OECD Trade Facilitation
OECD Trade Facilitation
Indicators:
Monitoring Policies
up to 2025
March 2025
OECD Trade Facilitation
Indicators
This document, as well as any data and map included herein, are without prejudice to the status of or sovereignty over
any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area.
The statistical data for Israel are supplied by and under the responsibility of the relevant Israeli authorities. The use of
such data by the OECD is without prejudice to the status of the Golan Heights, East Jerusalem and Israeli settlements in
the West Bank under the terms of international law.
Table of contents
FIGURES
Figure 2.1. Most improvements are in areas that enhance border agency co-operation and streamline
trade-related processes 7
Figure 2.2. While border agency co-operation is the top area of progress, it began from a relatively
limited baseline and remains the area with the largest potential for further improvement 8
Figure 2.3. Institutional and regulatory frameworks together with risk management and digitalisation
measures are driving improvements in domestic and cross-border agency co-operation 9
Figure 3.1. Middle-income economies are recording the highest progress in the average trade
facilitation performance 12
Figure 3.2. Progress is occurring in all regions 13
Figure 3.3. Asia-Pacific: Top areas of reform, 2024 13
Figure 3.4. Asia-Pacific: Leading reformers, 2022-24 14
Figure 3.5. Asia-Pacific: Leading performers, 2024 14
Key messages
• This note provides updates on the evolution of border process up to 2024. It shows progress
on trade facilitation – through more efficient border processes – is occurring since 2022 in
all regions as countries seek to ensure that global supply chains remain efficient, adaptable,
and responsive to evolving patterns of trade. New OECD Trade Facilitation Indicators (TFIs)
data highlight that border bottlenecks and red tape were reduced on average by 3%-7% across
regions: Asia – Pacific (4.4%), Europe and Central Asia (3.1%), The Americas (4.4%), Middle East
and North Africa (4.7%), and Sub-Saharan Africa (6.5%).
• Domestic and cross-border agency co-operation are the top areas of progress, yet remain
the hardest to further improve. Domestic border agency co-operation, shaped by a combination
of institutional and regulatory reforms, not only enhanced efficiency within national borders but also
served as a catalyst for stronger cross-border agency co-operation. Already the leading area of
reform in 2022, domestic border agency co-operation laid the groundwork for increased
coordination with trading partners, reinforcing integrated trade facilitation efforts. However, border
agency co-operation began from a relatively limited baseline and holds the largest potential for
further improvement.
• Comprehensive and accessible trade-related information is increasingly available online.
Many economies worldwide have been enriching the information available online on advance
rulings, fees and charges applied, penalty provisions, applicable trade-related legislation, as well
as automated duties and fees databases, dedicated interactive webpages for companies and user
manuals for new systems. Updating and enriching this information remains key to reduce
administrative burdens and to help businesses anticipate and adapt to new policies.
• Further efforts are needed to close the gaps between establishing regulatory frameworks
for trade facilitation and their implementation in practice, particularly when automating
documents and processes. Certified trader programmes, post-clearance audits, and measures for
perishable goods are at the forefront of streamlining border procedures. Better operational
practices are needed, however, to capitalise on these improvements and to making trade
documents and procedures more automated, faster, and easier.
• Increasing efficiencies through simplified and streamlined border processes remains a
critical issue for promoting competitiveness and economic growth through trade costs
reductions. As a result of more efficient border processes, trade costs are estimated to have
declined by up to 5% over the last decade. The implementation of ambitious reforms could deliver
up to 12 percentage points more in trade costs reductions. This also matters for sectors that are
key for the digital and the green economy.
This note provides an overview of the efforts made to expedite the movement, release, and clearance of
goods at the border in 163 economies. The OECD Trade Facilitation Indicators (TFIs) refer to a specific
set of measures that streamline and simplify the technical and legal procedures for intermediate or final
products to be traded internationally. The TFIs follow closely the structure of the WTO Trade Facilitation
Agreement (TFA), providing a means to monitor progress in the implementation of the WTO TFA. In
addition to tracking progress in the regulatory frameworks that support the implementation of the WTO
TFA, the indicators can pinpoint progress and challenges in operational practices for trade facilitation.
Such policies proved to be essential during the COVID-19 pandemic and many other recent supply chain
disruptions, with trade facilitation measures taken at the border making it possible for supply chains to
continue delivering goods where they were needed.
