Facilitating Trade in the Association of Southeast Asian Nations

Annex A. About the OECD Trade Facilitation Indicators

The eleven TFIs are composed of several specific, precise, and fact-based variables related to existing administrative processes at the border and their implementation in practice (e.g. the average time between publication and entry into force of new or adjusted trade-related regulations, the proportion of trade transactions that can be processed in advance to the arrival of goods at the border, or the coverage of certified trader programmes). The indicators take values between zero and two, with two indicating the best trade facilitation policy environment which can be achieved.

The TFIs mirror the substantive provisions covered by Section I of the TFA, spanning TFA Article 1 (Publication and Availability of Information) through to Article 12 (Customs Co-operation). An additional OECD indicator going beyond the scope of the TFA has been added to capture elements of good governance and impartiality of border administrations.

The indicators can support policymakers in developed and developing countries alike to assess the state of their trade facilitation efforts, pinpoint challenges, and identify opportunities for progress.

The TFIs cover four main policy areas: (1) transparency and predictability; (2) automation and streamlining of trade-related documents and procedures; (3) border agency co-operation; (4) governance.

Transparency and predictability

The indicator TFI (A) Information availability covers the publication of customs and trade-related regulations and information, feedback mechanisms, and specific functions for businesses (dedicated webpages/portals, user manuals etc.) (Annex Table A A.1).

Table A A.1. Information availability: Measures

Measure ID	TFI A. Information availability
A1	Establishment of a national customs website
A2	Possibility to provide online feedback to Customs
A3	Publication of rate of duties
A4	Establishment of enquiry points
A5	Adjustment of enquiry points’ operating hours to commercial needs
A6	Timeliness of enquiry points
A7	Information on import and export procedures
A8	Required documentation easily accessible for downloading
A9	Information about procedures published in advance of entry into force
A10	Average time between publication and entry into force
A11	Publication of agreements with any country or countries relating to the above issues
A12	Publication of information on procedural rules for appeal
A13	Publication of decisions and examples of Customs classification
A14	Publication of necessary information on advance rulings
A15	Penalty provisions for breaches of import and export formalities published
A16	Applicable legislation published on Internet
A17	Publication of judicial decisions on Customs matters
A18	Dedicated interactive page for professional users/companies
A19	User manuals available online
A20	Quality/User friendliness of the research/help function of the Customs website
A21	Transparency of government policymaking

Source: OECD Trade Facilitation Indicators.

The indicator TFI (B) Involvement of the trade community covers structures, guidelines, and frameworks for consultations with stakeholders (Annex Table A A.2).

Table A A.2. Involvement of the trade community: Measures

Measure ID	TFI B. Involvement of the trade community
B1	Public consultations between traders and other interested parties and government
B2	General notice-and-comment framework procedures in place, applicable to trade and border issues
B3	Are there established guidelines and procedures in place, governing the public consultation process
B4	Targeted stakeholders
B5	Number of public consultations
B6	Drafts published prior to entry into force
B7	Public comments taken into account
B8	Communication of policy objectives

Source: OECD Trade Facilitation Indicators.

The indicator TFI (C) Advance rulings covers rules and processes applying to prior statements by the administration to requesting traders concerning the classification, origin, valuation method, etc., applied to specific goods (Annex Table A A.3).

Table A A.3. Advance rulings: Measures

Measure ID	TFI C. Advance rulings
C1	Issuance of binding advance rulings
C2	Number of advance ruling requests on tariff classification
C3	Number of advance ruling requests on origin
C4	Total number of advance ruling requests
C5	Length of time for which the advance ruling is valid (duration)
C6	Publication of the maximum time by which the advance ruling will be issued
C7	Maximum time by which the advance ruling will be issued
C8	Percentage of advance rulings issued within the maximum issuance time
C9	Information on advance rulings of significant general interest published
C10	Possibility to request a review of an advance ruling or its revocation / modification
C11	Refusal to issue or the revocation of advance rulings is motivated

Source: OECD Trade Facilitation Indicators.

