• Title, Summary, Keyword: Trade Facilitation

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Trade Facilitation Provisions in Regional Trade Agreements: Discriminatory or Non-discriminatory?

  • Park, Innwon;Park, Soonchan
    • East Asian Economic Review
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    • v.20 no.4
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    • pp.447-467
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    • 2016
  • The RTAs with trade facilitation provisions have been expected to generate a larger net trade-creating effect and complement the discriminatory feature of RTAs but have yet to be empirically proven. Recognizing the limitations of existing studies, we conducted a quantitative analysis on the effects of RTAs with and without trade facilitation provisions on both intra- and extra-bloc trade by using a modified gravity equation. We applied the Poisson Pseudo-Maximum Likelihood (PPML) estimation with time varying exporter and importer fixed effect method to panel data consisting of 45,770 country pairs covering 170 countries for 2000-2010. We found that the trade facilitation provisions in existing RTAs are non-discriminatory by generating more intra- and extra-bloc trade in general. In particular, we found that the trade effects of RTAs in the APEC region are much stronger than the general case covering all RTAs in the world. In addition, as we control the trade effect of a country's trade facilitation, which is ranked by the World Bank's logistic performance index, RTAs consisting of trade facilitation provisions are discriminatory for trade in final goods and non-discriminatory for trade in intermediate goods. Overall, we endeavor to "explain," instead of "hypothesizing," why most of the recent RTAs contain trade facilitation provisions, especially in light of the deepening regional interdependence through trade in parts and components under global value chains and support the necessity of multilateralizing RTAs by implementing non-discriminatory trade facilitation provisions.

The Impact of Trade Facilitation on the Extensive and Intensive Margins of Trade: An Application for Developing Countries

  • Lee, Hyo-Young;Kim, Chong-Sup
    • East Asian Economic Review
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    • v.16 no.1
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    • pp.67-96
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    • 2012
  • Previous literature has looked merely into the effect of trade facilitation on aggregate trade, or analyzed trade growth using the extensive and intensive margins. This paper blends these two lines of research for a detailed analysis of the impact of trade facilitation on trade by using highly disaggregated trade data and a more composite index for measuring trade facilitation, also taking into account the export sectors and income levels of countries. As a result, this paper finds that developing countries with higher trade facilitation levels export a wider range of products, especially primary goods. While trade facilitation levels do not have a statistically significant association with trade at the intensive margin in general, further analysis shows that the impact of advanced trade facilitation is the largest for lower middle-income countries in primary goods trade at the intensive margin, and the largest for upper middle-income countries in manufactured goods trade at the intensive margin. More importantly, our policy simulation results suggest that trade facilitation-related policy reforms enable developing countries to benefit from increased trade in manufactured goods at the extensive margin.

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Trade Facilitation for Promotion of e-Business (e-비즈니스의 활성화를 위한 무역원활화추진)

  • Kim, Sun-Ok
    • International Commerce and Information Review
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    • v.7 no.2
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    • pp.163-181
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    • 2005
  • The purpose of this paper is to review the major issues of trade facilitation that have been discussing in relevant international organization such as WTO, WCO, UN/ECE, and UNCTAD In recent years the term, trade facilitation, has become extremely popular and, therefore, applied to an ever-growing number of activities. Trade Facilitation encompasses the simplification, standardization, harmonization and elimination of the procedures, data requirements and administration involved in an international trade transaction. The facilitation of trade procedures is seen by all major international business as vital for economic development. Several factors are fuelling the need for trade facilitation of which two are the globalization of international trade and the rapid IT-development. Another important factor includes increased economic integration by an explosion of regional and bilateral free-trade agreement that often feature complex customs requirements. Technological progress has also introduced faster and cheaper forms of transportation and transportation management techniques, such as the increased use of e-business and JIT. The Internet is also fragmenting containers of goods that could have been custom cleared on a single entry into dozens of individual shipments that each require separate customs documents and clearance procedures. This creates a challenge for express couriers who anticipate exponential growth in small shipments by individual consumers, as compared to shipment by wholesalers or retailers. These consumers expect goods to be cleared immediately. It is no wonder that express couriers are actively promoting, and participating in the trade facilitation agenda.

