IInformation nformation TTechnology: echnology: Concepts Applied to Concepts Applied to SMEs’, Trade Facilitation SMEs’, Trade Facilitation and Exportsand Exports

IInformation nformation TTechnology: echnology: Concepts Applied to Concepts Applied to SMEs’, Trade Facilitation SMEs’, Trade Facilitation and Exportsand Exports

International Seminar on Information Technology for Development of Small- and Medium-sized

Exporters in East Asia and Latin America ECLAC - Santiago, Chile, 23-24 November 2004

International Seminar on Information Technology for Development of Small- and Medium-sized

Exporters in East Asia and Latin America ECLAC - Santiago, Chile, 23-24 November 2004

Organized by ECLAC with the collaboration of IDE/JETRO, sponsored by UNDP

Sidney RezendeDivision of International Trade and Integration

ECLAC

E-commerceE-commerce,, or electronic commerce, is or electronic commerce, is conducting business communications and transactions conducting business communications and transactions via computers and over networks. It is the via computers and over networks. It is the buying and buying and selling of goods and services through digital selling of goods and services through digital communicationcommunication. It also includes transactions on the . It also includes transactions on the WWW and Internet, and electronic funds transfer, WWW and Internet, and electronic funds transfer, smart cards, and digital cash, among others. smart cards, and digital cash, among others.

E-businessE-business, or electronic business, derived from 'e-, or electronic business, derived from 'e-commerce'. commerce'. It is conducting business on the InternetIt is conducting business on the Internet, , but not just buying and selling but also but not just buying and selling but also servicing servicing customers and collaborating with business partnerscustomers and collaborating with business partners. . The term conveys that the business conducts its The term conveys that the business conducts its business entirely business entirely onlineonline..

E-commerceE-commerce,, or electronic commerce, is or electronic commerce, is conducting business communications and transactions conducting business communications and transactions via computers and over networks. It is the via computers and over networks. It is the buying and buying and selling of goods and services through digital selling of goods and services through digital communicationcommunication. It also includes transactions on the . It also includes transactions on the WWW and Internet, and electronic funds transfer, WWW and Internet, and electronic funds transfer, smart cards, and digital cash, among others. smart cards, and digital cash, among others.

E-businessE-business, or electronic business, derived from 'e-, or electronic business, derived from 'e-commerce'. commerce'. It is conducting business on the InternetIt is conducting business on the Internet, , but not just buying and selling but also but not just buying and selling but also servicing servicing customers and collaborating with business partnerscustomers and collaborating with business partners. . The term conveys that the business conducts its The term conveys that the business conducts its business entirely business entirely onlineonline..

E-COMMERCE and E-E-COMMERCE and E-BUSINESSBUSINESSE-COMMERCE and E-E-COMMERCE and E-BUSINESSBUSINESSThe DifferenceThe DifferenceThe DifferenceThe Difference

EDI EDI isis “ transfer of structured data, by “ transfer of structured data, by agreed message standards, from one agreed message standards, from one computer system to another by computer system to another by electronic meanselectronic means ” ”

UN/EDIFACTUN/EDIFACT is the international EDI is the international EDI Standard Standard developed under the United Nations. developed under the United Nations. The acronym stands for " The acronym stands for "UUnited nited NNations / ations / EElectronic lectronic DData ata IInterchange nterchange FFor or AAdministration, dministration, CCommerce, and ommerce, and TTransportransport". The work of maintenance and ". The work of maintenance and further development of this standard is done further development of this standard is done

throughthrough UNUN//CEFACT.CEFACT.

EDI EDI isis “ transfer of structured data, by “ transfer of structured data, by agreed message standards, from one agreed message standards, from one computer system to another by computer system to another by electronic meanselectronic means ” ”

UN/EDIFACTUN/EDIFACT is the international EDI is the international EDI Standard Standard developed under the United Nations. developed under the United Nations. The acronym stands for " The acronym stands for "UUnited nited NNations / ations / EElectronic lectronic DData ata IInterchange nterchange FFor or AAdministration, dministration, CCommerce, and ommerce, and TTransportransport". The work of maintenance and ". The work of maintenance and further development of this standard is done further development of this standard is done

throughthrough UNUN//CEFACT.CEFACT.

EELECTRONIC LECTRONIC DDATA ATA IINTERCHANCE - NTERCHANCE - EDIEDIEELECTRONIC LECTRONIC DDATA ATA IINTERCHANCE - NTERCHANCE - EDIEDI

What is it?What is it?What is it?What is it?

All have different data elements!All have different data elements!All have different data elements!All have different data elements!

HR-XML

EHD

xCat

UBL

Rosettanet

OTAIATA

cXML

E-construct

CATXML

SMDG

PIDXGCI

UNeDoc

XAML

Opentrans

GML

xCBL

HL7

Acord

CIDX

xBRL BSML

agXML

VICS

SWIFT

Togaf

Bolero

DATA STANDARDS: Too DATA STANDARDS: Too Many!Many!DATA STANDARDS: Too DATA STANDARDS: Too Many!Many!

