“Single Window is defined as a facility that allows parties involved in trade and transport to lodge standardized information and documents with a single entry point to fulfil all import, export, and transit-related regulatory requirements”
UN/CEFACT RECOMMENDATION No. 33
MINUTES # 18 WG
Of Meeting of the Interagency Working Group for International Trade and Logistics Facilitation in Ukraine
|
Kyiv |
28 April 2015 |
Place: 11-g, Degtiarivska St.
The Meeting was called to order at 09: 00
The Meeting was adjourned at 18: 00
Those present: see Annex # 1
AGENDA
9:00-9:20 Welcoming speech:
Mr.Maxym Nefiodov, Deputy Minister of Economic Development and Trade of Ukraine,
Mrs. Virginia Cram-Martos, Director Economic Cooperation and Trade Division, UNECE
Moderators:
Mr. Volodmymyr Shchelkunov, Vice Chair of the Interagency Working Group on International Trade and Logistics Facilitation in Ukraine, Adviser to the Prime-Minister of Ukraine,
Mr. Mario Apostolov, Regional Adviser, UNECE Trade
9:20-10:00 Session I: Setting the Scene
10:00-13:00 Session II: Discussion of the Draft Report on the readiness of Ukraine to implement the measures of the WTO Agreement on Trade Facilitation.
Authors of the report
· Administration of the State Border Guard Service
· Ukrainian Union of road transport and logistics
· Legal firm «Ilyashev and Partners»
13:00-13:40 Lunch break
13:40-16:00 Session II (continued)
16:00-16:45 Session III. Summary of the Discussion and Action Points to finalize the report
16:45-17:30 Session IV. Implementation of the measures in the WTO TF Agreement:
17:30-18:00 Adoption of IWG decisions. Session V. Conclusions, closing statements
· Oleg Platonov, Vice Chair of the Interagency Working Group on International Trade and Logistics Facilitation in Ukraine, Chairman of the Association “UKRZOVNISHTRANS”
The meeting was opened by Shchelkunov V., Deputy Chairman of the Interagency working group on international trade facilitation and logistics in Ukraine (IWG), Advisor to the Prime Minister of Ukraine, Chairman of the Ukrainian national Committee of International chamber of Commerce (ICC Ukraine). He welcomed the participants and informed them about main objectives of the IWG activities for the following two years:
Development and implementation of the National strategic plan for international trade facilitation and logistics;
Preparation for building of the National body for trade facilitation, that is provided by the article 23.2 of the WTO Agreement on trade facilitation (2013).
Declared that the project “Single Window – Local Solution” has become the basis for further joint steps of the public sector and of the business community in the light of new challenges that will be solved by the IWG.
He informed that currently the work is underway to create a new portal «TFA.in.ua», devoted to all aspects of trade facilitation and logistics in Ukraine, and that, in addition to purely technical issues, the users of the portal will be offered it as a platform for the exchange of ideas, facilitation of international trade and logistics in Ukraine data collection and dissemination.
Mrs. Virginia Cram-Martos, Director Economic Cooperation and Trade Division, UNECE, also welcomed the participants of the meeting and stressed that for Ukraine, which is suffering the consequences of armed conflict, resulting in decreased production, exports, decreased wages of the population, for Ukraine, which has borders with seven countries and through the Black Sea has access to three countries that are also WTO members, and are in the process of implementation of the WTO Agreement on Trade Facilitation, appeared possibility for real changes.
Now obstacle for trade with Ukraine is not only a question of corruption and tariffs, but more a matter of procedures and their legislative regulation, which were lined up without the involvement of the business community, and not adjusted according to the needs of business, so these procedures and laws regulating them, make a real barrier for trade.
The first opportunity for the development of Ukraine is the reduction of costs and the improvement of trade relations with ten countries - potential trade partners.
Another possibility is the impetus that the WTO Agreement provides for internal reforms in Ukraine, to support greater efficiency and transparency that will improve conditions for both domestic and foreign trade.
