Implementation of National Single Window & Paperless Trade among GTI Countries

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1 Implementation of National Single Window & Paperless Trade among GTI Countries Sang-min LEE (JESSICA) KOREA CUSTOMS SERVICE

2 Contents 1. National Single Window of KCS - Backgrounds of Single window - Developing progress - Data processing flow chart - The effects of Single Window 2. P/L Trade among GTI countries - All about EODES of KOREA CHINA 3. Summary 4. Q & A

3 Backgrounds Needs Recommendations Expediting the movement, release and clearance of goods, including goods in transit (Doha Declaration) Lowering trade transaction Creating standard efficiencies

4 ü Legal requirements of all trade transactions One-time electronic submission through one system F e

u Customs e Customs Knowledge Mgt System Auto EDI Clearance System Simple Online Service Developmentstage Investigation info.(1999) Passenger info.

6 u Customs e Customs Knowledge Mgt System Auto EDI Clearance System Simple Online Service Developmentstage Investigation info.(1999) Passenger info. (2000) Customs Knowledge M (2001) CDW (2002) Air cargo clearance system EDI clearance Establishing u-customs plan (2006) Information management system Internet clearance portal Ubiquitous clearance service Internet declaration system( 04~5) Internet Clearance portal ( 05) Risk Management System ( 05) Single Window ( 06 ~ ) Basic plan for EDI Clearance automation (1991) Export clearance (1994) Import clearance (1996) Export cargo (1997) Import cargo (1997) Duty drawback (1997) year

7 Accepting the application Review/ Close Examination Korea Food and Drug Administration OGA 1 3 Approval Internet Issue the approval documents National Veterinary Research & Quarantine Service Diagnosis of Problems Korea Medical Devices Industry Association EDI Applicant Apply for Import-requirement Assessment Courier 2 Notifying the results of the application 4 Import Declaration Notifying the results of import declaration Internet Internet Clearance Portal Receiving the application Review/ Inspection Acceptance of the import declaration Issue the certificate Customs administration System Applications for import-requirement assessment and import declaration are separately managed After applying for the import-requirement assessment, the applicant should report the same items for import declaration. In applying for the import-requirement assessment, methods/systems of application differ by agency. EDI Korea Customs Service

8 Korea Customs Service Single Window OGA SLOW, COSTLY, COMPLICATED, UNPREDICTATBLE, INEFFICIENT

9 OGA Documents Remarks The Korea Food & Drug Administration (KFDA) National Fisheries Products Quality Inspection Service(NFIS) Import declaration of food products & etc. Import approval application form Export approval application form Raw material import approval application form Raw material export approval application form Import declaration of food products & etc. Quarantine application for fisheries products import/export Import Import Export Import Export Import Import/Export The National Plant Quarantine Service (NPQS) National Veterinary Research & Quarantine Service(NVRQS)... Inspection application for import plant Inspection application for export plant Import declaration for livestock item Quarantine application for imported livestock item Application of transport of quarantined imports Quarantine application for exported livestock item Quarantine application for exported animal Import Export Import Import Import Export Export 38 Agencies and 55 Documents in 19 relative laws are available with one single ID

Declarant Applicant Simplification Standardization Preparing for declaration 1 - Import Declaration 4

feeding-in common items Circulation of electronic Documents Apply for import requirement assessment

Service Electric documents SWIFT, COSTLESS, 2 SIMPLE, Electric documents Results of Approval

documents Customs Administration System Receipt Review/Inspection Acceptance of import declaration

10 Declarant Applicant Simplification Standardization Preparing for declaration 1 - Import Declaration 4 Internet Results of Clearance Single Window Input into more standardized/simplified forms Convenient feeding-in common items Circulation of electronic Documents Apply for import requirement assessment Korea Food & Drug Administration 수입신고결과통보 PREDICTABLE, National Veterinary Research & Quarantine Service Electric documents SWIFT, COSTLESS, 2 SIMPLE, Electric documents Results of Approval COMPETITIVE Results of Approval 3 Results of Clearance Korea Customs Service Single Window Electric documents Customs Administration System Receipt Review/Inspection Acceptance of import declaration Agencies Assessing Import Requirements Korea Medical Devices Industry Association Receipt Review/ Close Inspection Approval

11 Time saving cutting clearance time by 1day Before Application for import-requirement assessment Approval of the application (day) 2 ~ 3 day Approval of import-requirement application Import declaration (day) 1 day 1:30 Import declaration Acceptance (Hours) After 2 ~ 3 day 0 1:30 0 Logistic cost saving 80,000 Amount(Tousand US$) 60,000 40,000 20,000 72,016 56,287 58,129 52,253 46,946 35,482 35,035 37,

12 1. Better Service 2. Low cost 3. Higher work efficiency 4. Stronger competitiveness

13 Since KOREA CHINA FTA

14 IMPORT TOP 5 EXPOER TOP 5 100,000, ,000,000 90,000, ,000,000 80,000,000 70,000, ,000,000 60,000,000 80,000,000 50,000,000 40,000,000 60,000,000 30,000,000 40,000,000 20,000,000 10,000,000 20,000,000 0 CHINA JAPAN USA GERMANY TAIWAN 0 CHINA USA HONG KONG VIETNAM JAPAN <2016, THOUSAND, USD>

15 FTA UTILIZATION RATES (2016, accumulate) EXPORT IMPORT INDO INDO ASEAN ASEAN EFTA EFTA NEW ZEALAND NEW ZEALAND CHINA CHINA 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0%

16 100% Certificate of Origin review Heavy workload per person Delay of clearance

17 Cost of waiting for issuing C/O Tariff Reduction

18 Expedited clearance Decrease in tax revenue due to counterfeit C / O Reduce logistics costs Distrust of a company (private)

19 E O D E S lectronic rigin ata xchange ystem Issued by the exporting country Certificate of Origin (C / O) Electronically Inter-country exchange system

20 CHINA KOREA EXPORTER Customs Authorities Customs Authorities NO need to submit the Original C/O 1 Application for C / O Issuance 2 Issuing C/O EXPORTER 3 C / O data transmission 4 C / O data transmission 5 Reply to FTA Preferences IMPORTER Send Original C/O

21 }

22 1. Reduce logistics costs 2. Simplify c/o review 3. C/O Anti-counterfeiting

23 1. Single Window is beneficial both for Customs and Traders Customs : Reduction of customs clearance time while ensuring security Business : Cost-saving by reducing customs clearance Time 2. Data Exchange(P/ L) will contribute to realizing the Global S/W, which can contribute to prevention of undue obstacle in the logistical chain and reduction of logistics cost

24 Sang-min LEE (JESSICA) KOREA CUSTOMS SERVICE

마스터제목스타일편집. Chang-yeop LEE. Korea Customs Service

마스터제목스타일편집. Chang-yeop LEE. Korea Customs Service 마스터제목스타일편집 Chang-yeop LEE Korea Customs Service Ⅰ Trade Facilitation & TRS Ⅱ TRS Best Practice of Korea Ⅰ Trade Facilitation & TRS Trade Facilitation Expediting the movement, release and clearance of goods,