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UNNExT Workshop on
Electronic Exchange of SPS Certificates for Better
Trade Control and Facilitation
21-22 October 2015
Wuhan, China
STREAMLINING AND AUTOMATING PROCEDURES FOR AGRIFOOD TRADE
Francis Lopez President, InterCommerce UNNExT Expert
Electronic Exchange of SPS Certificates for Better Trade Control and Facilitation
21-22 October 2015, Wuhan, China
Addressing Key Issues in Agri-Food Trade
• Increasing population and income result to increase
demand for food
• Gains in trade agreements being negated by
regulations on food security, SPS and non-tariff
barriers
• Food loss and waste in cross border, agrifood trade
“ .. Promote an open and rules-based trading system that allows reliable movement of
agriculture and food products, support efficient distribution systems throughout the
supply chain.” (APEC Declaration on Food Security)
Typical AgriFood Supply Chain*
* Information Management in AgriFood Chain: Towards an Integrated Paperless Framework for AgriFood Trade Facilitation
Collaboration in Trade • Identifiers: AEOs, Product
Codes • Compliance to import
requirements • Visibility across the Supply
Chain
Case Studies • India GrapeNet • Malaysia Food and
Traceability • Vietnam TraceVerified for
Fish Exports • New Zealand eCert for Meat
Products
Case Studies • US ITDS –GS1 • China eCert, GPS and RFID Transport
• Air, Sea and Land
Case Studies
• Export
– India GrapeNet
– Malaysia Food and Traceability
– Vietnam TraceVerified for Fish Exports
– New Zealand eCert for Meat Products
• Import
– China Tianjin eCert, GPS-RFID
– US ITDS
– Philippines Trade System
• Key Success Factors
– Identification of source and products
– Specific testing procedures – Export-Import collaboration to ensure
Certification for compliance to import
regulatory requirements – Accessibility of data for transparency,
monitoring and reports – Government support, possibly with
funding, for sustainability – Tangible benefits to government and
the private sector – Cost effective technical solution
Challenges in Paper-based Processes
• Hardcopy documents
- Daily volume of documents submitted
- Accuracy, consistency of information
• Manual intervention in the review, processing and
approval
- Clerical errors in review
- Human intervention in the approval processes
- Data re-entry to generate reports
• Transparency
- Data visibility, documents in filing cabinets
- Accountability
- Limited data analysis
6
1. Export Procedures
– Export Declaration
– Certifications in Compliance to WTO SPS Agreement, availability to import authorities
– Certificate of Origin
– Manufacturer/establishment Registration, GAP, etc.
2. Cross Border Transportation
– Transport documents: AWB/BL/Waybill
– Cargo handling information, monitoring
3. Imports Procedures
– Import permit issued by regulatory agencies
– Verification on compliance to import and quarantine regulatory requirements
– Quarantine, physical inspection
– Import declaration and Custom Clearance
Export
Cross Border/
Transport
Import
Food Processors, Consumers
Producers, Traders
Focus Areas in Trade Facilitation
1. Producer, Manufacturer, Trader
– Identification of the source: product, producer, and area
– Certification particularly on the quality of produce
2. Export Trade Regulatory Organizations
– Compliance to SPS Certification and import regulatory
requirements
– Electronic SPS Certificate accessible to Import Quarantine
Agency
3. Import Trade Regulatory Organizations
– Import permits to specify requirements
– Advanced verification and acceptance of Certifications
– Risk Management to reduce quarantine, physical inspection
– Compliance to Customs requirements
Interventions for Trade Facilitation
SPS Certificate
• Sanitary and Phytosanitary Certificate
- WTO SPS Agreement
- International Plant Protection Council (IPPC) and the
International Plant Sanitary Measures No.12 (IPSM)
- CODEX Alimentarius Commission/OIE
• Issuance of SPS Certificate
- Harmonise SPS measures, based on international standards,
guidelines and recommendations
- Safeguard international trade of plants, animals and fisheries
and products thereof
9
SPS Certificate Workflow
10
Manual SPS Certificate
• Application and issuance
- Submission of application, samples support documents
- Conduct of inspection of production facilities, and laboratory
tests on products (if applicable)
- Preparation and approval of SPS Certificate
- Issuance to exporter
• Transmission of SPS Certificate
- Transmission of SPS Certificate by exporter to importer (thru
courier)
• Utilization of SPS Certificate
- Verification of the SPS Certificate and compliance to
quarantine requirements
11
e-SPS Certification
• Definition
- A secure exchange of SPS / eCert Messages from Issuing
Authority (Export) to Quarantine Authority/National Plant
Protection Organisation -NPPO (Import)
• Objectives
- Ensure compliance to health, sanitary requirements of
exporting and importing country
- Facilitate quarantine compliance and control fraud
- Trade facilitation, cross border efficiencies with advanced
information, reusable data
12
e-SPS Features
• Government-to-Government (G2G) Exchange
• Equivalent to paper SPS Certificate
• Prior Notice - available prior to arrival of goods
• Initiate pre-clearance processes including risk
management
• Verification of paper SPS Certificate
• Reusable SPS data: traders, product identifier,
quantity/volume
13
• Adopt electronic message standards for paper documents, e.g. UNCEFACT e-Cert for SPS (Health) Certificate, IPPC e-Phyto for Phyto Certificate
- Compliance of SPS application data to data element
requirements of message specifications
- Re-use of application data in the issuance of electronic SPS
Certificate
• Arrangement on the Exchange of SPS Certificate
- Undertaking on the issuance of the e-SPS
- Use of e-SPS to ensure SPS Certificate, to facilitate quarantine
clearance at border
- Mode of exchange and data communication protocols (pull,
push, exchange)
14
Automating SPS Certificate
E-SPS Workflow
15
E-SPS Initiatives
• IPPC IPSM No 12: ePhyto Certificate Hub Model
• AU DAFF e-CERT: Transmission of UNCEFACT
e-Cert
• US ITDS GS1: Use of Identifiers on Products and
Traders
• PAA e-SPS: Provisioning of Workflow
Infrastructure
16
IPPC ISPM No.12 : e-Phyto
• Definition
- It is the electronic transmission of phytosanitary certificate
information (electronic equivalent of a paper phytosanitary
certificate), containing the same information and giving the
same guarantee.
