harmonizing border port development as gateways to global markets for mongolia & the people’s...
TRANSCRIPT
Harmonizing Border Port Development as Gateways to Global
Markets for Mongolia & the People’s Republic of
China
Dissemination Workshop, Puma HotelDecember 13, 2012 Ulaanbaatar, Mongolia
G-0204 MON Southeast Gobi Urban & Border Town Development ProjectCross Border Institution Development Program for MON-PRC Regional CooperationRobert L. Wallack, Trade Logistics & Border Development, United States of AmericaOdnoo L., National Consultant, MongoliaAECOM, U.S.A.
Implementation of Cross Border Management Organizations:
Zamyn-Uud, Dornogobi-Erlian, Inner Mongolia Autonomous RegionGashin Sukhait, Omnigobi-Ganqimaodao, Inner Mongolia Aut. RegionShivee Huren, Omnigobi-Ceke, Inner Mongolia Autonomous Region
ZAMYN-UUD
Actionable Statements “Zamyn-Uud is for imported machines and spare parts…
delays are frequent…improved processes would greatly assist as would access to bonded yards & covered storage & would enable imports destined for Gobi region to be stored in ZU.”---Multinational Importer
“At the beginning it was difficult with the border agencies…but we had the right people and regular meetings and the agencies and businesses saw that they benefitted…”---International Best Practice, N. America
“…ruled by the daughters of Genghis Khan, the Mongols created a new world system based on a faster flow of goods and information than had been previously practical.”---Jack Weatherford
Results of Cooperation
New Roads in Zamyn Uud North American Bison
Contents I. Background to Cross Border Harmonization
II. International Best Practices
III. Concepts & Cases
IV. Cross Border Trade for Global Markets
V. Border Management: Internal & Bi-National
VI. Border Counseling Meeting of Zamyn Uud-Erlian
I. Background to Harmonization
Revised Kyoto Convention: MON & PRC forSimplification & Harmonization of Customs
Implementation: World Trade Organization & World Customs Organization
RKC/WTO/WCO ADB CAREC
Border Counseling Meeting
Continuous Improvements for Border Management: Cross Border Trade & Security
II. International Best Practices City-Twinning
Steering Group: Administrations from both towns-Decision MakingCentral Governments has limited functionSmall and Medium- Sized Businesses active
Goal of Twinning: Improve welfare of citizensof both towns and facilitate border crossing
Achievments:• Russia-Finish Key Industrial Park (KIEP)-1999• Improvements in: waste-water treatment
systems,energy, tourism infrastructure, improved municipal government
The City Twins Association (CTA)-2006 & City Twins Cooperation Network project-2004-06—Finland-Russia longest in EU, 1324 km
Imatra, Finland—Svetogorsk, Russia: Rail and Road
Ajo Border Residence
Lead internal border agency:
U.S. Government Services Administration(GSA) cooperates and coordinates with
U.S. Customs and Border Protection (CBP) for constructing residences for officers at the U.S.-Mexico Port of Entry. • Local offices submit requests with data to state for national approvals
• Ajo, Arizona Housing Development Project for CBP officers is 40 miles north of the U.S.-Mexico border and Lukeville POE.
El Uno and Grasslands
Chihuahua, Mexico—60 milesMexico-U.S.-Nature Conservancy
Ecoreserve near drug war zoneReserva Ecologica El Uno
3 R’s of grassland restoration:resting it, replanting, researching
CB cooperation: Bison in MexicoNot seen grazing since 1832
Educational center: Ranchers learn new, sustainable grazing methods
III. Concepts & Cases Supply Chain Management Containerization-Intermodalism
Supply Chain Strategy & Management• Product Flows, Information Flows, Financial Flows: Customers• Inventory Management: High Turnover tied to Sales• Cross Border: On Time Deliveries=Revenues(business/GOM)• Partnership between Border Agencies & Private Enterprise:WCO-mutual recognition agreements: US, Jordan, Australia, Sweden
Containerization & Intermodalism• Overloaded truckscontainers: safe, secure, customer service• Consolidationtransport economics lower unit costs• Capacity utilization of Full Container: “weigh out” “cube out”-combine shipments into one container of heavy & light cargo• Benefits: Easier transloading, storage, congestion, environment
INCOTERMS & Border Management College
INCOTERMS(International Commercial Terms, International Chamber Of Commerce)• Three letter standardterms of buyer & seller in international contracts• Shipment terms as important as product price• Insurance, duty payments,
broker fees, risks
Border Management Staff College, Dushanbe, Tajikistan
• Sr. Border Officials• OSCE international standards
in border management• Workshops on inter-agency
cooperation, best practices, exchange of information
CAREC Federation of Carrier & Forwarder Associations (CFCFA)• Supply Chain Curricula• Centers of Excellence
Slovakia Land Locked in Europe
• CB transport of natural resources
• Organization for Security & Cooperation in Europe (OSCE):
Slovakia & Mongolia
IV. CB Trade for Global Markets
Source: National Statistics Office Mongolia, Bulletin, External Trade, 2009 & 2012, USDCAGR: Compound Annual Growth Rate