The third opportunity is the possibility of obtaining assistance. But donor assistance is provided to those countries that need it and can show that they will benefit from this assistance. One of the most important issues in this is that the ministries, other government departments and people involved in the introduction of the current processes and legislation will support the changes. And the changes - it is always difficult.
Expressed the opinion that if Ukraine decided to move forward and use these capabilities, then it will succeed. And the main thing - is to take this decision.
Invited the participants to effective discussion of the draft report on the readiness of Ukraine to implement the provisions of the WTO Agreement on Trade Facilitation.
Mr. Maxym Nefiodov, Deputy Minister of Economic Development and Trade of Ukraine, congratulated all participants on behalf of the Ministry. He emphasized that, from the point of view of the Ministry, Ukraine's WTO membership is seen as a systemic factor in the development of the national economy for the purpose of trade liberalization and the establishment of a transparent environment for both exporters and importers.
He emphasized that in frame of the the reform of the trade regime Ukraine plans to focus its efforts primarily on three main objectives:
- Introduction of a clear, mutual and effective cooperation between Ukraine and the World Trade Organization;
- Implementation of commitments that Ukraine has undertaken with the accession to the WTO;
- Assistance to Ukrainian exporters, business and public society in the use of the opportunities and benefits provided by WTO.
Reminded that part of the package of Balinese agreements Ukraine supported was Trade Facilitate Agreement that aims not only on the simplification of customs procedures by reducing the associated financial costs, by improving transparency, reducing bureaucratic obstacles, but also on a wider profile decisions package including logistics and transport.
He informed that Ukraine is moving fast enough on the way to joining this package; so as soon as the Agreement was open to accession by all members the end of 2014, the Ministry of Economic Development and Trade together with the State Fiscal Service previously worked out its position and sent to the WTO Secretariat a notification of category A regarding Ukraine's readiness to fulfill certain provisions of the Agreement as soon as it comes into force.
Informed that the Ministry of Economic Development and Trade together with other executive agencies are actively working on ratification of the Agreement and this task is recorded in important policy documents, starting with the Strategy for Sustainable Development "Ukraine 2020", program of the Cabinet of Ministers of Ukraine, and ending with internal ministerial task to conduct offensive policy by the Trade representative of Ukraine in 2015.
Mr. Maxym Nefiodov expressed hope that in the near future, after drafting an official translation of the Agreement in cooperation with the Ministry of Foreign Affairs, it will be sent for approval by the executive authorities and then for ratification.
Reported about the support by the Ministry of the Interagency Working Group on international trade facilitation and logistics in Ukraine and about the actively participation of representatives of the Ministry in its meetings.
Informed that, pursuant to the previous meeting of the Interagency Working Group, the Ministry of Economic Development and Trade participated in the study of Ukraine's readiness to implement the provisions of the WTO Agreement on Trade Facilitation.
He expressed interest in the development of technical assistance given the difficulties in the way of rapid implementation of the WTO Agreement, and interest to ensure that Ukraine's accession to the Agreement was quick, efficient and was not only formally, but also that Ukraine would be able to take advantage of the benefits that it provides.
He emphasized that trade facilitation should take an important role in the implementation of structural reforms, which now holds Ukraine, because without improving business conditions, without creating clear and transparent incentives for all industries and for all types of businesses, Ukraine will be not able to switch on from the economic crisis, which is now, to sustainable economic growth, in which all are interested.
Urged all participants adjust to cooperation.
Experts Mr. Lev Bayazitov and Mr. Olexandr Fedorov introduced to the participants the draft report on the readiness of Ukraine to implement measures identified by the WTO Agreement on Trade Facilitation. (Appendix № 2 - Overview Report).
Drew attention to the difficulties that arose in the course of the study and presented its results. (Appendix № 3 - Presentation of Mr. L. Bayazitov, Appendix № 4 - Report of Mr. O. Fedorov).
Then the participants proceeded with the discussion of the draft report.
