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BCM Advocacy Update on Certificate of Origin Issue
1. Date: 18 August 2016
BCM 1ST
ANNUAL SUMMIT PROCEEDING
Objective
To raise and deliver voice of business community to Government of Mongolia and to have the inputs
from business community included in the Government Action Plan as well as Special Plan to
Mitigate Economic Hardship initiated by the PM. Another goal is to inform, raise awareness and get
support of the public on key messages of private sector towards the new Government
Background
In April 2016, the BCM organized the 1st Annual Summit to identify common interests and concerns
within the business community in order to contribute to the policy agenda that will be adopted by the
new government. As result of this event, “BCM 1st Annual Summit Proceeding – Key Messages to
Government Leaders” is now finalized in Mongolian and English languages. This document is
comprised of comments, views about common issues as well as possible solutions as a
recommendation generated from BCM members, sectorial experts and overall private sector that
represent over 200 organizations. The key three messages from the business community to the
Government of Mongolia are to maintain stability, improve capacity and business environment.
BCM Actions to Date
2016/08/15 A Mongolian version of the proceeding pager published and sent to the President,
Prime Minister, Deputy Prime Minister, Parliament Members, Ministers and Standing
Committee chairs
2016/08/16 Bloomberg TV interview with Ch.Mergen talking about the summit proceeding key
messages aired
2016/08/16 Engaging social media posts are continuously made through BCM twitter and
Facebook, LinkedIn accounts and BCM website
2016/08/18 Interview with Ch.Mergen titled “It is important that private sector views are reflected
in state policies” was published in Zasgiin Gazriin Medee
2016/08/19 Interview with Ch.Mergen titled “Private sector wants stability and improvement in
business environment” was published in Udriin Sonin newspaper
Next Steps
2016/08/22 Newspaper article focusing on stability in business sector and financial and monetary
policy to be published in Unuudur newspaper
2016/08/22 - Publication to be distributed to Government agencies and partnering organizations
How You Can Help
As a valuable member of BCM you can help us to further spread the summit proceeding key
messages through your respective channels of communication.
THE BUSINESS COUNCIL OF MONGOLIA
ADVOCACY UPDATE
2. CERTIFICATE OF ORIGIN ISSUE
Objective
To voice out members’ as well as wider business community concerns and feedback regarding new
regulation on Certificate of Origin (CO) to respective Government Authorities and to have necessary
amendments made to existing legislations.
Background
According to the revised Customs law of Mongolia and Customs Tariff and Tax Law and the
Government Decree # 101 dated February 15, 2016 on "Approval of Revised Rule on Imported
Goods' Certificate of Origin", all imports entering Mongolia from any exporting nation must be
accompanied by the original document of a formal CO in order to obtain the Most Favored Nation
(MFN) tariff rate. This regulation would take effect 1 October 2016. Previously, the Mongolian
Customs General Administration required a formal Certificate of Origin only for hazardous goods.
This regulation may have been promulgated in connection with the recently established Mongolia-
Japan Economic Partnership Agreement. This regulation imposes a heavy burden of unnecessary
costs on imports that are subject only to the MFN rate and causes additional delays in processing
imports.
BCM Actions to Date
2016/07/26 NAMBC President Steve Saunders prepared and shared detailed study and draft joint
letter to BCM. This letter was then used as basis during the consultative meeting on
August 3rd
.
2016/08/01 Executive Director (ED) sent e-mail to Japanese Ambassador Shimizu san requesting
information on CO issue and possible actions from the Embassy of Japan (EJ)
2016/08/03 BCM hosted a consultative meeting with General Customs Administration official in
charge of CO issues, business associations including AmCham, Mongolian National
Chamber of Commerce and Industry, CEO Club and BCM Logistics Working Group
members.
2016/08/08 Letter requesting postponement of effective date of regulation to Jan 1st
, 2017 was
sent to the General Customs and Tax Authority
2016/08/09 ED met with Odonjil, former head of Department of Foreign Trade and Economic
Cooperation under Ministry of Foreign Affairs (MFA) to exchange views on CO issue
2016/08/10 ED and Partnership Manager met with Kayoko san from EJ. Similar concerns were
raised by EJ and agreed to further cooperate
2016/08/12 ED initiated contact with newly appointed head of Department of Foreign Trade and
Economic Cooperation, MFA to congratulate with new appointment and request
official meeting
2016/08/16 Representatives of BCM and NAMBC met with V.Enkhbold and 3 other officials in
charge of foreign trade, customs and international relations. As a result of this meeting
MFA agreed to study the issue further and raise it to the Minister to find solutions.
Also, a key point person from MFA was appointed to be in charge of cooperation with
BCM
2016/08/18 Letter was sent to Ts.Munkh-Orgil, Minister for Foreign Affairs stipulating overall
analysis on how the new regulation contradicts international practices and how it
burdens the private sector. The postponement of effective date to Jan 1st
2017 was also
requested.
Next Steps
Letters sent to GCA and MFA will be followed up
Further meetings and dialogues will be kept with related officials and authorities
3. How You Can Help
BCM is ready to advocate your voices and raise your concerns to related authorities in a joint and
strong argument based way. So please let us know if you have any issues facing your business that
we could advocate for you.
BCM Advocacy Contact: Kh.Otgongerel, Partnership Manager
E-mail: Otgongerel@bcmongolia.org
Tel: 317027/70114442/99105817