metadata: authors: 0: author: Bagai,Shweta
1: author: Wilson,John S.
count: World
docna: 0: docna: The data chase : what's out there on
            trade costs and nontariff barriers ?
docty: Policy Research Working Paper
subtopic: Investment and Investment Climate,International Trade and Trade Rules,Trade and Services,Trade Facilitation,Transport Services
teratopic: Macroeconomics and Economic Growth,Law and Development,International Economics and Trade,Transport
abstracts: cdata!: Trade costs and nontariff barriers are
            at the forefront of discussions on competitiveness and
            expanding trade opportunities for developing countries. This
            paper provides a summary overview of data and indicators
            relevant to these issues and has been informed by work
            underway at the World Bank on trade facilitation over the
            past several years to catalogue data sets and indicators.
            Although there has been progress in expanding data sets and
            developing policy-relevant indicators on trade costs and
            barriers, much more is needed. In order to assess progress
            toward achieving the Millennium Development Goals,
            evaluating the impact of development projects, and whether
            meeting Aid for Trade goals will be met, for example, a
            dedicated and expansive new effort to collect and assess
            data is needed. This paper attempts to highlight gaps in
            data on trade costs and provides insight into the type of
            new data that might be developed in the future.
repnme: repnme: The data chase : what's out there on
            trade costs and nontariff barriers ?
display_title: The data chase : what's out
            there on trade costs and nontariff barriers
listing_relative_url: /research/2006/04/6737274/data-chase-whats-out-trade-costs-nontariff-barriers
topicv3: Investment Climate m1326293 405,Transport m1326661 135,Trade m1326924 698,Trade in Services m1326928 780,Trade Facilitation and Logistics m1327174 772
publishtoextweb_dt: 2010-07-01T00:00:00Z
historic_topic: Macroeconomics and Economic Growth,Law and Development,International Economics and Trade,Transport
no_of_pages: 74
author_keys: 0: author_key: 607500
1: author_key: 454584
model_extractions: WPS3899

**_<u>________________________________________________________</u>_**

# **The Data Chase:**

# **What's Out There on Trade Costs and Nontariff Barriers?**

Shweta Bagai and John S. Wilson<sup>1</sup>

# The World Bank

## World Bank Policy Research Working Paper 3899, April 2006

_The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the view of the World Bank, its Executive Directors, or the countries they represent. Policy Research Working Papers are available online at http://econ.worldbank.org._

> 1 John S. Wilson, Lead Economist, Development Research Group, World Bank and Shweta Bagai, Confederation of Indian Industry.  Comments of colleagues at the Bank on this document are gratefully acknowledged.  This report is part of broader project on Trade Costs and Facilitation supported through a Trust Fund of the Department for International Development of the United Kingdom.  The views expressed here do not necessarily represent those of DFID.

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# **Non-Technical Summary**

Trade costs and non-tariff barriers are at the forefront of discussions on competitiveness and expanding trade opportunities for developing countries. This paper provides a summary overview of data and indicators relevant to these issues and has been informed by work underway at the World Bank on trade facilitation over the past several years to catalogue data sets and indicators.

Although there has been progress in expanding data sets and developing policyrelevant indicators on trade costs and barriers, much more is needed. In order to asses progress toward achieving the Millennium Development Goals, evaluating the impact of development projects, and whether meeting Aid for Trade goals will be met, for example, a dedicated and expansive new effort to collect and assess data is needed. This document attempts to highlight gaps in data on trade costs and provides insight into the type of new data that might be developed in the future.

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# **Table of Contents**

|Introduction............................................................................................................................... 1|
|---|
|1.1<br>Impact of The Trade Facilitation on Competitiveness.................................................. 2|
|1.2.<br>The New Security Dimension....................................................................................... 3<br> <br>|
|2.<br>Existing Data Sets and Analytical Tools ...................................................................... 5|
|2.1<br>General Economic Indicators........................................................................................ 5|
|2.2<br>Trade Indicators .......................................................................................................... 10|
|2.3<br>Customs and Border Crossing Times ......................................................................... 16|
|2.4<br>Transport Infrastructure Indicators ............................................................................. 23|
|2.5<br>Services and Information Technology Indicators....................................................... 33|
|2.6<br>Development Indicators.............................................................................................. 37|
|Conclusions............................................................................................................................. 40|
|Annex A. World Business Environment Survey .................................................................. 42|
|Annex B. Investment Climate Assessments (ICAs)- Logistics Module............................... 43|
|Annex C. Infrastructure Indicators ....................................................................................... 49|
|Annex D. Module-Based Project Guidelines for Trade Facilitation..................................... 50|
|Annex E. Country Ranking by WMO Trade Facilitation Indicators.................................... 53|
|Annex F. TTFSE Performance Indicators ............................................................................ 55|
|Annex G. Trade Logistics Template..................................................................................... 57|
|Annex H. Sample of Infrastructure/Facilitation Indicators................................................... 59|
|Annex I. Summary of Main Data Sources.......................................................................... 62|
|Selected Bibliography............................................................................................................ 66|

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# **Introduction**

Expanding access to international trade is a vital component of a successful strategy for poverty reduction and economic growth. In an era of dynamic and changing global trade patterns, the costs of moving goods across international borders is as important as tariffs in determining the cost of landed goods. The ability of countries to deliver goods and services on time and with increasing lower costs is a key determinant of full integration into the world economy.

As tariff barriers to trade have lowered over the past decades, the cost of complex and nontransparent trade procedures has risen. Programs to remove non-tariff barriers and accelerate the flow of goods and services across borders – trade facilitation measures – are at the forefront of policy debate. There is no commonly accepted definition of trade facilitation. In a relatively narrow concept, trade facilitation relates simply to the logistics of moving goods through customs or more efficiently processing documentation associated with cross-border trade. The definition has broadened recently to include the environment in which trade transactions take place. This includes the transparency and professionalism of customs and regulatory environments. It also includes the harmonization of standards and conformance to international norms (Woo and Wilson 2000). The focus of trade facilitation efforts is now clearly inside the border. Reform involves “domestic” policies and institutional structures where capacity building can play an important role. In addition, the rapid integration of networked information technology into trade suggests that modern definitions of trade facilitation must encompass technology and other infrastructure, as well.

In this paper, we provide a summary of available indicators of trade facilitation. Such indicators can have multiple audiences and purposes. They can provide (1) a basis for the development of further indicators for use in analysis of the impact of trade facilitation on development, (2) a guide for task managers in Bank operations in project preparation, supervision, and evaluating project performance, (3) a benchmark for regional comparisons, (4) track effectiveness of domestic reform processes associated with accelerating trade facilitation, and (5) assist in shaping policy-oriented empirical research in sectors which suffer from lack of data. The goal of this work is to identify gaps in data, and explore the utility of a new measurement tools in trade facilitation that can be readily used for cross-country analysis.

Trade facilitation is today a critical dimension in economic development. This is particularly true from the perspective of a developing country. In an environment of “just-in-time” manufacturing, outsourcing and global production sharing, firms cannot afford delays with complex and inefficient customs rules, lack of modern systems of information technology applied in maritime transport, and other areas of trade facilitation. Identification of bottlenecks – administrative, regulatory, or infrastructure related – can better equip developing countries to compete in international markets for goods. Inefficient and unnecessary import and export procedures impede trade flows. Reducing trade-related transaction costs can expand trade, create employment opportunity, and help achieve long-term poverty reduction goals.

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# **1.1  Trade Costs and Competitiveness**

There are various institutional, policy and physical barriers that prevent firms from getting their goods and services to (and from) the markets on time, and with quality.

A number of empirical studies have shown that easier movement of goods and services clearly effect export competitiveness. For example, Subramanian and Arnold (2001) show that logistics accounted for no less than a third of the cost of door-to-door shipment of containerized carpets from Nepal to Germany and teabags from India to the United Kingdom. Using a similar methodology, a World Bank (1997) study of the performance of Brazilian ports reported that per-container costs for administrative procedures and customs clearance could be reduced by more than 20 percent (from $1,727 to $1,320) if international best practices were followed. Customs-related transaction costs—red tape—can represent up to 10 percent of a shipment’s value in some countries (Staples, 2002). Costs are compounded if there is corruption and delay. More efficient procedures, electronic data exchange and minimizing redundancy can provide important benefits.

In developing countries, transit costs are routinely 2–4 times higher than in rich countries. For small economies, higher logistics costs can translate directly into higher import and export prices. For countries exporting products that have a high import content, as is the case with many developing countries, small differences in transaction costs can determine whether the export venture is commercially viable or not. This particularly holds for labor-intensive industries in developing countries, where high transport costs may preclude wage growth, affecting the standard of living of workers. Reducing logistics cost can also reduce inventory levels, thus freeing up working capital for more productive uses.

Given the importance of just-in-time production systems, minimizing transit time can enable firms to outsource stages of production to geographically dispersed locations. Research by Hummels (2001) showed that rapid delivery of goods is crucial for the maintenance of multinational vertical product chains. Hummels found that each day saved in shipping time due to a faster transport mode and faster customs clearance was worth almost one percent, ad valorem, for manufactured goods. Unreliable logistic services can force firms to maintain higher inventory holdings at every stage of the production chain, necessitating additional working capital<sup>_i_</sup> .

With increased attention to the benefits of reducing non-transport barriers to trade, efforts have been made to assess the importance of trade facilitation. Empirical measures of trade facilitation are lacking, however, and progress in quantifying the impact of modern trade facilitation has been limited. Several recent studies quantify the benefits of improved trade facilitation modeled as a reduction in the costs of international trade or as an improvement in the productivity of the international transportation sector<sup>_ii_</sup> . These results show clearly that when trade transaction costs are lowered, imports and exports rise.

The analysis of capacity building in trade facilitation in the Asia Pacific Economic Cooperation (APEC) by Wilson, Mann, and Otsuki (2003), was extended in the World Bank’s _Global Economic Prospects 2004: Realizing the Promise of the Doha Agenda._ The authors find that 2 __________________________________________________________________________________________________________
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enhanced capacity in global trade facilitation would increase world trade by approximately $377 billion dollars—an increase of about 9.7 percent. About $107 billion of the total gain comes from the improvement in port efficiency and about $33 billion results from the improvement in customs environment. The gain from the improvement in regulatory environment is $83 billion. The largest gain comes from the improvement in services sector and e-business usage ($154 billion). Overall, the gains from exporter’s improvements in trade facilitation dominate those from importer’s improvements. The results also imply that increased capacity to comply with The General Agreement on Tariffs and Trade (GATT) Article V (Freedom of Transit)measured by the ‘port efficiency’ indicator, Article VIII (fees and formalities connected with importation and exportation)measured by the ’customs environment’ indicator, Article X (publication and administration of trade regulations)- measured by the ‘regulatory environment’ indicator could raise global trade for all World Trade Organization (WTO) members.

# **1.2. Border Security and Trade Transaction Costs**

In the wake of September 11<sup>th</sup> and global concerns about terrorism, security measures have been adopted worldwide to inject stability into the global economy, raise investor confidence and facilitate trade. Millions of dollars have been spent to enhance port security, install advanced airport security equipment, strengthen customs authorities and bolster border security. While the United States has been the driver of the new protocols, security plans in other parts of the world have also been revised and strengthened.

In quantifying the impact of trade facilitation on growth, the security angle must be included. Greater security can lead to higher levels of foreign investment over time. Terrorist acts increase the risk premium and undermine investor confidence, making investors less keen to invest in new projects. Under such conditions, investors could become risk-averse – favoring low-risk, lower return investments as opposed to riskier, higher yielding long-term investments.

Measuring the impact of security programs on global trade is problematic, given the evolving nature of these initiatives. Security can increase trade costs by requiring costly changes in business practices and new investment in technology and infrastructure. Limited implementation capacity in developing countries to comply with the new requirements can affect export competitiveness. For example, to avoid delays and fines, shippers are adding extra cycle time to their supply chain. It is clear, however, that strengthened security can in the long-term significantly improve trade, growth, and development prospects around the world.

The September 11<sup>th</sup> terrorist attacks resulted in strengthened transport security that led to higher frictional costs relating to transport, handling, insurance and customs. These additional costs can affect trade even in the medium and long run (Walkenhorst and Dihel, 2002). Their study of the effects of September 11th on international trade indicates that regions with high trade to GDP ratios and sectors with elastic import demand incurred the greatest trade and welfare losses in relative terms. The authors estimate world welfare to decline by $75 billion per year as a result of a 1% ad valorem increase in frictional costs to trade<sup>2</sup> . While Western Europe and North America suffer the greatest loss in absolute terms; other regions such as South Asia, North Africa

> 2 This figure is comparable to the estimates of $30-58 billion losses for the insurance industry by  OECD (2002).

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and Middle East who are more dependent on foreign trade are the primary losers in relative terms.

The initial burden on ship operators due to the International Maritime Organization’s International Ship and Port Facility Security (ISPS) Code has been estimated to be at least USD 1 279 million and USD 730 million per year thereafter (Organization for Economic Cooperation and Development (OECD), 2003). The bulk of ship-related costs are related to management staff and security-related equipment expenditures. However, costs stemming from implementation of the ISPS Code for port facilities are likely to be as large if not larger. The ISPS Code provides that where a ship has called at a port facility that does not comply with the ISPS Code or where the facility is deficient in its compliance, that ship may be delayed, detained, or denied entry. This applies even if the ship itself fully complies with the ISPS Code.

At the same time, reduced security threats in the future with technology-intensive initiatives should be considered an investment – resulting in efficiency gains, greater use of electronic commerce, and enhanced security. Automated technology (bar codes, wireless communications etc.), greater information-sharing and security-inspired modernization measures — can accelerate global trade while improving security—a win-win situation. For example, costbenefit analyses of a new electronic customs manifest handling system can generate direct savings to American importers of USD 22.2 billion over 20 years, and savings to the US government of USD 4.4 billion over the same period. Delays in clearance of goods through customs that currently impedes competitiveness of developing country trade can also be reduced – contributing to port efficiency. According to recent research, automated customs can lower the direct costs of customs clearance by the equivalent of 0.2 percent of the value of traded goods. By accounting for the indirect benefits of reduced delays, costs are reduced by 1 percent of merchandise value. (Hertel, Walmsley, and Ikatura, 2001) In addition, outdated and corrupt customs systems, for example, not only increase security risks but also impede trade and raise transactions costs. Though customs fees and formalities usually constitute a small part of trade-related transactions costs, complex requirements in cross-border trade, however, clearly increases the scope for corruption. For example, at the key border crossing point between India and Bangladesh as many as 1,500 trucks queue up on both sides of the border with waiting times varying between one and five days to complete documentation requirements. This contributes to higher chances for bribery and corruption on the border. Customs reform can bring in additional revenue as well as cost saving in terms of reduced clearance time and increased efficiency in the movement of goods. Automation can enable Customs to apply principles of risk assessment to select shipments for examination more effectively.

In sum, cooperation in adopting collective measures to promote transport security, improving customs regimes, port facilities and logistics management has to be a priority. The initial costs of new security procedures will pay off in the long run through efficiency gains, better management of information, and greater use of electronic commerce. The end result would then be a global trading system that secures trade and accelerates trade flows simultaneously.

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# **2.  Existing Data Sets and Analytical Tools**

Performance indicators are necessary to encourage accountability by public agencies, measure the quality of their management, and evaluate the service to users. In addition, performance indicators can help in comparing a country’s efficiency with other countries as well as with acceptable benchmarks. They are also helpful in monitoring the impact of policy reform and other measures taken to reduce costs and facilitate trade.

Trade facilitation has most often been proxied by a single indicator, such as (1) import prices, (2) international transport costs, or (3) the productivity of a particular transportation mode (air, maritime, road). The traditional measures have to be replaced by something more consolidated that can be used more widely and that reflects transport and logistics efficiency. In a broader context, however, trade facilitation clearly involves policies and activities that accelerate the flow of goods and services across borders. This includes customs regimes, port infrastructure, transport systems and related infrastructure as well as information technology (as it relates to transport and logistics). Transport infrastructure includes road, railway, and inland waterway networks, as well as warehousing facilities and supporting communication systems that are essential for efficient transport services. With modern inland transportation networks countries are in a better position to supply foreign markets. Exporters can choose among different transport modes, and alternative ports and other transport platforms. Other barriers to trade are institutional and involve unreasonable customs delays or demands for bribes to expedite the movement of goods across borders.

A set of benchmark indicators to measure progress and outcomes based upon comparisons can provide a starting basis for quantifying trade facilitation. A compendium of these data sets and indicators of trade facilitation is provided in the following sections.

## **2.1 General Economic Indicators 2.1.1 Investment Climate Indicators**

## _<u>World Bank’s Rapid Response Unit</u>_

Rapid Response is a knowledge service specializing in policy advice on business environment reform and privatization policy in developing countries. Areas of expertise include comprehensive assessments of the business environment in developing countries, through both country-specific reports as well as comparative data used for benchmarking purposes. Their products include:

## _<u>Doing Business database</u>_

The Doing Business database provides objective measures of business regulations and their enforcement. The Doing Business indicators are comparable across 155 economies. They indicate the regulatory costs of business and can be used to analyze specific regulations that enhance or constrain investment, productivity and growth.

The topics covered include: 5 ____________________________________________________________________________________________________________
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- Starting a Business

- Dealing with Licenses

- Hiring & Firing Workers

- Registering Property

- Getting Credit

- Protecting Investors

- Paying Taxes

- Trading Across Borders

- Enforcing Contracts

- Closing a Business

# _<u>Investment Climate Surveys (ICS)</u>_

Investment Climate Surveys (ICS) provide both quantitative and qualitative information on a wide range of investment climate conditions and links them to their impact on firm productivity, investment and employment. The ICS -- including the Business Environment and Enterprise Surveys (BEEPS) joint with the EBRD -- report results from surveys of over 30,000 entrepreneurs in over 50 countries.

Investment climate surveys (ICS) measure entrepreneurs' perceptions of the investment climate in their country, and provide indicators of firm productivity and performance. All investment climate surveys are grounded in a <u>standard core module</u> (PDF, 180KB) that covers management’s perceptions of the severity of obstacles to operation and growth of the business. The standard core investment climate survey module also collects information on firm performance.

In addition to the core module, the investment climate surveys may be supplemented with questions from other detailed modules covering finance, labor, small and medium enterprises, and logistics, to name a few. These supplemental modules are used to explore in greater depth issues that may be topical or particularly relevant in any given country. Standard investment climate surveys are administered to the manufacturing sector in urban areas. Other sector-specific investment climate survey instruments are also being developed, including questionnaires for the hotel and tourism industry, retail-trade sector, rural manufacturing, information technology, and informal firms.

About 20 firm level surveys are being carried out each year, with a 4-5 year cycle. The firm-level survey is complemented with analysis from other studies, as wells as discussions and meetings with key stakeholder groups. For example, indicators on entry regulation estimate the procedures, time, cost and minimum capital requirements to register a business formally, thus highlighting the microeconomic and institutional conditions inhibiting productive investment. These assessments will ultimately feed into operations and technical assistance.

Several of the investment climate surveys also contain detailed information on transportation constraints including trade facilitation programs. There are data on questions such as the number of competitors, suppliers, customers, and percentage of firms that find transportation and customs and trade regulations to be “major” or “very severe” constraints, infrastructure 6 __________________________________________________________________________________________________________
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indicators, regulatory and administrative delays (including average days to clear customs). The logistics module for firm surveys is an optional module and is being implemented in selected countries where the logistics module supplements the Core ICS. (Please see <u>Annex B</u> for the logistics module).

# _IMD:_ _<u>World Competitiveness Yearbook</u>_

The International Institute for Management Development, based in Switzerland produces an annual publication that ranks nations’ environments and analyzes their ability to provide an environment in which enterprises can compete. It is an annual report that measures the competitiveness of 59 countries and regional nations, by 321 different criteria grouped under four competitiveness factors (economic performance, government efficiency, business efficiency, and infrastructure). Through collaboration with 52 institutes worldwide, the yearbook also draws data from international and regional organizations. It differentiates between economies with populations larger and smaller than 20 million since size does determine competitiveness.