The role of customs authorities and other border agencies is constantly evolving, as are the challenges
and opportunities they face. The dynamic regulatory environment for trade, the growing parcel trade, and
the increasing product safety and security concerns are setting new challenges for enforcement, co-
operation with other agencies, and trade facilitation more broadly. Moreover, while digitalisation provides
opportunities to address many of these challenges, its benefits are not automatic and will depend on border
agencies’ capabilities and the wider policy environment for digital trade.
Against this backdrop, the monitoring of trade facilitation reforms remains key. The OECD has been
monitoring the state of play of the trade facilitation policy environment since 2013 and updates its Trade
Facilitation Indicators (TFIs) biennially. This note sets out the key findings from the latest update of the
TFIs, covering the period 2022-24.
Domestic and border agency co-operation are the trade facilitation areas which improved the most globally
since 2022 (Figure 2.1). It has also served as a catalyst for stronger cross-border agency co-operation.
Already the leading area of reform in 2022, domestic border agency co-operation laid the groundwork for
increased coordination with trading partners, reinforcing integrated trade facilitation efforts. While border
agency co-operation is the top area of progress, it began from a relatively limited baseline and remains the
area with the largest potential for further improvement (Figure 2.2).
The streamlining of procedures and the availability of trade-related information are the other areas showing
notable progress. Although the automation of border processes continues to improve, there is a slowdown
in implementation due to interoperability challenges, regulatory fragmentation, and uneven adoption of
digital standards across countries. Similar technical challenges affect areas of advance rulings, appeal
procedures, fees, and charges.
Figure 2.1. Most improvements are in areas that enhance border agency co-operation and streamline
trade-related processes
Percentage change (%) by TFI area, 2022-24
Information availability
Advance rulings
Simplification and harmonisation of
documents
Appeal procedures
Note: The figure shows the percentage change between 2022-24 by trade facilitation area.
Source: OECD TFIs database, 2025 (https://sim.oecd.org/default.ashx?ds=TFI).
Figure 2.2. While border agency co-operation is the top area of progress, it began from a relatively
limited baseline and remains the area with the largest potential for further improvement
2 = maximum performance that can be achieved by area, 2012-24
2.0
1.8
2012 --> 2024
1.6
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0.0
Fees and Governance Involvement of Streamlining of Information Appeal Simplification Advance rulings Automation of Domestic Cross-border
charges and impartiality the trade border availability procedures and border border agency agency co-
community processes harmonisation processes co-operation operation
of documents
Note: The figure shows the global average by area between 2012 and 2024.
Source: OECD TFIs database, 2025 (https://sim.oecd.org/default.ashx?ds=TFI).
Countries have been scaling up investments in domestic border agency co-operation introduced since the
COVID-19 pandemic, when flexible approaches helped adapt border processes and facilitate trade of
selected goods. The increasing pressure from global supply chain disruptions and evolving patterns of
trade have accelerated the need to formalise previously informal or sector-specific taskforces. This is
reflected in:
• Advances in the institutional mechanisms that support inter-agency co-ordination domestically by
establishing a permanent technical Secretariat and increasing the number of relevant agencies.
These structures also meet regularly to develop strategy and oversee implementation of domestic
border agency co-operation, while proceedings are increasingly being made publicly available,
albeit at various levels of comprehensiveness.
• Advances in regulatory frameworks that allow more agencies to delegate control to another agency
involved in the management of cross-border trade, particularly Customs, as well as to share
intelligence with a view to improving risk management efficiency and to managing certified trader
(Authorised Operators, AOs) programmes.
Cross-border agency co-operation mirrors the enhanced domestic co-operation on risk management and
certified trader systems. Examples of reforms include:
• Brunei Darussalam, Indonesia, Malaysia, the Philippines, Singapore, and Thailand have been
operationalising the ASEAN Authorised Economic Operator (AEO) Mutual Recognition
Arrangement (AAMRA), signed in September 2023. Under the AAMRA, certified AEOs are set to
benefit from expedited customs clearance, reduced documentation requirements, and priority
treatment during inspections.
• In Central America, the advancement of the Central American Digital Trade Platform (PDCC) has
been enhancing co-ordination of data requirements and IT systems across countries in the region
such as Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua. In addition, 11 economies
in Latin America and the Caribbean (Argentina, Bolivia, Brazil, Colombia, Costa Rica, Chile,
Dominican Republic, Guatemala, Paraguay, Peru, and Uruguay) have been operationalising a
regional arrangement for AEOs set up in 2022.
