OSBP Case study. Case... · 2014-04-08 · • Goods worth US$2-5000 per tonne • Cost of...
Transcript of OSBP Case study. Case... · 2014-04-08 · • Goods worth US$2-5000 per tonne • Cost of...
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L Y N N H A R M O N , M A N A G I N G D I R E C T O R , C D C
OSBP CASE STUDY
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OSBP OBJECTIVES
• To reduce the number of stops incurred in a cross border trade transaction by combining the activities of both countries’ border organisations at a single location [in each direction for juxtaposed facilities].
• To increase the effectiveness of cross-border controls through greater data sharing and cooperation.
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TIME AND COST DISTRIBUTION(2009)
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THE NEED – SPEED MATTERS
• Trade has been a major driver of African economic growth and receives increasing emphasis in national development plans.
• Shippers demand high performing corridors that reduce cost and time spent on transport and logistics and increase the reliability and predictability of the corridors.
• Developing countries generally hold double the inventory of industrialized countries. At 15-20% interest rates, high inventories can cost 2% of GDP.
• Trade facilitation is key to continued trade growth. WB Study indicated 75% of delays worldwide are facilitation, only 25% are infrastructure.
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THE COST OF DELAYS
• Cost of 3-5 days at the border
• Daily fixed cost per truck: US$250-600
• Total 3 days: US$750- US$1800
• Total 5 days: US$1250-US$3000
• Cost of increased inventory
• Goods worth US$2-5000 per tonne
• Cost of increased inventory per day per
tonne: US$0.75-$2.5
• Load of 28 tonnes, predictability hedge of
30 days
• Unnecessary inventory cost: US$630 – $2100
• One day’s delay is estimated to reduce trade
by 1% or the equivalent of distancing a country
from its partners an additional 70 km.
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TIME TO EXPORT IN DAYS
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COST TO EXPORT (US$)
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MAKING THE MOST OF THINGS!
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BORDERS
• Challenges • Increasing number of
agencies at border each with its own controls and own management
• Two national systems
• Increasing traffic at borders
• Little increase in staff levels
• New Trends • JBP
• Integrated border management
• Increased use of ICT
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B O R D E R
C R O S S I N G
Zimbabwe Zambia
Imm Cus MoT Other Pol Pol Imm Cust Other MoT
Other MoT Cust Imm Pol Pol Other MoT Imm Cust
CURRENT BORDER CROSSING PROCEDURES
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CHIRUNDU CASE STUDY
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TRAFFIC FLOW
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USING EXISTING INFRASTRUCTURE
• Baseline Study
• Loaded vehicles and delays North-bound.
• Separated passenger traffic to one lane bridge.
• Concentrate on freight delays.
• Created a fast track and freight booth.
• System depended on ICT connection within the common control zone..
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PROCEDURE FLOW
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Common
Control Areas
with secure
perimeter
Zimbabwe:
Exclusive Use
Areas
Zambia:
Exclusive Use
Areas
Offices Offices Offices Offices
CHIRUNDU ONE STOP BORDER POST
Public
Processing
Area
Public
Processin
g
Area
Traffic leaving Zimbabwe
Traffic leaving Zambia Zambia
exit
controls
&
Zimbabw
e entry
controls
Zimbabw
e exit
controls
& Zambia
entry
controls
Traffic
entering
Zimbabwe
Traffic
entering
Zambia
BO
RD
ER
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DOMESTIC IBM
• OBAs access declarations in ASYCUDA
• OBAs’ risk selectivity profiles entered in ASYCUDA
• Alerts to OBAs on consignments of interest
• Coordinated, parallel interventions
• Systematic handling of clearance risks
• Integrate border and corridor transit systems
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CLEARANCES
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BENEFITS
• At Chirundu clearances for buses and passenger
cars is about half what it was previously.
• Freight times have also been reduced quite
dramatically – from three days to one for most.
• There is greater sharing of information on risks
• Greater coordination of clearances
• Sharing of equipment
• Continual improvements in processing
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BEFORE AND AFTER
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LESSONS LEARNT
• Select a lead Ministry
• Select a project manager
• Involve all agencies at hdqrs and border
• Simplify procedures, expedite transit, insure connectivity, improve use of ICT applications
• Begin legal framework early
• Plan for efficient workflow and coordination
• Training before opening and after is essential
• Steering Committee and Border Committee
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TRANSPORT CORRIDORS
• Approximately 22 Corridors under consideration for OSBP conversion.
• Some Feasibility Studies.
• Once law passed nationally can apply to any border. BA model.
• Customs working groups, add OBAs to procedures work.
• Important to connect corridor CCZ, borders on Corridor— ”clearing in motion”
• Smart Corridors.
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SOURCE BOOK OBJECTIVE
• Provides useful information on OSBP implementation and management
• Captures lessons learned to 2011 and case studies
• Presents them in a topical way for easy reference as specific problems are faced
• Will be updated as new information is available – an evolving source book
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OTHER REGIONS
East Africa
• Over 8 under construction
• About 20 total, mostly
juxtaposed
• Control zone, national,
extraterritorial jurisdiction
required.
• Regional Act, CU Act,
common regulations and
procedures; need OSBP
procedures
• ICT applications/training in
process
West Africa
• 3 under construction
• About 20 planned, mostly
wholly in one country
• Control zone transferred to
REC, extraterritorial
jurisdiction required.
• Regional Act; procedures in
process
• Electronic transit approved
for pilot
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NIGER/BENIN BORDER
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WEST AFRICAN MODEL
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WEST AFRICAN MODEL