Redigering av engelska texter för Kommerskollegium i samarbete med deras reklambyrå.

1. Trade facilitation and
Swedish experiences

2. The National Board of Trade is the governmental agency in The National Board of Trade performs its work for free trade on
Sweden dealing with foreign trade and trade policy. The Board is three levels:
an expert authority on matters concerning international trade. – for an efficiently functioning internal market
– for a liberal common EU trade policy towards third countries
The Board’s task is to promote free trade with transparent rules. – for a strong and transparent multilateral trading system
The work thus aims at minimising all kinds of obstacles to trade. within the WTO
The Board works broadly to this aim – from acting against trade
barriers and trying to solve trading problems, to performing studies Based on its trade expertise the Board also takes part in development
on trade matters. Studies are either related to ongoing negotia- cooperation, in the form of activities for trade related capacity
tions or more structural analyses concerning trade or issues building.
related to trade. The Board continuously provides the government
with analyses and background material. www.kommers.se
Kommerskollegium, oktober 2008 – första tryckningen. ISBN: 978-91-977354-4-5

3. Trade facilitation and
Swedish experiences

4. Index
Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Part 2: Sweden and trade facilitation . . . . . . . . . . . . . . 20
Part 1: Trade facilitation – an overview . . . . . . . . . . . . . 7 3 The Swedish context for trade facilitation . . . . . . . . . . . . 21
3.1 The Swedish economy – from an industrial country
1 About trade facilitation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
to a knowledge-based economy . . . . . . . . . . . . . . . . . . . . . 21
1.1 The trade chain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
3.2 The Swedish institutional system . . . . . . . . . . . . . . . . . . . . 22
1.2 Trade facilitation principles. . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Fundamental rights and freedoms . . . . . . . . . . . . . . . . . . . . 24
1.3 Gains and benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
3.3 Sweden’s trade policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Benefits in quantitative terms. . . . . . . . . . . . . . . . . . . . . . . . 10
3.4 Overview of Swedish trade facilitation reforms . . . . . . . . . 26
1.4 How to make trade facilitation happen . . . . . . . . . . . . . . . . 11
4 Public-Private dialogue in Sweden in trade issues . . . . 30
Facilitation Measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
4.1 The Swedish Government . . . . . . . . . . . . . . . . . . . . . . . . . . 30
2 Trade Facilitation – International Standards
Referral process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
and Instruments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Reference Groups for external trade issues . . . . . . . . . . . . 30
2.1 United Nations Centre for Trade Facilitation
and Electronic Business (UN/CEFACT). . . . . . . . . . . . . . . 12 Dialogue with the business community and
the civil society . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
UN/CEFACT´s standards and recommendations . . . . . . . 13
4.2 The Swedish Customs cooperation with other
UN Layout Key (Figure 2.1 UN Layout Key for
governmental agencies and the business community . . . . 31
Trade Documents) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
The three Joint Customs Committees
UN/EDIFACT: international standard for
– Alfred, SAMU and SAPO . . . . . . . . . . . . . . . . . . . . . . . . . 31
Electronic Data Interchange . . . . . . . . . . . . . . . . . . . . . . . . 14
4.3 Public-private dialogue on e-business and
2.2 World Customs Organization, WCO . . . . . . . . . . . . . . . . . 14
e-business standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
WCO Revised Kyoto Convention . . . . . . . . . . . . . . . . . . . . 15
Working towards standardized electronic
WCO HS Convention . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 messages in the 1980s . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
The Revised Arusha Declaration on Customs Integrity . . . 15 Making use of the ICT opportunities in the 1990s . . . . . . 33
WCO Framework of Standards to Secure and Cooperation on e-commerce today – private and
Facilitate Global Trade . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 public sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
WCO Columbus Capacity Building Programme . . . . . . . . 15 5 SWEPRO – Sweden’s trade facilitation forum . . . . . . . . . 36
2.3 United Nations Conference on Trade and 5.1 The evolution of Sweden’s trade facilitation bodies . . . . . 36
Development (UNCTAD) . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
SWEPRO: A jointly financed organisation with
ASYCUDA – Automated System for Customs Data . . . . . 16 government and trade (1975–1992) . . . . . . . . . . . . . . . . . 36
2.4 International Chamber of Commerce (ICC) . . . . . . . . . . . . 16 5.2 SWEPRO – Sweden’s trade facilitation forum today . . . . 38
2.5 International Maritime Organization (IMO) . . . . . . . . . . . . . 16 Tasks and activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
2.6 International Transport Union (IRU) . . . . . . . . . . . . . . . . . . . 17 Structure, representation and mandate . . . . . . . . . . . . . . . 39
2.7 World Trade Organization (WTO) . . . . . . . . . . . . . . . . . . . . 17 National and international interfaces . . . . . . . . . . . . . . . . . . 40
The WTO negotiations on trade facilitation in Funding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
the Doha Round . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
6 Trade-related enquiry points in Sweden . . . . . . . . . . . . . . 42
6.1 Call Customs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
Call Customs and its function . . . . . . . . . . . . . . . . . . . . . . . 42
6.2 Open Trade Gate Sweden . . . . . . . . . . . . . . . . . . . . . . . . . . 43
OTGS and its function . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
4

5. 6.3 SOLVIT – Enquiry points where EU Member states B. Time periods between publication and implementation . . 61
work together with cross-border issues . . . . . . . . . . . . . . . 44
C. Consultation and commenting on new and
SOLVIT and its function . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 amended rules. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
7 Authorised trader and risk management . . . . . . . . . . . . . . 46 D. Advance rulings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
7.1 Stairway® . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 E. Appeals procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
About the Stairway . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
® F. Other measures to measures to enhance
impartiality and non-discrimination . . . . . . . . . . . . . . . . . . . 61
StairSec® . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
G. Fees and chages connected with importation and
A systems based approach . . . . . . . . . . . . . . . . . . . . . . . . . 49 exportation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
Risk Management and COMPACT model . . . . . . . . . . . . . 49 H. Formalities connected with importation
and exportation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
7.2 Inventing the Stairway – A partnership approach . . . . . . . 50
I. Consularization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
8 Cooperation among border agencies
– Single Window . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 J. Border agency cooperation . . . . . . . . . . . . . . . . . . . . . . . . . 62
8.1 Swedish Single Window . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 K. Release and clearance of goods . . . . . . . . . . . . . . . . . . . . . 62
Benefits of the Single Window for traders, L. Tariff classification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
customs and other border agencies . . . . . . . . . . . . . . . . . . 53
M. Matters related to goods in transit . . . . . . . . . . . . . . . . . . . 63
The Establishment of the Single Window. . . . . . . . . . . . . . 53
Customs cooperation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
The services covered by the Swedish Single Window . . . 53
Annex 3: A selection of Swedish ministries, government
How does the Single Window work? . . . . . . . . . . . . . . . . . 53 agencies and organisations working with trade facilitation . . . . . 64
Business model. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 Further readings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
Promotion and communication . . . . . . . . . . . . . . . . . . . . . . 54
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
Judicial aspects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
View form the UN: UN/CEFACT recommendations
on Single Window . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
9 Regional Cooperation – Cooperation across borders . . 56
9.1 The European Customs Union. . . . . . . . . . . . . . . . . . . . . . . 56
The Customs Union today . . . . . . . . . . . . . . . . . . . . . . . . . . 56
E-customs and the modernisation of the
Community Customs Code . . . . . . . . . . . . . . . . . . . . . . . . . 57
9.2 Cooperation between customs in the Baltic region . . . . . 57
Border agency cooperation between Sweden
and Norway . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
Practical aspects of the Boarder Cooperation
Agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
The Green Corridor – cooperation between
customs authorities in Finland, Russia and Sweden . . . . . 59
Annex 1: List of UN/CEFACT recommendations . . . . . . . . . . . . . 60
Annex 2: WTO trade facilitation negotiations:
Summary of the measures proposed . . . . . . . . . . . . . . . . . . . . . . . 61
A. Publication and availability of information . . . . . . . . . . . . . . 61
5