• In the Central Asia region, the development of trade and transport corridors – such as the Middle
Corridor (Trans-Caspian International Transport Route) or the China-Kyrgyz Republic-Uzbekistan
railway for multimodal freight transport – has also been a stepping stone towards better co-
ordination of data requirements and IT systems.
• In the European Union area, efforts have focused on strengthening capacities on risk management
co-operation. This followed the launch of the Common Customs Risk Management System 2
(CRMS2), a comprehensive upgrade designed to bolster the real-time exchange of risk-related
information among customs administrations in the EU, Norway and Switzerland. CRMS2
addresses a broad spectrum of risks, including health hazards from counterfeit medical products,
intellectual property rights infringements, and environmental and product safety concerns. By
enabling instant alerts – such as Risk Information Forms (RIFs) – to be shared across various
customs offices, CRMS2 increased inter-agency synergies in terms of shared risk profiling of
traders or goods, or of risk analysis and exchange of the results thereof.
Cross-border agency co-operation is largely driven by the improved co-ordination mechanisms between
Customs agencies. This includes those mechanisms that are linked to the co-ordination of data
requirements and IT systems (Figure 2.3).
Figure 2.3. Institutional and regulatory frameworks together with risk management and digitalisation
measures are driving improvements in domestic and cross-border agency co-operation
Domestic border agency co-operation Cross-border agency co-operation
Cross-border co-
ordination /
Regular meetings of inter- harmonisation of
agency co-ordination Shared results of inspections Authorised operators Risk management co- Systematic sharing the different
mechanisms and controls among agencies programmes operation of control results computer systems
Note: The size of the individual squares highlights the contribution of the showcased measures to the improvement in the areas of domestic and
cross-border agency co-operation, respectively.
Source: OECD TFIs database, 2025 (https://sim.oecd.org/default.ashx?ds=TFI).
Efforts to involve more agencies in these mechanisms were less successful domestically than hoped for
due to interoperability challenges between agencies’ systems and the challenges to fully integrate other
relevant border agencies (e.g. sanitary and phytosanitary agencies, health agencies, licensing agencies,
environmental agencies, product standards and other regulatory agencies, security and counterfeit
prevention agencies) in systems such as Single Windows. Similar challenges are encountered in risk
management systems; these continue to improve for Customs agencies but there is less of an uptake by
other agencies, which implies that silos continue to exist between different enforcement domains.
Measures accelerating trade flows while ensuring regulatory compliance are driving progress in
streamlining border procedures. This includes improvements in the systems for certified traders, post-
clearance audits (PCAs), and perishable goods.
• More economies are not only introducing certified trader programmes, but are increasing focus on
the certification time, costs, and benefits granted.
• Post-Clearance Audits have shifted the focus from time-consuming border inspections to risk-
based, post-release compliance checks. Standard policies and procedures are increasingly
ensuring the conduct of PCAs in a transparent and risk-based manner.
• Priority lanes, storage facilities, and fast-track clearance for food and pharmaceuticals are
increasingly ensuring that time-sensitive shipments reach markets before spoilage.
Further progress in automation of border processes is limited due to the lagging implementation of
regulatory frameworks as well as interoperability issues. Implementation gaps are most notable in pre-
arrival processing, certified trader programmes, PCAs, where the share of trade transactions covered in
practice remains low in many countries.
That said, some of the digital solutions implemented during COVID-19 in several economies continued to
be integrated in existing customs and border management systems. This includes digital certificates and
signatures (e.g. Cambodia, Indonesia); functions for the release of goods subject to conditions
(i.e. guarantees) in the automated processing system (e.g. Kyrgyz Republic, Lesotho, Romania, Sierra
Leone, Togo); and integration of electronic payment with the declaration/cargo processing systems
(e.g. Costa Rica).
Asia-Pacific and Europe and Central Asia regions are at the forefront of legal and regulatory reforms to
digitalise border processes. For instance, since 2024, APEC economies have been carrying out work on
mapping the challenges and gaps to adopting or maintaining a legal framework that considers UNCITRAL
Model Law on Electronic Transferable Records (MLETR).