• Key Elements
- Message format
- Harmonisation of message contents (as prescribed in
ISPM12)
- Secure transmission
- Authenticity of the message
17
IPPC: International Plant Protection Convention
ISPM: International Standards for Phytosanitary Measures
IPPS ISPM No 12 ePhyto
• Electronic Certificate may be issued where accepted by
the National Plant Protection Office (NPPO) of the
importing country
• Specific required provisions - The mode of issuance, transmission and level of security is acceptable to the
NPPO of the importing country
- Information provided is consistent with the IPPC Model Phytosanitary
Certificates
- The purpose of the phytosanitary certification under the IPPC is realized
- The identity of the issuing NPPO can be adequately established and
authenticated
• Available to the relevant NPPO upon consignment
arrival
18
Agreed Principles and Recommendations for the e-Phyto Exchange
1. Agreement on definition of e-Phyto Certification
2. All elements for e-Phyto Certification exchange
mechanism will be derived from IPSM 12
3. Universally accepted standards for secure
Certificate exchange, message format and
implementation of procedures will be used
4. UN/CEFACT Schema (data elements, core
components) must be reviewed to ensure
consistency with IPSM 12 requirements, and a user
guide developed to include an ‘IPSM12 Overlay
for the UN/CEFACT Schema’
19 . . 9 Points Summary on Key Agreements during the Plenary of the 3-day Workshop
Agreed Principles and Recommendations for the e-Phyto Exchange
5. During transition periods in implementation, current
hard-copy practices would still apply
6. Rely on IT experts to provide advise on methods for
flexible and secure electronic transfer
7. Initiate a multilateral standardization approach rather
than a bilateral approach with respect to country-to-
country negotiations for exchange
8. Engage developing countries through regional
cooperation and pilot projects and use IPPC for
outreach activities, and
9. Develop simple-to-understand communication pieces
such as Background Paper and “Myth-busting” Question
and Answers 20
Australia DAFF e-Cert
• E-Cert Website (https://apps.daff.gov.au/ecert/default/Welcome.aspx)
- DA Biosecurity Internet application for electronic certification of
traded food and agricultural commodities. This application
currently provides electronic certification for Australian exports
of Meat, Skins, Fish, Dairy, Horticulture, Grains, Wool, Eggs and
Inedible Meat
- Online search/view of Export/SPS/Health Certificates
- Allows updates on Certificate status: Accepted, Detained or
Request for Replacement
- Allows download of Certificates in XML format
• Alternative Access Mode to E-Cert Data
- Pull data from AQIS via interaction with SOAP interface
- Push data to Import/Quarantine Authority via SMTP and digital
certificates
21
Department of Agriculture e-Cert
AU DA
SPS Certificate
Import Quarantine
Agency
Online SPS Verification
Download SPS (Pull)
Transmit e-SPS (Push)
3 MODES OF E-CERT EXCHANGE
AU-PH e-Cert Exchange
AU DA
E-DOC SPS Certificate
PH Bureau of Animal Industry
e-SPS Certificate With Import Permit Reference Number
D A Trade System
Exporter Importer
Import Clearance
SPS Certificate
PH to Facilitate Quarantine Clearance: e-SPS to have Import Clearance RefNo, transmitted upon approval, auto-validation vs Import Clearance prior to arrival of goods
US ITDS GS1 Pilot E-Cert in 2010
• Toys, Cut flowers, Meat and Poultry
• Global eCommerce Product Catalog
- Granularity of product identification
- Product visibility across borders
- Consumer security
- Cost savings
• Compliance to unique country-by-country,
product-by-product requirements
• Enhanced Risk Management
24
Use of GS1 Standards in SCM
25
GS1 Standards
26
• Global Location
Number (GLN)
• Global Trade
Identification Number
(GTIN)
• Global Data
Synchonization
Network (GDSN)
GS1-128 Bar Code
US ITDS GSW Pilot E-Cert Findings
• 100% of the 21 static characteristics assigned to
identify and classify meat and poultry products
could be downloaded from a GS1 GDSN-
compliant catalog
• No information technology or security obstacles,
enable re-use of supplier published product
information, with complex product
characterisation
• Improved data accuracy and efficiencies (i.e.
reduce product characterisation errors)
28
APEC GDS Initiative
• The Global Data Standards (GDS) initiative has been driven by the APEC Business Advisory Committee since 2012
• Proposing that Governments leverage business data and systems such as barcoding and data sharing platforms in cross – border control and supply chains for improved transparency and better risk management
• Result could be better product visibility and improved efficiencies, faster clearance, less spoilage etc.
