A1 Governance Bodies

One of the critical success factors for implementation of paperless trade systems is the strong commitment from the Head of Government. When top management is committed to spearhead a project, issues of financial support and other resources may be addressed more readily. Coordination among government agencies and between the government and the private sectors can be carried out more efficiently and effectively with the establishment of an institutional body equipped with a strong governance structure.

A1.1 Is there a governance structure established for paperless trade, e.g. national trade facilitation council?

Background

An inter-agency governance structure, normally called the national trade facilitation council/organization, is one of the critical success factors for implementing paperless trade systems within a country. This body should be led by top management of the country who has the authority to spearhead the interagency/interdepartmental project, and address issues about financial support, amendments to rules and regulations and other necessary resources.

The strong governance structure established for paperless trade is necessary to direct the project and coordinate among government agencies and between the government and the private sectors. This institutional body is the venue for relevant officials and representatives from key private sectors to come together to discuss on functionalities and other technical as well as legal matters. By assigning appropriate role and responsibilities for each group or unit within this structure including reporting mechanisms, the implementation of paperless trade systems can be expedited.

Expected Answers
  • Yes - A governance structure for spearheading the implementation of paperless trade has been established.
  • No - No inter-agency governance structure for paperless trade is established, or a governance body has been established but the level of leadership and management is not strong enough.
Good Practices

A national trade facilitation council or a similar inter-agency governance body by other names is normally established and institutionalized by laws in many countries. It is led by top management of the country to effectively steer and manage the implementation of paperless trade initiative. This governance body composes of authorities from relevant government agencies and key representatives of private sectors, covering all stakeholders, such that coordination among government agencies and between the government and the private sectors can be effectively established. This institutional body is normally supported by a designated government agency with close association to the Head of Government for strong coordination and leadership support.

References and Case Studies

A1.2 Does it include all the community partners/stakeholders (government and private sector)?

Background

The national trade facilitation council or a similar inter-agency governance structure as mentioned above should be established with the authority to spearhead the national-level paperless trade initiative. Because of the project of this magnitude and coordination of many stakeholders, this body should include all community partners/stakeholders from relevant government agencies and private sectors, including the customs authority, all import/export/transit-related permits/certificates-issuing agencies agencies, custodian of import and export, trader and industry associations, freight forwarders and customs brokers associations, and other relevant transport service providers.

Expected Answers
  • Yes – A governance structure, e.g. national trade facilitation council, that has been established include all the community partners/stakeholders from government and private sector.
  • No – A governance structure has been established but only few government agencies participate or it does not include all relevant government agencies. Not enough representatives from key private sector traders involve actively as members within this governance structure.
Good Practices

Trade facilitation and paperless trade requires interlinked roles of three main actors closely involved in the international trade sectors of the country where the inter-agency governance structure should be set up. These are the followings:

  • Public sector (all relevant government trade-related agencies), in designing and implementing national laws and regulations regarding trade, legislation, technology, telecommunications in a coordinated way by working together and by streamlining import, export and transit procedures;
  • Private sector traders i.e. importers and exporters, who can benefit from such solutions in their international trade transactions; and
  • Private sector trade services providers e.g. carriers, freight forwarders, multimodal transport operators, carriers, banking institutions, insurance companies, software and service providers etc., who can offer market-oriented trade and transport solutions within the framework of national and international trade and transport practices, obligations and laws.
References and Case Studies

A1.3 Who chairs this governance structure?

Background

The inter-agency government structure for spearheading the implementation of paperless trade initiative normally comprises of high-level policy makers from different authorities and key business stakeholders. The head of government, or at least a ministerial level official, if appointed as the chair of this inter-agency institutional body, would strategically lead the directions, and authoritatively coordinate the implementation among different government agencies and business stakeholders. He or she should have the authority to take inter departmental decisions in a coordinated manner.

Expected Answers
  • Top management, or a ministerial level official
  • Other lower ranking
Good Practices

In many countries, the head of government or a ministerial level official, e.g. deputy prime minister, vice president or a relevant minister, is appointed and acted as the chair person of the inter-agency governance body. With the strong and high-level leadership, the paperless trade initiative of the country can be effectively managed.

A government agency is normally designated to support the chair person, e.g. acted as a project management office, by managing and coordinating necessary activities among relevant agencies.

References and Case Studies

Glossary

  1. Paperless trade refers to the digitization of these information flows, including making available and enabling the exchange of trade-related data and documents electronically. Less formally, one can think of this as cross-border trade transactions using electronic data in lieu of paper-based documents. More...

  2. “National Trade Facilitation Council (NTFC)” is an inter-agency platform for institutional coordination and stakeholders' consultation with balanced private and public sector participation. They enable the planning and implementation of successful trade facilitation reforms. More...