In the discussion took an active part:
Oleg Platonov (Vice Chair of IWG)
Volodymyr Shchelkunov (Vice Chair of IWG)
Virginia Cram-Martos (UNECE)
Mario Apostolov (UNECE) (Appendix № 5 – Presentation)
Poul Hansen (UNCTAD) (Appendix № 6 – Presentation)
Nora Neufeld (WTO) (Appendix № 7 – Presentation)
Violane Konar-Leacy (World Bank)
Anneli Wengelin (Board of Trade, Sweden)
Rajesh Aggarwal (International Trade Center)
Borys Filipov (EU Delegation to Ukraine)
Anthony Mort (EUBAM Mission)
Farhat Y. Farhat (USAID)
Iryna Vrublevska (Ministry of Economic Development and Trade of Ukraine)
Mykola Bilous (State Veterinary and Phytosanitory Service of Ukraine)
Ihor Muratov (State Fiscal Service of Ukraine)
Serhii Tereshchenko (Association “Ukrzovnishtrans”)
Vyacheslav Voronoi (SE “Ukrainian Sea Ports Administration”)
Olena Omelchenko (LF "Ilyashev and Partners")
Serhii Trusov (Magazin «Customs Broker»)
Mr. Christian Friis Bach, UNECE Executive Secretary and Under-Secretary-General of the United Nations, welcomed the participants and stressed that he supports Ukraine’s efforts aimed at reforms promoting progress and peace in Ukraine.
Pointed out that trade with some partners will allow Ukraine to rebuild and develop its economy according to the vision set out in the Minsk political declaration.
He emphasized that two and a half years ago, negotiations on a Free Trade Agreement were problematic for Ukraine. Trade has become part of the problem, and now trade should become part of the solution. This is very important for the economy of Ukraine. If you do not deal with bureaucracy and not to remove bureaucratic barriers to trade procedures, you can not help the business community to grow and the country - to develop. The Ukrainians are seeking new opportunities in work, development and trade.
Said that in Ukraine are the low tariffs that do not create significant problems and major difficulties constitute regulatory barriers to trade, and we must discuss why Ukraine occupies a low place in the ranking of the World Bank's business activities and other ratings. This is a significant barrier to all companies, including European companies that are willing to invest in Ukraine in the absence of bureaucratic barriers.
Stressed that good intentions of the Government of Ukraine expressed in its willingness to reforms, in particular, the willingness to remove these barriers, and UNECE will do everything that depends on it to support the efforts of the Government.
Informed that Ukraine has conducted research on economic and export development potential and if Ukrainian economy will reach the half of the world's best practices in trade facilitation, it can increase real income by 25%.
He expressed satisfaction with the joint work with Ukrainian partners in the port of Odessa on the project "Single Window - Local Solutions" and the desire to spread the work across all Ukraine, ministries and the business community.
Called for joint efforts towards progress with support of UNECE and its partners - UNCTAD, WTO, ITC and the international community.
He emphasized that if Ukraine implements key measures defined in the WTO Agreement on Trade Facilitation, the Ukrainian model could become a model for other countries, and Ukraine will prove that trade facilitation can promote economic growth.
Concerning the second item on the agenda:
About the Fifth international seminar on Trade Facilitation “Trade Facilitation. From Local Solution to National Strategy”.
Oleg Platonov said that, unfortunately, not all ministries and departments participated in the survey of the readiness of Ukraine to implement the provisions of the WTO Agreement on Trade Facilitation, and not all agencies that participated in the survey gave the full answer to the questions, provided by the research. It is therefore advisable to continue research and bring to the process a broader business community.
Informed about the Fifth International Seminar on Trade Facilitation "Trade Facilitation. From Local Solution to National Strategies ", organized by UNECE and the Government of Ukraine, with the support of the Association "Ukrzovnishtrans" and ICC Ukraine, which will be held June 2, 2015 in Odessa in the framework of annual Transport Week.
Said that in March or October this year at the next meeting of the IWG it is planned to hold a preliminary three-day workshop to enhance awareness of civil servants and services consumers for the implementation of measures envisaged by the WTO Agreement on Trade Facilitation, to be able to go to the actual formation by the Ministry of Economic Development and Trade of the National trade facilitation and logistics body, which will take on part of the functions that the assigned officials will deal with professionally.
