This chapter is a new addition to the CPMM Annual Report 2023 aimed at highlighting existing and new policies and regulations. These are presented at country levels. Each section contains the date of the announcement or event, the public stakeholders involved, and high-level descriptions of the policy or regulation. The range of policies covered in this chapter includes transport, transport facilitation, trade, and trade facilitation policies. 1
In 2023, member countries of the CAREC program implemented an array of trade, transport, transit, and customs-related reforms. These measures respond to the persistent challenges documented in the CPMM reports, highlighting border delays, high compliance costs, and fragmented procedures as key impediments to regional trade. Encouragingly, many governments have demonstrated a commitment to digitalization, regulatory alignment, and corridor development, all of which are core strategies that reduce the time and cost incurred on the corridors. This chapter synthesizes the notable national policy advancements and assesses their likely impact on cross-border efficiency and regional integration.
Digitalization and Single Window
A striking theme in 2023 has been the proliferation of digital trade platforms. Azerbaijan, Turkmenistan, Pakistan, Kazakhstan, Mongolia, Tajikistan, and Uzbekistan introduced or expanded national single-window systems, port community systems, or customs automation platforms.
Azerbaijan’s Digital Trade Hub and the Green Corridor for Trusted Traders are examples of mature digital policy instruments. These systems enable the electronic submission of documents, simplified customs inspections, and accelerated border clearance. Azerbaijan’s leadership in digital trade is directly aligned with CPMM indicators (particularly border-crossing time and cost), which these systems are designed to reduce through automation and predictability.
Similarly, Mongolia’s Customs Automated Information System (CAIS) and Pakistan’s National Single Window (NSW) are pivotal to reducing manual paperwork and enhancing transparency. Mongolia’s CAIS replaces an outdated system, offering over 40 online services for traders and businesses. Pakistan’s NSW integrates regulatory bodies and enables seamless filing of customs, port, and quarantine documents, a reform likely to decrease both clearance time and informal payments.
Even countries historically cautious in digital reforms have made strides. Turkmenistan’s adoption of the Automated System for Customs Data (ASYCUDA) World-based National Trade Single Window demonstrates its intention to modernize. This reform contributed to the country scoring highly in the 2023 UN Global Survey on Digital and Sustainable Trade Facilitation, signaling alignment with international best practices.
Corridor Modernization and Infrastructure-Linked Policy
Physical bottlenecks remain a central concern in CAREC. Border congestion, especially at multimodal hubs or isolated BCPs, stems often not from lack of investment but from inadequate policy alignment. In 2023, several countries took steps to address this through corridor-specific policies.
Mongolia completed substantial modernization of the Zamiin-Uud border-crossing point (BCP), expanding vehicle gates and upgrading infrastructure. This investment responds directly to delays recorded in the CPMM, where Zamiin-Uud has historically shown high average border-crossing time, especially for PRC–Mongolia trade.
In Georgia, the government pursued the expansion of the Trans-Caspian International Transport Route (TITR), alongside Azerbaijan and Kazakhstan. Policies supporting the TITR include the formation of a multimodal transport operator and a unified tariff structure, eliminating two of Middle Corridor’s consistent pain points—tariff inconsistency and poor route coordination between different stakeholders.
The Kyrgyz Republic’s enhancement of the Bishkek–Osh corridor and Tajikistan’s rehabilitation of the Dushanbe–Khujand road target critical domestic links that feed into CAREC corridors. By improving road quality and reducing travel time, these projects will likely improve corridor speed, a core CPMM trade facilitation indicator.
Notably, Turkmenistan introduced a revised tariff system at the Turkmenbashi Port, aiming to boost throughput and attract cargo from Russia and Central Asia. Coupled with discussions on trust management of port terminals, this marks a policy shift toward commercializing state-managed logistics assets.
Institutional Cooperation and Customs Harmonization
Several CAREC members focused in 2023 on reducing policy fragmentation and harmonizing customs protocols with neighbors. These softer institutional reforms are as vital as infrastructure reforms and often more cost-effective.
A standout case is the bilateral agreement between Tajikistan and Uzbekistan, eliminating cargo permit requirements (dozvols) for mutual trade. This targeted policy intervention reduces compliance costs, shortens transit time, and lowers risks of cargo damage or informal levies. However, the exclusion of thirdcountry transit highlights persistent gaps in regional harmonization.
Uzbekistan and Turkmenistan also launched a digital transport registration platform for bilateral cargo. This not only enables paperless trade but also strengthens coordination across their customs agencies— an efficiency-enhancing measure aligned with CPMM goals.
The Kyrgyz Republic and Uzbekistan, too, signed customs cooperation protocols focusing on information exchange and financial compliance. These steps complement each country’s national reforms and help close the gap between formal rules and on-the-ground implementation.
Trade Incentives and Regulatory Liberalization
Numerous reforms in 2023 aimed at creating a more attractive regulatory environment for international trade. Countries reduced trade barriers, adjusted tax policies, and created incentives for trusted operators.
Uzbekistan reduced VAT from 15% to 12% for imported goods and exempted foreign-investor imports from customs duties. This not only encourages FDI but also lowers trade-related costs and is especially relevant for SMEs and new market entrants. The measures are timely as well, given Uzbekistan’s increasing role as a trade hub in the Central-South Asia corridor.
Kazakhstan proposed a “green lane” for perishables at the Kyrgyz Republic border, reflecting a pragmatic response to seasonal congestion. Long border delays for perishable goods erode trade value and cause spoilage. A separate lane with expedited clearance protocols could significantly reduce border time for food shipments, an issue highlighted by CPMM surveys and corridor-specific time-and-cost analysis.
In PRC, the creation of the Xinjiang Pilot Free Trade Zone and the new export control regimes represent both trade facilitation and regulatory tightening. The FTZ offers customs streamlining in remote border areas like Horgos and Kashgar, critical transit points for PRC–CAREC trade. At the same time, stricter controls on strategic minerals suggest China’s dual-track approach: liberalizing routine trade while safeguarding sensitive sectors.
The 2023 policy landscape across CAREC countries illustrates a positive trajectory toward trade facilitation and corridor efficiency. Digitalization, regulatory coordination, and infrastructure-driven reform are becoming the norm rather than the exception.
These trends align well with the CPMM’s mandate to track and improve cross-border performance. Policies like single windows, green corridors, and tariff liberalization demonstrably contribute to lower border-crossing time and cost, especially when supported by multilateral harmonization and stakeholder engagement. For instance, digital reforms in Azerbaijan and Pakistan reduce documentation handling time, while Tajik–Uzbek permit removal slashes procedural delays and improves delivery reliability.