The increase
in international trade that characterised the last half of the 20th
Century meant that most ports around the world were transformed from docks
and warehouses located in city centres to modern centres located on huge new
sites. But experience showed that in addition to physical changes, world ports
needed to reconsider their approach to the regulations and paperwork involved
in trade. For there was little doubt that in some cases trade was being held
back by practices that were no longer suited for modern conditions. Most regulations
are essential - but sometimes they come to be not only unnecessary but as
a positive burden on the activities they are supposed to control. Few activities
have been more subject to over-regulation than international maritime transport.
This is partly
because of the international nature of shipping: countries developed customs,
immigration and other standards independently of each other and a ship visiting
several countries during the course of a voyage could expect to be presented
with numerous forms to fill in, often asking for exactly the same information
but in a slightly different way.
As
shipping and trade developed, so did the paperwork involved until by the 1950s
it was being regarded not simply as an inconvenience but as a positive threat.
The following account indicates the sort of problems that a shipmaster of
the time might expect to encounter:
A report[1]
Merchant Shipping on a Sea of Red Tape compared the documentary requirements
and procedures associated with international shipping with those related to
the international airline industry and made it clear that merchant ships were
foundering in self-inflicted bureaucracy. Analysis showed that whereas only
three or four documents were required of aircraft, ports frequently required
no fewer than 22, 32 or even 46 separate documents of a ship.
The report concluded that:
| • |
|
The
need to simplify ships' documents was urgent and the demands of individual
Governments had to be put into clear perspective with the overall welfare
of merchant shipping. |
| • |
|
The
cost savings, which could be achieved from simplification and standardization,
were significant both to industry and to Governments and should be sufficient
motivation to spur those concerned into immediate action. |
| • |
|
The
experience of airlines since the establishment of the International
Civil Aviation Organization (ICAO) provides a pattern for similar action
by the shipping industry and Governments within the International Maritime
Organization (IMO) |
| • |
|
In
the final analysis, ship documentation simplification is the responsibility
of Governments, and their co‑operation is essential if the outcome
is to be successful. |
The report
recommended that all possible efforts should be directed towards intergovernmental
action, preferably through IMO, which had met for the first time just a few
weeks before the report was published. It reveals a great need to eliminate
duplicative forms and to simplify, unify and standardize the remaining maritime
documents. The report defined the various tasks as:
| • |
Simplification |
the process
whereby superfluous data and unnecessary documents are eliminated or
at least modified. |
| • |
Unification |
the combining
of several similar documents whenever possible. |
| • |
Standardization |
the development
of definite size, format and language for documents designed for a specific
purpose and use, and their general acceptance by and use throughout
the industry. |
The Facilitation
Convention
The problems
outlined in the 1959 report, if anything, grew worse over the next few years
and by the early 1960s the maritime nations had decided that the situation
could not be allowed to deteriorate further. International action was called
for and to achieve it Governments turned to IMO.
In 1961 the
2nd IMO Assembly adopted resolution A.29 (II), which recommended that IMO
take up the matter. An Expert Group was convened which recommended that an
international convention be adopted to assist the facilitation of international
maritime traffic. In October 1963 the 3rd IMO Assembly adopted resolution
A.63 (III), which approved the report of Expert Group and in particular recommended
that a convention be drafted, which would be considered for adoption at a
conference to be held under IMO[2] auspices in the spring of 1965. The
conference duly took place and the Convention on Facilitation of International
Maritime Traffic (FAL), 1965 was adopted on 9 April.
Its purpose
is summed up in the foreword, which says: "The Convention was originally
developed to meet growing international concern about excessive documents
required for merchant shipping. Traditionally, large numbers of documents
pertaining to the ship, its crew and passengers, baggage, cargo and mail are
required by customs, immigration, health and other public authorities. Unnecessary
paperwork is a problem in most industries, but the potential for red tape
is probably greater in shipping than in other industries, because of its international
nature and the traditional acceptance of formalities and procedures.
