13 GMS Agri eTrade Facilitation_Somnuk SKeretho

8/2/2019 13 GMS Agri eTrade Facilitation_Somnuk SKeretho

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e-Trade Facil it at ion: What needs t o be done?

Session I I : Enhancing Compet it iveness on Sustainable Sourcing andrac ng o gr - oo ro uc s n e

Dr. Somnuk Kerethor r, u r v

Kasetsart University, Thailand

The Eighth Meeting of the Working Group on Agriculture (WGA-8)25-26 October 2011, Siem Reap, Cambodia


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Obj ect ives of t his present at ion

1. Propose a recommended framework and methodology*

(towards improving the GMS trade competitiveness

through applying ICT for trade and trade facilitationof agri-food products)

2. Present a draft outcome of the first ste of this framework

(a conceptual proposal on what needs to be doneas an initial concept paper for discussion and refinement;an or a ec s on o go on or no , or on w c rec ons

but not necessary the final commitment).

detailed feasibility study and high-level master plandevelopment, then using it for again further refinement, decisions,

Page 2 The 8th Meeting of the GMS-Working Group on Agriculture, 25-26 October 2011, Siem Reap, Cambodia Dr. Somnuk Keretho

.

* Referring to a SWIF framework, this presentation is based on a draft Managers Guide for Single Window Planning and Implementation,in which a global training will be conducted in December 2011, Geneva.


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What is our Visionn i r ir m n ?

Vision: Improving Trade Competitiveness in GMS through-

1. Producing and exporting agri-food products. us a n ng or sma o er armers pro-poor

3. Reaching GMS intra-region and global markets (demand-driven)

4. Meeting consumers-required standards and quality assurance5. Applying green energy and climate-friendly good practices

6. Supporting foods traceability

7. Involving cross-border supply chain thru the economic corridors

8. Using regional and PPP collaboration approach

9. Buildin u on the AINS with e-Trade e-Trade Facilitation etc.


Applying ICT as enabling tools to realize the above visions


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Why we need a systematic frameworkto im lement our Vision?

GMS Trade Competitiveness Vision. . -

Therere so many complicated challenges to transform our Vision into Reality.

Market accessSupply-side Capability

Awareness ComplicatedEx ort Procedures

Harvesting Post-Harvesting

Logistics & Traceability

Product Quality

Laws and Regulations

any ta e o ers

Conflict of Interest Capacity BuildingBusiness Model Complicated Standards

Investment

FundingComplex

Inadequacy in Technology Infrastructure

omp ance

GovernanceMany different ICT systemsPeople and Business

In-Readiness

mpor ng roce ures

Change Management


Reality


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We need a commonly-agreed Archit ect urefor managing and m igrating t he vision into realit y

WGA needs to agree on a holistic & integrated architecture to-

making, management and implementation of the vision.

cop ng e v s on w ere poss e, w quan a ve goa s With pictures, systematically decomposing our challenges

,

and related governing rules (e.g. who is in charge). Developing several levels of pictures, so called blueprints,

appropriate for different viewpoints describing both

the As-Is architecture and the To-Be (future) architecture - ,the high-level master plan and then the detailed action



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A High-level Architecture (critical success components)for the GMS smallholder farmers to export agri-food Products to the World Market

GMS Trade Competitiveness Visione.g. 5% GDP increasing through exporting agri-food products by 2015

1. Demand-driven strategy-

Systematically decomposing our challenges into smaller and easier manageable components

Many StakeholdersSupply-side Capability

AwarenessComplicated

Export Procedures

Harvesting -

Logistics & Traceability

, ,

2. Contract-farming management(involving smallholder farmers)

Laws and RegulationsConflict of InterestComplianceRegional Connectivity

Market access Capacity Building

Investment

3. 7-P collaboration & sound business model(small P-farmers, larger P-cooperatives, P-financial, P-auditors, P-freight, P-public, P-regional platform)

Inadequacy in Technology InfrastructureGovernanceMany different ICT systems

eop e an us nessIn-Readiness

Barriers in Interoperability Chan e Mana ement

4. Trade and Transport Facilitation (TTF) Enhancement(improving TTF and engaging with freight forwarders, other logistics providers, and regulatory agencies)

