International Trade Facilitation

There are a number of definitions of trade facilitation. In the past. WTO (1998) defined it as the simplification and harmonization of international trade procedures, where trade procedures are the activities, practices and formalities involved in collecting, presenting, communicating and processing data required for the movement of goods in international trade. However, more definitions have emerged over the years. In a narrow sense, trade facilitation indicates a reduction or streamlining of the logistics of moving goods through ports or the documentation requirements at a customs post at the border, however more recently the definition has broadened to include the environment in which trade transactions take place where domestic policies

Therefore, trade facilitation has four interdependent themes, as described by Grainger (2010), which are (i) the simplification and harmonization of applicable rules and procedures, (ii) the modernization of trade systems and the sharing and lodging of information between business and government stakeholders, (iii) the administration and management of trade and customs procedures and (iv) the institutional mechanisms to safeguard effective implementation of trade facilitation principles and the ongoing commitment to reform.

United Nations Economic Commission for Europe (UNECE) likewise took in safeguarding in defining trade facilitation, which it explained ⁶the primary goal of trade facilitation is to help make trade across borders (imports and exports) faster, cheaper and more predictable, whilst ensuring its safety and security.

⁵UNECE. Trade Facilitation: The challenges for Growth and Development. (Geneva: United Nations,

Notwithstanding the concept of trade facilitation benefits countries very much, there are challenges and difficulties to implement it. Grainger (2007) described any regulatory reform accommodating trade facilitation concepts will take time. Issues identified at the local level (within the context of day-to-day port operations), need to be escalated to national level (national customs HQ), regional level (regional bodies like ASEAN / EU) and international policy level (WCO, UNECE and