"The Convention
emphasizes the importance of facilitating maritime traffic and demonstrates
why authorities and operators concerned with documents should adopt the standardized
documentation system developed by IMO and recommended by its Assembly for
world-wide use."
The Convention
is a "co‑operative" treaty whereby Contracting Parties undertake
to bring about uniformity and simplicity in the facilitation of international
maritime traffic. It entered into force on 5 March 1967 and outlines general
principles relating to international maritime facilitation.
The Conference
concluded that formalities, documentary requirements and procedures on the
arrival and departure of ships should be simplified and, in particular, that
public authorities should not require for retention any declaration other
than the eight listed in Standard 2.1 (see below).
The Conference
invited Governments to adjust their national legislation when practicable
and, to this effect, drafted international standards to facilitate their
incorporation into national legislation.
In its Annex,
the Convention contains "Standards" and "Recommended Practices"
on formalities, documentary requirements and procedures which should be applied
on arrival, stay and departure to the ship itself, and to its crew, passengers,
baggage and cargo.
This flexible
concept of standards and recommended practices, coupled with the other provisions,
allows continuing progress to be made towards the formulation and adoption
of uniform measures in the facilitation of international maritime traffic.
Standard 2.1
lists eight documents which public authorities can demand of a ship and recommends
the maximum information and number of copies which should be required. IMO
has developed Standardized Forms for six of these documents. They are the:
| • |
|
IMO
general declaration |
| • |
|
cargo
declaration |
| • |
|
ship's
stores declaration |
| • |
|
crew's
effects declaration |
| • |
|
crew
list |
| • |
|
passenger
list |
The other two
documents are required under the Universal Postal Convention and the International
Health Regulations.
The general
declaration, cargo declaration, crew list and passenger list constitute the
maximum information necessary. The ship's stores declaration and crew's effects
declaration incorporate the agreed essential minimum information requirements.
The adoption
of the Convention was an important step, but the next step was to encourage
as many Governments as possible to ratify it. IMO prepared a document that
lists the various advantages to be gained from doing so. They are:
| 1 |
General |
| A
standardized rapid system of clearing ships inwards and outwards
with easy completion of clearance documents in advance of the
arrival of the ship eliminates delay and contributes to a quick
turn‑around. |
| Minimization
of passenger clearance requirements reduces dock‑side congestion
and eliminates the need for correspondingly larger facilities. |
| Easy
reproduction on small inexpensive machines by shipboard or shore‑based
personnel of the simplified standardized documents reduces filing
and storage space requirements. |
| The
uniform layout makes the use of Automatic Data Processing (ADP)
techniques possible. |
|
|
2
|
To
governments |
| Reduction
of the administrative burden and better utilization of personnel
in customs and other public authorities is achieved by eliminating
non‑essential documents and information. |
| Formalities
are no more onerous than those of competing ports. |
|
Governments have the benefit of forms designed by international
experts. Simple, well‑designed forms make for more efficient
and less‑expensive administration and help increase port
throughput by preventing unnecessary delay to ships, passengers
and cargoes. |
| National
forms which follow an international model are more readily understood
by ships' masters and, therefore, more likely to be correctly
completed. Language difficulties are minimized. |
| The
uniform position of similar items of information on each form
makes it easier to check the documents and extract the required
information. |
|
| 3 |
To
shipowners |
| General
benefits derive from the acceptance of the principle that formalities
and procedures in respect of maritime traffic should be no more
onerous than those for other modes of transport. |
| Fewer
and simpler forms need to be completed. Less information is required
and less work is therefore involved. |
| If
no changes are foreseen with regard to crews, ship stores or passengers
during the voyage or any part of it, identical forms for several
ports can be completed at the same time. In such circumstances
the same forms can be submitted both on arrival and on departure. |
| The
ship's manifest and cargo declaration can be completed in one
run, thus keeping down costs and reducing the possibility of errors. |
| The
uniform position of information makes typing easier and contributes
to quicker familiarization of new personnel with document processing.