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A Study on Trade Facilitation Agreement and Rolls of e-Trade (무역원활화협정과 전자무역의 역할에 관한 연구)

  • Kim, Jang-Ho;Choi, Kwan-Seon
    • International Commerce and Information Review
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    • v.17 no.1
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    • pp.29-55
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    • 2015
  • The purpose of this study is to look at the role of e-trade for trade facilitation, which was the conclusion of November 27, 2014 which is based on the main discussions and content of the WTO. This study examines the data collected based on previous research and literature data, and it proposed a policy direction using it. Trade facilitation agreement also contains a number of e-Trade related information and internet-based electronic documents can be sent very quick flow of information and it can save time and cost concerning parties. e-Trade is a very important basement and it is needed to continually develop and exchange for trade facilitation. To make easy trade facilitation, e-Trade is one of the means to achieve competitiveness of companies and countries under these circumstances. The conclusion of this study shows that it is necessary to steadily develop e-trade technologies for trade facilitation and to continuously exchange e-trade system for easy customs services in concerining countries to maximize these effects.

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United Nations Framework and Recommendations for International Electronic Business Facilitation

  • Dollein, Richard
    • International journal of advanced smart convergence
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    • v.2 no.2
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    • pp.43-47
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    • 2013
  • Within the United Nations framework of the Economic and Social Council, the United Nations Economic Commission for Europe (UNECE) serves as the focal point for trade facilitation recommendations and electronic business standards, covering both commercial and government business processes that can foster growth in international trade and related services. Accordingly United Nations Centre for Trade Facilitation and Electronic Business (UN/CEFACT) was established, as a subsidiary, intergovernmental body of the UNECE Committee on Trade, mandated to develop a program of work of global relevance to achieve improved worldwide coordination and cooperation in these areas. Domestic development and distribution of electronic documents to be conformed to international standards, it is enough to have the role of international activities continue to supply part of the domestic industry and the trends in participation and international standard.

A Study on the Simplification of Customs Procedures and the Protection Measures for the Importer's Interests through the Utilization of e-D/O (세관의 통관절차 간소화 조치에 따른 수입화물의 불법반출을 예방하기 위한 e-D/O 활용지원 방안)

  • Park, Seung-Lak
    • International Commerce and Information Review
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    • v.6 no.3
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    • pp.203-224
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    • 2004
  • The purpose of this study is to review and analyze the protection measures for the importer's interests through the utilization of electronic delivery order(e-D/O) with the implementation of trade facilitation measures such as the simplification of customs procedures by the Korea Customs Service. The Korea Customs Service has been introducing several custom facilitation measures through the use of EDI system in the export and import processes. Korea has also already achieved a comparable level of sophistication in trade automation and custom simplification field. However, the full benefits of the trade automation and custom simplification measures have not yet achieved through the frequent illegal delivery of the imported goods in the bonded areas. Therefore, it is argued in this study that the introduction and the full utilization of e-D/O would help to reap the trade automation and custom simplification measures in Korea. In conclusion, it is emphasized that it would be very crucial for the Korean government to introduce the trusted repository for distribution of the electronic trade-related documents and the construction of the one stop single window platform for the trade and customs facilitation.

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Introduction Plans of Japanese AEO System for the Trade Security and Trade Facilitation (무역의 안전과 원활화를 위한 일본기업의 AEO 제도 도입방안에 관한 연구)

  • Woo, Sung-Koo;Kim, Jae-Myeong
    • The Korean Research Institute of International Commerce and Law
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    • v.47
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    • pp.263-298
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    • 2010
  • The global trading system is vulnerable to terrorist exploitation while the international trade is an essential element for the economic development. Customs has a unique role in the international trade to provide increased security while ensuring facilitation of the legitimate flow of goods and the role of Customs has become more and more indispensable these days. In response to this trend, the World Customs Organization(WCO), the organization of more than 170 Customs administrations all over the world, adopted an international framework("SAFE Framework") in 2005, which includes the Authorized Economic Operator(AEO) concept, whereby a party involved in the international movement of goods would be approved by Customs as complying with the supply chain security standards, and given benefits, such as simplified Customs procedure and less Customs intervention. In this stream, the Japanese government has developed and promoted AEO Program in close cooperation with the business sector, aiming at ensuring security while facilitating legitimate trade. For that purpose, Japan Customs, as a main entity in the field of international trade, has developed comprehensive AEO program with combination of programs for importers, exporters, warehouse operators, Customs brokers and logistics operators, such as forwarders and carriers, which are consistent with the "SAFE Framework" developed by the WCO. The purpose of this paper aims to analyse the introduction plans of AEO program for the trade security and trade facilitation with Japanese AEO system.

