06 Jan 2016

The Ministry of Trade and Industry has issued a paper that disseminates information on the concept of trade facilitation, its importance and developments around the subject.

The paper also emphasis the benefits to be derived from the World Trade Organisation agreement on trade facilitation. 

The paper describes what trade facilitation is and emphasis on compliance at borders in terms of documents by companies for efficient trade. 

It notes that companies in trade facilitation include importers, exporters, customs brokers, shipping agents, transport and logistics operators and freight forwarders.

It goes on to state that any kind of border inefficiencies may result in high transaction costs and unnecessary delays and discourages companies, particularly small companies, from venturing into the export business.

The paper says doing away with inefficient procedures and removing unnecessary delays is what trade facilitation entails, adding that it seeks to reduce transaction costs and the complexity of access to international markets through simpler, speedier and more reliable border processes making it easier for goods and services to cross borders.

 It states that central to trade facilitation is simplification, streamlining of documentation and harmonisation of procedures, and that trade facilitation efforts addresses the logistics of moving goods through borders and ports as well as efficiently moving documents associated with cross-border trade, as it covers a wide range of activities relat­ing to customs, agricultural formalities, transport regulations, payments and other financial requirements involved in the movement of goods.

 The paper says trade facilitation has potential benefits to government and the private sector.

It notes that government stands to benefit in terms of improved revenue collection, increased economic efficiency, improved trader compliance and foreign investments all of which stand to yield accelerated economic development, adding that it benefits the private sector through faster delivery of goods, reduced transaction costs, faster and simplified customs clearance.

The paper explains that as a landlocked country, Botswana attaches great importance to trade facilitation, adding that the country’s geographical location makes it depend on its neighbours for movement of goods.

With regard to enhancing existing trade facilitation efforts, the paper says significant progress has been achieved in the standardisation of customs documentation systems between Botswana and her trading partners within the region.

It further says at the Southern African Customs Union (SACU) level, such efforts include application of similar legislation with regard to customs and excise duties, customs cooperation, use of common customs documentation such as the SAD 500 form, common procedures and practices.

 It noted that Botswana is one of the founding members of the World Trade Organisation (WTO) since 1995.

 The WTO is a global organisation dealing with rules of international trade between member countries. Its main function is to ensure that trade flows as smoothly, predictably and freely as possible.

 It also notes that in  December 2013 member states of the WTO concluded negotiations on the Agreement on Trade Facilitation (ATF) at the ninth WTO Ministerial Conference in Bali, Indonesia.

  On how the WTO agreement on trade facilitation will benefit traders, it notes that the ATF has potential benefits to traders which include the provision on publication of information, which will benefit traders by ensuring availability of information and encouraging transparency. It also says duplication of customs controls between border agencies will be decreased thereby reducing the costs for traders.

It notes that it will lead to reduced costs to consumers and exporters thus assisting exporters of agricultural goods. The agreement calls on member countries to establish or maintain a single window, a trade facilitation tool which connects border agencies within a country through a single electronic data information exchange platform. Ends