ESCAP

Mongolia has been advancing significantly in economic liberalisation, trade facilitation, and foreign investment since transitioning from a centrally planned to a market economy in 1990. In 2022, Mongolia’s trade turnover reached US$ 21.2 billion, signalling the nation’s growing role in global trade. The accession to the Framework Agreement on Facilitation of Cross- border Paperless Trade in Asia and the Pacific in July 2022 marks a critical step for Mongolia’s efforts in advancing cross-border paperless trade.

In this connection, this study evaluates Mongolia’s current practices in cross-border paperless trade and discusses the possible pilot projects between Mongolia and its trading partners. The study shows that Mongolia has made substantial progress in developing the Customs Automated Information System (CAIS) and Customs External Portal System (CEPS). The electronic exchange of export declarations and X-ray images with the Russian Federation is a model for successful cross-border information exchange, reducing fraud and expediting customs processes.

Still, Mongolia primarily relies on traditional paper-based methods for exchanging Certificates of Origin (COO) and sanitary and phytosanitary (SPS) Certificates, although digital options are becoming increasingly feasible

This report reviews the selected trade-related documents for cross-border paperless trade of Mongolia and preliminarily proposes possible pilot projects.