Ministry of Commerce And Supplies - Enhanced Integrated ...

N T I S2010Technical assistance is currently being sought by the DoC for the development of a post-clearance audit (PCA)methodology, PCA manual, and training. Discussions have been taking place with USAID for support in thisarea starting 2010. The DoC has expressed its interest in identifying a lead donor to support and coordinateNepal’s trade facilitation efforts under its strategy. Discussions should commence with the other potentialpartners such as the World Bank, including on assistance that could be accessed from the World Bank TradeFacilitation Facility.6.4 WTO Negotiations on Trade FacilitationMembers of the WTO continue to negotiate a trade facilitation agreement as part of the Doha Round.To date, members have submitted a number of proposals aimed at improving the existing GATT Article V(Freedom of Transit), Article VIII (Fees and Formalities Connected with Importation and Exportation), andArticle X (Publication and Administration of Trade Regulations). The negotiation group also has the mandateto seek enhanced delivery of technical assistance to strengthen the capacity of developing country membersto implement the trade facilitation proposals. The timing of the WTO trade facilitation agreement is tiedto the progress of the Doha Round more generally. Thus, the date at which the provisions currently tabledwill come in force remains uncertain. But the process offers Nepal an external impetus to trade facilitationreform and a mechanism to seek technical assistance for capacity-building. Many of the proposals underthe draft agreement overlap with the 2009-13 modernization plan and Nepal should continue to increase itscompliance during this period.Nepal carried out a self-assessment against the current provisions of the agreement in April 2009. It was feltat the time that stakeholders should continue to meet at regular intervals. Nepal should use the WTO processas a means to continue to improve cooperation between customs and other agencies relevant to bordercontrols. At national level, a National Trade Facilitation Committee exists, mirrored by trade facilitationsubcommittees for each customs station. These mechanisms are focused on customs procedures and arenot yet fulfilling their full potential to serve as focal points for agency coordination and as mechanisms toengage the private sector. Consideration could be given to re-establishing the National Transport and TradeFacilitation Committee, if this is considered appropriate, with a dedicated secretariat.6.5 Automated Customs Management SystemsAutomated systems for handling customs data can reduce clearance times, increase the transparency ofcustoms functions, and increase the compliance with trade regulations. Automation is critical to makingprogress on reducing the time it takes to process documentation, and it also allows for the transition tomodern risk management-based customs procedures. Automated collection of customs data will also allowfor the compilation of performance indicators for monitoring customs offices clearance and release time,which needs to be established.Nepal has made progress on implementing ASYCUDA (the automated system for customs data) in ninecustoms stations, which means that effectively nearly all formal trade (95 per cent) is covered by the system.To date, the impact on reducing documentation and clearance times has been minimal as only the basicaccounting modules have been introduced. The perception of the private sector is that the automation ofcustoms procedures has failed to reduce clearance times. 66Author? Trade Facilitation Survey 2005.164NEPAL TRADE INTEGRATION STRATEGY 2010BACKGROUND REPORT