UN UN / / CEFACT -CEFACT -UN UN / / CEFACT -CEFACT - United Nations United Nations Centre for Trade Centre for Trade Facilitation and Facilitation and

Electronic BusinessElectronic Business

United Nations United Nations Centre for Trade Centre for Trade Facilitation and Facilitation and

Electronic BusinessElectronic Businesswww.unece.org/cefact/www.unece.org/cefact/

• MMissionission:: to improve the ability of business, to improve the ability of business, trade and administrative organizations, trade and administrative organizations, worldwideworldwide, to exchange products and relevant , to exchange products and relevant services effectively - and so contribute to the services effectively - and so contribute to the growth of global commerce.growth of global commerce.

• It It facilitates the development of facilitates the development of e-business e-business standardsstandards that can cross all international that can cross all international boundaries and help lower transaction costs, boundaries and help lower transaction costs, simplify data flow and reducesimplify data flow and reduce bureaucracy bureaucracy

• Work outputs of UN/CEFACT activities Work outputs of UN/CEFACT activities

includeinclude the the UNUN//EDIFACTEDIFACT and and e-business e-business

XMLXML – – ebXML ebXML ((ISO 15000ISO 15000))

• MMissionission:: to improve the ability of business, to improve the ability of business, trade and administrative organizations, trade and administrative organizations, worldwideworldwide, to exchange products and relevant , to exchange products and relevant services effectively - and so contribute to the services effectively - and so contribute to the growth of global commerce.growth of global commerce.

• It It facilitates the development of facilitates the development of e-business e-business standardsstandards that can cross all international that can cross all international boundaries and help lower transaction costs, boundaries and help lower transaction costs, simplify data flow and reducesimplify data flow and reduce bureaucracy bureaucracy

• Work outputs of UN/CEFACT activities Work outputs of UN/CEFACT activities

includeinclude the the UNUN//EDIFACTEDIFACT and and e-business e-business

XMLXML – – ebXML ebXML ((ISO 15000ISO 15000))

STANDARDIZATION: Benefits to STANDARDIZATION: Benefits to the entire community the entire community STANDARDIZATION: Benefits to STANDARDIZATION: Benefits to the entire community the entire community

• OASIS and (Organization for the

Advancement of Structured Information

Standards) UN/CEFACT joint initiativejoint initiative

Mission: "... enable a global electronic marketplace where enterprises of any size and in any geographical location can meet and conduct business with each other through the

exchange of XML based messages".

• OASIS and (Organization for the

Advancement of Structured Information

Standards) UN/CEFACT joint initiativejoint initiative

Mission: "... enable a global electronic marketplace where enterprises of any size and in any geographical location can meet and conduct business with each other through the

exchange of XML based messages".

XML and ebXML: XML and ebXML: Definition Definition XML and ebXML: XML and ebXML: Definition Definition

• XMLXML ((eeXXtensible tensible MMarkuparkup LLanguageanguage ) ) iis a markup language for documents s a markup language for documents containing structured information (for containing structured information (for example: vector graphics, e-commerce example: vector graphics, e-commerce transactions)transactions)

• ebXMLebXML ((eelectronic lectronic bbusiness using usiness using eeXXtensible tensible MMarkup arkup LLanguage) is a anguage) is a modular suite of specifications that modular suite of specifications that enables enterprises of any size and in enables enterprises of any size and in any geographical location to conduct any geographical location to conduct business over the Internet. business over the Internet.

• XMLXML ((eeXXtensible tensible MMarkuparkup LLanguageanguage ) ) iis a markup language for documents s a markup language for documents containing structured information (for containing structured information (for example: vector graphics, e-commerce example: vector graphics, e-commerce transactions)transactions)

• ebXMLebXML ((eelectronic lectronic bbusiness using usiness using eeXXtensible tensible MMarkup arkup LLanguage) is a anguage) is a modular suite of specifications that modular suite of specifications that enables enterprises of any size and in enables enterprises of any size and in any geographical location to conduct any geographical location to conduct business over the Internet. business over the Internet.

ADVANTAGES OFADVANTAGES OF e-BUSINESS FOR SMEse-BUSINESS FOR SMEs

ADVANTAGES OFADVANTAGES OF e-BUSINESS FOR SMEse-BUSINESS FOR SMEs

Currently more than 800 million Currently more than 800 million Internet users are online Internet users are online globallyglobally

Currently more than 800 million Currently more than 800 million Internet users are online Internet users are online globallyglobally www.internetworldstats.co

m www.internetworldstats.com

OOnline retail nline retail is estimated tois estimated to increase from $121 billion in increase from $121 billion in 2004 to nearly $316 billion by 2004 to nearly $316 billion by 20102010..

OOnline retail nline retail is estimated tois estimated to increase from $121 billion in increase from $121 billion in 2004 to nearly $316 billion by 2004 to nearly $316 billion by 20102010..

www.emarketer.comwww.emarketer.comwww.forrester.comwww.forrester.comwww.emarketer.comwww.emarketer.comwww.forrester.comwww.forrester.com

To be more efficient in their internal To be more efficient in their internal processes. processes.

