SOL-521-15-000050_Customs_Support_Haiti.pdf

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STANDARD FORM 33

SOLICITATION, OFFER AND AWARD

SOLICITATION

OFFER (Must be fully completed by Offeror)

AWARD (To be completed by Government)

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SOL-521-15-000050 X

United States Agency for International Development/Haiti Embassy of the United States Port-au-Prince, Haiti Boulevard du 15 Octobre Tabarre 41, Tabarre, Haiti

USAID HAITI OAA Office jedesrosiers@usaid.gov lllherisson@usaid.gov usaidhaitioaa@usaid.gov

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50922298000

08/25/2015

509 22298000 mailto:jedesrosiers@usaid.gov mailto:lllherisson@usaid.gov mailto:usaidhaitioaa@usaid.gov

Table of Contents

PART I - THE SCHEDULE

SECTION B – SUPPLIES OR SERVICES AND PRICE/COSTS

B.1 PURPOSE

B.2 CONTRACT TYPE

B.3 BUDGET, CEILING PRICE, AND LEVEL OF EFFORT

B.4 PAYMENT

SECTION C – DESCRIPTION/SPECIFICATIONS/STATEMENT OF WORK

C.1 TITLE

C.2 PURPOSE

C3. PROJECT RESULTS

C.4 BACKGROUND

C5. SCOPE OF WORK

SECTION D – PACKAGING AND MARKING

D.1 AIDAR 752.7009 MARKING (JAN 1993)

D.2 BRANDING

SECTION E – INSPECTION AND ACCEPTANCE

E.1 CONTRACT PERFORMANCE EVALUATION

E.2 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

E.3 INSPECTION AND ACCEPTANCE

SECTION F – DELIVERIES OR PERFORMANCE

F.1 PERIOD OF PERFORMANCE

F.2 REPORTS AND DELIVERABLES OR OUTPUTS

F.4 MANAGEMENT OF CONTRACT

F.5 PLACE OF PERFORMANCE

F.6 AUTHORIZED WORK DAY /WEEK

F.7 Personnel

SECTION G – CONTRACT ADMINISTRATION DATA

G.1 AIDAR 752.7003 DOCUMENTATION FOR PAYMENT (NOV 1998)

G.2 CONTRACTING OFFICER'S AUTHORITY

G.3 ACCEPTANCE AND APPROVAL

G.4 INVOICES

G.5 CONTRACTING OFFICER’S REPRESENTATIVE

SECTION H – SPECIAL CONTRACT REQUIREMENTS

PART II – CONTRACT CLAUSES

SECTION I – CONTRACT CLAUSES

PART III – LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACHMENTS

SECTION J – LIST OF DOCUMENTS EXHIBITS AND OTHER ATTACHEMENTS ... 62

PART IV – REPRESENTATIONS AND INSTRUCTIONS

SECTION K - REPRESENTATIONS, CERTIFICATIONS AND OTHER STATEMENTS OF

OFFERORS

SECTION L – INSTRUCTIONS, CONDITIONS, AND NOTICES TO OFFERORS OR

RESPONDENTS

SECTION M – EVALUATION FACTORS FOR AWARD

PART I - THE SCHEDULE

SECTION B – SUPPLIES OR SERVICES AND PRICE/COSTS

B.1 PURPOSE

The purpose of this contract is to support the Cap Haitien Customs Support Project. The goal of the project is to ensure that Cap Haitien Customs operations are sufficiently effective to support the increased volumes of trade projected in the Cap Haitien Port Rehabilitation

Project. The objective of the Project is to enable Cap Haitien Customs to clear merchandise intended for import and export as efficiently as possible through (i) use of appropriate and adequate ICT hardware and software and (ii) practical application of modern principles of trade facilitation.

B.2 CONTRACT TYPE

This is a Time and Materials type contract for commercial items in accordance with the Federal Acquisition Regulation (FAR) 16.601. All labor categories use fixed daily rates. For the consideration set forth in the contract, the Contractor shall provide the deliverables or outputs described in Section C and comply with all contract requirements.

B.3 BUDGET, CEILING PRICE, AND LEVEL OF EFFORT

The price and costs of this solicitation is between $ 3,000,000 - $ 3,800,000.

a. The total estimated cost for the performance of the work required hereunder is $TBD

b. Within the estimated cost specified in paragraph (a) above, the amount currently obligated and available for reimbursement of allowable costs incurred by the Contractor for performance hereunder is $ TBD. The Contractor shall not exceed the aforementioned obligated amount.

c. Funds obligated hereunder are anticipated to be sufficient through TBD.

d. The Contractor will not be paid any sum in excess of the total estimated cost.

e. Estimated Contract Budget

DESCRIPTION Total

LABOR $X

OTHER Direct COST $X

INDIRECT COST ON ODC $X

TOTAL ESTIMATED COSTS $X

f) Fully Burdened Rates:

Items Year 1 Year 2

Labor category Fixed

Daily Rate

Fixed Daily

Rate

LOE

(DAYS)

LOE

(DAYS)

The labor rates in this section reflect the fully-burdened rates for each labor category. The fully-burdened labor rates include all direct, indirect, general and administrative costs.