The indicator TFI (D) Appeal procedures covers the possibility and modalities to appeal administrative decisions by border agencies (Annex Table A A.4).

Table A A.4. Appeal procedures: Measures

Measure ID	TFI D. Appeal procedures
D1	Is information on procedural rules for appeal publicly available
D2	Independent or higher level administrative and/or judicial appeal procedures available for customs decisions
D3	Timeliness of the appeal mechanism – time available for lodging and appeal
D4	Timeliness of the appeal mechanism – avoidance of undue delays
D5	Information available on the motives of the administration’s decisions
D6	Average percentage of appeals introduced by Customs or other border agencies that is resolved in favour of traders
D7	Average percentage of appeals introduced by traders that is resolved in favour of Customs or other border agencies
D8	Average number of administrative appeals per year
D9	Average number of judicial appeals per year
D10	Existence of time limit for deciding judicial appeals
D11	Time limit for deciding judicial appeals
D12	Efficiency of legal framework in challenging regulations
D13	Judicial independence

Source: OECD Trade Facilitation Indicators.

The indicator TFI (E) Fees and charges covers disciplines on the fees and charges imposed on imports and exports (Annex Table A A.5).

Table A A.5. Fees and charges: Measures

Measure ID	TFI E. Fees and charges
E1	Information published on fees and charges
E2	Evaluation of fees and charges
E3	Information on fees and charges all-inclusive
E4	Total number of fees collected
E5	Fees for answering enquiries and providing required forms and documents
E6	Fees and charges periodically reviewed to ensure they are still appropriate and relevant
E7	An adequate time period granted between the publication of new or amended fees and charges and their entry into force
E8	Fees for Customs services during normal working hours
E9	Implementation of penalty disciplines for the breach of customs laws, regulations or procedural requirements - transparency
E10	Implementation of penalty disciplines for the breach of customs laws, regulations or procedural requirements - proportionality
E11	Procedural guarantees on penalties
E12	Conflicts of interest in the assessment and collection of penalties and duties
E13	Is voluntary disclosure of the breach of customs regulation by the person responsible a mitigating factor when establishing penalties
E14	Diversity of fees and charges

Source: OECD Trade Facilitation Indicators.

Automating and streamlining trade-related documents and procedures

The indicator TFI (F) Documents covers the harmonisation and simplification of trade-related documents, in accordance with international standards (Annex Table A A.6).

Table A A.6. Documents: Measures

Measure ID	TFI F. Formalities - Documents
F1	Copies of documents accepted
F2	Percent of supporting documents required for import, export and transit formalities for which copies are accepted
F3	Copies accepted where another government agency already holds the original
F4	International Standards compliance
F5	Number of documents for import
F6	Number of documents for export
F7	Periodic review of documentation requirements
F8	Time to prepare documents for import (days)
F9	Time to prepare documents for export (days)

Source: OECD Trade Facilitation Indicators.

The indicator TFI (G) Automation covers aspects such as the electronic exchange of data and use of automated risk management (Annex Table A A.7).

Table A A.7. Automation: Measures

Measure ID	TFI G. Formalities - Automation
G1	Percent of import declarations cleared electronically
G2	Percent of export declarations cleared electronically
G3	Percent of import and export procedures that allow for electronic processing
G4	Pre-arrival processing supported by the possibility to lodge documents in advance in electronic format
G5	Import and export procedures allow for the electronic payment of duties, taxes, fees and charges (including inspections fees, licenses, permits, other fees) collected upon importation and exportation
G6	Electronic payment system integrated with the automated declaration/cargo processing systems
G7	Risk Management applied and operating in an automated environment
G8	Single Window supported by information technology
G9	IT Systems capable of accepting and exchanging data electronically
G10	Automated processing system includes functions allowing for the release of goods subject to conditions (i.e. guarantee)
G11	Digital certificates and signatures in place
G12	Automated processing for Customs declarations available full-time (24/7)
G13	Quality of telecommunications and IT

Source: OECD Trade Facilitation Indicators.

