The Government, in its Pre-Budget Report, has promised a review into the cost to business of complying with international trade regulation.
Malcolm McKinnon, Chief Executive of SITPRO, said, "We welcome this Review, and look forward to working closely with BERR and HMRC to develop and deliver the action plan. For almost 40 years SITPRO has championed the case for reducing trade transaction costs through trade facilitation – the simplification, harmonisation, standardisation and modernisation of trade procedures.
"Working regularly with business stakeholders – exporters, importers, port operators, shippers, freight forwarders, banks and many others – SITPRO has done much to advance the cause of better border regulation. But, as always, more needs to be done. New challenges such as border security measures affect the cost of moving goods internationally, while a lack of effective border agency co-ordination imposes wasteful duplication and clearance delays."
A recent study commissioned by SITPRO put the cost of paper documentation in the perishable foods import supply chain at over £1 billion, most of which could be saved through straight-through data processing ("STP"). A frequently quoted study from OECD in 2003 estimated that just a 1% reduction in trade transaction costs could bring global welfare gains of $40 billion.
Mr McKinnon concludes, "SITPRO is keen to engage with stakeholders across the UK as part of this new review. We will issue a consultation document in the New Year and plan to meet with businesses in all regions of the UK."Notes for Editors
The Chancellor's Pre-Budget Report said, "international trade represents a significant proportion of GDP and it is crucial that domestic trade regulation is as easy to comply with as possible, in order for UK based firms to remain internationally competitive. The Government will take forward a Department for Business, Enterprise & Regulatory Reform and HMRC led work programme to review the cost to business of complying with international trade regulation and put forward an action plan alongside the 2009 Pre-Budget Report setting out how it will reduce costs to business."
SITPRO, the UK's Trade Facilitation Agency, was established in 1970 to simplify international trade and much of its work has focussed upon improving the procedures at ports and borders, looking at issues such as improving the arrangements for inspecting goods at the border and streamlining the submission of data to government.
SITPRO is a non-departmental public body funded by the Department for Business Enterprise and Regulatory Reform and undertakes policy work at national, European and international levels. For further information visit SITPRO's website at http://www.sitpro.org.uk/.
SITPRO News Release - 27 November 2008
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