The Level of Effort (LOE) is measured in eight-hour days. The individuals that have been approved for the above labor categories are listed in Section F.7.

B.4 PAYMENT

The Contractor shall invoice for technical services provided in accordance with Section G.4;

however, the Contracting Officer’s Representative (COR) must accept and approve all deliverables and outputs in accordance with Section E before payment may be made.

The paying office is provided in Section G.5.

[END OF SECTION B]

SECTION C – DESCRIPTION/SPECIFICATIONS/STATEMENT OF WORK

C.1 TITLE

The Title of the Project is “Cap Haitien Customs Support Project”.

C.2 PURPOSE

As described in the following section, USAID has committed to support the Government of

Haiti in boosting economic development in the north of the country through the rehabilitation of the Port of Cap Haitien. In order that Customs procedures not prove an obstacle to future port efficiency, USAID will fund a project to help streamline and modernize Customs clearances in the Port. Engaging an appropriate contractor to implement this assistance is the object of the present solicitation.

C3. PROJECT RESULTS

Contractor performance will be gauged through effective delivery of all proposed assessments, procurement recommendations, capacity-building exercises, technical assistance, and scheduled evaluations and reports. Completion of these interventions lies largely within the manageable interest of the contracted party.

The overall result of the Project will be an increase in the efficiency of clearing exported and imported goods. Measuring this increase, however, will only be possible following the establishment of baselines in Component II of the Project. Even for clearances in Port-au-

Prince, no time-release study has been conducted and the Administration Générale des

Douanes (AGD) is in the early process of creating performance measures. The data in the

“Trading across Borders” subset of the World Bank’s Doing Business reports are of interest but at best offer a remote proxy for efficiencies and costs in Cap Haitien. The Offeror is encouraged to propose its own benchmarks in addition to those set forth in this solicitation.

The primary rationale for the Customs Support Project presupposes a significant growth in goods traded through the port of Cap Haitien, a growth that has not yet begun to materialize.

At present, the clearest measures of performance results for the project reside in demonstrable gains in knowledge and attitudes and in substantial improvements in working conditions related to Information and Communications Technology (ICT). The Offeror is encouraged to propose its own benchmarks in addition to those set forth in this solicitation.

C.4 BACKGROUND

The Cap Haitien Port (CHP) Rehabilitation and Public-Private Partnership (PPP) Project

Following Haiti’s catastrophic earthquake in 2010, USAID worked with the Government of

Haiti (GOH) to define a long-term assistance plan through the Haiti Reconstruction Grant

Agreement signed in May 2011. With a view of promoting economic growth in northern Haiti, the Agreement finances among its initiatives the rehabilitation of the Port of Cap Haitien. A modern, competitive maritime port is essential if the region is to seize the benefits of increasing demand for container and bulk shipments. After preliminary studies and discussions, USAID and the GOH signed an implementation letter for the Cap Haitien Port Rehabilitation and Public Private

Partnership Project (CHP Project) in August 2014.

The primary goal of the CHP Rehabilitation and PPP Project is to improve the infrastructure and services of the Port to support economic growth in the northern region. The Project directly supports the GOH’s post-earthquake Action Plan and responds to projections of regional economic growth and expansion of activities in the nearby Caracol Industrial Park. The project proposes a series of interventions to improve physical infrastructure, the port regulatory environment, and security. The Project will also support the implementation of a public-private partnership for port management, operations, and maintenance.

A critical component of the CHP Project involves supporting Customs at both the national and the local level in Cap Haitien to improve procedures for valuation and clearance. USAID describes the outcomes of the overall project as expanded cargo and container capacity at the

Port, regulatory reform of the Autorite Portuaire Nationale (APN), reduction of costs to competitive levels, rehabilitated infrastructure, and improved, modern, and streamlined

Customs services.

This solicitation focuses exclusively on the Customs component within the larger Project.

Overview of Haitian Customs1

The Administration Générale des Douanes (AGD) is the national agency within the Ministry of

Economics and Finance responsible for administering all eighteen Customs offices (bureaux) and six border inspection offices (postes de surveillance) across Haiti. Two of the Customs offices are in Port-au-Prince; the remainder, including that in Cap Haitien, are provincial. According to the “Project Implementation Letter,” the AGD will issue administrative orders for all initiatives taken under the Cap Haitien Customs Support (CHCS) Project.

Cap Haitien Customs Office

The Cap Haitien Port (CHP) handles slightly under 10 percent of all cross-border merchandise trade in Haiti while accounting for about 5 percent of total Customs revenue.2 The Customs office is divided into six departments and includes 45 staff, of which 15 are managers or office heads. The departments and sub-divisions are as follows.

