Background

The project supports modernization and reform of trade and trade-related policies by Pan Arab Free Trade Area (PAFTA) Member States as part of deepening Arab economic integration towards the establishment of the Arab Customs Union (ACU) through gradual upgrading of performance of PAFTA. Built upon the initial progress of the Executive Program towards development of the ACU, undertaken in recent years, project activities aim at strengthening the capacity and capability of Arab policy makers at the regional level, and include specific interventions to support target countries as appropriate.
The objective of the study is to assist Member States in their Arab Customs Union (ACU) negotiation process, and to provide an evaluation and full analysis of the issues being subjected to negotiations by Members, relating to the appropriate re-compensation mechanism, among them or participating Members, to offset the likely revenues losses. The study also targets development of policy
recommendations on the said mechanisms within an integrated environment for the ACU. As characteristics to a Customs Union, flow of goods, capital and factors of production circulate without any impediment in the countries of the Union. Outputs of the study will be used as a basis for negotiation and agreement to the re-compensation mechanisms.
This study will look into a number of the impacts of Common External Tariff (CET) on revenues, as well as the impacts of specific distribution formulas, either directly or indirectly, in order to identify the possible revenue losses that might occur in the affected Member States. Furthermore, it will review operational modes of revenue administration, and from these inputs, it may identify the appropriate re-compensation mechanisms for policy decisions and consultations among the countries.
The areas to be covered by the study include the following among others:

  • An assessment of the CET impacts on the revenues;
  • An assessment of revenue distribution formula implications on the Customs revenues and the likely losses;
  • •An assessment of objectives and rationale for mechanisms of re-compensation to offset the likely revenues losses, including specific criteria to determine these negative impacts to concerned Member States within the ACU framework;
  • The development of the objectives of the proposed re-compensation mechanisms to be used in addressing reductions of revenues collected.

Duties and Responsibilities

Overall, the implementation of a Customs Union brings substantial benefits, including higher revenues to Member States; however, on the short run, the implementation may cause some decline in revenue collection. Due to this practicality, it is important to understand the possible impacts so the countries may design corresponding policies and measures to deal with the challenge.
The implementation of the CET can have significant, and in some Member States even serious consequences to the collection of national revenues, particularly in countries where customs duty accounts for substantial proportion of central revenues. For these purposes, detailed country-analyses will be conducted in relation to potential impacts of the CET and revenues distribution formula on fiscal revenues. Outcomes from these researches will help ensure a clear understanding of the most appropriate or corresponding policy in response to challenges of likely revenues losses that might be associated with the CET implementation. Where direct re-compensation is envisaged, detailed analysis will be critical to make sure that solutions are provided in a timely and sufficient manner and serve the purpose of the re-compensation scheme if agreed by Members. It is also critical to ensure that decisions would be consulted and adopted by Members concerning measures of re-adjustment/re-compensation. These could be established on the basis of criteria, being agreed upon, and effectively respond to difficulties, encountered by Members in terms of incurred losses of revenues, if any.
The deliverables and outcomes of the study shall demonstrate the key findings from practical experiences that result from a detailed and comprehensive analysis. Particular focus would be on the possible decline of customs revenues currently collected by Member States through presentation of fact-based analysis of economic data (to be provided by Member States and League of Arab States (LAS)) and results from various scenarios of the sensitivity study. From that, pertinent alternatives and solutions could be formulated for policy consideration.
It may take advantages of findings of Study 1 – Analysis of the CET, particularly related to assessment of the economic and fiscal impact on the revenues and national budgets, and specific understanding of challenges that might be faced by Member States in their negotiations. Concerned analysis would help the formulation of policy recommendations and alternatives to deal with reduction in revenues in the initial stage of application of the ACU measures.
In achieving the objectives of the study, the expert will establish clear work methodologies that enable a fact-based analysis and evidence-supported assessment, as well as in-depth quantitative analysis of aspects related to challenges in revenue collection as explained above. Analysis of trade and fiscal data statistics shall be agreed upon in advance and in partnership with Member States. Overall, the assignment targets detailed understanding of possible loss in customs revenue and prioritizes the establishment of proposed mechanisms or measures of re-compensation or trade-off in order to achieve effective negotiations and activation of the ACU.
The expert will meet and consult with relevant officials in Arab governments, relevant authorities and stakeholders in Member States and the LAS Secretariat to discuss issues identified in the Terms of Reference and to gather trade and fiscal statistical data and more economic/fiscal information in function of the requirements for the study. The assignment should look into possible impacts to domestic sectors of economies in the countries. Reference will be made on how to upgrade existing schemes of PAFTA to the more comprehensive ones under Arab Customs Union.
The expert will review pertinent experiences of re-compensation or re-adjustment of fiscal resources and/or management of programs of adjustments for countries exposed to challenges and suffering from decline in revenues in other Customs unions, or in trade blocks such as GCC, of EU, ECA, and COMESA. These experiences could be further explored and adapted into circumstances of the ACU so as to integrate international best practices into the framework of policy making related to the ACU through analytical assessment. The expert will coordinate with LAS Technical Secretariat who will liaise with Member States and facilitate visits, and provide statistical information and data required related to the study.
The study should address the following technical issues:

  • Practices of re-compensation or re-adjustments for negative impacts to collection of revenues based on international common practices, including those under WTO, among others;
  • Quantitative assessment of possible impacts of the decline in revenues to Member States with application of the CET, including impacts on VAT and different taxation regimes in operation, CET and its impact, elimination of internal tariffs impact, intra-regional investments and FDI;
  • Sensitivity analysis (expressed in scenarios) to understand annual losses associated with application of the CET and its impacts on the Member States economies including trade and business operations; and
  • Proposal of mechanisms to deal with this possible decline of revenues and measures to mitigate any negative impacts.

