UNNExT Workshops on Trade Facilitation

Transcription

1 UNNExT Workshops on Trade Facilitation UNNExT Workshop on Trade Facilitation and Paperless Systems for Agrifood Products Almaty, Kazakhstan 4-6 May

2 BUSINESS PROCESS ANALYSIS OF THE EXPORT OF CEREAL BUSINESS PROCESS ANALYSIS OF EXPORT CEREAL PRODUCT FROM KAZAKHSTAN TO AZERBAIJAN YELENA VASSILEVSKAYA (KAZAKHSTAN) Workshop on Trade Facilitation and Paperless Systems for Agrifood Products, Almaty, Kazakhstan, 4-6 May 2015

3 Тыс. $ BUSINESS PROCESS ANALYSIS OF THE EXPORT OF CEREAL WHY CEREAL PRODUCT EXPORT FROM KAZAKHSTAN TO AZERBAIJAN IS IMPORTANT? The grain industry is a high priority in the agriculture of Kazakhstan and one of the leading places in the economy of the country. 90% of the acreage is used for growing cereals. Among the CIS countries Kazakhstan is the third largest producer of the grain after Russia and Ukraine (12,3-15,9 mln. tons in weight after processing). In the production of flour Kazakhstan takes the leading position in the world. In the commodity structure export cereal product export (by value) accounts is about 2%. The grain is exported to 44 countries around the world. 44.3% of the total cereal product export is export to the CIS countries. Export to Azerbaijan takes the largest volumes (13% of cereal product export of Kazakhstan ) The main importer of cereal product for Azerbaijan is Kazakhstan. the volume of cereal product import volumes from Kazakhstan increase annually % 61% 50% Import from other countres Import from Kazakhstan

4 2. Ship BUSINESS BUSINESS PROCESS PROCESS ANALYSIS ANALYSIS OF THE OF EXPORT THE EXPORT OF CEREAL OF CEREAL PRODUCT PRODUCT FROM FROM KAZAKHSTAN KAZAKHSTAN TO AZERBAIJAN TO AZERBAIJAN Obtain import permit 2.2. Obtain a phytosanitary certificate Azeri Sanitary Inspection USE CASE OF EXPORT CEREAL PRODUCT 1. Buy 1.1. Contract conclusion Exporter 2.3. Confirmation of obligation supply grain to the state resource Research laboratory Inspection in the agricultural sector 2.4. Obtain a certificate of conformity Exporter's Bank 3. Pay 3.1.Establish Importer's payment guarantee Bank 3.2. Claim payment for goods Importer 2.5. Arrange transport and transportation 2.6. Loading and custom declaration Certification bodies KazakhstanR ail ways Russian Fright forwarder Owner of cars Importer's Bank 2.7. Border crossing of Russia 2.8. Border crossing of Azerbaijan 2.9. Unloading cargo and Custom declaration Kazakhstan Customs Azeri Customs Sanitary Inspection Russian Rail ways and other control 3 process areas of supply chain: Sale - 1 business process Delivery 9 business processes Payment - 2 business process 19 stakeholders Azeri Rail ways

5 BUSINESS PROCESS ANALYSIS OF THE EXPORT OF CEREAL MAIN DELIVERY ROUTES OF CEREAL PRODUCT EXPORT FROM KAZAKHSTAN TO AZERBAIJAN

6 BUSINESS BUSINESS PROCESS ANALYSIS PROCESS OF ANALYSIS THE EXPORT OF THE OF EXPORT CEREAL OF CEREAL PRODUCT PRODUCT FROM KAZAKHSTAN FROM KAZAKHSTAN TO AZERBAIJAN TO AZERBAIJAN The organization supplies the most complicated process. It can be carried out from the northern regions of Kazakhstan to Azerbaijan: автотранспортом (обычно не используется из-за высокой стоимости) By railway through Russia By two types of transport: by railway to the port of Aktau, and then across the Caspian Sea to the port of Baku (overload at a terminal in the port) By road transport (generally not used because of the high cost) The study examined the delivery by railway. A rather complicated process: it takes 15 days in the coming months to apply for transportation. Calculating the cost and time transportation of cereal product from Kazakhstan to Azerbaijan by railway Route Transit time, days Distance in Country of Cost in $ Country Destination km Average Actual origin Kazakhstan Kustanay D. Nurpeisov Russia Kigash Samur Azerbaijan Yalama Baku-Tovarnaya Total: Wagon cost operation 670 rent 1650 Total for carriage

