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Trade Facilitator Module

A. Short Term Module Our module of Trade facilitation has its intellectual roots in the fields of logistics and supply chain management mostly for Export and Import traders. Trade facilitation looks at operational improvements at the interface between business and government and associated transaction costs. Trade facilitation has become a key feature in supply chain security and customs modernization programmes. Within the context of economic development it has also come to prominence in the Doha Development Round. However, it is an equally prominent feature in unilateral and bilateral initiatives that seek to improve the trade environment and enhance business competitiveness. Reference to trade facilitation is sometimes also made in the context of "better regulation". Some organizations promoting trade facilitation will emphasis the cutting of red tape in international trade as their main objective.


Propagated ideas and concepts to reforming trade and customs procedures generally resonate around the following themes:
A.Simple rules and procedures:
B.Avoidance of duplication
C.Memorandum of Understanding (Mo Us)
D.Alignment of procedures and adherence to international conventions
E.Trade consultation
F.Transparent and operable rules and procedures
G.Accommodation of business practices
H.Operational flexibility
I.Public-service standards and performance measures
J.Mechanisms for corrections and appeals
K.Fair and consistent enforcement
L.Proportionality of legislation and control to risk Time-release measures
M.Risk management and trader authorizations
N.Standardization of documents and electronic data requirements
O.Automation
P.International electronic exchange of trade data
Q.Single Window System


Trade Facilitator
B. Long Term Module
Our module of Trade facilitation has its intellectual roots in the fields of big government establishments and rehabilitation management mode of PPP(Public Private Partnership or Build Operate Transfer)Trade facilitator facilitate Countries through World Trade Organization on Build Operate and Transfer such Examples of countries using BOT are Thailand, Turkey, Taiwan, Saudi Arabia, Israel, India, Iran, Croatia, Japan, China, Vietnam, Malaysia, Philippines, Egypt, and a few US states (California, Florida, Indiana, Texas, and Virginia). However, in some countries, such as Canada, Australia and New Zealand, the term used is build�own�operate�transfer (BOOT). Traditionally, such projects provide for the infrastructure to be transferred to the government at the end of the concession period. In Australia, primarily for reasons related to the borrowing powers of states, the transfer obligation may be omitted. For the Alice Springs � Darwin section of the Adelaide�Darwin railway the lease period is 50 years, see Austral Asia Rail Corporation.
Forms of project finance are:
1 BOT (build�operate�transfer)2 BOOT (build�own�operate�transfer)3 BOO (build�own�operate)4 BLT (build�lease�transfer)5 DBFO (design�build�finance�operate)6 DBOT (design�build�operate�transfer)7 DCMF (design�construct�manage�finance)BOT (build�operate�transfer)BOT finds extensive application in the infrastructure projects and in public�private partnership. In the BOT framework a third party, for example the public administration, delegates to a private sector entity to design and build infrastructure and to operate and maintain these facilities for a certain period. During this period the private party has the responsibility to raise the finance for the project and is entitled to retain all revenues generated by the project and is the owner of the regarded facility. The facility will be then transferred to the public administration at the end of the concession agreement,[2] without any remuneration of the private entity involved. Some or even all of the following different parties could be involved in any BOT project:

