The project will address the core problem of inefficient trade processes through rehabilitation and provision of modern equipment in Altanbulag border crossing point, upgrading the Customs Automated Information System and preparatory work for the establishment of a single window system.

The impact will be increased trade and competitiveness as a result of faster and cost efficient cross-border services. The intended project outcome is reduced cost and time of compliance with trade procedures.

Output 1: Facilities and equipment at Altanbulag, Bichigt, and Zamiin-Uud BCPs are upgraded and improved. Infrastructure and equipment at the three BCPs are relatively old and considered inefficient. Cooperation between border agencies is also limited. Investments will focus on (i) rehabilitation and reorganization of BCP facilities to strengthen customs processing capacity and facilitate trade in line with modern customs practices, as well as create a gender-sensitive environment; 19 and (ii) provision of modern equipment to enable customs officials to undertake their control function effectively and reduce reliance on manual checks. Training of customs officers on the use of newly acquired equipment and modern customs practices (i.e., risk management techniques, coordinated border management, and awareness raising on human trafficking) will also be conducted. 20.

Output 2: Communication infrastructure for CAIS is improved and GACT systems are interoperable. The core CAIS application modules will be upgraded to provide added functionalities for more operational efficiency. The CAIS system will be made single-windowready, and capacity will be boosted to prepare for anticipated higher volume. In this regard, operating and processing capacity will be increased through system software installations and hardware upgrades alongside network upgrades. Improvements in the customer support center will be undertaken through call center analysis and design, as well as help desk and customer support software. The customs external portal system will be upgraded to allow public viewing of trade information and reports. Technical training will be provided to boost the capacity of ICT staff at GACT. Advisory support will help develop the interconnectivity and interoperability of information systems at the customs and taxation authorities. A business process integration strategy will be formulated, which will inform the ICT systems' interconnection process.

Output 3: Preparatory work for single window is undertaken. A revised singlewindow model will be prepared to involve, in principle, the key trade-related agencies20 and private sector entities involved in the supply chain. Analysis will be undertaken to redesign processes and procedures to incorporate a coordinated border management approach to operations, including cargo examinations and information sharing. The current documentary requirements for all agencies will also be examined to streamline them into an agreed set of documents needed to clear cargo.21 Preparation for the single window will also include an agreement from most agencies involved in trade to work together, share information, and link current information technology systems. An agreement should be reached on the lead agency to manage the single window, and on the financial implications of maintaining and upgrading the system. The development of a single window in Mongolia will be based on functional requirements established in these preparations. Preparatory work will lay the ground for the implementation of a single-window platform (hardware, operating systems, and infrastructure) as well as single-window applications such as e-licensing, e-signature, e-logistics, 22 e-payment, and single-window reporting.

Government US$ 2.07 million

Ministry of Finance
ANUDARI@MOF.PMIS.GOV.MN
Government Building-2
Negdsen Undestnii gudamj-5/1
Ulaanbaatar-210646, Mongolia

ACCOUNTABILITY MECHANISM OF ADB
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