1. Head Office (Direction)

a. Office Head (Directeur)

b. Assistant Office Head (Sous-Directeur)

The AGD web site provides a full listing of the offices as well as abundant information on procedures:

www.douane.gouv.ht.

Ibid, “Historique».

2. Merchandise (Traitement de Marchandises)

a. Inspection (Verification)

b. Clearance and Processing (Conduit en Douane)

3. Documents (Traitement de Documents)

a. Interpretation

b. Release (Emission)

4. Information Technology (Informatique)

a. Automated System for Customs Data (ASYCUDA)3 (Site)

b. Value (Valeur)

5. Administration (Administrative)

6. Airport

The Merchandise Department is the largest with 19 staff members of whom seven are managers or heads of sub-divisions. The Clearance and Processing sub-office includes three full-time inspectors who are present for the opening of containers and who perform the physical inspection of goods.

The IT Department inputs declarations in ASYCUDA and transmits data to AGD electronically.

Transmission is reported to be slow and subject to frequent interruptions of internet service.

None of the other Departments, including the Head Office, is linked to ASYCUDA.

Throughout the Cap Haitien Customs operation, nearly all work is performed manually.

Outside of the main office, which is located in the town of Cap Haitien, Customs has offices in a temporary building within the Port and at the airport.

Automated System for Customs Data (ASYCUDA), designed by the United Nations Conference on Trade and

Development (UNCTAD). Haiti uses the version known as ASYCUDA World.

CUSTOMS: PRELIMINARY ANALYSIS

The AGD and Customs at Port-au-Prince

In order to have a realistic perspective on Customs in Cap Haitien, it is essential to understand the strengths and weaknesses of the AGD and of Customs operations and administration in

Port-au-Prince. In terms of infrastructure, energy supply, ICT capacity, and human capital, no provincial Customs office has anything close to the resources of Port-au-Prince. Donor assistance has been and continues to be concentrated in Port-au-Prince, where nearly all training takes place.

Recent studies and direct observation suggest that the strengths of Customs in Port-au-Prince lie in its:

trained personnel, express interest in continuing modernization and in capacity building, modern web site, ASYCUDA World, use of risk analysis in clearance, and progress towards a new Customs Code as well as a code of ethics.4

AGD in Port-au-Prince recruits agents from a large pool of candidates, and they benefit from frequent in-house training and from occasional capacity-building events offered by donor agencies. AGD has prepared a good web site with abundant information for traders as well as for interested parties in general.

All offices and departments are interconnected electronically, and virtually all clearance takes place through the ASYCUDA system. Clearance in Port-au-Prince Customs runs through a risk management system that automatically determines if the goods are subject to the red, yellow, or green channels. Yellow channel requires in-depth documentary verification that takes place in a separate, well-staffed and professionally managed office. Red Channel physical inspection takes place in neat and organized areas within the port. The green channel indicates clearance with no further documentary verification and no physical inspection of goods. Modern and efficient Customs administrations have implemented facilitation programs that enable a high percentage of shipments to pass through the green channel. In Port-au-Prince, clearing through the green channel is still the exception rather than the rule.

Although the Customs law dates from 1987 with relatively few formal amendments, a new

Customs Code is ready for promulgation and is long overdue. Work is said to be made towards a formal code of ethics.

Despite the progress made by the AGD—and to some extent for reasons beyond its own control—Haiti is ranked 142 out of 189 countries in Doing Business 2015’s “Trading Across

The most recent complete coverage can be found in the World Bank’s CATT Report of February 2014: Résultats de l’évaluation douanière en Haiti.

Borders” category. In the Americas, only Paraguay—a landlocked country—and Venezuela rank lower. Poor management at ports, old and malfunctioning facilities, sluggish responses from other border agencies, infrastructure, and transport weaknesses all contribute to this low ranking. Customs also, through a number of verifiable shortcomings, is a contributor to the low ranking.

Even in the location of its best performance, Port-au-Prince, Customs reveals a series of serious shortcomings in knowledge and in operations. Presented in a manner that will prove most relevant to Cap Haitien, these are:

Low compliance with Revised Kyoto Convention and Trade Facilitation Agreement;5

Inefficient and outdated communication with traders;

Absence of performance measurement; and

Inadequate coordination with other border agencies.

In Port-au-Prince, it is safe to assume that Customs agents at professional levels enjoy familiarity with the Revised Kyoto Convention (RKC) and the best practices it sets forth. There is much less familiarity with the WTO Trade Facilitation Agreement (TFA), which further refines Kyoto and codifies its best practices into a set of 40 technical measures. Only at the senior levels is there an appreciation of the practices and attitudes that characterize a truly modern Customs administration.

For example, among these modern practices is engaging the private trading community as partners with Customs. A modern Customs administration encourages voluntary compliance through self-assessment in traders and educates them through meetings, seminars, and focus groups. In Port-au-Prince, traders must even go physically to the Customs office to see if agents have posted any notices regarding their transactions on the glass of the reception windows.

