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Kuala Lumpur – 18 June 2013

WORKSHOP ON BUSINESS PROCESS ANALYSIS FOR ASEAN SINGLE WINDOW -

CONSULTATION WITH STAKEHOLDERS

OUTLINE OF PRESENTATION

1. Sphere of Accountability for Economic Operators2. World Bank Study – Cost & Time for Trading Across

Borders3. Single Window – What, How & Why4. ASW CB-BPA Study5. CB-Flow of Documents6. Sample of Identified Documents for CB-Exchange7. Q & A

Freight Forwarders/Consolidators/NVOCC

Customs Brokers

Suppliers

Sellers

Customs

Domestic Truckers

Carriers

Port of Loading

Port of Arrival

Buyer StorageWarehouseBuyer/Importer

DomesticProcurement

TraditionalImportation

Su

pp

ly C

ha

in A

cc

ou

nta

bilit

y

No of Supply Chain Partners to Interface With

The New Global Environment: End-to-End Accountability

SPHERES OF ACCOUNTABILITYFOR THE ECONOMIC OPERATORS

SPHERES OF ACCOUNTABILITYFOR THE ECONOMIC OPERATORS

Why Time matters in International Trade?

1. Lengthy trade & regulatory procedures increase Cost of Doing Business

2. Access to market : time & demand sensitive – decreases National Competitiveness

Time as Trade Barrier has 2 dimensions:

How much time, how many documents and what cost to export and import across borders?

To Import

TIME

COST

DOCUMENTS

TIME

COST

DOCUMENTS

FCL Container

To Export

Customs andBorder Agencies

Inland Transport

Port and TerminalHandling

Import

Export

ASEAN MEMBER STATES

Time for Export Cost to Export Time for Import Cost to Import

(in days) (US$ per container) (in days) (US$ per container)

2006 2009 2013 2006 2009 2013 2006 2009 2013 2006 2009 2013

Brunei na 28 19 na 630 680 na 19 15 na 798 745

Cambodia 43 22 22 736 732 732 55 30 26 816 872 872

Indonesia 25 21 17 546 704 644 30 27 23 675 660 660

Lao PDR 66 50 24 1,420 1,860 2,140 78 50 26 1,690 2,040 2,125

Malaysia 18 18 11 432 450 435 14 14 11 385 450 420

Philippines 17 16 15 800 816 585 18 16 14 800 819 660

Singapore 5 5 5 416 456 456 3 3 4 367 439 439

Thailand 24 14 14 848 625 585 22 13 13 1,042 795 750

Vietnam 24 22 21 669 756 610 23 21 21 881 940 600

Average - ASEAN 27 22 17 762 804 763 30 22 17 850 883 808

Average - OECD 12 11 10 890 1,024 1,032 12 11 11 974 1,086 1,085

TIME & COSTS TO EXPORT & IMPORT

Note: Data for Myanmar not available

ASEAN MEMBER STATES

Time for Export No of Documentsto Export

Time for Import No of Documentsto Import(in days) (in days)

2013 2013 2013 2013

Brunei 19 6 15 6

Cambodia 22 9 26 10

Indonesia 17 4 23 7

Lao PDR 26 10 26 10

Malaysia 11 5 8 6

Philippines 15 7 14 8

Singapore 5 4 4 4

Thailand 14 5 13 5

Vietnam 22 6 21 8

Average - ASEAN 17 6 17 7

NO OF DOCUMENTS TO EXPORT & IMPORT

Note: Data for Myanmar not available

ASEAN Member StatesTime to Import

(days)Document

PreparationCustomsClearance

PortHandling

InlandHandling

Trading Across Borders ( Rank)