Drew attention to the critical importance of finalizing legislation governing public-private partnership in Ukraine, taking into account the entire chain including research, design, operation, control and ownership of its product.
Oleg Platonov said that all these issues will be considered at a seminar in Odessa 2 June 2015 and suggested to recommend to the management of ministries and other central executive bodies to take part in the event.
Following the discussion the Interagency Working group adopted the following recommendations:
RECOMMENDATIONS
of the Interagency Working Group on trade facilitation and logistics in Ukraine following the results of the joint seminar with the United Nations Economic Commission for Europe (UNECE) on Ukraine's readiness to implement the WTO Trade Facilitation Agreement
(Kiev, 28 April 2015)
The Interagency Working Group on trade facilitation and logistics in Ukraine (hereinafter IWG), in collaboration with the United Nations Economic Commission for Europe (UNECE),
continuing its efforts to establish a national trade facilitation body in compliance with UNECE recommendation No. 4;
maintaining its work on developing a national strategic plan on trade facilitation and logistics in Ukraine,
examined the findings of the study on the level of readiness of Ukraine to implement the WTO Trade Facilitation Agreement, TFA (Bali, 2013), carried out by independent experts, under the guidance and using the methodology of UNECE and UNCTAD, under the auspices of the IWG, and with the support of the Ukrainian National Committee of the International Chamber of Commerce (ICC Ukraine), in its function as the secretariat of the IWG.
I. The analysis of the findings of the study demonstrated the following:
It did not confirm the readiness of Ukraine to implement the Agreement in its entirety. Only with reference to a limited number of measures contained in the Agreement (such as art.6, para 6.2; art.9; and art.10, paras 10.5, 10.6, and 10.9) the country is ready. On certain measures (e.g. art.1, paras 1.1 and 1.2; as well as art.7, paras 7.1, 7.7, and 7.9), which have been notified as measures of category A (i.e. measures that should be implemented prior to the entry into force of the WTO Agreement), the results of the study did not reveal unequivocal confirmation of the country’s readiness for their implementation.
Nevertheless, this report, once finalized, may become a useful source for the Ukrainian Government in: the analysis of the current state of affairs in trade procedures; the improvement of its domestic and international policies in these areas, and the procedure of notification to the WTO Secretariat on the level of readiness of the country to implement the measures in the WTO TFA.
The government agencies regulating foreign trade in Ukraine do not have clear understanding of the importance of trade facilitation nor a vision of their role in this area. Moreover, there is no body in Ukraine that clearly undertakes a coordinating role in trade facilitation in the country.
In this regard, the work of the IWG on consolidating a national trade facilitation body in Ukraine acquires a particularly importance, with the clear objective of developing and implementing a national strategic plan and programmes on trade facilitation and logistics in Ukraine.
II. The development and contents of the discussions at the seminar allowed for the following conclusions:
It is very important to understand that aligning foreign trade procedures and practices in Ukraine to the provisions of the WTO Agreement will increase the attractiveness of Ukraine to international investors. This will result in attracting new technologies and will encourage modernization and economic development. The lack of trade facilitation would have negative consequences for the image and economy of the country.
The IWG platform, as a focal point for the collection and dissemination of information on trade facilitation and logistics in Ukraine, was successfully utilized for ensuring transparency and sustainable application of the findings of the study. It will be appropriate that the finalization of the report and the monitoring of the implementation of its recommendations will also be carried out under the auspices of the IWG.
The relevant regulatory agencies should intensify their efforts to assess the real level of readiness to implement the measures referred to in the WTO Agreement, but also to identify existing obstacles, and determine the needs and priorities of the country.
A priority for Ukraine should become those measures, which were defined in its notification to the WTO secretariat on 1 August 2015 as “category A" (measures to be implemented prior to the entry into force of the WTO Agreement), but which received different assessment by the survey respondents with regard to the readiness of the country to implement them (in particular, these are the measures in art.1, paras 1.1 and 1.2, as well as art.7, paras 7.1, 7.7 and 7.9 of the Agreement)
All regulatory bodies are expected to contribute to the finalization and subsequent monitoring of the readiness report; to help in the classifications of the readiness to implement the measures in the WTO Agreement, to be defined as "category B" (measures that the country will implement itself, but it will need more time) and "category C" (measures, which will need more time and additional external resources); and to develop plans for the implementation of these measures, including time frames and budgets for work on their implementation.
