Transport and Logistics in the GMS. Which paperless system for SMEs. Cambodian perspective

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SMEs Bangkok - 23 September 2014 Christine SOUTIF Transport and Logistics

1 Transport and Logistics in the GMS Which paperless system for SMEs Cambodian perspective UNNExT Advisory Group Meeting on Paperless Trade Facilitation for SMEs Bangkok - 23 September 2014 Christine SOUTIF Transport and Logistics Consultant Cambodian Freight Forwarder Association (CAMFFA) Adviser chrissoutif@gmail.com

Cambodia Freight Forwarding Industry About 300 Freight Forwarders and Customs brokers operate today in Cambodia, mostly locally owned 50 Freight Forwarders are members of CAMFFA (Cambodia Freight

2 Cambodia Freight Forwarding Industry About 300 Freight Forwarders and Customs brokers operate today in Cambodia, mostly locally owned 50 Freight Forwarders are members of CAMFFA (Cambodia Freight Forwarder Association, member of FIATA) The sector has developed rapidly but limited domestic service suppliers offer a comprehensive range of logistics services The market is dominated by a limited number of multi-national companies appointed by garment buyers

Cambodia Cross Border transport chain Neak Leung

Multimodal Operations Bangkok Phnom Penh Ho Chi

Bai Distance 250 km 398 km 60 km 105 km 80 km

3 Cambodia Cross Border transport chain Neak Leung Bridge Under Construction Mekong River (Ferry) Multimodal Operations Bangkok Phnom Penh Ho Chi Minh Aranyaprathet (Thailand) Poipet Bavet Moc Bai Distance 250 km 398 km 60 km 105 km 80 km Hour 4 hours 10 hours 2 hours 3 hours 2.5 hours No. of Lanes (way) 2-3 Lanes 1-2 Lanes 2 Lanes 1 Lane 2-3 Lanes 30 cars 10 cars 500 cars (in practice 150 cars)

An e-solution should enable SMEs to: Obtain informations on legislations applicable (trade portal) Track & Trace online in real time (port/airport arrival times, e- seal ) Apply and

4 An e-solution should enable SMEs to: Obtain informations on legislations applicable (trade portal) Track & Trace online in real time (port/airport arrival times, e- seal ) Apply and obtain Import or Export licenses / authorizations Process remotely administrative procedures such as customs (incl. transit), health, safety and security Process payments Exchange documents

from point of origin to point of consumption. The right thing, at the right place, at the right time.

5 An e-solution for all parties in the supply chain Logistics is the process of planning, implementing, and controlling the efficient, effective flow and storage of goods, services, and related information from point of origin to point of consumption. The right thing, at the right place, at the right time. Suppliers Buyer Logistics providers Customs brokers Transport operators Banks Authorities Ports Airports

A first step to paperless: ASYCUDA World system Since May 2008 21 Customs checkpoints 93% of total import and export SAD, 75% of total trade value -20% of

Index (LPI) rose from 129 in 2010 to 83 in 2014 Next steps 10 more checkpoints (incl.

6 A first step to paperless: ASYCUDA World system Since May Customs checkpoints 93% of total import and export SAD, 75% of total trade value -20% of import & export physical inspections 90% of SAD lodged are cleared within 1 day (based on TRS) Cambodia s ranking in the World Bank s Logistics Performance Index (LPI) rose from 129 in 2010 to 83 in 2014 Next steps 10 more checkpoints (incl. SEZ) Improve functional modules Direct Trader Input module deployment Develop web-based apps (incl. mobile) to follow SAD status Activate Transit module Implement E-payment module Improve Manifest & Warehousing management functions

7 National Single Window (NSW) A preparatory phase Next steps The NSW preparatory project launched in October 2013, resulted by March 2014 in an implementation blueprint The legal framework analysis started in June E-company registration E-C/O E-Phytosanitary Develop legal & regulatory framework enabling for NSW and enact draft law on e commerce Restructure NSW Steering Committee (incl. private sector) Mobilize the necessary human and financial resources to launch the implementation phase ASEAN e-customs agreement ASEAN Single Window WTO trade facilitation

Risk management and education For governments Risk Management is at the core center of e-commerce development. Education will be the essence of a trustful so successful development in Cambodia.

8 Risk management and education For governments Risk Management is at the core center of e-commerce development. Education will be the essence of a trustful so successful development in Cambodia. The example of AAC (Artisans Association of Cambodia), which support export access to handicraft makers is an example to be developed with Chamber of Commerce & Professional Associations. True paperless trade in the international supply chain can truly happen once EDI implementation becomes common place.

Key elements for trade facilitation & paperless What is needed to succeed: High-level of political commitment and resources Inter-agency and public-private partnerships Build up demand and

9 Key elements for trade facilitation & paperless What is needed to succeed: High-level of political commitment and resources Inter-agency and public-private partnerships Build up demand and synchronize timing with all stakeholders A clear roadmap A Khmer translation feature to nationalize the access. An easy and cost-effective service, to meet the needs of SMEs Compatibility, Reliability, Security and High Connectivity are essentials.

10 The end

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