ADB recommends speeding up cargo clearance at Kirmizi Korpu checkpoint in Azerbaijan by pre-paying fees

The Asian Development Bank (ADB) has recommended introducing the option of pre-payment of inspection fees at the Kirmizi Korpu border crossing to reduce waiting times and improve efficiency, Report informs referring to the ADB.

As the bank notes, such a measure will speed up the processing of goods upon arrival and reduce the administrative burden on both traders and customs authorities.

The recommendation is presented within the Central Asia Regional Economic Cooperation (CAREC) initiative, which since 2001 has been aimed at reducing economic inequality and promoting regional integration. As part of the assessment of CAREC border points according to the Transport and Cross-Border Trade Facilitation Index, the ADB presented the results for the Kirmizi Korpu checkpoint.

Thus, the total weighted average efficiency score is 71%, efficiency in the areas of "Customs procedures and formalities" - 0.55 (79%), "Customs Coordination" - 0.15 (77%), "Transit support facilities" - 0.25 (64%), "Transport regulations" - 0.05 (0%). Among the advantages, the bank highlights the electronic processing of key documents, developed ICT infrastructure, the possibility of preliminary customs clearance (pre-arrival clearance), electronic data exchange with Georgian customs authorities and mutual recognition of key documents.

The main limitations identified by ADB include the mandatory presentation of originals (passports, commercial driver's licenses, liability and cargo insurance policies, etc.), the lack of the ability to submit electronic applications for refund of customs duties and CMR (International Consignment Note), the lack of an option for pre-payment of inspection fees, limited use of the vehicle ID reading system - only in 50% of cases, weight and size restrictions for trucks, separate border controls (lack of coordinated management), low throughput - only 4.7 trucks per lane per hour. Despite the presence of a large logistics infrastructure, due to overloading and congestion, the waiting time remains the highest among all checkpoints in the region. Considering that a significant volume of fresh citrus fruits passes through the Kirmizi Korpu checkpoint, ADB recommends creating a refrigerated warehouse near the point.

"With fresh citrus fruits being one of the top-three cargo commodities passing the BCP, establishing cold storage warehouse near the BCP would be relevant. Fresh fruits are highly perishable and sensitive to temperature fluctuations, and delays caused by customs clearance, document verification, or congestion at the border can compromise their shelf life or result in spoilage. Cold storage facilities at this BCP will help maintain the integrity of the cold chain during transshipment, inspection, or unforeseen wait times, thereby reducing losses and preserving product quality," reads the message.

According to ADB, from 2001 to January 1, 2024, more than $51 billion in investment has been mobilized in 276 regional projects, focusing on developing multimodal transport networks, improving trade, free movement, and forming economic corridors.

The leading recipients of CAREC investments in the transport sector are Kazakhstan (24.6%, or about $8.44 billion), Uzbekistan (19%, or $6.52 billion), and Azerbaijan (16.3%, or $5.59 billion). Overall, transport infrastructure accounts for 67.4% of all investments, or about $34.3 billion.

ADB emphasizes that most CAREC countries are rich in natural resources, with Azerbaijan and Kazakhstan being key exporters of oil and gas, while Mongolia, Turkmenistan, and Uzbekistan have significant reserves of other minerals. In 2023, the combined exports of CAREC countries amounted to $202 billion, with Kazakhstan accounting for $84.39 billion, Azerbaijan - $38.15 billion, Pakistan - $31.18 billion, which together amount to about 70% of the region's total exports.