Related measures include: Bribing and corruption does not exist in the economy; Bureaucracy does not exist in the economy; Transparency of government policy is satisfactory; Customs authorities facilitate the efficient transit of goods.

# _<u>IMD World Competitiveness Online</u>_

Using 314 factors, this online version of the IMD's World Competitiveness Yearbook analyzes and ranks the ability of 60 national and regional economies to create and maintain an environment that sustains the competitiveness of enterprises. It allows customized selection of data and countries/regions, and data can be displayed and saved in PDF or Excel format.

# _European Bank for Reconstruction and Development (EBRD) Transition Report_

The Transition Report provides information on developments in central and Eastern Europe and the Commonwealth of Independent States (CIS). The 2002 edition also analyses the second round of the Business Environment and Enterprise Performance Survey, covering close to 6,000 enterprises in 26 countries of the region. The survey provides useful insight into the quality of the business environment in the region and how it varies between countries and different types of firm. The first round of the survey which was analyzed in the 1999 Transition Report, examined how reforms influence the performance of firms, by considering differences in reforms both at the country level, in terms of the pervasiveness of soft budget constraints and assessments of the investment climate, and at the level of enterprises themselves, in particular the degree of competition faced by firms and their origin and ownership.

# _<u>World Business Environment Survey (WBES)</u>_

The World Business Environment Survey (WBES) is a survey of over 10,000 firms in 80 countries and one territory conducted in 1999-2000 that examines a wide range of interactions between firms and the state. Based on face-to-face interviews with firm managers and owners, 7 ____________________________________________________________________________________________________________
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WBES is designed to generate comparative measurements in areas like corruption, judiciary, lobbying, and the quality of the business environment. To provide the most transparent, flexible and user-friendly approach to access the data and prepare charts and tables, an interactive webtool has been developed to work with the WBES. In the data analysis, these business climate constraints are related to specific firm characteristics and firm performance. Some indicators related to trade facilitation include:

- Burden of customs/foreign trade regulations (no obstacle, minor obstacle, moderate obstacle, major obstacle);

- Quality and efficiency of public services (roads, water etc.) (from very bad to very good);

- Quality and efficiency of customs;

- Time taken to clear customs.

_Investment Climate Around The World: Voices of The Firms from The Business Environment Survey_ (G. Batra, D. Kaufmann, A.H.W Stone 2003) presents the core WBES questionnaire and survey findings, and confirms the significance of key country conditions on firm performance and behavior. The findings provide a basis for regional comparison, but suggest the need for caution when averaging across categories, especially in light of country conditions that can significantly affect firm-level sales and investment. (See <u>Annex A</u> for additional detail) _<u>Investment Climate Assessments (ICAs)</u>_ Investment Climate Assessments are comprehensive country reports that draw upon the results of Investment Climate Surveys and other available diagnostic tools. They identify and prioritize investment climate constraints, benchmark reform progress, provide cross-country comparisons of investment climate indicators, and help countries forge broad consensus on priority areas for reform. These assessments ultimately feed into World Bank operations and technical assistance.

Investment Climate Assessments have been completed for 18 countries and more are underway, including Chile, Mongolia, Oman, South Africa, Syria, Thailand, and Turkey.

Dollar, Hallward-Driemeier and Mengistae (2003) provide various infrastructure indicators for 10 countries based on firm-level surveys in Bangladesh, Brazil, China, Honduras, India, Nicaragua, Pakistan, and Peru. The standardized surveys highlight the monetary costs of bottlenecks and delays in infrastructure services such as power, telecom as well as customs administration (See <u>Annex C).</u> In addition, work is underway on _country level supply chain/ logistics studies_ that are diagnostic assessments of logistics costs for selected strategic products using a supply chain approach in several countries. The methodology is being built on information used for _Forging Subregional Links in Transport and Trade Facilitation (2001)_ . Nigeria, Kenya, Lesotho, Ghana, Honduras, Nicaragua are some of the countries where these studies will be carried out.

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# _<u>World Economic Forum: Global Competitiveness Report (GCR)</u>_

The World Economic Forum is an independent organization which identifies strategic issues and provides a platform for decision-makers to effect constructive change. The Forum facilitates dialogue between corporate, political, intellectual and other leaders on matters of global, regional, corporate and industry importance.

The fundamental objective of the _Global Competitiveness Report_ (GCR) is to evaluate the economic competitiveness of a large sample of countries. Traditionally, the GCR has focused on two complementary approaches to analyzing competitiveness. The first, called the _Growth Competitiveness Index (GCI)_ , was developed by Jeffrey D. Sachs of Columbia University and John W. McArthur of The Earth Institute and was presented in _The Global Competitiveness Report 2001–2002_ .The second index, now labeled the _Business Competitiveness Index (BCI)_ , was developed by Michael Porter of Harvard University and was first introduced in _The Global Competitiveness Report 2000_ .

The two indexes combine available hard data and data from the Executive Opinion Survey (Survey) conducted annually by the World Economic Forum. The Survey is conducted in the first half of every year. Input is contributed exclusively by leading business executives and entrepreneurs whose current perceptions of the business environment in which they work are captured in their responses to a comprehensive and scientifically constructed questionnaire.

GCR includes an index based on quality perception for rating railroad services, port facilities and air transport services (Ranking from 1 to 7, with 1=underdeveloped, 7=developed as the world’s best). GCI 2004-2005 covers a total of 104 countries and BCI covers a total of 103 countries.

# **2.1.2 Governance Indicators**

# _The World Bank_ _<u>Governance Indicators : 1996-2004</u>_

This dataset contains composite indicators of six dimensions of governance (Voice and Accountability, Political Stability/Lack of Violence, Government Effectiveness, Regulatory Framework, Rule of Law, and Corruption Control). The indicators reflect the statistical compilation of perceptions of the quality of governance of a large number of enterprise, citizens and expert survey respondents in industrial and developing countries, as well as nongovernmental organizations, commercial risk rating agencies, and think-tanks. Data are available for over 160 countries and can be accessed online. Existing indicators of governance and institutional capacity, by source with a brief description of how each indicator differs from one another, as well as selected papers are available at the _<u>public sector website</u>_ <u>.</u>

# _<u>Transparency International:</u> Corruption Perceptions Index_

The Corruption Perceptions Index ranks countries in terms of the degree to which corruption is perceived to exist among public officials and politicians. It is a composite index, drawing on 14 different polls and surveys from seven independent institutions carried out among business 9 ____________________________________________________________________________________________________________
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people and country analysts, including surveys of residents, both local and expatriate. TI focuses on corruption in the public sector and defines corruption as the abuse of public office for private gain.

_<u>The EBRD-World Bank Business Environment and Enterprise Performance Survey (BEEPS)</u>_ BEEPS was developed jointly by the World Bank and the European Bank for Reconstruction and Development, is a survey of managers and owners of more than 20,000 firms across the countries of Central and Eastern Europe, the former Soviet Union, and Turkey. The survey has been carried out in three rounds: <u>1999, 2002</u> and 2005.

The BEEPS is designed to examine the quality of the business environment as determined by a wide range of interactions between firms and the state, including in the following areas:

- Problems Doing Business

- Unofficial Payments and Corruption

- Crime

- Regulations and Red Tape

- Customs and Taxes

- Labor Issues

- Firm Financing

- Legal and Judicial Issues

- Infrastructure

<u>2005 Questionnaire</u>

# **2.2 Trade Indicators**

_<u>OECD-WTO: Doha Development Agenda Trade Capacity Building Database (TCBDB)</u>_ The TCBDB has been established by the WTO jointly with the OECD to provide information on trade-related technical assistance and capacity building projects. It covers national as well as regional projects. It is an on-going activity and the 2004 Joint WTO/OECD Report on TradeRelated Technical Assistance and Capacity Building was circulated in December. At present, the period of coverage is 2001, 2002, 2003, partial 2004 and subsequent years. Data is reported from bilateral donors and multilateral/regional Agencies.

A search of the database can be performed either by trade category or beneficiary country or donor country or agency. The statistical analysis option allows quantitative analysis of trade capacity building data by these categories.

# _<u>COMEXT</u>_

Statistics on the trade flows between European Union Members and between each of them and their approximately 200 partner countries world-wide. Approximately 9,500 product groups based on the Combined Nomenclature, an eight-digit sub-division of the Harmonized System, can be monitored. Annual data from 1988 onwards and monthly data from January 2000 onwards. Produced by Eurostat, the Statistical Office of the European Union.

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# _<u>Stat-USA</u>_

Comprises GLOBUS & NTDB, The International Trade Library, and State of the Nation. Produced by the U.S. Department of Commerce.

GLOBUS (Global Business Opportunities) offers daily trade leads from the U.S. Trade Opportunities Program and U.S. Department of Agriculture. It also offers daily procurement activity from the Defense Logistics Agency, the United Nations and the Commerce Business Daily leads.

NTDB provides access to Country Commercial Guides, Market Research Reports, and Best Market reports. It also provides U.S. import and export statistics and other information. The International Trade Library is a comprehensive collection of over 40,000 documents related to international trade. All are keyword and full-text searchable.

State of the Nation provides U.S. domestic financial and economic information from throughout the U.S. federal government and other related entities.

# _<u>WITS (World Integrated Trade Solution)</u>_

Commodities trade database designed by the World Bank. Contains trade statistics from the COMTRADE database made available by the United Nations Statistics Division. WITS also contains tariff rates and non-tariff barriers and provides import and export data for 110 countries. For many of the countries, data can go back to 1962 and may be available up to the current year. Annual international trade statistics are detailed by commodity and partner country. Allows data to be viewed by product classification, reporting country, direction of trade flow, product, or year. Users can create and save queries for multiple countries, products, years, and flows; check data availability by country and product classification; create country and product groups; calculate simple averages or weighted tariffs rates; calculate effects of tariff reductions using the simulation function; and extract data in Excel format.

# _<u>Global Monitoring Report 2004; Overall Trade Restrictiveness Index (OTRI)</u>_

Global Monitoring focuses on how the world is doing in implementing the policies and actions for achieving the MDGs and related development outcomes. It is a framework for accountability in global development policy. The 2004 Global Monitoring Report is part of a five-year stocktaking effort to monitor progress towards achieving the Millennium Development Goals by 2015.

When the focus is on measuring the trade effects of policies on an importing economy, the trade restrictiveness index can be defined as the equivalent uniform tariff that would keep imports constant. When the focus is on an exporting country’s perspective (market access), the index is the equivalent uniform tariff implied by the set of policies maintained by each country (or all importers) on that economy’s export bundle. The OTRI is calculated as the weighted sum of nominal tariffs and the ad valorem equivalent of nontariff measures at the tariff line level. OTRIs are negatively correlated with GDP per capita—the higher is a country’s GDP per capita, the lower is its trade restrictiveness as measured by the OTRI. For developing countries for which such data are available, OTRIs are positively correlated with poverty headcounts: the higher is a country’s trade restrictiveness, the poorer it tends to be.

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# **2.2.1 Standards and Technical Regulations**

# _<u>World Bank Technical Barriers to Trade (TBT) Database</u>_

The Bank conducted a survey of 690 manufacturing firms in 17 developing countries for the period 2001-02 to obtain information on relevant standards, government regulations, and technical barriers to trade (TBT) confronting exporters wanting to expand output, exports, or enter developed country markets. The country and sectoral coverage is relevant to allow comparisons. The information will include data on:

- Production costs, including fixed costs;

- Output measures, including domestic sales, exports;

- Measures for assessing market structure;

- Major obstacle facing firms;

- Assessment by firm managers of the cost compliance with TBTs.

Firm managers carried out assessments of the costs of compliance with TBTs in 4 activity types (1) investing in equipment and plant, (2) investing in product re-design, (3) hiring labor for production, (4) hiring labor for product testing. The release date is June 7, 2004.

# _<mark>World Bank: Global Economic Prospects –</mark> Wilson, Mann, Otsuki 2004_

This database by Wilson, Mann, Otsuki, includes four variables, and is constructed for 75 global countries from survey data across countries published in year 2000. Each measure is defined as an arithmetic average of multiple inputs from several data sources that are normalized to be a mean of one. A raw series (which is an observation representing a country) of survey inputs is indexed to the maximum of all the countries’ value for the raw series (e.g. global best practice). The maximum is used as a benchmark since this easily indicates how far a country’s performance is from the best practice country whose indexed value is 1.0. The data set builds on Kaufmann, Kraay and Zoido-Lobaton (2002) (KKZ) and World Economic Forum Global Competitiveness Report (GCR), and World Competitiveness Yearbook 2000 (WCY).

An average of the two indexed inputs is used to form each of four trade facilitation measures. Those survey inputs are:

- Port efficiency: designed to measure the quality of infrastructure of maritime and air ports.

- Port facilities and inland waterways (GCR);

- Air transport  (GCR);

- Customs environment: designed to measure direct customs costs as well as administrative transparency of customs and border crossings. `o` Hidden import barriers  (GCR);

- Irregular extra payments and bribes (GCR);

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- Regulatory environment: designed to measure the economy’s approach to regulations `o` Transparency of government policy is satisfactory (WCY); `o` Control of Corruption (KKZ);

- Service sector infrastructure: designed to measure the extent to which an economy has the necessary domestic infrastructure (such as telecommunications, financial intermediaries, and logistics firms) and is using networked information to improve efficiency and to transform activities to enhance economic activity.<sup>3</sup> `o` Speed and cost of internet access (GCR);

- Effect of internet on business (GCR).

**(** <u>Annex E</u> provides the ranking of countries in each trade facilitation measure.)

# _<u>Trade Agreements Database and Archive, Tuck School of Business at Dartmouth</u>_

The Tuck Trade Agreements Database contains the most comprehensive collection of texts of bilateral and regional free trade agreements available on a single online site as well as the only database of free trade and customs union agreements text-searchable by provision or keyword. The database contains searchable versions of all bilateral and regional free trade agreements and customs union agreements notified to the WTO as of June 1, 2003, and are in force, plus many that have not been notified to the WTO. The agreements in the database have been indexed in a format developed by CIB that is a greatly expanded version of the "standard format" for notification to the WTO. The archive contains the full texts of all of the agreements in the database, which can be downloaded in PDF format.

# _<u>European Union (EU) Market Access database</u>_

The Market Access Database is an important operational tool of the European Union's Market Access Strategy, supporting a continuous three-way exchange of information between: the EU institutions, Member States and European business. The Market Access Strategy is part of the EU's trade policy approach to reduce obstacles faced by European exporters of goods and services. The Market Access Database provides nformation on:

- Sectoral and Trade Barriers

- Information on export and investment conditions in non-EU countries, including all our major trading partners. In addition, you can identify trade barriers affecting you in the individual countries.

- Applied Tariffs By simply entering an HS code or product description, this section will provides duties and taxes applicable to your products, allowing you to calculate a landed cost.

- Exporters' Guide to Import Formalities Information on import procedures and documents required for the import of a particular product is available by simply entering an HS code or product description.

> 3 For further discussion of the relationship between domestic infrastructure and e-commerce, see Mann, Eckert, and Knight.

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- Statistical Database

- An overview of trade flows between the EU and non-EU countries, accessed by simply entering an HS code or product description, can be obtained from this section.

- Studies

- Full text reports on market access related studies referring to geographical areas, selected business sectors or relevant horizontal issues (e.g. labelling).

# _<u>United States International Trade Commission (USITC): Dataweb</u>_

The USITC Interactive Tariff and Trade DataWeb provides international trade statistics and U.S. tariff data to the public full-time and free of charge. U.S. import statistics, U.S. export statistics, U.S. tariffs, U.S. future tariffs and U.S. tariff preference information are available on a selfservice, interactive basis. The USITC DataWeb responds to user-defined queries integrating international trade statistics with complex tariff and customs treatment, and allows both expert and non-expert users to create and save customized country and product lists for future re-use from anywhere in the world.

International trade data are available for years 1989- present on a monthly, quarterly, annual, or year-to-date basis and can be retrieved in a number of classification systems, including the Harmonized Tariff Schedule (HTS), the Standard International Trade Classification (SITC), or the North American Industry Classification System (NAICS). Pre-defined reports on international trade statistics are also available by geographic region and partner country. Current U.S. tariffs, which are maintained and published by the USITC as a statutory responsibility, can be accessed via the USITC DataWeb, and retrieved with relevant international trade data.

The United States Trade Representative 2005 National Trade Estimate Report on Foreign Trade Barriers The 2005 National Trade Estimate Report on Foreign Trade Barriers (NTE) is the twentieth in an annual series that surveys significant foreign barriers to U.S. exports. The report provides, where feasible, quantitative estimates of the impact of these foreign practices on the value of U.S. exports. Information is also included on actions taken to eliminate barriers.

The NTE provides an account of barriers and unfair trade practices to American exports of goods, services, and farm products. Besides limiting opportunities for U.S. businesses and farmers, such barriers also undermine the benefits that foreign countries, particularly developing countries, see from trade liberalization. The NTE covers 61 major trading partners in each region of the world and profiles policies restricting market access.

# _<u>Protection Effect Survey</u>_

Ronald Fischer at University of Chile conducted in-depth interviews of 15 Chilean firms in terms of non-tariff barriers. The dataset includes a set of protectionist measures such as administrative measures, invasive inspection of containers, the misuse of phitosanitary and other standards for protection, etc..

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The UNCTAD maintains a database of tariff and non-tariff measures. This database, the Trade Analysis and Information System (TRAINS) database, contains tariff-line information on Trade Control Measures (tariff and non-tariff measures) classified according to the UNCTAD Coding System of Trade Control Measures.

UNCTAD also produces <u>a</u> _<u>Handbook of International Trade and Development Statistics</u>_ . This Handbook, based on existing international and national data sources, is intended to provide a complete basic collection of statistical data relevant to the analysis of world trade and development for the use of the UNCTAD, government officials, university and research specialists, and others interested in these subjects.

A paper by _<u>Francis Ng and Alexander Yeats</u>_ has a statistical data appendix on trade barriers in 80 developing countries. The tables provides details as to how this information was used to compute country specific information on trade and non-tariff barriers, and also gives detailed statistics on these national trade barriers and the profiles of protection in the developing countries.

# _<u>SITPRO</u>_

SITPRO is the facilitation body of the U.K. SITPRO started a project in 2002 on measuring and comparing the regulatory cost of international trade on a consistent basis. This initiative called International Trade Regulatory Costs Survey (ITReCS, and recently changed to Interact) develops benchmarks (indicative costs for specific activities) by gathering regulatory costs data of international trade from individual companies in different sectors. Its methodology can allow companies to calculate their own costs of compliance and then compare them with benchmarks covering the core costs that impact the majority of cross-border movements of goods. Costs include direct costs of third parties, such as a forwarder’s or broker’s account for entry/clearance services, and costs incurred by companies in employing personnel and facilities to achieve customs/trade law compliance and planning. While the pilot surveys are of US companies, SITPRO intends to expand the surveys to the EU, Brazil, India, China, Japan, South Korea, and Eastern Europe.

# _<u>PERINOM Database</u>_

Perinorm is a bibliographic database, viable on annual subscription, dedicated to standards and technical regulations enquiries. It is the world's leading bibliographic database of national, European and international standards from, <u>21 countries, a total of more than 1,000,000 records.</u> Available in three languages both on CD and online (English, French & German), Perinorm comes with a monthly update. The quality of information is guaranteed by the monthly direct delivery realized by each institute.

Perinorm allows you to make quickly and easily your documentation queries and references management. The quality of the content is due to direct delivery realized monthly, by each institutes.

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# **2.3 Customs and Border Crossing Times**

The performance of customs is one of the focal points of international trading. Longer clearance times is normally associated with lower efficiency in port operations management, complex cumbersome procedures and higher transport costs dues to high costs of storage etc. Reducing clearance requirements and guaranteeing fast and predictable release of goods is an important function of customs administrations. The effectiveness of a Customs administration can be measured by the average time taken between the arrival of the goods and their release. This helps Customs identify both the trouble areas and counteractive actions to increase their efficiency. It can also help Customs respond to tight production schedules and just-in-time inventory systems that need forward planning. Computerization of customs procedures at the border crossing stations and electronic filing of customs declarations can increase efficiency, improve compliance, facilitation and reduce long delays in customs clearance.