To select the best suppliers from To select the best suppliers from any part of the world. any part of the world.

To develop a closer relationship with To develop a closer relationship with their local and foreign suppliers. their local and foreign suppliers.

To offer better services according to To offer better services according to the requirements and expectations the requirements and expectations of their clients. of their clients.

To offer goods and services in the To offer goods and services in the global market.global market.

ADVANTAGES OF e-BUSINESS FOR SMEsADVANTAGES OF e-BUSINESS FOR SMEs

e-TRANSACTIONS: The Diferent e-TRANSACTIONS: The Diferent TypesTypese-TRANSACTIONS: The Diferent e-TRANSACTIONS: The Diferent TypesTypes

   BusinessBusinessBusinessBusiness ConsumerConsumerConsumerConsumer GovernmentGovernmentGovernmentGovernment

BusinessBusinessBusinessBusinessB2BB2BB2BB2B B2CB2CB2CB2C B2GB2GB2GB2G

ConsumerConsumerConsumerConsumerC2BC2BC2BC2B C2CC2CC2CC2C C2GC2GC2GC2G

GovernmentGovernmentGovernmentGovernmentG2BG2BG2BG2B G2CG2CG2CG2C G2GG2GG2GG2G

   

  

Sale contract,Sale contract,

Transport Transport contract,contract,

Payment orderPayment order

Provision of Provision of Web-based Web-based online online servicesservices

Declarations to Declarations to Customs , e-Customs , e-procurementprocurement

On-line On-line

Ordering onOrdering on

Electronic Electronic cataloguecatalogue

e-mail,e-mail,

Classified Classified

advertisementadvertisementss

Electronic Electronic submission of submission of Revenue Tax Revenue Tax DeclarationDeclaration

Response from Response from

Customs, e-Customs, e-procurementprocurement

Provision of Provision of Web-based Web-based online online servicesservices

Consolidation of Consolidation of statistical,statistical,

Vat data,Vat data,

Contract and Contract and orderorder

B2B and B2C B2B and B2C INDICATORSINDICATORSB2B and B2C B2B and B2C INDICATORSINDICATORS

SourceSource: : www.e-consultingcorp.com.br/insider_info/indicadores.htmwww.e-consultingcorp.com.br/insider_info/indicadores.htm

WORLD 1999 2000 2001  2002 2003 2004 2005E-Commerce (US$ bln) 130 282 516 916 1420 2800 4300B2B (US$ bln) 110 210 365 666 995 1641,42 2380B2C (US$ bln) 20 72 152 251 425 565 730LATIN AMERICAE-Commerce (US$bln) 0,6 1,5 3,3 6,4 11,0 10,2 15,7B2B (US$bln) 0,4 0,9 2,9 3,5 4,5 6,0 9,3B2C (US$bln) 0,2 0,5 1,3 1,5 2,6 4,2 6,4

WORLD 1999 2000 2001  2002 2003 2004 2005E-Commerce (US$ bln) 130 282 516 916 1420 2800 4300B2B (US$ bln) 110 210 365 666 995 1641,42 2380B2C (US$ bln) 20 72 152 251 425 565 730LATIN AMERICAE-Commerce (US$bln) 0,6 1,5 3,3 6,4 11,0 10,2 15,7B2B (US$bln) 0,4 0,9 2,9 3,5 4,5 6,0 9,3B2C (US$bln) 0,2 0,5 1,3 1,5 2,6 4,2 6,4

B2CB2CB2CB2Ce-TRANSACTIONS: Tortas_Peru - e-TRANSACTIONS: Tortas_Peru - PEPEe-TRANSACTIONS: Tortas_Peru - e-TRANSACTIONS: Tortas_Peru - PEPE

e-TRANSACTIONS: Carvajal - COe-TRANSACTIONS: Carvajal - COe-TRANSACTIONS: Carvajal - COe-TRANSACTIONS: Carvajal - CO

  

250.000 250.000 TRANSACTRANSACTIONS TIONS

PER MONTH PER MONTH AMOUNTING TO AMOUNTING TO OVER US$ OVER US$ 100 100

MILLMILLIION.ON.

250.000 250.000 TRANSACTRANSACTIONS TIONS

PER MONTH PER MONTH AMOUNTING TO AMOUNTING TO OVER US$ OVER US$ 100 100

MILLMILLIION.ON.

It It integrates suppliers and merchandisers in retail/mass integrates suppliers and merchandisers in retail/mass marketing communitmarketing communities.ies.

Over 2Over 2..0000 compa00 companies in nies in Colombia, Ecuador, Peru and Colombia, Ecuador, Peru and VenezuelaVenezuela, mostly SMEs but also big corporations such as , mostly SMEs but also big corporations such as Nestlé, Procter & Gamble Nestlé, Procter & Gamble andand Unilever Unilever..

