Trade Facilitation and Master Plans for Single Windows Implementation Experiences in building the Korean inter-agency information exchange System

Transcription

1 Trade Facilitation and Master Plans for Single Windows Implementation Experiences in building the Korean inter-agency information exchange System 29. Nov.2013 Rama S. H. HA Korea Trade Network

2 About KTNET Recommendations

3 4. Recommendations

4 1. Background Excessive trade documents Bottleneck in trade process More than 620 boxes per company days for customs clearance Rapid growth of trade volume * CAGR: Compound Annual Growth Rate Manage all trade tasks electronically

5 1. Background KTNET, Founded by KITA in June 1, 1991 to strengthen industrial competiveness of Trade community through Process Renovation utilizing by the Government KITA 4 th Korea World Trace Center Seoul Korea Paperless Trade Center Pangyo Exclusive investment by KITA (Initial Capital USD78Million) Operation Center IT Center

6 2. Korean Single Window Conceptual Model OGAs & Regulatory Authorities * ASPLine : Electronic licensing & Certification System developed and operated by KTNET Trading Co. Declarant 3 4 Manage and issue the license & Certification in ASPLine types of e-documents 2 B2B, B2G, G2B, Global Service 4 Notify the Result Private-Centric Integrated National Single Window Apply for 3 e-licensing & Certification 5 Apply for e-licensing & Certification Customs Declaration 7 3 B2G, G2B 4 Notify the Result Customs-Centric Single Window 6 G2G Trading Communities Global Service Other Governments Airlines Ocean Carriers Customs Forwarders Bonded Bonded Brokers Banks Insurances Trading Communities in TransportationWarehouse overseas countries Successful PPP Korean Single Window Model MOTIE, KIS, Quarantines, NTS etc.

7 2. Korean Single Window Communities Customs & Logistics <6,872> Financial Institution<96> Airlines Ocean Carriers Customs Brokers Forwarders Bonded Transportation Bonded Warehouse Banks Insurances Trading Company <55,513> Korean Single Window OGAs & License/Certification <470> MOTIE, KCS, KIS, Quarantines (CIQ), NTS, POA etc. China EU ulogisview Asia North America Japan Malaysia PAA Portal Macau Thailand Taiwan Singapore Hong Kong Indonesia Philippines Global Van Overseas Partners (ARINC, GXS, TRAXON ) < As of Dec >

8 2. Korean Single Window Services KTNET provides internet based Paperless Trade services which support the whole cycle of trade process for the first time in the world. 620 different kinds of e-documents based on both domestic and International standards and 306 Million transactions in PAA Initiative Korea-Taiwan e-c/o Paperless Trade Initiative S/R, e-b/l Manifest General Declaration Cargo Visibility API, ACI Korean Single Window P/O, Invoice, P/L Certificates/License C/O, Tax Invoice Purchase Confirmation of raw material 3 2 e-l/c e-negotiation Settlement Export Clearance Import Clearance Duty Draw-back Risk Management

9 3. Economic effects Nationally, the economic impact of paperless trade reached to 5.57 billion US dollars, but the cost of operating system is 0.15 billion US dollars(2010, KITA). Samsung Electronics has reduced 67% of lead time, 80% of processing time, 84% of labor and 95% of papers in overseas purchase. Comparison between Before and After of Adoption of paperless Trade in SE Lead time in Purchase 67% 12 4 Week Paper Documents 95% Boxes Inventory date H/R for Clearance Document Handling Capacity 80% 220% 25 6,894 84% 22 k 1, k Period person Document/person

10 3. Economic effects Paperless Trading has contributed Korea to join the trade volume $ 1 Trillion club as the number of 8th country in the world, 2011 and grow at the top 7th country for export trade volume in all the world, [1962 Year) - Unit : 10Milion dollar - Ranking among 159 countries No.1 United States(2,171)) [2012 Year) Unit : 100 Million dollar No.1 China(20,489) No.4 France(741) No.3 Germany(1,324) No.3 United Kingdom(1,137)) No.2 United States(15,471) No.3 Germany(14,076) No.4 Japan(7,985) No.5 Netherland(6,564) No.5 USSR(703) No.6 France(5,695) No.8 Russia(5,293) No.7 Korea(5,481) No.9 Italy(5,005) No.104 Korea(6) No.10 United Kingdom(4,686) Source : KITA(Korea International Trade Association),

11 2. Recommendations

12 Ready for implementation? Once the system development starts, there is limited time to handle the issues below: Clear vision? Stakeholder coordination mechanism? Clear scope/time frame? And deliverables? Reform of business process? Enough capability to take over the platform? Business model? Financial plan? 12

13 Vision and Stakeholder coordination mechanism Share the Vision among key stakeholders Create High-level Single Window committee or utilize cur rent trade/logistics facilitation committee (UN/CEFACT Recommendation No. 4) Effective inter-agency co-ordination Public Private partnership A good plan Single Window Master plan through instituti onal stake-holder mechanism 13

14 Scope and time frame Clear stakeholders requirements Clear understanding of deliverables of the project by e ach time frame 14

15 Reform of business process Conduct BPR/ISP (5 ~15% of development resource) Benefits of successful implementation of Single window => 80% from business process reform 20% from functionality of the platform Another 80:20 rule => Focus on simplification of major bottle neck - busines s processes that traders mostly encounter in reality 15

16 Ready to take over the platform? Good Single Window should be able to evolves its functionality by itself -> Sustainable Single Window Simulate the operational resources => Prepare for capacity building programs and recruit local experts (Recommend open-source) Input as many Tajikistan IT resources into the development 16