# _<u>Doing Business: Trading Across Borders -- 2006</u>_

The Doing Business Database provides objective measures of business regulations and their enforcement. The Doing Business indicators are comparable across 145 economies. They indicate the regulatory costs of business and can be used to analyze specific regulations that enhance or constrain investment, productivity and growth. It provides indicators of the cost of doing business by identifying specific regulations that enhance or constrain business investment, productivity, and growth. The indicators were developed by Bank in cooperation with the Lex Mundi Association of law firms and the International Bar Association.

The principal data collection methods for the indicators are the study of the existing laws and regulations in each economy; targeted interviews with regulators or private sector professionals in each topic; and cooperative arrangements with other departments of the World Bank, other donor agencies, private consulting firms, business and law associations. The project team prepared a set of templates or questionnaires for use by staff of the World Bank Group, or other agencies, in their work on business environment issues.

Trading Across Borders is one of the 12 topics of Doing Business 2006, which compiles procedural requirements for trading a standardized shipment of goods. Every official procedure for importing and exporting the goods is recorded - starting from the final contractual agreement between the two parties, and ending with the delivery of the goods. All documentation and signatures required for country clearance of the goods are also recorded. For importing the goods, the procedures measured range from the vessel’s arrival at the port of entry to the shipment’s delivery at the factory warehouse. For exporting the goods, the procedures measured range from the packing of the goods at the factory to their departure from the port of exit.

Local freight forwarders, shipping lines, custom brokers, and port officials provided information on required procedures, documents, and signatures, as well as the time to complete each procedure. In all countries, at least one freight forwarder and another source provided the data. Due to the scope of a freight forwarder’s daily activity, the respondents have an overall view of the trade process from start to finish.

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Global Logistics and Port indicators include:

- Customs Performance (e.g., customs clearance time and cost; percentage of consignments inspected)

- Bureaucracy/red-tape associated with typical trade transactions (e.g. number of signatures; time and costs for processes from order to delivery)

- Port performance (e.g., container waiting time at ports, time to enter port, vessel turn – around time)

# _<u>International Exhibition Logistics Associates (IELA)</u>_

IELA, a trade association has prepared average clearance time through customs for 67 countries. The data on customs clearance is collected from local agents in different countries, who report these times to the association based on their experience. The clearance is related to the exhibition in a particular country, and differs from commercial clearance. The procedures followed for clearance of cargo for an exhibition are normally longer, since the entry is on a temporary basis. Also, there is very little information on developing countries.

# _<u>Trade and Transport Facilitation in Southeast Europe Program (TTFSE)</u>_

The TTFSE regional program was established in 1998 with support from the World Bank, the EU, and bilateral partners. Based on face-to-face interviews and discussions with representatives of companies, the TTFSE is a continuation of the monitoring work during 2001-03 to ascertain whether improvements for customs users are possible or not. Its methodology is participatory in nature – seeking to give ownership to the different stakeholders. Operating in eight southeast European countries<sup>4</sup> , it aims to create a framework for facilitating trade by encouraging more efficient and less costly trade flows, and to modernize customs administrations and other border control agencies. It seeks to reduce non-tariff costs to trade and transport (processing time for traders and transporters, “facilitation payments”, smuggling and corruption at border crossings, reduced waiting times), as well as increase the efficacy of anti-smuggling methods.

TTFSE consists of the following project components: Customs Services Procedures Reform, Trade Facilitation Development, Support to Integrated Customs Information System (ICIS), Improvement of Roads and Border Crossing Facilities, and Program and Project Implementation.

As part of the TTFSE Program, all countries involved agreed to measure performance indicators of two types :

- Data on the performance and efficiency of Customs Administrations in Southeast Europe since 1999

- Data on the border crossing times and clearance times, as experienced by users at the TTFSE pilot sites.

> 4 Albania, Bosnia-Herzegovina, Bulgaria, Croatia, Romania, Serbia, Moldova, FYR Macedonia.

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The Excel workbook provides these data both at a regional level and by pilot site. It is based on the methodology described in details in the <u>TTFSE Manual. (Please see Annex F</u> for definitions) The methodology entails measurement of processing times at pilot sites, usually on a monthly basis, and of the overall Customs performance on an annual basis. Performance at pilot sites are measured by the National Customs Administrations of the countries concerned with support of US Customs consultants under the TTFSE program.

_-_ _<u>Global Express Association Country Market and Customs Barriers Reports</u>_ The Global Express Association represents the international express delivery companies that serve over 215 countries, carrying over 30 million packages each day, all of them guaranteed to be delivered within specified time frames. The report is a summary of information about 150 countries based on a detailed questionnaire. Questions asked on market access restrictions include restrictions on entry to the express delivery sector, foreign investment, and the use of local services. Questions asked on customs restrictions are categorized into transparency, customs efficiency, and post-release processes.

# _<u>CSCMP: Annual US State of Logistics Report</u>_

Delivered each June by Rosalyn Wilson, _The US State of Logistics Report_ is published annually by The Council of Supply Chain Management (CSCMP), formerly called the Council of Logistics Management (CLM), which is the association for individuals involved in supply chain management.

Total logistics cost normally includes trade and internal logistics. This often is cited as 10% of GDP for advanced countries, and 20% or more for developing countries. This report is a compilation of statistics about transportation and business logistics, and includes statistics on logistics costs/GDP and inventories.

The 16<sup>th</sup> annual report published in June 2005 is titled _Security Report Card—Not Making the Grade._ _–_ _<u>World Customs Organization (WCO) Time Release Study</u>_ In 2002, the WCO outlined a methodology to help customs administrations measure the time required for the release of goods (normally from the time of arrival of goods at the port/airport/land border until their release to the importer or a third party on his behalf). The methodology can also be used to measure the time necessary for clearance given by customs after the payment of duties and taxes. This could be useful in identifying bottlenecks in the process of clearing goods, reasons and possible solutions to any problems -improving the efficiency and effectiveness of clearance procedures. The study can be used as a basis for future to identify where measures are required to simplify procedures. The methodology chosen can assist a Customs administration in comparing the results obtained by means of the standardized system with previous studies, especially when introducing changes in Customs procedures.

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GDP forecasts are based on the latest forecasts of the EU statistical office (Eurostat) in its "Quarterly National Accounts ESA". In those countries where forecasts are not available, trend analysis and average growth of neighboring countries are used to make the forecasts. Registration forecasts are based on time series analyses, taking into account other factors such as the development of transport volumes and GDP. Transport volumes forecasts are made using NEAC Transport Simulation System which quantifies the relationship between production sectors and the transport they generate, using various economic scenarios, to estimate future transport volumes in and between 176 regions.

# _-_ _<u>Organization for Economic Co operation and Development (OECD)</u>_

A paper _Quantitative Assessment of the Benefits of Trade Facilitation_ by Walkenhorst and Yasui (2003) presented at the 2003 Bangkok APEC Capacity Building Workshop develops two indicators-border process quality and border waiting time- to measure customs efficiency for 102 and 80 countries worldwide, respectively. Indicator of border quality suggests that those countries with higher per capita income generally have superior border process quality than ones with lower levels of per capita income. The border process quality indicator combines four subindicators from three data sources: Global Competitiveness Report, World Competitiveness Yearbook and Compendium of Trade Facilitation Recommendations.

Based on the methodology applied by Wilson, Mann and Otsuki (2003), the survey includes information on the border process environment (customs efficiency, hidden import barriers, administrative integrity), and government commitment toward trade facilitation (based on implementation of nine trade facilitation instruments). The value of the indicator varies from 0.25 to 1.85 implying that the country with the worst indicator value received a score in the rankings that was 75% below average, while the one with the highest value scored 85 percent higher than the average. The Border Waiting Time indicator is constructed by combining Hummel’s (2001) estimate of willingness-to-pay for saving time for shipment and WBES on typical border waiting time.

# _<u>International Road Transport Union (IRU)-Indices on road transport performance</u>_

Border delays are a costly handicap for trade and tourism. IRU provides a web application with up-to-date information on delays for coaches and trucks at principle border crossings in Central and Eastern Europe, which is designed to provide road transport operators with a practical planning aid. It is updated daily from Monday to Friday, using information supplied by IRU national Member Associations.

IRU indices on road transport performance give estimates of Western European countries’ economic growth, truck registration and transport volumes - indicators that are closely followed in the specialized transport and economic press and by transporters who need to follow the various national trends affecting their operations.

For 17 European countries, the IRU compiles road transport indices that give estimates of Western European countries’ economic growth, truck registration and transport volumes 19 ____________________________________________________________________________________________________________
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indicators that are closely followed in the specialized transport and economic press and by transporters who need to follow the various national trends affecting their operations. GDP forecasts are based on the latest forecasts of the EU statistical office (Eurostat) in its "Quarterly National Accounts ESA". In those countries where forecasts are not available, trend analysis and average growth of neighboring countries are used to make the forecasts. Registration forecasts are based on time series analyses, taking into account other factors such as the development of transport volumes and GDP. Transport volumes forecasts are made using NEAC Transport Simulation System which quantifies the relationship between production sectors and the transport they generate, using various economic scenarios, to estimate future transport volumes in and between 176 regions.

# _<u>United Nations Economic and Social Commission for Asia and The Pacific (UNESCAP)</u>_

The report _Transit Transport Issues in Landlocked and Transit Developing countries (2003)_ includes average and maximum waiting times at the border for several landlocked Asian countries: LAO PDR, Mongolia, Nepal, Uzbekistan and Kazakhstan. The intention is to extend the study to border crossings along the Trans Asian corridors.

For individual countries, the _<u>Moroccan Government</u>_ provides detailed data for several years on clearance through Customs. Recent DTIS studies and Trade and Transport Facilitation Audits carried out in select countries are also good sources of information.

“ _–_ _<u>Trade and Transport Facilitation An Audit Methodology</u>_ ”, published by the World Bank in April 2000, the toolkit has incorporated changes to reflect new developments such as recent antiterror security requirements, important trade facilitation initiatives. The toolkit seeks to link audit results, through careful analysis, to appropriate remedial Action.

_<mark>World Bank Trade and Transport Facilitation Audits (TTFAs)</mark>_ are being carried out to identify the obstacles associated with the cross-frontier movements of a routine assignment and means of related payment by both exporters and importers. These standardized audits should: (i) enable more systematic cross-country and historical benchmarking; (ii) be readily reusable by multiple institutions (through an integration of their requirements in surveys/instruments); (iii) improve effectiveness of reviews; (iv) reduce the present duplication of efforts; and (v) enable countries to conduct their self assessment.

Based on interviews, TTFAs focus on the effectiveness of procedures and costs of services available to international trade encompassing:

- Inland, sea, and air transport costs related to movements of both inputs and outputs;

- Quality and range of logistics services and infrastructure;

- Trade finance and sources of commercial risk;

- Procedural and documentary requirements;

- Information exchange and coordination between private and public parties.

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Though the audit is tailored mainly for World Bank operations, it can be applied in several projects by other agencies. For example, it can be implemented within the context of a transport or export competitiveness project, or as a stand alone exercise. Additional information is available at: www.worldbank.org/trade.

# _<u>Transit Corridors Europe Caucuses Asia (TRACECA)</u>_

This program was initiated by the European Union in 1993 to develop a transport corridor on west-east axis from Europe, across the Black Sea, through the Caucasus and the Caspian Sea to Central Asia. <mark>As part of TRACECA’s Harmonization of Border Crossing Procedures Project, a ‘BordAudit’ Database from 70 border crossing points in several countries</mark><sup>5</sup> <mark>has been established providing detailed information on the procedures observed (including a breakdown of the time</mark> spent on each procedure) and main documents required when crossing the borders by road, rail, and sea. Subsequent recommendations concerning harmonized border procedures have been based on this database.

The online country overview includes the list of the Technical Assistance Studies and the Investment Projects for the Rehabilitation of Infrastructure in each country and general information on the country.

# **_2.3.1  Tariff and Customs_**

The International Chamber of Commerce (ICC) produced _<u>Customs Guidelines</u>_ with the WCO, a comprehensive set of practices that the ICC consider should characterize all modern Customs administrations. The World Bank produced _<u>Customs Modernization Handbook,</u>_ which provides practical guidelines that draw lessons from successful customs modernization examples and reform initiatives. These reports are useful guidance for the recurring issues of current customs modernization initiatives.

_<u>Asia Pacific Economic Cooperation Tariff Database</u>_ Tariff rates for all 21 members of APEC .

The APEC Tariff Database is the Internet site with tariff information for the APEC member economies. After registration, you can access the following features:

- Tariff Chapter Listing Search

- Harmonized System Code or Tariff Heading Search

- Alphabetized Tariff Heading Listing Search

- Description Search

- Customs Guides and other related information (e.g. prohibitions, concessions, contacts, etc.)

- Global Search

The APEC Tariff Database is updated twice each year. Changes to tariff rates may occur between these update periods. These updates are dependent on the submission of data by the participating economies. Users are tariff related information such as Contacts, Prohibitions, Customs Guides, etc., provided by the member economies. Choose the one below that suits your

> 5 Armenia, Azerbaijan, Bulgaria, Georgia, Kazakhstan, Kyrgyz Republic, Moldova, Mongolia, Romania, Tajikistan, Turkmenistan, Turkey, Uzbekistan and Ukraine.

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needs advised to refer to the official version of the tariff in use in the member economy of dealing.

Five viewing options are available that will allow you to search for tariff-related information. You may search tariffs by chapter, tariff heading, Harmonized System Code, alphabetized order, or description.

# _<u>Country and Regional Tariff and Tax Resources</u>_

Country specific tariff and tax information, as well as internet links to online sources for 81 countries. EU Tariff and Tax Basics, Shipping to U.S. Territories, How to Get U.S. Import Duty Information.

_<u>Customs Rulings Online Search System (CROSS)</u>_ CROSS is a searchable database of CBP rulings that can be retrieved based on simple or complex search characteristics using keywords and Boolean operators. CROSS has the added functionality of CROSS referencing rulings from the initial search result set with their modified, revoked or referenced counterparts.

Rulings collections are separated into Headquarters and New York and span the years 1989 to present. Collections can be searched individually or collectively. Related Trade Information includes;

- Downloadable rulings - from 1990 to present.

- Trade related links - Includes links to the Harmonized Tariff schedule, Customs Bulletins, Informed Compliance, and Code of Federal Regulations.

- Customs Valuation Encyclopedia (1980-2003).

# _<u>European Union - Transit-COL</u>_

The Transit Customs Office List (COL) Home page comprises the list of authorized customs offices for Community/common transit operations. The Commission develops and operates several databases in conjunction with Member States' Customs and Taxation Services. The databases are parts of the information systems of Taxation and Customs Union. The acronym DDS designates 'Data Dissemination System'.

Tariff information is provided via <u>Taric code, and Taric description. Information on quotas in</u> force <u>via origin or order number.</u> Information on autonomous tariff quotas coming under Council Regulation (EC) No 2505/96, in preparation, via <u>publication cycle or chapter.</u> The EUROPA webserver provides Customs Office Information (Perform Queries on COL <u>Information) and Customs Office Data (Download the data).</u> Other database includes VIES VAT number validation, AUTONOMOUS TARIFF SUSPENSIONS, European Binding Tariff Information (EBTI), and MRN Follow-up Information (international movements only).

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# _<u>Customs Rulings Online Search System</u>_

Database of US Customs rulings.

# _<u>Schedule B Export Coder</u>_

US Customs codes. Based on Harmonized code system. Download or view the complete list.

# _<u>Tariff and Import Fee Information</u>_

Links to many resources about tariffs. Includes a tutorial to get started, a glossary of trade terms, an online tariff database, tariff and tax information for 97 countries, helpful tips for importing products into the U.S., and more.

# _<u>Online Tariff Database</u>_

Provided by TARIFFIC International. Up-to-the-minute customs tariffs and import taxes, charges and fees levied at time of import for 192 countries round the world, representing over 97% of world trade.

# **2.4 Transport Infrastructure Indicators**

High transport costs in domestic transport are determined to a large extent by the transport infrastructure network. High transport times can affect the competitive position of a country in the world market.

# _<u>World Bank: Transport Results Initiative</u>_

The central Transport Unit of the World Bank is taking stock of the measures and indicators which are applied for the key transport sector. Initial assessments of data available at the international level, such as through the International Road Federation, confirms significant gaps in relation to both the priority needs of World Bank client countries and the expectations of development agencies.

The revival of interest in indicators for the transport sector is broadly pitched at three interrelated but very different levels. At a global level, the transport sector headlines are proposed to be identified universally and updated regularly. The rural access indicator, one of the five proposed headlines, is a good example in this regard. The indicator has been developed for inclusion in the set of indicators for International Development Association (IDA-14) results measurement system. The transport sector headlines are derived from the set of transport Recent Economic Developments in Infrastructure indicators.

At the national and sub-national level, the transport sector Recent Economic Developments in Infrastructure indicators are included in the more comprehensive Recent Economic Developments in Infrastructure "Snapshot" and "Diagnostic" indicator sets, as proposed by the Infrastructure Action Plan. They are derived from the sets of core measures which have been established for each of the transport sub-sectors.

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At the sub-sectoral level, consensus on a set of core measures for each transport sub-sector has been achieved which constitute realistic and meaningful frames in order to monitor the performance of each sub-sector (roads, railways, international ports, waterways, and air transport).

There are different requirements at each level which are related to significant variations in the objectives of different key stakeholders and, therefore, in the information priorities set by each and the ways in which they use data. The differences are particularly pronounced in the road transport sub-sector which, universally, has very little vertical integration between the delivery of transport service and the provision and maintenance of the related infrastructure.

In the short-term, some of the necessary data will not be available for all client countries. Pending collection of the necessary data, "best estimates" of the relevant indicators will be made in consultation with specialists having the necessary country experience.

Indicators for road transport (road network, administration, finance, usage etc.), ports etc. have been summarized on the basis of extensive consultation amongst transport specialists in the World Bank. (See <u>Annex G</u> for the template on trade logistics indicators).

# <u>Transport Web Library</u>

The main objective of the Library is to make available some of the documents gathered from outside partners or produced by the World Bank on Transport issues, mostly related to ECA. Documents are searchable by Country, Document Type, Modal Themes, Sub-region and topics.

# _<u>Transport CD</u>_

Combines the databases of three research organizations: OECD's International Road Research Documentation (IRRD); the ECMT TRANSDOC database; and the TRB Transportation Research Information Services database (TRIS). Special emphasis is on road transportation and transportation economics. Coverage: 1988 to the present.

# _<u>UN Economic Commission of Latin America and Caribbean (ECLAC)</u>_

The international transport database covers annual trade and transport statistics of eleven Latin American countries - Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Mexico, Paraguay, Peru, Uruguay, and Venezuela. The document consists of two main parts: first, the Introduction explains the scope and content of the BTI (International Transport Database) maintained by ECLAC’s Transport Unit. It covers annual trade and transport statistics of each country. The second part of the document contains detailed tables and charts about the value and volume of imports and exports of the eleven Latin American countries covered by the BTI. It also includes information about the use of different transport modes, the costs of international freight and insurance, and the traded commodities. Data is annual, for the year 2000, and grouped by the Standard International Trade Classification (SITC) codes.

It also contains a compendium of publications drawn from various sources on ports, maritime transport, links for statistics on LAC, as well as information and useful tools for researchers on 24 __________________________________________________________________________________________________________
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maritime transport. The national maritime profiles of 33 LAC countries have basic statistics and cover the main harbor maritime sectors. The source of the statistics is the Foreign Trade Data Bank for Latin America and the Caribbean (BADECEL), managed by the Statistics and Economic Projections Division of ECLAC. Country data are processed by national customs services. Due to the large quantity of data, it is possible to formulate more detailed queries, combining the different fields of information covered by the database. It is available on the web.