Businesses engaging in international trade require real-time, transparent, and easily accessible information
in order to remain compliant. Many economies worldwide have been enriching the information available
online on advance rulings, fees and charges applied, penalty provisions, applicable trade-related
legislation, as well as automated duties and fees databases, dedicated interactive webpages for
professional users / companies, and user manuals for new systems. Since 2022, several countries have
implemented or upgraded their Trade Information Portals (Kazakhstan, Kyrgyzstan, Tajikistan,
Turkmenistan, and Uzbekistan in Central Asia; Vanuatu and Tuvalu in Asia-Pacific; Uganda in
Sub-Saharan Africa) to enhance transparency and efficiency in international trade. These portals provide
comprehensive, user-friendly platforms that consolidate all relevant trade-related information, simplifying
the process for businesses to navigate export-import regulations.
Many countries still face technical shortcomings in systems of advance rulings, appeal procedures, and
fees and charges. Advance rulings often lack digital accessibility and standardisation, making it difficult for
businesses to obtain clear guidance before shipments. Challenges also exist in terms of the possibility to
request a review of an advance ruling or its revocation / modification as well as the motivation of the refusal
to issue an advance ruling. Appeal procedures can often be slow and complex, discouraging traders from
contesting certain decisions. Additionally, fees and charges are often unclear or inconsistently applied,
thereby increasing trade costs and uncertainty.
3 TFIs Performance:
Regional Highlights
Progress on trade facilitation is occurring across all country income groups and regions as countries try to
ensure that global supply chains remain efficient, adaptable, and responsive to evolving patterns of trade.
Low-income and lower-middle income economies continue to improve their performance, particularly in
areas of transparency and predictability, and streamlining of border processes. Upper-middle income
economies have made the greatest progress among country income groups (Figure 3.1). The timeline for
TFA Category C measures (i.e. TFA measures which can be implemented after a transitional period and
upon the receipt of technical assistance and support for capacity building) due for implementation
continues well into the 2040s (WTO, 2025[1]), underscoring the need for continued and targeted trade
facilitation reforms.
Figure 3.1. Middle-income economies are recording the highest progress in the average trade
facilitation performance
2 = maximum performance that can be achieved by area
Transparency and predictability Automating and streamlining processes Border agency co-operation Governance and impartiality
0
2022 2024 2022 2024 2022 2024 2022 2024 2022 2024
Low-income Lower-middle income Upper-middle income High-income non-OECD OECD
Note: Transparency and predictability is the average of indicators TFIs A, B, C, D, E. Automating and streamlining processes is the average of
TFIs F, G, and H. Border agency co-operation is the average of TFIs I and J. Income groups based on World Bank income classification.
Source: OECD TFIs database, 2025 (https://sim.oecd.org/default.ashx?ds=TFI).
The reduction in border bottlenecks and red tape are also notable across all regions covered.
Improvements since 2022 in the overall trade facilitation environment are on average in the range of 3%-
7% across regions: Asia–Pacific (4.4%), Europe and Central Asia (3.1%), The Americas (4.4%), Middle
East and North Africa (4.7%), and Sub-Saharan Africa (6.5%) (Figure 3.2).
0
2022 2024 2022 2024 2022 2024 2022 2024 2022 2024
Asia-Pacific Europe and Central Asia The Americas Middle East and North Africa Sub-Saharan Africa
Note: Transparency and predictability is the average of indicators TFIs A, B, C, D, E. Automating and streamlining processes is the average of
TFIs F, G, and H. Border agency co-operation is the average of TFIs I and J. The Americas region includes economies in North America, Central
America, and South America. Regional groups based on World Bank regional classifications.
Source: OECD TFIs database, 2025 (https://sim.oecd.org/default.ashx?ds=TFI).
Asia-Pacific
• Leading reformers in the Asia-Pacific region in 2024 are: Lao PDR; Kiribati; Cambodia; Maldives;
Tonga; Vanuatu; The Philippines; Thailand; Indonesia; Myanmar; Viet Nam.
• Leading performers in the region in 2024 are: Hong Kong, China; Japan; Singapore; Korea;
Australia; New Zealand; The People’s Republic of China (hereafter “China”); Malaysia; Thailand;
India.
• Almost one in two economies in the Asia-Pacific region improved its performance in areas of
domestic border agency co-operation and information availability, while about one in three
economies improved its performance in cross-border agency co-operation.