III. The Ukrainian business community, expressing a strong interest in the implementation of trade facilitation, actively supported the study and the drafting of the report.
For the implementation of the measures and activities identified in the readiness study, carried out under the auspices of UNECE, taking into account the views expressed by the participants in the seminar on 28 April 2015, the IWG recommends:
· to the public authorities regulating international trade in Ukraine to take note of the information on the level of readiness of Ukraine to implement the measures of the WTO agreement;
· to the Ministry of Economic Development and Trade to take the lead, working closely with the IWG, notably in guiding the analysis and amendment of legislation, in order to align it with the requirements regarding all the measures in the WTO Agreement;
· to draw the attention of legislators to the need to accelerate the procedure for ratification of the WTO Trade Facilitation Agreement;
· to UNECE to continue its work with international and national experts to finalize the readiness report using further analysis of the proposals and comments made at the seminar and elsewhere. It will be useful to undertake a more in-depth survey of the public and private sectors, as the business community is most interested in implementing trade facilitation;
· to initiate the development of a mechanism for further periodic monitoring of the status of implementation of the WTO Trade Facilitation Agreement as reflected in the readiness report;
· to identify a coordinating centre among the government agencies to work on the completion of the study and on the preparation of the relevant notification to the WTO.
· to use the results of the survey to improve trade facilitation and logistics in Ukraine, in the preparation of the Ukrainian notification in accordance with the procedures of the WTO, and in the development of a national strategic plan and programs on trade facilitation and logistics.
· to request the IWG participants to elaborate further the national strategic plan and programs on trade facilitation and logistics in cooperation with the business community, as well as with trade regulatory authorities, which will be responsible for the implementation of this plan and programmes;
· to Ministries and other government agencies to link the recommended measures on the facilitation of international trade and logistics to the deregulation process in Ukraine.
· to heads of ministries and other governmental regulatory bodies to appoint persons responsible for the implementation of each measure in the WTO Agreement, which falls within the sphere of competence of their agencies.
· to instruct the competent authorities of Ukraine to conduct checks at seaports to prevent undue delays in the implementation of Decree 451 of the Cabinet of Ministers of Ukraine from 21.05.2012, Order 348 of the Ministry of Infrastructure of Ukraine from 5.06.2013 and other legislative acts regarding electronic document exchange and the implementation of a unified information systems of port community systems, as defined in UNECE’s Recommendations 33, 34 and 35.
· to amend para. 40 of the regulations of the Cabinet of Ministers of Ukraine, adopted by decree no. 950 from 18.07.2007, in order to abolish the requirement to re-endorse previously agreed bills of the Cabinet of Ministers of Ukraine, in the case of change of the head of the agency that has prepared or negotiated such acts;
· To draw the attention of the Government of Ukraine to the non-compliance with the requirements of paragraph 10 of section XXI of the Customs Code of Ukraine with regard to the development of a draft law on the procedure for compensation for damage caused by unlawful decisions, actions or omissions committed by public officials, because such a law is the basis to ensure the transparency and fairness of international trade procedures in Ukraine
· to the heads of ministries and government bodies to take part in the fifth international seminar on trade facilitation "From Local Solutions to National Strategies", organized by UNECE in collaboration with the Government of Ukraine, and scheduled to take place on 2 June 2015 in Odessa, Ukraine;
· to the Government of Ukraine to establish a clear public position on the legal status of electronic documents and digital signatures in international trade;
· to express gratitude to the Ukrainian and international experts, all seminar participants and development partners for their cooperation and support; and
· to express special appreciation to Mr. Christian Friis Bach, UN Under-Secretary-General and Executive Secretary of the UNECE, for his personal participation in the meeting of the IWG and the seminar, as well as the support expressed for the programme on facilitating trade and logistics in Ukraine.
Presiding Volodymyr Shchelkunov