# _<u>Statistical Office of The European Communities (EUROSTAT) Transportation Statistics</u>_

EUROSTAT maintains several databases on transportation (air, rail, road, oil pipeline, internal waterways and multimodal). These databases provide detailed information on cargo and passenger traffic, including the results of Community questionnaires.

Long term indicators include: Volume of freight, passenger transport, Transport growth, and Goods transport. Sustainable Development indicators include: Energy consumption of transport, Car share, Road share, Emissions of air pollutants from transport activities.

# _<u>Glossary for Transport Statistics</u>_

Document prepared by the Inter-secretariat Working Group on Transport Statistics. EU, UNECE, ECMT, 2003. A helpful resource of terms used in transport statistics. The Glossary for Transport Statistics was published for the first time in 1994 with the purpose of assisting member countries during the collection of data on transport made by the UNECE, ECMT and Eurostat through the Common Questionnaire. The Glossary now comprises 533 definitions and represents a point of reference for all those involved in transport statistics. It covers railway transport, road transport, inland waterway transport, oil pipeline transport, maritime transport, and intermodal transport.

# _<u>International Road Federation (IRF) World Road Statistics</u>_

The International Road Federation (IRF) publishes _World Road Statistics_ , available online for its members. Data 1997 to 2001 covering up to 189 countries: road networks; production & export of vehicles; first registration and import of vehicles; vehicles in use; road traffic; multimodal traffic comparisons; motor fuels; road accidents, rates & basis of assessment of road user taxation; examples of taxation for five common categories of motor vehicle; annual receipts from road user taxation; road expenditure.

# _<u>US Bureau of Transport Statistics (USBTS)</u>_

BTS is the only source in the U.S. government for data on U.S. merchandise trade with Canada and Mexico transported by surface modes of transportation. This will include air and water data on the searchable online database in the future. U.S. International Trade and Freight Transportation Trends features over 80 figures and tables and analysis, covering topics from modal trends to security to trade in transportation goods and services. It reviews the linkage between transportation and international travel, examines changing patterns in modal shares, geography and purpose of travel, and identifies key influencing factors. Particular attention is paid to air travel and security issues.

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Through the Interchange, United States, Canada and Mexico have developed the <u>North American Transportation Statistics Database</u> that supplies users with relevant, timely and comparable transportation data and information for North America. The 13 year-old Interchange is a forum for the exchange of information and the initiation of joint projects of the transportation and statistical federal agencies in Canada, Mexico, and the United States. North American Transportation in Figures, available through the Bureau of Transportation Statistics, provides comprehensive information on vehicle ownership, vehicle use, transportation networks, trade and traffic safety for Canada, Mexico and the United States, based on 1996 data. North American <u>Transportation Highlights is a summary report of this data that can be downloaded from the web</u> for free.

_<u>UN Economic Commission for Europe Annual Bulletin of transport statistics</u>_ The publication includes data on railway, road, inland waterway, maritime and intermodal transport in Europe and North America.

# _<u>Public Partnership in Highways Toolkit</u>_

This Highways Toolkit provides advice to policy makers in developing countries on the design and implementation of private participation in the highway sector. It includes a number of tools such as a library and interactive financial models. The toolkit provides a detailed guide to introducing private participation in highways, with practical tools for structuring the main contractual and financial terms. This toolkit was prepared by the World Bank and external consultants with funding from <u>Public Private Infrastructure Advisory Facility</u> (2002).

Visitors can access the entire toolkit online, or go directly to one of its five Sections:

- <u>Section 1: presents the rationale for private participation in the highways sector,</u> alternative options, and a guide to conducting a sector diagnostic.

- <u>Section 2: sets out the key parameters needed in the design of a public-private</u> partnerships and presents detailed case studies of well-known highway contracts.

- <u>Section 3: stresses the important role of the public sector in ensuring the success of the</u> reforms and presents the tools at government's disposal for performing such roles.

- <u>Section 4: provides guidance on the design of legal and contractual frameworks for</u> private participation in highways, with boilerplate provisions.

- <u>Section 5: outlines the key steps for introducing private sector participation, bringing</u> elements from all previous sections and distinguishing by type of private sector contract.

# _<u>World Economic Forum:  Global Competitiveness Report (GCR)</u>_

It includes an index based on quality perception for rating railroad services, port facilities and air transport services. (Ranking from 1 to 7, with 1=underdeveloped, 7=developed as the world’s best).

# _<u>World Bank: Railway Database</u>_

This database provides information on scale, output and performance for over 90 railways worldwide permitting comparisons of performance and facilitating target setting by individual 26 __________________________________________________________________________________________________________
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railways from 1980-99. It compiles data from the annual reports of railway companies, available for free on the web. Railway Data Table contains selected size, scale and productivity data for all railways 1980-99. The Railways Concessions Database provides information on the performance of the railway concessions in Latin America and Africa, for the period beginning 1990 to the present.

# _<u>International Union of Railways (IUR)</u>_

The International Union of Railways offers various statistical publications. The annual volume “International Railway Statistics” provides data on lines, passenger and freight transport stock, staff, train movements, and freight traffic. “Railways time-series data” includes data on personnel, train performance, use of wagons, and industry revenues. “Supplementary Statistics” offers additional and more detailed data on the performance and structure of the railways industry. Extracts are available online (annual and quarterly statistics).

# _<u>OECD in Figures</u>_

This publication includes information on passenger transport, freight transport and road accidents for 30 countries.

Dutz, Mark (2005). Road freight logistics, competition, and innovation: downstream benefits and <u>policy implications, World Bank Policy Research Working Paper 3768.</u> This empirical paper sheds light on a significant element of the debate of whether infrastructure services have a strong impact on economic development by exploring the impact of innovative road freight services on downstream business users. The paper uses a new and purpose-specific survey of 165 logistics service providers and 493 user enterprises in food processing, food distribution, and the automotive industry in the Czech Republic, Hungary, and Poland. The main findings are that there are substantial downstream benefits from innovations in road freight services, both dampening cost increases and raising sales revenues of business users. The additional finding that increased intensity of competition in road freight services is significantly associated with the provision of innovative services suggests that easing any remaining barriers to competition in upstream business sectors should be a priority.

# **_2.4.1 Air Transport Indicators_**

# _<u>International Civil Aviation Organization (ICAO) Statistics Digests</u>_

The “Digests of Statistics” contains financial data and summary traffic data for international airports, monthly and yearly statistics for airports open to international traffic, financial data for commercial air carriers, data on fleet and personnel for commercial air carriers, revenue traffic performed for city-pair, annual data of civil aircraft on register, traffic data for commercial airlines, and statistics on the flow of traffic carried from point to point. The digests are available on a commercial basis as well as electronically.

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# _<u>International Air Transport Association (IATA)</u>_

The International Air Transport Association offers two main statistical publications. “World Air Transport Statistics” contains data on individual IATA member airlines, including number of passengers carried, freight tons carried, kilometers flown for international, domestic and systemwide operations by year, fleet information, aircraft utilization, financial results, number of employees by airline, as well as summary analyses of main trends in passenger and freight traffic.

“Custom Statistical Reports” allow customers to order and configure air traffic reports for information on specific markets - passenger or freight-, on specific locations -airports or regionsand for the periods of interest. Regional Outlook provides with highlights on the air transport activity in one specific region for one specific year. Industry Outlook provides with international air traffic figures for one specific year. Airport Outlook provides with international traffic information for one specific airport for one month or one year.

<u>ICAOData.com</u> is IATA’s new website which increases the availability and visibility of the ICAO statistical data on the air transport industry. The website delivers ICAO’s air transport statistics in a user-friendly interface allowing for easy access and analysis. The database contains detailed financial, traffic, personnel and fleet information for commercial air carriers. It also holds Traffic by Flight Stage (TFS) information for air carriers. Financial and traffic data for airports and air navigation service providers will be added later in 2005. On-flight Origin/Destination statistics will also be added in 2005.

# **_2.4.2 Maritime Transport Costs_**

Sources for data on Maritime Transport Costs include the following:

# _<u>Maersk Sealand</u>_

Online business services offer: Schedules by location or vessel, Rates of exchange applicable to shipments, port to port freight rates and surcharges, cutoff times for ports within a country/region, and standard transport statements and certificates.

Data on maritime transport cost can be downloaded per origin and destination from the query rates. The rates vary depending upon the requested origin and destination and are constructed from a combination of ocean, truck, and rail charges. Rate quote may not include local destination charges such as, but not limited to, Cleaning, Port fees, Overweight charges, Documentation fees, or Customs inspections.

# _<u>US Department of Transportation (USDOT)</u>_

The monthly U.S. foreign waterborne transportation statistics are based on the U.S. Bureau of the Census trade data matched to the U.S. Customs vessel entrances and clearances. The cargo summary contains value and weight information by type of service on U.S. waterborne imports and exports.

Maritime transport costs, referring only to US and its trade partner countries are available through the “US Import Waterborne Databank" CDs. This includes a detailed breakdown on liner transport charges, import values, the percentage of containerized cargo, total imports carried by liners, and the market share of tramp services. The containerization variable is 28 __________________________________________________________________________________________________________
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measured in terms of the weight of goods shipped. Tramp services are defined as bulk and tanker services. Data is annual, and can be purchased from USDOT.

# _-_ _<u>International Monetary Fund (IMF) International Finance Statistics (IFS)</u>_

International Financial Statistics is a standard source of international statistics on all aspects of international and domestic finance. It reports, for most countries of the world, current data needed in the analysis of problems of international payments and of inflation and deflation, i.e., data on exchange rates, international liquidity, international banking, money and banking, interest rates, prices, production, international transactions, government accounts, and national accounts.

The IFS database contains time series data from 1948. The browser software provides an interface for browsing the database, selecting series of interest, displaying the selected series in a spreadsheet format, and saving the selected series for transfer to other software systems, such as Microsoft Excel.

The IFS database contains approximately 32,000 time series covering more than 200 countries and areas and includes all series appearing on the IFS Country Pages; exchange rate series for all Fund member countries, plus Aruba and the Netherlands Antilles; major Fund accounts series; and most other world, area, and country series from the IFS World Tables. The Country, World, and Commodity Prices Tables, as presented in the monthly printed copy of IFS, are available as selection options. The Economic Concept View provides a cross-country view of the concepts in the IFS by individual or groups of countries.

IFS includes the ratio of CIF to FOB, but no breakdown is available for individual commodities – the measure is an aggregate over all commodity types imported. The CIF/FOB comparison is a simple representation of transaction costs, as it covers total imports of each reporting country. The CIF (cost, insurance, freight) price measures the cost of the imported good at the point of entry into the importing country, inclusive of costs of transport, insurance, handling and shipping costs (but excluding customs charges). The FOB (free on board) price measures costs at the point of shipment by the exporter when the good is loaded on to a carrier for transport. This measure understates true door-to-door shipping costs as it only accounts for the international segment of transport. There are also questions concerning the quality of this data. The US customs also provides breakdown by country and commodities.

# _<u>UN Conference on Trade and Development (UNCTAD) Review of Maritime Transport</u>_

Published since 1968, the review reports on the worldwide evolution of shipping, ports and multi-modal transport related to the major traffics of liquid bulk, dry bulk and containers. It provides data on maritime transport movements globally, world fleet productivity, trade and transport efficiency (rephrase). Total freight costs for imports in world trade are a useful indicator. High freight costs are like an implicit tariff affecting the competitiveness of a country, reducing its ability to compete in the market.

_<u>World Trade Organization (WTO) Questionnaire on Maritime Transport Services</u>_ 29 ____________________________________________________________________________________________________________
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In 1994, the WTO Negotiating Group on Maritime Transport Services initiated a survey of member governments’ market and regulatory structures applying to the maritime transport services sector. The responses to the survey questionnaire provide detailed descriptions of existing maritime policies and regulations. The structure of the questionnaire follows the GATS classification of sub-sectors and restrictive measures.

# **_2.4.3 Port Efficiency_**

Maritime transport costs are determined to a large extent by port efficiency. Activities at ports that effect international trade transaction depend upon port infrastructure (like pilot age, towing and tug assistance, cargo handling) and customs related activities. Port efficiency varies from one country to another and from one region to another.

# _<u>Port Reform Toolkit</u> – World Bank_

The benefits of a successful port reform through more efficient port operations can accrue to allexporters, consumers, shippers and governments. One of the main challenges facing policy makers in charge of port reform is a lack of useful knowledge that can benefit their own reform process. This World Bank toolkit provides comprehensive background information, case studies, concrete tools and methods to help policy makers in the reform process of ports. It seeks to fill the knowledge gap and can improve the understanding of challenges and risks for sector reform. Through its various modules, the toolkit discussed in-depth different port reform options, financial implications of reform, labor and other social issues, as well as implementation.

The toolkit analyzes the specific requirements of the port sector in great detail. Other sector specialists can also learn from such a flexible approach to introducing private sector participation, especially regarding issues such as risk allocation, design of competitive arrangements and consideration of labor issues. Common models are reviewed in depth (including concessions or leases). Tools to review hybrid options and assess their merits and risks are also provided. (see <u>Annex D</u> for Module-Based Project Guidelines for Trade Facilitation).

Visitors can download the entire toolkit, or go directly to one of the eight modules:

- <u>Module 1:</u> (PDF, 346KB) provides an overall summary and a "road map" to the port reform process.

- <u>Module 2:</u> (PDF, 619KB) describes the forces shaping port dynamics in the 21st century and helps readers put the port they are seeking to privatize in a global context.

- <u>Module 3:</u> (PDF, 411KB) describes the different port structures and ownership models, identifying the strengths and weaknesses of each and presents options for port reform, with alternative implementation strategies and expected results.

- <u>Module 4:</u> (PDF, 1.2MB) describes the legal tools required to carry out port reform and offers examples of model clauses to be used in legal documentation.

- <u>Module 5:</u> (PDF, 806KB) examines the financial implications of port reform, with an analysis of the risk allocation between stakeholders, potential sources of funding and pricing principles.

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- <u>Module 6:</u> (PDF, 600KB) provides a guide to the regulation of port services, and defines the reasons for regulating such services (based on public interest) and the regulatory means for doing so.

- <u>Module 7:</u> (PDF, 1.2MB) analyzes the PortReform issues that may emerge during reform and ways to address them.

- <u>Module 8:</u> (PDF, 354KB) introduces practical steps for implementing port reform.

- <u>The Annex:</u> (PDF, 78KB) contains a glossary of port and shipping terms.

# _<u>The Containerization International Yearbook</u>_

The Containerization International Yearbook is a port-by-port guide to container facilities, handling equipment and traffic statistics (over 450 port/terminal throughputs) for sea and river ports and terminals worldwide. It is an easy way to obtain the information, and is available on a commercial basis.

_<u>Clark, Dollar, Micco (2002) Working Paper on Maritime Transport Costs and Port Efficiency</u>_ Form various sources such as Transport Unit of the World Bank (19 countries), Camara maritime y Portuaria de Chile A.G (12 countries), LSU-National Ports and Waterways Institute (4 countries), this study compiles _Container Handling Charges_ (in US$/TEU). Handling costs are the costs of moving containers through ports. They are determined by port efficiency – countries with more efficient seaports have lower handling costs. An acceptable benchmark for container cargo handling in optimal conditions is about $US 100 per container.

Very often, higher efficiency and thus lower shipping costs can offset the handling charges. Another indicator of efficiency is the turnaround time of ships at ports which means the average container movements per crane or ship hour within a port. Such costs are incurred by ship owners, who may pass them on to exports and importers.

_<u>Fink, Mattoo, Neagu (2001) Working Paper on Trade in International Maritime Services</u>_ The authors compile a Cargo Handling Restrictions Index, which is a 0-1 index that captures restrictions and special requirements imposed on foreign suppliers of cargo handling services. The index assumes a value of 0, if no restriction exists, 0.25 for minor restrictions, 0.5 if a join venture condition is imposed, 0.75 if high national participation is needed, and 1 if foreign companies are not permitted to provide cargo handling services. The Mandatory Port Restrictions Index captures the extent to which ports services are mandatory for incoming ships. The variable is constructed adding 0.125 for each of the following services if they are mandatory: pilotage, towing, tug assistance, navigation aids, berthing, waste disposal, anchorage.

# _Global Competitiveness Report (CCR)_

The _Port Efficiency_ indicator in the GCR is one-to-seven index ranking port efficiency, based on surveys performed to representative firms of each country. The specific question is “Port facilities and inland waterways are extensive and efficient” (1 being strongly disagree to 7 being strongly agree).

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# **_2.4.4 Geography_**

Transport costs are partially determined by geography. The distance between the origin and destination points of a transport journey affects the variable cost of shipping in the form of fuel, wear and tear of vehicles, and the amount of time goods are traveling.

_<u>Limao and Venables (1999) Working Paper on Infrastructure, Geographical Disadvantage, and Transport Costs</u>_ includes the shipping company quotes for the cost of shipping a standard container from Baltimore to select destinations. While this measures reflects the true cost of a homogenous good, and provides the city of origin, landfall and destination; the charges can be effected by specific routes, frequencies etc.

_-_ _<u>UN Center for Human Settlements (UN Habitat) Global Urban Indicators Database</u>_ The Global Urban Indicators Database maintained by UN-Habitat provides statistical information on cities throughout the world, from 1993 and 2001. It contains a set of 23 key indicators and nine lists of qualitative data. It covers urban poverty, urban human development, city investment potential, urban environment, urban governance and overall quality of urban life. Two transport indicators are included under urban environment. These are “travel time” (average time in minutes for a one-way work trip, which is formed as an average over all modes of transport) and Transport modes to work (percentage of work trips undertaken by a certain mode). It is available on the web.

Indicators provide a comprehensive picture of cities, which, with other indicators which may be chosen by countries, will provide a quantitative, comparative base for the condition of cities, and show progress towards achieving urban objectives.

Key indicators are both important for policy and relatively easy to collect. They are either numbers, percentages and ratios; Qualitative data or checklists, which give an assessment of areas which cannot easily be measured quantitatively. They are audit questions generally accompanied of checkboxes for yes or no answers.

_UITP, International Association of Public Transport (IAPT) Millennium Cities Database --_ _<u>Mobility In Cities Database</u>_ The International Association of Public Transport has compiled a database of 100 of the world’s cities, known as the _Millennium Cities Database for Sustainable Transport_ . The collected data looks at population, the economy and urban structure, the number of road vehicles, taxis, the road network, parking, public transport networks (offer, usage and cost), individual mobility and choice of transport mode, transport system efficiency and environmental impact (duration and cost of transport, energy consumption, accidents, pollution, etc.). In total, over 200 indicators have been collected for each of the 100 cities for the year 1995.

Indicators per city, statistical analyses and recommendations have been compiled onto CD-ROM available form UITP.

The UITP will publish in October 2005 the results of the Mobility in Cities Database project, __________________________________________________________________________________________________________ 32
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under which urban mobility indicators have been gathered and analyzed in a sample of 50 cities worldwide for the year 2001.

This project follows in the steps of the Millennium Cities Database which made it possible to highlight the existing links between urban planning, use of the various transport modes, and performance of the transport system, by collecting reliable and comparable indicators of urban mobility economics. The comparison of indicators through time also allows a sophisticated analysis of the most recent evolutions in urban mobility, the identification of successful mobility policies, and the outline of future prospects. The database and the analysis report will be available via a CD-ROM enabling easy search and exploitation of data.

# **2.5 Services and Information Technology Indicators**

The role of Information and Communication Technologies (ICT) in economic growth and social change has received considerable attention in recent years. Information and communication technology in the form of state-of the art information management systems is an important factor for successful implementation of trade facilitation by reducing costs. Transmission delays, inefficient procedures etc., can be eliminated through automated technology. Computerized systems such as UNCTAD’s Automated System for Customs Data (ASYCUDA) and the Advance Cargo Information System (ACIS) (Whose is this system) can speed the flow of information of cargo.