6. Preface
Sweden is a very trade dependant country. Today EU and OECD. The Board also hosts a trade
nearly half of the consumed goods in Sweden is facilitation forum, SWEPRO, for discussions and
produced abroad and imported, while over half information regarding international work in the
the Swedish production is exported. field of trade facilitation.
Good conditions for trade thus are crucial for We have noted an interest to take part in Sweden’s
Swedish welfare. It has therefore been natural to experiences in the area of trade facilitation. It is our
engage in simple procedures for imports and hope that this publication can be a useful basis for
exports, and trade facilitation has been a priority further discussion on these issues.
issue since the 1950s. Sweden has also been This publication could not have been realised
an active participant in the international work without a number of experts from the Swedish
to elaborate standards and recommendations. Customs, the Swedish Trade Federation, the Swedish
And there is surprisingly much to gain from trade Association of Local Authorities and Regions, and
facilitation efforts. According to our analysis of the the Fredholm Consulting, contributing with their
potential gains from a deal in the Doha time and expertise.
round (WTO), trade facilitation would leave a bigger The work has been lead by Linda Laszlo in close
economic contribution than agriculture, industrial cooperation with Sofia Persson from the National
goods or services. The benefits from trade facilita- Board of Trade. In addition, Johan Pontén, Henrik
tion are especially important for developing Isaksson, Sonia Albarello, Hans Flykt and Lotta
countries. Ruokonen have also contributed to the publication.
The National Board of Trade has the task of
promoting a free trade with transparent rules. Our
work thus aims at minimising all kinds of obstacles Stockholm, October 2008
to trade. Trade facilitation is an important part of
this – and increasingly so with decreasing levels
for tariffs. Trade facilitation is hence becoming an
increasingly important tool for development.
The Board actively participates in the global work
regarding trade facilitation carried out in interna- Lena Johansson,
tional organisations such as UN/CEFACT, WTO, Director-General
6

7. Part 1
Trade facilitation
– an overview
7

8. 1 About trade facilitation
International trade is a key driver for economic growth and development. Countries are
trading more and more with each other resulting in a rapid increase in the volume of
international trade. According to the World Trade Organization (WTO), international trade
has increased annually by 5,5% during the last decade1. Production is scattered around
the globe and international trade has changed from complete goods towards intermedi-
ate and sub-assembled products. The increased globalisation of production, along
with just-in-time logistic techniques, has made companies more dependent on efficient
movement of their goods. “Traditional” trade barriers, such as tariffs, are gradually
disappearing – both through multilateral negotiations and the increase in bilateral and
regional free trade agreements. This development has contributed to making the costs
of inefficient administration and cumbersome trade procedures more visible.
In this first part of the publication we will provide an overview of what trade facilitation
is and mechanisms that can be used to achieve trade facilitation.
Trade facilitation measures can bring major benefits However, trade facilitation brings maximum impact
to both developed and developing countries in only if efforts are joined at an international level.
terms of increased competitiveness, reduced Not much is gained if all countries implement
compliance costs, enhanced governmental control, necessary but totally uncoordinated reforms. The
increased predictability and transparency. full impact of the benefits of trade facilitation will
Governments, businesses and other stakeholders occur when countries work together on an interna-
are the key actors in trade facilitation. Without tional level, developing and implementing globally
political will, it is hard to make trade facilitation accepted recommendations and tools. This is the
happen. Agencies involved in the trade chain need work carried out by international organisations
to work together in a coordinated way. Trade facili- such as the United Nations (UN), the World Trade
tation efforts should be carried out in close coop- Organization (WTO) and the World Customs
eration with the business community. Both parties Organization (WCO).
have a clear interest in such a working method.
1
WTO, World Trade Report 2008.
8

9. Figure 1.1 The Trade Chain
BUY SHIP PAY
Order Border
Prepare Transport Crossing Payment
• Importer • Transporter (Air-, Rail-, • Customs (Import, Export- • Banks
• Exporter Road- and Sea related) and Transit Country) • Financial Institutions
• Import Country Authorities • Inspection Company • Health Authorities • Other Intermediaries
• Export Country Authorities (PSI) • Port Management
• Insurance Company • Other Intermediaries • Agriculture Authorities
• Chamber of Commerce • Customs Brokers
• Export/Import Agent • Other Intermediaries
• Licensing Agency
• Credit Checking Company
• Other Intermediaries
Source: UN/CEFACT International Supply Chain Reference Model
1.1 The trade chain Figure 1.2 Trade facilitation principles
HARMONISATION
Trade facilitation is a concept directed towards
reducing the complexity and cost of the trade
transaction process and ensuring that all these
TRANSPARENCY
SIMPLIFICATION
activities take place in an efficient, transparent and TRADE
predictable manner. FACILITATION
PRINCIPLES
It relates to a wide range of areas and activities
such as government regulations and controls,
business efficiency, transportation, information and
communication technologies as well as payment
STANDARDISATION
systems.
Customs play a central role in the trade chain
but in order to achieve trade facilitation all agencies Transparency – ensuring that information, requirements and
processes for crossing borders are clear and specific and easily
at the borders must be involved. accessible for all involved.
The figure 1.1 shows examples of possible parties Harmonisation of applicable laws and regulations.
involved in a trade transaction. Standardisation of information and requirements and the
use of ICT to exchange information efficiently.
Simplification of administrative and commercial formalities,
procedures and documents.
1.2 Trade facilitation principles
The National Board of Trade considers the funda- 1.3 Gains and benefits
mental principles for trade facilitation to be
transparency, harmonisation, standardisation and There are great potential gains to receive from trade
simplification. To achieve trade facilitation in the facilitation. Time and money are wasted because of
best possible way, full cooperation is necessary outdated trade procedures that hamper business,
on these principles between authorities and the stifle growth and hold back economic development.
business community, as well as between the Unnecessary and excessive data and documentation
different authorities that are involved in the supply requirements, lack of transparency in customs,
chain. See Figure 1.2. excessive clearance times, lack of coordination, and
the absence of modern techniques, are just a few of
the problems contributing to this. The importance
9

