Jordan Customs Streamlines Trade with Wcobacked Clearance Reforms

Amman, Jordan – In an increasingly complex and competitive global trade environment, efficient customs clearance has become crucial for national competitiveness. The Jordan Customs Department (JCD) recognizes this imperative and is actively implementing measures to streamline clearance procedures, reduce cargo dwell times, and enhance trade facilitation to stimulate economic growth.

Recently, with support from the World Customs Organization (WCO), JCD successfully conducted a workshop focused on expedited cargo clearance, marking a significant step in Jordan's trade efficiency improvements.

The Growing Importance of Trade Facilitation

In today's interconnected global economy, international trade serves as a vital engine for economic growth, job creation, and improved living standards. However, cumbersome clearance procedures, prolonged waiting times, and high trade costs often hinder international commerce and weaken business competitiveness. Consequently, trade facilitation has become a priority for governments and international organizations worldwide.

Trade facilitation refers to the simplification, harmonization, and standardization of customs procedures to reduce trade costs and improve efficiency, thereby promoting international trade development. The implementation of the World Trade Organization's (WTO) Trade Facilitation Agreement (TFA) marked a new era in global trade facilitation, requiring members to adopt measures that streamline customs processes, enhance transparency, and strengthen cooperation to facilitate trade flows.

Jordan Customs: A Pioneer in Trade Facilitation

The Jordan Customs Department has consistently prioritized trade facilitation, implementing numerous reforms to simplify clearance processes, reduce trade costs, and improve efficiency. JCD recognizes that efficient clearance procedures not only promote trade growth but also attract foreign investment, create employment opportunities, and enhance living standards.

Recent achievements by JCD include:

Simplified customs procedures: JCD has streamlined documentation requirements, reduced approval steps, and shortened clearance times.

E-government implementation: The department has promoted electronic declaration, payment, and release systems to improve efficiency and reduce manual intervention.

Enhanced risk management: JCD has strengthened risk assessment capabilities to improve inspection accuracy and efficiency while minimizing disruptions to legitimate trade.

International cooperation: The department actively participates in global customs affairs and collaborates with counterparts worldwide to combat smuggling and fraud.

WCO Support Accelerates Jordan's Trade Facilitation

The World Customs Organization, as the global authority on customs matters, promotes international cooperation and efficiency to facilitate trade. WCO implements numerous trade facilitation programs worldwide, providing technical assistance and capacity-building support to members.

Jordan Customs maintains close cooperation with WCO, which has provided substantial technical support to enhance trade facilitation. The recent expedited clearance workshop represents another milestone in this productive partnership.

Expedited Clearance Workshop: Optimizing Processes

Held from May 14-18, 2023 at Jordan's Amman Regional Training Center, the workshop was supported by WCO under the Global Trade Facilitation Programme (GTFP), with funding from Switzerland's State Secretariat for Economic Affairs (SECO).

Fifteen Jordanian customs officials collaborated with WCO experts to review existing expedited clearance procedures and make necessary revisions. The workshop focused on aligning Jordan's draft Standard Operating Procedures (SOP) for expedited clearance with WTO TFA Article 7.8 and WCO's Immediate Release Guidelines (IRG).

Key workshop components included:

Concepts and principles of expedited clearance: The session introduced fundamental concepts and emphasized their importance for trade facilitation.

WTO TFA and WCO IRG analysis: Detailed examination provided guidance for developing Jordan's SOP.

Evaluation of current procedures: Participants assessed existing processes to identify strengths and weaknesses.

SOP refinement: The draft SOP underwent thorough discussion and revision to ensure compliance with international standards and Jordan's operational context.

Risk management applications: Discussions emphasized balancing rapid release with effective risk identification and mitigation.

Technology integration: Participants explored how information technology could enhance efficiency and transparency.

New SOP Significance: Standardizing Processes

The finalized SOP will standardize expedited release procedures for air cargo imports, particularly benefiting express shipments, low-value goods, e-commerce items, and time-sensitive commodities requiring immediate clearance.

The SOP clearly defines applicable scope, conditions, and procedures to ensure more efficient, transparent, and predictable clearance processes. These improvements should reduce trade costs, enhance efficiency, attract investment, create jobs, and improve living standards.

GTFP Project: Building Capacity

Initiated in May 2022, the SECO-WCO GTFP project employs a "light-touch" approach to strengthen JCD's capacity for rapid air cargo release while maintaining appropriate risk management and regulatory oversight.

Project activities assist JCD in:

Process optimization: The workshop represents a key step in operational improvements, with the new SOP ensuring more efficient procedures.

Risk management enhancement: Strengthened capabilities enable rapid release while effectively addressing security concerns.

International collaboration: The project facilitates knowledge exchange with WCO and other members to adopt global best practices.

Economic development: Expedited clearance reduces trade costs and improves efficiency to stimulate Jordan's economy.

Expedited Clearance: Core to Trade Facilitation

In today's globalized business environment, rapid clearance is essential for international trade, offering multiple benefits:

Reduced delivery times: Faster clearance enables quicker cargo arrival, improving customer satisfaction.

Lower inventory costs: Reduced transit times decrease inventory holding costs.

Enhanced competitiveness: Businesses can respond more quickly to market demands.

Investment attraction: Efficient clearance improves a nation's investment appeal.

JCD Director's Vision: Continuous Improvement

The Director of Jordan Customs expressed appreciation for WCO support, stating: "This workshop provided valuable opportunities to optimize our expedited clearance processes. We will diligently implement the outcomes to advance trade facilitation and contribute to Jordan's economic development."

The Director emphasized JCD's ongoing commitment to trade facilitation through procedural reforms, cost reduction, and efficiency improvements. Jordan will continue participating in international customs cooperation to combat illicit trade activities.

Future Outlook: Promising Prospects

With SOP implementation and continued GTFP project progress, Jordan's trade facilitation standards are expected to improve significantly, reducing costs, enhancing efficiency, and stimulating economic growth. Jordan's experience may also provide valuable lessons for other developing nations pursuing trade facilitation.

The combined efforts of Jordan Customs and WCO support suggest bright prospects for Jordan's trade environment. In coming years, Jordan may emerge as a regional leader in trade facilitation with an attractive business climate that draws foreign investment and sustains economic development.