It It integrates suppliers and merchandisers in retail/mass integrates suppliers and merchandisers in retail/mass marketing communitmarketing communities.ies.

Over 2Over 2..0000 compa00 companies in nies in Colombia, Ecuador, Peru and Colombia, Ecuador, Peru and VenezuelaVenezuela, mostly SMEs but also big corporations such as , mostly SMEs but also big corporations such as Nestlé, Procter & Gamble Nestlé, Procter & Gamble andand Unilever Unilever..

B2BB2BB2BB2B

e-TRANSACTIONS: COMPRASNET - e-TRANSACTIONS: COMPRASNET - BRBRe-TRANSACTIONS: COMPRASNET - e-TRANSACTIONS: COMPRASNET - BRBR

   

  

G2BG2BG2BG2B

Build a strong telecommunications Build a strong telecommunications and Internet infrastructure and Internet infrastructure

Create ITC business incubators and Create ITC business incubators and ITC Industrial ParksITC Industrial Parks

Provide incentives to telecom Provide incentives to telecom companies to build networkscompanies to build networks

Expand existing infrastructure to Expand existing infrastructure to promote greater broadband promote greater broadband bandwidth. bandwidth.

Invest in human capital and job Invest in human capital and job creationcreation

Mexico Survey Report Findings (I)Mexico Survey Report Findings (I)

“Comparative Study on East Asian and Latin-American IT Industries”, ECLAC, 15 October 2004. “Comparative Study on East Asian and Latin-American IT Industries”, ECLAC, 15 October 2004.

Establish basic rules for online Establish basic rules for online commercecommerce

Maintain an open government Maintain an open government procurement bidding processprocurement bidding process

Build consumer confidence in the Build consumer confidence in the electronic worldelectronic world

Eliminate trade barriersEliminate trade barriersProvide access to financial capital Provide access to financial capital Ensure network and information Ensure network and information

securitysecurity

Establish basic rules for online Establish basic rules for online commercecommerce

Maintain an open government Maintain an open government procurement bidding processprocurement bidding process

Build consumer confidence in the Build consumer confidence in the electronic worldelectronic world

Eliminate trade barriersEliminate trade barriersProvide access to financial capital Provide access to financial capital Ensure network and information Ensure network and information

securitysecurity

Mexico Survey Report Findings (II)Mexico Survey Report Findings (II)

“Comparative Study on East Asian and Latin-American IT Industries”, ECLAC, 15 October 2004. “Comparative Study on East Asian and Latin-American IT Industries”, ECLAC, 15 October 2004.

E-TRANSACTIONS: SECURITY E-TRANSACTIONS: SECURITY

TASKS OF ELECTRONIC SIGNATURE :TASKS OF ELECTRONIC SIGNATURE :

VVerify the origin of the dataerify the origin of the data ( (Authentication Authentication of data sourceof data source););

Check that data are complete and Check that data are complete and unchangedunchanged ( (Integrity of dataIntegrity of data))

Guarantee the confidentiality of data Guarantee the confidentiality of data messagemessage ( (Message content securityMessage content security))

Messages can be intercepted and Messages can be intercepted and manipulated;manipulated;

The validity of documents can be denied;The validity of documents can be denied;

Personal data can be illicitly collectedPersonal data can be illicitly collected;;

RISKS OF E-COMMERCERISKS OF E-COMMERCE : :RISKS OF E-COMMERCERISKS OF E-COMMERCE : :

E-TRANSACTIONS: SECURITY E-TRANSACTIONS: SECURITY

Different Systems of E-SignDifferent Systems of E-Sign

Various Techniques and Systems are currently Various Techniques and Systems are currently

available on the market by which some or all the available on the market by which some or all the

functions mentioned above can be performed in functions mentioned above can be performed in

an electronic an electronic environment.environment. These are referred to These are referred to

broadly as “broadly as “electronic signatureselectronic signatures””::

Encryption; Encryption; Digital Signature;Digital Signature;

Personal Identification Numbers (PIN);Personal Identification Numbers (PIN);

Different Systems of E-SignDifferent Systems of E-Sign

Various Techniques and Systems are currently Various Techniques and Systems are currently

available on the market by which some or all the available on the market by which some or all the

functions mentioned above can be performed in functions mentioned above can be performed in

an electronic an electronic environment.environment. These are referred to These are referred to

broadly as “broadly as “electronic signatureselectronic signatures””::

Encryption; Encryption; Digital Signature;Digital Signature;

Personal Identification Numbers (PIN);Personal Identification Numbers (PIN);

EncryptionEncryption is a form of Cryptography which transforms (by mean of an is a form of Cryptography which transforms (by mean of an Algorithm) a plaintext into an unreadable cyphered text Algorithm) a plaintext into an unreadable cyphered text (encryption) and vice versa (decryption).(encryption) and vice versa (decryption).

