National Workshop on Trade Facilitation and the Implementation of the WTO Trade Facilitation Agreement

Nay Pyi Taw, Myanmar

4-5 June 2015

The Government of the Republic

of

the Union of Myanmar

National Workshop on Trade Facilitation and the Implementation

of the WTO Trade Facilitation Agreement, Nay Pyi Taw, 4-5 June 2015

Introduction to Single Window& paperless trade

by

Dr. Yann Duval, Chief, Trade Facilitation Unit,

Trade and Investment Division, UN ESCAP

The Government of the Republic

of

the Union of Myanmar

3

� Paperless Trade

Conduct of trade activities on

the basis of electronic rather

than paper documents e.g. electronic Customs declaration,

electronic cert. of origin

(application of ICT to trade

procedures)

� Paperless Trade Systems

Legal/regulatory and technical

frameworks in which paperless trade

transactions take place e.g. electronic

Single Window facility, e-port

management systems, Framework Act

on Electronic Transaction (in RoK)

Chamber

ImporterExporter

ShipperForwarder

Customs

Inspection

eCO

Paperless Trade?

4

one-stop facility to exchange

information between traders and

government, thereby reducing

the complexity, time and costs

involved in international trade

� Lodging standardized information and documents with a single entry point only

once.

� Sharing information among government agencies.

� Providing a single source of trade related government information

� Allowing payment of duties and other charges.

� Facilitating coordinated controls and inspections of various government authorities.

Typical Features of a Single Window

Single Window?

Why a Single Window?

6

Benefits of Single Window

Effective & EfficientDeployment of Resources

CorrectRevenueYield

ImprovedTrader

Compliance

EnhancedSecurity

IncreasedIntegrity &

Transparency

FasterClearance &Release

PredictableApplication and

Explanation of Rules

Cutting Coststhrough

Reducing Delays

Effective & EfficientDeployment ofResources

IncreasedTransparency

Single Window

TradersGovernment

7

Selected Countries National

SW

Ease of trading

across border –

World Rank

Logistics

Performance-

World Rank

Singapore Yes 1 2

Hong Kong, China Yes 2 13

Rep. of Korea Yes 8 23

Thailand Yes 12 35

Malaysia Yes 35 29

China No 44 27

Viet Nam No 74 53

Cambodia No 127 129

Iran No 134 103

Nepal No 161 147

Source: Based on Doing Business and LPI 2010 rankings

Single Window and Trade Efficiency

8

Business

Process Analysis

Data

Harmonization

ICT

Application

Single Window Implementation

(Step-by-step Approach)

9

Political

Will

(Mandate)

Stakeholder

CoordinationLegal

Framework

Business

Model

Technical

Issues

Requirements to Single Window Implementation

10

Political Will and Strategic Mandate

Business Case

Sustainability

Competitive Edge

Economic Impact

Political

Buy-in

Political

Buy-in

11

Korean Case: Political Commitment at the Top Level

Chair : Vice Minister of MOCIE

Administrative Committee

Chair : Prime Minister

National e-Trade Committee

Chair : Dr. Jung Uck, Seo

Private e-Trade Committee

Korea e-Trade Facilitation CenterKorea e-Trade Facilitation Center

Platform

W/GFinance

W/G

Logistics

W/GMarketing

W/G

Global

W/G

Law

W/G

e-TP PM

e-TDRLaw Reform e-L/C

e-Nego

RFID

e-L/G

e-D/O

e-MP

e-Catalog

Solutions

e-C/O

e-B/L

APEC,ASEM

Bilateral NetworkingSource: Hee-Chul Jung, “Republic of Korea” UN/CEFACT Single Window Repository

