ELECTRONIC TRACEABILITY AND PAPERLESS TRADE FACILITATION

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Calvin Cummings
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1 The Automa+on of Philippine Agri- Import Processes: ELECTRONIC TRACEABILITY AND PAPERLESS TRADE FACILITATION Francis Norman Lopez InterCommerce 1

2 Agenda Introduc/on: Supply Chain and Traceability Automa/ng Agri Import Processes in the Philippines Key Take Away

Vietnam TraceVerified for Fish Exports New Zealand ecert for Meat Products Case Studies US ITDS GS1 China ecert,

3 Typical AgriFood Supply Chain* Collabora6on in Trade Iden/fiers: AEOs, Product Codes Compliance to import requirements Visibility across the Supply Chain Case Studies India GrapeNet Malaysia Food and Traceability Vietnam TraceVerified for Fish Exports New Zealand ecert for Meat Products Case Studies US ITDS GS1 China ecert, GPS and RFID * Informa/on Management in AgriFood Chain: Towards an Integrated Paperless Framework for AgriFood Trade Facilita/on

4 Case Studies Export India GrapeNet Malaysia Food and Traceability Vietnam TraceVerified for Fish Exports New Zealand ecert for Meat Products Import China Tianjin ecert, GPS- RFID US ITDS Key Success Factors Iden/fica/on of source and products Specific tes/ng procedures Export- Import collabora/on to ensure Cer/fica/on for compliance to import regulatory requirements Accessibility of data for transparency, monitoring and reports Government support, possibly with funding, for sustainability Tangible benefits to government and the private sector Cost effec/ve technical solu/on

5 PH Agri Trade System: Background From 2002 to 2008, the Department of Agriculture (DA) had several a]empts to automate their processes; Execu/ve Order no. 482 dated 27 December 2005, crea/ng the Na/onal Single Window Task Force In 2007, ini/al implementa/on of the PNSW using the Licensing and Clearance System of ASYCUDA In 2008, the DA issued direc/ve harmonizing the import procedures of 3 agencies i.e. the Bureau of Animal Industry (BAI), the Bureau of Fisheries and Aqua/c Resources (BFAR) and the Bureau of Plant Industry (BPI) The Proposal BIMP- EAGA Pilot electronic Cross Border Informa+on Project led to the proposal to automate the SPS Import Clearance Precedures for the 3 DA Agencies In 2009, Pilot Implementa/on of the SPS Import Clearance In 2010, mandatory implementa/on of SPS Import Clearance and subsequently followed by the MAV/MAV Import Cer/ficate, Request for Inspec/on (1 st Border) and Veterinary Quaran/ne, Meat Inspec/on and Laboratory Cer/ficate

6 PH Agri Import Procedures before 2010 Centralized manual processes done at Head Offices, in Metro Manila Accredita/on/registra/on of importers and cold storage warehouse Submission of applica/on, processing and approval of SPS Import Clearance (SPS/IC) Minimum Access Volume (MAV) alloca/on and issuance of MAV Import Cer/ficate Request for transfer of delivery of imported meat products to another cold storage warehouse Manually accomplished (hand wri]en) Request for Inspec/on and issuance of the Veterinary Quaran/ne, Meat Inspec/on and Laboratory Cer/ficate and Inspec/on Report (including verifica/on of SPS Cerificates and other import documents) Consider 3,400 importers of agri products, average 500 import shipments daily in 57 interna/onal ports, with 200 cold storage warehouses

Challenges in Manual Processes Qualifying importers, suppliers and exporters for

Document submission, verifica/on, authen/ca/on and storage 1.

Import Declara/on 8. Port Quaran/ne Inspec/on Report/VQMILC 9.

Monitoring transport and cargo handling Traceability from source to consumer

7 Challenges in Manual Processes Qualifying importers, suppliers and exporters for accredita/on and registra/on Iden/fica/on and classifica/on of commodi/es, products Document submission, verifica/on, authen/ca/on and storage 1. Cer/ficate of Product Registra/on 2. SPS Import Clearance 3. MAV Alloca/on and Import Cer/ficate 4. SPS Cer/ficates eg Health and Phyto Cer/ficates 5. Commercial Invoice 6. AWB/BL 7. Import Declara/on 8. Port Quaran/ne Inspec/on Report/VQMILC 9. Cer/ficate of Meat Inspec/on Collec/on/payment of fees and issuance of receipts Monitoring transport and cargo handling Traceability from source to consumer Profiling and Risk Management Genera/ng /mely and accurate sta/s/cs Regional Ofcs Dept of Agriculture BAI BFAR BPI Quaran/ne Ofc at Ports Regional Ofcs Quaran/ne Ofc at Ports Regional Ofcs Quaran/ne Ofc at Ports

8 Regulated Commodi/es, Products Bureau of Animal Industry (BAI) Live Animals, for breeding and as pets Animal Product and By- Products, eg. Beef, Port, Chicken and other Meat Products Feed and Feed ingredients, Supplements Veterinary Drugs, Addi/ves, Supplements Bureau of Plant Industry (BPI) Plant, including ornamentals Plant Products eg flowers, grains, fruits and vegetables Plan/ng Materials Na6onal Meat Inspec6on Service Meat and Meat Products Bureau of Fisheries and Aqua6c Resources (BFAR) Live Fish Fresh/Frozen Products

