Trade Facilitation Centre

Varanasi

Jepranshu Aganivanshi

Arts and Crafts Industry - Varanasi

Trade Facilitation Center - Varanasi Jepranshu Aganivanshi

Introduction to Trade Facilitation Centre

In a narrow sense, trade facilitation efforts could simply address the logistics of moving goods through ports
or more efficiently moving documentation associated with cross-border trade. In recent years, the definition
has often been broadened to include the environment in which trade transactions take place. This includes

transparency and professionalism of customs and regulatory environments, as well as harmonization of

standards and conformance to international or regional regulations. (UN Report)

Trade facilitation revolves around the reduction of all the transaction costs associated with the enforcement of
legislation, regulation, and administration of trade policies. It involves several agencies such as customs,
airport authority, port authority, central bank, trade ministry etc. The main objective is to reduce the cost of
doing business for all parties by eliminating unnecessary administrative burdens associated with bringing
goods and services across borders. (Kelkar Report)
Junlan Shang and Ping Zhou (2012) through their analysis of the gravity model found that trade facilitation
could improve trade much more than tariff reductions.
Zhongying Sun (2009) applied a gravity model in his study of the role of trade facilitation; the results showed

that the elasticities were different for the various trade facilitation measures.
Trade Facilitation Center - Varanasi Jepranshu Aganivanshi

Some common methods of trade facilitation services - China

Transportation facilitation mainly refers to whether: (a) infrastructure, including ports, canals and
other areas of water transportation, can meet business requirements; (b) air transport promotes
the countrys commercial development; and (c) infrastructure maintenance and development are
scientifically planned and have adequate financial Support.
Customs clearance refers to simplifying customs procedures through new technology in order to
increase customs clearance efficiency.

Institutions and policies mainly refers to trade-related rules and policies, including whether: (a)
competition-related laws and regulations limit unfair competition effectively; (b) the protection
of intellectual property rights is fully implemented; (c) the legal and regulatory framework
promotes the competitiveness of enterprises; (d) government policy is transparent; and (e)
bureaucracy, bribery and corruption have hindered commercial and
trading activities.

The e-commerce includes the hardware and software environment for e-commerce development.
Trade Facilitation Center - Varanasi Jepranshu Aganivanshi

Trade Facilitation Center - Varanasi Jepranshu Aganivanshi

Kolkata holds a share of around 64 per cent for the total trade being done towards Bangladesh
and other South East Asian countries which is then connected with other parts of the world.
Therefore a good and easy mode of connectivity between Varanasi and Kolkata will provide a
better scope for the handicraft industry of Varanasi.
Trade Facilitation Center - Varanasi Jepranshu Aganivanshi

From

the

survey

analysis

presented in the left hand side of

this box, the first two services

i.e.

customs

and

infrastructure

transport

are

found

comparatively better than the

rest. It implies that services
related with banks, hotels and
restaurants,

servicing

communications
needed
emphasis

to
for

facilities

be

given

more

and

are
more

efficient

functioning of the present trade

facilitation centres present in the

Indian boundaries.
Source Ravi Ratnayeke et ll. Impacts of trade facilitation measures.

Trade Facilitation Center - Varanasi Jepranshu Aganivanshi

Some other issues identified from

the same survey in the Indian
trade facilitation centers are that
of

presence

of

local

mafia,

religious tensions, cheating and

fraud

cases

and

strikes

and

frequent closedown of operations

and management. It presents a
general picture of India however
and hence such feedback survey
should be taken in Varanasi ro
better understand the current
situation as per the perspectives
of the local craftsmen.

Source Ravi Ratnayeke et ll. Impacts of trade facilitation measures.

Trade Facilitation Center - Varanasi Jepranshu Aganivanshi

Reduction in Overall Trade Cost

Brand Management

Increasing public awareness

Comfortable Business Environment

Transportation linkages

Setting up of Institutions for

providing guidelines and cooperation for the workers and the
owners.

E-commerce
Initiatives like International
Handicraft Mela

Quality improvement by means of

training schedules and programs

Incentivisation for a certain phase

Recommendations for Trade Facilitation

Centre in Varanasi
Trade Facilitation Center - Varanasi Jepranshu Aganivanshi

References :Ratnayake Ravi. Ratna, Sudesh, Rajan. Ferracane, Francesca, Martina. Duval, Yann. Impacts of trade facilitation
measures on poverty and inclusive growth : Case studies from Asia. United Nationas ESCAP.
Sengupta, Nirmal & Bhagabati, Moana. A Study of Trade Facilitation Measures From WTO Perspective (2003).

Madras Institute of Development Studies

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