May, 2020

Corona Response – Call for Applications from African Countries

Digitizing Trade – A new project by the German Alliance for Trade Facilitation.

We are looking for interested partner countries!

 

The Project

The German Alliance for Trade Facilitation starts a new project called “Digitizing Trade” as one response to the global corona pandemic. Digitization of customs procedures is now more urgent than ever before. It will lead to more efficient trade through pre-arrival and pre-departure processing. Businesses provide digital cargo information on goods prior to arrival and departure to border agencies. This allows for an early risk assessment by customs and more targeted controls.

The Benefits  

  • Increased public revenue driven by greater transparency and compliance in the supply chains.
  • Reduction in the time and cost of border formalities for businesses and governments.
  • Faster and more secure import and export processes – also for e-commerce.
  • Improved conditions for companies to access regional and global value chains – generating more trade, investment and jobs.

Reference Projects 

We are successfully implementing similar projects all over the world. As a reference, please see our success story on a concluded project in Montenegro, Europe.

Application 

Interested African government institutions are encouraged to submit a letter of intent to jointly explore a project to tradefacilitation@giz.de (one page, signed).

Background Information

The corona pandemic will have tremendous consequences for global trade. According to the World Trade Organization (WTO) global trade in goods will collapse by 13% to 32% in 2020, and the rise of costs could be an equivalent to an increase of 3.4% global tariff.
Trade facilitation measures are now more important than ever before. They can range from pre-arrival processing to simplification and harmonisation of trade documents or a targeted risk management system. Trade facilitation is important to manage the crisis since it can revive trade, promote exports, and support reintegration into interrupted supply chains.
These measures are based on the “Trade Facilitation Agreement” of the “World Trade Organization” (WTO) and the African Continental Free Trade Area” (AfCFTA) (see Article 7.1 (Pre-arrival processing) and Article 7.3 (Separation of release from final determination of customs duties, taxes, fees, and charges)).

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