2010 2013 2013 2013 2013 2013 2013

Brunei Darussalam 19 15 11 1 2 1 40

Cambodia 29 26 15 3 5 3 118

Indonesia 27 27 13 4 4 2 37

Lao PDR 50 46 17 7 2 4 160

Malaysia 14 8 3 1 2 2 11

Philippines 16 14 8 2 3 1 53

Singapore 4 4 1 1 1 1 1

Thailand 13 13 8 2 2 1 20

Vietnam 21 21 12 4 4 1 74

Average 21.44 17.08 9.77 2.77 2.77 1.77

Note: Data for Myanmar not available

WB Doing Business – Time to Import

WB Doing Business – Time to Export

ASEAN Member StatesTime to Export

(Days)Document

PreparationCustomsClearance

PortHandling

InlandHandling

Trading Across Borders ( Rank)

2010 2013 2013 2013 2013 2013 2013

Brunei Darussalam 27 19 11 2 3 3 40

Cambodia 22 22 14 3 3 2 118

Indonesia 21 17 11 1 2 3 37

Lao PDR 50 26 15 2 4 5 160

Malaysia 18 11 5 1 2 3 11

Philippines 16 15 8 2 3 2 53

Singapore 5 5 1 1 1 2 1

Thailand 14 14 8 1 3 2 20

Vietnam 22 21 12 4 3 2 74

Average 21.67 16.64 9.44 1.88 2.66 2.66

Note: Data for Myanmar not available

How would you visualize a SINGLE

WINDOW ?

What is a Single Window ?(as per UN Recommendation no 33)

“…a facility that allows parties involved in trade and transport to lodge standardized information and

documents with a single entry point to fulfill all import, export, and transit-related regulatory requirements. If information is electronic, then individual data elements

should only be submitted once.”

What is a Single Window ?( unofficial definition by WCO)

“Single Window Environment” as a cross border intelligent facility that allows parties involved in trade and transportto lodge standardized information, mainly electronic, with

a single entry point to fulfill all import, export and transit related regulatory requirements, which are largely

in line with the UN/CEFACT Recommendation 33

MALAYSIA INDONESIA

External ExternalNational National

Acting AMS

RegionalDomain Level

EconomicOperators

NS

W P

ortal

NS

W

pro

cesses

NSW Network

NS

W

Po

rtal

NS

W

pro

cess

es

NSW Network

Regional Service Domain

ASWNetwork

Architecture Level

BusinessBusiness Transaction Level

Business

Business-to-Business Commercial Transactions

InformationExchangeExample

Info Info

Government-to-GovernmentCompliance Transactions

ASEAN SINGLE WINDOW (ASW) TECHNICAL ARCHITECTURE

Regional Services

ASW RS Portal

ASWGW

EconomicOperators

ASWGW

ASWGW

< --------- Example -------->

GovernmentGovernment

Economic Operators

NSW ASWNSWASW

ASW Network

ASW ASW

Economic Operators

GovtAuthorities

GovtAuthorities

Economic Operators

Economic Operators

Economic Operators

Economic Operators

Overview of ASEAN Single WindowASW

BACKGROUND

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• Bali Concord II - Oct 7, 2003; realization of an ASEAN Economic Community by 2020;

• ASW Agreement - Dec 9, 2005 @ KL; establish & implement ASEAN SINGLE WINDOW

• ASW Protocol - Dec 20, 2006 @ Siem; Art 6 of ASW Agreement

• ASW Project – 5 yrs (2008~2012) USAID program under US-ASEAN ADVANCE program

• ASW Pilot Project – 3 components; study, setup & evaluate (Component 1 completed and Component 2 in progress)

• ASW PLUS – 5 yrs (2013~2017) to be activated….

ASEAN SINGLE WINDOW PROJECT

CROSS-BORDER

BUSINESS PROCESS ANALYSIS

(BPA) STUDY

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Objective of the BPA Activity

To identify, prioritize, and analyze cross-border, cargo-related clearance, business processes and data required for information flow(other than the ACDD and ATIGA Form D), which will be exchanged using the ASW architecture in order to support both the work flow and data flow for pre-arrival clearance, and as well as other business processes in the use of ASW’s secured regional network.