10. of ensuring that trade can flow with minimum kind of trading regime there will be less risk for
impediments, with higher security levels and more corruption and discretionary decision by individual
efficient government control methods, has been the officials. Corruption is increasingly recognised as
focus of attention. an important problem that hampers trade and
Trade facilitation benefits all stakeholders growth. National government administrations are
involved – the business community as well as able to utilise modern procedures to enhance
governments. The business community gains from control, ensure proper collection of revenue and
trade facilitation through faster delivery and at the same time contribute to the economic
reduced transaction costs. It is important for traders development through increased trade.
that the application of rules is predictable. This will According to the experience of many countries,
allow them to know what to expect in their every- the positive results of trade facilitation will further-
day contacts with customs and other authorities. more be both greater and more quickly achieved
Simple and efficient trade procedures lift the burden through the implementation and use of information
of bureaucracy for companies and they can instead and communication technology (ICT).
focus on their core activity. This is particularly
important for small and medium sized enterprises Benefits in quantitative terms
(SME:s) that face proportionally higher costs for It is difficult to assess the gains from trade facilita-
complying with cumbersome procedures than tion in quantitative terms. Trade facilitation reduces
larger companies. In a transparent trade regime the costs associated with trade (so called transaction
market participants have a clear view of the rules costs). Transaction costs can be further divided
applied on the respective markets. Their production into direct and indirect costs. Direct costs are fees
can thus be based on an accurate assessment of and charges which provide government revenue
potential costs, risks and market opportunities. and employment. Indirect costs, on the other hand,
Transparency is also essential for attracting foreign constitute a deadweight loss and do not create any
investments. A country with a transparent trading revenue. According to the Organisation for
regime and efficient procedures is more likely to Economic Cooperation and Development, the
attract foreign investments and increase its interna- OECD, the transaction costs account for between
tional trade 2. 1–15% of the total transaction value of goods
The government will also gain from having a being traded 3.
transparent trading regime in which the rules and
the procedures are clearly communicated. In this
2
WCO, www.wcoomd.org “Benefits of Trade Facilitation”.
3
OECD, Policy Brief: “The Costs and Benefits of Trade Facilitation”, Oct 2005.
10

11. 1.4 How to make trade • The coordination and cooperation between
customs and other control agencies (for example
facilitation happen the ministry of agriculture), with the view to
achieve a “single window”.
Any approach to implementing trade facilitation
• The creation of National Trade Facilitation Bodies,
measures should take into account the specific
in order to achieve the required level of dialogue
circumstances, needs and capacities of individual
and cooperation between the public and private
countries. There is no single solution in pursuing
sector (UN/CEFACT Recommendation No. 4).
transparency, simplification or any of the other
principles. Trade facilitation is strengthened by • The use of “aligned documents”, in particular the
alliances and partnerships with international and United Nations layout Key for Trade Documents.
local stakeholders in both the public and the private • Establishing “Trade Enquiry Points” where all
sectors. The key elements are broad multilateral trade related information is available.
cooperation and dialogue between: • Adjusting the opening hours of border crossings
• The Government (e.g. ministries of trade, transport, to commercial needs and flexibility to work
and finance, including customs, and related outside usual business hours.
institutions), in designing and implementing • Publicising laws, procedures and other rules
national laws and regulations regarding trade affecting import/export, in a simplified manner
and transport. within an agreed timeframe.
• The Trading Community (importers and exporters) • Establishing right of appeal for traders in matters
who can benefit from such solutions in their arising from the activities of border agencies.
international trade transactions and service There should be a timely right of appeal to an
providers (transport operators, banks, insurance agency independent of the border agency.
companies, etc.) by offering market-oriented
• Information and Communications Technologies
trade and transport solutions, and lowering the
(ICT) are important tools for promoting trade
transaction costs of the flow of goods and money.
facilitation by enhancing transparency, ensuring
consistency and supporting simplification.
Facilitation Measures
Examples of reforms that would increase efficiency,
A country may accomplish many trade facilitation
transparency and predictability could be:
measures by making national reforms within their
• The reduction, simplification and standardisa- own government administrations. However, and as
tion of data and documentation required by we have pointed out earlier in this chapter, the full
customs and other agencies. impact of the benefits of trade facilitation will occur
• The creation of an environment that allows for when countries work together on an international
systematic dialogue between government and level, developing and implementing globally
the business community. accepted recommendations and tools.
Challenges to trade facilitation efforts
It has been discussed earlier on in this chapter how much – difficulties in meeting requirements of international standards
a country can gain through trade facilitation. However, if the – lack of funds and competing development demands
benefits are so evident, why are some countries reticent to
commit to trade facilitation? – corruption
Conditions which make trade facilitation efforts more These are only examples of negative aspects, but their existence
challenging/difficult include: and effect varies widely between individual countries. It is wrong
– lack of governments’ political will to make changes to believe that the magic solution is to simply transfer pre-made
trade facilitation programmes from one country to another.
– lack of trust between the private and public sectors Reforms must be based on the need and current situation in
– lack of means to assess and ensure compliance of reforms each particular country 4.
– inadequate coordination between governmental agencies
4
OECD, Policy Brief: “Trade Facilitation: The Benefits of simpler, more transparent Border Procedures”, Aug 2003; The National Board of Trade; “What is Trade
Facilitation? – Basic concepts and benefits”, 2005 and “Trade Facilitation from a Developing Country Perspective”, Sweden, 2003.
11