7 Exporter Certification bodies Research laboratory BUSINESS BUSINESS PROCESS ANALYSIS PROCESS OF ANALYSIS THE EXPORT OF THE OF EXPORT CEREAL OF CEREAL PRODUCT PRODUCT FROM KAZAKHSTAN FROM KAZAKHSTAN TO AZERBAIJAN TO AZERBAIJAN Submit application for confirmation of compliance Application Conclusion of Contract on certification services and procedures Registration of application Conclusion of Contract on certification services and procedures Core business process area 2.4. OBTAINING CERTIFICATE OF CONFORMITY Payment for services of conformity Payment receipt contract for works on certification Identification of cereals samples quantity and sampling requirements Stakeholders: Exporter (Applicant) Body of conformity (Certifying agency) Testing laboratory Cereals sampling, product sampling acts Sampling act Consists of 12 steps Average time required: 12 days Cost: 68$ Attendance in sampling process Pack cereals samples in presence of applicant for submission to laboratory Checking conformity with existing requirements not conformity Testing arrangements and test protocol Test protocol Output and criteria to exit the business process: Exporter holds Certificate of Conformity and copies of test protocols for his cereal products conformity Obtain of Certificate of Conformity Registration of Certificate in data base Certificate of Conformity Regulation: 6 regulatory documents

8 Shipper (Exporter) or Freight Forwarder Kazakhstan Rail ways Owner of Rail cars Russian Fright forwarder BUSINESS BUSINESS PROCESS ANALYSIS PROCESS OF ANALYSIS THE EXPORT OF THE OF EXPORT CEREAL OF CEREAL PRODUCT PRODUCT FROM KAZAKHSTAN FROM KAZAKHSTAN TO AZERBAIJAN TO AZERBAIJAN Apply for carriage E-application Search for competitive wagon costs Obtain consigner s code Consigner s 4- digit code Obtain approval for application Obtaining approval for application and date of dispatch Core business process area 2.5. ОРГАНИЗАЦИЯ ПЕРЕВОЗКИ Stakeholders: Exporter Kazakhstan Railways Owner of rail cars Russian Freight forwarder Conclude a wagon service contract, payment of service Wagon service contract Conclude a wagon service contract Consists of 13 steps Average time required: дней Cost: 5000$ per car (60 т) Search for competitive freight forwarder costs Conclude a freight forwarding contract Freight forwarding contract through Russian territory Cost calculation Transfer of funds to Railway s bank account Availability of funds to cover carriage costs Conclude a carriage contract with Russian Railways Output and criteria to exit the business process: Exporter holds: whole set of documents associated with the carriage sufficient funds on Kazakhstan Railway s bank account wagons contract with Russian freight forwarder and pays for goods transit through Russian territory Set of documents for signing a carriage contract Regulation: more that 10 regulatory documents

9 Exporter Notify date and place of carriage Pay for wagon service Pay of customs fees Payment receipt Complete of customs declaration Сustoms declaration Complete of OSGD consignment note enclosed with a set of required documents KazakhstanRail ways Owner of cars Sanitary Inspection Customs Confirm available funds of shipper Supervision of loading Preparation of wagon for loading Wagon feed at scheduled date and designated place Assign the inspectors to the place of loading at scheduled date Supervision of wagon arrangements Supervision of loading, availability of documents Delegate of official to place of loading BUSINESS BUSINESS PROCESS ANALYSIS PROCESS OF ANALYSIS THE EXPORT OF THE OF EXPORT CEREAL OF CEREAL PRODUCT PRODUCT FROM KAZAKHSTAN FROM KAZAKHSTAN TO AZERBAIJAN TO AZERBAIJAN Supervision of loading Схема бизнес-процесса 2.6. ЗАГРУЗКА ВАГОНА, ТАМОЖЕННОЕ ДЕКЛАРИРОВАНИЕ И ОЧИСТКА Stakeholders: Exporter Kazakhstan Railways Owner of rail cars Plant quarantine inspector Kazakhstan customs Load of cereals Check weight of goods, completion of documents, seal of wagon, put information to OSGD consignment note OSGD consignment note Check shipping and loading documents No acceptable Accept of goods by stamping shipping documents Shipping documents Withdrawal of funds from bank account Withdrawal of wagon for train composition acceptable Dispatch of wagon with notification to railways administration Check shipping and loading documents No acceptable acceptable «Exit allowed» stamp Notification to Russian customs authorities Consists of 24 steps Average time required: 1-2 days Cost: 495$ per car (60 т) Output and criteria to exit the business process: Exporter (consigner) dispatched goods by railway transport Exporter holds original set of stamped shipping and customs documents Regulation: 9 regulatory documents