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Goals of the Study

• Identify holistic value ASW architecture may offer for specific cross border business processes (BPs).

• Identify readiness of trading community and agenciesto “integrate” their cross border BPs with the ASW-NSW Framework to exchange information electronically.

• Recommendations for implementation of specific cross border processes with supporting reasons.

• Document identified cross border BPs

• Suggest approach to facilitate “electronic” implementation of identified cross border BPs.

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Support requested from AMS

In order to help this project succeed, input from each AMS is requested and encouraged as follows:

• To complete comprehensively the ASW Business Process Readiness Survey (for Government) and to provide related data and material in supporting their survey responses;

• Participating in telephone and/or On-Site discussions on the responses to the survey and opportunities for cross border business processes identified;

• To facilitate participation from relevant industry participants in follow-up interviews and regional workshops.

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ASW CB-BPA Project Team Organization

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ASEAN SINGLE WINDOW PROJECT

BUSINESS PROCESS ANALYSIS

Why & How ?

OriginDocumentation

Destination Documentation

Customs Clearance& Border Agencies

Land-Side Handling

Invoice & Packing List by Exporter

Permits & Licenses (Phytosanitary & Health)

Invoice & Packing List Received by Importer

Dispatch Advise Received by Consignee

Application for Import Permit& Licenses

Submission of Discharging List to Terminal

Certificate of Origin

Prepares & Submits Import Declaration

Delivery Order, Transport Order, Gate Pass

Advance Data for Preparation of Transport Movement

Manifest Submitted by Carrier(MB/L & HB/L)

Approved & Grants ReleaseReceives Documents/Data from Exporter/Bank

Port Operator Issues Gate Pass and Release Container

Container collected and leavesPort/Terminal

Grants Permit & Release by OGA/PIA

Permits & Licenses (Phytosanitary & Health)

Export Declaration by Customs Broker

Booking Confirmation byCarrier to Shipper

Loading Confirmation by Port Operator to Carrier

Bill of Lading by Carrier to Shipper

Certificate of Origin

Sends Documents/Data to Consignee by Exporter/Bank

Manifest by Carrier(MB/L & HB/L)

Export Permits & Licenses (Phytosanitary & Health)

Certificate of Origin

AS-IS

Post-Arrival Processing & Clearance of Goods

BuyerBuyer’s

BankBorderAgency

CustomsFA/

TruckerPort/

AirportCarrier/ Agent

SellerSeller’sBank

BorderAgency

Inspection Coy

InsurerCarrier/ Agent

Port/ Airport

FA/ Trucker

Customs

Purchase Order

L/C Advice

Letter of Credit

Advanced Shipment Notice (ASN)Advanced Shipment Notice (ASN)

Importing Country Exporting Country

Export Permit

Health,Food,Safety Certificate

Forwarding Instructions

Export Permit

Health, Food, Safety Certificate

Freight Booking Confirmation

Export Pemit

Health, Food, Safety Certificate

Commercial Invoice/Packing List/SC Invoice

E-Dec Insurance Cert

Bill of Lading/AWB

Outward Manifest

Consignment Note for Trucking

Loaded

ACI (Freight Booking)

ACI (Freight Loading)

Inspection Certificate

ACI (Bill of Lading/AWB)

ACI (Manifest)

Com Inv/SC InvACI (Com Inv/SC Inv)

L/C Advice

L/C Settlement (c/w supporting docs) Nego

L/C Negotiation NotificationL/C Negotiation Notification

GateIn

Supporting Docs ( Inv, Permits & Certs, BL/AWB, COO)Supporting Docs ( Inv, Permits & Certs, BL/AWB, COO)

Cert of Origin (ATIGA-D, NPCO)Cert of Origin (ATIGA-D, NPCO)Cert of Origin (ATIGA-D, NPCO)