12. 2 Trade Facilitation – International
Standards and Instruments
The purpose of having international standards and instruments on trade facilitation is
to ensure that the procedures of international trade work towards the same general
direction, with compatible tools and globally accepted measures. Reforms on a
national level are important, but little is gained if all countries implement necessary
but uncoordinated reforms. As we have already pointed out in chapter 1, the full
impact of the benefits of trade facilitation will only occur for both the private and
public sector when countries work together on an international level, developing and
implementing globally accepted recommendations and tools.
In this chapter we will present a selection of organisations that have developed
standards, tools and recommendation that are relevant to trade facilitation. The list
of organisations described in this chapter is by no means exhaustive. There are a
number of other organisations, both regional and international, that develop relevant
trade facilitation instruments. In addition to this, there is a large body of standards
and recommendations that are elaborated on within specific sectors such as
transportation, banking etc.
The international community has at its disposal a facilitation would, contrary to the other interna-
large number of standards and recommendations tional organisations recommendations, lead to
on trade facilitation issues that reflect best practices. binding rules.
These standards and recommendations have been
elaborated on by a number of organisations, such
as the World Customs Organization (WCO), the 2.1 United Nations Centre for
United Nations Centre for Trade Facilitation and
Electronic Business (UN/CEFACT), the United Trade Facilitation and Electronic
Nations Conference on Trade and Development Business (UN/CEFACT)
(UNCTAD) and others.
Using international standards and recommenda- UN/CEFACT is the UN Centre for Trade Facilitation
tions benefits governments since they do not have and Electronic Business. Its principal focus is on
to “reinvent the wheel” but can draw upon existing facilitating national and international transactions
solutions when implementing the trade facilitation through the simplification and harmonisation of
measures. For operators trading in various coun- processes, procedures and the flow of information.
tries, business is greatly simplified if trade proce- UN/CEFACT works in a practical way with the
dures and documentation in these countries are development of tools and recommendations
based on common standards and, to the greatest through a number of different working groups.
possible extent, harmonised. This is particularly UN/CEFACT is located in the UN Economic
true when it comes to electronic exchange of data Commission for Europe (UNECE), which is part of
and documents. the United Nations network of regional commis-
The objective of the ongoing WTO negotiation sions. The UN/CEFACT working groups consist of
is to improve and adapt the WTO rules on trade participants from inter-governmental organisations,
facilitation to suit today’s trading system. In individual countries’ authorities and also from the
proposals in the negotiations, countries make business community.
reference to existing standards and instruments
on trade facilitation. The WTO rules on trade
12

13. UN/CEFACT´s standards and recommendations – Recommendation 1, on the United Nations
UN/CEFACT has developed a series of trade Layout Key for Trade Documents
facilitation and e-business standards, recommenda- – Recommendation 25, on the use of UN/EDIFACT
tions and tools for international trade. These tools are is the international standard for Electronic
available for countries or businesses to implement Data Interchange.
and they reflect best practices in trade procedures
and data and documentary requirements.
There are currently 34 UN/CEFACT trade UN Layout Key Figure 2.1 UN Layout Key
for Trade Documents
facilitation recommendations (see Annex 1 for a The UN Layout Key is an
complete list). The recommendations are reviewed international model for
and updated on an ongoing basis. Some have as simplification and stand-
their purpose to reduce the complexity of existing ardisation of documents
procedures, while others strive to harmonise used in international
transaction data or the methods used for data trade. The UN Layout Key
transmission. is a document model
The application of these standards and recom- which could contain all
mendations by individual countries can vary. It data elements needed in l
sa
depends on their unique conditions, needs and various trade documents po
dis
ee
priorities, as well as on their resources. However, and set them out in certain Fr
regardless of how they are applied, UN/CEFACT defined spaces. It also
argues that these standards should create stipulates paper size, form Source: UN/CEFACT,
a solid basis for successful international trading. design and list of items Recommendation No 1
Among the recommendations there are two that to be included.
have been approved and endorsed by the Economic Sweden was one of the driving forces behind the
and Social Council of the United Nations as Global agreement on this model in 1963. Several stakehold-
United Nations Recommendations because of their ers in Sweden had been working on simplifying
importance on a global level: trade documents. The result of the work was
13

14. brought into the UNECE and lays as a foundation
in the work on the UN Layout Key. Various
2.2 World Customs
international organisations responsible for banking, Organization, WCO
customs, freight forwarding and for transport by
sea, rail and road aligned their documents to the The World Customs Organization (WCO) is an
UN Layout Key. intergovernmental organisation based in Brussels
In 1973, the UNECE adopted the Layout Key and established in 1952 under the name Customs
and issued it as its Recommendation No 1 “United Cooperation Council. Its mission is to improve
National Layout Key for Trade Documents”. the effectiveness of customs administration by,
among other things, creating international instru-
UN/EDIFACT: international standard ments for the harmonisation of customs systems
for Electronic Data Interchange and by effective communication between its
Electronic Data Interchange (EDI) of trade data member states. The WCO today has 174 members.
came about when technological developments To fulfil its mission of improving the effectiveness
enabled new ways of handling and transmitting and the efficiency of its member, customs adminis-
information. Traditionally, the information flows trations across the world, WCO develops and
associated with international movement of goods administers various international instruments, tools
has been in paper format. Now the information and standards for the harmonisation and uniform
could be interchanged electronically. application of simplified and effective customs
When using automatic data processing and systems and procedures governing the cross-border
transmission, a common “language” must be used. movement of commodities, people and means of
Therefore the UN/CEFACT and its predecessor, the transport. Trade facilitation, in the WCO context,
UNECE Working Party on Facilitation of Interna- means the avoidance of unnecessary trade restric-
tional Trade Procedures, elaborated an international tions. The WCO argues that this can be achieved
standard for EDI: the UN rules for Electronic Data by applying modern techniques and technologies,
Interchange for Administration, Commerce and while improving the quality of controls in an
Transport (UN/EDIFACT). EDIFACT is defined as internationally harmonised manner. A selection
a set of internationally agreed standards, directories of WCO´s most important conventions, methods,
and guidelines for the electronic interchange of standards and capacity building programmes are
structured data, and in particular related to trade mentioned below:
in goods and services between independent,
computerised systems.
14

