associated
information flows required to move goods from seller to buyer and to make
payment".
Occasionally,
the term trade facilitation is extended to address a wider agenda in economic
development and trade to include: the improvement of transport infrastructure,
the removal of government corruption, the modernization of customs
administration, the removal of other non-tariff trade barriers, as well as
export marketing and promotion.
................By Faith Gabriella.