• The use of Global Data Standards in APEC supply chains received endorsement in the Leaders’ Declaration and in the Ministers’ Statement in Beijing in November 2014 with official support for pilot projects
Nine pilot project proposed by APEC economies and LSIF, to be executed Q4 2015-Q2 2016
Lead
Economy
Nominated Product /
Reason for Selecting Product
Trade Route
Hong Kong China Wine: high value, origin-sensitive, subject to regulatory
control
Australia→HKC
New Zealand Deer Velvet: high value, easily perishable, origin-sensitive NZ→Korea
New Zealand Seafood: Origin-sensitive, Easily Perishable, Subject to
regulatory Controls, Seafood widely traded in many APEC
Economies, Long supply chain with cross economy export,
import and processing, Includes border authority
NZ→HKC / NZ→China→USA: Two linked seafood
projects proposed: point–to-point export
(New Zealand and HKC), and Multi-economy supply
chain (New Zealand, China, USA).
Australia Boxed meat: Subject to regulatory Controls Australia→USA; Export: Australia (Teys Australia –
supplier, Chalmers Industries – Road Transport,
Hamburg Sud – stevedoring /shipping, Port of Brisbane –
Port Facilities), Australia Customs, Australian Dept of
Agriculture
Russia Furs: high value, origin-sensitive, subject to regulatory
control
China→Russia
Mexico Tequila: High value, Origin-sensitive, Subject to regulatory
control
Mexico→USA
Peru Asparagus: Easily perishable & subject to regulatory
control (Traceability regulatory eg. PTI – Produce
Traceability Initiative for EEUU and Canada
Peru→USA
Peru - HKC
Malaysia Musang King Durian Whole Fruit
/ Processed Fruit: High Value, Easily Perishable, Origin-
sensitive, Subject to regulatory control, Temperature
sensitive
Malaysia→HKC
Malaysia - China
APEC LSIF/
ABAC
Pharmaceuticals: Subject to regulatory Controls USA→HKC/Philippines/Indonesia/Korea/ Singapore
(TBC)
Objectives and Progress
Objectives • Show how GDS and EPCIS (barcodes) can deliver direct benefits for
traders, customs and governments
• Reinforce use of barcoding for missing shipping mark protocol
• Demonstrate how GDS compliments AEO/TTP’s
• Show how to leverage GDS based services including GDSN (GS1net),
Recallnet portal and EDI (Transport Instruction)
Progress
• Pilot participants are collaborating (US Customs/USDA still WIP)
• Completed supply chain events map, data reqt’s and collection points
• Established and tested EPCIS V1.1 platform (GS1HK ezTRACK)
• Reviewing GDSN, EDI and recall requirements
• Working with pilot team and Policy Support Unit (PSU) to finalise KPI’s
• First shipment due late Oct/Nov 2015
Application of Global Data Standards
(GDS) in APEC Economies:
Methodology of the project
A. Identify benefits
• Cost savings: measurable/ static
• Sales boost and customer service factors: dynamic, less easily measured
B. Develop baseline indicators and benchmarks
• Improved planning
• Customer satisfaction
• Efficiency gains
C. Develop survey templates
• Companies in the pilot supply chain
• Stakeholders
D. Estimate costs and benefits
• Error rates
• Timeliness of delivery
• Labour costs
• Inventory costs
• Transport system costs
• Consumer benefits
• Others: product recovery and recall, proof of authenticity
E. Review of existing operations
• Delivery of clean data
• Data security and ICT integration costs for SMEs
• Benefit-cost assessment report
• Policy Recommendation
Pan Asia Alliance e-SPS Initiative
• PAA members are authorized services providers of their respective Customs and other government agencies, to enable electronic transactions
• The PAA provides safe and secure cross border exchange of electronic trade, transport and commercial documents
• PAA e-SPS initiatives aim to facilitate collaborative e-SPS exchange between economies
PAA Collaborative eSPS Exchange Model
34
35
PAA E-SPS Exchange
PAA e-SPS with One SP
36
E-SPS Challenges
• Largely manual SPS processes issuance and utilization
• The receipt/access to e-SPS Certificate mainly to
authenticate paper SPS Certificate (control fraud)
• Messaging, connectivity and IT infrastructure issues
• Compliance to import requirements and the rejection
of SPS is not addressed by most e-SPS initiatives
• Legal, policy framework for the use and exchange of
electronic messages in lieu of documents
37
Thank you.
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