• Areas where performance is most heterogeneous in this region are advance rulings, automation,
and cross-border agency co-operation.
Note: The chart shows the share of economies in the regional group that improved their performance for each area.
Source: OECD TFIs database, 2025 (https://sim.oecd.org/default.ashx?ds=TFI).
Lao PDR
Kiribati
Cambodia
Maldives
Tonga
Vanuatu
Philippines
Thailand
Indonesia
Myanmar
Viet Nam
Note: The figure highlights the percentage change between the average trade facilitation performance in 2022-24 compared to 2020-22.
Source: OECD TFIs database, 2025 (https://sim.oecd.org/default.ashx?ds=TFI).
• Leading reformers in the Europe and Central Asia region in 2024 are: Uzbekistan; Kyrgyz Republic;
Tajikistan; Kazakhstan; Serbia; Romania; Montenegro; Moldova; Bosnia and Herzegovina; North
Macedonia.
• Leading performers in the region in 2024 are: Netherlands; Sweden; Norway; Croatia; Portugal;
Denmark; United Kingdom; Luxembourg; Finland; Estonia.
• More than three-quarters of economies in the Europe and Central Asia region improved their
performance in domestic border agency co-operation, almost a quarter of economies improved
their performance in cross-border agency co-operation, and one in three economies improved its
performance in streamlining of processes.
• Areas where performance is most heterogeneous in the region are cross-border agency co-
operation, simplification and harmonisation of documents, and domestic border agency co-
operation.
Note: The chart shows the share of economies in the regional group that improved their performance for each area.
Source: OECD TFIs database, 2025 (https://sim.oecd.org/default.ashx?ds=TFI).
Uzbekistan
Kyrgyz Republic
Tajikistan
Kazakhstan
Serbia
Romania
Montenegro
Moldova
North Macedonia
Note: The figure highlights the percentage change between the average trade facilitation performance in 2022-24 compared to 2020-22.
Source: OECD TFIs database, 2025 (https://sim.oecd.org/default.ashx?ds=TFI).
Note: The database covers 48 economies in the Europe and Central Asia region.
Source: OECD TFIs database, 2025 (https://sim.oecd.org/default.ashx?ds=TFI).
The Americas
• Leading reformers in The Americas region in 2024 are: Jamaica; Nicaragua; Guatemala; Ecuador;
Costa Rica; El Salvador; Honduras; Dominican Republic; Trinidad and Tobago; Paraguay.
• Leading performers in the region in 2024 are: United States; Canada; Costa Rica; Chile; Mexico;
Colombia; Peru; Brazil; Panama; Uruguay.
• Around two-thirds of economies in The Americas region improved their performance in domestic
border agency co-operation and streamlining of procedures, while one in three economies
improved its performance in cross-border agency co-operation.
• Areas where performance is most heterogeneous in the region are advance rulings, cross-border
agency co-operation, and automation.
Note: The chart shows the share of economies in the regional group that improved their performance for each area.
Source: OECD TFIs database, 2025 (https://sim.oecd.org/default.ashx?ds=TFI .
Jamaica
Nicaragua
Guatemala
Ecuador
Costa Rica
El Salvador
Honduras
Dominican Republic
Trinidad and Tobago
Paraguay
Note: The figure highlights the percentage change between the average trade facilitation performance in 2022-24 compared to 2020-22.
Source: OECD TFIs database, 2025 (https://sim.oecd.org/default.ashx?ds=TFI).
• Leading reformers in the Middle East and North Africa region in 2024 are: Jordan; Kuwait; Qatar;
Tunisia; United Arab Emirates; Saudi Arabia; Israel; Oman; Egypt; Morocco.
• Leading performers in the region in 2024 are: Israel; Oman; Morocco; United Arab Emirates; Qatar;
Saudi Arabia; Tunisia; Bahrain; Egypt; Jordan.
• Around two-thirds of economies in the Middle East and North Africa region improved their
performance in domestic border agency co-operation, streamlining of procedures, and information
availability.
• Areas where performance is most heterogeneous in the region are automation, cross-border
agency co-operation, and involvement of the trade community.
Figure 3.12. Middle East and North Africa: Top areas of reform, 2024
Share of economies in regional group (%)
Domestic border agency co-operation Streamlining of procedures Information availability
Note: The chart shows the share of economies in the regional group that improved their performance for each area.
