ASEAN Single Window Creating a tool for the public and private sectors.

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1 ASEAN Single Window Creating a tool for the public and private sectors. Greg Leon Regional Program Manager USAID Regional Development Mission for Asia Bangkok, Thailand

2 Single Window The Basics A system that allows traders to lodge information with a single body to fulfill all import- or export-related regulatory requirements. UN Health/Pharma 2of 24

3 Benefits of a Single Window-One Stop Shop Efficiency Time, Cost, Resource Data Revenue Forecasting and other metrics Error reduction Risk Management/Analysis Transparency/Governance/Predictability 3of 24

4 ASEAN Economic Community (AEC) Illustrative Production Examples 4of 24

5 ASEAN production network (illustrative) 5of 24

6 Intra-ASEAN Trade 6of 24

7 What is the ASEAN Single Window? Definition (summarized): ASW is the environment where National Single Windows of Member States operate and integrate NSWs involve single submission, simultaneous processing, and decision making through a single channel of import, export, and transit requirements Practically speaking: A NSW of a Member State is ideally a single web portal that acts as a trade information repository and cargo clearance center for the trading community ASW is the architecture that allows AMS NSWs to share data in advance of cargo arrival so as to expedite cargo clearance and make trade more predictable for traders 7of 24

8 ASEAN Single Window Conceptual Model Singapore Thailand Vietnam Lower business cost Scalability & Performance Security NSW Layer NSW Layer NSW Layer Seamless interfacing Predictability NSW Transformation & Interfacing Tools NSW Transformation & Interfacing Tools NSW Data Transformation Harmonization & Interfacing Tools Tools Regional integration ASW Gateway ASW Gateway ASW Gateway Cambodia Myanmar NSW Layer NSW Layer NSW Transformation & Interfacing Tools NSW Transformation & Interfacing Tools ASW Gateway ASW Gateway ASEAN agreed cross border documents ASW Layer ATIGA Agreed Data Set ASW Legal Framework Agreement ASW Gateway ASW Gateway ASW Gateway ASW Gateway ASW Gateway NSW Transformation & Interfacing Tools NSW Transformation & Interfacing Tools NSW Layer NSW Layer Brunei Lao PDR Banking & Financial NSW Transformation & Interfacing Tools NSW Transformation & Interfacing Tools NSW Transformation & Interfacing Tools Economic Operators Service Providers NSW Layer NSW Layer NSW Layer Regulatory Agencies Customs Traders, Transport Indonesia Philippines Malaysia 8of 24

9 ASEAN Single Window Rationale Expedite cargo clearance through the electronic exchange of data between Member States NSWs Requires: Functioning NSWs Data standardization and harmonization Legal framework Re-usability of data Risk management Importantly: ASW-NSW integration for wise use of ICT to eliminate double encoding (reusability) and support decision making and exception management 9of 24

10 TIME & COSTS TO EXPORT & IMPORT ASEAN MEMBER STATES Time for Export Cost to Export Time for Import Cost to Import (in days) (US$ per container) (in days) (US$ per container) Brunei na na na na Cambodia Indonesia Laos ,420 1,860 1, ,690 2,040 2,035 Malaysia Philippines Singapore Thailand , Vietnam Average - ASEAN Average - OECD ,024 1, ,086 1,085 Note: Data for Burma not available 10 of 24

11 WB Doing Business Time to Import ASEAN Member States Time to Import (days) Document Preparation Customs Clearance Port Handling Inland Handling Trading Across Borders ( Rank) Brunei Darussalam Cambodia Indonesia Lao PDR Malaysia Philippines Singapore Thailand Vietnam Average Note: Data for Burma not available 11 of 24

12 ASW Architecture Overview 12 of 24

13 ASW Areas of Progress Technical Areas ASW Pilot Project Seven AMS (all but Cambodia, Lao PDR, and Burma) Technical architecture to exchange data is designed and agreed Initial findings publically delivered at the Asia-Pacific Trade Facilitation Forum Software applications developed to exchange ASEAN Customs Declaration Document and certificate of origin (ATIGA Form D) ASEAN Data Model developed as a working document to harmonize data elements among AMS Capacity building (business process, data harmonization) Cross-border Business Process Analysis 13 of 24

14 ASW Areas of Progress (continued) Legal Areas MOU for the ASW Pilot signed: basic legal framework ASW Legal Framework Agreement: draft 2012/final 2013 Legal capacity building Legal gap analyses (Laos, Vietnam, Philippines) NSW Support Area Vietnam NSW awareness, master plan development, legal Lao PDR awareness, roadmap development, legal Indonesia training of trainers on software application Trade security: NSW survey of capabilities completed, tailored support to interested AMS underway 14 of 24