# _<u>The WTO Services Database</u>_

The WTO Services Database contains the schedules of commitments and lists of Article II (MFN) exemptions of WTO Members. The database is maintained by the Trade in Services Division of the WTO. Only the commitments of countries which were members of WTO prior to 31 December 2004 are included in the database.

By using the predefined reports you can sort information:

- by country (select a country and retrieve details of all commitments of that country, listed by sector)

- by mode of supply (select from commercial presence, consumption abroad, cross-border supply or presence of natural persons to retrieve a list of countries and their commitments)

- by sector and level of development (choose a sector, and within that sector choose a level of development – developed, developing, least developed, transition). To obtain a complete list of commitments in a given sector you need to compile the four resulting lists

- by region

- by level of development

You can also retrieve a complete list of horizontal commitments, or a list of MFN exemptions. Finally, a sector/country matrix report is available. This is a table which identifies instances in which a given Member has made a commitment in a given sector. Totals are supplied for each 33 ____________________________________________________________________________________________________________
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country and sector.

# **_2.5.1 Information and Communications Technologies (ICT)_**

# _<u>ICT at a Glance Tables</u>_

ICT at a Glance tables provide key data on:

- Country background information includes population, GNI per capita, and adult literacy rates

- ICT infrastructure & access covers access to fixed line and mobile telephones, cost of phone calls, and TVs sets available

- Computers and the Internet presents data on access to personal computers and the internet

- • ICT expenditures shows ICT spending in per capita and absolute terms and as a percentage of GDP

- ICT business & government environment includes survey data on the effect of the Internet in business and government

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ICT at a Glance tables compile data from several sources, including the UNESCO Institute for Statistics, the International Telecommunication Union (ITU), World Information Technology and Services Alliance (WITSA), World Economic Forum (WEF), Netcraft and the World Bank.

# _<u>OECD Key ICT Indicators</u>_

The 15 ICT indicators below are drawn from various publications and databases produced by the OECD’s Directorate for Science Technology and Industry (DSTI). They will be updated annually on a rolling basis, as data become available.

1. Access lines and channels in total for OECD

2. Mobile subscribers in total for OECD Data compiled from original and/or official 3. Internet subscribers in total for OECD Data compiled from original and/or official

- 4a. Broadband subscribers per 100 inhabitants in OECD countries

- 4b. Availability of Digital Subscriber Lines (DSL) in OECD countries

5. Cable TV subscribers in total for OECD Data compiled from original and official

- 6a.Households with access to the Internet in selected OECD countries

- 6b.Households with access to a home computer

7a. Internet penetration by size class. Percentage of businesses with ten or more employees using the Internet

- 7b. Businesses using the Internet and businesses receiving orders over the Internet

8. Share of ICT-related occupations in the total economy in selected countries 9a.Telecommunication services revenue in total for OECD 9b.Mobile telecommunication services revenue in total for OECD 9c.Telecommunication infrastructure investment in total for OECD 10a. Share of ICT value added in the business sector value added 10b. R&D expenditure in selected ICT industries 34 __________________________________________________________________________________________________________
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- 11a. ICT patents as a percentage of national total (EPO) in selected countries

- 11b. Share of countries in ICT patents at the EPO

12. Trade in ICT goods and services 13. Top 50 telecommunications firms and IT firms 14. Contribution of ICT-using services to value added per person engaged 15. Contributions of ICT investment to GDP

# _<u>International Telecommunication Union (ITU) Database</u>_

The World Telecommunication Indicators database includes time series data for 200 economies for 1960, 1965, 1970 and annually from 1975-2003 for around <u>80 sets of telecommunication indicators</u> covering telephone network size and dimension, mobile services, quality of service, traffic, staff, tariffs, revenue, and investment. Selected demographic, macro-economic, broadcasting, and information technology statistics are also included.

The data are collected from an annual questionnaire sent out by the Telecommunication Development Bureau (BDT) of ITU, as well as data obtained from reports provided by telecommunication ministries, regulators and operators, and from ITU staff reports. Additional data are obtained from reports provided by telecommunication ministries, regulators and operators and from ITU staff reports. In some cases, estimates are made by ITU staff; these are noted in the database.

The database is available either for one-time purchase (single issue) or as an annual subscription. The one-time purchase is available either via the July 2004 edition of the CD-ROM or as a download via the Internet (edition of February 2005 now available). Updates and revisions of the data will be posted to the ITU website approximately every three months. Subscribers are entitled to BDT Telecommunication Data & Statistics reference services such as clarification of data, sources and methodology used.

Reports can also be ordered in hardcopy form. Some examples include: telephone mainlines (per 1000 people); waiting List (in thousands); International telecommunications, outgoing traffic (minutes per subscriber); Number of personal computers (per 100 people); Number of Internet Users (in thousands; and users per 100 inhabitants); Number of Internet Hosts etc.

# _<u>World Bank: Telecommunications Toolkit</u>_

This toolkit was prepared by Canadian telecommunications consultant Hank Intven et.al. (2000) for the World Bank's <u>InfoDev</u> Program, with assistance by the <u>International Telecommunication Union (ITU).</u> The toolkit has six modules; <u>Module 1:</u> (PDF, 496KB) provides an overview of telecommunication regulation, discusses its objectives and principles, and gives guidance on the regulatory decision-making process. <u>Module 2:</u> (PDF, 527KB) provides detailed analysis of issues related to licensing, including a discussion of the types of licensing regimes, practices, and the contents of licenses. <u>Module 3:</u> (PDF, 729KB) discusses interconnection principles and procedures.

<u>Module 4:</u> (PDF, 635KB) reviews price regulation issues, including rate balancing and price caps.

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<u>Module 5:</u> (PDF, 626KB) discusses the rationale for and concepts of competition policy in the sector.

<u>Module 6:</u> (PDF, 747KB) provides insight into the concept of universal services and discusses universality approaches and funding mechanisms.

<u>The Appendices:</u> (PDF, 1.0MB) include a World Trade Organization Regulatory Reference Paper and information on the economics of telecommunication prices and costs.

_<u>World Economic Forum</u>_<sup>_iii_</sup> _<u>(WEF) Report and The NRI</u>_ Published since 2001, the _Global Information Technology Report_ assesses the ability of a country to take advantage of technology to improve productivity. The Networked Readiness Index (NRI) measures "the degree of preparation of a nation or community to participate in and benefit from ICT developments".

The Global Information Technology Report 2004-2005 is the fourth in a series assessing the state of the networked readiness of 104 economies. It is an update of the previous Reports, capturing new insights and best practices and gleaning policy lessons from various country experiences. The Report remains the most comprehensive and authoritative international assessment of the preparedness of countries to capture the benefits of participating in the Networked World.

The NRI is composed of three component indexes which assess:

- the environment for ICT offered by a given country or community

- the readiness of the community's key stakeholders - individuals, business and governments

- the usage of ICT among these stakeholders

_<u>Organization for Economic Cooperation and Development (OECD) Report on Measuring the Information Economy (2002)</u>_ _Measuring the Information Economy 2002_ includes over 80 indicators based on official surveys, providing a comprehensive international comparison of countries' performance in the information economy. It addresses issues such as international differences in the quality and price of the ICT infrastructure, diffusion of Internet technologies in larger and smaller firms, relative size of cross-border electronic transactions, and barriers to Internet commerce. For the first time, data annexes with time series for the ICT sector are made available in the electronic version. Indicators include number of websites, number of internet hosts per 1000 inhabitants, number of businesses with internet access, internet penetration by activity, businesses using internet for purchasing and selling.

_<u>McConnell International Report: Global E-Readiness</u>_ “E-Readiness” measures the capacity of nations to participate in the global economy, and represents multiple levels of ICT development by benchmarking progress through indicators of Connectivity, E-Leadership, Information Security, Human Capital, and E-Business Climate. The 2001 report analyzes 53 countries, covering two-thirds of the world’s population and the biggest potential markets. The assessment was developed in collaboration with experts from public, 36 __________________________________________________________________________________________________________
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private and non-government organizations. It published a second report in May 2001, which evaluated over 50 emerging market economies’ position in the digital economy. A third report is under development with a target release in mid 2002.

_-_ _<u>Bridges: E Assessment Reports</u>_ Bridges provides a compendium of the tools from different sources available and those that are being developed for assessing e-readiness, along with their own analysis. The Reports include:

- _<u>Comparison of E-Readiness Assessment Models</u>_ **- describes the various tools that are available** and what they measure, including the tools' underlying goals and assumptions which shape their outcomes. With this report, we aim to foster informed decisions about approaches to e-readiness assessment, as national governments consider their IT policies and undertake development initiatives.

- _<u>Survey of Who is Doing What and Where</u>_ **- looks at where assessments have already been conducted in the world.** _Updated March 24, 2002._

- _<u>Overview of E-Readiness</u>_ - **bridges.org's overview of the e-readiness processes that was featured in Infodev's 2001 Annual Report** .

- _<u>Consultation report on e-readiness</u>_ **for the South African Development Community - World Economic Forum -** policies and recommendations for improving e-readiness in SADC countries, in a methodology that can be replicated in other areas of the world.

- _-_ -

- _<u>List of other e readiness resources and sample assessments</u>_ **a repository of online tools and resources** for e-readiness assessment and understanding the digital divide.

# _<u>NUA.com How Many Online?</u>_

Nua was founded in 1996. Nua Internet Surveys was acquired in June 2001 by the Scope Communications Group, Ireland's leading IT Media Company.

This online source for information on Internet demographics and trends maintains a dataset estimating how many people are online, based on extensive examination of surveys and reports from around the world. The data can be viewed by region and country.

Governance and corruption though not related directly to trade are important measures of the environment of investment and business. (See Annex I for indicators of investment climate, nontariff barriers and standards)

# **2.6 Development Indicators**

_<u>Development Data Platform (DDP)</u>_ DDP is a web resource for retrieving and reporting development-related data. It can prepare web reports, charts and maps which can be published and shared over the web. It provides powerful features to customize these reports and manage them. DDP includes both time series (macro) and survey (micro) data on a wide range of topics of interest to development practitioners. It provides basic analytical tools and secure access to time series databases and to surveys, including their 37 ____________________________________________________________________________________________________________
**_<u>________________________________________________________</u>_**

meta-information, documentation and related datasets. DDP is developed and maintained by the Development Data Group (DECDG) and its partners.

The internal database system for the World Bank contains 40 databases from the Bank and other international institutions (IMF, FAO (Food and Agriculture Organization of The UN), UN, ITU, IEA etc.). The time series component of DDP provides access to databases from the World Bank, the Food and Agriculture Organization, the International Monetary Fund, the Organisation for Economic Co-operation and Development, the United Nations, and other international organizations which gather and disseminate international statistics.

The World Bank's central database, GDF & WDI Central combines over 900 key annual indicators taken from many of the other databases and includes the officially published crosscountry comparable data from World Development Indicators (WDI) and Global Development Finance (GDF).

World Bank regional databases contain data directly from country management units in the Bank's six regions. These data are intended for country-focused analysis and may differ from officially published data. Other World Bank databases include those from specialized units across the Bank. Infrastructure data (compiled from various sources) can give an indication of the infrastructure network in many countries, and explain costs of domestic transport. (See <u>Annex H for details)</u> DDP Microdata, developed and maintained by the Development Data Group (DECDG), is a federated repository of survey data and documentation, providing authorized users with access to unit record-level datasets. The catalog is maintained through collaborative efforts by several depositors and holds information on household, investment climate, service delivery and client feedback surveys. A web-based tool allows users to perform online analysis on selected datasets.

# _<u>Best Practices Database</u>_

Over 2,150 award-winning solutions to common social, economic and environmental problems in over 140 developing and developed countries. Searchable by country, scale (global, national, regional, village, etc.) and by subject category. Best Practices is a joint product of UNHABITAT and The Together Foundation and is supported in part by the Dubai Municipality, the Best Practices Partners, and the Government of UK. Coverage: 1996 - present.

# _<u>Creditor Reporting System (CRS)</u>_

Contains data on Official Development Assistance (ODA), Official Aid (OA) and other lending to developing countries and countries in transition. Data are collected from the Members of the Development Assistance Committee, the World Bank, and the regional financial institutions. The system is sponsored jointly by the OECD and the World Bank and operated by the OECD.

# _<u>DAC Online</u>_

These statistics, collected annually from the Members of the OECD's Development Assistance Committee, measure the flows of aid and other financial resources to aid recipients (developing 38 __________________________________________________________________________________________________________
**_<u>________________________________________________________</u>_**

countries and countries in transition), and are broken down by major category of expenditure: capital projects, budget and balance of payments support, food and other commodity aid, technical co-operation and emergency relief. Dac Online, together with the Creditor Reporting System (CRS), comprise the OECD's International Development Statistics Online.

# _<u>SourceOECD</u>_

Provides online access, from 1998 onward, to the full-text of all OECD periodicals, monographs, annuals, outlooks, policy reviews, conference proceedings, analytical reports, guidelines, working papers, and 27 statistical databases.

# _<u>UN Development Business Online</u>_

provides information on opportunities to supply goods, works, and services for projects financed by the United Nations, governments, and the following development banks: the World Bank, Inter-American Development Bank, African Development Bank Group, Asian Development Bank, Caribbean Development Bank, European Bank for Reconstruction and Development, and North American Development Bank. Searchable by region, country, sector, bank, and other parameters. Published by the United Nations Department of Public Information. Updated several times per week.

39 ____________________________________________________________________________________________________________
**_<u>________________________________________________________</u>_**

# **Conclusions**

There are a number of important cautions and limitations to the data available on the impact of trade costs and facilitation on competitiveness. These include:

- Lack of harmonized definitions and measurement tools which can lead to different indicators of the same barriers;

- Limited country coverage;

- Poor quality data that can be difficult or impossible to replicate;

- Lack of time series data sets;

- Aggregation of various data sources is problematic or impossible;

- Difficulty to use same indicators for cross-country analysis and for measuring project performance.

For example, one measure of trade facilitation is the time required to clear goods through customs. While there exist several sources of such data, there is no uniform and commonly accepted definition of customs clearance times. Measurement methodology differs around the world and there is no standard template or methodology for calculating, on a time series basis, days required to clear customs at national points of entry. The ICAs calculation is based on firmlevel surveys, while TTFSE measures clearance at the border. There is a discrepancy between firm surveys and on the ground interviews and observations. For Uzbekistan, WBES gives an average clearance time of 11 days compared to 5 days by UNESCAP. The question is at what point to measure customs clearance.

The data can suffer from limited or unreliable statistical base, or diverging definitions. Moreover, the involvement of different agencies in the clearance process can yield different results in baseline calculations of customs clearance. Other factors such as origin of goods, mode of transport, loading/unloading time, delays due to phytosanitary standards etc., are factors to be considered, as well.

It is necessary to achieve consensus on definitions, as well as focus attention on achievable goals in this area. It is clearly problematic to capture progress in trade facilitation through one indicator. The sequence of the supply chain can provide a beginning: international transport, border crossings, handling and storage, inland transportation. Some indicators measure the performance at a particular point in the supply chain, while others encompass several elements of the chain.

While a comprehensive indicator is useful, often project specific indicators provide a better picture of progress at the country level. A country could have an efficient customs system, for 40 __________________________________________________________________________________________________________
**_<u>________________________________________________________</u>_**

example, but suffer from poor inland logistics. Specific indicators for different components of the supply chain used for monitoring projects would normally be in a time series database.

41 ____________________________________________________________________________________________________________
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# **Annexes**

## **Annex A. World Business Environment Survey**

Regulations can be burdensome in different ways - they can impose direct costs (formal and informal payments, facilitation costs, expenditures of staff time) or indirect costs (the inefficient allocation of firm resources in response to the incentives created by regulation and regulatory enforcement). In the WBES, firms evaluated the severity of several potential regulatory constraints.

More relevant to trade facilitation, _Customs Procedures and Trade Regulations_ imposed serious constraints on more than half of all firms in LAC and South Asia, 49 percent of firms in Africa, and 44 percent of firms in the MENA region (Batra, Kaufmann and Stone, 2003). More than one-third of firms in the developing East Asia and the CEE regions considered this as a serious constraint. Small enterprises were significantly less constrained by customs and trade regulations in comparison with large and medium-size firms. The average waiting time for goods to be processed through ports and customs varied substantially, ranging from roughly 2 days in OECD nations, East Asia, and China (a firm’s median wait was generally less than half a day), to more than 9 days in Central and Eastern Europe (a median of 5 days), 11 days in South Asia (a median of 7 days), and more than 16 days in Africa (a median of 10 days). These estimates exclude outliers, or processes that take more than 90 days.

## **Percentage of Firms That Rated Regulatory Constraints on Firms as “Major” or “Moderate”**

|Constraints|CEE|LAC|CIS|Africa|<sup>East Asia</sup><br>Developing|<sup>OECD</sup>|South<br>Asia|MENA|East Asia<br>NIC/China|
|---|---|---|---|---|---|---|---|---|---|
|High Taxes|89.8|82.9|82.6|76.2|74.5|72.3|71.6|53.6|39.3|
|Tax Administration<br>and Regulation|<br>74.5|62.5|65.2|59.3|54.6|59.0|52.2|50.8|20.9|
|Customs/Trade<br>Regulation|36.3|55.9|32.0|48.6|36.0|28.0|58.9|44.3|20.3|
|Labor Regulation|18.2|52.5|33.7|38.0|35.2|47.7|60.0|32.6|27.4|
|Business<br>Registration|38.3|55.3|23.4|25.5|27.7|32.4|40.2|25.9|21.6|
|Environment|26.4|37.2|28.1|21.7|29.4|37.8|43.7|24.1|17.1|
|Foreign<br>Exchange/Currency|29.8|33.1|20.9|36.1|35.2|19.1|40.5|26.1|17.8|
|Fire/Safety<br>regulation|22.1|28.5|21.6|15.9|29.4|29.8|27.4|21.6|12.2|

_Source : Batra, Kaufmann and Stone (2003)_ 42 __________________________________________________________________________________________________________
**_<u>________________________________________________________</u>_**

# **Annex B.   Investment Climate Assessments (ICAs)- Logistics Module**<sup>**6**</sup>

_Pl. note:_ _1. Questions below are categorized as those for (i) (senior) management [A] (ii) “operations” staff [B]._ _2. Where applicable, questions in the logistics module have been cross-referenced to relevant questions in the Productivity and Investment Climate Survey (PICS) Core Survey Instrument._

[A] 1. What are the top 3 products sold by your firm? If one or more of these products are exported please indicate what percentage of sales is exported. _[Links with Question 10 and 11a and b – in the Core PICS Survey Questionnaire]_

|Product<br>name(s)<br>(SITC or<br>HS 4-digit)|Value<br>of sales<br>(annual)|Percen.<br>exported<br>if<br>applicable|Value<br>(typical<br>consignment<br>order)|Weight(or<br>Volume)<br>annual|Weight (or<br>Volume)<br>(typical<br>consignment<br>order)|Consignment<br>type<br>(breakbulk,<br>bulk,<br>container)|
|---|---|---|---|---|---|---|

[A] 2. What are the top 3 inputs that your firm purchases (including domestic *sources and imports)? _[Links with Q12 in the Core PICS]_

|Product<br>name(s)<br>(SITC or<br>HS 4-digit)|Value<br>(annual)|%<br>imported<br>if<br>applicable|Value<br>(typical<br>consignment<br>order)|Weight(or<br>Volume)<br>annual|Weight (or<br>Volume)<br>(typical<br>consignment<br>order)|Consignment<br>type<br>(breakbulk,<br>bulk,<br>container)|
|---|---|---|---|---|---|---|

> 6 Please contact Uma Subramanian (PSAIC) at 202 473 4497 or usubramanian@worldbank.org for any comments/ questions.

