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ADAPT OR DIE
It is important that companies involved in international trade become
actively involved in the process and familiarise them with the nitty-gritty
of the process. Fortunately, there are many modern tools that assist
companies to modernise and simplify the process.
Companies must make use of electronic solutions to fully benefit from trade
facilitation initiatives that are introduced by governments.
The United Nations Centre for Trade Facilitation and Electronic Business
(UN/CEFACT), in cooperation with Government and business representatives
from around the world, has developed a range of trade facilitation and
e-business standards, recommendations and tools that are approved within a
broad inter-governmental process and implemented globally.
Many organizations are involved in making and developing trade facilitation
measures which are measures that are aimed to make the processes and
procedures of international trade as simple and efficient as possible for
anyone involved in international trade. The UN/CEFACT is one such an
organisation.
In UN/CEFACT Recommendation Number 33, the United Nations Centre for Trade
Facilitation and Electronic Business (UN/CEFACT) (UN/CEFACT) has made a
recommendation relating to the information and documents government
authorities require to simplify the international trade process, by making
use of information and communication technology (ICT). This recommendation
deals with the “Single Window” concept whereby trade-related information
and/or documents need only be submitted once at a single entry point to
fulfil all the regulatory requirements for export, import and transit of
goods.
UN/CEFACT Recommendation Number 33 also recommends that participating
authorities and agencies should co-ordinate their respective controls
through the Single Window and should consider providing facilities for
payment of relevant duties, taxes and fees. The Recommendation is
complemented by a detailed set of Guidelines designed to assist countries in
implementation.
The aim of the Recommendation is to simplify international trade for anyone
in international trade by providing for a standard set of standards that
would simplify and harmonize the international trade clearance process while
reducing the costs associated with clearance.
UN/CEFACT Recommendation Number 33 was developed by the International Trade
Procedures Working Group (ITPWG-TBG15) of UN/CEFACT and was approved through
the Inter-sessional Approval Process in September 2004. It is only one
recommendation of a series of trade facilitation recommendations that have
been prepared by UN/CEFACT. The recommendations are all are available on the
UNECE website,
www.unece.org/trade.
Once the Single Window concept has been implemented widely it will
contribute to the efficient and effective exchange of information between
trade and government. It is particularly important that SARS Customs and all
South African government introduce the Single Window in South Africa, and
that traders in goods invest in solutions that are compatible with these
platforms.
I have acted as an international trade consultant for developers of
electronic customs solutions on an ongoing basis since early 2001. The
industry has changed a lot since then.
Since March 2001, I realised the importance of customs compliance in
relation to the Harmonized System, in particular, and the role of the
Harmonized System in customs compliance and customs duty management.
Unfortunately, I have also noticed that the lives of South Africa’s
importers and exporters can be simplified if electronic solutions are
utilised, and if importers, exporters and customs brokers are able to
classify their own goods properly, but it does not happen because:
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few people are able to classify goods properly;
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people (traders) do not make use of electronic solutions; and/or
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it can be argued that certain Customs-related departments in
Southern Africa are only partially compliant with commitments
under certain conventions, particularly so relating to chemicals.
As a result of the above, traders may also not comply with international
trade agreements. This may be problematic as people may not be able to rely on
accurate trade statistics in the areas in which departments are
non-compliant.
There is also the potential that the goods of exporters dealing with these
goods will be stopped if they are exported to a country which are fully
compliant. That will and can have huge financial implications such as
non-payment for the goods or late payment.
There is one simple solution, an electronic solution, however the transition
is easier said than done. One cannot make use of electronic solutions if you
and your service providers are not familiar with the basics of international
trade. |