17 Business model and Financial plan Simulation and projection of expected cost for operation => The smaller, the better to maintain => Huge system will be a burden to operator as well as tra ders Study business model of other Single Window => Operation costs by Government? Or by traders? => Transaction model, Clouding service model Add more value added services 17 => IDC, CA, Repository service, and cargo tracking

18 General Single Window Implementation Framework 1. Initiatives for Single Window Implementation Environment 1.1 Concept Note 1.2 Feasibility Study 1.3 High Level Single Window Master Plan 1.4 Institutional Arrangement (National Single Window Committee or National Trade Facilitation Committee) 1.5 Financial Plan 2. Single Window Designing 2.1 Project Management Office (Group) 2.2 Single Window Implementation Action Plan 2.3 Business Process Reengineering (Innovation) and Single Window Business Modeling 2.4 Data Harmonization and Standardization Revision of Laws and Regulations 2.5 Information Strategy Planning 3. Development and Operation of Single Window Infrastructure 3.1 Development of Single Window Infrastructure and Application 3.2 Change Management and Capacity Building 3.3 Single Window Operation and Expansion

19 What is Feasibility Study? Five areas of feasibility that determine whether a project should run or not T - Technical - Is the project technically possible? Or what technical options are available? E - Economic - Can the project be afforded? Will the project be benefit? L - Legal - Is the project legal? Or what are the gaps between a deliverable of a project and current legislation? O - Organizational (Operational) - Will the organization accept the change? Or will the solution work properly in the organization if implemented? S - Scheduling - Can the project be done in time? Or what is the expected time frame to undertake the project successfully? F/S for Single Window implementation? Coordination of the interests of stakeholders from public and private sectors Simplification of procedures of data and document exchange including data harmonization and standardization for trade facilitation A national level large scale ICT Project

20 Methodology for F/S on S/W Building Study Group Develop F/S plan, build a Study Group, develop a F/S action plan Environment Analysis implications (improvement opportunity) Analyze general environment for S/W such as related laws/regulations, stakeholders, and national level ICT plan/environment AS-IS Analysis implications (improvement opportunity) Conduct Business Process Analysis on trade procedures such as customs, logistics, licensing and certification, banking and trade finance Conduct ICT Status Analysis on 1 System and application level of stakeholders 2 ICT infrastructure (H/W and N/W) Define improvement opportunities(factors) and stakeholder demands Analyze best practices and business/technical trends, and define the gap Future Model and Feasibility Analysis Define the vision, key words, strategy and future Single Window architecture Analyze 5 areas of the feasibility and develop implementation strategy Reporting

21 Case : F/S for Mongolian Single Electronic Window F/S for MSEW MGCA and NIPA(National ICT Promotion Agency) of Korea September 2010 ~ November 2010 NIPA provides feasibility Study to other countries in needs as part of Korean Government s intergovernmental cooperation measure Vision, key words and main tasks were derived from study

22 Case : F/S for Mongolian Single Electronic Window Result of F/S for MSEW

23 What is the Master Plan for Single Window implementation? Objectives To align Single Window objectives with the current As-Is status, and to define clear paths for development and deployment of the target To-Be Single Window including an institutional mechanism. After a S/W high-level master plan is initially established, it would become the reference for future implementation and deployment initiatives responding to SW requirements

24 Key Elements of a Master Plan (1) Key Elements Single Window Vision and Objectives Project Needs Single Window Model and Scope Expected Benefits of Single Window Institutional arrangement and political commitment for stakeholder coordination Business Process Reengineering (Innovation) Description A clear statement of the project's Vision, goals and objectives. The vision and objective should be set for the benefit of trade c ommunity but not for Government. Define Gap between AS-IS and the Goal A clear statement of Single Window model and scopes to be i mplemented Describe the benefits of private sectors as well as that of publi c sectors involved This is essential to keep all stakeholders informed and on-bo ard throughout the project. Formal institutional arrangements should be addressed to facilitate the participation of all stakeh olders in the development of the Single Window relevant gov ernment agencies and private sector representatives. The part icipation of the private sector, as the ultimate user of the servi ces provided by the SW, is critical in order to gain information from the user perspective. In the High Level Master Plan, the importance of and needs for the BPR, in alliance with the Single Window scope, should be defined and arranged in advance to actual designing the syste m and implementation of it.

25 Key Elements of a Master Plan (2) Key Elements Revision of legal infrastructure Major Components or Functionalities of Single Window Single Window Business and Operation Model Project Budget and Source Development approach a nd schedule Human Resources and Training Promotion plan Description Achieve the required legislative changes to operate a Single Windo w; - Develop, or modify where necessary, existing legacy systems Identify components and functions essential to carrying out its res ponsibilities of related government agencies in the Single Window scope Identify a Business Case for the establishment of a Single Windo w under each proposed scenario, including an estimate of the initi al(development) and operating costs, value of the benefits, sustain ability, possible mechanisms for revenue collection and time frame s for implementation; Expected Project Implementation Budget and Source In consideration of the implementation strategy, scope, readiness and budget of the Single Window implementation, full or phased a pproach method and schedule should be defined. Define human resource inputs and capacity building needs Recommend a promotion strategy for the development and operat ion of the Single Window A Compulsory or a voluntary use of the Single Window services could be considered as a part of promotion plan

26 UN Network of Experts for Paperless Trade in Asia-Pacific Region ongoing community of knowledge and practice to facilitate the implementation of single window and paperless trade in the Asia-Pacific region 26

27 Sung Heun HA Director / Global Business & Cooperation Team Korea Trade Network Tel : Mobile ramaku@ktnet.com, ramaku@outlook.com