What are the biggest border barriers to trade?

Predictability, reliability and consistency – these are the three key things that global traders/freight forwarders want when they need to cross borders, whether from South Africa into Zimbabwe or Brazil into Russia. At least, this is the conclusion that can be drawn from the International Chamber of Commerce (ICC) analysis on a survey published last month on trade barriers. The survey, entitled ‘What border barriers impede business ability’, was conducted from October to December last year with a total of 356 usable responses from around the globe, including a 28% response rate from Africa and the Middle East, said Anthony Barone, chairman of the ICC Commission on Customs and Trade Facilitation. “We wanted to focus on specific issues rather than speak of trade facilitation in general terms,” he noted. The 12-page report shows that a high proportion of the comments focus on border delays and also suggests that the border officials, as well as traders, may not be adequately trained in – or are uninformed about – the correct border clearing processes. “More effective customs-business dialogue at a national level can help find ways to lessen the delays,” commented Barone. Top 1O BARRIERS TO TRADE IN GENERAL º Duty º VAT º Classification uncertainty º Valuation issues (such as periodic price adjustments) º Unnecessary physical examinations or inspections º Challenges to transfer pricing º Obscure or inconsistent rules of origin º Wide variability in clearance times º Customs delays º Other government agencies (tax, health, agriculture) Top 5 BARRIERS TO INDIVIDUAL COMPANY BUSINESS º Classification uncertainty º Customs delays º Unnecessary inspections and examinations º Challenges to transfer pricing º Obscure or inconsistent rules of origin INSERT & CAPTION More effective customs-business dialogue at a national level can help find ways to lessen the delays. – Anthony Barone