1. SMEs And
The WCO Economic Competitiveness
Package
SME - Backbone Of Global
Economy
Shantanu Bhadkamkar
Chairman FFFAI

2. FFFAI
 Law Compliant
 Tax Efficient
 Best Practices
The FFFAI works to bring about improvements in
Customs policies and practices on a global basis

3. Perceptions
 SME Compliance Resistant
 Tax
Many SMEs involved in export activities do not
export directly, but indirectly via intermediaries
such as traders or trading houses, exporting
companies

4. The Contribution Of SMEs
 Work Closely With SME
o Train
o Update

5. Constraints & Limitations
 Limited Resources
 Security Measures
 SAFE Framework Of Standards

6. Studies For Facilitation
 The structure of transport, over the years, has
changed considerably. In global supply
chains, increasingly the cargo moves on Door To
Door and on multimodal transport basis. As the
structure of international transport has
changes, the laws of transport, including customs
laws, need to change accordingly.

7. Key Issues
 Each Country Has
 Different Share of SME
 Concerns Are Different
 Different Priorities To Issues
 Export & Import

8. SME – India Generic Example
 SME Ministry : Credit Rating, 75% subsidy -
Reduction in interest rates.
 Similar Support AEO Status qualification
 Similar Exercise support for compliance, security
And Meeting Other Standards

9. Way Forward
 Countries that have a large share of SME's should
develop service strategies focused on SME's
 MIS based management techniques
 Advance Ruling Authority for SME
 Single Window Facility
 Improve Coordination Between Relevant Agencies And
Further Simplify Trade Procedures
 Community Network
 Online transmission of data from the customs where
export entry is made to the destination, and use of the
same as import manifest; instead of carriers and
forwarders being required to file advance
manifest/consolidation manifest

10. National Customs Administration
 Nodal Officer for SME:
 Policy and Processes
 Coordinator - Customs Brokers National
Association, Warehousing / Freight
Stations, National Association for SME, Ministry for
SME Training & Capacity Building Knowledge
Dissemination
WCO, National Customs Administrations And
Customs Brokers Can Work Together To
Deploy, Refine And Target Such Training More
Accurately

11. Customs Broker
 Customs Brokers Along With Warehouse keepers
can provide support throughout customs
procedures Customs Brokers, Warehouse
keepers can be authorised by Customs to assist
in customs controls
 Customs Brokers / Custom House Agents have
common goals of facilitation of fast movement of
goods, secure supply chains and prevention of
the leakage of revenue; therefore, Capacity
Building & Development of Customs Brokers /
Custom House Agents should be integral part of
Capacity Building initiatives of the WCO & it’s
Member Customs Administrations.
 Compare with Other Professionals CPA, Lawyer

12. The Contribution Of SMEs to
GDP
 Select countries for reference purpose is:
 China 60%
 Germany 57%
 Japan 55%
 Korea 50%
 Malaysia 47%
• All these figures are close approximation and might change
According to World Bank data, the percentage contribution of SMEs to
GDP is as follows:
 High Income Countries – 50 – 55% of GDP:
UAE, Singapore, Qatar, Austria, Germany, Denmark, France, Norway, U
S, UK (many countries of the EU)
 Middle Income Countries – 35 – 40% of GDP
China, India, Brazil, Malaysia, Mexico, Russia, Large parts of Latin
America, Angloa, Ghana, Belarus, Romania, Ukraine, Malaysia, Philippi
nes and Thailand
 Low Income Countries – ~ 15% of GDP
Bangladesh, Cambodia, Kenya, Mozambique, Uganda, Zimbabwe, Mai
nly Sub-Saharan Africa and South Asia select countries (The above
countries are few examples from an exhaustive list)

13. Trade Facilitation
While TF frequently refers to all measures that can be
taken to facilitate and ease trade flows, according to
Damuri (2006), there is no standard formal definition
of TF. In a broader sense of the term, as explained in
Damuri (2006), trade facilitation can be defined as
any action intended to reduce transaction costs which
affect the international movement of
goods, services, investments and people. In this
sense, the term covers all types of non-tariff
measures to trade such as technical
standard, sanitary and phytosanitary (SPS) and
environmental-related regulation, as well as other
domestic business climate related regulations and all
types of infrastructure issues. In a narrow sense, the
scope of trade facilitation is generally limited to
customs procedures and related formalities involved