Manifest/Bayplan

Simplified CB-DF Overview

BuyerBuyer’s

BankBorderAgency

CustomsFA/

TruckerPort/

AirportCarrier/ Agent

SellerSeller’sBank

BorderAgency

Inspection Coy

InsurerCarrier/ Agent

Port/ Airport

FA/ Trucker

Customs

Importing Country Exporting Country

I-Dec

Freight Arrival Notice (FAN) + Charges

FArrNot(FAN)Forwarding Instructions

Import Permit

H/F/S Cert

Trucking Consignment Note

LC SetBL/AWB

DO

Delivery Order

Ship Call Info

Inward Manifest

Duty Payment

Utilization Report (ATIGA-D) Utilization Report (ATIGA-D)

I-Dec

Duty Payment

Simplified CB-DF Overview

Fre Arr Not

Interbank Settlement of LC Proceeds

Exp

ort

erC

arri

erIm

po

rter

Po

rtO

per

ato

rN

SW

/AS

WC

arri

erC

ust

om

s

ok

Book Freight

GenerateBooking

Confirmation

Paper-based Freight Booking

Confirmation Forwarding

Process

FreightBooking

ConfirmationContainer

Gate-In Port

Generate CODECOmessage

<GateIn>messageCODECO

Container Loaded

Generate COARRImessage

<Loaded>messageCOARRI

GenerateBill of Lading

GenerateManifest

Paper-basedBill of Lading

Customs Load-Port

After departure

FreightBooking

Confirmation

FreightBooking

Confirmation

FreightLoading

Confirmation

FreightLoading

ConfirmationBill of Lading

Details

Outward Manifest

Infomation

Bill of Lading Information

Inward Manifest

Submit Import Declaration

Documents from Shipper/Bank

Import Declaration

Typical CB Information/Document Flow to support Pre-Arrival Clearance

GenerateInward

Manifest

GenerateFreight Arrival

Notice

Paper-based Freight Arrival

Notice

Outward Manifest

Customs-ClearedStatus

Forwarding Process

Shipping

ASW/NSW Framework

Customs Brokers

Conveyance

Auto-Exchange

Of Data

Submit Application for Permit & Import Declaration

When Vessel Arrives at Port

Pre-Arrival Processing & Clearance of Goods

Delivery of Goods Immediately After Vessel Arrival

Data Flow

Preliminary Identified Business Process (Documents)

A. CARGO CLEARANCE

o Freight booking confirmation (before loading)

o Freight loading confirmation (after loading)

o Bill of Lading or Air Waybill

o Cargo Manifest (Air / Road Manifest)

o Commercial Invoice and Packing List

o ASEAN Customs Declaration Document (already in ASW Pilot)

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Preliminary Identified Business Process (Documents)

B. EXPORT/IMPORT when Cert of Origins are required

o ATIGA Form D (already part of ASW Pilot)

o ATIGA Form D Utilization Report (part of ASW Pilot)

o Self-Certified Invoice (Certifying Origin)

o Certificate of Origin – Non Preferential

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Preliminary Identified Business Process (Documents)

C. Import when Food, Health and PhytosanitaryCertificates are required

o Phyto-sanitary Certificate

o Health Certificate

o Halal Certificate

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Preliminary Identified Business Process (Documents)

D. Goods Payment

o Notification of Letter of Credit Negotiation

o Purchase Order

o Insurance Certificate

o Inspection Certificate

o Commercial Invoice / Packing List

o Transport Proof of Delivery (e.g. Waybill)

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Preliminary Identified Business Process (Documents)

E. ASEAN Trade Party Identification and Status Exchange

o General Trade Party Identification and Status (e.g. AEO or AEO-like Identity and Status)

F. Trade Entities and Reference Data Exchange and Sharing - To be identified

o e.g. truck, vessel profile/call registration and safety certification status (vehicle, ships, trucks)

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ASEAN SINGLE WINDOW PROJECT

BUSINESS PROCESS ANALYSIS

< SAMPLES OF PROCESS MAPPING >

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QUESTIONS ?Kenneth Tiong

Trade Facilitation Consultant for ASWkcationg@gmail.com

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