43 ____________________________________________________________________________________________________________
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[A] 3. What are the top 3 destination markets for your top (up to 3) products? _[Links with Question 11.c – in the Core PICS]_

||Product name|Destination (national/<br>domestic)|Destination<br>(international)|
|---|---|---|---|
|A||||
|B||||
|C||||

- [A] 4. a. If you are already exporting, have you tried to expand the markets to which you export?             Yes__ No___

- b. If you are not already exporting, in the past two years, have you actively tried to enter export markets? Yes__   No__

- [A] 5. What is the method of payment for a typical export order?

- a.   letter of credit

- b.   open account,

- c.   cash against document

- d. other __________________________

- [A]6. What INCOTERMS do you use in pricing the product ?

- a. FOB

- b. CIF

- c. CFR

- d. Other (specify) _______________

- [A]  7. a.  Do you produce/ manufacture on an order by order basis? ____  1=Yes ;   2=No

- b.   If no, what percentage of sales orders are filled from inventory held? __ [Link with Question 13 in PICS2002]_

- c.   Do you produce against long term contracts? ____  1=Yes  ;  2=No

44 __________________________________________________________________________________________________________
**_<u>________________________________________________________</u>_**

[A] 8. How do you finance your working capital needed for producing your export products? (Please mark in the table below)

|[<br>A<br>~~]~~|Auto<br>financing|International<br>sub-contracting|Bank credit<br>(based on<br>collateral)|Other|Total|
|---|---|---|---|---|---|
|9<br>~~.~~<br>Working<br>capital (%<br>share)|||||100%|

- Do you have access to government export finance insurance or guarantees? - to cover risk of non-payment by foreign buyers :   Yes ____   No ______ - to cover risks that you may be unable or delayed in delivering your exports: Yes _____   No

- [B] 10. a.  How do you arrange transport services?  ____

- 1=directly contract   ;  2= hire transport intermediary (e.g., freight forwarder)

- 3= third party logistics provider ;  4= own transportation

- b.   How frequently are transport services late in dropping off cargo or picking up cargo at your plant for delivery?

<!-- Start of picture text --> Outbound Inbound<br>Sales to Supplies from<br>domestic Exports sales domestic Imports sales<br>markets/firms sources<br>% of times % % % %<br>1. 1. 1. 1.<br>If late, what are<br>2. 2. 2. 2.<br>the reasons?<br>3. 3. 3. 3.<br><!-- End of picture text -->

[B] 11. In the last year, what is the average and maximum number of days that your shipment arrived late:

- a. At final destination (domestic and/ or international) in comparison with your planned schedule?  (Please include all delays including arriving at the port for exports if applicable)

||Final destination<br>(domestic)|Final destination (international)|
|---|---|---|
|Average delay in the last year|(days)|(days)|
|Maximum delay in the last year|(days)|(days)|

- b. At the gateway port (if applicable) in comparison with your planned schedule? (Please note that this delay may have been included in part (a) of this question).

45 ____________________________________________________________________________________________________________
**_<u>________________________________________________________</u>_**

||Gateway port||
|---|---|---|
|Average delay in the last year||(days)|
|Maximum delay in the last year||(days)|

[B] 12. In the last year, have any shipments been rejected/ returned/ taken at discount prices because they reached late?

||Rejected|Returned|Discounted|Other|
|---|---|---|---|---|
|% value ofshipment|%|%|%|%|

[B] 13. In the last year, what percentage of total sales (estimated) have you lost because of delays in transportation services?

||Domestic<br>sales|Exports|
|---|---|---|
|% oftotalsaleslost|%|%|

[B] 14. Of the total number of containers you ship, what percentage is inspected? Exports ( _____%) Imports( _____%)

[B] 15. If you **import** , what was the average and the longest number of days in the last year that it took from the time your goods arrived in their point of entry (e.g. port, airport) until the time you could claim them from customs?

a. _____ days on average b. _____ days for the longest time in the last year c. NA (we don’t import)

[B] 16. If you **export** , what was the average and the longest number of days in the last year that it took from the time your goods arrived in their point of exit (e.g., port, airport) until the time they clear customs?

a. _____ days on average b. _____ days was the longest time in the last year c. NA (we don’t export)

[B]17. What percentage of your total exports are transported by?

46 __________________________________________________________________________________________________________
**_<u>________________________________________________________</u>_**

||% of tot<br>exports|Port name(s)|
|---|---|---|
|1. Ocean|_______%|1.______________|
|||2._____________|
|2. Air|_______%|1.______________<br>2._____________|

- [B]18. a.  Has your export shipment ever been “bumped-off” by the ocean/ air carrier, even though cargo reservation was made?  Yes=1 ;   No=2

- b.  What is the frequency of occurrence in the last year?

|Ocean<br>__|____% value of shipments|
|---|---|
|Air<br>__|____% value ofshipments|

[B] 19. If relevant, for air cargo, please indicate the average cost, average and maximum lead time needed for terminal processing for export shipments before flight departure.

||Aver cost|Informal costs|Aver. Time<br>(hours)|Longest time in<br>last year(hours)|
|---|---|---|---|---|
|Aircargo|||||

[B] 20. Please estimate the cost and time for transporting a consignment to the final customer (for domestic sales only) ) and/or to gateway port (for exports).

||Formal.<br>Cost (ave.<br>per cons)<br>('000<br>pesos)|Inf. Cost<br>(ave. per<br>cons)<br>('000 pesos)|Ave. time<br>last year<br>(hours)|Maximum<br>time last<br>year<br>(hours)|
|---|---|---|---|---|
|a. Preparatory activities: From receipt of order to<br>the time that the goods are ready for pre-<br>shipment preparation (packing, container<br>stuffing, etc)|||||
|b. Pre-shipment activities: From the time that the<br>goods are ready for inspection/ packing to the<br>time that transportation services arrive at the<br>plant|||||
|Loading/unloading atfactory gate|||||
|Linehauling|||||
|� Truck|||||
|� Rail|||||
|� waterways|||||

47 ____________________________________________________________________________________________________________
# **_<u>________________________________________________________</u>_**

|� Other|
|---|
|**FOR FIRMS IN LANDLOCKED**<br>**COUNTRIES ONLY**|
|Waiting time to cross land border if any (for<br>landlocked countries)|
|Customs clearance for landlocked country (to enter<br>transit country)|
|**FOR FIRMS THAT EXPORT**|
|Waiting time to entergateway port|
|Port dues|
|Customs clearance at port|
|Terminal Handling (include time waiting for<br>vessel/aircraft)|
|Other|

- [B] 21. a. In the last year, what percentage of your shipment and its corresponding value got lost  and/or were damaged due to the following reasons?  (Please distinguish between domestic and international transportation)

||Domestic transportation|International<br>transportation|
|---|---|---|
|Reason|% value of shipments|% value of shipments|
|Total (% of shipment value lost<br>ordamagedlast year)|||
|Theft|||
|Accident|||
|Damage during loading,<br>unloading|||
|Damage due to delays|||
|Inclement weather|||
|Other|||

- b.   If you experienced cargo loss and/or damage, did you receive adequate compensation from the transport operator?  Yes = 1  ;   No = 2

- c. **IF NO** , what is the most common reason given? _(circle only one choice)_ i. no carrier liability regime

- ii. carrier liability regime exists but not effectively enforced iii. limits of liability too low

- iv. Other (Specify) ______________________

- d. If none of them, have you been compensated by your own insurance? Yes = 1  ;  No = 2

48 __________________________________________________________________________________________________________
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# **Annex C.   Infrastructure Indicators**

|||**Latin A**|**merica**|||**Asia**|||
|---|---|---|---|---|---|---|---|---|
||**Brazil**|**Honduras **|**Nicaragua**|**Peru**|**Bangladesh **|**China**|**India**|**Pakistan**|
|% of production/sales<br>lost due to power<br>outages|2.5|5.5|6.2|3.3|3.3|2.0|8.9|5.4|
|Have own generator<br>(%)|16.8|31.6|21.6|27.6|71.5|27.2|60.8|41.8|
|No. of days to obtain<br>a telephone<br>connection|18.2|136.0|117.0|9.9|154.8|15.6|46.8|29.5|
|No. of days to obtain<br>an electricity<br>connection|25.5|29.8|23.8|22.5|79.6|29.0|85.0|38.2|
|Days to clear customs<br>(for imports) - average|14.0|6.2|5.1|7.8|11.7|7.9|7.1|17.2|
|Days to clear customs<br>(for imports) - longest|32.0|13.8|10.6|15.7|23.2|12.5|12.8|30.1|
|Days to clear customs<br>(for exports) - average|8.7|2.1|1.8|5.2|8.8|5.4|5.4|9.6|
|Days to clear customs<br>(for exports) - longest|16.8|3.4|3.0|--|14.0|8.0|8.0|17.1|
|Share of foreign<br>invested firms|5.1|9.3|12.4|8.3|3.2|25.4|2.5|1.9|
|Share of firms that<br>export|30.7|27.9|24.6|28.8|42.4|29.7|21.9|19.8|

_Source : Dollar, Hallward-Driemeier and Mengistae (2003)_ 49 ____________________________________________________________________________________________________________
**_<u>________________________________________________________</u>_**

# **Annex D.   Module-Based Project Guidelines for Trade Facilitation**

Modules are now available in draft form for port logistics, transit and landlocked countries, and transport and border security. Such guidelines present the major issues, diagnostic tools that can be used to identify potential projects, sample terms of reference, examples of successful reform/modernization programs, as well as cover resources available inside and outside the Bank.

The port module describes the main determinants of port efficiency, the institutional and infrastructure in ports, indicators to measure performance, the delivery of public, statutory mandates on safety, security and environment; as well as a diagnostic tool based on Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis. The guidelines on Transit emphasize international transit-primarily road transportation to and from landlocked countries. It summarizes the main principles of transit, explains what a typical transit operation would look like; reviews existing major transport arrangements based on the TIR (Transport International Routier); and lists bilateral and regional agreements that have been established to facilitate transit trade.

_<u>Port Performance Indicators</u>_ are useful tools to obtain an insight into the performance of a port or terminal on a comparative level. Indicators are useful, but should be used carefully, in particular when it is uncertain how the data were gathered and treated. The most important ones among them, have, in addition, been shaded.

|Indicator|Description|Remarks|
|---|---|---|
|Operational<br>Indicators|||
|Ship productivity|Total number of moves<br>(containers) or tons (break-bulk<br>and bulk cargoes) divided by the<br>total numberofshiphoursinport||
|Average ship|Total number of hours or days||
|waiting time|vessels wait for a berth (buoy-to-<br>berth time) divided by the total<br>number of hours that ships are at<br>berth||
|Average cargo dwell<br>time|The product of the cargo handled<br>and the period of time (in hours<br>or days) between the moment of<br>the unloading of the cargo and the<br>time the cargo exits the port or<br>terminal for export cargo (and<br>vice –versa for import cargo)<br>divided by the total quantity of<br>cargohandled|Terminal operators usually include in their<br>handling tariffs a limited number of days of<br>free storage.<br>If that period is overdue, the operator will<br>start to levy a fee for each period of time<br>that the cargo occupies his area; more and<br>more often on a progressive scale.|
|Average ship<br>turnaround time|Total number of hours or days<br>ships stay in port from buoy-to-<br>buoy divided by thenumberof|A useful tool to estimate the overall<br>efficiency of a port. The time that a ship<br>staysinportisrelated to the callsize (the|

50 __________________________________________________________________________________________________________
# **_<u>________________________________________________________</u>_**

||ships|number of tons or units to be loaded and / or<br>unloaded), the type(s) of cargo to be<br>handled and the efficiency of the operations.<br>The buoy-to-buoy time can be divided into<br>pre-berth time, actual berth or service time<br>and the de-berth time.<br>In case cargo handling operations are very<br>efficient, but services like pilotage, towage<br>or administrative procedures are not, the<br>turnaround timeis adverselyinfluenced.|
|---|---|---|
|Berth Occupancy<br>Factor (BOF)|The total time that a<br>vessel/vessels occupies/occupy<br>the berth/berths divided by the<br>total time the berth/berths is/are<br>available|An important indicator for terminal<br>operators / owners. Commonly used BOF<br>values are in the range of 0.5 to 0.6 for<br>container and general cargo terminals, but<br>the value is related to the number of berths.<br>If there is only 1 berth, the recommended<br>maximum BOF is 0.4, but if the number of<br>berths ranges from 6 to 10, a BOF of 0.7 is<br>quite acceptable.<br>As to the interpretation of the value of the<br>BOF: If the BOF is higher than these<br>values, it is quite likely that ships may have<br>to wait for a berth. In view of the high daily<br>costs of ships this is not a desirable<br>situation. On the other hand, if the BOF is<br>lower than the values indicated, this may<br>mean that there more capacity than required<br>which means that expensive investments<br>(quay walls and equipment) may not be<br>used in an optimum way.<br>Generally a BOF is somewhat lower for<br>container berths than for general cargo<br>berths. This is related to the higher daily<br>operational costs of ships and the<br>consequent high costs of waiting.<br>The BOF for liquid and dry bulk terminals<br>usually is much lower. Values between 0.2<br>and 0.3 are quite common for many<br>terminalsinthe world.|
|Ratio working time<br>over berth time|Total time that a vessel/vessels at<br>a berth/berths is/are served<br>divided by the time that the<br>vessel/vessels is/are at berth|See paragraph 5.1. The reasons for the<br>difference between the two periods of time<br>may be related to: labor disputes,<br>unavailability or inefficiency of equipment,<br>labor practices and due to losses like shift<br>changes, meal breaks, limited breakdown of<br>systems orequipment.|
|Productivity per<br>gang-hour|Total quantity of cargo handled in<br>units or tons divided by the total<br>number of gang-hours worked|This term actually originates from the days<br>of the conventional general cargo, which<br>required large gangs, both on the ship and<br>on shore. Values varied largely in relation to<br>the type and appearance (packaging or|

51 ____________________________________________________________________________________________________________
# **_<u>________________________________________________________</u>_**

|||unitization) ofthe cargo.|
|---|---|---|
|Productivity per<br>crane hour|Total number of tons or units<br>handled divided by the number of<br>cranehours worked|See paragraph 5.1|
|Tons per ship-day|Total quantity of cargo handled<br>divided by the total number of<br>days the vessel is in port|This value largely varies with the type of<br>cargo: general cargo, unitized or neo-bulk<br>cargo, containerized or liquid bulk or dry<br>bulk cargo.|
|Financial Indicators|||
|Cargo handling<br>charge|The total charges for handling a<br>given quantity of cargo in units or<br>tons divided by the total number<br>of units or tons handled|This indicator, certainly when it can be<br>compared on a level playing field with<br>nearby, competing ports, is a good tool to<br>value a port amongst its competitors.|
|Operating surplus<br>per ton handled|The net operating income from<br>port operations divided by the<br>total number of tons of cargo<br>handled||
|Collected charges<br>per billed charges|The total of the collected charges<br>as a percentage of the accounts<br>billed(with a 30-dayleg)||

Some ‘Rules of Thumb’ indicative values that are often used for a first Quick Scan of a terminal or port to be analyzed.

|•<br>Average capacity of a multipurpose berth: 600 to 700 tons / meter berth / year.<br>Taking the average ship length using such berths at 180 m, this means a capacity of<br>100,000 to 130,000 tons / berth / year|
|---|
|•<br>Capacity of container terminals: 750 to 1,250 TEU / hectare / year|
|•<br>Overall personnel requirement of container terminals (non-robotized terminals): 750<br>to 1,250 TEU / employee / year|
|•<br>Average container gantry crane production (for a multi-berth terminal with a BOF in<br>the 0.5 range: 60 to 70,000 moves / crane / year|

The security guidelines are very timely keeping in mind the additional security requirements that have been adopted around the world. This module seeks to help countries assess their strengths and weaknesses, and provide practical solutions to enable them to conform to the new requirements. It provides a detailed description on the International Ship and Port Security (ISPS) Code of the IMO, Container Security Initiatives (CSI), and other initiatives that have been introduced post September 12. The security guidelines can assist in guiding technical assistance activities with respect to the security component of a project.

52 __________________________________________________________________________________________________________
**_<u>________________________________________________________</u>_**

