Findings from National BPA of Mongolia

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1 Workshop on Facilitation of Trade in Northeast Asia through Paperless Trade 교통물류연구사업중간평가 Findings from National BPA of Mongolia Ms. Tsevelsaikhan Sharbandi and Ms. Kerri Ahn

2 Project Activities Collection of Trade Data: October December 2016 Interim Review Meeting: December st Review meeting with ESCAP International Consultant and Mongolia Stakeholders : February 10 th 2017 Introduce the project, review the output of Mongolia National Report Capture requirements from Mongolia Stakeholders Training UML diagram drawing Discuss next step Bilateral review of national report : March ~ July 2017

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4 Total Turnover of Foreign Trade:

5 Structure of Export Commodities

6 Structure of Import Commodities

7 Trade with neighboring country - Export

8 Trade with neighboring country - Import

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10 Use Case Diagram of Overall Export Procedure

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12 Use Case Diagram of Export Procedure to Russian Federation

13 Buy Ship Process Description of Export Procedure to Russian Federation Business Process Remark Prepare export Arrange Transport Receive orders Export Transport Purchase order Export Transport Clear goods Custom General Declaration Custom Declaration Cargo Declaration Certificate of Origin Importer sends purchase order to Exporter. Give orders to industry and prepare orders Exporter requests to deliver cargo to final destination (Importer) from Ulaanbaatar to Moscow by air transport Cross-Border Carrier requests approval of departure of Air plane to Customs Freight forwarder (Customs broker) requests approval of cargo export to Customs, by submitting customs report to Customs having jurisdictions over the places where products are to be exported Not necessary. Because air transport requests general declaration. If general declaration is filled, cargo declaration doesn t need. Exporter receives certificate of origin of exporting cargo from MNCCI before export procedure. Quarantine Quarantine Requested by Exporter. Conduct quarantine operation of exporting cargo by Quarantine agency to prevent domestic and overseas dissemination of infectious diseases. Inspection Inspection Requested by Exporter. Credited laboratory. Inspection Check of exporting cargo by Inspection agency, that means to verify cargo before exporting. Pay Payment Advance payment Importer pays to Exporter

14 Sequence Diagram of Export Procedure to Russian Federation

15 Integrated Activity Diagram of Export Procedure to Russian Federation

16 Time and Cost for Export to Russian Federation

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18 Use Case Diagram of Export Procedure to China

19 Buy Ship Process Description of Export Procedure to China Business Process Remark Prepare export Arrange Transport Receive orders Domestic Transport Export Transport Purchase Order Domestic Transport Export Transport Clear goods Custom Custom Declaration Cargo Declaration Importer sends purchase order to Exporter. Give orders to industry and prepare orders. Exporter requests to deliver cargo to border area from Ulaanbaatar to Beijing by Railway Exporter requests to deliver cargo to final destination (Importer) from Ulaanbaatar to Beijing by Railway Freight forwarder (Customs broker) requests approval of cargo export to Customs, by submitting customs report to Customs having jurisdictions over the places where products are to be exported Cross-Border Carrier requests approval of cargo export to Customs, by submitting customs report to Customs having jurisdictions over the places where products are to be exported Quarantine Quarantine Requested by Exporter. Conduct quarantine operation of exporting cargo by Quarantine agency to prevent domestic and overseas dissemination of infectious diseases. Inspection Inspection Requested by Exporter. Credited laboratory. Inspection Check of exporting cargo by Inspection agency, that means to verify cargo before exporting. Pay Payment Advance payment Importer pays to Exporter

20 Sequence Diagram of Export Procedure to China

21 Integrated Activity Diagram of Export Procedure to China

22 Time and Cost for Export to China

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24 Use Case Diagram of Export Procedure to Republic of Korea

25 Buy Ship Process Description of Export Procedure to the Republic of Korea Business Process Remark Prepare export Arrange Transport Receive orders Domestic Transport Export Transport Purchase Order Domestic Transport Export Transport Clear goods Custom Custom Declaration Cargo Declaration Importer sends purchase order to Exporter. Give orders to industry and prepare orders. Exporter requests to deliver cargo to border area from Ulaanbaatar to Zamiin- Uud by Railway Exporter requests to deliver cargo to final destination (Importer) from Ulaanbaatar to Incheon by Railway and Sea transport (transit in China). On transiting in China, the exporting cargo is unloaded and re-loaded from one transport means to another transport means in transit place (China) Freight forwarder (Customs broker) requests approval of cargo export to Customs, by submitting customs report to Customs having jurisdictions over the places where products are to be exported Cross-Border Carrier requests approval of cargo export to Customs, by submitting customs report to Customs having jurisdictions over the places where products are to be exported Quarantine Quarantine Requested by Exporter. Conduct quarantine operation of exporting cargo by Quarantine agency to prevent domestic and overseas dissemination of infectious diseases. Inspection Inspection Requested by Exporter. Credited laboratory. Inspection Check of exporting cargo by Inspection agency, that means to verify cargo before exporting. Pay Payment Advance payment Importer pays to Exporter

26 Sequence Diagram of Export Procedure to Republic of Korea

27 Integrated Activity Diagram of Export Procedure to Republic of Korea

28 Time and Cost for Export to Republic of Korea

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30 From Mongolian Stakeholders Procedural Issues Mongolia user receives paper document of Railway from Russian Federation through Fax it takes usually 10 days or 2 weeks. Mongolia stakeholders want to receive information from Russian Federation through system No needs General Declaration Procedure except of Air Transport No needs Domestic Transport in case of Air Transport Economic Issues by Geographical Characteristic Very expensive transportation cost Time losses Needs extra cost in case of cargo loss, corruption, unexpected problem, etc. Exists gaps between public sector and private sector

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