At present, encryption provides the most important tool to keep At present, encryption provides the most important tool to keep electronic communication and documents electronic communication and documents confidentialconfidential. . Encryption is increasingly being integrated into financial and Encryption is increasingly being integrated into financial and banking messages.banking messages.

Digital SignatureTo sign a document with a digital signature the signatory:(I) Delimits precisely the borders of what is to be signed.(II) Signatory’s software computes a result unique to the information to be signed; (III) Software transforms the result into a digital signature using the signatory’s private key.

EncryptionEncryption is a form of Cryptography which transforms (by mean of an is a form of Cryptography which transforms (by mean of an Algorithm) a plaintext into an unreadable cyphered text Algorithm) a plaintext into an unreadable cyphered text (encryption) and vice versa (decryption).(encryption) and vice versa (decryption).

At present, encryption provides the most important tool to keep At present, encryption provides the most important tool to keep electronic communication and documents electronic communication and documents confidentialconfidential. . Encryption is increasingly being integrated into financial and Encryption is increasingly being integrated into financial and banking messages.banking messages.

Digital SignatureTo sign a document with a digital signature the signatory:(I) Delimits precisely the borders of what is to be signed.(II) Signatory’s software computes a result unique to the information to be signed; (III) Software transforms the result into a digital signature using the signatory’s private key.

Public-Key Infrastructures (PKI) Public-Key Infrastructures (PKI)

To verify a digital signature, the verifier must have access to theTo verify a digital signature, the verifier must have access to theSignatory’s public-key and have assurance that it corresponds toSignatory’s public-key and have assurance that it corresponds totthe signatory’s private key. However, a public- and private-key pairhe signatory’s private key. However, a public- and private-key pairhas no association with any person: it is simply a pair of has no association with any person: it is simply a pair of numbers. numbers.

An additional mechanism is necessary to associate reliably a An additional mechanism is necessary to associate reliably a particular person or entity to the key pair. This is usually done by particular person or entity to the key pair. This is usually done by thirdthirdParties (Parties ( “ “Certification AuthorityCertification Authority” ” or “or “Certification Service Certification Service ProviderProvider”)”) which associate an identified signatory or the signatory’s which associate an identified signatory or the signatory’s namenamewith a specific public-key. with a specific public-key.

In a number of countries, such certification authorities are organized In a number of countries, such certification authorities are organized hierarchically into what is often referred to as a “hierarchically into what is often referred to as a “Public-Key Public-Key InfrastructureInfrastructure” (” (PKIPKI).).

Public-Key Infrastructures (PKI) Public-Key Infrastructures (PKI)

To verify a digital signature, the verifier must have access to theTo verify a digital signature, the verifier must have access to theSignatory’s public-key and have assurance that it corresponds toSignatory’s public-key and have assurance that it corresponds totthe signatory’s private key. However, a public- and private-key pairhe signatory’s private key. However, a public- and private-key pairhas no association with any person: it is simply a pair of has no association with any person: it is simply a pair of numbers. numbers.

An additional mechanism is necessary to associate reliably a An additional mechanism is necessary to associate reliably a particular person or entity to the key pair. This is usually done by particular person or entity to the key pair. This is usually done by thirdthirdParties (Parties ( “ “Certification AuthorityCertification Authority” ” or “or “Certification Service Certification Service ProviderProvider”)”) which associate an identified signatory or the signatory’s which associate an identified signatory or the signatory’s namenamewith a specific public-key. with a specific public-key.

In a number of countries, such certification authorities are organized In a number of countries, such certification authorities are organized hierarchically into what is often referred to as a “hierarchically into what is often referred to as a “Public-Key Public-Key InfrastructureInfrastructure” (” (PKIPKI).).

TraceabilityTraceability is the ability to is the ability to trace the history, application or trace the history, application or location of an entity by means of location of an entity by means of recorded identification.recorded identification.

Tracking is the capability to follow the path of a specified unit of a product and/or batch through the supply chain as it moves between organisations towards the final point-of-sale or point-of-service

TracingTracing is the capability to identify the origin of a particular unit and/or batch of product located within the supply chain by reference to records held upstream. 

TraceabilityTraceability is the ability to is the ability to trace the history, application or trace the history, application or location of an entity by means of location of an entity by means of recorded identification.recorded identification.

Tracking is the capability to follow the path of a specified unit of a product and/or batch through the supply chain as it moves between organisations towards the final point-of-sale or point-of-service

TracingTracing is the capability to identify the origin of a particular unit and/or batch of product located within the supply chain by reference to records held upstream. 

TRACEABILITY: What is it?TRACEABILITY: What is it?TRACEABILITY: What is it?TRACEABILITY: What is it?

