Royal Government of Cambodia
Terms of reference for Consulting Services
Time Release / Performance Measurement

I. Background and Context

The Royal Cambodian Government recently called for rapid action to streamline trade facilitation processes, including any overlaps in the information and inspection requirements carried out by various government agencies that regulate international trade. In this regard, the Government has asked the World Bank, European Commission, AusAID and other relevant donor agencies for technical support to its reform effort. The World Bank is preparing the Trade Facilitation and Competitiveness Project, expected to go to the Board June 2005. The European Commission is already engaged in the Multilateral Trade Assistance Project (MULTRAP). These build on analytical work already carried out, including the Integration and Competitiveness study developed through the Integrated Framework for Trade Related Technical Assistance and Seizing the Global Opportunity: Investment Climate Assessment and Reform Strategy . In these documents, a number of issues related to trade facilitation and import/export processing were identified as requiring immediate attention. Specifically, the report identified a range of administrative bottlenecks caused by poorly designed systems together with overlapping regulatory and documentary requirements that contribute to inefficiencies in the import/export process.

The Royal Government of Cambodia has defined an integrated program of reform to reduce unofficial costs, reduce clearance times, increase official revenues and then streamlining and automating processes. To give effect to its decisions it has established a Trade Facilitation Reform Team charged with consolidating inspection mandates across agencies and introducing selective inspections based on risk criteria. It is also charged with consolidating and rationalizing documentation within and across the various government agencies involved in import/export processing. In effect, the long term vision involves the creation of a Single Window approach to border management. The simplification of regulatory requirements, trade documentation and clearance procedures is at the core of the Government of Cambodia's strategy for improved trade facilitation and increased competitiveness. As a part of this process a review of existing documentary requirements has commenced with a view to rationalizing current requirements and simplifying existing forms in line with international standards. In addition, a review of the Cambodia Import Export Inspection and Fraud Repression Department (Camcontrol) has been commissioned to achieve a significant rationalization of border related interventions and inspections leading to lower transaction costs and more timely clearance of import/export consignments.

At this time no valid and reliable information is available on the overall time it takes to clear import consignments in Cambodia. It is now considered necessary to undertake a study to identify the average time taken between the arrival of goods in Cambodia and their release. While principle responsibility for the processing and clearance of imported goods rests with the Customs and Excise Department, several other government agencies exercise regulatory control over the import/export process or may be involved in its physical handling or inspection. As such, the contribution of all relevant agencies needs to be measured and analyzed to obtain reliable base line data and to identify corrective actions that might be taken to improve the overall import/export process.

II. Objective of the Study

The objective of the consultancy is to enable the authorities to measure, evaluate and improve the process of importing and exporting product in Cambodia, as well as to build trust and confidence in the reform process by private sector and other stakeholders through transparent accurate periodic performance data. This data will enable the authorities to identify any procedural problems, bottlenecks, infrastructure limitations and capacity constraints that affect the clearance of goods.

The Consultant should possess extensive experience in public sector reform and modernization in developing countries; Awareness of relevant international standards and best practice approaches; Sound understanding of import/export procedures, infrastructure and regulatory environment; Familiarity with international sanitary and phytosanitary regulation as well as voluntary standards; Demonstrated experience in undertaking similar assignments in Cambodia and/or other countries in the region.

III.  Scope of Work

3.1 Develop Methodology

The consultant will develop a Cambodia-specific methodology for accurately measuring, analyzing and reporting on the time between the arrival of goods in Cambodia and their eventual release. The Consultant will base the study on the methodology described in the World Customs Organization's Time Release Study methodology. A copy of the relevant WCO publications will be provided to the Consultant prior to commencement of the assignment. The Consultant will also be provided with process maps and other data relevant to the assignment.

3.2 Establish Working Group

The Consultant will establish a Working group responsible for overall management and coordinating the project. The Group should consist of between 5 and 10 members and include representatives of other non-Customs agencies involved in border processing and clearance and the private sector. The Working Group should be led by a project manager with overall responsibility for the conduct of the TRS project. The project manager should be a senior Customs and Excise Department manager with seniority and credibility within the CED. The team should also include a Customs systems and procedures specialist with extensive practical experience in HQ and regional offices (including the port of Sihanoukville), a research analyst, and an official with knowledge of statistical methods.

3.3 Undertake Baseline Study

The consultant will identify a sampling method to begin performance measurement and to ensure that all data collected is representative of Cambodia's trade patterns. Using the methodology described in 3.1, the Consultant and Working Group will establish a baseline comprehensive measure of the trade clearance process:

• Measure the arithmetic mean time between arrival of the goods in Cambodia and their release into the economy by a standardized system;
• estimate with some precision, the time required for each intervening event between arrival and release of goods, i.e. unloading, storage, presentation of the declaration, inspection, release, removal of goods, intervention by non-Customs agencies, etc;
• inform Cambodian Government officials in a precise manner, with proper statistical methods, of the time required for Customs release of goods. This information should be available by type of traffic (air, sea, road) and by regional or geographical location;
• Identify constraints affecting customs release, such as the granting of authorizations or permits, application of other laws, inspections by non-Customs agencies;
• Obtain a clear understanding of how the processing and clearance process functions in practice;
• Identify any corrective actions that might be necessary to streamline and improve the process; and
• Provide valid and reliable base line data for later comparison.

3.4 Develop Guidelines for Periodic Measurement

The Consultant will prepare guidelines for a simplified process that will allow period measurement of the clearance process to allow comparison with the baseline. The Working Group should prepare detailed instructions and guidelines covering the following:

• Aims and objectives of the study;
• Scope and methodology;
• Duration and timing of the study;
• Sampling size and sampling selection methodology;
• Responsibility for collection of data by respective parties;
• A list of definitions to ensure uniformity and consistency in implementation;
• Procedures to be followed;
• Persons to contact where clarifications are needed.

The Guidelines should identify the following:

• All processes and steps in the clearance chain (see attached process maps prepared by SMS consulting);
• All the documents required for the clearance process;
• Various data to be collected by whom and how;
• How the data is to be collated and evaluated; and
• Where the release times are to be captured.

The Working Group should ensure that all stakeholders are effectively informed of the objectives and purpose of the study and its potential benefit to all the agencies involved.

Deliverables and Reporting.

The consultant will assist the CED to establish the Working Group and oversee the development and conduct of the Study using the WCO Time Release Study methodology. He/she will also assist in the data collection and analysis phase of the project and oversee the preparation of the final report. The Consultant should oversee all four phases of the project:

• •  Phase 1 – Preparation of the Study;
• •  Phase II – Collection and recording of data;
• •  Phase III – Analysis of data and reporting of conclusions; and
• •  Phase IV – Development of a simplified methodology for later deployment as considered necessary by the Government of Cambodia.

Timetable

The consultant will be expected to mobilize to undertake the in-country research element of the contract within four weeks of signing the contract. The TRS Working Group should be formed in January 2005 and a first collection cycle commenced no later than the end of February 2005.

Consultant Qualifications

The Consultant should possess the following:

• Strong team building and inter-personal relations and communication skills;
• Awareness of relevant international standards and best practice approaches.
• Sound understanding of im
• port/export procedures, infrastructure and regulatory environment.