Trading Across Borders

Trading Across Borders

In today’s globalized world, making trade between economies easier is increasingly important for business. Excessive use of paper documents, burdensome customs procedures, inefficient port operations and inadequate infrastructure all lead to extra costs and delays for exporters and importers, stifling trade potential.

What do the indicators cover?

Doing Business records the time and cost associated with the logistical process of exporting and importing goods. Doing Business measures the time and cost (excluding tariffs) associated with three sets of procedures—documentary compliance, border compliance and domestic transport—within the overall process of exporting or importing a shipment of goods. The ranking of economies on the ease of trading across borders is determined by sorting their distance to frontier scores for trading across borders. These scores are the simple average of the distance to frontier scores for the time and cost for documentary compliance and border compliance to export and import (domestic transport is not used for calculating the ranking).

WHAT THE TRADING ACROSS BORDERS INDICATORS MEASURE FOR IMPORT & EXPORT?

Documentary compliance Obtaining, preparing and submitting documents during transport, clearance, inspections and port or border handling in origin economy

Obtaining, preparing and submitting documents required by destination economy and any transit economies

Covers all documents required by law and in practice, including electronic submissions of information as well as non-shipment-specific documents necessary to complete the trade

Border compliance

Customs clearance and inspections

Inspections by other agencies (if applied to more than 10% of shipments)

Port or border handling

Processing of documents during clearance, inspections and port or border handling.

Domestic transport

Loading and unloading of shipment at warehouse, dry port or border

Transport by most widely used mode between warehouse and terminal or dry port

Traffic delays and road police checks while shipment is en route

Where does the economy stand today?

The Trading across Borders indicator refers to a case study scenario of a warehouse in the largest business city of an economy (except for 11 economies for which the data are a population-weighted average of the 2 largest business cities) trading with the main import and export partner through the economy’s main border crossing. Globally, Iran, Islamic Rep. stands at 170 in the ranking of 190 economies on the ease of trading across borders.

What are the details?

The indicators reported here for Iran, Islamic Rep. are based on a set of specific predefined procedures for trading a shipment of goods by the most widely used mode of transport (whether sea or land or some combination of these). The information on the time and cost to complete export and import is collected from local freight forwarders, customs brokers and traders.

Summary of export and import time and cost for trading across borders in Iran

Source: Doing Business database.

Summary of trading details, transport time and documents for trading across borders in Iran

Source: Doing Business database.

Table: Documents needed to Export

Source: Doing Business database.

Table: Documents needed to Import

Source: Doing Business database.

Comments

Leave a Comment

Don’t Miss The Hottest News

Subscribe our Newsletter

Image