15. WCO Revised Kyoto Convention WCO Framework of Standards to Secure
The International Convention on the Simplification and Facilitate Global Trade
and Harmonization of Customs procedures (Kyoto In 2005 the WCO Council adopted the Framework
Convention) entered into force in 1974 but was of Standards to Secure and Facilitate Global Trade
revised and updated in 1999. (SAFE). The SAFE framework is one of the most
The revised Kyoto Convention is one of the major ambitious initiatives for security in the supply chain
international instruments developed by the WCO. and it has a potential to affect almost all world trade
The Convention is recognised as an international if all WCO members implement it. Moreover, the
standard, and is used as a benchmark for the global framework also applies to all modes of transport.
customs community. The convention contains SAFE is a tool that aims to protect the international
modern and efficient customs formalities and supply chain from threats posed by international
procedures, harmonised customs documents for use terrorism, organised crime and other customs
in international trade and transport and provides offences, while providing a platform to facilitate the
for the use of risk management techniques and the movement of legitimate goods traded internationally.
optimal use of information technology by customs SAFE is based on four core elements that are
administrations. intended to permeate the work of improving
security in the supply chain:
WCO HS Convention – Advance electronic information: SAFE has been
The harmonised system of HS is a nomenclature for formulated in such a way that it harmonises the
the classification of goods. It was developed by the elements of data required in electronic advance
WCO through the form of an international conven- information on imports, exports and transit
tion called the WCO’s International Convention on shipments.
the Harmonized Commodity Description and – Risk management: each country participating
Coding System (HS Convention). There is a periodic in SAFE undertakes to introduce a consistent
review of the HS convention and the most recent risk management approach that addresses threats
version was released in February 2007. to security.
The HS Convention contributes to the facilitation – Outbound inspection: in line with the importing
of international trade by providing a common basis country’s request and based on a comparable risk
for the classification of goods and the collection of targeting method, the exporting country shall
customs duties. Over 190 countries use the HS perform an outbound inspection of high risk
system as a basis for their customs tariffs and for containers and cargo, preferably with equipment
statistical purposes. Over 98% of world trade is that does not require the cargo to be physically
classified in terms of the HS. opened, for example large-scale X-ray machines
The WCO has an HS Committee that meets and radiation detectors.
regularly to discuss classification issues and the – Business partnership: SAFE defines benefits that
committee also administers a dispute settlement customs authorities shall offer businesses that
mechanism for issues related to HS classification. meet minimal supply chain security as well as
standards and best practices.
The Revised Arusha Declaration
on Customs Integrity SAFE consists of 17 security standards broken down
In 1993 The WCO Council adopted the Arusha into two pillars: customs to customs network arrange-
Declaration on Customs Integrity, which was ments and customs to business partnerships.
revised in June 2003. It contains ten elements
that provide a practical basis for the development WCO Columbus Capacity Building Programme
and implementation of a range of integrity or Since 2006, the WCO has initiated a number of
anti-corruption strategies that are relevant to the capacity building programmes and activities. The
customs operating environment. Elements included most significant is the WCO Columbus Programme.
are for example: Leadership and Commitment, It is aimed at customs modernisation and imple-
Regulatory Framework, Transparency and Relation- mentation of the SAFE and the Revised Kyoto
ship with the Private Sector. Convention as well as other trade facilitation
standards and best practices.
15

16. When SAFE was adopted the question arose ASYCUDA – Automated System for Customs Data
whether all WCO member states would be able to ASYCUDA was developed by UNCTAD at the
implement the framework in its entirety. The WCO request of the Economic Community of Western
members recognised that there exist a clear risk that African States (ECOWAS) to assist in the compila-
countries which lack capacity, in the form of both tion of foreign trade statistics in their member
infrastructure and administrative capacity, would states. It has developed into a customs management
not be able to fulfil SAFE’s requirements in respect system which covers most foreign trade procedures.
to security measures. Consequently the participa- The system handles manifests and customs declara-
tion of poor countries in international trade could tions, transit, suspense procedures and accounting
be made difficult. To help rectify this problem the procedures. It generates trade data that can be used
customs authorities in the USA, Canada, Australia, for statistical economic analysis.
the EU and Japan offered to help developing Major revisions of the ASYCUDA software
countries that show the political will to implement have led to a very stable and highly reliable system.
SAFE but lack the means to do so. Each country The system takes into account the international
shall have an individual implementation plan. codes and standards developed by ISO 5, WCO
The WCO is also working with the regional and the United Nations.
introduction of SAFE. For example, the East African To date over 80 countries have installed ASY-
Community (EAC), the Southern Africa Customs CUDA, or are in process of doing so.
Union (SACU), the Economic Community of West
African States (ECOWAS) and the Association of
Southeast Asian Nations (ASEAN) shall cooperate
to harmonise the introduction of SAFE.
2.4 International Chamber
of Commerce (ICC)
2.3 United Nations Conference The International Chamber of Commerce (ICC) is
a business organisation with national committees in
on Trade and Development a large number of countries and an International
(UNCTAD) Secretariat in Paris. ICC elaborates voluntary rules
and standards that contribute to facilitating
The United Nations Conference on Trade and international trade such as:
Development (UNCTAD) was established in 1964. – ICC Incoterms which are standard international
The objective of UNCTAD´s work is to maximise the trade definitions.
trade, investment and development opportunities of – ICC’s Uniform Customs and Practice for Documentary
developing countries and to assist developing coun- Credits (UCP 500), which are the rules that banks
tries facing challenges arising from globalisation. use for documentary credits, collections, bank-to-
The organisation has three key functions; firstly bank reimbursements and demand guarantees.
to function as a forum for discussions between
– ICC codes on advertising and marketing are frequently
experts, secondly to undertake research, policy
reflected in national legislation and the codes of
analysis and data collection on various subject
professional associations.
matters, and, finally, to provide technical assistance
to developing countries. UNCTAD is one of four – Rules for arbitration for international business
observer organisations in the WTO trade facilitation disputes in the ICC International Court of
negotiations and has conducted workshops and Arbitration.
research aiming to improve developing countries’
participation in the negotiations.
ASYCUDA is a computerised customs manage- 2.5 International Maritime
ment system developed by UNCTAD which we
believe deserves special mention in this material Organization (IMO)
on trade facilitation.
The International Maritime Organization (IMO) was
established in 1948 in Geneva. It is an agency in the
UN system. Its main mission is to develop and
5
International Organisation for Standardisation.
16

17. maintain international rules for shipping which IRU is relevant in its capacity as international
include safety, environmental concerns, legal guarantor of the TIR carnet system.
matters, technical cooperation and efficiency in The TIR convention was elaborated in the UNECE
shipping. The IMO has 167 member states at the and the convention has 68 contracting parties. The
present time. The IMO’s Convention on Facilitation TIR system was devised to facilitate the interna-
of International Maritime Traffic (FAL) was adopted tional movement of goods under customs seals. The
in 1965 to prevent unnecessary delays in maritime system provides transit countries with the required
traffic, to aid cooperation between governments, guarantees to cover the customs duties and taxes at
and to secure the highest practicable degree of risk. Through its network of national member
uniformity in formalities and other procedures. associations the IRU administers an international
The IMO’s Safety of Life at Sea Convention (SOLAS) guarantee chain throughout all countries with
addresses maritime safety and its most recent which a TIR transit operation can be established.
update is from 1974. After the terrorist attacks on The national member associations of the IRU are
September 11, 2001, the members of the IMO agreed authorised by their national customs authorities
to develop security measures for ships and ports. and by the IRU to act as issuing and guaranteeing
The result was the International Ship and Port Facility bodies for TIR carnets on the territory of the
Code (ISPS Code), which is an amendment to SOLAS. country where they are domiciled.
ISPS lays down requirements in respect of maritime
security and recommendations on ways in which
these requirements shall be met. The ISPS code, was 2.7 World Trade
introduced in July 2004 and in August of the same
year 89.5 per cent of 9 000 ports and more than 90 Organization (WTO)
per cent of all ships had been approved in accord-
The World Trade Organization (WTO) was estab-
ance with the Code.
lished in 1995 and succeeded the GATT (General
Agreement on Tariffs and Trade). The WTO is a
forum for trade negotiations, rule setting and reso-
2.6 International Transport lution of trade disputes with 153 member countries.
Union (IRU) WTO core principles:
– Most favoured nation principle. Countries can not
The International Road Transport Union (IRU) is normally discriminate between their trading
a network of national associations representing the partners. All WTO members should enjoy the
transport industry. In a trade facilitation context same trading conditions.
17