Year Total Turnover Exports Imports Balance
2000 1,150.3 535.8 614.5 -78.7
2001 1,233.9 596.2 637.7 -41.5
2002 1,214.4 524.0 690.4 -166.4
2003 1,406.3 615.4 790.9 -175.5
2004 1,888.4 869.1 1,019.3 -150.2
2005 2,241.2 1,063.9 1,177.3 -113.4
2006 2,977.0 1,542.0 1,435.0 -107.0
2007 4,009.3 1,947.5 2,061.8 -114.3
2008 5,779.0 2,534.5 3,244.5 -710.0
2009 4,033.9 1,902.6 2,131.3 -228.7
2010 6,108.6 2,908.5 3,200.1 -291.6
2011 9,099.7 3,747.3 5,352.4 -1,605.0
2012 9,404.0 3,664.7 5,739.3 -2,074.6
CAGR (2000-12) 19.1% 17.3% 20.3% (31.2%)
Trade Growth Calls for Border Counseling Meeting to be a Forum to Assist in Resolving Issues:
Infrastructure, Trade Facilitation, Policy & Environmental
V. Border Management: Internal
U.S.Department of Homeland
Security (DHS)
Customs and Border Protection (CBP) (lead agency for border inspection and control agencies)
U.S. General Services Administration (along with US Army Corps of Engineers designs, builds, leases)
CBP tells the long range plan and GSA does it. Both agencies have monthly meetings of senior officials. Border stations built by GSA and CBP operate/owns them under DHS
United States General Services Administration
(GSA)
U.S. Customs Service
U.S. Immigration and Naturalization
Service
U.S. Department of AgricultureAnimal & Plant Health Inspection Service U.S. Food & Drug Administration
Federal Highway Administration-U.S. Department of Transportation
GSA is real estate agent for federal government for border port agencies Responsible for building border port facilities with US Army Corps of Engineers
All six agencies signed MoU Met every 3 months Wrote long range plan & recommendations for U.S. lawmakers to allocate funds for border projects
United States Border Administration Framework 1997-2002 Border Station Partnership Council comprised of
U.S. Border Administration Framework 2003-Present
PR China: Internal Border ManagementChairman of All PRC General Customs Administration &
Chairman of PRC Border Administration
Vice Chairman of China Trade Bureau &Chairman of Border Administration Office
Inner Mongolia Border Administration Office
Erlian city People’s
Government
Vice Chair Border-Road
Division of Road Transport: Head 1-Inspection; 1-
Coordination Officer;4-Services
Officer
Chairman of Erlian Border Administration Office
Vice Chair for Railway
Division of Railway: Head 1-
Inspection; 1-Coordination
Officer; 4-Services Officer
Border Administration Offices for Neighboring:
Russia, Kazakhstan, Mongolia
Vice Chair Internal Affairs
Division of Internal Affairs: 1-Head;4-Services Officers;3-
Financial;10-Border Fee Collectors
Total Employees: 34. Expanded organization for Erlian airport. Border Administration main function is monitor operations of inspection agencies and other border agencies and
to coordinate and harmonize their activities
Border Management: Bi-National
Working Group Committees
Urban
Subcommittees -Water
-Sewage -Environment
Border Trade
Subcommittees -Customs, Inspections -Information Systems
(SEW)
Gashin Sukhiat-Ganqimaoda
Shivee Huren-Ceke
Subcommittees -Urban
-Border Trade -Environment
Border Counseling Meeting (BCM)
Steering Committee Meet monthly. Agencies from both borders make
suggestions to Core Group
Core Group Meet quarterly. Agencies and
organizations from both borders and is
decision making body of the JBDC
General Assembly Meet Annually. Businesses and
governments from a wide group of
stakeholders provide and seek information
Joint Border Website Project
for all activities of BCM: www.elsw.gov.cn
Asian Development Bank active oversight for 2-3 years
until fully operational
Border Management: Bi-National
Gashin Sukhait-Ganqimaodao & Shivee Huren-Ceke
How to Organize? Permanent Representative?
-Unique cross border trade characteristics Examine trade data Identify government & business officials Review of GOM Policy on Border
Management/Development & Master Plans Extended Border Counseling Meeting?
VI. Border Counseling Meeting
Since 2008: civil/securitytrade & transport
Appointment of Cross Border Coordinator(s)
Joint Website: www.elsw.gov.cn
Suggestions: E-mail lists, Annual Schedule, Agenda before meetings, remote meetings
Agenda: Policy/Institutional; Trade & Urban Infrastructure (SEW); Trade Facilitation & Operations; Environment; Performance
Border Counseling Meeting
Record of Achievements to Prove Value of BCM to all stakeholders (border agencies, businesses, investors, donor organizationsContinuously Improving & Harmonizing CB
Asian Development Bank & CAREC Trade & Transport Facilitation Program Federation of Carrier & Forwarder Assoc. Sources to Discuss BCM Budget Issues
www.carecinstitute.org www.wcog.org/Borders
Border Counseling Meeting
CAREC 4a & 4b IMTC-North America
Questions to Consider Alignment of Internal BM: PRC & MON
Clarify Gashin Sukhait—Shivee Huren
Appoint BCM Coordinator
Design, Content, Budget Website:www.elsw.gov.cn
Decide on CB Performance Indicators
Single Electronic WindowInternal & Bilateral Agreements
Source: Internet- Wikipedia
Thank You Questions/Answers
Robert L. Wallack, Cross Border Development Expert, [email protected] for ADB and AECOM, U.S.A.