A Case of Thailand National Single Window Vision 2021*

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1 How to better interface/integrate transport/logistics-related processes to Single Window? A Case of Thailand National Single Window Vision 2021* EGM on Integrated Use of SWs for Trade Facilitation UNCC, Bangkok 8 th September 2015 Somnuk Keretho, PhD Institute for IT Innovation Kasetsart University, Bangkok *This study was commissioned by National Economic and Social Development Board (NESDB) of Thailand but any views or opinions presented in this are solely those of the author.

2 1. Integrating Trade Facilitation within the National Development Plan - Thailand Logistics Development Strategy - Phase 2 ( )* - 3 Mission 7 Strategic Agenda 1. Enhance supply chain management capability 2. Promote trading and supporting services along national border cities 3. Develop logistics 3. facilities Develop & networking logistics services & along strategic network corridors facilities along strategic corridors 4. Improve trade facilitation system 5. Improve capabilities of LSPs & their networks 6. Improve human resource development system 7. Develop monitoring system for self improvement *To gain the holistic and institutionalized mandate from the highest authority. LSPs = Logistics Service Providers Ref: NESDB (2013), (note this is not an official Keretho, PhD 2

3 Manifest 2. Better integrating/coordinating among B2B freight stakeholders and also among government agencies are needed to further improve trade facilitation. Import House Manifest Discharged Delivery Order - Example: Sea Cargo Import Process - Hauler Details Customs Declaration Scan/Exam Clearance Release Clearance: Customs clearance Scan/Exam: With collaboration with related agencies, the hauler takes the container for scan/exam accordingly. Customs Declaration: Customs Broker submits e-declaration and also pay duty online. Hauler Details: Assign hauler(s) Gate Out Delivery Order: FF pays for the sea freight, and Shipping line issues e-d/o. Sea PCS Gate Out: The container is out from the gate. Release: TMO updates release status. Discharged: TMO discharges containers House Manifest: FF submits e0house Manifest to Customs Manifest: Shipping line submits e-manifest to Customs DATA EXCHANGE, NOTIFICATIONS & ALERTS are generated at each stage and accessible by respective stakeholders. 3

4 3. Not only import and export processes, but also transit, transshipment and multi-model transport processes and barriers must be particularly analyzed and improved, since there are tremendous benefits for improving trade and transport competitiveness of the country and the region. There are several legal issues that delay the transit, transshipment and multimodel transport operations, e.g. complicated paper documents, and difficulty in tracking the status of transit shipments. The integration of Sea PCS, Air PCS, Cargo and Land-Transport SW will tremendously enhance transit, transshipment and multi-modal transport significantly. For the case of Thailand next gen NSW, the ROI is about 30 folds in the next 5 years. Recommendation to add into the UNESCAP study about regional/sub-regional negotiation/agreements related to transport facilitation and related issues, e.g. ASEAN Framework Agreement on Facilitation of Goods in Transit ASEAN Framework Agreement on Multimodal Transport ASEAN Framework Agreement of Inter-State Transport Keretho, PhD 4

5 How legal and technical infrastructure can enable cross-border transit/trade process electronically and paperlessly? - Example: a proposed to-be process according to the ASEAN Transit Agreement -. 5

6 Business Stakeholders 4. Integrating trade/transport/regulation/payment coordinated services within the same SW governance as much as politically possible. National ITMX 36 government and regulatory agencies Importers Exporters A NSW Operator & Governance Freight Forwarders Haulers GHA/TMO* Customs Brokers s Airline/ Vessels *GHA: Ground Handling Agent **TMO: Terminal Operator B2B & B2G coordination, cargo visibility, single window data entry and reuse Air PCS Sea PCS Air SW *** Maritime SW Trade & Cargo SW Land Transport SW Train SW A proposal for Thailand next generation NSW G2G coordination and information Keretho, PhD 6

7 Business Stakeholders Current Architecture of Thailand NSW Environment - More layers of operators tend to create more business and technical complications for any further development. - Gateway Providers (Tradesiam, Netbay, CAT EDI) Shipping Line Airline GHA/ TMO* Importer Exporter Freight Forwarder Customs Broker *GHA: Ground Handling Agent **TMO: Terminal Operator 1. Business Stakeholders vas vas vas vas Value-Added Service (VAS) for paperless Customs Declaration and E-Manifest Submission 2.VAS B2G information exchange 3.Gateways Maritime SW** National ITMX Cargo SW* G2G NSW For Customs duty online payment Air SW** 4.NSW Operator G2G information exchange of permits and certificates 36 government and regulatory agencies 5.Government Agencies ** Only partially regulatory SW services Keretho, PhD 35 websites (windows) for submitting e-application Forms. Importer, Exporter, ผ ประกอบ ธ รก จ Shipping Line Airline 7

8 5. Business & Operation Model, one of the most important critical success factors for sustaining SW, but seems to be underrated and afterthought among many policy decision makers. What are the key issues, criteria and options that should be analyzed, and then finalized by the high-level decision makers (and institutionalized by laws), e.g. Governance structure, e.g. policy decision making structure Inter-agency Collaborative Platform Investment and Operating Models for the NSW Operator, e.g. public 100%, PPP, or private 100% What are the Return-on-Investment (ROI), other benefits, and risks, e.g. measurable expected output, outcome, impacts Pricing Models, e.g. free services or with fee, if charged what are the pricing options, how to regulate the price, Service Level Agreements & Dispute Resolution Keretho, PhD 8

9 Thank You EGM on Integrated Use of SWs for Trade Facilitation UNCC, Bangkok 8 th September 2015 Somnuk Keretho, PhD Institute for IT Innovation Kasetsart University, Bangkok *This study was commissioned by National Economic and Social Development Board (NESDB) of Thailand but any views or opinions presented in this are solely those of the author.