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A Free Trade Area of the Asia Pacific (FTAAP): Is It Desirable?

  • Kim, Sangkyom;Park, Innwon;Park, Soonchan
    • East Asian Economic Review
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    • v.17 no.1
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    • pp.3-25
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    • 2013
  • This paper evaluates whether the proposed FTAAP is a desirable policy option for APEC member economies and the world economy. More specifically, this paper qualitatively investigates whether the FTAAP satisfies conditions for a trade bloc to generate positive and sufficient net trade creation effect. In addition, this paper estimates the likely impact of the FTAAP by using a CGE model analysis. From the qualitative analysis based on statistical data, this paper strongly argues that the FTAAP can be a desirable regional trade bloc able to generate positive gains from freer trade. From the ex-ante scenario analysis using both static and capital accumulation CGE Models, this paper concludes that the FTAAP has great potential for improving welfare of participating APEC economies and will boost economic growth in the region. In particular, the FTAAP would be even better if it can be linked with liberalization of trade in services and enhanced trade facilitation.

A Study on the Effective Use of Time Release Study for Trade Facilitation (무역원활화를 위한 물품반출소요시간 연구(TRS)의 효과적 활용)

  • Song, Seon-Uk
    • International Commerce and Information Review
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    • v.15 no.4
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    • pp.267-286
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    • 2013
  • The WCO Time Release Study (TRS) is a unique tool and method for measuring the actual performance of Customs activities. The ultimate aim of TRS is to improve the performance of the function being measured. To be more specific, TRS is used for identifying bottlenecks in the international supply chain and/or constraints affecting Customs release, assessing newly introduced and modified techniques, procedures, technologies and infrastructure, or administrative changes, establishing baseline trade facilitation performance measurement, identifying opportunities for trade facilitation improvements and estimating the country's approximate comparative position as a benchmark tool. The effective utilization methods of TRS for trade facilitation in Korea Customs Services are as follows ; Firstly, it is necessary to make every efforts to identify bottlenecks in border-related procedures and improve their procedures for continuous and more improved trade facilitation. Secondly, it is necessary to optimize and simplify export-related procedures using the TRS in exportation for efficiency of total international supply chain. Thirdly, it is necessary to make coordinated border management with main trading partners. Lastly, it is necessary to enhance Korea's international status to support underdeveloped countries in the field of trade procedures.

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A Study on the Operational Problems of e-Trade Document Repositary (전자무역문서보관소(電子貿易文書保管所) 운영상(運營上)의 문제점(問題點)에 관한 연구(硏究))

  • Ahn, Byung-Soo;Lim, Sung-Chul
    • International Commerce and Information Review
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    • v.8 no.1
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    • pp.125-141
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    • 2006
  • It is no unnecessary to tell the importance of foreign trade in Korea economics. Nevertheless, government's direct support is impossible owing to WTO's regulation. Accordingly, government have brought focus into trade facilitation as paperless trade. e-Trade document repositary building by government's budget and private sector's cooperation is a part of e-Trade platform and necessary function in connection with relay and certification of e-Trade document. This study examined the estimated operational problems of e-Trade document repositary as compared Licensed Electronic Document Repositary. Firstly, the operator of e-Trade document repositary undertake multiple role and function as Licensed Certification Authorities(e-sign Act), Licensed Electronic Document Repositary(Framework Act on Electronic Transaction) etc. Secondly, sufficient levy that meet operating cost of the e-trade document is the key point of e-Trade document repositary's success, because additional budget invest in that operation is too hard to do. Thirdly, the operator of the e-Trade document repositary have to keep fairness, objectivity and transparency because the operational right is exclusive.

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