18. – National treatment: No member country may The negotiations shall also find provisions for
discriminate between its own products and effective cooperation between customs or other
imported products. appropriate authorities on trade facilitation and
– Transparency: All rules affecting trade must be customs issues.
transparent. Means to ensure this are through It is recognised that in order to fully reap the
publication, notification, discussion and trade benefits from trade facilitation a basic infrastructure
policy reviews of individual countries in the WTO. supporting trade such as road and rail infrastruc-
ture, port facilities, telecommunications facilities,
etc, have to be in place. However, these aspects are
The WTO negotiations on trade
not covered by the negotiations.
facilitation in the Doha Round
The text in the mandate, called Annex D 6, on
The Doha Development Agenda (DDA) is the 9th
special and differential treatment for developing
round of the WTO trade negotiation that seeks to
countries and technical assistance for implementa-
further liberalise trade and review trade rules. Issues
tion is considered a novelty in the WTO 7. The
under negotiation include, for example liberalisation
mandate states that “the extent and the timing
of trade in agricultural and industrial goods, liber-
of entering into commitments shall be related to
alisation of trade in services and trade facilitation.
the implementation capacities of developing and
The WTO member countries have had difficulties
least developed members”. Members, in particular
agreeing in the negotiations, which has resulted
developed countries, should commit to deliver
in a dragged on process.
support and assistance to allow implementation.
The Doha Development Round was launched in
It is stated that “in cases where required support
2001 but trade facilitation became a part of the
and assistance for such infrastructure is not
negotiation in 2004 after a decision by the WTO
forthcoming, and where a developing or least-
General Council. The scope of the trade facilitation
developed Member continues to lack the necessary
negotiations concerns rules, formalities, procedures,
capacity, implementation will not be required”.
documents and fees needed for import, export and
If the negotiations are terminated and the
transit. The objective is to achieve simple and
member countries agree on trade facilitation, the
modern trade rules that benefit both government
next phase will take over: implementation of the
and traders.
agreement. From the mandate it is clear that
Trade facilitation is not a new issue in the WTO
countries shall not be forced to implement measures
and the negotiations aim at clarifying and improving
if they lack the capacity to do so, and if no technical
three existing GATT Articles on:
assistance is forthcoming.
• Freedom of Transit (GATT Articles V) See Annex 2 for a presentation of proposals
• Fees and Formalities connected with Importation made in the negotiations.
and Exportation (GATT Article VIII)
• Publication and Administration of Trade
Regulations (GATT Article X)
Issues discussed in the WTO trade facilitation negotiations
A. Publication and availability of information H. Formalities connected with importation and exportation
B. Time periods between publication and implementation I. Consularisation
C. Consultation and commenting on new and amended rules J. Border agency cooperation
D. Advance rulings K. Release and clearance of goods
E. Appeals procedures L. Tariff classification
F. Other measures to enhance impartiality and M. Matters related to goods in transit
non-discrimination Customs cooperation
G. Fees and charges connected with importation
and exportation
(See Annex 2 for a more indepth presentation of the issues)
6
Annex D Modalities for Negotiations on Trade Facilitation (annex to the WTO General Council’s decision on the Doha Agenda work program called
“July package”, 2004).
7
Kleen P (2008) “So alike and yet so different: A comparison of the Uruguay Round and the Doha Round”, ECIPE, Jan Tumlir Policy Essay No 02/2008 p 15.
18

19. Existing WTO agreements that are relevant for trade facilitation
In addition to the three existing GATT articles, there are several goods are shipped from the exporting country. The Agreement
agreements in the WTO that are relevant in a trade facilitation on Preshipment Inspections prescribes how PSI shall be
context, see below: performed by the user (importing) country. It is recognised that
the trade facilitation negotiations are way to remedy the
AGREEMENT ON CUSTOMS VALUATION (CVA) shortfalls in some customs administrations, thereby making the
The purpose of the Customs Valuation Agreement (CVA) is PSI unnecessary. In the negotiations a proposal has been
that all WTO members should apply a fair, uniform and neutral made to phase out the use of PSI 8.
system for the valuation of goods for customs purposes.
AGREEMENT ON TECHNICAL
AGREEMENT ON RULES OF ORIGIN BARRIERS TO TRADE (TBT)
The objective of the Rules of Origin Agreement is to ensure The TBT Agreement contains provisions that must be
that the rules of origin do not have restricting, distorting or observed when a member prepares, adopts and applies tech-
disruptive effects on international trade. Countries shall also nical regulations and standards (including packaging marking
administer their rules in a consistent, uniform, impartial and and labelling requirements) and the procedures for the assess-
reasonable manner. The conclusion of the Rules of Origin ment of conformity with technical regulations and standards.
Agreement also signalled is the start of negotiations that are The Agreement also includes rules on transparency.
still ongoing to harmonise non-preferential rules of origin
globally. AGREEMENT ON APPLICATION OF SANITARY
AND PHYTOSANITARY MEASURES (SPS)
AGREEMENT ON IMPORT LICENSING The SPS Agreement sets out the basic rules on how a govern-
PROCEDURES (ILP) ment can apply food safety and animal and plant measures
The Agreement on Import Licensing Procedures (ILP) aims to (sanitary and phytosanitary measures). The agreement in-
make the administration of import licenses as smooth and cludes provisions on control, inspection and approval proce-
simple as possible so as to ensure that the licenses interrupt dures. Transparency and openness are central elements of
trade as little as possible. the SPS Agreement.
AGREEMENT ON PRESHIPMENT INSPECTION (PSI)
Preshipment inspections (PSI) mean that an importing country
contracts a private company to deal with certain customs
work, such as checking price, quantity and quality, before the
8
See: EC and Chinese Taipei “Preshipment Inspections” WTO reference: TN/TF/W/108.
19

