The methodology involves ranking the regulatory and administrative constraints that cause additional burdens on cross-border trade. Companies were asked to quantify the impact of administrative costs where possible (in terms of the number of documentary formalities for importing and exporting, as well as the time taken for the consignment to be inspected and cleared) and to provide information on the size of ‘informal’ payments to Customs, tax and other officials. They were also asked both to rank the major sources of trade costs and to provide estimates of the cost of the major obstacles.

# **3. Survey Results**

The results are reported in six parts: customs and administrative requirements affecting imports and exports, respectively; bureaucratic red tape on imports; traders’ estimates of trade costs; and their assessment of (i) bilateral trade barriers and (ii) the benefits of PAFTA to their businesses.

# **3.1. Customs and Administrative Requirements Affecting Imports**

Procedural requirements for importing are measured in terms of the time required for import clearance and inspection; the number of documents and signatures required to process import transactions; customs valuation; documentation relating to rules of origin; and compliance with technical requirements (product standards).

# **_Customs Clearance and Documentation_**

The survey results reveal that significant improvements have been made between 2001 and 2008 by many PAFTA countries in reducing the time for clearance, i.e., from the arrival of the goods (by air or sea or road) at the port of entry to the consignment’s release from customs. It takes 2 days, on average, to release goods imported by airfreight or by road transport from customs, and 5 days for sea shipments. Although this is much longer than international best practice (respectively less than 6 hours for airfreight, 24 hours for sea freight, and 4 hours for transshipment by road), it is better than what was reported in 2001 (Table A–1).

A major procedural constraint highlighted in the survey is the number of documents and associated signatures required for processing an import transaction. In most PAFTA countries about 5 documents/procedures are required to process an import shipment arriving by air or sea, and 4 documents to clear a consignment transported by road. The number of associated signatures has fallen to 4, 5 and 6, on average, for air, sea and road transport shipments, respectively. However, there is significant variance across countries with the UAE requiring the fewest number of documents and signatures, and Syria the most. The 2001 survey found that up to 20 signatures were needed to process air or sea freight shipments (Table A-2).

# **_Customs Valuation, Rules of Origin and Product Standards_**

Important aspects of the importing process include customs valuation, enforcement of rules of origin (if applicable), and compliance with technical requirements (product-specific health and safety standards). Traders may incur additional costs in satisfying such requirements, especially if customs authorities or other government bodies apply them in a restrictive way. Customs valuation is the procedure for determining the dutiable value of imported goods. The survey indicates that the majority of traders in PAFTA countries do not perceive customs valuation, in general, as problematic. It seems that customs authorities in many Arab countries now apply the WTO rules on customs valuation, i.e., accept the invoice as the basis for customs valuation. However, there are significant differences in how customs valuation in 10