It also facilitates the use of ADP. |
|
|
4
|
To
shippers |
| The
enhanced efficiency of clearing ships and cargo saves time and
expense. |
| The
use of standardized commercial documents, e.g. bills of lading,
simplifies the production of documents. |
| Cargoes
awaiting shipment or collection are exposed for a shorter time
to the risk of damage or pilfering within port facilities. |
| The
utilization of containers and pallets is improved. |
|
It becomes possible to utilize documents produced by ADP techniques. |
| Requirements
for authentication of documents are simplified. |
|
Time
savings reduce the charges for services rendered by public authorities
outside regular working hours. IMO also recognizes that the
shipping industry's co‑operation is essential if the benefits
of these facilitation efforts are to be realized. It is hoped
that operators and masters might be made aware of the advantages
of facilitation and, with the assistance of their port agents,
might press for the early replacement of national forms by internationally
standardized forms.
|
|
The 1973
amendments
Despite its
value, the Facilitation Convention, like any other international treaty, needs
to be kept up to date. Unfortunately, the amendment procedure incorporated
into the Convention made this extremely difficult. To enter into force an
amendment had to be accepted by two‑thirds of the Contracting Parties.
But, as the number of Contracting Parties increased, so did the number required
to reach the two-thirds target. It became clear that amendments adopted under
this procedure would take so long to meet requirements for entry into force
that the amendments themselves might be out of date by the time they did so.
This problem
was common to a number of other IMO instruments and to overcome it a new amendment
procedure known as 'tacit acceptance' was devised under which amendments to
a convention automatically enter into force on a predetermined date unless
they are rejected by a specified number of Contracting Parties.
In 1973 an
amendment was adopted to introduce this procedure into the Facilitation Convention.
However, the amendment was bound by the original amendment procedure and it
did not finally enter into force until 1984 (incidentally proving just how
necessary the amendment was).
While this
amendment was going through the acceptance procedure, there was very little
for the Facilitation Committee to do. This enforced delay had damaging effect
on IMO's work in the facilitation area and, after the 14th session in 1981,
the Committee did not meet again until 1984. When it resumed work the Committee's
greatest priority was to prepare a package of amendments to the Convention.
The Committee report says that many of these were "most urgent if the
Convention is to reflect even current practice..."
One of the
main purposes of the amendments was to permit the use of automatic data processing
(ADP) and other modern communications techniques, which had developed rapidly
during the preceding years. They entered into force on 1 October 1986 and
also made it possible for the shipping world to make use of another development
known as electronic data interchange (EDI). This is basically a means of
enabling computers to talk directly to each other. Because modern business
transactions were increasingly being computerized this had a number of advantages.
It increased
business efficiency - since the number of keying‑in operations was reduced,
so was the number of errors. This meant economies on staff ‑ and even
on telephone calls. Despite this, EDI did not conquer the trading world quite
as quickly as some prophets’ forecast. One reason was the lack of a common
language or standards, which are necessary if computers are to communicate
directly. Many banks and other institutions developed their own standards,
but these were not compatible and smaller enterprises had no obvious standards
to turn to.
In 1987, however,
a major turning point came when a meeting organized by the United Nations
agreed on a standard known as EDIFACT, which meant that, for the first time,
the world had a universal computer language.
Since then,
many shipping companies and others in the industry have adopted EDI, using
EDIFACT and in 1989 the European customs authorities also agreed to accept
paperless trading, with EDIFACT as the standard. This was important to shipping,
because much of the paperwork involved in maritime trade is for customs purposes.
Its value was
shown in June 1990 when a Soviet ferry, the Ilich, entered Stockholm
after what was otherwise a routine voyage from St. Petersburg. What made
this one exceptional was that, for the first time in shipping history, EDI
was used to despatch all necessary customs information to the port authorities.
The Ilich
prepared this information on IMO's standard FAL forms. It was then sent to
Stockholm via the satellite system operated by the International Maritime
Satellite Organization (INMARSAT), which was established by IMO in the 1970s.
The information consisted of 14 A4 pages and took just 2 minutes, costing
only US$8 to transmit. INMARSAT estimates that it would have taken 16 minutes
and US$180 to send by telex and 8 minutes and US$90 to send by fax. The biggest
advantage of using EDI in this way, however, is the saving in time spent in
port.