12

Manufacturing

Logistics improvement

Infrastructure and

logistics network

optimization

Logistics service international-ization

Trade facilitation enhancement Capacity building

54321

2. Manufacturing logistics Action

Plan3. Trade logistics Action Plan

5. Logistics data system Action

Plan

6. Logistics human resource development

Action Plan1. Urgent logistics Development

AP 2007

World Class Logistics System to support Thai Business and Industries Vision

Objectives

Strategic

Agendas

1. Cost Efficiency / Responsiveness / Reliability and Security

2. Business value creation

4. Single Window e-Logistics Development

Plan (SWeL)

Source: Suriyon (NESDB), ESCAP/ECE SW Workshop, Mongolia, 2009

Thai Case: Political link through Strategic Mandate

13

Stakeholder Coordination

Clear

Scope Proper

Communication

Channel

Strong

Lead Agency

Importance of Inter-agency

Coordination: Indonesia

Indonesia National Single

Window

(INSW)

Ministry Of Trade Customs

& Excise

FDA

Animal Quarantine

Fish Quarantine

POST & TELCo

Ministry of Industry

Ministry of Health

Ministry of ICTPort

Authority

Ministry of Transporta

tion

Ministry of Defense

National Police

Nuclear Control NA

Ministry of Environme

nt

Ministry of Energy

Central Bank

Ministry of Agriculture

Source: Muwasiq Noor, Capacity Building Workshop on

Implementing Single Window Environment for Mongolia (2014)

15

Advisor : Coord. Minister for Economic Affairs (CMEA)

Head : Minister of Finance

Vice Head - I : Minister of Trade

Vice Head - II : Minister of Transportation

National Team for INDONESIA NSW Preparation

Executive Director : Deputy IV, CMEA

Vice Executive Director - I : DG of Customs and Excise

Vice Executive Director - II : DG of International Trade

Vice Executive Director - III : DG of Sea Transportation

Anggota : Chief Executive of 19 GAs

Oversight and

Internal Steering

Committee

Secretariat

Expert

Group

Working

Group -

Legal

Working

Group –

Information

Technology

Working

Group –

Business

Process

Working

Group -

Institutional

Working

Group –

International

Relation

Technical Team for

Development &

Implementation

16

Thai Case: Broad Stakeholder Engagement

Source: Suriyon (NESDB), ESCAP/ECE SW Workshop, Mongolia, 2009

17

Legal Framework

Enabling Legal Environment

Legal basis for

Single Window

e-Archiving

e-Documents Liability

Data qualityData protection

Data access

authority

Identification,

authentication &

authorization

Single Window

structure &

organization

IPR and

data ownership

CompetitionArbitration and

dispute resolution

Source: UN/CEFACT Recommendation 35

18

Single Window Models

Public PrivatePartnership

Single Window

Establishment & Operation

Role of Private Sector

and Public-Private Partnership:

Malaysia

Objective:• Automate internal

processes

– Internal information systems

Scenario:• Internal LAN

Stage 1:

The Isolated Organisation

Objective:• Connect with major

business partners for critical business processes

– Many to one connectivity

– To exchange messages

Scenario:• Ethernet connection

• WAN

Stage 2:

The Connected

Organisations

Objectives:• Increase efficiency in the trade

facilitation value chain by exchanging messages/data electronically through a single connectivity and promoting the re-usability of data; a paperless and error-free process environment

• Electronic commerce is promoted as the means of inter-organisation communication

• Increased connectivity and integration with all trading parties

• Increased use of ICT (Information Communication & Technology) as the enabling tools

• Foster integration by connecting multi-modal operations, improving the cooperation of the Trade Community

Scenario:• Web services

• Use of message standards

Stage 4:

National Single Window

(Connecting to the world)

Objective:• Linking all trading parties

within the community to exchange messages/data electronically through a single connectivity

– Regulatory declarations

– Manifests

Scenario:• Community portal

• Integration with web technology

• Use of message standards

Stage 3:

The Community System

Phased movement towards a Single Window

Source: Eswaran (Dagang Net, Malaysia) (2011)

More of an evolution than a

revolution: Singapore

Source: UNNExT Brief #2

Importer/Exporter/Customs Broker/Representative/

other Stakeholders

NSWInternet

Terminal Operators

Air Port AuthorityPort Authority etc.