15 ASW Areas of Progress (continued) Private Sector Outreach Oracle/USABC MOU: Oracle research; USABC Survey ASW private sector consultations work program: includes Innovation workshop, news, case studies, etc. Private Sector-ASEAN: private sector consultations Institutional Areas Private sector consultations (work program endorsed after over a year of discussion) Five year planning (TWG 5-year work program endorsed; LWG 5-year program under discussion; ASW 2012 workplan is ASEAN workplan not project workplan) ASW sustainability: findings under review/analysis 15 of 24

16 ASW Value Proposition (Informal) Roundtables Objectives were to obtain private sector input/feedback on: Data to be exchanged in the ASW network architecture ASW/NSW integration to maximize value of both ASW & NSWs Other possible uses for ASW architecture Five roundtables held: Indonesia Priority Importers (APJP) US-ASEAN Business Council Singapore Business Federation Thai International Freight Forwarders Association Trade Facilitation Action Council (Malaysia) 16 of 24

17 General Feedback Very supportive of ASW Benefits cited include: Expedited clearance, especially pre-arrival Reduction of paperwork Reduction of cost (less inventory to carry, more predictability of trade, less corruption, etc.) Easier supply-chain integration in ASEAN Smaller ports can be better served 17 of 24

18 Regulatory Data Exchange in ASW Electronic exchange of regulatory data between government agencies is essential (e.g. CO, export declaration, phytosanitary certificates, licenses, etc.) Helpful to both traders (expedite clearance) and governments (reduce fraud) Traders would need to know which exchanges are taking place so they can track who was notified of what and when Electronic exchange would help reduce corruption and uncertainty With electronic exchange there will be an electronic record of when data was sent and to whom, which would prevent officials from claiming that a document was never received 18 of 24

19 Commercial/Transport Data Exchange in ASW Large MNCs tend to have their own intra-enterprise communication systems for exchanging commercial information (e.g. invoice, purchase order) and freight papers (e.g. B/L, AWB). However, Major break-bulk cargo trader in region/world said that traders in such commodities (e.g. corn, steel, coal, etc.) do not have access to such mechanisms and for them ASW would be critical; willing to pay fees for such service to reduce amount of paperwork and time Major express courier with own internal system for exchanging data said ASW will bring further efficiency, cut down on paperwork, reduce data entry and interface with its back-end modules Smaller traders would feel large impact from ASW (and NSW) 19 of 24

20 Commercial/Transport Data Exchange in ASW (continued) However (continued) Large traders who use their own intra-enterprise systems are also interested in convergence of data from their systems with G2G exchanges through ASW to enable: Better track-and-trace capabilities Data analysis Faster clearance Seamless interface (B2G) Necessity of a dashboard for traders and a unique transaction reference number that allows traders to track all regulatory and commercial/transport data using one number 20 of 24

21 Private Sector Concerns NSW implementation Data harmonization freight forwarders, in particular, thought DH would be a major challenge for commercial and transport data Legal framework for NSW/ASW concern that paperless trade is still far from reality Will ASW/NSW integration help traders to track-and-trace cargo? Funding for ASW and ASW business model who will shoulder the costs and how will ASW be managed? ASW timeframe Concern about amount of data required 21 of 24

22 Private Sector Concerns Need to outline ASW value proposition for each stakeholder; e.g. will carriers benefit and how? Will regulatory agencies honor AMS NSW/ASW commitments (including concern over officials integrity)? Also, regulatory constraints and inconsistent implementation of rules OVERALL MESSAGE from Private Sector: ASW is essential and may be missing link to AMS NSWs Challenges remain requiring the dedication of resources (time/money) But it is also inevitable 22 of 24

23 Additional Considerations Transparency: role for sustainable trade repositories ASEAN Harmonized Tariff Nomenclature: keeping up with HS Risk Analysis: the flip side of the trade facilitation coin Donor Coordination: shared interests and shared problem pure customs focus in programming Multi-agency/ministry approach is the next frontier - Bottle-necks: permits, coordinating inspection, information sharing, multi-agency risk management, building electronic efficiencies, etc. - Leadership needed: Customs and finance ministries must recognize and help facilitate a multi-agency approach. A customs only focus will yield limited results. Donor coordination as trade facilitation catalyst 23 of 24

24 Thank You 24 of 24

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