AGD is seeking assistance in establishing a system of consistent performance measurement. At present, they have no methodology for assessing their own efficiency or effectiveness.

A fully modern Customs administration coordinates closely with other agencies that have a role in authorizing trade transactions. Although the ministries of agriculture, health, and others participate in both licensing and inspection of goods, Customs communicates with them only as needed for clearance and release. There is little concept of Customs as one among several border agencies.

The Customs Office in Cap Haitien: Knowledge, Practices and Procedures

Unlike in Port-au-Prince, in Cap Haitien there has been no in-depth assessment of Customs’ organization, capabilities, or performance. The commentary that follows is based on direct, The World Customs Organization adopted the Revised Kyoto Convention on the Simplification and Harmonization of Customs Procedures (RKC) in 1999 as a compendium of best practices and standardized rules. The Convention entered into force in February 2006.

The World Trade Organization released the Trade Facilitation Agreement (TFA) in December 2013; it awaits full ratification before entering into force.

short-term observations, interviews with Customs agents, and anecdotal evidence from a few local traders.

The strong points noted for Port-au-Prince appear to be missing in Cap Haitien, which does not apply risk management in clearance, has very limited use of ASYCUDA, neither uses nor contributes to the AGD web site, and has benefited little from capacity-building activities. In terms of knowledge and performance gaps, Cap Haitien’s isolation from Port-au-Prince is both geographic and virtual. For example, while the most senior officers are familiar with Revised

Kyoto and were aware of the “Bali” Trade Facilitation Agreement (TFA), they had no documentation about the Agreement, and they received no invitation to attend the WTO-structured Self Evaluation in Port-au-Prince.

Because the role of a Customs administration is implementation of policy, global best practices in regulations and procedures constitute the clearest benchmarks for improved performance.

Lack of familiarity with, or training in, the Trade Facilitation Agreement represents a knowledge gap that impedes further achievement in transaction efficiency.

Communications could overcome physical isolation, but communications themselves are hampered by internet limitations, equipment, and practice. The Customs office only communicates with local traders and with other agencies through written messages posted in the main office or through phone calls. Use of the internet appears to be largely personal except in the Head Office. As mentioned above, only the IT department is connected to

ASYCUDA. The agents in the seaport and the airport offices do not have access to ASYCUDA.

Many agents have no direct access to computers in the workplace. Lack of adequate, fast communications will also compromise the efforts to inhibit smuggling, which in Cap Haitien is believed to be largely a matter of tax evasion rather than the contraband of illicit goods.

Low enthusiasm for efficiency gains is a consequence of virtual isolation and of the reality of merchandise trade in the CHP. For both importation and exportation, there is great diversion from Cap Haitien to Port-au-Prince and to or from the Dominican Republic. Only an estimated

450–500 containers (800 TEUs) per month pass through the CHP. There is evidence of diversion via alternative ports of an estimated 200 containers that could be cleared through

Cap Haitien. Customs costs probably represent only a small percentage of the noncompetitive port and transport costs that lead to diversion. Furthermore, the vast majority of imported goods actually cleared at Cap Haitien are denominated “personal effects.” The denomination is somewhat misleading to anyone unfamiliar with local practice, as it really refers to used goods—from vehicles to tools and household appliances. For justifiable reasons, used goods demand 100 percent physical inspection and valuation is through reference price. Neither the quantities nor the nature of the merchandise offers incentives to boost efficiency in procedures.

The Customs Office in Cap Haitien: Facilities

Customs agents have offices in three buildings. The main office holding five of the six departments occupies a solid building in the central area of Cap Haitien. The building is only a five-minute drive from the entrance to the port, and the space itself is adequate for present purposes. Within the port, Customs occupies an inadequate temporary building. The inspectors and their assistants work from this facility. Space is cramped and the quality of the installation notably inferior to other offices in the port, especially the main building of the APN. Customs also has a small office in the airport.

Many agents have a computer for their use, but many do not or they bring a personal laptop to work. The Customs office at the airport does not have a computer.

C5. SCOPE OF WORK

Introduction

In planning assistance, the Contractor must bear in mind that immediate incentives for change in Cap Haitien Customs are few. As the promised rehabilitation of the port becomes manifest, professional staff at all levels will better understand the need for modernization leading to greater efficiency and opportunity. The promise of better working conditions will stimulate interest, so evidence of firm intentions to improve the installations and provide computers

(laptops) to all agents whose work normally requires them will encourage Customs agents to participate actively in capacity-building activities.