TRACEABILITY: Flow of TRACEABILITY: Flow of Information Information TRACEABILITY: Flow of TRACEABILITY: Flow of Information Information

E-FINANCE E-FINANCE E-FINANCE E-FINANCE

e-Financee-Finance is about web- is about web-enabling everything that a enabling everything that a financial institutions does – giving financial institutions does – giving loans, offering investments loans, offering investments (stocks, funds, bonds), executing (stocks, funds, bonds), executing transactions etc. – all available transactions etc. – all available using web technologyusing web technologyIn Latin America, on-line financial market activity is In Latin America, on-line financial market activity is limited, with some exceptions in Brazil and Mexico, limited, with some exceptions in Brazil and Mexico, where on-line brokerage services seem well-where on-line brokerage services seem well-developed. developed.

e-Financee-Finance is about web- is about web-enabling everything that a enabling everything that a financial institutions does – giving financial institutions does – giving loans, offering investments loans, offering investments (stocks, funds, bonds), executing (stocks, funds, bonds), executing transactions etc. – all available transactions etc. – all available using web technologyusing web technologyIn Latin America, on-line financial market activity is In Latin America, on-line financial market activity is limited, with some exceptions in Brazil and Mexico, limited, with some exceptions in Brazil and Mexico, where on-line brokerage services seem well-where on-line brokerage services seem well-developed. developed.

Loans, Investments Loans, Investments and Paymentsand Payments

Loans, Investments Loans, Investments and Paymentsand Payments

E-FINANCE: Offline Payments E-FINANCE: Offline Payments E-FINANCE: Offline Payments E-FINANCE: Offline Payments Payment

methodKey characteristics

Bank-to-bank transfers (by cable wire or teleg.transfer)

• Efficient, often used in B2B – Efficient, often used in B2B – •Sellers (buyers) bear the risks if post-payments, Sellers (buyers) bear the risks if post-payments, pre-payments are madepre-payments are made• Solvency Solvency / reputation inquiries about parties, / reputation inquiries about parties, in order to reduce payment risksin order to reduce payment risks

Cash on Delivery (COD)

• Risks shared between partiesRisks shared between parties• Possible only with few neighbouring countriesPossible only with few neighbouring countries• Relatively expansive and inefficientRelatively expansive and inefficient

Letters of Credit (L/C)

• The preferred way for large B2B transactionsThe preferred way for large B2B transactions•Expensive and administratively heavy but offers Expensive and administratively heavy but offers good security for buyers and sellersgood security for buyers and sellers

Transfers by Western Union

• Dense worldwide networkDense worldwide network•Very fast but very expensive (from US to Peru Very fast but very expensive (from US to Peru US$150 costs US$20 to be transferred)US$150 costs US$20 to be transferred)

Checks & Money Orders

• Inefficient and rather expensiveInefficient and rather expensive•Good B2C acceptance: risk: checks without Good B2C acceptance: risk: checks without funds, but limited for money orders funds, but limited for money orders

E-FINANCE: Online Payments E-FINANCE: Online Payments E-FINANCE: Online Payments E-FINANCE: Online Payments Payment

methodKey characteristics

Credit Card using Secure Sockets Layer (SSL)

• When SSL is used, surfers can notice a closed When SSL is used, surfers can notice a closed lock icon at the bottom of their browserlock icon at the bottom of their browser• Used for small amountsUsed for small amounts•Comission 2-5% to be borne by sellersComission 2-5% to be borne by sellers• Difficult for SMEs from developing countries Difficult for SMEs from developing countries (contract -Merchant account).(contract -Merchant account).

Credit Card without SSL

• No much usedNo much used• WorldwideWorldwide•Wrongly perceived by buyers as unsafeWrongly perceived by buyers as unsafe• Risks of fraud are fully borne by sellersRisks of fraud are fully borne by sellers

SET – Secure Electronic Transaction

• System developed and supported by Visa, MC, System developed and supported by Visa, MC, Amex, IBM, Microsoft and Verisign. Amex, IBM, Microsoft and Verisign. • It is SAFE - WorldwideIt is SAFE - Worldwide• High Commission 2-5% High Commission 2-5%

PayPal • Online payment solution with 35 million Online payment solution with 35 million account. Members in 38 countries. Originally account. Members in 38 countries. Originally developed for auction sites such as eBay.developed for auction sites such as eBay.

CREATING AN EFFICIENT AND SECURE CREATING AN EFFICIENT AND SECURE TRADE INFRASTRUCTURETRADE INFRASTRUCTURE

CREATING AN EFFICIENT AND SECURE CREATING AN EFFICIENT AND SECURE TRADE INFRASTRUCTURETRADE INFRASTRUCTURE

TRADE FACILITATIONTRADE FACILITATION: : Transportation, Port- Transportation, Port- System and Logistics, Trade Finance, SecuritySystem and Logistics, Trade Finance, Security

TRADE PROMOTION: IT and Non-IT SectorsTRADE PROMOTION: IT and Non-IT Sectors

TRADE FACILITATIONTRADE FACILITATION: : Transportation, Port- Transportation, Port- System and Logistics, Trade Finance, SecuritySystem and Logistics, Trade Finance, Security