The indicator TFI (H) Procedures covers aspects such as the streamlining of border control (inspections, clearance), implementation of Single Windows for trade, or certified trader programmes (Annex Table A A.8).

Table A A.8. Streamlining of procedures: Measures

Measure ID	TFI H. Formalities - Procedures
H1	Single Window
H2	Publication of Average Release Times
H3	Average clearance time
H4	Procedures allowing for the pre-arrival processing of goods
H5	Percentage of pre-arrival processing
H6	Percent of goods undergoing physical inspections
H7	Perishable goods treated differently than non-perishable goods with regards to physical inspections - regarding timeliness
H8	Percentage of physical inspections for perishable goods
H9	Perishable goods treated differently than non-perishable goods with regards to physical inspections- storage conditions
H10	Release of goods separated from final determination and payment of Customs duties
H11	Percent of goods released prior to final determination and payment of Customs duties, taxes, fees and charges
H12	Percentage of releases for perishable goods prior to final determination and payment of Customs duties, taxes, fees and charges
H13	Perishable goods treated differently than non-perishable goods concerning the separation of release from clearance
H14	Customs controls supported by a risk management system allowing risks to be assessed through appropriate selectivity criteria
H15	Other border controls supported by a risk management system
H16	Compliance with customs and other related laws and regulations supported by post-clearance audits (PCAs)
H17	Percentage of Post-Clearance Audits (PCAs) carried out
H18	Establishment of standard policies and procedures to guide PCAs
H19	Use of pre-shipment inspections required on Customs matters
H20	Possibility to provide additional trade facilitation measures to operators meeting specified criteria (authorised operators)
H21	Transparency of the criteria for qualifying as an Authorised Operator and the procedures for submission and review of applications for AO status
H22	Percentage of Authorised Operators against the total number of traders
H23	Percentage of SMEs in the total number of Authorised Operators
H24	Annual percentage of trade volume handled by Authorised Operators
H25	Time necessary on average to obtain Authorised Operator certification
H26	Benefits provided for Authorised Operators
H27	Adjustment of working hours of Customs personnel to commercial needs
H28	Requirement for clearance by a third-party customs broker
H29	Expedited release procedures
H30	Procedures for the re-export of rejected goods
H31	Temporary admission of goods and inward and outward processing
H32	Efficiency of Customs and delivery of imports
H33	Efficiency of Customs and delivery of exports
H34	Simplification of procedures (time)
H35	Simplification of procedures (cost)
H36	Adjustment of working hours of Customs personnel to commercial needs
H37	Requirement for clearance by a third-party customs broker
H38	Expedited release procedures
H39	Procedures for the re-export of rejected goods
H40	Temporary admission of goods and inward and outward processing
H41	Efficiency of Customs and delivery of imports
H42	Efficiency of Customs and delivery of exports
H43	Simplification of procedures (time)
H44	Simplification of procedures (cost)

Source: OECD Trade Facilitation Indicators.

Border agency co-operation

The indicator TFI (I) Internal border agency co-operation covers institutional frameworks, mechanisms, and IT systems for domestic co-operation between various border agencies (Annex Table A A.9).

Table A A.9. Internal border agency co-operation: Measures

Measure ID	TFI I. Internal border agency co-operation
I1	General co‑operation and co-ordination of the activities of domestic agencies involved in the management of cross border trade, with a view to improving border control efficiency and facilitating trade
I2	Institutionalised mechanism to support inter-agency coordination
I3	Domestic inter-agency coordination mechanisms meet regularly to develop strategy and oversee implementation of border agency cooperation
I4	Domestic coordination / harmonisation of data requirements and documentary controls among agencies involved in the management of cross border trade
I5	Interconnected or shared computer systems and real time availability of pertinent data among domestic agencies involved in the management of cross border trade
I6	Domestic coordination of inspections among agencies involved in the management of cross border trade
I7	Shared results of inspections and controls among agencies involved in the management of cross border trade with a view to improving border control efficiency and facilitating trade
I8	Control delegation at the national level
I9	Coordinated / shared risk management mechanisms
I10	Authorised Operators programmes
I11	Coordinated / shared infrastructure and equipment use

Source: OECD Trade Facilitation Indicators.