.(Improving product packaging and value-added manufacturing etc., and implementing farm

management IT systems with traceability and connecting with regulatory Single Window system(s)


Reality

A. Understand the As-Is conditions

of the above components

B. Define the To-Be (better, faster,

more profitable) conditionsof the above components


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Supply Chain Management7-P collaborat ion

I m ort inDistribution Export

Country

Public Sector

Freight/ Logist icsCompany

6.5.

er

Financial SectorADB & Regional

Platform

Information Cooperat ives orCompany

er

Technology andKnowledge t ransfer

2.3. 7.

Financialloan to buildfarm

Sellorganic

rod

uctsback

ellsuppliers

and

feedback

hn

ologyand

ledgetransf

chn

ologyand

le

dge

transf

QualityQualityAuditor

4.

Farmers

Te

Kno T

e

Kno

1.and Certifying

and t echnologytransfer


Ref: Modifying from Dr. Pornsris CP presentation: during Asia-Pacific Trade Facilitation Forum, Korea, October 2011


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Small farmers through co-op exporting bananas toJa anese Markets with a barcode traceabilit s stem

a case example

70-75%bananamatur tyforpost

harvestingat the farms

Ready for trucktransportation

andexporting to Japan

Traceability information,

e.g. each banana packagecoming from which farm,

is available on the internetfor Japanese consumers


.


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Proposed Management Act ions

1. In this meeting, review and refine the proposed conceptual. . , ,

the proposed conceptual project roadmap (slides 3, 6, 7, 9, 10-13)

2. After this meeting, conduct a further detailed study includingthe as-is conditions and proposed To-Be architecture, high-level master plans and/or action plans for the next 4-5 years

3. In the next meeting, collaboratively review and refine theproposed architecture and plans, and secure the political will

4. Then, implementing, monitoring and controlling the plans, . . - ,

then extending to more number of participants andextending to cover more products, etc.


5. Collecting lessons learned, and improving in each iteration


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Conceptual Proj ect Roadmap

Objectives: Step-by-step transition for GMS smallholder farmers to exportQuality Agri-Food Products to the World Market

What we needs to do: 1st Stage (Beginning): Capacity building for farmers

& farm groups, and starting cross-border supply-chain pilot project(s) with

GMS, e.g. quality rice or organic rice.

Demand-driven: Find the market first, then understand and start to raduall

meet the importing countrys requirements,for example, no chemical usage at least 3 years consecutively to export organicrice to EU so startin the da 1 b sto in an chemical usa e in the ricefields, using seeds without insecticides, adopting GAP, then the 1st year weshould reach the local markets and/or within GMS,

harvesting/production, collection, processing, logistics, etc.

New business process and information systems: developing Farmer


anagemen n orma on ys ems w crop managemen , pac ag ng,

traceability with barcodes, trade/transport facilitation e-documents,


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A lot of opportunities for improvement

Trade Facilitation

Supply DemandTrade Trade

DemandMarket

&value added

manufacturing

SellerExporter

Freight

TransportProviders

BuyerImporter

RegulatoryGov

Agencies

mpor erFreight

TransportProviders

RegulatoryGov

Agencies

Improving

productions

across a dry borderor across the ocean

E-Trade

with

E-Trade

to meetthe requirements

of the demandMarket

Improving ICTSingle Windowat the exporting

country, e.g.

Meeting ICTe-document requirements

of the importing country, e.g.paperless customs of Thailand,

Understandand meet

the buyersrequirements


& applying

ICT for Harvestingand Traceability

paperless customs,

e-permit, e-SPS,

and ICS of EUs,


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Concept ual Proj ect Roadmap (cont )

3rd Stage (Popularizing): Popularizing the projects to cover other agri-food products and with more numbers of farmers and businessparticipants, involving with more strict/global requirements

Promoting International good agriculture practices, and certification, . . , ,

Fostering Business Associations within GMS countries

Further improving management for production, collection, processing,

logistics, etc. Proving hand-on capacity building and training

age eac ng o a ar e s : ee ng e requ remen s o g o amarkets, e.g. EU markets and US markets organic requirements, and

obtaining the necessary certifications. Fulfilling the global standard requirements,

Obtaining the world-recognized quality certifications


xpor ng more o e g o a mar e s

Maintaining the quality, etc.


