APEC 2016: The Customs- Business Dialogue and the precedence for SMEs

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APEC 2016: the Customs- Business Dialogue and the precedence for Micro, Small and Medium Enterprises.

With the focus on trade facilitation and globalisation of Micro, Small and Medium Enterprises (MSMEs) in the Asia Pacific region, the dialogue highlighted three sessions: balance between trade facilitation and compliance control of legitimate trade, Authorized Economic Operator, and e-commerce.

In the first session, the dialogue stressed that facilitating legitimate trade under a risk management adequate is a consecutive working for Peruvian Customs Administration in particular and APEC member economies’ customs administration in general related to foreign trade stakeholders and operators. Trade facilitation makes a great opportunity to improve the speed and efficiency of border procedures, thereby reducing time and trade costs as well as enhancing participation of MSMEs in the global value chains that characterize international trade. Reducing trade logistics cost and trade facilitation is a joint working between customs administrations and private sector. Moreover, simplifying procedures and ensuring their transparency is a great way to promote trade facilitation. It is essential to establish a real balance between trade facilitation and customs control with a view to reducing logistics costs that would make the enterprises and especially MSMEs more competitive.

The second session of Authorized Economic Operator affirmed that the challenge of AEO programs is to increase the number of MSMEs into it. It offers a chance for customs to share its security responsibilities with the private sector, rewarding them with additional facilitation benefits. AEO concept is based on the WCO SAFE Framework of Standards, and the AEO implementation guidance states that a flexible approach should be taken to the needs of Small and Medium Enterprises (SMEs). The challenges for SMEs to access to AEO program must face difficulties to understand the requirements as they are too strict and expensive. AEO progrgram should promote benefits to foreign trade operators, through Mutual Regconition Agreements to assure and facilitate global trade. According to the Trade Facilitation Agreement of the WTO, Article 7: Release and Clearance of Goods include the risk management as a key issue to ensure security and facilitate trade for Authorized Operators. Security is just one, it does not depend on the size of the enterprise. It means to use just one security protocol.

The last session, e-commerce, highlighted that the need for an effective exchange of information between Customs Administration and Foreign Trade operators, emphasizing that e-commerce is a source of social inclusion as well as a source of innovation and growth. Logistics is one of the objectives to achieve sustainable development. Then, foreign trade operators must apply new technologies used in e-commerce. It is emphasized that digital customs should be developed to facilitate trade. Also, e-commerce continues growing and it represents opportunities for MSMEs to integrate into the global market.

Mr. Au Anh Tuan, Deputy Director of Customs Control and Supervision Department, General Department of Viet Nam Customs delivered a presentation on best Practices on Trade Facilitation measures for MSMEs to access e-commerce. The presentation concentrated on MSMEs and e-commerce trend, best practices on trade facilitation measures and trade facilitation measures for MSMEs in Viet Nam.

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After the ACBD, the APEC 2016 second Sub-committee of Customs Procedures is taking place in three days from 17-19 August 2016 in Lima.