Although its focus will center on Customs at Cap Haitien, the Contractor will work closely with the AGD. It is essential that reforms and modernization in Cap Haitien are congruent with and supportive of the overall plans of the AGD for Haitian Customs as a national agency. These plans embrace seven broad areas:

1. Organizational structure.

2. Human resources.

3. Capacity building and training.

4. Technology and infrastructure.

5. Operational procedures.

6. Cooperation and communication.

7. The legal and regulatory framework.

Because the assistance provided through this activity falls almost entirely into the area of transactions and facilitation, it includes no direct interventions in the legal and regulatory aspects of trade; the other six areas all receive considerable attention.

Close working relationships among AGD’s Head Office, Port-au-Prince Customs, and Cap

Haitien Customs will be continual throughout implementation of the activity. Senior staff at

AGD will approve all procurement actions, training events, and proposed changes to services architecture. In some capacity-building exercises—seminars and training—agents from Port-au-

Prince may participate alongside Cap Haitien agents, and Customs officials from other bureaus may be brought in. In some instances, the most experienced Customs agents from Port-au-

Prince may actually serve as trainers or co-trainers with international experts.

For the areas that are being addressed, the Contractor will ensure that modernization and capacity building in Cap Haitien includes gender integration, ensuring equal opportunity, and as well as recommendations on activities to reduce the gaps between males and females within the

AGD and private sector as affected by customs procedures.

Component I: Mobilization, Assessments, and Trade Facilitation Training

Component I activities will commence as soon as possible following contract award and include support to the four areas of organizational structure, human resources, capacity building and training, and technology and infrastructure. They shall be completed within three months of actual project start-up.

The mobilization activities will require in-depth meetings of the Project Team with senior officials of the AGD and of both Port-au-Prince and Cap Haitien Customs to agree on the

Contractor’s approach and timing for interventions proposed under Components I and II.

During mobilization, the Contractor will assemble an appropriate team of experts to carry forth short-term assessments of each of the four areas leading towards clearly defined results.

Project mobilization shall take no longer than 3–4 weeks. The assessments will begin as soon as agreements on procedures have been reached and the team of experts recruited and shall be complete by the end of month three.

The assessments will comprise best estimates of staffing requirements in view of cargo projections, an inventory of requirements to furnish all agents with computers, identification of real or potential technical obstacles to ensuring broad access to and full functionality of the

ASYCUDA system. An assessment report shall be prepared that presents concrete recommendations for staffing positions, technical data for hardware and software, estimates of costs, and procurement options. It shall also describe the sequence and timelines for installation, the labor required, and the training necessary for understanding and using

ASYCUDA. (This training is not part of Component I but will follow procurement of hardware and installation of the ASYCUDA program.) The assessments shall also account for Haiti’s constitutional quota requiring that women comprise 30 percent public servants and include recommendations to AGD about how to meet this requirement in Cap Haitien.

During implementation of activities under Component I, the Contractor will design and deliver a trade facilitation training program, which the Project Team shall discuss with AGD and with

Cap Haitien Customs. Although Personnel in AGD and Port-au-Prince Customs have recently participated in an event on risk management and ex-post controls, for Cap Haitien personnel a capacity-building event offering in-depth exposure to trade facilitation shall precede specialized sessions on risk management and ex-post controls. (These sessions will come later in the

Project under Component IV.) The training in trade facilitation will be the first deliverable of immediate, perceptible value to the personnel involved.

In preparing the training design, the Contractor will take into account the sequencing recommendations in USAID’s recent publication on a comprehensive approach to trade facilitation.6 The Contractor will also ensure that the trainings address the gender dynamics of trade facilitation and encourage equal participation from male and female employees. The

“A Comprehensive Approach to Trade Facilitation and Capacity Building,” (USAID: Washington, D.C. 2014). It is unnecessary to account for the sequencing recommendation for Article XIII.

gender dynamics of trade facilitation is taken to mean the differentiated experience in interacting with customs and border management, trade infrastructure, port efficiency, transport security, logistics and transport services, regional trade corridors and transit and multimodal transport due to gender. It is suggested that for Component I, training focus on the gender dynamics of trade facilitation focus on identifying gender-intensified constraints due to customs and border management practices.7

The suggested modules for the training are as follows.

Module I: Background to the (TFA)

The World Customs Organization (WCO) and Revised Kyoto

DOHA Round and the “July Package”

Final negotiations

Current status

Module II: Structure of the TFA

Overview of Section I and the 13 articles

Overview of Section II and the Special and Differential Treatment (SDT) clauses

Module III: The Importance of Information in a Modern Customs

The role of the trader in voluntary compliance

Full exposure to Article I: Publication, Access, Enquiry Points

Discussion of Article II: Opportunity to Comment and Consultations

Module IV: The TFA and Haiti

Current status of TFA compliance in Haiti

Current status of compliance with Articles I and II—Cap Haitien vs Port-au-

Prince

Advantages in fuller compliance

Absolute IT requirements (if any) for fulfilment of Articles

Recommendations for Customs’ web site

Follow-up actions to undertake—short, medium, long-term

Module V: Evaluation of the Training

For additional information on gender integration in trade facilitation, please see World Bank Guidance Note