TRADE PROMOTION: IT and Non-IT SectorsTRADE PROMOTION: IT and Non-IT Sectors

TRADE PROCEDURES and MEASURESTRADE PROCEDURES and MEASURES: : e-Customs, e-Sanitary and Phyto-sanitary e-Customs, e-Sanitary and Phyto-sanitary Certificates, e-Certificate of Origin, and Certificates, e-Certificate of Origin, and Single Window SystemSingle Window System

TRADE PROCEDURES and MEASURESTRADE PROCEDURES and MEASURES: : e-Customs, e-Sanitary and Phyto-sanitary e-Customs, e-Sanitary and Phyto-sanitary Certificates, e-Certificate of Origin, and Certificates, e-Certificate of Origin, and Single Window SystemSingle Window System

BILLBILLOFOF

LADINGLADING

BILLBILLOFOF

LADINGLADING

LETTERLETTER OF OF

CREDITCREDIT

LETTERLETTER OF OF

CREDITCREDIT

CERTIFICATECERTIFICATE OFOF

ORIGINORIGIN

CERTIFICATECERTIFICATE OFOF

ORIGINORIGIN

INSURANCE INSURANCE CERTIFICATECERTIFICATE

INSURANCE INSURANCE CERTIFICATECERTIFICATE

PHITOSANITARYPHITOSANITARYCERTIFICATESCERTIFICATES

PHITOSANITARYPHITOSANITARYCERTIFICATESCERTIFICATES

CUSTOM CUSTOM CLEARANCECLEARANCE

CUSTOM CUSTOM CLEARANCECLEARANCE

DECLARATIONSDECLARATIONSDECLARATIONSDECLARATIONS

DEBIT DEBIT ADVICEADVICE

DEBIT DEBIT ADVICEADVICE

REMITANCEREMITANCEADVICEADVICE

REMITANCEREMITANCEADVICEADVICE

WAYBILLWAYBILLWAYBILLWAYBILL

PAYMENT PAYMENT ORDERORDER

PAYMENT PAYMENT ORDERORDER

MANIFESTMANIFEST MANIFESTMANIFEST

PURCHASEPURCHASEORDERORDER

PURCHASEPURCHASEORDERORDER INVOICEINVOICEINVOICEINVOICE FORWARDINGFORWARDING

INSTRUCTIONINSTRUCTION

FORWARDINGFORWARDINGINSTRUCTIONINSTRUCTION

STOWAGESTOWAGEPLAN-BAYPLAN-BAY

PLANPLAN

STOWAGESTOWAGEPLAN-BAYPLAN-BAY

PLANPLAN

ARRIVALARRIVALNOTICENOTICE

ARRIVALARRIVALNOTICENOTICE

BTW 20 and 40 BTW 20 and 40 PAPER DOCUMENTSPAPER DOCUMENTS REQUIRED FOR INTERNATIONAL REQUIRED FOR INTERNATIONAL TRADE TRADE Costs: up to Costs: up to 10 per cent10 per cent of the value of the goods. of the value of the goods. Every year, Every year, US$550 BillionUS$550 Billion Worldwide. Worldwide.

CUSTOMS INFORMATION CUSTOMS INFORMATION SYSTEMS SYSTEMS CUSTOMS INFORMATION CUSTOMS INFORMATION SYSTEMS SYSTEMS

Latin America and the Caribbean Latin America and the Caribbean Latin America and the Caribbean Latin America and the Caribbean

SINGLE WINDOWSINGLE WINDOW: The Most Common Models : The Most Common Models SINGLE WINDOWSINGLE WINDOW: The Most Common Models : The Most Common Models

Simplifying International Simplifying International Trade Trade Simplifying International Simplifying International Trade Trade

The new approach - a simple, The new approach - a simple, one-stop solution offering one-stop solution offering official control with trade official control with trade facilitation. facilitation.

The new approach - a simple, The new approach - a simple, one-stop solution offering one-stop solution offering official control with trade official control with trade facilitation. facilitation.

UN CEFACT Recommendation 33

UN CEFACT Recommendation 33

(...)

Trade FacilitationTrade Facilitation:: We will continue our work to We will continue our work to reduce business transaction costsreduce business transaction costs by by cutting red tape, cutting red tape, embracing automation, harmonizing standards and embracing automation, harmonizing standards and eliminating unnecessary barriers to tradeeliminating unnecessary barriers to trade. We will also . We will also work together to advance the trade facilitation work together to advance the trade facilitation negotiations in the WTO, promote secure trade, and negotiations in the WTO, promote secure trade, and build on the APEC Best Practices for RTAs/FTAs in the build on the APEC Best Practices for RTAs/FTAs in the area of trade facilitation;area of trade facilitation;(...)(...)

(...)

Trade FacilitationTrade Facilitation:: We will continue our work to We will continue our work to reduce business transaction costsreduce business transaction costs by by cutting red tape, cutting red tape, embracing automation, harmonizing standards and embracing automation, harmonizing standards and eliminating unnecessary barriers to tradeeliminating unnecessary barriers to trade. We will also . We will also work together to advance the trade facilitation work together to advance the trade facilitation negotiations in the WTO, promote secure trade, and negotiations in the WTO, promote secure trade, and build on the APEC Best Practices for RTAs/FTAs in the build on the APEC Best Practices for RTAs/FTAs in the area of trade facilitation;area of trade facilitation;(...)(...)

