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Progress and key challenges for
connecting agricultural sector
to global market in the region
Session 3: Re-thinking Trade Facilitation Strategies for More Inclusive
Regional Integration: Focusing on SMEs and the Agricultural Sector
Somnuk Keretho, PhD UNNExT Advisory Committee
Director, Institute for IT Innovation (i-NOVA) Kasetsart University, Bangkok
The 7th Asia-Pacific Trade Facilitation Forum
“Deepening Regional Integration through Trade Facilitation”
20-21 October 2015, Wuhan, China
Page 2 Somnuk Keretho, PhD
Objectives of this presentation
To propose trade facilitation policies,
regulatory environment and specific measures
for effectively assisting agriculture firms
to better participate in the international & regional trade.
The proposal is to call for strengthening
regional cooperation and harmonization in
cross-border agriculture value-chain management
enabling by cross-border paperless trade facilitation.
Page 3 Somnuk Keretho, PhD
Progress of Paperless Trade in Asia-Pacific Sub-regions and improvement opportunities
Nearly 40% of the Asia-Pacific economies are now implementing their paperless
trade, i.e. national Single Window environments, however
– Electronic Single Window Systems implementation remains at a relatively
early stage, e.g. single information submission, and inter-agency process
streamlining are still the implementation challenges.
– Implementation of Electronic application and issuance of Preferential
Certificates of Origin and Trade Licenses (and also e-Health & e-SPS
Certs) are well below the overall regional average.
– Cross-border paperless trade systems implementation remains mostly at
the pilot stage or not yet implemented at all.
Referring to
ESCAP, UNRC
TF Survey 2015
Page 4 Somnuk Keretho, PhD
Key Strategies for Successful Inclusive & Sustainable Agriculture Trade
- value chain management is our challenge. -
1. Promote understanding of demand-side requirements, e.g.
– Food quality, food safety (chemical-free) & traceability are key
requirements of major importing countries.
2. Enhance production capability to produce goods that meet the
requirements of target consumers with differentiation, e.g.
– Promoting chemical-free or organic agricultural produces
3. Establish sustainable business models viable for SMEs and
smallholder farmers in the region, e.g.
– Association of smallholder farmers sharing cost & capability for
internal control, certification, packaging and trade management.
4. Adopt efficient business processes and good management in
agriculture firms, logistics sectors and government, e.g.
– With crop information and quality management, certification,
traceability, efficient logistics support, and paperless trade facilitation.
Page 5 Somnuk Keretho, PhD
Smallholder farmers working together through a Cooperative sharing cost & efforts on post-harvesting, traceability, marketing and export management
Ready for truck
transportation and
exporting to Japan by ships
Traceability information,
e.g. each banana package
coming from which farm,
is available on the internet
for international consumers
to access and check.
Farmers bring
70-75%-maturity
bananas
to the coop
for selection,
traceability,
trade and
transport operations.
A Case Example
Good
Management
enabled by
ICT,
e.g. members
& crop
Information
management,
packaging
& barcode
labeling
with
traceability
features
cleaning
selection
tagging
bar-coding
da
ta-e
ntr
y
transport
Page 6 Somnuk Keretho, PhD
Value Chain for Exporting Banana (Thayang Agriculture Co-op)
Production
(Chemical-free
banana)
Post Harvest, e.g.
Selection, Cleaning
& Packaging
Land Transport/
Freight Forwarding
Sea Transport
Importing
About 400 individual banana farmers/smallholders – owners of the co-op
Thayang Cooperative Petchaburi Province, Thailand
Toto Consumer
Cooperative Society Japan
WAGO Co., Ltd. Japan
Transport Company with Controlled-Temperature Container
Sea Carrier
Otento (Thailand)
Co., Ltd
Tops Supermarket,
Hotels,
Retailers,
Bakery,
Farmer Markets.