Gender Dimensions of Trade Facilitation and Logistics:

http://siteresources.worldbank.org/INTRANETTRADE/Resources/Pubs/Gender_Dimensions_Trade_Facilitation_L ogistics_Higgins_electronic.pdf

The Contractor will evaluate all training delivered under this award systematically. It will use the Kirkpatrick system or a system very similar to Kirkpatrick’s.8 A formal report will follow each training event, and the report will include daily attendance sheets and evaluations at Levels 1 and 2. Through these evaluations, participants and observers will rate the effectiveness of the training design and the trainers’ delivery, and trainers will gauge participants’ learning acquisition. No later than two months following the training sessions, the Contractor will conduct a Level 3 evaluation, assessing training’s impact on job performance. These evaluations will be conducted at the actual work site of the attendees whenever practicable.

At least once a year, the Contractor will conduct a Level 4 evaluation to assess the impact that training, technical assistance, and other capacity-building activities have had on organizational performance. Component V below offers more details on this evaluation methodology.

In budgeting for the event, the Offeror will assume two identical training sessions for 20 participants in each session, ensuring as much gender parity as possible among participants. The

Offeror will take into account the venue, meals and coffee breaks, transportation, lodging (if necessary), and per diem allowances for participants.

This capacity-building event on trade facilitation through the perspective of the TFA shall take place as soon as feasible after the preliminary assessments. If the assessments of needs in IT equipment have been concluded, or are underway, that fact alone will underscore the importance of the event as occurring in an evolving context. It will be of the utmost importance that participants view the training as part of the entire effort to increase economic growth through trade in the region.

Deliverables: (i) Separate written reports presenting future staffing requirements for the AGD

Cap Haitien office including strategies for improved/increased recruitment and participation of women, and the current status of ICT equipment with recommendations for procurement that include costs, configurations and an inventory of needs for essential office furnishings. (ii) Full training design as outlined above that includes all design details, estimated costs, recommended venues, and length of event (iii) training conducted and evaluated.

Ultimate Performance Objectives: (i) All appropriate personnel have computers, are trained in

ASYCUDA, and conduct clearance and other operations electronically. (ii) Customs in Cap Haitien operates on the best principles of modern border management.

Donald Kirkpatrick, Evaluating Training Programs. (San Francisco: Berrett-Koehler, 1994).

Component II: Initial Analysis of Procedures

Component II focuses entirely on operations and procedures. The action proposed in this phase may be undertaken concurrently, or with partial overlap, with the assessments, planning, and training design proposed in Component I. The analysis of procedures, including assessments in both Port-au-Prince and in Cap Haitien, will begin in the second month following project launch and is expected to take up to three months from start through reporting and debriefing.

No systematic analysis of Customs clearance procedures has been conducted in the Cap

Haitien Port. Clearance procedures, known as conduite en douane, are well established by the

AGD and are basically followed in Cap Haitien, although almost entirely in manual fashion. In

Port-au-Prince, clearance takes place largely electronically, and the basic risk analysis determines the channel goods must follow for clearance. Exportation procedures are simple and follow an almost universally familiar path.

The Contractor will field one or more international experts to work with local expertise in assessing the weak and strong aspects of clearance in Cap Haitien, for both importation and exportation processes. The assessment will commence with licensing and permitting requirements, determining times and costs to fulfill each requirement. In this analysis, the assessment must be inclusive of all border agencies, not just with Customs, and must consider exportation, importation, and transit operations, especially as referenced in the TFA Article 9, “Movement of Goods under Customs Control” and in Revised Kyoto’s Annex E.

The assessment will proceed methodically with each step required for clearing merchandise intended for export or for import, recognizing that exporting goods is less complex than clearing goods introduced from abroad.

The assessment will take note of all costs, to include demurrage for both vessels and for containers already unloaded, inspection by Customs and by other border agencies, duties, service fees, and other levies. It will examine the method of calculation of all duties and costs, comparing duties assessed to the tariff schedule and to established reference prices, and noting the basis for fees.

At each step, the assessment team will note comparisons with or deviations from internationally recognized best practices, with reference to GATT VIII and TFA Article VI. It will take into account the preponderance of used goods and the assumed necessity of using reference prices for establishing dutiable value, such as the AGD web site clearly illustrates for imported vehicles.

The procedural analysis requires input from private traders, freight forwarders, shipping agents, and possibly brokers. Such input may come through one-on-one meetings, group meetings, focus groups, and responses to written questionnaires, and will ensure equal consultation with men and women to the greatest extent possible, especially women private traders. The evaluators shall meet with AGD before the procedural analysis and following the actual assessment, but before the final report.

The evaluators will also debrief Cap Haitien Customs on their findings. The debriefing will allow for corrections to the final report and for informing Customs of the findings and of next steps.

Deliverables: A detailed report on all findings, recommendations, and persons met.

