Gtfc13 Koh

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Next Generation Paperless Systems

for Trade Facilitation: Trends and Way Forward in Developing Countries

Session 2: Initiatives on Inter-connectivity

of Paperless Systems :

Learning from Practices

Global Trade Facilitation Conference 2013

18-19 November, Bangkok

Jonathan Koh

CrimsonLogic

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Agenda

1. An Update of Regional Trends - Single Window (SW) development

2. Next Gen Paperless Systems Where are the Game Changers?

3. Recommendations for way forward

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Single Window = Paperless Systems for Trade

Facilitation

UN/CEFACT Recommendation no. 33

Since formally approved by the UN/CEFACT in September 2004, the

term Single Window has become ubiquitous and synonymous with

Paperless Systems for Trade Facilitation

4 Copyright 2010 Private & Confidential 4

Impact of SW

OECDs Report on Costs and Challenges of Implementing Trade Facilitation Measures (May 2013)

Single Windows are probably the most sophisticated instrument for ensuring coordination of

controls between border agencies, the single most

expensive trade facilitation measure reviewed in this

study and a very significant contributor to reducing trade

costs as shown by the OECD TFIs

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Regional Trends Survey of 35 Tenders & RFP

related to Paperless Systems

for Trade Facilitation


Kenya, Tanzania, Libya, Togo, Benin, Morocco,

Ivory Coast, Rwanda, Congo Brazzaville,

Mozambique, Madagascar

Africa = 13

Chinese Taipei, Malaysia ,Thailand, Brunei,

New Zealand, Pakistan, Philippines

Asia / Oceania = 10

Mexico, Chile, Per, Trinidad & Tobago

Americas & Caribbean = 7

Survey of 35 SW tenders / RFPs

Qatar, Bahrain, Oman, UAE, Iran

Middle East = 5

7 Copyright 2010 Private & Confidential

Survey of 35 SW Tenders / RFPs

Country Name of Single Window Project Date of Issue of RFP

1 Ivory Coast Abidjan Port Community of Cte d'Ivoire Aug-05 2 Peru Ventanilla nica de Comercio Exterior (VUCE) Jun-06 3 Madagascar Malagasy Community Network Services Mar-07 4 Pakistan Pakistan Automated Commercial Community System May-07 5 Congo Brazzaville Maritime Single Window (GUMAR) Aug-07 6 Qatar Qatar Customs Clearance Single Window Nov-07 7 Kenya Kenya Electronic Single Window System Nov-07 8 Thailand Thailand National Single Window Jul-08 9 Iran Port Community System Apr-09

10 Libya Libyan External Trade Single Window May-09 11 Togo Single Window of Foreign Trade (GUCE) for the Port of Lom May-09 12 Trinidad & Tobago Single Economic Window (SEW) May-09 13 Bahrain Integrated Trade Facilitation System Aug-09 14 Philippines National Single Window 1 Aug-09 15 Mozambique Single Electronic Window System for the Customs Clearance of Traded Goods Sep-09 16 Rwanda Rwanda Single Electronic Window Feb-10 17 Benin Single Window for Foreign Trade of Benin for the Port of Cotonou May-10 18 New Zealand Trade Single Window May-10 19 Mexico Ventanilla nica de Comercio Exterior de Mxico (VUCEM) Jul-10 20 Morocco Guichet Unique De Formalites Du Commerce Exterieur (GUCE) Jun-11 21 Chinese Taipei Customs-Port-Trade Single Window Jun-11 22 Oman Integrated Customs Management System and a Single Electronic Window Jul-11 23 Brunei Darussalam National Single Window For Trade Facilitation System (BDNSW) Jul-11 24 Tanzania Electronic Single Window System Aug-11 25 Chile Ventanilla nica de Comercio Exterior (VUCE) Sep-11 26 Panama Electronic Single Window for Exports & Logistics (VUEEL) Feb-12 27 UAE FCA Circulars and Permits System May-12 28 Uruguay Foreign Trade Single Window (VUCE) Aug-12 29 Ethiopia Customs Single Window System Sep-12 30 Myanmar Single Window Oct-12 31 Philippines NSW 2 Jan-13 32 DRC Congo Foreign Trade Single Window (GUCE) Feb-13 33 Malaysia Ubiquitous Customs (U-Customs) Mar-13 34 Philippines Integrated Philippines Customs System (i-PCS) Mar-13 35 Suriname Single Electronic Window (SEW) May-13