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Transform ing AI NS int oe-Trade and e-Trade Facil it at ion Plat form

Objectives: ICT supporting systems enabling smallholder farmers to export-

Expected Functions:

, , ,

Harvest Management for farmers and cooperatives, e.g. crop/areasidentification/tags and crop management, auditing & certification

information, Post-Harvesting: packaging information, farms and logistics tracking and

,

E-Trade: demand-side information access (e.g. to Alibabas rice trade

opportunity), product information, order submission, order fulfillment,banking interface for e-payment,

E-Trade Facilitation/e-Logistics: import/export procedures and document


managemen , connec v y w na ona expor ng e n ows, an

(import) Single Window or ICS (Importing Customs System)..


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An Archit ect ure Development Met hodologyfor t ransform ing GMS Vision int o Realit y, and t ransform ing AI NS int o e-Trade Platf orm

(used in the conceptual analysis, used in the detailed study analysis, used in formulating the plan(s),

Obtain Political Will

Agree on the vision & scope

Establish co-stakeholder

platformCollect lessons learned

Propose next improvement(s)

BBusiness

HArchitecture

Change

AArchitecture

Vision

Appoint SW task force

Conduct Business

Ensure businesscontinuity & security

CInformation

Management

GIm lementation Requirements

Create awarenessProvide training

Oversee the

level agreement

Architecture

DF

Governance Management Simplify documents withdata harmonizationMonitor the phasing

deployment

TechnologyArchitecture

MigrationPlanning E

Opportunitiesand

Solutions

Architecture

Layout ICT infrastructureConduct financial

Migration planning


nac e- ransac on aws

Establish standards for Interoperability

model study


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Conclusion

This presentation proposes

1. a recommended architecture approach to help us

systematically thinking on how to analyze, plan,manage an mp emen our v s on s

2. an initial concept and a conceptual roadmap on what

nee s o e one or ur er re nemen an ec s ons



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Conclusion

Recommend some points for further discussion & refinement

ar y ev s o n an scope s e

Discuss critical success components (slide 6, 14),

. . , , ,funding and resources, capacity building, readiness, .

Discuss conceptual project roadmap (slide 10-13)

and some key features within each stage Discuss the scope and deliverables of a detailed study to be

-components and refined roadmaps for the next 4 years, and propose detailedfunctional requirements of the extended AINS e-trade/e-trade facilitation

Discuss other concerns, e.g. what should be the scope of apilot project, etc



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References

Eveline van Stijn, Thayanan Phuaphanthong, Somnuk Keretho, Markus Pikart,Wout Hofman and Yao-Hua Tan Sin le Window Im lementation Framework(SWIF), Free University Amsterdam, Kasetsart University, Bangkok, UNECEand published as an EU-supported ITAIDE D5.0:4b deliverable.

, , , ,Wout Hofman, and Yao-Hua Tan,An Implementation Framework for e-Solutionsfor Trade Facilitation, in the book Accelerating Global Supply Chains with IT

Thayanan Phuaphanthong, Tung Bui, and Somnuk Keretho,Harnessing Interagency Collaboration in Inter-organizational Systems

-Transport Facilitation, International Journal of Electronic Government Research(IJEGR), Vol. 6, No. 3, July-September 2010.

Somnuk Keretho, (draft) Managers Guide for Single Window Planning andImplementationOctober 2011, to be published as an UNNExT guideand a global training will be conducted in December 2011, Geneva


p: www.unece.org ra ewe come capac y- u ng- or- ra e- ac a on g o a -

trade-facilitation-conference/workshop-programme.html


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..ear r en , pray a you may en oy goo ea an a

all may go well with you, even as your soul is getting along well.

