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https://www.oecd.org/en/publications/better-borders-for-trade-traceability-and-enforcement_b5dea5f5-en.html
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Title page 1
Contents 6
Foreword 4
Acknowledgements 5
Abbreviations 9
Executive Summary 10
Key findings 10
Key considerations 12
1. New supply chain realities are bringing trade facilitation and traceability together 13
1.1. Trade facilitation as a growing policy priority in a changing global landscape 14
1.1.1. The WTO Trade Facilitation Agreement provides a global baseline for modern border management 14
1.1.2. Supply chain disruptions have given rise to a new resilience agenda 16
1.1.3. Trade facilitation can offer a competitive edge 17
1.2. From trade facilitation to traceability: Five forces reshaping border processes 19
1.2.1. Policy considerations are expanding beyond traditional objectives of border control 20
1.2.2. Information requirements for trade-related measures are changing 20
1.2.3. Information is increasingly supporting implementation and compliance 20
1.2.4. Implementation and enforcement are involving a wider range of actors 22
1.2.5. Conformity assessment needs are becoming more complex in key sectors 23
1.3. Areas of operational integration between trade facilitation and traceability 23
1.3.1. Operational integration matters for co-ordination, compliance cost reduction and flexibility 23
1.3.2. Digital readiness and data protection are shared foundations of trade facilitation and traceability 27
1.3.3. Critical minerals and other strategic sectors illustrate the growing integration of trade facilitation and traceability 28
1.4. A framework for analysing the operational integration challenge 30
References 30
Notes 35
2. Many traceability requirements overlook the practical role of border processes 36
2.1. From carbon-intensity to broader supply chain traceability requirements 37
2.2. Traceability implications for border implementation 39
2.2.1. Border implementation can be more complex, as illustrated by carbon-intensity requirements 39
2.2.2. Wider traceability needs can reshape the actors and information involved in border processes 41
2.2.3. Guidance is limited on how enforcement interacts with customs procedures and trade facilitation tools 41
2.3. Traceability implications for trade facilitation 44
2.4. Uneven readiness for implementing traceability-related requirements 45
References 46
Notes 47
3. Tracing product lifecycles requires trade facilitation adaptations 48
3.1. Understanding the product environmental lifecycle 49
3.2. Mapping lifecycle-related border challenges 50
3.2.1. Complying with production environmental traceability can be complex for both customs and traders 50
3.2.2. Classifying and verifying goods in the use segment can be challenging at the border 51
3.2.3. The end-of-life segment can create some of the most difficult classification and enforcement problems at the border 51
3.3. Integrating lifecycle requirements into trade facilitation systems through the environment-related TFIs 55
3.4. Progress and gaps in integrating environment-related requirements into trade facilitation systems 56
3.4.1. Progress differs sharply across the product lifecycle requirements 57
3.4.2. Production traceability information is expanding, but is still fragmented 58
3.4.3. Classification frameworks for the use segment are evolving faster than their implementation 59
3.4.4. End-of-life circular flows expose the deepest operational gaps 60
References 62
Notes 63
4. Digital readiness may enable efficient traceability at scale 64
4.1. Progress towards going paperless 65
4.2. Emerging technologies: New opportunities for trade facilitation and traceability alike 66
4.3. Avoiding creating new challenges for trade facilitation through digitalisation 67
4.4. The added digitalisation challenge for traceability 68
4.5. Data as the cross-cutting enabler 70
4.6. Trade facilitation considerations arising from digital traceability 72
References 73
Notes 74
5. Trust in compliance information is essential to support traceability-intensive sectors 75
5.1. The value of trusted information amid growing compliance complexity 76
5.2. Bridging International Regulatory Co-operation (IRC) tools and border processes 79
5.3. How institutional architecture and awareness shape operational implementation 80
5.4. Where traceability demands meet existing recognition infrastructures 82
References 88
Notes 89
6. Conclusions and forward-looking observations 90
6.1. Preparing trade facilitation systems for new requirements 91
6.2. Key considerations 91
6.3. Forward-looking observations 92
References 93
Figure 1.1. Progress in trade facilitation is occurring in all regions 15
Figure 1.2. Trade facilitation reforms have already seen reductions in the cost of trade, with potential for more 16
Figure 1.3. More concentrated trade patterns point to where trade facilitation could help support diversification 18
Figure 1.4. How co-ordination connects trade facilitation and traceability 24
Figure 2.1. The carbon-intensity compliance ecosystem consists of many actors 40
Figure 2.2. Border enforcement guidance is limited for emerging social and environmental-related requirements 42
Figure 2.3. Information and guidance on border procedures remains limited for carbon-intensity requirements 43
Figure 2.4. Actors vary in their readiness for implementing carbon-intensity requirements 45
Figure 3.1. The product lifecycle consists of several segments 50
Figure 3.2. Environment-related border requirements are unevenly integrated into trade facilitation systems 57
Figure 3.3. Progress across the product lifecycle is slowest for end-of-life segments 58
Figure 3.4. Trade facilitation for production segment requirements is held back by institutional fragmentation 59
Figure 3.5. The use segment requires better interoperability between customs and sector-specific systems 60
Figure 3.6. Trade facilitation efforts are most needed in the end-of-life segment 61
Figure 4.1. Export gains rise with digital and streamlined border procedures 66
Figure 4.2. Measures target different types of data 71
Figure 5.1. Certain sectors account for an important share of selected International Regulatory Co-operation (IRC) tools 83
Boxes 8
Box 1.1. Transshipment risks and practical challenges for border agencies 21
Box 1.2. OECD Responsible Business Conduct (RBC) and traceability across sectors 22
Box 1.3. How traceability can work at the border: The example of an electric vehicle battery 26
Box 1.4. Why traceability is emerging as a strategic issue in critical mineral supply chains 28
Box 3.1. Key segments of a product's environmental lifecycle 49
Box 3.2. Challenges identified as regards the operation of the PIC procedure under the Basel Convention 52
Box 3.3. Differences between the Basel Convention and the OECD Decision on Transboundary Waste Movements may affect how waste is... 53
Box 3.4. Role of customs and inter-agency co-operation under the Basel PIC procedure 54
Box 4.1. Public and private data platforms for environmental and social-related requirements 68
Box 4.2. Data granularity considerations for digital traceability of critical minerals 72
Box 5.1. International regulatory co-operation (IRC): A spectrum of tools 77
Box 5.2. The role of International Regulatory Co-operation (IRC) tools in bridging standards and market access 78
Box 5.3. Illustrative perspective on sectoral coverage in selected International Regulatory Co-operation tools 83
Box 5.4. International co-operation and standards-based approaches to critical minerals traceability 85
Box 5.5. Traceability in agri-food value chains: The case of Colombian cocoa 87
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