UNNExT Workshops on Trade Facilitation
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1 UNNExT Workshops on Trade Facilitation UNNExT Workshop on Trade Facilitation and Paperless Systems for Agrifood Products Almaty, Kazakhstan 4-6 May Page 1
2 Streamlining and Automating Procedures for Agrifood Trade: Thai Experience Somnuk Keretho, PhD Director, Institute for IT Innovation... Kasetsart University, Bangkok UNNExT Workshop on Trade Facilitation and Paperless Systems for Agrifood Products 4-6 May 2015 Almaty, Kazakhstan
3 Agenda 1. Trade Logistics Improvement: the National Agenda 2. Trade Facilitation: Process Reform (Process Simplification & Process Automation) 3. Continuous Improvement Cycle 4. A Case Scenario: CITES Certification Process Improvement within a government department 5. A Case Scenario: Simple e-document Exchange between two Government Agencies through National Single Window Environment 6. A Case Scenario: Electronic Single Window Entry 7. Conclusion/Recommendations Page 3
4 1. Thailand Case Trade Facilitation & SW agenda is holistically integrated within the National Logistics Development Plan ( ) Vision & Goals are aligned with National and Regional (ASEAN) Agenda Page 5
5 2. Trade Facilitation/Electronic Single Window: Process Reform Trade Facilitation, and IT or Single Window Development is about Business Process Analysis (Understanding the as-is process, its bottlenecks/its root causes) Business Process Redesign (Designing the better to-be process) Implementing and Adopting the Change Page 6
6 3. Continuous Improvement (CI) Cycle 1.Assessment (Understanding the as-is process, e.g. strength, weaknesses, Improvement opportunities) 4. Change Adoption of the new environment At the National level and also at the Government Department level, this CI cycle should be managed and implemented systematically. 2. Improvement Plan (analyzing and prioritizing the improvement measures, e.g. proposing to-be processes) 3. Implementation of those new to-be processes Page 7
7 Regulatory agencies relate to Agri-Business Within many government agencies, there might be some complicated/cumbersome/time-consuming procedures and document transactions related to export & import of agri-food products. Dept of Livestock Development, MOAC Dept of Fisheries, MOAC Dept of Agriculture, MOAC Food and Drug Administration, MOH Dept of Disease Control, MOH Dept of Medical Science, MOH Chamber of Commerce Royal Customs Department, MOF Dept of Business Development, MOC etc. General business registration Specific business registration and Quota Onsite Health Inspection Import/Export Permits Import/Export Certificates Fumigation and Reports Health Certificates Sanitary Certificates Phyto-Sanitary Certificates CITES Certificates At-border Inspection Tracking Reports etc. MOAC=Ministry of Agriculture and Cooperatives, MOH=Ministry of Health, MOF= Ministry of Finance, MOC = Ministry of Commerce Page 8
8 4. A Case Study CITES issuing process (process improvement within a government department) CITES (the Convention on International Trade in Endangered Species of Wild Fauna and Flora) is an international agreement between governments. Its aim is to ensure that international trade in specimens of wild animals and plants does not threaten their survival. Several complicated & costly procedures and document handlings are needed for applying and issuing import, export and transit-related permits, etc. Page 9
9 CITES Issuing Process Analyzing As-Is Processes & their Bottlenecks* A Case Example 1. Registration process of flora plantations, associated lists of flora and their quota/capacities (Application Formpp15, and Registered/Output Form-pp16) 2. Amendment process for flora plantations, flora lists and quotation (addition, deletion, new flora, other changes etc.) (Forms pp 17, 18, 19, 20, 21) 3. CITES Import Permits to Thailand (Form pp 13 + Certificate of Origin + CITES Export Permits + Phytosanitary Cert in some cases) from the origin country, and requesting for CITES Import Permits 4. CITES Export Permits from Thailand (Form pp 16, pp 13 + CITES Import Permits from the destination country), and requesting for CITES Export Permits 5. CITES Transit Process at the border (Form pp 13 + CITES Import Permits at the destination, and transit clearance process at the border) - Manual operations - Paper-based transactions - Costly and take several days for 2-3 physical visits to complete each transaction - Difficulty in data cross checking & validation (possible paper fraud and error prone) * This is a case for Department of Agriculture, MOAC, Thailand. Page 10
10 - CITES Issuing Process - Faster/Cheaper/More Compliant To-Be Process 1. Importers/Exporters can submit their application forms online without physical visits to the government office. 2. Importers/Exporters can check status of their applications online. 3. Government officers can issue the CITES Permits online. 4. Those CITES Permits issuing at the DOA main office can be sent electronically to the DOA border office, and also to match with the corresponding Customs Declaration for faster/more compliant border clearance (through National Single Window). 5. Those different application forms, and CITES import/export/transit-related Permits could be in electronic forms, or printed forms as requested. 6. Data cross checking between the DOA main office, the DOA border office, and Customs to reduce fraud, and improve accuracy. 7. Amendations (Add/Update/Delete) can easily handled electronically. - Electronic transactions instead of manual - Electronic documents instead of paper documents - Faster/less cost: 2-3 physical visits were reduced to 1 physical visit, or none for each transaction - Better compliance with data cross checking Page 11
11 Applicant Information System DOA Border Control To-be CITES Import Permits Electronic Process Page 12