East Africa (Mozambique, Madagascar, Kenya, Tanzania, Rwanda)

essentially for a national Single Window creating electronic linkages with the government agencies for permits and licensing processing

Mozambique calls for SW+CMS East African Community exploring for a Regional SW

West & Central Africa (Ivory Coast, Togo, Benin Congo Brazzaville)

mainly for a limited, usually port-centric Single Window, termed as Guichet Unique des Oprations du Commerce Extrieur (GUCE), or Single Window of foreign trade.

focused on the port requirements

North Africa (Libya, Morocco)

Both are port centric SW

Regional Initiatives

Revenue Authorities Digital Data Exchange (RADDEx 2.0) EAC

Trans Kalahari Corridor eCustoms and eTrade Pilot Project

African Alliance for Electronic Commerce (AACE)

Africa

Africa Trends


Middle East Trends

Saudi Arabia was an early implementer of the Single Window, when they launched their SaudiEDI project way in 2004.

3 Gulf Cooperation Council (GCC) countries - Qatar, Bahrain and Oman issued RFPs for Single Window.

includes replacement of their Customs management systems,

a single seamless Single Window + eCustoms Management system

UAE Federal Customs Authority (FCA) issues a Circulars & Permits System

Middle East


Asia & Oceania Trends

Many Asian countries have implemented their Single Windows

Singapore 1989; Japan 2003; S Korea 2003; Indonesia 2007; Malaysia 2009 Others includes: Thailand; Philippines; Brunei; Chinese Taipei Chinas E-Port - a form of sub-national SW Chinese Taipei is first to integrate Customs-Port-Trade Single Window Malaysia issued in 2013 for U-Customs SW + eCustoms

Increasing trend to include a centralized risk management in SW projects, e.g.

New Zealands Trade Single Window Pakistan Automated Commercial Community System (PACCS)

Regional initiatives - ASEAN Single Window - Pan Asia E-Commerce Alliance (PAA) - ESCAP Regional Agreement/Framework Agreement on Facilitation of

Cross-border Paperless Trade for the Asia Pacific Region

Asia & Oceania


Americas Trends

The cost of trade in Americas are reportedly higher than countries of Asia Pacific.

A marked interest in developing Single Window or Ventanilla nica de Comercio Exterior (VUCE) in recent years, e.g.

Colombia and Per - ~ 2006 Mexico and Chile issued RFPs in 2010 & 2011 respectively Suriname and Uruguay issued in 2012 / 2013

VUCEs are essentially Export-oriented Single Window features

Americas


Europe Trends

West Europe is characterized by a network of existing Port Community Systems and Customs Single Windows, e.g.

Germanys DAKOSY Port Community System - 1982 UKs Felixstowe Port Community System 1984 Finlands PortNet System 1993 Frances e-Maritime Port Single Window

Other European countries have implemented some form of SW e.g. Sweden, Macedonia

The challenge for Europe is to turn long-established existing systems into the interfaced and integrated IOS

Regional initiatives EU Directive 2010/65/EU Maritime Single Window European Port Community Systems Association (EPCSA)

Europe

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What do we learn from these?

There is still disparate systems Even if you have SW, there is Customs

System, Port Community Air Cargo

Community, etc.

No Single Window System . but Paperless Trade Eco-System

Mostly Domestic Agenda . Few Regional & Global Integration

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Yet .. The Bandwagon Effect

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Trade Facilitation / Single Window became an increasing

included in Binding Multilateral Agreements ..

WTO

UN

IMO

EU

ASEAN & more

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Next Gen Paperless Systems How Can We Do Better?

Where Are the Game Changers?