Ultimate Performance Objectives: Times and costs for importing and exporting goods become competitive with those in the Dominican Republic.

Component III: ICT Procurement, Installation

Component III shall begin in month 2 of the contract, concurrently with Component II, and shall be completed within five months after mobilization. Its focus is on the ICT requirements needed for Cap Haitien Customs to conduct its functions relative to processing freight in Cap

Haitien Port as well as the Caracol industrial park. Currently, Cap Haitiens Customs relies on the ASYCUDA customs software platform; the Contractor shall assume this platform will continue to be used by Cap Haitien Customs.

The Contractor shall identify functionality requirements and prepare a conceptual design and cost estimates associated with hardware (desktop or laptop computers, servers, routers, etc.)

and software (e.g. word processing, ADOBE, etc.) requirements and associated licenses. The

Contractor shall also consider the adequacy of the Customs internal operational environment, such as cabling requirements, air conditioning/ventilation, power supply, physical access control, and other factors, as appropriate. This shall be done for both the Cap Haitien and Caracol

Customs locations. Cost estimates shall be segregated by hardware, software, and operational environment categories.

The Contractor shall then prepare the bid terms and specifications for procuring the hardware and software in accordance with all relevant USAID policies and procedures, manage the procurement process, evaluate and recommend a bidder for award, and supervise the winning bidder’s delivery, installation, and testing of the products procured. The Contractor will also be responsible for issuing disbursement approval certificates/certificates of completion.

In collaboration with AGD and Port-au-Prince Customs agents, the Contractor will ensure that all personnel in Cap Haitien have been adequately trained in all aspects of ASYCUDA relevant to their responsibilities. The IT Departments in Port-au-Prince and Cap Haitien will also participate actively, whether as trainers or observers. The training will include a module on the use of ASYCUDA and other communications measures now available to enhance compliance with the TFA Articles I and II, in which some agents have recently received in-depth capacity-building.

Deliverables: (i) All procured equipment, furniture, and furnishing installed and functional as appropriate. (ii) ASYCUDA training delivered. (iii) written reports on the procurement and installation and on the training with full evaluation in three levels (delivery, learning, job performance).

Component IV: On-Going Capacity Building

Component IV will begin late in the third quarter of Year I and will proceed over twelve to fourteen months.

The Contractor will prepare training and related capacity-building events for AGD staff in Cap-

Haitien to maintain momentum during the tendering process for the PPP and after initial port reconstruction has begun. The subjects selected constitute a logical follow-on from the initial training on the TFA. These subjects all fall within the scope of the TFA, just as they did in the

Revised Kyoto Convention. They are intended to create a virtual border for clearance— beyond the actual port of entry for importation—and they place greater responsibility on the trader for collaboration and compliance. Each of them provides a method for enhancing clearance efficiency. The training events themselves, however, do not lead directly to an official regulatory facility for expediting trade, as these mechanisms require either a legislative act or, at a minimum, a ministerial decree. The trainings prepare the groundwork by stimulating interest and building understanding.

The sequence proposed here is a best judgment based on the observed realities of trade and

Customs in Cap Haitien. Offerors are free to propose a different sequence of capacity-building programs, and in so doing they are encouraged to justify their alternative selections. Offerors will take special care to ensure high participation of women personnel in these training programs. Where possible, training shall integrate themes/modules on the gender dimensions of trade facilitation, as defined in Component I, but potentially more broadly than in the

Component I training.

Advance Rulings. Article 3 of the TFA requires that, upon a trader’s written request, Customs must provide information concerning the tariff classification of the goods the applicant wishes to import as well as ancillary information that may be useful in the applicant’s decision and procedures. The information shall be timely and legally binding on Customs for a determined period, allowing the trader the delay necessary to proceed with his/her transaction.

Advance rulings benefit the trader by removing uncertainty about the dutiable value of his goods; they benefit Customs by reducing the time required for valuation. The transaction will be expedited, and disputes over the assessed value of the goods upon arrival may be eliminated or greatly diminished. Advance Rulings do not obviate any requirement for physical inspection, but judgments concerning the conformity of goods to the ruling given are easily determined.

Advance rulings facilitate trade.

Pre-Arrival Processing. Pre-arrival processing is the first of seven technical measures under TFA

Article 7, Release and Clearance of Goods. Under this measure, Customs must allow traders to submit import documentation prior to the arrival of goods. Whenever possible, lodging of relevant documentation shall be in electronic format, but physical delivery in advance of the arrival of goods is also possible and serves the same objective of expediting clearances.

Pre-arrival processing does not simply permit the lodging of import documents prior to the arrival of goods; it directly implies a responsibility on Customs to process the import declaration as quickly as possible but prior to the arrival of the merchandise. This processing has an effect similar that of to an advance ruling in that it shall expedite the clearance and hence the final release of goods. Advance rulings fall into the category of information, while pre-arrival processing is of the procedural order. They are both integral elements in Customs modernization.