Transport Company with Controlled-Temperature Container
International Market Domestic Market
Selling
Transport
Market/
Consumers
Price guarantee and
also annual revenue sharing
through the co-op
A Case Example
Buyers/Consumers
Marketing & Trading
Page 7 Somnuk Keretho, PhD
Development Opportunities for Cross-border Agriculture Value Chain with e-Trade/e-Trade Faclitation
Demand
Market
Smallholder
Farmers
Collaboration
SME
Seller
Exporter
Exporter &
Freight
Transport
Providers
SME
Buyer
Importer
Applying
Good
Management
Practices
& ICT
for improving
farm production
quality, packaging
and traceability
of the produces
Regulatory
Gov
Agencies
Importer &
Freight
Transport
Providers
across
a border
Supply Demand e-Trade e-Trade
Regulatory
Gov
Agencies
e-Trade Facilitation
Adopting
e-Marketing/
e-Trade
Management
Good
Practices
enabled
with
ICT
Adopting
e-Marketing/e-Trade
Management
Developing
e-permits, e-health
& e-SPS certificates
of agriculture products
for better export clearance
by connecting
to the NSW and PCS
at the exporting country.
Cross-border
electronic exchange
e.g. e-SPS Certificates
exchange,
e-CO,
e-AWB (Air Waybill)
Understand
and meet
the buyers’
requirements,
e.g.
Quality
Standards &
Certifications
Importing Country Exporting Country
Farmer
Group
Our Target
1
2 2
4 3
NSW NSW PCS PCS
NSW = Regulatory National Single Window PCS = Port Community System
Page 8 Somnuk Keretho, PhD
Proposed Specific Measures at the national and regional-cooperation level.
1. Building capacity on management best practices and digitalization
for smallholder-farmer collaborations in improving their quality
production, packaging and traceability management.
2. Building capacity on marketing/trading management and
digitalization for smallholder-farmers and SME traders, e.g. through
e-marketplace participation for accessing market information,
publishing their product information online, receiving order and
conducting fulfillment transactions electronically.
3. Promoting and assisting the food/agriculture-related regulatory
agencies in streamlining and digitizing their internal operations and
services, e.g. for issuing import/export-related Permits, Licenses,
and Health/SPS Certificates electronically.
4. Promoting and assisting those regulatory agencies to electronically
coordinate in the NSW platform and cross-border paperless trading,
e.g. for single window entry, and cross-border information exchange.
Page 9 Somnuk Keretho, PhD
Agriculture Management Best Practices and Digitization can innovatively assist smallholder farmers.
A smart phone can read the 2D barcode label of this agri-food
product, then the traceability information (where this product
coming from, product/nutrition information, how to cook, etc.) can
be readily accessible through Internet.
http://2d.foodtrace.net:8888/TM/display.jsp?criteria=TM-GFS-001_8858893905962_5358108_02#
A Case Example
Page 10 Somnuk Keretho, PhD
1. Registration process of flora plantations, associated lists of flora and their quota/capacities (Application Form-pp15, and Registered/Output Form-pp16)
2. Amendment process for flora plantations, flora lists and quotation (addition, deletion, new flora, other changes etc.) (Forms pp 17, 18, 19, 20, 21)
3. CITES Import Permits to Thailand (Form pp 13 + Certificate of Origin + CITES Export Permits + Phytosanitary Cert in some cases) from the origin country, and requesting for CITES Import Permits
4. CITES Export Permits from Thailand (Form pp 16, pp 13 + CITES Import Permits from the destination country), and requesting for CITES Export Permits
5. CITES Transit Process at the border (Form pp 13 + CITES Import Permits at the destination, and transit clearance process at the border)
1. Importers/Exporters can submit their application forms online without physical visits to the government office.
2. Importers/Exporters can check status of their applications online.
3. Government officers can issue the CITES Permits online.
4. Those CITES Permits issuing at the DOA main office can be sent electronically to the DOA border office, and also to match with the corresponding Customs Declaration for faster/more compliant border clearance (through National Single Window).
5. Those different application forms, and CITES import/export/transit-related Permits could be in electronic forms, or printed forms as requested.
6. Data cross checking between the DOA main office, the DOA border office, and Customs to reduce fraud, and improve accuracy.