Other matters
The Facilitation
Committee also turned its attention to a number of other matters, which are
of concern to Member Governments.
Drug Smuggling:
the smuggling of illicit drugs is a major problem in many parts of the
world and it is generally recognized that international co‑operation
is essential if it is to be eradicated. In 1987 IMO issued guidelines for
use by shipowners, seafarers and others closely involved with the operations
of ships in preventing drug smuggling. Their aim is to combat illicit drug
trafficking without impeding international maritime trade.
The guidelines
list some of the security precautions that should be taken to prevent drug
smuggling and the places where drugs are most likely to be concealed. The
major drugs are described ‑ they include cannabis, heroin, cocaine,
amphetamines, barbiturates and hallucinogens. Further advice is then given
on detecting drugs, and what to do when they are found. The guidelines point
out that members of the ship's crew may themselves be drug users and the guidelines
give advice on how addicts may be detected.
National
Facilitation Committees: in August 1989 IMO issued guidelines for the
establishment and operation of national facilitation committees. They recommend
the establishment of a body representing the main interests concerned with
facilitation, including Government clearance agencies, such as immigration,
customs, consular, passport and visa, public health, agriculture, security
and narcotics control; other governmental agencies including postal services,
tourism and trade departments; port authorities; shipowners and operators;
shipping and freight forwarders and agents.
Elderly
and Disabled Passengers: in August 1989 another circular was sent out
by the FAL Committee dealing with the access to marine passenger terminals
for elderly and disabled passengers. It points out that as many as 10 per
cent of the world's population can be categorized as disabled, many of them
elderly. This proportion is likely to rise with the progressive ageing of
the world population.
HIV Screening:
in October 1988 the IMO Assembly adopted resolution A.639 (16) that deals
with the undesirability of human immune deficiency virus (HIV) screening of
crews and passengers of ships. It backs up actions taken by other United Nations
bodies such as the International Labour Organisation (ILO) and the World Health
Organization (WHO). It noted that an increasing number of countries require
certificates to testify that the bearer is not infected with the acquired‑immune‑deficiency-syndrome
(AIDS) virus. It points out that this practice would not only be difficult
to implement but would not be able under any circumstances to prevent the
spread of HIV infections. Screening for HIV would divert resources away from
other measures to combat AIDS. The resolution recommends Member Governments
not to introduce HIV screening while those who have already done so are recommended
to reconsider other measures.
In addition
to continuing its efforts to remove red tape, IMO is trying to make international
maritime trade and passenger travel easier and more efficient. The Organization
has developed a range of graphical symbols and signs for use at marine terminals
and on board ship. These have the advantage over conventionally written signs
in that they do not have to be translated and are therefore comprehensible
to people of all nationalities. The symbols developed for on board ship
are concerned with life‑saving appliances and arrangements and fire‑fighting.
The newly developed signs and symbols for use at marine terminals have been
included in a publication produced by IMO and the International Civil Aviation
Organization (ICAO).
Stowaways:
in April the Committee adopted further amendments to the Annex, which
entered into force on 1 June 1994. One of these amendments was concerned with
stowaways. It states that when a stowaway has inadequate documents, public
authorities should, whenever possible, issue a covering letter with a photograph
of the stowaway and other important information. The letter, which should
authorize the return of the stowaway to his country of origin or the point
where he commenced his journey, should be handed over "to the operator
effecting the removal of the stowaway. This letter will include information
required by the authorities at transit points and/or the point of disembarkation."
Smuggling
of Aliens: the smuggling of aliens has become an important and controversial
issue in today. Apart from the inconvenience caused to ship operators, port
authorities and others there are humanitarian issues involved and in November
1993 the IMO Assembly adopted a resolution which refers to the fact that "numerous
incidents involving the smuggling of aliens aboard ships have resulted in
sickness, disease and death of the individuals concerned."