Banksfor variouskinds of e-payment

Insurance Companies

Ship Agents/Vessels

Airlines

Paperless Customs

A regional information exchange system or

cross-border paperless trade

Other Regulatory Agencies for E-Permits/e-Certificates Exchange

FreightForwarders

and LogisticsService

ProvidersDuty Free Zones

Traders

Stage A: [Customs SW] Paperless Customs + e-Payment for Customs Duty + e-Manifest + and electronic risk-based inspection

Stage B: [Regulatory SW] Connecting Other Government Back-end IT systems, and e-Permit/e-Certificate Exchange with Paperless Customs System

Stage C: [PCS] e-Document/Data Exchange among Stakeholders within the (air, sea) port community

Stage E: A regional information-exchangeenvironment

Stage D: [Integrated SW] An integrated national logistics platform also with traders, regulators and logistics-service providers information exchange

Note 1 - Stage C can be developedbefore with Stage B.

Note 2 – The evolution may not be sequential, e.g. Stage B & C may be developed seperatelyin parallel, and may then be interconnected later.

Port Community SystemInformation Exchange

National e-logistics Platform

An Evolutionary Long-term Roadmap for SW Development(but not necessary in a sequential fashion)

FreightForwarders

22

Single Window beyond

Border: Regional Initiatives

Type Countries/Economies/Cases

National

Single Window (in

Operation)

Azerbaijan, Japan, Indonesia, Malaysia, Philippines, Republic of

Korea, Singapore, Thailand

Single Window

(under Development)

All other ASEAN countries, Kazakhstan, Kyrgyz Republic,

Mongolia, Turkey, Tajikistan, Uzbekistan, Russian Federation,

India

Other Paperless

Trade Systems

- India’s Indian Customs EDI System (ICES)

- China’s e-Ports

- Digital Trade & Transport Network (DTTN) of Hong Kong, China

- Pakistan’s Web-Based One Customs (WeBOC)

Bilateral Initiatives

- Electronic Certificate of Origin between Republic of Korea and

Taiwan Province of China

- Electronic Exchange of Preferential Certificate of Origin among

ASEAN members

- Electronic Sanitary and Phyto-Sanitary (e-SPS) exchange

between Australia and New Zealand

Subregional /Regional Initiatives

- ASEAN Single Window

- Pan Asian e-Commerce Alliance (PAA)

- ESCAP Regional Agreement for the facilitation of cross-

border paperless trade (under negotiation)

“an ongoing community of

knowledge and practice to

facilitate the implementation

of single window and

paperless trade in the Asia-

Pacific region ”

– Tools and guides development activities

– Advocacy and Technical Training Workshops

– Knowledge sharing and peer-to-peer support

United Nations Network of Experts for Paperless Trade and Transport in Asia and the Pacific

23

unnext.unescap.org

UNNExT Single Window Implementation Toolkit for Trade Facilitation

*For more information, visit: unnext.unescap.org

*

Strong Intergovernmental

Commitment: ASEAN Single

Window (ASW)

Source: ASW Technical Guide V6 (2006)

ASW Architecture Design

Source: Marianne Wong , UNNExT Brief No. 13 (2015)

http://unnext.unescap.org/pub/brief13.pdf

29

� Strong top-down intergovernmental agreement helps

parties to take proactive actions.

� Progress is slow, even at the level of implementing

National Single Windows (NSWs), mainly due to capacity

gaps among members.

� Pilot trade data exchange has started with selected

documents and data among ready members – Customs

declaration and preferential certificate of origin

� Full operation of ASW may take quite a long time, yet it

may not be able to share trade data at a whole document

level, but at specific data level.