� The host government: Normally, the government is the initiator of the infrastructure project and decides if the BOT model is appropriate to meet its needs. In addition, the political and economic circumstances are main factors for this decision. The government provides normally support for the project in some form. (Provision of the land/ changed laws)
� The concessionaire: The project sponsors who act as concessionaire create a special purpose entity which is capitalized through their financial contributions.
� Lending banks: Most BOT projects are funded to a big extent by commercial debt. The bank will be expected to finance the project on �non-recourse� basis meaning that it has recourse to the special purpose entity and all its assets for the repayment of the debt.
� Other lenders: The special purpose entity might have other lenders such as national or regional development banks
� Parties to the project contracts: Because the special purpose entity has only limited workforce, it will subcontract a third party to perform its obligations under the concession agreement. Additionally, it has to assure that it has adequate supply contracts in place for the supply of raw materials and other resources necessary for the project
BOT model
In general, a project is financially viable for the private entity if the revenues generated by the project cover its cost and provide sufficient return on investment. On the other hand, the viability of the project for the host government depends on its efficiency in comparison with the economics of financing the project with public funds. Even if the host government could borrow money on better conditions compared to that of the public sector, other factors could offset this particular advantage. For example, the expertise and efficiency that the private entity is expected to bring as well as the risk transfer. Therefore the private entity bears a substantial part of the risk. These are some types of the most common risks involved:
� Political risk: especially in the developing countries because of the possibility of dramatic overnight political change.
� Technical risk: construction difficulties, for example unforeseen soil conditions, breakdown of equipment
� Financing risk: foreign exchange rate risk and interest rate fluctuation, market risk (change in the price of raw materials), income risk (over-optimistic cash-flow forecasts), cost overrun risk.
BOOT (build�own�operate�transfer)
A BOOT structure differs from BOT in that the private entity owns the works. During the concession period the private company owns and operates the facility with the prime goal to recover the costs of investment and maintenance while trying to achieve higher margin on project. The specific characteristics of BOOT make it suitable for infrastructure projects like highways, roads mass transit, railway transport and power generation and as such they have political importance for the social welfare but are not attractive for other types of private investments. BOOT and BOT are methods which find very extensive application in countries which desire ownership transfer and operations including. Some advantages of BOOT projects are:
� Encourage private investment
� Inject new foreign capital to the country
� Transfer of technology and know-how
� Completing project within time frame and planned budget
� Providing additional financial source for other priority projects
� Releasing the burden on public budget for infrastructure development [6]
BOO (build�own�operate)In a BOO project ownership of the project remains usually with the project company for example a mobile phone network. Therefore the private company gets the benefits of any residual value of the project. This framework is used when the physical life of the project coincides with the concession period. A BOO scheme involves large amounts of finance and long payback period. Some examples of BOO projects come from the water treatment plants. This facilities run by private companies process raw water, provided by the public sector entity, into filtered water, which is after returned to the public sector utility to deliver to the customers.
BLT (build�lease�transfer) Under BLT a private entity builds a complete project and leases it to the government. On this way the control over the project is transferred from the project owner to a lessee. In other words the ownership remains by the shareholders but operation purposes are leased. After the expiry of the leasing the ownership of the asset and the operational responsibility are transferred to the government at a previously agreed price. For foreign investors taking into account the country risk BLT provides good conditions because the project company maintains the property rights while avoiding operational risk.
DBFO (design�build�finance�operate) Design�build�finance�operate is a project delivery method very similar to BOOT except that there is no actual ownership transfer. Moreover, the contractor assumes the risk of financing till the end of the contract period. The owner then assumes the responsibility for maintenance and operation. Some disadvantages of DCMF are the difficulty with long term relationships and the threat of possible future political changes which may not agree with prior commitments. This model is extensively used in specific infrastructure projects such as toll roads. The construction company builds a private entity which is in charge to design and construct an infrastructure for the government which is the true owner. Moreover the private entity has the responsibility to raise finance during the construction and the exploitation period. The cash flows serve to repay the investment and reward its shareholders. They end up in form of periodical payment to the government for the use of the infrastructure. The government has the advantage that it remains the owner of the facility and at the same time avoids direct payment from the users. Additionally, the government succeeds to avoid getting into debt and to spread out the cost for the road over the years of exploitation
DBOT (design�build�operate�transfer)
DCMF (design�construct�manage�finance)Some examples for the DCMF model are the prisons or the public hospitals. A private entity is built to design, construct, manage, and finance a facility, based on the specifications of the government. Project cash flows result from the government�s payment for the rent of the facility. In the case of the hospitals, the government has the ownership over the facility and has the price and quality control. The same financial model could be applied on other projects such as prisons. Therefore this model could be interpreted as a mean to avoid new indebtedness of public finance.Our concept of saving our planate with Norstar subsequent researches and activities, can be applied in nature or driven by more academic and theoretical considerations. Applied research activities might include for any kinds of Trade whereas we have different Module of Trade Facilitation based on EPA. Commodity Module(Sugar, Wheat, Rice, Pulses, Ethanol) other(Oil, Minerals, Gold),Module of Trade Venture Capital(BOT,PPP)in Projects on Infrastructure, Mining, Dismantling:
� border visits, audits and transaction cost evaluations, the documentation, review and analysis of trade procedures, implementation of trade facilitation measures and programme evaluations � business and trade systems analysis, evaluation and assessment of stakeholder control and compliance requirements, business-case development, cost-benefit analysis, project governance and strategy, regulatory impact assessments, development of suitable research methods and fact-finding strategies


Our academic or theoretical driven research might include themes such as:
� trade facilitation and supply chain management ,technology and systems in international trade, business-government relationships, trade operations and policy, trade governance and regulatory institutions, supply chain security, non-tariff barriers and market access, WTO trade facilitation negotiations, aid-for-trade, capacity building and development

 


Trade facilitation and trade logistics expertise includes:
�Customs, "Single Window" and trade modernization programmes, Capacity building, Requirements gathering and business analysis
� Identifying programme obstacles and implementation problems, Business-government cooperation, Setting-up and managing trade facilitation committees, consultation and stakeholder groups, Identifying and implementing trade facilitation measures, Evaluation of stakeholder interests and requirements
� Production of handbooks and training materials, Trade facilitation research and requirements gathering


Expertise in customs and trade procedures includes:
� EU and UK trade and customs procedures, Tariff classification, Origin and Valuation, Supply chain security, Authorized Economic Operator, Export licenses, Veterinary and phytosanitary certificates, Drug-precursors, Organic certificate of inspection
� Trade and transport document requirements, First-time trading, The interface between business and government Many different parties are involved in international trade operations and policy. These include business stakeholders across the supply chain as well as a multitude of government executive agencies. Interests may not always be aligned and can often be conflicting. Policy makers need to consider all stakeholder interests. Interests are often clouded by technical detail, legislation, operational practices, rules and procedures. Taking the right decisions � especially in instances where knowledge and experience is incomplete � is seldom easy.


We can help both business and government stakeholders:
� prepare for meetings with decision makers or business stakeholders, formulate positions and add substance to consultation exercises, assist in trade consultation exercises, develop and give guidance on effective lobbying and communication strategies, establish working business-government relationships, conduct or commission independent research
Critical Environment Issues:
Recycling Project's of Ship breaking at Bangladesh India and Pakistan...............follow

About -
Norstar Unlimited

We are known as "Trade Facilitators" We review how procedures and controls governing the movement of goods across international borders can be improved to reduce associated cost burdens, maximize efficiency.

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