For additional information, please refer to ANNEX I – Terms of Reference

Competencies

Functional Key Competencies:
 Corporate

  • Demonstrates integrity and fairness, by modeling the UN/UNDP’s values and ethical standards;
  • Promotes the vision, mission and strategic goals of UNDP;
  • Displays cultural, gender, religion, race, nationality and age sensitivity and adaptability;
  • Knowledge of Arab region (Arab economies and trade) and institutional environment is a must.

 Functional

  • Background knowledge about the SDGs, United Nations and UNDP;
  • Strong analytical and synthesis skills;
  • Ability to work independently and achieve quality results with limited supervision and within tight schedules;
  • Strong quantitative and qualitative research skills;
  • Excellent writing, editing and oral communications skills;
  • Strong analytical and synthesis skills, as well as presentation and drafting skills;
  • Good teamwork and interpersonal skills;
  • Flexibility and ability to handle multiple tasks and work under pressure;
  • Excellent computer skills especially Word, Excel and Power Point.

Leadership

  • Demonstrated ability to think strategically and to provide credible leadership;
  • Demonstrated intellectual leadership and ability to integrate knowledge with broader strategic overview and corporate vision;
  • Demonstrated flexibility in leadership by performing and/or overseeing the analysis/resolution of complex issues;
  • Ability to conceptualize and convey strategic vision from the spectrum of development experience.

Managing Relationships

  • Demonstrated well developed people management and organizational management skills;
  • Excellent negotiating and networking skills with strong partnerships in academia, technical organizations and as a recognized expert in the practice area.

Managing Complexity

  • Ability to address global development issues;
  • Demonstrated substantive leadership and ability to integrate knowledge with broader strategic, policy and operational objectives.

Knowledge Management and Learning

  • Ability to strongly promote and build knowledge products;
  • Promotes knowledge management in UNDP and a learning environment in the office through leadership and personal example;
  • Seeks and applies knowledge, information and best practices from within and outside of UNDP;
  • Provides constructive coaching and feedback;
  • Demonstrates a strong capacity for innovation and creativity in providing strategic policy advice and direction.

Judgment/Decision-Making

  • Mature judgment and initiative;
  • Proven ability to provide strategic direction to the project implementation process;
  • Independent judgment and discretion in advising on handling major policy issues and challenges, uses diplomacy and tact to achieve result.

Corporate Competencies:

  • Demonstrates integrity by modeling the UN’s values and ethical standards;
  • Promotes the vision, mission, and strategic goals of UNDP;
  • Displays cultural, gender, religion, race, nationality and age sensitivity and adaptability;
  • Treats all people fairly without favoritism;
  • Fulfills all obligations to gender sensitivity and zero tolerance for sexual harassment.

Kindly refer to the Individual Consultant Procurement Notice and all related Annexes by visiting the below link:

http://www.lb.undp.org/content/lebanon/en/home/operations/procurement/

Please make sure to submit all the requested documents/information; otherwise, your application will be considered incomplete

Required Skills and Experience

Academic Qualification:

  • Master’s Degree or equivalent in international trade, business administration, economics, trade and development or related field.

Years of Experience:

  • At least 15 years of practical experience in international trade, operations and functions of customs unions, advanced Free Trade Areas towards a CU-like arrangement, customs operations, revenue management and taxation;
  • Demonstrated experience in performing similar assignments, in the Arab region is an asset.

Technical experience:

  • Proven experience in a professional background in economics, trade policy and economic and trade data analysis;
  • Extensive experience in customs procedures and taxation systems, preferably in the Arab region;
  • Exposure to customs procedures and tax systems at an international level is a highly-valued asset;
  • Extensive expertise in the customs unions administration field, such as customs revenues collection, revenue sharing and payment mechanisms, import/export processing procedures, and compliance with international rules and enforcement, as well as knowledge regarding the best international/regional practices in customs unions administration in order to provide guidance on the legislative aspects of revenue administration, in addition to strategic planning and organizational and trade-related issues;
  • Expertise in quantitative and qualitative data collection, analysis and statistical methodologies, in particular within governmental fiscal statistics, as well as compilation and dissemination of fiscal and trade data of one or more countries supported by experience in the areas of fiscal policy and trade policy analysis;
  • Knowledge in the compilation and dissemination of balance of payments and investment schemes statistics, conducting surveys, trade and fiscal data collection, and compilation of foreign direct investment statistics, as well as an understanding of the effective use of information technology in customs administrations and modern tax is also required;
  • Ability to perform economic researches and summarize findings in a concise and professional
  • format;
  • Experience in the development of trade and fiscal analysis;
  • Experience in developing and implementing economic researches, impact assessment studies with a particular focus on those related to arrangements of a customs union;
  • In-depth understanding of customs revenues administration and economic and fiscal impact on customs revenues within a customs union framework.

Language Requirements:

  • Fluency in written and spoken English and Arabic is required. French is an asset.

How to Apply:

1. Read the additional information and annexes on teh UNDP lebanon website at http://www.lb.undp.org/content/lebanon/en/home/operations/procurement/

2. The consultancy is open for all International consultants who meet the selection criteria and propose a competitive fee. Interested consultants are requested to apply only through this UNDP jobs portal.

Submissions through any other media will not be considered.

The application must include the P11 uploaded as word or PDF file to the UNDP job site.

Incomplete applications will not be considered.