Cuencas fluviales

MODULE 5

The time it takes to clear goods through international borders is one of the major sources of delays to the movement of trade and transport along corridors. The delays derive from the need to comply with the formalities associated with the cross-border movement of trade and transport traffic. These activities relate to the examination, inspection, and approval of docu- ments and shipments by customs, trade, industry, agriculture, health, secu- rity, and other agencies. They also include the physical movement of goods by transport and logistics services providers (freight forwarders, customs clearing brokers, and so forth) as well as storage or handling at terminals. Efficient border management requires the reconciliation of the twin goals of enforcing compliance while expediting the movement of cargo across inter- national boundaries.

This module identifies the main issues faced at border-crossing points that affect the movement of goods and the performance of trade corridors. It proposes measures that can be taken to expedite border-clearance formal- ities to reduce costs and time. It is designed to be applicable at the sites of final clearance of goods for import or export as well as for clearance of goods in transit from landlocked countries (at the border or at an inland location

142 Trade and Transport Corridor Management Toolkit away from the border). Several examples illustrate different aspects of performance diagnostics and performance improvement measures.

There is already detailed material on customs and border management. This module therefore does not go into detail on the intricacies of border management. Instead, it draws attention to those aspects that affect the effi- ciency of traffic flow through border posts. The main reference materials are two handbooks published by the World Bank: Customs Modernization

Handbook, edited by De Wulf and Sokol (2005) and Border Management Modernization, edited by McLinden, Fanta, Widdowson, and Doyle (2011).

Both handbooks cover the changes in the border management agenda and provide detail on various aspects that are touched on only lightly in this mod- ule. They provide the theoretical underpinnings and principles for the mod- ule and should be referred to for detailed exploration of the issues raised here. The first volume, Customs Modernization Handbook, enunciates principles that should guide customs modernization. It acknowledges that condi- tions   differ greatly across countries and that it is important that each customs administration tailor its modernization efforts to national objec- tives, implementation capacities, and resource availability. Nevertheless, meeting the modernization objectives requires the adoption of several core principles, including the following:

• adequate use of intelligence and reliance on risk management • optimal use of information and communications technology (ICT) • effective partnership with the private sector, including through programs

to improve compliance

• increased cooperation with other border control agencies

• transparency, through information on laws, regulations, and administra- tive guidelines.

Success in customs modernization is tied to the overall trade policy environ- ment. Simple, transparent, and harmonized trade policies reduce adminis- trative complexities, facilitate transparency, and minimize the incentives and opportunities for rent-seeking and corruption. Customs modernization therefore needs to be examined from the broader and complementary per- spective of trade policy reform. The broad context for the design of border- specific interventions should therefore be clearly defined and understood.

The second and more recent volume, Border Management

Modernization, provides a comprehensive treatment of key develop-

ments in and principles for improving trade facilitation through better border management, including practical advice on particular issues. It sets a new agenda for border management reform, with an emphasis on areas not covered in traditional approaches. It advocates for a much

Border Management in a Corridor 143 wider approach that encompasses a “whole of government” perspective.

It makes clear that although improving the performance of customs remains a high priority for many countries, customs is only one of many agencies involved in border processing; evidence suggests that customs is often responsible for no more than one-third of regulatory delays. Therefore, in a corridor context, it becomes necessary at most border posts to obtain sound data to be able to pinpoint the real source of delays and costs that affect overall performance.

The World Customs Organization (WCO), the World Trade Organization (WTO), and specialized United Nations (UN) agencies that work on trade facilitation have designed and implemented several impor- tant guiding conventions on procedures related to border management. For example, the Revised Kyoto Convention binds countries to imple- ment specific standards at common border crossings. According to it, whenever possible, customs should operate joint controls; where a coun- try intends to establish a new customs office or convert an existing office into a common border crossing, it should coordinate with the customs administrations in neighboring countries. Cooperation by neighboring customs and border management authorities can have a profound effect on the speed of movement of trade and transport through international borders and is central to improving corridor performance.

The module is structured as follows. The first section identifies the main issues concerning the functioning and impact of border management on cor- ridor performance. The second section presents the data and information that is required to understand these issues. It is complemented by an annex that lists the key data and questions that can be asked of stakeholders to obtain both quantitative and qualitative data on border management. The  third section identifies measures that can improve border-crossing performance. The last section summarizes these interventions.