12TH APEC ECONOMIC LEADERS' MEETINGSANTIAGO DECLARATION

"ONE COMMUNITY, OUR FUTURE"Santiago de Chile

20‑21 November 2004

12TH APEC ECONOMIC LEADERS' MEETINGSANTIAGO DECLARATION

"ONE COMMUNITY, OUR FUTURE"Santiago de Chile

20‑21 November 2004

12TH APEC ECONOMIC LEADERS' MEETING12TH APEC ECONOMIC LEADERS' MEETING

KNOWLEDGE AND TOOLS KNOWLEDGE AND TOOLS FOR SMEsFOR SMEs

KNOWLEDGE AND TOOLS KNOWLEDGE AND TOOLS FOR SMEsFOR SMEs

• A trade facilitation centre,A trade facilitation centre, where participants in where participants in foreign trade transactions are grouped together foreign trade transactions are grouped together under a single physical or virtual roof to provide all under a single physical or virtual roof to provide all the necessary services for trade transactions. the necessary services for trade transactions. Participants:Participants: chambers of commerce, customs, chambers of commerce, customs, foreign trade institutes, banks, freight forwarders, foreign trade institutes, banks, freight forwarders, transport agencies and insurance companies. transport agencies and insurance companies.

• A source of trade-related information, providing A source of trade-related information, providing actual and potential traders with actual and potential traders with data about data about business and market opportunities, business and market opportunities, potential clients potential clients and suppliers, as well as trade regulations and and suppliers, as well as trade regulations and requirementsrequirements. .

• A gateway to global networkingA gateway to global networking, in order to , in order to increase the participation of traders, particularly increase the participation of traders, particularly SMEs, in the emerging electronic commerce SMEs, in the emerging electronic commerce economy.economy.

• A trade facilitation centre,A trade facilitation centre, where participants in where participants in foreign trade transactions are grouped together foreign trade transactions are grouped together under a single physical or virtual roof to provide all under a single physical or virtual roof to provide all the necessary services for trade transactions. the necessary services for trade transactions. Participants:Participants: chambers of commerce, customs, chambers of commerce, customs, foreign trade institutes, banks, freight forwarders, foreign trade institutes, banks, freight forwarders, transport agencies and insurance companies. transport agencies and insurance companies.

• A source of trade-related information, providing A source of trade-related information, providing actual and potential traders with actual and potential traders with data about data about business and market opportunities, business and market opportunities, potential clients potential clients and suppliers, as well as trade regulations and and suppliers, as well as trade regulations and requirementsrequirements. .

• A gateway to global networkingA gateway to global networking, in order to , in order to increase the participation of traders, particularly increase the participation of traders, particularly SMEs, in the emerging electronic commerce SMEs, in the emerging electronic commerce economy.economy.

GLOBAL TRADEPOINT GLOBAL TRADEPOINT NETWORKNETWORKGLOBAL TRADEPOINT GLOBAL TRADEPOINT NETWORKNETWORKwww.wtpfed.org/newsite/index1.php www.wtpfed.org/newsite/index1.php

GGTTPP

NNEETT

GGTTPP

NNEETT

Sidney Rezende, CEPAL, Agosto 1997

WORLD TRADE POINT FEDERATION WORLD TRADE POINT FEDERATION WORLD TRADE POINT FEDERATION WORLD TRADE POINT FEDERATION

www.wtpfed.org/newsite/index1.phpwww.wtpfed.org/newsite/index1.php

www.intracen.org/ec/welcome.htmwww.intracen.org/ec/welcome.htm

INTERNATIONAL TRADE CENTER INTERNATIONAL TRADE CENTER (UNCTAD / WTO)(UNCTAD / WTO)

INTERNATIONAL TRADE CENTER INTERNATIONAL TRADE CENTER (UNCTAD / WTO)(UNCTAD / WTO)

STUDIES AND PUBLICATIONS - ECLACSTUDIES AND PUBLICATIONS - ECLACSTUDIES AND PUBLICATIONS - ECLACSTUDIES AND PUBLICATIONS - ECLAC

71 71 PUBLICATIONS PUBLICATIONS on Information on Information

TechnologyTechnology

6 PUBLICATIONS 6 PUBLICATIONS on e-BUSINESS, on e-BUSINESS,

e-COMMERCEe-COMMERCE

WWW.ECLAC.ORGWWW.ECLAC.ORG

Thank you for your Thank you for your Attention!Attention!

Thank you for your Thank you for your Attention!Attention!

Sidney RezendeSidney RezendeSRezende@eclac.clSRezende@eclac.cl

Sidney RezendeSidney RezendeSRezende@eclac.clSRezende@eclac.cl

www.eclac.orgwww.eclac.org/comercio/comerciowww.eclac.orgwww.eclac.org/comercio/comercio