Draft

1 st Draft 8/11/04

Kingdom of Cambodia :
Review and Rationalisation of Trade Documentary Requirements

  Terms of Reference

I.  Background and context

The Prime Minister and Senior Minister, Minister of Commerce, 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 accordingly established Special Inter-ministerial Task Force on Trade Facilitation and Investment Climate (SITF) led by the Minister of Economy and Finance and the Minister of Commerce, and charged with preparing and monitoring trade facilitation and competitiveness activities. This Task Force, which was recently converted to a Permanent Steering Committee on Private Sector Development, 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.

II.  Issues

Currently over 45 steps/documents are required for an import transaction, each of which adds time and cost to the trade facilitation process. As part of its effort to enhance sharing of information, to reduce cost and to pave the way for the eventual automation of border management processes, Cambodia intends to implement a single form for the declaration of import and export consignments. The form will replace the two separate forms used by Customs and Camcontrol. EU Multrap has already brought out to Cambodia a short-term expert, Mr Francisco Pelecha, to prepare an initial Inception Report. (September 22 to 18 October 2004). The Report entitled "Trade Documentation Simplification" concludes, inter alia, that the process to implement a Single Customs Document (also known as a Single Administrative Document in Europe ) will not imply important changes to the current system, provided that the Camcontrol declaration will be eliminated. As a matter of fact, the present Custom Declaration contains all information provided in the Single Customs Document in other countries, and, as such, could be considered a Single Administrative Document.

While introduction of the single declaration form is a positive step, it needs to be accompanied by a detailed review and rationalization of the many additional/supporting forms and documents currently required by the agencies involved. It is clear that the current trade facilitation process in Cambodia contains numerous steps that provide little or no value in facilitating trade. The World Bank Study "Seizing the Global Opportunity: Investment Climate Assessment & Reform Strategy"states that 45 documents are needed to export a shipment (page 87 of the Report). A flow chart of the documentary requirements has been prepared. It is now necessary to conduct an exhaustive study to review each single document in this flow chart and identify where the flow of information is not efficient (i.e. the same information is asked twice or is not necessary) and to see whether any documents can be eliminated or merged with other documents. The ultimate objective is to simplify the present system with a view to pave the way for the implementation of the 12 Points Reform Agenda (including customs automation and setting up of the Single-Window.)

There will be some urgency in concluding this analysis. The work being undertaken by EU Multrap under this project needs to be completed by 15 February 2005 as the implementation of the 12 Points Agenda will be contingent on the results based on the study being undertaken pursuant to this project.

III.  Scope of Work

The study will have two main components:

Component 1 :

The consultant/s will:

• Undertake a detailed review of all the documents currently required to process international trade transactions in Cambodia , and the information/data on shipments and consignments required to support different functions involved in international trade including technical control, sanitary, phytosanitary and other health-related controls, custom declaration, cargo handling, import/export authorization, security and other functions. In this regard the Consultant will be provided with detailed flow charts of the existing import and export processes.
• Identify the minimal information and documentary requirements necessary to meet the government's legitimate regulatory and statistical needs.
• Prepare a detailed proposal on how to eliminate those documents that are considered unnecessary, duplicative or redundant or where the relevant information is already held by government authorities. In preparing the proposal the consultant/s should be cognizant of the need to minimize documentary requirements and to ensure traders only need to provide relevant information once to government. The review should take into consideration the conclusions of the previous EU Multrap study, in particular the need to eliminate the CAMCONTROL declaration in view of having a Single Administrative Document (i.e. the present Custom Declaration).
• In preparing the proposed revised documentation system, the Consultant will take into consideration other reforms being prepared or intended, which may eliminate duplicative inspections and introduce selectivity in inspections based on risk management approaches.

Component 2 :

The consultant/s will:

• Identify, utilizing existing predominately manual systems, the best means of ensuring timely submission of relevant import/export information to government and the most practical and cost effective means of sharing the information amongst the various government agencies involved in the border management process. At a minimum, this should include Customs and Excise Department, the Port Authority, Ministry of Commerce, Ministry of Industry and Camcontrol, banks, transporters, brokers, freight forwarders.
• To carry out these tasks, the consultant/swill work closely with the Government's Trade Facilitation Reform Team and other key stakeholders. The consultant/s will also examine the work already untaken by SMS consulting .

IV.Reporting Requirements  

The assignment is expected to be a consultative process working with the Counterpart team. In order to ensure consistency with the expectations of the Reform Team, within two weeks of initiating the assignment, the consultant will provide an inception report confirming project understandings and laying out the process by which documentary processes would be streamlined.

The consultant will provide a draft report providing a consolidated and streamlined set of minimum document(s) and their rationale, and a diagram of information flows supporting the streamlined process across agencies. At the final report stage, this will be presented as a manual on the revised system.

The final report will also identify the documents no longer necessary among those currently used in the trade facilitation process, and any legal and regulatory reforms necessary to implement the recommendations. This will serve as a change management guide to the Reform Team.

Formal project documentation shall be provided in both English and Khmer (both electronic form and twenty hard copies).

V. Assessment Arrangements

5.1 Delivery Period

The consultant will commence his assignment on 29 November 2004 and terminate on 15 February 2005 (59 working days). A draft report (with recommendations) will be presented to the Trade Facilitation Sub-Steering Committee by 31 December 2004.

The final report and recommendations will be presented to the Trade Facilitation Sub-Steering Committee by 15 February 2005.

The location of the mission is Phnom Penh , Cambodia

5.2 Assessment Supervision

The STE will work closely with the Team Leader of EU Multrap, Mr Rayman Perera, and also the EC Delegation in the Kingdom of Cambodia .

The STE will present to Mr Perera [by 10 December 2004] in electronic form a Preliminary Report setting out the Preliminary results and recommendations.

The STE will present to Mr Perera [by 1 February 2005] in electronic form the final Report of the Review and Rationalization of Trade Documentary Requirements mandated by this Terms of Reference which will deal in detail with the matters referred above.

EU Multrap will ensure that 20 hard copies (in English and Khmer) of the final Report will be available.

EU Multrap will report both preliminary and final results to the Trade Facilitation Sub-Steering Committee .

VI.  Qualification of Consultant

The STE will be a senior expert in trade facilitation (at least 10 years experience) with extensive experience in simplifying export procedures.

An advanced degree in economics as well as a background in customs procedures would be an advantage.

The STE must also have an excellent command of English (both spoken and written) and must have a high degree of computer literacy.

Experience in the region would be an advantage