10 BUSINESS PROCESS ANALYSIS OF THE EXPORT OF CEREAL Day 36 DAYS TIME-PROCEDURE CHART FOR EXPORT CEREAL PRODUCT FROM KAZAKHSTAN TO AZERBAIJAN 13,00 1,00 2, Processes Kazakhstan - Processes in Azerbaijan ,00 1,50 1, ,50 1,25 4,50 3,50 10,00 Procedure Conclude sales contract and trade terms 3.1. Establish payment guarantee 2.1. Obtain a permission to import 2.2. Obtain a phyto-sanitary certificate 2.3.Confirmation of supply grain to the state resources 2.4.Obtain a certificate of conformity 2.5. Arrange transport 2.6.Loading of rail car and custom declaration and clearance 2.7. Border crossing of Russia and transportation 2.8. Border crossing of Azerbaijan 2.9. Unloading and Custom declaration 3.2. Claim payment for goods

11 BUSINESS PROCESS ANALYSIS OF THE EXPORT OF CEREAL COST-PROCEDURE CHART FOR EXPORT CEREAL PRODUCT FROM KAZAKHSTAN TO AZERBAIJAN Cost, $ $ Processes Kazakhstan - Processes in Azerbaijan Procedure Conclude sales contract and trade terms 3.1. Establish payment guarantee 2.1. Obtain a permission to import 2.2. Obtain a phyto-sanitary certificate 2.3.Confirmation of supply grain to the state resources 2.4.Obtain a certificate of conformity 2.5. Arrange transport 2.6.Loading of rail car and custom declaration and clearance 2.7. Border crossing of Russia and transportation 2.8. Border crossing of Azerbaijan 2.9. Unloading and Custom declaration 3.2. Claim payment for goods

12 Shipment BUSINESS PROCESS ANALYSIS OF THE EXPORT OF CEREAL РЕКОМЕНДАЦИИ ПО ОПТИМИЗАЦИИ ТОРГОВЫХ ПРОЦЕССОВ области бизнес-процесс рекомендации результат Buy 1.1. Conclude sales contract To sign a contract with the use of electronic signature by reduce the time to 2-3 days EDS) 2.1. Obtain Import Permit reduce the time to 1-1,5 days exclude 2.2. Obtain Phyto-sanitary Certificate Improvement of the legislation of Azerbaijan on the reduce the time recognition of Kazakhstan certificates, now reissued them at the border 2.4. Obtain Certificate of Conformity 2.5. Arrange transportation 2.6. Loading of rail car, custom declaration reduce the time to 1-1,5 days application and conclusion contract On-line with EDS the development of a unified software and regulations for use its for payment and receive results (certificate) through Internet. changing the timing of application (transportation planning) finalize legislation to clarify the requirements optimization of the use of cars the use of electronic transport documents and electronic declaration with EDS reduce the time to days reduce cost reduce the time to 0,5 day 2.7: Crossing of Russian Border development software for exchange electronic transfer sheets between railways reduce the time up to 5 hours Pay 2.8: Crossing of Azerbaijan Border 2.9: Unloading and Custom declaration formalities 3.1. Establish payment guarantee development software for exchange electronic transfer sheets between railways Electronic exchange of information between customs exclude VAT optimizing the cost of banking services reduce the time up to 5 hours reduce cost reduce cost

13 BUSINESS PROCESS ANALYSIS OF THE EXPORT OF CEREAL SUMMARY Implementation of measures on optimization of trading processes will REDUCE: delivery time up to 20 days to estimate the cost reductions necessary to analyze the tariff policy OPTIMIZATION OF TRADING PROCESSES WILL REDUCE: COST CEREAL PRODUCT AND DELIVERY TIME