Authorized Economic Operators. The Authorized economic operator (AEO) program, like pre-arrival processing, falls into TFA Article 7 on Release and Clearance of Goods. It is the last of the technical measures in this article, coming after Risk Management and Post-Clearance Audit.

This scope of work proposes that training in the AEO program—as opposed to actual implementation—be introduced early for two reasons. First, it is likely, as in most Customs administrations, that some element of the AEO is familiar and logically clear to agents in Cap

Haitien. Every Customs official recognizes that some frequent traders consistently present proper, clear documentation and that inspection of their goods never reveals deviations from what they have declared. These are trustworthy traders. In expediting their clearances— especially at moments of intense activity—Customs is actually performing rudimentary risk analysis. Under specially developed programs, such traders can become authorized economic operators.

The WCO first developed the AEO program under the SAFE Framework, the Framework of

Standards to Secure and Facilitate Global Trade. It was designed as an instrument to enhance supply-chain security, a need that will grow in importance to Cap Haitien as trade increases in northern Haiti. Although they can be complex to draft in full legal text, AEO programs offer something conceptually easy for capacity-building purposes.

Post-Clearance Audit. The TFA mandate for Customs to use post-clearance audits also falls under Article 7. Conducting periodic audits of goods already cleared has the effect of reinforcing compliance. Because it is a means of disclosing trader errors or fraudulent practices as well as consistent good compliance, it feeds essential information into risk management databases. Knowing that the last chance for discovering mistakes in clearance, such as valuation error or improper assignment of a shipment to a special regime, Customs is able to expedite imported goods with less risk of losing revenue. Thus, post-clearance audits are an important tool in facilitating trade.

Risk Management. Risk management is a central measure in the same Article 7 under consideration. The measure actually mandates the use of risk management by Customs in the import, export, and transit of goods. Customs should use selectivity criteria, such as the nature, origin, and value of goods, the profile of the importer/exporter, any transshipment information, the other parties to the transaction, and shipment/transport data.

Although agents in Port-au-Prince affirm their use of risk management techniques, in its CATT

Report World Bank consultants indicate little if any use of selectivity criteria in the clearance system and a limited use of the ASYCUDA program. The Contractor will need to confirm this information with AGD. It is advisable to engage AGD or Port-au-Prince professionals in the design of this risk management training.

The Contractor shall design initial capacity-building sessions in risk management primarily for

Cap Haitien Customs, which uses few if any formal risk management techniques.

In designing capacity-building events to address these TFA measures, the Contractor will take into special consideration the circumstances of Customs in Cap Haitien and in Haiti in general.

Bespoke training programs may be a resource, but tailoring to local conditions is essential.

At a minimum, each training session will incorporate the following subjects:

Presentation of the legal text from the TFA

History and rationale of the measure

Policy and legal framework

Procedures for implementing the measure

Institutional framework

Human resource requirements

Role of ICT

Relevance to Cap Haitien or Port-au-Prince at present

Obstacles and opportunities for adoption of practices in Haiti

Next steps

Deliverables: A complete training design for each of the five technical measures specified. Training, as well as training reports that include evaluations.

Ultimate Performance Objectives: AGD will implement the five trade facilitation programs and realize exponential gains in efficiency and in collaboration with the entire private trading community.

Component V: Project Closure

Component V is scheduled to take approximately three months. It will consist of a final evaluation, debriefings, and a report, with emphasis on the area of cooperation and communication.

A carefully prepared, comprehensive “Level 4” evaluation will assess the ultimate effectiveness of all training, procurement, and technical assistance in the Customs component of the Cap

Haitien Port Rehabilitation and PPP Project. This final evaluation will focus on changes in organizational performance clearly attributable to the numerous interventions provided under the contract. In its proposal, the Offeror shall offer illustrative measures of organizational performance applicable to the activity. The evaluation shall devote a special section to efforts made towards gender integration and gender parity as a result of the program, as well as recommendations for continued improvements in the future.

The Contractor will debrief USAID, the Cap Haitien Customs and Port directors, and the AGD on its conclusions regarding the outcome of the project, to include successes, shortcomings, and recommendations. It must be clear to all parties that the Contractor’s performance is not necessarily linked to or judged by final project outcomes, which depend on the interest of and collaboration given from all immediate stakeholders.

The final report shall take into consideration feedback from the debriefings. The final report shall be as succinct as possible, must present the findings from the Level 4 evaluation, and will be presented in near-final draft, subject only to correction of factual errors, not to opinion or findings.

[END OF SECTION C]

SECTION D – PACKAGING AND MARKING

D.1 AIDAR 752.7009 MARKING (JAN 1993)

(a) It is USAID policy that USAID-financed commodities and shipping containers, and project construction sites and other project locations be suitably marked with the USAID emblem.

Shipping containers are also to be marked with the last five digits of the USAID financing document number.