3 John 2 [The Holy Bible].

Dr. Somnuk Kerethorec or, ns u e or nnova on

Kasetsart University

s u- nova.org


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Trade Logistics 3 Kinds of Flow

Seller(Exporter)

Buyer(Importer)

Physical Goods

Payment

Information/Documents

Customs Other-Government-Agencies

Information/Documents

Ship Agent Transport-Operators

Terminal-Operator Carriers

Freight Forwarders


BanksCargo Insurance


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Document s needed t o Export RiceDocument s needed t o Export Rice ( from Thailand)( from Thailand)( fr om purchase order unt il t he cargo container leaving t he sea port )( fr om purchase order unt il t he cargo container leaving t he sea port )

21. Master Sea Cargo Manifest(17)1. Proforma Invoice (35)

36 Documents involving 15 parties, and more than 700 data elements

22. House Sea Cargo Manifest (37)

23. Export Declaration (75,39)

24. Good Transition Control List (22,3)

2. Purchase Order (39)

3. Commercial Invoice (50)

4. Application for Letter of Credit (24)

25. Application for Permission to Export Rice (KP. )

26. Sales Report (KP 3) (21)

27. Application for the Collection of the Permit for the Exportof Rice (A. )

5. Letter of Credit (32)

6. Packing List (25)

7. Cargo Insurance Application Form (20)

28. Permit for the Export of Rice (A. 4) (32)

29. Application for Certificate of Standards of Product (MS.13/1) (44)

.

9. Insurance Policy (24)10. Booking Request Form Border Crossing (24)

11. Booking Confirmation Border Crossing (31).

31. Certificate of Product Standards (MS. 24/1) (45)

32. Certificate of Fumigation (21)

33. Application for Phytosanitary Certificate (PQ. 7) (29)

12. Booking Request Form Inland Transport (16)

13. Booking Confirmation Inland Transport (18)

14. Bill of Lading (40)

34. Phytosanitary Certificate (34)

35. Application for Certificate of Origin

36. Certificate of Origin (38)

15. Empty Container Movement Request (TKT 305) (19)

16. Request for Port Entry (TKT 308.2) (27)

17. Equipment Interchange Report (EIR) (24)


.

19. Container List Message (32)

20. Outward Container List (34)* Number in parenthesis is the no. of data elements


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Conduct Business Process Analysis- Exporting JasmineExporting Jasmine RiceRice from Thailandfrom Thailand --

20 Time-Procedure Chart15

3 days

4 days

14

131 day

16

10

53 days

1 day

5

6 7 8 9

2 days4

2 days 10

1 day

11

1 2 3 4 5 6 7 8 9 10 11 12 13 14 Process0

2 days

1

2

1. Buy - Conclude sales contract and trade terms2. Obtain export permit3. Arrange transport4. Arrange the inspection and fumigation5. Obtain car o insurance

8. Stuff container(s)9. Transfer to port of departure10. Clear goods through customs11. Handle container at terminal and stow on vessel12. Pre are documents re uired b im orter


.6. Provide customs declaration

7. Collect empty container(s) from yard

.13. Verify the accuracy/authenticity of exported cargo

14. Pay - Claim payment of goods


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A lot of opportunities to improve export/import procedures anddocuments requirements to improve GMS trade competitiveness

Indicators Lao PDR Cambodia Thailand

Documents to export (number) 9 9 4

Time to ex ort da s 44 22 14

Cost to export (US$ per container) 1,880 732 625

Reference - World Banks Doing Business Trading Across Border (24 Oct 2011) www.doingbusiness.org

The costs and procedures involved in exporting (and importing) a standardized shipment of goods are studied.Every official procedure involved is recorded - starting from the final contractual agreement between the two parties,

and ending with the delivery of the goods.



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Time & Documents needed for export a standardized cargo*

4 documents

9 documents

needed

* More documents will be neededfor agriculture or dangerous goods.

Reference - World Banks Doing Business Trading Across Border

needed


(24 Oct 2011) www.doingbusiness.org


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Measurement on I mpact s of Trade Facilit ation I mprovementt hrough reform , and applying I T for Paperless Custom s and Thailand Nat ion Single Window

Transaction Cost reduction from 848 to 625 (~220 USD) per container


By World Bankwww.doingbusiness.org Feb 2009

x 3.5 m on per year = on transact on cost re uct on per year