UNNExT Workshop on Electronic Exchange of SPS Certificates for Better Trade Control and Facilitation October 2015 Wuhan, China

Transcription

1 UNNExT Workshop on Electronic Exchange of SPS Certificates for Better Trade Control and Facilitation October 2015 Wuhan, China

2 STREAMLINING AND AUTOMATING PROCEDURES FOR AGRIFOOD TRADE Francis Lopez President, InterCommerce UNNExT Expert Electronic Exchange of SPS Certificates for Better Trade Control and Facilitation October 2015, Wuhan, China

3 Addressing Key Issues in Agri-Food Trade Increasing population and income result to increase demand for food Gains in trade agreements being negated by regulations on food security, SPS and non-tariff barriers Food loss and waste in cross border, agrifood trade.. Promote an open and rules-based trading system that allows reliable movement of agriculture and food products, support efficient distribution systems throughout the supply chain. (APEC Declaration on Food Security)

4 Typical AgriFood Supply Chain* Collaboration in Trade Identifiers: AEOs, Product Codes Compliance to import requirements Visibility across the Supply Chain Case Studies India GrapeNet Malaysia Food and Traceability Vietnam TraceVerified for Fish Exports New Zealand ecert for Meat Products Transport Air, Sea and Land Case Studies US ITDS GS1 China ecert, GPS and RFID * Information Management in AgriFood Chain: Towards an Integrated Paperless Framework for AgriFood Trade Facilitation

5 Case Studies Export India GrapeNet Malaysia Food and Traceability Vietnam TraceVerified for Fish Exports New Zealand ecert for Meat Products Import China Tianjin ecert, GPS-RFID US ITDS Philippines Trade System Key Success Factors Identification of source and products Specific testing procedures Export-Import collaboration to ensure Certification for compliance to import regulatory requirements Accessibility of data for transparency, monitoring and reports Government support, possibly with funding, for sustainability Tangible benefits to government and the private sector Cost effective technical solution

6 Hardcopy documents Challenges in Paper-based Processes - Daily volume of documents submitted - Accuracy, consistency of information Manual intervention in the review, processing and approval - Clerical errors in review - Human intervention in the approval processes - Data re-entry to generate reports Transparency - Data visibility, documents in filing cabinets - Accountability - Limited data analysis 6

7 Focus Areas in Trade Facilitation 1. Export Procedures Export Declaration Certifications in Compliance to WTO SPS Agreement, availability to import authorities Certificate of Origin Manufacturer/establishment Registration, GAP, etc. 2. Cross Border Transportation Transport documents: AWB/BL/Waybill Cargo handling information, monitoring 3. Imports Procedures Import permit issued by regulatory agencies Verification on compliance to import and quarantine regulatory requirements Quarantine, physical inspection Import declaration and Custom Clearance Producers, Traders Export Cross Border/ Transport Import Food Processors, Consumers

8 Interventions for Trade Facilitation 1. Producer, Manufacturer, Trader Identification of the source: product, producer, and area Certification particularly on the quality of produce 2. Export Trade Regulatory Organizations Compliance to SPS Certification and import regulatory requirements Electronic SPS Certificate accessible to Import Quarantine Agency 3. Import Trade Regulatory Organizations Import permits to specify requirements Advanced verification and acceptance of Certifications Risk Management to reduce quarantine, physical inspection Compliance to Customs requirements

9 SPS Certificate Sanitary and Phytosanitary Certificate - WTO SPS Agreement - International Plant Protection Council (IPPC) and the International Plant Sanitary Measures No.12 (IPSM) - CODEX Alimentarius Commission/OIE Issuance of SPS Certificate - Harmonise SPS measures, based on international standards, guidelines and recommendations - Safeguard international trade of plants, animals and fisheries and products thereof 9

10 SPS Certificate Workflow 10

11 Manual SPS Certificate Application and issuance - Submission of application, samples support documents - Conduct of inspection of production facilities, and laboratory tests on products (if applicable) - Preparation and approval of SPS Certificate - Issuance to exporter Transmission of SPS Certificate - Transmission of SPS Certificate by exporter to importer (thru courier) Utilization of SPS Certificate - Verification of the SPS Certificate and compliance to quarantine requirements 11

12 e-sps Certification Definition - A secure exchange of SPS / ecert Messages from Issuing Authority (Export) to Quarantine Authority/National Plant Protection Organisation -NPPO (Import) Objectives - Ensure compliance to health, sanitary requirements of exporting and importing country - Facilitate quarantine compliance and control fraud - Trade facilitation, cross border efficiencies with advanced information, reusable data 12

13 e-sps Features Government-to-Government (G2G) Exchange Equivalent to paper SPS Certificate Prior Notice - available prior to arrival of goods Initiate pre-clearance processes including risk management Verification of paper SPS Certificate Reusable SPS data: traders, product identifier, quantity/volume 13

14 Automating SPS Certificate Adopt electronic message standards for paper documents, e.g. UNCEFACT e-cert for SPS (Health) Certificate, IPPC e-phyto for Phyto Certificate - Compliance of SPS application data to data element requirements of message specifications - Re-use of application data in the issuance of electronic SPS Certificate Arrangement on the Exchange of SPS Certificate - Undertaking on the issuance of the e-sps - Use of e-sps to ensure SPS Certificate, to facilitate quarantine clearance at border - Mode of exchange and data communication protocols (pull, push, exchange) 14

15 E-SPS Workflow 15

16 E-SPS Initiatives IPPC IPSM No 12: ephyto Certificate Hub Model AU DAFF e-cert: Transmission of UNCEFACT e-cert US ITDS GS1: Use of Identifiers on Products and Traders PAA e-sps: Provisioning of Workflow Infrastructure 16

17 IPPC ISPM No.12 : e-phyto Definition - It is the electronic transmission of phytosanitary certificate information (electronic equivalent of a paper phytosanitary certificate), containing the same information and giving the same guarantee. Key Elements - