The Philippines has significantly improved its score in the 2019 United Nations (UN) Global Survey on Digital and Sustainable Trade Facilitation to 80.65% from 69.89% in the 2017 report.
In the Asia Pacific and East Asia, which consists of 46 economies under the survey, the Philippines is one of the highest scorers, tied with Turkey, and below 10 countries with higher scores such as Australia, Singapore, Japan, China, Azerbaijan, and New Zealand.
In the Association of Southeast Asian Nations (ASEAN), the Philippines is behind Singapore which has a 93.6% score, and Malaysia and Thailand each with 83%, but bests Indonesia which has an 80% score, Brunei 77%, Cambodia 71%, Vietnam 61%, Myanmar 60%, and Laos 59%.
The biennial report shows the Philippines having improved based on the following measures:
- implementing cross-border paperless trade, where its score went up to 55.56% from 33.33% in 2017;
- paperless trade to 77.78% from 70.37%; and
- formalities and transparency, both reaching 100% from 87.5% and 93.33%, respectively.
Institutional arrangement and cooperation, however, remained at 55.6%.
The third installment of the report (formerly known as the Global Survey on Trade Facilitation and Paperless Trade Implementation) was jointly conducted by all five UN regional commissions and covers 128 economies from eight regions. It involves 50 measures related to the World Trade Organization’s (WTO) Trade Facilitation Agreement (TFA), to paperless trade, and to the UN treaty on cross-border paperless trade in Asia and the Pacific.
Key focus areas
The survey had four key focus areas: General Trade Facilitation in relation to implementing selected measures under the WTO TFA; Digital Trade Facilitation regarding implementing innovative, technology-driven measures enabling the use and exchange of electronic trade data and documents; Sustainable Trade Facilitation with regards to measures facilitating trade for small and medium enterprises (SMEs), agricultural sector and women; and Trade Finance.
The survey results are seen to enable countries and development partners to better understand and monitor progress on trade facilitation, support evidence-based public policies, share best practices, and identify capacity building and technical assistance need.
According to the report, most countries have actively engaged in trade facilitation, resulting in an 8 percentage points increase in the global average compared to the 2017 survey. The survey, however, also suggests that “there is still significant room for improvement,” notably for cross-border paperless trade.
Moving forward, the report said “digitalization offers immense potential for improving trade facilitation and further reducing trade costs.”
Implementation levels
The 50 common measures are divided into three groups and nine subgroups, and countries are assessed as to whether these measures are fully implemented, partially implemented, pilot-stage implemented, or not implemented.
The first group, under General Trade Facilitation, includes the subgroups of transparency, formalities, institutional arrangement and cooperation, and transit facilitation.
The second group is Digital Trade Facilitation which covers the subgroups of paperless trade and cross-border paperless trade, while the third group, Sustainable Trade Facilitation, consists of the subgroups trade facilitation for SMEs, agricultural trade facilitation, and women in trade facilitation. For the latest report, some UN commissions added Finance Trade Facilitation as a pilot test.
Australia and South Korea were tied in first place, both with a 94.6% score, followed by Belgium, the Netherlands, Japan, and Singapore each having a 93.6% score.
Philippine performance
For the Philippines, most of the measures under General Trade Facilitation are already fully implemented, per the survey. These measures include:
- a national trade facilitation committee or similar body;
- publication of existing import-export regulations on the internet;
- advance publication/notification of new trade-related regulations before their implementation; and
- advance ruling on tariff classification and origin of imported goods.
Fully implemented measures also include:
- risk management;
- pre-arrival processing; independent appeal mechanism;
- separation of release from final determination of customs duties, taxes, fees and charges;
- expedited shipments; and
- acceptance of copies of original supporting documents required for import, export or transit formalities.
Partially implemented in 2017 but now fully implemented include Philippine stakeholders’ consultation on new draft regulations (prior to their finalization); establishment and publication of average release times; trade facilitation measures for authorized operators; and post-clearance audits.
Four measures under Paperless Trade Facilitation are fully implemented, including:
- an automated customs system;
- internet connection available to customs and other trade control agencies;
- electronic submission of customs declarations; and
- e-payment of customs duties and fees.
Partial implementation has been noted in the following areas:
- electronic single window system;
- electronic application and issuance of import and export permit;
- electronic submission of sea cargo manifests; and
- electronic submission of air cargo manifests.
The electronic application for customs refunds, which was previously not implemented, is now partially implemented, while the electronic application and issuance of preferential certificate of origin is still in the planning stage.
Most measures toward cross-border paperless trade are still partially implemented, including laws and regulations for electronic transactions; recognized certification authority; electronic exchange of sanitary and phytosanitary (SPS) certificate; and paperless collection of payment from a documentary letter of credit.
The electronic exchange of customs declaration and electronic exchange of certificate of origin are both on the planning stage.
Measures on border agency cooperation have not changed status since the last report in 2017. The national legislative framework and/or institutional arrangements for border agencies cooperation are still partially implemented, while delegating controls by government agencies to customs authorities is still not implemented. Aligning of working days and hours with neighboring countries at border crossings and aligning of formalities and procedures with neighboring countries at border crossings are still not available.
SME-related facilitation measures
The Philippines also partially implements trade-related information and other special measures for SMEs, while measures allowing SMEs to join in the Authorized Economic Operator scheme, have access to the Single Window, and participate in the national trade facilitation committee are not being implemented.
Fully implemented agriculture-related facilitation measures include implementation of national standards and accreditation bodies to facilitate compliance with SPS and special treatment for perishable goods. However, testing and laboratory facilities available to meet SPS of main trading partners and electronic application and issuance of SPS certificates are still partially being implemented.
On women-related facilitation measures, the trade facilitation policy/strategy that incorporates special consideration of female traders is not yet implemented, while trade facilitation measures aimed at female traders remain in the planning stage.
Lastly, on trade finance-related facilitation measures, only the variety of trade finances available is partially implemented while unknown is the status for the single window facilitates traders to access to finance and banks allowing electronic exchange of data between trading partners. – Roumina Pablo