Source: OECD TFIs database, 2025 (https://sim.oecd.org/default.ashx?ds=TFI).
Figure 3.13. Middle East and North Africa: Leading reformers, 2022-24
Percentage change (%) average trade facilitation performance
Jordan
Kuwait
Qatar
Tunisia
United Arab Emirates
Saudi Arabia
Israel
Oman
Egypt
Morocco
0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10%
Note: The figure highlights the percentage change between the average trade facilitation performance in 2022-24 compared to 2020-22.
Source: OECD TFIs database, 2025 (https://sim.oecd.org/default.ashx?ds=TFI).
Figure 3.14. Middle East and North Africa: Leading performers, 2024
2 = maximum performance that can be achieved by area
Note: The database covers 14 economies in the Middle East and North Africa region.
Source: OECD TFIs database, 2025 (https://sim.oecd.org/default.ashx?ds=TFI).
Sub-Saharan Africa
• Leading reformers in the Sub-Saharan Africa region in 2024 are: Sierra Leone; Ethiopia; Rwanda;
Namibia; Zambia; Côte d’Ivoire; Togo; Ghana; The Gambia; Benin.
• Leading performers in the region in 2024 are: Mauritius; South Africa; Kenya; Senegal; Rwanda;
Botswana; Benin; Cameroon; Namibia; Tanzania.
• Around two-thirds of economies in the Sub-Saharan Africa region improved their performance in
streamlining of procedures, while around one in two economies improved its performance in
domestic border agency co-operation and information availability.
• Areas where performance is most heterogeneous in the region are advance rulings, cross-border
agency co-operation, and automation.
Note: The chart shows the share of economies in the regional group that improved their performance for each area.
Source: OECD TFIs database, 2025 (https://sim.oecd.org/default.ashx?ds=TFI).
Sierra Leone
Ethiopia
Rwanda
Namibia
Zambia
Côte d'Ivoire
Togo
Ghana
Gambia, The
Benin
Note: The figure highlights the percentage change between the average trade facilitation performance in 2022-24 compared to 2020-22.
Source: OECD TFIs database, 2025 (https://sim.oecd.org/default.ashx?ds=TFI).
Trade facilitation reforms since the conclusion of the TFA are estimated to have helped to reduce trade
costs by almost 5% on average worldwide (Figure 4.1). Impacts from reductions in border bottlenecks and
red tape are strongest for developing countries, particularly low-income and lower-middle income
economies for which trade costs remain the highest, and for manufacturing sectors as chemicals, electrical
equipment, machinery, paper and wood products, and textiles.
At a regional level, the strongest impacts are in Sub-Saharan Africa and Asia-Pacific regions, with up to
6% decreases in trade costs resulting from trade facilitation reforms. They are followed by Latin America
and the Caribbean with 4.7%, Europe and Central Asia with 3.4%, and Middle East and North Africa with
more than 3.3%.
Further trade facilitation reforms are critical for promoting competitiveness and economic growth through
trade costs reductions. Continuing to improve the efficiency of border processes can deliver up to
12 percentage points more in trade costs reductions than those experienced so far across the regions
covered (Figure 4.1).
Figure 4.1. Trade costs reductions associated to trade facilitation reforms a decade after the
conclusion of the WTO TFA (2012-22): What has happened so far and looking ahead
Income groups
Trade cost reduction observed Gap with potential reduction from full reform implementation worldwide
-2
-4
-6
-8
-10
-12
-14
-16
-18
Low income Lower middle income Upper middle income High-income non-OECD OECD economies
Regional groups
Trade cost reduction observed Gap with potential reduction from full reform implementation worldwide
-2
-4
-6
-8
-10
-12
-14
-16
-18
-20
Asia-Pacific Europe and Central Asia Latin America and the Middle East and North Africa Sub-Saharan Africa
Caribbean
Note: The figure presents the trade cost implications of fully implementing trade facilitation reforms as measured by the TFIs. Analysis using
trade costs (manufacturing and agriculture) from the UNESCAP – World Bank database for the period 2012-22.
Source: Calculations based on methodology in Sorescu and Bollig (2022[2]).