12 5. Simple e-document Exchange through National Single Window Environment for efficient/effective Clearance. Electronic Export Permits (e.g. issuing by Dept of Agriculture) could be electronically (paperlessly) sent to Customs Department through the National Single Window environment. Then, that electronic Export Permit could be automatically matched with the corresponding Export Customs Declaration for timely Customs Clearance at the border (the Permit Identification Number needs to be submitted along with the electronic Customs Declaration so that these two corresponding e-documents could be linked and data cross-checked automatically). Page 13
13 Customs Dept National Single Window Gov Network An Example of Information System Architecture for Department of Agriculture and Connectivity with National Single Window (and Paperless Customs System) Applicants External Private Labs DOA Branches DOA Data Center Internet DOA Main Office DOA Border Control Page 14
14 Paperless Customs Environment (Thailand) in operation since 2009 Features/Functions for Paperless Customs (Thailand) Electronic Customs Declaration Submission with electronic signature + e-payment for Customs Duty + e-manifest + and electronic risk analysis for speeding up customs clearance and reducing # of physical inspections Page 15
15 (Regulatory) National Single Window (Thailand) further evolving in connecting Paperless Customs with other regulatory agencies Gradually linking Paperless Customs firstly with few selected Government Agencies (based upon key strategic goods, economic gains, willingness and readiness etc.) then connecting with more Government Agencies. Thailand NSW (1 st Phase) connecting electronically only to 4 other government agencies (with high volumes of electronic permits issuing), then later to all 36 trade/transport regulatory agencies (in the 2 nd Phase) Goal 1- Electronic information exchange for better Customs clearance coordination and other import/export permits, licenses and certificates. Goal 2 Single Window Entry for different regulatory agencies is more difficult to achieve (e.g. data harmonization exercise must be implemented) Page 16
16 Thailand (Regulatory) NSW Environment (single data submissions for all agencies have not fully been achieved yet) Single Window exchange among 36 regulatory agencies has been established. Ref: UNNExT Brief No. 08, August Page 17
17 6. A Case Scenario: Electronic Single Window Data Entry - As-Is Process Analysis (Complicated Process) - (As-Is) Problems : - Duplicated Information & 3-5 physical visits to different locations - High Cost and Time for sending and receiving documents - Possible Data Inconsistency Page 18
18 To enable Single Window Data Entry, data elements within those different forms (i.e. Rice Export Permit, and Rice Quality Certificate) need to be harmonized (agreeing on common names, definitions, codes, ). Rice Quality Certificate By The Thai Chamber of Commerce Permit for the export of rice by Department of Foreign Trade Page 20
19 To enable Single Window Data Entry, data elements within those different forms (i.e. Rice Export Permits, and Rice Quality Certificate) need to be harmonized (agreeing on common names & definitions, codes, ). 2 documents required for exportation of rice Permit for the export of rice Rice Quality Certificate Data Element Name Definition weight (kg.) Net Weight (kg.) Net Weight (item) [TDED 6020] The measure of the net weight (mass) of this cross-border trade line item, excluding all packaging. Unit Price Price Unit Price (item) [TDED 5110] Price per unit of quantity on which an article item amount is calculated. Name of transport Ship s name Name of Transport [TDED 8212] Name of a specific means of transport such as the vessel name Page 21
20 Conclusion/Recommendation: #1 Institutionalizing the Political Mandates To be established by Law* or mandated by the Cabinet, all Head of government agencies, of those related to import/export/transit of goods, must be in charge of steering the following tasks Conducting the Business Process Analysis of its core process/services (also with quantitative performance measures** and service level agreement), and make those processes transparent and easily accessible by all stakeholders. Propose process improvement (both to-be process simplification and process automation) and implementation plan of the department. Implementing those improvement plan, and report results to the Cabinet on a yearly basis. ** e.g. how many steps, average time and cost for each step, and required documents, etc. * For example, in Korea it is mandated in the e-government Law In USA, it is mandated in US Government Paperwork Reduction Act 1995, and US Paperwork Elimination Act Page 22
21 Conclusion/Recommendation: #2 Conducting BPA Projects Providing training and assisting MOAC (DOA, DOF, DLD, ) to conduct Analysis of the As-Is Business Process & their bottlenecks related to import/export/transit agriculture-related goods Proposing better To-Be Business Process by 1. Make those procedures & document requirements transparent and easy for stakeholders to access to 2. Merge some procedures, and/or documents(forms) 3. Eliminate redundant procedures and unnecessary documentary requirements 4. Automate procedures and promote the sharing of trade and transport data among relevant stakeholders 5. Modify related laws and regulations to facilitate the operation of the newly designed business processes 6. Reform the regulatory-related organizational structures, etc. Page 23
22 Conclusion/Recommendation: #3 Implementing BP Improvement Projects Assisting MOAC (DOA, DOF, DLD, ) to develop process improvement plans and implement those plans Developing improvement recommendations through stakeholder consultation, refinement and agreement/and the connectivity/alignment with the National Single Window project implementation plan. Implementing those new to-be process with both new manual simplified process and electronic information systems, e.g. simplified non-redundant procedures, electronic application forms, workflow automation, issuance of electronic permits/certificates, and electronic information exchange with paperless Customs system (through National Single Window). Page 24
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