# **Annex E.  Country Ranking by WMO Trade Facilitation Indicators**

|PortEfficiency<br>|CustomsEnvironment<br><br> <br>|RegulatoryEnvironment<br><br>|Service Sector Infrastructure<br><br>|
|---|---|---|---|
|rankCountry<br>1 Singapore|regionrankCountry<br>region r<br>EA<br>1 Finland<br>OECD|ank Country<br>region <br>1 Finland<br>OECD|rank Country<br>region<br>1 Finland<br>OECD|
|<br>2 HongKong|<br> <br><br>EA<br>2 Netherlands<br>OECD|<br><br>2 Denmark<br>OECD|<br><br>2United States<br>OECD|
|3Netherlands|OECD<br>3New Zealand<br>OECD|3 Singapore<br>EA|3 Canada<br>OECD|
|4 Germany<br>|OECD<br>4 Iceland<br>OECD<br> <br> <br>|4 Switzerland<br>OECD<br> <br>|4 Iceland<br>OECD<br><br>|
|5Finland|OECD<br>5Denmark<br>OECD|5New Zealand<br>OECD|5 Germany<br>OECD|
|6France<br>7 United States|OECD<br>6 Singapore<br>EA<br>OECD<br>7 Hong Kong<br>EA|6Netherlands<br>OECD<br>7 Australia<br>OECD|6Netherlands<br>OECD<br>7 Singapore<br>EA|
|8 Canada|OECD<br>8 UnitedKingdom<br>OECD|8 Sweden<br>OECD|8HongKong<br>EA|
|9Denmark<br>|OECD<br>9 Sweden<br>OECD<br> <br> <br>|9 Sri Lanka<br>SA<br> <br>|9 Sweden<br>OECD<br> <br>|
|10 Sweden|OECD<br>10 Chile<br>LAC|10 Iceland<br>OECD|10 United Kingdom<br>OECD|
|11 Belgium<br>|OECD<br>11 Austria<br>OECD<br> <br> <br>|11 Norway<br>OECD<br> <br>|11 Korea<br>OECD<br> <br>|
|12 Iceland|OECD<br>12 Germany<br>OECD|12 Canada<br>OECD|12 Austria<br>OECD|
|13Norway<br>|OECD<br>13 United States<br>OECD<br> <br> <br>|13Austria<br>OECD<br> <br>|13France<br>OECD<br> <br>|
|14Japan<br>15 New Zealand|OECD<br>14 Australia<br>OECD<br>OECD<br>15 Norway<br>OECD|14United States<br>OECD<br>15 Chile<br>LAC|14 Australia<br>OECD<br>15 Estonia<br>ECA|
|16 UnitedKingdom<br>|<br>OECD<br>16 Canada<br>OECD<br> <br> <br>|16 UnitedKingdom<br>OECD<br> <br>|16Norway<br>OECD<br> <br>|
|17 Australia<br>18 Switzerland|OECD<br>17 Ireland<br>OECD<br>OECD<br>18 Belgium<br>OECD|17CostaRica<br>LAC<br>18 Ireland<br>OECD|17Switzerland<br>OECD<br>18 Taiwan<br>EA|
|<br>19Malaysia|<br> <br><br>EA<br>19 Switzerland<br>OECD|<br><br>19 Germany<br>OECD|<br> <br>19New Zealand<br>OECD|
|20 South Africa|SSA<br>20Hungary<br>ECA|20 Uruguay<br>LAC|20Belgium<br>OECD|
|21 Israel|MENA<br>21 Israel<br>MENA|21 Hon Kon<br>EA|21 Denmark<br>OECD|
|<br>22Jamaica|<br> <br><br>LAC<br>22 Estonia<br>ECA|g g<br> <br>22 Trinidad andTobagoLAC|<br><br>22Spain<br>OECD|
|23Austria<br>24 Spain|OECD<br>23France<br>OECD<br>OECD<br>24 Taiwan<br>EA|23Mauritius<br>SSA<br>24 Spain<br>OECD|23 Chile<br>LAC<br>24 Israel<br>MENA|
|25Taiwan|EA<br>25Italy<br>OECD|25Estonia<br>ECA|25Panama<br>LAC|
|26Mauritius<br>|SSA<br>26Portugal<br>OECD<br> <br> <br>|26Lithuania<br>ECA<br> <br>|26Italy<br>OECD<br> <br>|
|27 Panama|LAC<br>27 Greece<br>OECD|27 Israel<br>MENA|27 Czech Republic<br>ECA|
|28Trinidad andTobago <br>|LAC<br>28 Spain<br>OECD<br> <br><br>|28 Jordan<br>MENA<br> <br>|<br>28 South Africa<br>SSA<br> <br>|
|29Estonia|ECA<br>29 Slovenia<br>ECA|29Belgium<br>OECD|29Ireland<br>OECD|
|30 Italy|OECD<br>30 Japan<br>OECD|30 Brazil<br>LAC|30 Japan<br>OECD|
|<br>31 Thailand<br>32Chile|<br> <br><br>EA<br>31 Tunisia<br>NEMA<br>LAC<br>32Slovak Republic<br>ECA|<br> <br>31 France<br>OECD<br>32 Latvia<br>ECA|<br><br>31Slovenia<br>ECA<br>32 Dominican Republic<br>LAC|
|33 Tunisia|NEMA<br>33 Botswana<br>SSA|33 Taiwan<br>EA|33 Portugal<br>OECD|
|<br>34 Namibia|<br> <br> <br>SSA<br>34 Peru<br>LAC|<br> <br>34 Peru<br>LAC|<br><br>34 ElSalvador<br>LAC|
|35Latvia<br>|ECA<br>35Lithuania<br>ECA<br> <br> <br>|35 Jamaica<br>LAC<br> <br>|35 Slovak Republic<br>ECA<br> <br>|
|36 Korea|OECD<br>36 South Africa<br>SSA|36 Bulgaria<br>ECA|36 Thailand<br>EA|
|37 Romania|ECA<br>37 Trinidad andTobagoLAC|37 Egypt<br>MENA|37Jordan<br>MENA|
|38 Greece<br>|OECD<br>38Mauritius<br>SSA<br> <br> <br>|38Dominican Republic<br>LAC<br> <br>|38Mexico<br>LAC<br> <br>|
|39 Ireland|OECD<br>39 Namibia<br>SSA|39 Italy<br>OECD|39 Malaysia<br>EA|
|40Slovenia|ECA<br>40Czech Republic<br>ECA|40Malaysia<br>EA|40Romania<br>ECA|
|<br>41 Portugal|<br> <br> <br>OECD<br>41 Malaysia<br>EA|<br> <br>41 Slovenia<br>ECA|<br> <br>41 Argentina<br>LAC|
|42Jordan|MENA<br>42 Mexico<br>LAC|42 ElSalvador<br>LAC|42 Brazil<br>LAC|
|43Egypt|MENA<br>43 Uruguay<br>LAC<br>|43Mexico<br>LAC<br>|43 Ukraine<br>ECA|
|44 Turkey|ECA<br>44 Jordan<br>MENA|44 Japan<br>OECD|44 Indonesia<br>EA|
|<br>45Argentina|LAC<br>45Poland<br>ECA|<br>45Czech Republic<br>ECA|45Egypt<br>MENA|
|<br>46 Ukraine|<br> <br>ECA<br>46 Jamaica<br>LAC|<br> <br>46 South Africa<br>SSA|<br><br>46 Jamaica<br>LAC|
|47 Uruguay<br>|LAC<br>47 Korea<br>OECD<br><br><br>|47 Greece<br>OECD<br> <br>|47 Sri Lanka<br>SA<br><br>|
|48Brazil|LAC<br>48 Colombia<br>LAC|48Panama<br>LAC|48 Uruguay<br>LAC|
|49Morocco|MENA<br>49Bulgaria<br>ECA|49 Slovak Republic<br>ECA|49Hungary<br>ECA|
|50 Lithuania<br>|ECA<br>50 El Salvador<br>LAC<br><br> <br>|50 Romania<br>ECA<br> <br>|50 Venezuela<br>LAC<br> <br>|
|51 Dominican Republic<br>52 Poland|LAC<br>51 Turkey<br>ECA<br>ECA<br>52 Latvia<br>ECA|51 Portugal<br>OECD<br>52 Korea<br>OECD|51 Peru<br>LAC<br>52 Turkey<br>ECA|
|<br>53 Mexico|<br> <br> <br>LAC<br>53 China<br>EA|<br><br>53 China<br>EA|<br> <br>53 Latvia<br>ECA|
|54Czech Republic|ECA<br>54CostaRica<br>LAC|54 Honduras<br>LAC|54 Bolivia<br>LAC|
|55India<br>|SA<br>55Argentina<br>LAC<br> <br> <br>|55Bangladesh<br>SA<br> <br>|55 CostaRica<br>LAC<br> <br>|
|56 El Salvador|LAC<br>56 Thailand<br>EA|56 Hungary<br>ECA|56 Colombia<br>LAC|
|57Sri Lanka<br>|SA<br>57 India<br>SA<br> <br> <br>|57Guatemala<br>LAC<br> <br>|57 Trinidad andTobagoLAC<br> <br>|
|58Russia<br>59 Venezuela|ECA<br>58Morocco<br>MENA<br>LAC<br>59 Panama<br>LAC|58Bolivia<br>LAC<br>59 Thailand<br>EA|58India<br>SA<br>59 Philippines<br>EA|
|60Chi|EA<br>60Zibb<br>SSA|60Vi <br>EA|<br>60Pld<br>ECA|
|na<br>61 Ecuador<br>62 Hunar|<br>mawe<br> <br>LAC<br>61 Brazil<br>LAC<br>ECA<br>62 Et<br>MENA|etnam<br> <br>61 Nicaragua<br>LAC<br>62 Poland<br>ECA|oan<br> <br>61Greece<br>OECD<br>62 China<br>EA|
|gy<br>63 CostaRica|<br>gyp<br><br>LAC<br>63Bolivia<br>LAC|<br> <br>63 Ukraine<br>ECA|<br> <br>63Bulgaria<br>ECA|
|64 Botswana|SSA<br>64 Venezuela<br>LAC|64 Paraguay<br>LAC|64 Honduras<br>LAC|
|65 Indonesia<br>|EA<br>65 Sri Lanka<br>SA<br><br>|65 Ecuador<br>LAC|65 Lithuania<br>ECA<br>|
|66 Colombia<br>67 Honduras|LAC<br>66Romania<br>ECA<br>LAC<br>67Guatemala<br>LAC|66Philippines<br>EA<br>67 India<br>SA|66Ecuador<br>LAC<br>67Guatemala<br>LAC|
|<br>68 Guatemala|<br><br>LAC<br>68 Dominican Republic<br>LAC|<br> <br>68 Nigeria<br>SSA|<br><br>68 Nicaragua<br>LAC|

53 ____________________________________________________________________________________________________________
# **_<u>________________________________________________________</u>_**

|69Peru|LAC|69Russia|ECA|69Zimbabwe|SSA|69Vietnam|EA|
|---|---|---|---|---|---|---|---|
|70 Bulgaria|ECA|70 Philippines|EA|70 Colombia|LAC|70 Paraguay|LAC|
|71 Nigeria|SSA|71 Ecuador|LAC|71 Russia|ECA|71 Bangladesh|SA|
|72 Philippines|EA|72 Nicaragua|LAC|72 Turkey|ECA|72 Russia|ECA|
|73 Slovak Republic|ECA|73 Ukraine|ECA|73 Indonesia|EA|73 Nigeria|SSA|
|74 Zimbabwe|SSA|74 Honduras|LAC|74 Argentina|LAC|74 Zimbabwe|SSA|
|75Paraguay|LAC|75Indonesia|EA|75Venezuela|LAC|75Mauritius|SSA|
|76 Vietnam|EA|76 Bangladesh|SA|||||
|77 Nicaragua|LAC|77 Nigeria|SSA|||||
|78Bangladesh|SA|78Vietnam|EA|||||
|79Bolivia|LAC|79Paraguay|LAC|||||

54 __________________________________________________________________________________________________________
**_<u>________________________________________________________</u>_**

# **Annex F.   TTFSE Performance Indicators**

|**Indicators**|**Description**|**Remarks**|
|---|---|---|
|**Inland Terminals**|||
|Import clearance<br>time|Time between entrance of<br>truck into the terminal and<br>release of goods|Information on truck identification and time of<br>arrival and departure is recorded with the use of<br>computer terminals or time clocks installed at the<br>terminalentry and exit points.|
|Physical examination|Number of times that goods<br>are examined or the cargo<br>compartment is searched<br>compared to the total<br>number of import, export<br>and suspense declarations|The information is derived from the computer<br>system that records all declarations and from the<br>requirement to prepare an automated report of the<br>results of each physical examination.|
|Trucks cleared in less<br>than 15 minutes|Number of times that a<br>truck completes import<br>clearance in less than 15<br>minutes compared to the<br>total number of import<br>clearances|Information is recorded using the same system that<br>provides the data on import clearance times.|
|Irregularities/number<br>of examinations|Number of examinations<br>discovered during physical<br>examinations compared to<br>the total number of<br>physical examinations<br>carried out|Information is obtained from the automated<br>reporting of the results of all physical<br>examinations. Data also be assessed, when more<br>reliable, on a monthly basis.|
|**Border crossings**|||
|Truck examinations|Number of trucks actually<br>opened (i.e. seals broken)<br>compared to the total<br>numberoftrucks processed|Information is compiled through the use of<br>computerized traffic logs and the requirement to<br>prepare an automated report of the results of each<br>truckexamination.|
|Irregularities/Number<br>of examinations|Number of irregularities<br>discovered during<br>examinations compared to<br>the total number of trucks<br>examined|Information is extracted from the automated<br>reports of truck examinations.|
|Average border exit<br>time|For trucks exiting the<br>country, it is the time<br>between joining the queue<br>and crossing the border|Information on truck identification and times is<br>recorded continuously with the use of computer<br>terminal s or time clocks installed at appropriate<br>locations.|
|Average border entry<br>time|For trucks entering the<br>country, it is the time<br>between crossing the<br>border and departing the<br>station|Same as exit time.|
|Survey occurrence of<br>corruption|Number of cases when a<br>driver makes or is asked to<br>make an unauthorized<br>payment compared to the|Information to calculate this indicator is derived<br>from surveys of truck drivers using the crossing<br>point. This survey is conducted on a continuous<br>basis throughcooperating transport companies.|

55 ____________________________________________________________________________________________________________
# **_<u>________________________________________________________</u>_**

||total number of<br>trucks/locations surveyed||
|---|---|---|
|Reported occurrence<br>of corruption|Number of cases when a<br>driver makes or is asked to<br>make an unauthorized<br>payment compared to the<br>total number of survey<br>responses|Information to calculate this indicator is derived<br>from records of received reports of corruption<br>maintained by the Customs administrations.|
|Revenue collected/<br>Customs staff|Total revenues collected /<br>Total number of customs<br>employees|Information obtained from records maintained by<br>the Customs administrations.|
|Total Customs<br>administration cost/<br>revenue collected|Total budget of the<br>administration (including<br>salaries, overtime, bonuses<br>and benefits)/ Total<br>revenue collected<br>irrespective of its<br>destination|Information obtained from records maintained by<br>the Customs administrations.|
|Revenue collected/<br>Salaries|Total agency salaries,<br>overtime, bonuses and<br>benefits/ Total revenue<br>collected irrespective of its<br>destination|Information obtained from records maintained by<br>the Customs administrations.|
|Trade<br>volume/Customs<br>staff|Trade Volume / number of<br>customs employees|Information obtained from country statistical data.|
|Annual number of<br>declarations/Customs<br>staff|Total number of<br>declarations (import,<br>export, suspense regimes,<br>but excluding transit)<br>irrespective of the number<br>of items/Total staff<br>employed by Customs|Information obtained from records maintained by<br>the Customs administrations.|

_Source: TTFSE Manual_ 56 __________________________________________________________________________________________________________
**_<u>________________________________________________________</u>_**

# **Annex G.   Trade Logistics Indicators: Selected Examples**

||**Core Measure**|**Unit**|**Definition of Term**|**Sources of data**|
|---|---|---|---|---|
|1.1|Clearance Time|Days|For imports, average time taken<br>from when goods arrive at the<br>port of entry until the time they<br>are claimed from customs|World Business<br>Environment Survey<br>(WBES)|
|1.2|Longest day to clear<br>customs for imports|Days|For imports, longest time taken<br>from when goods arrive at the<br>port of entry until the time they<br>are claimed from customs|Investment Climate<br>Assessments (ICAs)|
|1.3|Clearance Time:<br>TemporaryEntry||||
|1.3.1|Clearance Time for<br>sea cargo: Temporary<br>Entry|<br>Days|Clearance time for temporary<br>entry sea cargo (LCL and FCL)|International Exhibition<br>Logistics Associates<br>(IELA)|
|1.3.2|Clearance Time for<br>air cargo: Temporary<br>Entry|Days|Clearance time for temporary<br>entry air cargo|International Exhibition<br>Logistics Associates<br>(IELA)|
|1.4|Release Time of<br>goods|Days|Normally from the time of<br>arrival of goods at the<br>port/airport/land border until<br>their release to the importer or a<br>third party on his behalf|World Customs<br>Organization : Time<br>Release Methodology,<br>and (simplified) TTFSE<br>methodology|
|1.5|Revenue<br>Collected/Customs<br>Employee|USD/employee|Total revenue collected/ Total<br>number of customs employees|TTFSE methodology|
|1.5.1|Revenue Collected|USD|Revenue collected by customs|TTFSE methodology|
|1.5.2|Customs Employees|Number of<br>people|Total number of customs<br>employees|TTFSE methodology|
|1.6|Customs<br>Environment /<br>Efficiency|number 0-1<br>(The value of 1<br>stands for the<br>best<br>performer)|<br>Average of two indexed inputs:<br>hidden import barriers other than<br>published tariffs and quotas,<br>irregular extra payment or bribes<br>connected with export and<br>import payments|<br> <br>GEP 2004 database<br>Chapter Five, (2003)|

57 ____________________________________________________________________________________________________________
# **_<u>________________________________________________________</u>_**

|1.7|Transport time|Days|The average time required to<br>transport goods from the place of<br>production / manufacturing /<br>processing to the place from<br>where the goods will be<br>exported, or from the place of<br>import to the final destination /<br>distribution point or processing<br>plant|<br>Freight forwarder|
|---|---|---|---|---|
|1.8|Transport cost|Currency|The total cost of transporting<br>goods from the place of<br>production / manufacturing /<br>processing to the place from<br>where the goods will be exported<br>- or from the place of import to<br>the final destination / distribution<br>point or processing plant|<br> <br>Freight forwarder|

58 __________________________________________________________________________________________________________
**_<u>________________________________________________________</u>_**

# **Annex H.   Sample of Infrastructure/Facilitation Indicators (*means available through World Development Indicators 2005)**

# **_Energy_**

- Access to electricity Network (% of population)*

- Electricity production*

- Average end-user prices (US cents/kwh)

- Quality of electricity services

- Electricity supply time  (hours/day)

- Waiting time for electricity connection

- Electricity outage time (hours/day)

- Technical efficiency index

- Electric power consumption (kwh per capita) *

- Electric power transmission and distribution losses (% of output) *

- Commercial energy production/use *

- Combustible renewables and waste (% of total energy)*

- Energy imports, net (% of commercial energy use)*

- Energy production (kt of oil equivalent)*

- Energy use (kg of oil equivalent per capita)*

- Energy use (kt of oil equivalent)*

- Energy use per PPP GDP (kg of oil equivalent per constant 2000 PPP $)*

- GDP per unit of energy use*

# **_Roads_**

- Roads, total network (km) *

- Road traffic (vehicle per km) *

- Roads, goods transported (million ton-km) *

- Access to “all season” road (% of population)

- Road density, population (road km/1000)

- Travel time to work in main cities (minutes/one-way work trip)

- Paved road (% of total road) *

- Perception of services rendered by road department/public works

- Perception of quality of air transport /railroad services

- Road in good/fair condition

- Access to formal transportation service (% of population)

- Passenger cars (per 1,000 people)*

- Pump price for diesel fuel (US$ per liter) *

- Pump price for super gasoline (US$ per liter) *

- Two-wheelers (per 1,000 people)*

- Vehicles (per 1,000 people)*

- Vehicles (per km of road)*

# **_Railways_**

- Rail lines, total (km) *

- Rail lines density

- Railways, good hauled (ton-km)*

59 ____________________________________________________________________________________________________________
# **_<u>________________________________________________________</u>_**

- Railways, passengers carried (passenger-km)*

# **_Ports/Border_**

- Container port traffic (TEU: 20 foot equivalent units) *

- Port handling costs (US$)

- Average ship turn-around time

- Average cargo dwelling Time

- Percentage of physical control (percentage of boxes opened, % of consignments physically checked)

- Average cost/container

- Gross/Net  berth productivity

- Containers per hour handled

- Ship output in tons per ship working hour, or tons per ship hour at berth, or tons per ship hour in port

- Port accessibility

- Congestion inside and outside port area on the land and sea side

- Containerized cargo

- Number of border agencies (can be correlated with time)

- Average Crossing Time

- Days wasted

- Technical efficiency index

- Revenue collected/staff

- Average border exit/entry time

- Customs clearance times

- Quality of customs

- Number of bilateral transit agreements

# **_Air_**

- Air transport, freight (million tons per km) *

- Average time for cargo delivery

- Air transport, passengers carried *

- Aircraft departures *

- Air transport, passengers carried

- Aircraft departures*

# **_Information and Communication Technology_**

- Information and communication technology expenditure (% of GDP) *

- Overall quality

- Personal computers (per 1,000 people) *

- Internet users *

- Internet hosts (per 10,000 people)

- Number of internet service providers

- Firm-level technology absorption

60 __________________________________________________________________________________________________________
**_<u>________________________________________________________</u>_**

- Businesses using e-commerce (%)

- Ports using EDI

- Use of internet-based transactions with government

- Presence of wireless e-business applications

- Number of secure internet servers*

- Internet service provider/telephone access charges ($/30 off-peak hours) *

- Cable television subscribers*

- Daily newspapers*

- Internet total monthly price*

- Radios*

- Television sets*

- Broadband internet access (1=not available; 7=widely used)

- Government online services (1=not available; 7=commonly available)

- Government prioritization of ICT (1=low; 7=high)

- Highly-skilled IT workers (1=must leave country; 7=have choice of jobs within country)

- Internet effects on business (1=no change; 7=huge improvement)

- ISP competition ensures high quality and low prices (1=no; 7=yes)

- Laws relating to ICT use (1=nonexistent; 7=well developed and enforced)

- Local specialized IT services (1=not available; 7=available from world-class institutions)

- Speed and cost of internet access (1=slow and expensive; 7=fast and cheap)

# **_Telecom_**

- Ease of obtaining new telephone lines

- Telephone mainlines (per 1,000 people) *

- Number of telephone faults (per 100 main lines)

- Telephone mainlines in largest city (per 1,000 people) *

- Telephone mainlines per employee *

- Telephone mainlines, waiting list *

- Telephone revenue per mainline *

- Fixed line and mobile phone subscribers (per 1,000 people) *

- International telecom, outgoing traffic (minutes per subscriber) *

- Mobile phones*

- Telephone average cost of call to US (US$ per three minutes)*

- Telephone average cost of local call (US$ per three minutes)*

61 ____________________________________________________________________________________________________________
# **_<u>________________________________________________________</u>_**