ASW Development & Progress

30

Private Sector led Regional

Initiative: Pan Asian

eCommerce Alliance (PAA)

PAA: Case of electronic certificate of Origin

Source: UNNExT Brief No. 9 (2009)

http://unnext.unescap.org/pub/brief9.pdf

� PAA innovates its business models to enable cross-border

trade data exchange and achieved good progress in

facilitating B2B trade transaction data, but has limited

success in facilitating B2G trade data exchange, let alone

G2G.

� As an alliance of private sector service providers, PAA

cannot provide intergovernmental coordination in

facilitating cross-border trade data exchange.

“express our strong collective commitment to support the Regional

Agreement/Framework Agreement on Facilitation of Cross-border

Paperless Trade for sustainable intraregional trade facilitation”

PAA Declaration (Dec 2013)

PAA: intergovernmental framework needed to

support cross-border exchange of electronic trade

documents

* Challenges to moving forward

on cross-border paperless

trade�Adoption of common

International Standards

�Harmonization of legal frameworks

�Capacity gaps among the parties

�Cooperation between public and private sectors

�Lack of intergovernmental coordination mechanism

• Key features of current draft text

• Objective: to facilitate cross-border paperless trade (by providing a dedicated intergovernmental framework to develop legal and technical solutions)

• A set of general principles to facilitate interoperability between paperless trade systems and that solutions developed under the arrangement lead both to higher levels of trade facilitation and regulatory compliance

• A multi-layered institutional arrangement as an operating platform

• A comprehensive action plan to develop standardized solutions and protocols for cross-border electronic exchange and recognition of trade-related data and documents, including pilot projects

• Strong capacity building provisions

• UN treaty text (i.e., once text is finalized, it would be opened for signature by willing ESCAP Member states; would come into force after 5 ESCAP Member States sign and ratify it)

• The issue: Facilitating international trade inherently requires that information flows seamlessly across borders along international supply chains, but this has yet to happen as paperless trade systems (e.g., SW) have focused only on electronic exchange of data/documents among domestic stakeholders.

• Link to WTO TFA: Complementary to the WTO TFA,

as aimed at facilitating application of information and communication technologies to trade facilitation measures (including single window)

8

Process & progress towards a regional arrangement on the facilitation of cross-border paperless trade

Regional

study/

Expert

reviews

Member

Consul-

tations

Ad hoc

Inter-

govern-mental

meeting

Moving

Forward

•Feasibility Study

for a regional

arrangement

(Aug-Dec 2012)

•Expert Review

Meeting (1 Nov

2012) and online

Review (Feb.

2013)

•Two Expert

Group Meetings

(Mar. - May 2013)

•3 sub-regional

(Southeast, South &

South West, and East

and North-East)

meetings (July 2013)

•Regional meeting

(Sep. 2013)

• Report to 3rd Session

of Committee on

Trade and Investment

(Nov 2013)

• Negotiation and

improvement of the

draft text of regional

arrangement (April

2014)

• Decision to establish an

Interim

Intergovernmental

Steering Group on

Cross-border Paperless

Trade Facilitation

• Report Implementation

progress to the 70th Session

of the Commission (Aug

2014)

• Interim Intergovernmental

Steering Group further

improves the draft text of a

regional arrangement , and

start drafting a roadmap for

implementation (April 2015)

Please visit http://unnext.unescap.org/reso683.asp for details.

Way Forward on the Regional Arrangement on the Facilitation of Cross-Border Paperless Trade in Asia and the Pacific

• First Meeting of the Interim Intergovernmental Steering Group on Cross-Border Paperless Trade held on 1-3 April 2014 in Bangkok

•Meeting decided to establish LEGAL and TECHNICAL Working Groups

• All Seat of Governments to nominate PUBLIC and/or PRIVATE sector experts to the Working Groups by the end of July 2015• To meet in Bangkok in September and November 2015, and report to

the 2nd Steering Group Meeting in April 2016