Figure 4.2. The trade flow response to improving operational practices is stronger than the
implementation of regulatory frameworks
Percentage improvement from a 1% improvement in trade facilitation areas
Transparency and predictability Automating and streamlining of border processes
Regulatory framework Implementation in practice Regulatory framework Implementation in practice
1.5 1.5
1.3 1.3
1.1 1.1
0.9 0.9
0.7 0.7
0.5 0.5
0.3 0.3
0.1 0.1
-0.1 -0.1
Asia-Pacific Europe and LAC MENA Sub-Saharan Asia-Pacific Europe and Central LAC MENA Sub-Saharan Africa
Central Asia Africa Asia
Note: The figure shows the coefficients of the TFI variables (by category: regulatory framework and operational practices) regressed against
trade flows, controlling for other variables. Estimates use trade flows based on the USITC ITPD-E database for the period 2012-19.
Source: Calculations based on methodology in Sorescu and Bollig (2022[2]).
• Further reforms to border agency co-operation are essential to strengthen international co-
operation in trade facilitation and to help border agencies facilitate the smooth flow of goods while
ensuring compliance with evolving trade regulations, security risks, and economic policies.
• Closing the gap between the establishment of regulatory frameworks and their implementation in
practice is key to unlocking greater costs savings, boosting trade flows, and strengthening
economic resilience in an increasingly complex trade landscape. By minimising delays, lowering
compliance burdens, and increasing supply chain efficiency, these reforms enhance global
competitiveness for businesses of all sizes and the ability to seize opportunities from the digital
and green economy.
• The automation and streamlining of procedures matter for resilience because they ensure that
global supply chains remain efficient, adaptable, and responsive to disruptions. Seamless trade
procedures allow businesses to quickly reroute goods, adjust inventory flows, and maintain access
to essential inputs during supply chain disruptions.
• The regulatory environment underpinning trade facilitation at the border is increasingly intertwined
with the broader regulatory environment for digital trade. The digitalisation of trade-related
documents and processes requires for digitalisation efforts to extend beyond border formalities to
all stages of trade transactions. In addition, growing volumes of cross-border parcels require
effective trade facilitation policies that balance reducing of administrative costs with managing
security risks.
• Investment in transparency measures is a priority. These measures are relevant for the ability to
adapt in a context of policy and regulatory changes, including during crises or as part of the digital
and green transformations.
The eleven TFIs are composed of several specific, precise, and fact-based variables related to existing
administrative processes at the border and their implementation in practice (e.g. the average time between
publication and entry into force of new or adjusted trade-related regulations, the proportion of trade
transactions that can be processed in advance to the arrival of goods at the border, or the coverage of
certified trader programmes). The indicators take values between zero and two, with two indicating the
best trade facilitation policy environment which can be achieved.
The TFIs mirror the substantive provisions covered by Section I of the TFA, spanning TFA Article 1
(Publication and Availability of Information) through to Article 12 (Customs Co-operation). An additional
OECD indicator going beyond the scope of the TFA has been added to capture elements of good
governance and impartiality of border administrations.
The indicators can support policymakers in developed and developing countries alike to assess the state
of their trade facilitation efforts, pinpoint challenges, and identify opportunities for progress.
The TFIs cover four main policy areas.
• Transparency and predictability, which includes:
o TFI (A) Information availability – publication of customs and trade-related regulations and
information, feedback mechanisms, and specific functions for businesses (dedicated
webpages/portals, user manuals etc.).
o TFI (B) Involvement of the trade community – structures, guidelines, and frameworks for
consultations with stakeholders.
o TFI (C) Advance rulings – the rules and processes applying to prior statements by the
administration to requesting traders concerning the classification, origin, valuation method, etc.,
applied to specific goods.
o TFI (D) Appeal procedures – the possibility and modalities to appeal administrative decisions
by border agencies.
o TFI (E) Fees and charges – disciplines on the fees and charges imposed on imports and
exports.
• Automating and streamlining procedures, which includes:
o TFI (F) Documents – harmonisation and simplification of trade-related documents, in
accordance with international standards.
o TFI (G) Automation – aspects such as the electronic exchange of data and use of automated
risk management.
o TFI (H) Procedures – aspects such as the streamlining of border control (inspections,
clearance), implementation of trade single windows, or certified trader programmes.
References
Sorescu, S. and C. Bollig (2022), “Trade facilitation reforms worldwide: State of play in 2022”, [2]
OECD Trade Policy Papers, No. 263, OECD Publishing, Paris,
https://doi.org/10.1787/ce7af2ce-en.