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The concept of Inter-

organization Information

Systems (IOS)

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Inter-organization Information Systems

The Network of Networks of Inter-Organization collaboration for

cross-border supply chain:

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International Organisations & Standards

Copyright 2013 Private &

United Nations Centre for Trade Facilitation and Electronic Business (UN/CEFACT)

Electronic Data Interchange For Administration, Commerce and Transport (EDIFACT) [ISO 9735]

United Nations Trade Data Element Directory (UNTDED) [ISO 7372]

Core Component Technical Specification (CCTS) [ISO 15000-5]

Core Component Library (CCL)

XML Naming and Design Rules (NDR)

World Customs Organization (WCO)

The WCO recommend the use of the WCO Data Model

The Government Cross Border Regulatory message (GOVCBR) is based on the EDIFACT standards

XML messages can be derived from the WCO Data Model, using the WCOs proprietary XML standards

International Air Transport Association (IATA)

IATA recommend the use of Cargo-XML

Their current proprietary message format, Cargo-IMP, will not be supported beyond 2014

International Maritime Organization (IMO)

IMO recommend the use of seven standardised forms, known as FAL Forms

FAL Forms are based in EDIFACT messages, namely; CUSCAR, CUSREP, IFDGN, PAXLST

Organization for the Advancement of Structured Information Standards (OASIS)

OASIS Universal Business Language (UBL) has been used to develop many de-facto XML standards

OASIS also developed their ebXML Message Service (ebMS) for the exchange of XML messages

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Way Ahead

Traversing towards a

Globally Networked

Single Window

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Evolution of Next Gen Paperless Systems

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2

3

Interfaced IOS

73 economies

Disparate Systems

- Customs System

- Port Community

Systems

- Cargo Community

Systems

Ministries,

Departments and

Control Agencies

Systems

Interfaced

Single Window &

Customs

Interfaced

Inter-organization

Information

Systems (IOS)

Fully Integrated One-Stop integrated

Business Licensing

system,

Business Licence

registrations, updates,

renewal e-services are

consolidated online.

iBLS

Ultimate Goal

Fully Integrated

Inter-organization

Information

Systems (IOS)

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3

1

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EU Directive 2010/65/EU (Maritime Single

Window)

Source : Jukka Savo , EC DG MOVE, EPCSA 2013 Conference June 2013, Brussels

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Customs Clearance Automation System

Advance Cargo Information System

G2G Interface Service B2G interface service

Duty/Fee e-Payment Service

N2N Cross Border Data Exchange Service

Web-based Application Service

Web-based Inquiry Service

Single Sign-On Management Service

Internet

Internet

Internet

Other Economies

Participating Government

Agencies

Port Agencies

Maritime Net

Banker

Warehouse Operator

Forwarder

Carrier

Trader Customs Broker

Cargo Movement

Security

Authorized Economic(AEO) Certification &

Management

Customs Clearance

VAN

FT-Net

Customs Broker

Forwarder Carrier Warehouse

operator Individual

Single Window

Chinese Taipei

Customs-Port-Trade Single Window

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Next Gen Paperless Systems

1. Inter-organization information

systems (IOS) - Single Window Environment

Concept of Inter-organization information systems (IOS) taking form

The idea of one SW replaced by a inter-connected IOSs - inter-connected, inter-agency collaborative environment facilitate and automate business processes and data exchange for international trade.

2. Evolutionary and Staged Interfacig

& Integtaion of IOS Due to the complex change management,

IOS development typically follows a evolutionary and staged pathway

3. Impact of National Single Window Promotion of SW in international / regional

agreements Improvements in their trade facilitation

indicators after implementing the SW

4. Protocols for Cross-border information exchange

Imperative and pressing need to find improved way to conduct cross-border trade transactions

E.g. IATA CargoXML, WCO GOVCBR & Data Model

5. Increased bilateral , regional and global cooperation

Bilateral and multilateral connectivity e.g. ASEAN SW, RADDeX

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Recommendations

National Integration & collaboration framework

for the Inter-organizational Information Systems (IOSs) e.g. TradeNet, MariNet, PortNet, CCN, JPOnline, etc.

Development of a globally networked Single Window =

Nation-to-Nation collaboration

data & information exchange among Customs agencies in support bilateral trade agreements and policies

Next Gen Single Window x =

Develop Global connectivity

Adopt international connectivity and data harmonization standards to achieve information exchange in global supply chains

x

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Thank you

Documents

Gtfc13 Koh