The indicator TFI (J) External border agency co-operation covers institutional frameworks, mechanisms, and IT systems for co-operation between various border agencies with neighbouring economies and other trading partners (Annex Table A A.10).

Table A A.10. External border agency co-operation: Measures

Measure ID	TFI J. External border agency co-operation
J1	Cross-border co‑operation and co-ordination of the activities of agencies involved in the management of cross border trade, with a view to improving border control efficiency and facilitating trade
J2	Alignment of working days and hours with neighbouring countries at land borders where applicable
J3	Alignment of procedures and formalities with neighbouring countries at borders where applicable
J4	Cross-border coordination / harmonisation of data requirements and documentary controls
J5	Cross-border coordination / harmonisation of the different computer systems
J6	Risk management co‑operation
J7	Systematic sharing of control results among neighbouring countries at border crossings with a view to improving the risk analysis as well as the efficiency of border controls and to facilitating licit trade
J8	Development and sharing of common facilities with neighbouring countries at border crossings, where applicable
J9	Joint controls with neighbouring countries at border crossings, where applicable
J10	Mutual Recognition Agreements/Arrangements on Authorised Operators (AOs), where applicable
J11	Exchange of staff and training programmes at the international level

Source: OECD Trade Facilitation Indicators.

Governance and impartiality

The indicator TFI (K) Governance and impartiality covers transparency of customs structures and functions, as well as accountability and ethics policies (Annex Table A A.11).

Table A A.11. Governance and impartiality: Measures

Measure ID	TFI K. Governance and impartiality
K1	Transparent structures and functions in the border agencies clearly established
K2	Ethics policy applied to border agencies
K3	Code of Conduct established in border agencies
K4	Effective sanctions against misconduct of border agency staff
K5	Efficient internal communication about policies and procedures of agencies involved in the border process
K6	Internal audit mechanism established in the various agencies involved in the border process
K7	Non-compliance penalties for border agency staff transparent and proportional
K8	Clear provisions for the financing of the Customs administration
K9	Publication of an Annual Customs Report
K10	Establishment of a national customs website

Source: OECD Trade Facilitation Indicators.

The approach taken to scoring in the TFIs is to transform qualitative regulatory information into a multiple binary scheme where the top score (2) corresponds to the best performance: variables representing measures within each of the 11 aggregate TFIs are coded with 0, 1, or 2. These seek to reflect not only the regulatory framework in the concerned countries but also delve – to the extent possible – into the state of implementation of various trade facilitation measures.

Where variables depend on numerical answers, these are broken down on thresholds to which 0/1/2 scores are applied. A scoring system that assigns discrete numerical values according to some metric of performance requires determining thresholds for what is best, worst or in between. In most cases, there are “natural” thresholds, as for example for a variable such as the “Establishment of a national Customs website”. Thus, a country without a customs website will be assigned a score of 0; a country with a customs website will be assigned 1; and a country with a customs website which makes available a minimum set of information related to import or export procedures in one of the official WTO languages will be assigned a 2. In the cases where no natural thresholds can be identified, in order to reconcile the complexity of trade facilitation policies and implementation with the multiple binary scoring scheme, non-binary measures are broken down to multiple thresholds: if the variable is numerical in nature (e.g., percentage of trade transactions covered by pre-arrival processing; percentage of post-clearance audits; percentage of physical inspections; share of traders covered by certified trader programmes etc.), the score can be determined by its percentile rank (e.g. below the 30th percentile of the country sample, between the 30th and 70th percentiles, above the 70th percentile of the country sample).

The TFIs are derived by aggregating variables across each of the 11 composite areas. There are no hierarchies between variables. Within one aggregate indicator, variables are given equal weights. The TFIs represent a compromise between the comprehensive handling of the issues under review and the risk of including in the set certain variables for which the country coverage is incomplete.