20. Part 2
Sweden and trade
facilitation
20

21. Figure 3.1 Map of Sweden Facts about Sweden:
Area: 450,000 km² (174,000 sq mi), third largest country in Western Europe
Capital: Stockholm
Population: 9,2 million inhabitants
Languages: Swedish
Form of government: Constitutional monarchy, parliamentary democracy
Parliament: The Riksdag, with 349 members in one chamber
Religion: 80% belong to the Evangelical Lutheran Church of Sweden
Main trading partners: The European Union, Norway and the United States
Main export goods: Electronic and telecom equipment, machinery,
passenger cars, paper, pharmaceuticals, iron and steel
Main imported goods: Electronic and telecom equipment, machinery,
foodstuffs, crude oil, textile products, footwear and passenger cars
GDP (US$ billions), 2007: 431.6
GDP (current prices, US$ billions) per capita, 2007: 47,068.7
Real GDP growth (percent) 2007: 3.6
Source: www.si.se
3 The Swedish context for trade facilitation
As a small trade-dependant country, international trade is essential for Sweden’s welfare,
and has been so for a long time. Sweden’s business sector is among the most interna-
tionalised in the world. Simple and predictable trade procedures, including customs
procedures, are therefore of priority for Sweden. Today, international trade, including
Sweden’s trade, has become more complex and specialised, and trade facilitation is thus
a very important tool to make export and import procedures as efficient as possible.
However, there is no “one-size fits all” when it comes to implementing trade facilitation.
Each country must follow its own strategy adopted by that country’s specific circum-
stances and institutional system.
In the following, we will present some characteristics of the Swedish economic and
institutional systems, for the purpose of explaining the prerequisites Sweden has had in
its work with trade facilitation. Furthermore, we will give a historical overview of Swedish
trade facilitation reforms.
3.1 The Swedish economy well integrated in the global economy, with a large
public sector.
– from an industrial country to In the mid-1850s, Sweden was still a poor
a knowledge-based economy agrarian country on the periphery of Europe.
However, various reforms – notably compulsory
Sweden is today one of the worlds most economi- primary schooling, gradual democratisation and a
cally advanced societies and the standard of living range of economic liberalisation measures – ignited
is one of the highest in the world. The diversified the economy. Restrictions, deliberately designed to
economy combines a deregulated market economy, hamper both domestic commerce and free trade
21

22. with other countries, were abolished. As the exports A number of annually published international
of iron, ore and timber became a profitable busi- comparative reports put Sweden very close to the
ness, foreign investments poured into the country to top regarding competitiveness. High spending on
build modern infrastructure. The process was much R&D, widespread use of information technology,
helped by a peaceful and incorrupt political climate. a well educated workforce, excellent infrastructure,
By the late 19th century, the economy gradually low corruption and efficient government institutions
was transformed from one based on agriculture and makes Sweden one of the leading economies in the
raw materials to an industrial economy. For European Union (EU). These are also favourable
example, exports of timber became exports of pulp factors for implementing trade facilitation reforms.
and paper. A diverse manufacturing sector arose, Since the beginning of the 70’s the service
with many firms based on new innovations. sector has dominated the economy. Sweden is thus
Gradually, many companies became giants and today a post industrial society and innovation
today Sweden has a large number of multinational driven knowledge economy, not least in areas
corporations, like Volvo (automobiles), Ericsson such as ICT and pharmaceuticals. The activities in
(telecommunications) and H&M (retail clothing). In Swedish firms are more and more geared towards
order for Sweden’s business to develop, access to the intellectual phase of the production process, i.e.,
foreign markets was imperative and Sweden realised R&D, marketing and logistics solutions. Not only
early on the necessity of simplifying burdensome knowledge intensive services are increasing but also
trade procedures. Without an outlet for their other more menial types of services. However,
products the firms could never have achieved the many services are not easily tradable and the main
scale of economies needed to develop, produce and venue for reaching foreign service consumers is to
sell their products at reasonable prices. The Swedish invest abroad.
market was, and is, simply too small. The Swedish Consequently, manufacturing still dominates the
economy became specialised in the areas where it trade flows, with 75 – 80 % of all exports and
had competitive advantages, and the profits from imports. Even if Sweden mostly trade with other EU
exports have been used to finance imports. Sweden members (approximately 2/3), the country also
has never resorted to the idea of import substitu- develops closer commercial ties with the rest of the
tion, but always imported goods which could not be world, not least the emerging markets. With the
produced competitively at home. Open borders in fragmentation of world production – where goods
both directions, for exports and imports, is a are assembled using sub parts produced in many
hallmark of the Swedish economy and has contrib- places – the flow of intermediate goods into and out
uted much to Swedish economic growth. of the country from all over the world constitutes
an increasing part of Swedish trade, which again
makes trade facilitation important.
Figure 3.2 Swedish Exports and Imports
of goods and services 1950 – 2007
The graph below shows Swedish exports and imports of goods and
services in relation to GDP, expressed in percentage points.
3.2 The Swedish
55
Exports of goods and services
institutional system
Imports of goods and services
50
Sweden is a constitutional monarchy and a parlia-
45
mentary democracy. All public power in Sweden
proceeds from the people represented by the
40 Swedish Parliament – the “Riksdag” – represents
the people. The Riksdag appoints the Prime Minister
35
who chooses the members of government – the
30 ministers. The Riksdag also makes law, decides on
the budget and monitors the government. The
25
government, as a collective, rules Sweden and is
20 accountable to the Riksdag. The Government
1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 Offices form a single, integrated public agency
Data up to and including 2007
comprising the Prime Ministers Office, the twelve
Source: www.scb.se ministries and the Office for Administrative Affairs.
22

23. Government itself decides how its work is to be have a number of instruments at their disposal
organised. The formal rules of administrative when steering these agencies.
procedure merely lay down general guidelines and The government issues an instruction for each
establish a number of basic principles for dealing agency. In this instruction the main working areas of
with government matters. The work methods and the agency are stated as well as the main objectives.
organisation of the Government Offices are in This instruction is an ordinance and is changed only
constant development in cooperation with the when there is call for revision. The budget and the
political leadership, the Directors-General for Legal accompanying appropriation directions is decided
Affairs and the Office for Administrative Affairs, by parliament but prepared by the Government
which is led by the Permanent Secretary, the Offices on an annual basis. The appropriation
agency’s most senior official. directions contain the instructions and special tasks
Sweden has a long history of decentralisation and that the government wants the agencies to carry out,
delegation. One example of this is that almost all as well as the details of their yearly budget.
decision-making related to individuals and enter- To this formal steering comes an informal steering
prise is delegated to government agencies. There are in the daily contacts, which is the effect of the
about 230 government agencies that have employ- organisation with government business carried out
ees. They carry out the political decisions of the by agencies. The agencies are generally directly
government and make decisions applying law. This linked to a specific ministry where a senior adminis-
makes the government’s agenda less charged; and trative officer is responsible for daily contacts. In
has the advantage of allowing the government to the contact with officials in the Government Offices,
concentrate on policy making. These agencies are tasks and assignments are decided and inquiries into
often referred to as independent since the govern- areas of special interest for the government ordered.
ment cannot interfere into the decision-making One part of the informal steering is the dialogue
process related to an individual administrative item between agencies and government. An essential part
of business. However, government and parliament of this dialogue is often the yearly meeting between
23