7. Amendments (Add/Update/Delete) can easily handled electronically.
- Electronic application
submission instead of paper
documents
- Electronic-based workflow
transactions, e.g. automatic
validation and workflow
automation.
- Faster/less cost:
2-3 physical visits
were reduced to
1 physical visit,
or none for each
transaction
- Better compliance with data
cross checking
- Manual and paper-based
application submission
- Paper-based workflow
transactions, e.g.
validation, approval,
archive and search.
- Costly and take
several days for
2-3 physical visits
to complete each
transaction
- Difficulty in data
cross checking &
validation with possible paper
fraud and error prone.
Change Management Challenges within each government agency!
To a new “To-Be” Process
& Environment From the familiar “As-Is” Process
& Environment
• Continuous
leadership
from Director
General
• Strong inter-
division
collaboration
• Systematic
Process
Change
Management
Page 11 Somnuk Keretho, PhD
Change Management Challenges among government agencies!
To a new “To-Be”
Electronic Single Window
(single submission),
Paperless Transactions
& Environment
From the “As-Is”
Multiple Windows,
Manual Process
& Environment
• Continuous
leadership
from Prime
Minister
• Strong inter-
agency
collaboration, e.g.
inter-agency
process redesign
• National-level
Project Mgmt
Office (PMO)
• NSW Central
Operator for
Investment,
Development,
Operations.
Page 12 Somnuk Keretho, PhD
Recommendations for international and/or regional co-operation
Conduct detailed case studies and/or assist the development of
national or sub-regional pilot projects for smallholder clusters, e.g.
household farmers and SME traders to
engage in cross-border agriculture trade
with agriculture & trade management best practices.
Develop policy recommendations and guidelines on how to formulate
and implement national agriculture value chain development plan.
Develop management guidelines on
– How to develop e-SPS/e-Health Certificates and
related import/export e-permits issuing systems,
– How to adopt standards related to traceability, e.g.
UN/CEFACT traceability standards.
Provide related capacity building/sub-regional and national workshops .
Thank you
Dr. Somnuk Keretho UNNExT Advisory Committee
Director, Institute for IT Innovation Kasetsart University, Bangkok
Page 14 Somnuk Keretho, PhD
Speaker - Dr. Somnuk Keretho
Somnuk Keretho is a faculty member of Computer Engineering Department, and the
founding Director of Institute for IT Innovation (INOVA), a research and development
institute of Kasetsart University, Thailand, specializing in ICT-enabled innovation,
trade facilitation, traceability and e-logistics initiatives including National Single
Window strategic planning and implementation, enterprise information architecture for
e-government and e-business, business process analysis and improvement, data
harmonization and modeling, ICT-related standards and interoperability, e-transaction
related laws, and process-oriented quality software engineering.
He has leded several ICT strategic projects at organizational, national and regional levels. For the past
seven years, he has assisted Ministry of Information and Communication Technology, National Economic
and Social Development Board, Ministry of Transport, Port Authority of Thailand, and Ministry of Agriculture
in architecting “Thailand Single-Window e-Logistics” related projects including its national e-logistics
strategy, implementation plans, interoperability and standards, harmonization and simplification of trade and
transport-related documents and procedures, automatic electronic-gate systems development for the
Bangkok Port and the Leamchabang Sea Port, and other software development projects.
Several of those projects are being aligned with some regional and international collaborations, in which Dr.
Keretho has actively engaged mostly related to trade facilitation, single window and paperless trading
initiatives through UNESCAP, UNECE, APEC, ASEAN and GMS. He has played several roles in catalyzing
the creation of and actively contributing to the United Nations Network of Experts for Paperless Trade in Asia
and the Pacific (www.unescap.org/unnext), and providing several technical supports to the APEC Paperless
Trading and ASEAN Single Window Initiatives. He is the main author of the UNNExT Business Process
Analysis Guide, the UNNExT Data Harmonization Guide and the UNNExT Guide for Single Window
Planning and Implementation.