Customs and Quaran/ne Clearance Invoice, Packing List Start

Electronic Submission BAI Review, Payment, Processing &

Examine Lodge VASP Quaran6ne Inspec6on SPS Import Clearance

Declara/on SAD Commercial Invoice Packing List Bill of

9 Customs and Quaran/ne Clearance Invoice, Packing List Start Pre-Alert AWB/BL SPS AWB/BL SAD RFI Online Prepara6on Electronic Submission BAI Review, Payment, Processing & Approval Prin6ng of Approved SPS Import Clearance NSW PASS5 Examine Lodge VASP Quaran6ne Inspec6on SPS Import Clearance MAV Import Cer/ficate SPS/Phyto Cer/ficate Import Entry Declara/on SAD Commercial Invoice Packing List Bill of Lading/AWB Manual Assess Auto Assess AAB FAN OLRS End VQMILC NMIS Meat Inspec6on

Processes on the Import of Agri Products

Declara6on erfi Quarantine Inspection VQMILC

Permit DA (CSW), BAI, NMIS MAV, BOC BAI,

BAI, BFAR, BPI BAI BFAR, BPI NMIS NMIS, BAI

10 Processes on the Import of Agri Products PNSW DOF, NEDA, BAI Accredita6on SPS Import Clearance MAV Import Cer6ficate E-SPS Certificate From Origin TEC Import Entry Declara6on erfi Quarantine Inspection VQMILC Meat Inspection VQMILC COMI Local Transfer Permit DA (CSW), BAI, NMIS MAV, BOC BAI, BFAR, BPI DA MAV OGA (Origin) AU DAFF BOC BAI, BFAR, BPI BAI BFAR, BPI NMIS NMIS, BAI NZ MPI, KR QIA, ASW Agriculture Trade System IOIS, Data Pipeline

11 Import Processes and Traceability Primary Producer Source Supplier Products Quan/ty Importer CSW ProForma Invoice Permit Apln SPS IC No, Validity Import Req PO Comfirmattion Exporter, Products SPS Cer/fica/on AgriFood Supply Chain SPS Certification Shipper, Consignee, Meat Est No., Shipping Data (AWB/BL)), Invoice Data Products/HSCode SPS Ref No Transport, Customs Data Port Quaran/ne Inspec/on Report Quarantine Inspection SPS IC SPS Cert RFI VQMILC Meat Inspec/on, Laboratory Cer/fica/on Delivery COMI LTP Agriculture Trade System IOIS, Data Pipeline Retail Meat Cer/fica/on, Products Des/na/on

12 Challenges in SPS Exchange WTO SPS Agreement Enabling Developing Countries Legal framework : Cross border, Na/onal and at Agency Level Online access and Messaging (EDI/XML, SOAP, FTPs) Receipt/Issuance of e- SPS Cer/ficate Standards in e- SPS UN CEFACT E- CERT IPPC E- PHYTO Benefi/ng from the e- SPS Exchange Authen/ca/ng SPS Cer/ficate Compliance to import regula/ons Facilitate Replacement of non- compliant SPS Cer/ficate

13 E- SPS Exchange Issuance and transmission of SPS Cer/ficates Receipt of SPS Cer/ficate and ensuring compliance to import quaran/ne requirements NZ BAI Access to DAFF SPS ecert BAI AU SP BFAR AU DAFF in 2007 KR BPI DA Trade System 2014

Status/Change Request SPS Import Clearance/ Permit Exporter 1 SPS

14 E- SPS Exchange Model* Exporting Country Importing Country NPPO/QIA 2 SPS Certificate NPPO/QIA SPS Certificate 4 SPS Status/Change Request SPS Import Clearance/ Permit Exporter 1 SPS Import Clearance/Permit Importer 3 SPS Notice * Pan Asian ecommerce Alliance Model

Collabora/ve Model Seller Buyer Quaran6ne Clearance Common Vision

regulatory requirements Transparency of requirements Trustworthy

Transport/Logis/cs Requisites Data harmoniza/on, synchroniza/on

15 Collabora/ve Model Seller Buyer Quaran6ne Clearance Common Vision and Objec6ves Safe food to consumers Compliance to import regulatory requirements Transparency of requirements Trustworthy Cer/fica/on Cost reduc/on Export QIA/NPPO S W A T Customs Clearance Transport/Logis/cs Requisites Data harmoniza/on, synchroniza/on Import QIA/NPPO S W A T Interoperable systems for exchange of SPS and other trade data

16 Key Take Away Vision and commitment from top management Support from champions on the ground Public- Private partnership or collabora/on Leverage on available resources local and global Work at speed for ini/al success then move to the next

17 Role of IT Service Provider Think outside the box Bridge processes across silos Introduce interoperability of systems Adopt global best prac/ces Manage change Sustainability.. funding if necessary

18 Q & A

UNNExT Workshop on Electronic Exchange of SPS Certificates for Better Trade Control and Facilitation October 2015 Wuhan, China

UNNExT Workshop on Electronic Exchange of SPS Certificates for Better Trade Control and Facilitation 21-22 October 2015 Wuhan, China The Automation of Philippine Agri-Trade Processes: E- SPS EXCHANGE :