The resolution
invites Governments to co-operate in taking the action necessary to suppress
the smuggling of aliens. It outlines various procedures to be taken when alien
smuggling is detected, but it emphasizes the humanitarian aspects, urging
Governments which discover evidence that a ship is involved in this practice
to "ensure the safety and humanitarian handling of the persons on board
and that any actions taken with regard to the ship are environmentally sound."
Ship/port
Interface
In December
1992 a Working Group on Strategy for Ship/Port Interface met for the first
time. The meeting was held in response to the Secretary-General's belief that
a study needed to be carried out into the work undertaken by IMO in the field
of technical port activities. Since then the Working Group has been operating
as a working group of the FAL Committee.
The reasons
for forming such a Working Group were summed up in resolution A.786 (19),
adopted by the Assembly in 1995. It recognizes the contribution that ports,
as nodes in the transport chain, can make towards the promotion of maritime
safety, the protection of the marine environment and the facilitation of maritime
traffic and the need for IMO to address ship/port interface matters.
Future Activities
The facilitation
of international maritime trade is beneficial to everyone involved - yet there
is no doubt that it is a comparatively little-known aspect of IMO's work.
IMO and the FAL Committee in particular have stressed the value to be derived
from removing red tape and other restrictions on maritime trade and the Organization
has organized a series of seminars in different regions to demonstrate how
beneficial this work can be.
During the
1980s an extensive programme of seminars was conducted in Africa and more
recently IMO, with the co-operation of the Economic and Social Commission
for Asia and the Pacific (ESCAP) and financial support from the Netherlands,
has arranged a similar programme in South East Asia.
Meanwhile,
the FAL Committee continues its work on reviewing the FAL Convention itself,
the use of EDI for the clearance of ships, the harmonization of reporting
formats, technical co-operation and so on. It is hoped that it will soon
will see the conclusion of work on stowaways, at least as far as the adoption
of the Assembly resolution is concerned, the compulsory availability of passenger
lists and methods of handling passengers with inadequate documents.
The SPI Working
Group is working on the establishment and operation of reception facilities
for shipborne wastes, including funding mechanisms (this is being carried
out under the supervision of the Marine Environment Protection Committee).
Other subjects that are could be finalized during the year include the revision
of the IMO/ILO Guidelines on packing cargo in freight containers, other transport
units and vehicles.
The Working
Group also hopes to finish its work on model courses on cargo handling in
port areas, emergency preparedness and response in port areas, the promotion
of EDI in matters relating to port management and the availability of adequate
tug assistance.
[1]
Prepared by the U.S. Pacific Coast shipping industry in co-operation with
the School of World Business, San Francisco State College, California, 1
April 1959.
[2]
Until 1982 IMO was known as the Inter-Governmental Maritime Consultative
Organization (IMCO).
Ports
are the link between maritime and land-based trade. Traditionally ports were
located where the geography was favourable. In some cases this meant that
the coastline at that point provided a sheltered anchorage – Sydney and Freetown
in Sierra Leone are examples. Other ports were located near the mouths of
rivers, enabling river and sea traffic to meet: Hamburg, Rotterdam, Shanghai,
London and New Orleans are examples. Others are to be found on straits between
landmasses – like Istanbul – or where major trade routes pass – such as Singapore.
These advantages
resulted in many ports becoming major cities. The convergence of land and
sea trade encouraged the growth of industrial and commercial activities in
the port, so that many ports became major economic and industrial centres.
The Hanseatic towns of northern Europe and Venice and Genoa in Italy were
all major powers in their day. Later cities like London, Amsterdam, New York
and Calcutta flourished.
During
the last fifty years, however, ports have changed. As trade and industry grew,
so the traditional city-centre ports became too small and congested to cope
with demand. Ships grew in size and many ports were too small to accommodate
the larger ships coming into service. Container ships, bulk carriers and oil
tankers all demanded huge land areas for storing and handling cargoes. Inevitably,
the demand for more land and deep water meant that ports had to be re-located
further down river, often well away from the traditional centre. This encouraged
and indeed necessitated the provision of new road and rail links. 