24. the Director General of an agency and the Minister beyond that limit if the aim is to expose far reaching
responsible and also in some cases with the State corruption or other criminal activities. The officials
Secretary, the minister’s closest collaborator. are protected by the fact that media is not allowed
There has been an extensive debate in Sweden in to disclose their sources and agencies are not
the last decade on the issue of how more complex allowed to enquire into “leaks”. This is an efficient
problems extending to various fields of society “whistle blower protection”. The public and mass
should be tackled in the best way. There is a media are entitled to attend trials and meetings of
standing instruction to the government agencies to the chamber of the Swedish Parliament, the
co-operate in relevant areas. However cooperation municipality assembly, county council and other
between agencies can sometimes be hard to carry such entities.
out in practise, despite political pressure and The free access to documents is an effective
ambitious plans. In the trade and customs area this barrier to corruption and a way to assure that the
cooperation has a long tradition and has been democracy can function effectively thanks to well
running relatively smoothly, as described in the informed citizens. These fundamental rights and
chapter about the Swedish Single window and other freedoms are a basis for achieving long standing
areas of cooperation 9. trade facilitation reforms.
Fundamental rights and freedoms
All Swedish citizens are guaranteed a number of 3.3 Sweden’s trade policy
freedoms and rights. The most important of these
rights, from a trade facilitation perspective, are Free trade is since a long time the basic principle for
freedom of expression and of information, as stated the Swedish trade policy. Open, simple and fair
in the Fundamental law on Freedom of Expression conditions for international trade and investment
and the Freedom of the Press Act. This encompasses contribute to growth, employment and sustainable
a freedom to communicate information and express development.
thoughts, opinions and sentiments. Openness, In connection with Sweden’s membership in the
transparency and access to information are very European Union (EU) in 1995, Sweden became fully
important aspects for all public services in Sweden. integrated into the EU internal market and part of
This is specified in the constitutionally protected its common external trade policy towards non-
principle of the public access to official documents, member countries. EU Membership also means that
dating from as far back as 1766. According to this Sweden’s frontiers, from a trading perspective, now
principle all individuals, independent of nationality are Norway in the west, Russia in the east and Africa
and media have access to information about state in the south. The European Commission is respon-
and municipal activities. Any individual may read sible for conducting trade negotiations with
official documents of public authorities. A docu- countries outside the EU. For the trade in goods,
ment can be any sort of information, text or image, and to a certain extent services as well, membership
independent of media. A condition for a document of the EU means that the right to legislate and enter
being public is that it is in the keeping of an agency into agreements with countries outside the EU, has
or that it has been drawn up there. Officials are not been transferred to the Union. The European
entitled to ask who is asking for a document or for Commission represents EU member countries in
what purpose. forums such as the World Trade Organization. The
Official documents can be kept secret if, for European Council, where each of the 27 Member
example, they concern national security, the states is represented at the ministerial level, is the
personal or financial circumstances of private decision-maker. The Council issues directives to
individuals or crime prevention activities by public guide the Commission in its work and decides
agencies. ultimately, whether to adopt an accord. Sweden
Furthermore, civil servants and others who work follows the Common Commercial Policy and is
for the state or municipalities are entitled to disclose required to incorporate these rules and regulations
information to newspapers, radio and television, if into its existing regulatory framework.
the aim is publication. This right is limited by the It is the Swedish Ministry for Foreign Affairs
above secrecy principles, but can sometimes extend that is responsible for Sweden’s trade policy.
9
Government Offices of Sweden, Art Nr IR 2008:001 “The Swedish Government at work”, 2008.
24

25. The National Board of Trade is the governmental Figure 3.3 Example of Swedish ministries and governmental agencies
active in the area of trade
agency and the central administrative body in
Sweden dealing with foreign trade and trade policy.
The Board provides the Ministry for Foreign Affairs Government
with analysis and recommendations on any trade
policy matter, including issues related to trade
facilitation. Within the framework of the EU, the Ministry for
Ministry of
Ministry of Agriculture,
Board works for an effective Internal Market, an Foreign Finance Food and
Affairs
open trade policy and a strengthened, multilateral Fisheries
trading system within the WTO.
National
National Customs Board of
Board
Tax Board Agriculture
of Trade
E-government
The Swedish central E-government is a concept which refers electronic information between the agencies. Information
to government’s use of information and communication exchange between the agencies is crucial and a prerequisite
technology (ICT) to exchange information and services with to facilitate the service to the individuals and the business
citizens, businesses, and other arms of government. According community.
to several international comparison studies, the central
government administrations’ use of ICT is among the most TULLVERKET.SE
developed in the world and Sweden is one of the world Tullverket.se (formerly “The Virtual Custom Office”), launched
leading countries when it comes to the range of advanced in 2002, is a good example of how an e-government solution
public services through the internet 10. The most important may be developed and implemented. Countries like Sweden
anticipated benefits of e-government include improved that are dependent on foreign trade and where Customs
efficiency, convenience and better accessibility of public play an important role, needed to increase the service levels
services. This is also significant in a trade facilitation and facilitate trade by introducing eServices and thereby
perspective. adding value to the overall foreign trade process for the
Swedish business community. Tullverket.se is a Swedish
THE 24/7 AGENCY single window and it is a web-service that enables companies
In year 2000 the Swedish government launched an initiative to perform their day to day customs business in a flexible way.
called the 24/7 Agency (a government agency that is open 24 The overall objective is availability 24/7 throughout the year for
hours, seven days a week). The objective of the initiative was all customers regardless of their level of competence and
to provide citizens, on a continuous basis, with electronic prerequisites, offering the same level of service at all times.
access to governmental services all hours of the day, The website supports all of the business community with differ-
regardless of working hours. Individuals and businesses ent eServices, for instance the ability to submit customs
should find it easier to retrieve and submit the information that declarations over the internet, mostly used by small and
is relevant in each individual situation, regardless of how the medium sized companies that use this service for electronic
responsibility for the information is divided between agencies import and export declarations. Today approximately 98% of all
or between the state, municipalities or county councils. documentation to Customs is by electronic means (web/EDI).
Another important objective of the 24/7 Agency was to get
citizens and companies to play a part in the work on public Tullverket.se contains a number of services linked to other
administration to shape and offer its services. Services and agencies involved in the trade. Value added taxes are collected
range activities offered by the public administration should on imports on behalf of the Taxation authorities and trade
therefore be clearly and comprehensibly stated to the citizens. statistics on behalf of Statistics Sweden. Swedish Customs
At the same time the public administration should continuously has in partnership with the National Board of Trade and the
inform itself regarding citizens’ opinions and demands and Swedish Board of Agriculture developed innovative eServices
take these issues into consideration in their efforts to develop facilitating foreign trade regarding licenses.
activities further. Each government agency should have an
independent responsibility for its own technical system and Tullverket.se has been both a national and internationally
services. It is also important that the forms for cooperation and recognised initiative, showing how Customs business may be
coordination between the different government agencies are conducted in the 21st century with the use of modern
achieved by setting up common standards for exchange of technology.
10
www.regeringen.se/finans, Skr. 2004/05:48.
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