# **<u>Annex I.   Summary of Main Data Sources</u>**

|**Data**|**Coverage**|**Years**|**Variables/Description**|
|---|---|---|---|
||**INV**|**ESTMENT CL**|**IMATE**|
|World Competitiveness<br>Yearbook|59|Since 1989|Competitiveness factors (economic<br>performance, government efficiency,<br>business efficiency, and<br>infrastructure)<sup>iv</sup>.|
|Doing Business<br>Database|155|Annual|Indicators of regulatory costs of<br>business and enforcement|
|Investment Climate<br>Surveys (ICS)|32,000<br>entreprene<br>urs in 62<br>countries.|Expanded<br>since mid<br>1990s|Indicators of firm productivity and<br>performance.|
|EBRD Transition Report|26 Eastern<br>Europe<br>and CIS<br>countries||Quality of business environment|
|World Business<br>Environment Survey<br>(WBES)|80|1999-2000|Corruption, judiciary, quality of<br>business environment, efficiency of<br>customs (including time taken to clear<br>customs), quality and efficiency of<br>public services|
|World Bank :<br>Investment Climate<br>Assessments<br>(ICAs)|18||Indicators on entry regulation,<br>infrastructure indicators, regulatory and<br>administrative delays (including<br>customs clearance)|
|World Economic Forum<br>: Global<br>Competitiveness Report<br>(GCR)|117|annual|Growth Competitiveness Index and<br>other measures of economic<br>performance; Index of perception of<br>roads, railway and air services; Index of|
||||<br>Port efficiency|
|||**Governanc**|**e**|
|Governance database|160|1996-2002|Voice and Accountability, Political<br>Stability, Government Effectiveness,<br>Regulatory Framework, Rule of Law,<br>CorruptionControl|
|Business Environment<br>and Enterprise<br>Performance Survey<br>(BEEPS)|20,000<br>firms in<br>ECA<br>countries|1999, 2002<br>and 2005.|Doing Business, Corruption, Crime,<br>Regulations, Customs, Infrastructure|
|Transparency<br>International|Between<br>90-100<br>countries|1995-2002|Corruption Perception Index|
|||**Trade**||
|Global Monitoring||2003|trade effects ofpolicies onan importing|

62 __________________________________________________________________________________________________________
# **_<u>________________________________________________________</u>_**

|Report 2004; Overall<br>Trade Restrictiveness<br>Index(OTRI)|||economy|
|---|---|---|---|
|Doha Development<br>Agenda Trade Capacity<br>Building Database<br>(TCBDB)||annual|information on trade-related technical<br>assistance and capacity building projects|
|Technical Barriers to<br>Trade (TBT) Database|690 firms<br>in 17<br>countries|2001-2||
|Global Economic<br>Prospects 2004 database<br>(Chapter 5) : Based on<br>Wilson, Mann, Otsuki<br>(2003)|75|For year 2000|Port efficiency; Customs environment;<br>Regulatory environment; Service sector<br>infrastructure|
|European Union (EU)<br>Market Access database||current|Sectoral and Trade Barriers, Applied<br>Tariffs, Exporters' Guide to Import<br>Formalities|
|Tuck Trade Agreements<br>Database||2003|bilateral and regional free trade<br>agreements and customs union<br>agreements|
|PERINOM Database<br>|18<br>countries,<br>650,000<br>records<br>**CUSTOMS**<br>|**AND BORDER**<br>|Bibliographic database on standards and<br>technical regulations<br>**CROSSINGS**<br>|
|Doing Business: Trading<br>Across Borders|155|Newly<br>implemented<br>from 2005|Documents for import and export,<br>Signatures for import and export, Time<br>for import and export|
|International Exhibition<br>Logistics Associates<br>(IELA)|67|Current|Average days required for customs<br>clearance for sea and air cargo|
|Trade and Transport<br>Facilitation in South<br>East Europe<br>(TTFSE)|8 ECA<br>countries|1999-annual|Performance and efficiency of customs<br>administration, and data on border<br>crossing and clearance times at 23 pilot<br>sites|
|Global Express<br>Association-Country<br>Market and Customs<br>BarriersReports|150|Current|Questionnaires about market access<br>restrictions, foreign investment, and the<br>use of local services.|
|International Road<br>Transport Union|17 ECA<br>countries|weekly data|Waiting Times at Border Crossings|
|Walkenhorst and Yasui<br>OECD Paper|80-100|2003|Border process quality and Border<br>waiting time|
|UNESCAP|Asian<br>countries|2003|Average and Maximum Waiting Times<br>atBorders|

63 ____________________________________________________________________________________________________________
**_<u>________________________________________________________</u>_**

||**TRANSP**<br>|**ORT INFRAST**|**RUCTURE**<br>|
|---|---|---|---|
|International Road<br>Transport Union|178||Road and railway networks|
|UN Economic<br>Commission of Latin<br>America and Caribbean<br>(ECLAC)|11 LA<br>countries.|2000|Foreign trade and transport statistics|
|World Bank : Railways<br>database|90|1980-99|Scale, output and performance|
|International Road<br>Federation|189|1997-2001|Road and vehicle statistics|
|Dutz, Mark (2005).<br>Road freight logistics,<br>competition, and<br>innovation: downstream<br>benefits and policy<br>implications|165<br>logistics<br>service<br>providers<br>and 493<br>user<br>enterprises|2004|the impact of innovative road freight<br>services on downstream business users|
|International Air<br>Transport Association<br>||**PORT Efficien**|World Air Transport Statistics (data on<br>IATA member airlines), Air Cargo<br>Annual(market trendsinaircargo)<br>**cy**<br>|
|US Department of<br>Transportation|US and<br>trading<br>partners||Maritime Transport Costs|
|MaerskSealand||current|MaritimeTransport Costs|
|International Monetary<br>Fund (IMF) :<br>International Finance<br>Statistics|||CIF/FOB|
|UNCTAD Review of<br>MaritimeTransport|World|Since 1968|Freight Costs as a percentage of Import<br>Value|
|Clark, Micco, Dollar<br>(2001) World Bank<br>WorkingPaper|35||Container Handling Charges|
|Fink, Mattoo, Neagu<br>(2001) World Bank<br>Working Paper|37<br>developin<br>g and 22<br>developed<br>countries||Cargo handling restrictions index,<br>Mandatory port restrictions index.|
|Global Economic<br>Prospects 2004 database<br>(Chapter 5) : Based on<br>Wilson, Mann, Otsuki<br>(2003)|75|For year 2000|Port efficiency|

64 __________________________________________________________________________________________________________
**_<u>________________________________________________________</u>_**

|**INFORM**<br>|**ATION AN**<br>|**D COMMUNIC**<br>|**ATION TECHNOLOGY**<br>|
|---|---|---|---|
|The WTO Services<br>Database|Member<br>states|Up to 2004|schedules of commitments and lists of<br>Article II (MFN) exemptions of WTO<br>Members|
|World Bank : ICT at a<br>Glance|184|2001|ICT infrastructure and access, Computer<br>and internet information, ICD business<br>and government environment data.|
|McConnell International<br>Report|53|2001-2|E-readiness|
|International<br>Telecommunications<br>Union : World<br>Telecommunications<br>Indicators Database|200|1960, 1965,<br>1970, 1975-<br>2003|80 telecommunication indicators<br>(Telephone mainlines per 1000 people;<br>Waiting List in thousands; International<br>telecommunications, outgoing traffic;<br>Number of personal computers; Internet<br>Users;InternetHosts)|
|World Economic Forum<br>: Global Information<br>Technology Report The<br>Networked Readiness<br>Index(NRI)|104|annual|Networked Readiness Index; Broadband<br>internet access availability; Local<br>specialized IT services availability;|
|OECD : Key ICT<br>indicators|80|Current|Number of websites, number of internet<br>hosts per 1000 inhabitants, number of<br>businesses with internet access, internet<br>penetration by activity, businesses using<br>internetforpurchasing and selling etc.|
|Bridges: E-Assessment<br>Reports||2000-2002|Competition in ISPs; Government<br>online services availability|
|NUA International||current|Numberofpeople online (million)|

65 ____________________________________________________________________________________________________________
**_<u>________________________________________________________</u>_**

# **Selected  Bibliography**

Amjadi and Yeats. 1995. _Have Transportation Costs Contributed to the Relative Decline of Sub-Saharan African Exports? Some Preliminary Evidence._ World Bank Working Paper 1559, The World Bank, Washington, D.C. APEC (Asia Pacific Economic Cooperation). September. 1999. _Assessing APEC Trade Liberalization and Facilitation_ . Update, Economic Committee. Bangkok APEC Conference.

APEC (Asia-Pacific Economic Co-operation), 2002. _Measuring the Impact of APEC Trade Facilitation on APEC Economies: A CGE Analysis_ . APEC Economic Committee, Bangkok.

Batra, G., D. Kaufmann, and A.H.W. Stone, 2003. _Investment Climate Around the World: Voices of the Firms from the World Business Environment Survey_ . The World Bank, Washington, D.C.: Carlos T. de Castro. 1993 _._ _<u>Trade and Transport Logistics: Facilitation Guidelines</u>_ <u>, SSATP Working</u> Paper No. 4, The World Bank, Washington, D.C.

Clark, X, D. Dollar and A. Micco. 2001. February. _Maritime Transport Costs and Port Efficiency_ . Working Paper No. 2731,: The World Bank, Washington, D.C.

DFAT (Australia’s Department of Foreign Affairs and Trade), 2001. _Paperless Trading Benefit to APEC, the Potential of the APEC Paperless Trading Initiative._ Working Paper, Australian Department of Foreign Affairs and Trade, Canberra.

Estache, Antonio. 1999. _Privatization and Regulation of Transport Infrastructure in the 1990s: Successes and Bugs to Fix for the Next Millennium._ Mimeo. The World Bank, Washington, D.C.(http://www.worldbank.org/wbi/regulation/pdfs/2248bugstofix.pdf) Fink, Carsten, Aaditya Mattoo, and Ileana Cristina Neagu. 2002a. _Trade in International Maritime Services: How Much Does Policy Matter?_ World Bank Economic Review 16(1): 81–108.

———. 2002b. _Assessing the Impact of Communication Cost on International Trade._ World Bank Working Paper 2929, The World Bank, Washington, D.C.

Fourgeaud, Patrick. 2000. November. _Measuring Port Performance_ . The World Bank, Washington, D.C. <u>(http://www.worldbank.org/html/fpd/transport/ports/con_docs/fourgeau.pdf)</u> Francois, J., H. van Meil, and F. van Tongeren, 2003. _Economic Benefits of the Doha Round for the Netherlands._ Project Report, Agricultural Economics Research Institute, The Hague.

Freund and Weinhold. 2000. _On the Effect of the Internet on International Trade_ . Board of Governors of the Federal Reserve System International Discussion Paper 693.

Gannon, Colin A. and Z. Shalizi. 1994. _Use of Sectoral and Project Performance Indicators in Bank financed Transport Operations_ World Bank Discussion Paper, The World Bank, Washington, D.C. (http://www.worldbank.org/transport/publicat/twu_21.pdf) Gausch and Kogan. 2001. _Inventories in Developing Countries: Levels and Determinants, a Red Flag on Competitiveness and Growth_ . World Bank Working Paper 2552, The World Bank, Washington, D.C.

66 __________________________________________________________________________________________________________
**_<u>________________________________________________________</u>_**

Hellqvist, Marcus. 2003. April. _<u>Trade Facilitation from a Developing Country Perspective</u>_ <u>. Swedish</u> National Board of Trade.

Hellqvist, Marcus. 2003. March. _<u>Trade Facilitation: Impact and Potential Gains.</u>_ Swedish National Board of Trade.

Hertel, T., T. Walmsley, and K. Ikatura. 2001. _Dynamic Effects of the ‘New Age’ Free Trade Agreement between Japan and Singapore_ . Journal of Economic Integration 24: 1019–49.

Hummels, D. 2001. _Time as a Trade Barrier_ . Unpublished. Department of Economics, Purdue University, West Lafayette, Indiana IMD (Institute for Management Development). Various years. _World Competitiveness Yearbook_ . Lausanne.

Kaufmann, Kraay, and Zoido-Lobaton. 2002. _Governance Matters II: Updated Indicators for 2000–01_ . World Bank Working Paper 2772, The World Bank, Washington, D.C.

Lakshmanan, T.R, U. Subramanian, W. Anderson, F. Leautier. _<u>Integration of Transport and Trade Facilitation: Selected Regional Case Studies.</u>_ <u>2001. The World Bank, Washington, D.C.</u> Leonard, J. 2001. _Impact of the September 11, 2001, Terrorist Attacks on North American Trade Flows_ . E – Alert, Manufacturers Alliance, Arlington,Virginia.

Limão, Nuno and Anthony J. Venables. 1999. Infrastructure, Geographical Disadvantage, and Transport Costs. World Bank Policy Research Working Paper No. 2257, The World Bank, Washington, D.C.

Messerlin, Patrick A., and Jamel Zarrouk. 2000. _Trade Facilitation: Technical Regulations and Customs Procedures._ The World Economy 23 (4): 577–593.

Molnar, E. and L. Ojala. 2003. _Transport and Trade Facilitation Issues in the CIS-7, Kazakhstan and Turkmenistan._ Paper prepared for the Lucerne Conference of the CIS-7 Initiative (20-22 January), The World Bank, Washington, D.C.

Moenius, Johannes. 2000. _Three Essays on Trade Barriers and Trade Volumes._ Ph.D. dissertation. University of California, San Diego, California Mueller-Jentsch, Daniel. 2002. _Transport Policies for the Euro-Mediterranean Free-Trade Area. An Agenda for Multi-modal Transport Reform in the Southern Mediterranean._ World Bank Technical Paper 527, The World Bank,Washington, D.C.

Murphy, Paul R. and James M. Daley. 1999. Spring. _Revisiting Logistical Friendliness Perspectives of International Freight Forwarders_ . Journal of Transportation Management _._ Ng, Francis and Alexander Yeats. 1998. November. _Good Governance and Trade Policy : Are They the Keys to Africa’s Global Integration and Growth?_ World Bank Working Paper., The World Bank, Washington, D.C.

OECD (Organisation for Economic Development and Co-operation). 2002a. _The Impact of the Terrorist Attacks of 11 September 2001 on International Trading and Transport Activities_ . Unclassified Document TD/TC/WP (2002)9/Final. Paris.

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**_<u>________________________________________________________</u>_**

———. 2002b. _Economic Consequences of Terrorism_ . OECD Economic Outlook 71: 117–40. Paris.

———. 2003. _The Role of Automation in Trade Facilitation_ . Document TD/TC/WP(2003)21, Paris. ———.. _Doha Development Agenda: Welfare Gains from Further Multilateral Trade Liberalisation with Respect to Tariffs_ . Document TD/TC/WP(2003)10/FINAL, Paris.

Poirson. 1998. _Economic Security, Private Investment and Growth in Developing Countries._ IMF Working Paper WP/98/04, The International Monetary Fund, Washington, D.C.

Radelet, Steven and Jeffrey Sachs. 1998. _Shipping Costs, Manufactured Exports, and Economic Growth._ Mimeo. Harvard Institute for International Development.

Raven, John. 2001. _<u>Trade and Transport Facilitation: A Toolkit for Audit, Analysis and Remedial Action</u>_ <u>.</u> The World Bank, Washington, D.C.

Regibeau, Pierre and Katharine Rockett. 2001. October. _<u>Administrative Delays as Barriers to Trade</u>_ <u>.</u> Center for Economic Policy Research. Schware, Robert and Paul Kimberley. 1995. _<u>Information Technology and National Trade Facilitation - Making the Most of Global Trade</u>_ <u>. World Bank Technical</u> Paper number 316, The World Bank, Washington, D.C.

_-_ Schware, Robert and Paul Kimberley. 1995. _<u>Information Technology and National Trade Facilitation Guide to Best Practice</u>_ <u>, World Bank Technical Paper number 317, The World Bank, Washington, D.C.</u> Subramanian, Uma. 2001. _Transport, Logistics, and Trade Facilitation in the South Asia Subregion_ . In T.R. Lakshmanan, Uma Subramanian, William P. Anderson and Frannie A. Léautier (eds), _Integration of Transport and Trade Facilitation_ . The World Bank, Washington, D.C.

Subramanian U., and J. Arnold. 2001. _<u>Forging Subregional Links in Transportation and Logistics in South Asia.</u> The_ World Bank, Washington, D.C.

UNCTAD (United Nations Commission on Trade and Development). 2001. E-Commerce and Development Report.

Walkenhorst, Peter, and Nora Dihel. 2002. _Trade Impacts of the Terrorist Attacks of 11 September 2001: A Quantitative Assessment_ . Paper prepared for the Workshop on The Economic Consequences of Global Terrorism. Berlin, June 12–13.

Walkenhorst, Peter and Tadashi Yasui. 2003. _Quantitative Assessment of the Benefits of Trade Facilitation._ OECD. TD/TC/WP(2003)31. Paris.

Wilson, John S., and Tsunehiro Otsuki. 2003. _Food Safety and Trade: Winners and Losers in a Nonharmonized World_ . Journal of Economic Integration 18 (2): 266–87.

———. 2003. April. _Standards and Technical Regulations and Firm’s Ability to Export New Evidence from World Bank Standards and Trade Survey_ , (Draft), The World Bank, Washington, D.C.

Wilson, John S., Catherine L. Mann, and Tsunehiro Otsuki. 2003a. _Trade Facilitation and Economic Development: Measuring the Impact_ . World Bank Working Paper 2933, The World Bank, Washington, D.C.

68 __________________________________________________________________________________________________________
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———. 2003b. _Trade Facilitation and Capacity Building: Global Perspective_ . Unpublished. The World Bank, Washington, D.C.

Wilson, John S., Catherine L. Mann, Yuen Pau Woo, Nizar Assanie, and Inbom Choi. 2002. _Trade Facilitation: A Development Perspective in the Asia-Pacific Region_ . Singapore: APEC Secretariat.

Woo, Yuen Pau. 2002. _Trade Facilitation in the WTO: Singapore to Doha and Beyond_ . In Will Martin and Mari Pangestu, eds., _Options for the Next Trade Round: View from East Asia_ . Cambridge, U.K.: Cambridge University Press.

World Bank. (2000). _The Evolution of Ports in a Competitive World. Port Reform Toolkit_ , Module 2. <u>(http://www.worldbank.org/transport/ports/toolkit.htm), The World Bank, Washington, D.C.</u> World Bank. 2002. _Costs of Doing Business Survey_ . World Bank Country Study, The World Bank, Washington, D.C.

<u>World Bank Contribution to Meeting of Governmental Experts from Landlocked and Transit Developing Countries, New York, July 30 to August 3, 2001. Display or download the Report by the UNCTAD secretariat.</u> 69 ____________________________________________________________________________________________________________
**_<u>________________________________________________________</u>_**

# **Endnotes**

> **_i_** Gausch and Kogan (2001) found that inventory holdings in the manufacturing sector in many developing countries are two to five times higher than in the United States. Their estimates further show that developing countries could reduce the unit cost of production by as much as 20 percent by reducing inventory holdings by half.

> **_ii_** - Maskus, Wilson, and Otsuki (2001) address several of the more important empirical methods and approaches to quantifying the gains of trade facilitation related to harmonized regulations.

- In addition, the Australian Department of Foreign Affairs and Trade and Chinese Ministry of Foreign Trade and Economic Cooperation (2001) suggest that moving to electronic documentation for trade would yield a cost savings of some “1.5 to 15 percent of the landed cost of an imported item.”

- UNCTAD (2001) considers trade facilitation in the broader context of creating an environment conducive to developing e-commerce usage and applications. The results show that a reduction of one percentage point in the cost of maritime and air transport services could increase Asian GDP by $3.3 billion.

- The Asia Pacific Economic Cooperation group (APEC 1999) found that the shock-derived reduction in trade costs ranged from 1 percent of import prices for industrial countries and Korea, Taiwan, and Singapore, to 2 percent for developing countries.<sup>**_ii_**</sup> The study estimated that APEC merchandise exports would increase by 3.3 percent from trade-facilitation efforts.

- Francois, van Meil and van tongeren (2003) found that a uniform 1.5% reduction in TTCs leads to benefits from trade facilitation of $72 billion

> _iii_ Many of the variables used in constructing the Networked Readiness Index of 2002-2003 of the Global Information Technology Report, are relevant to trade facilitation as well.

70 __________________________________________________________________________________________________________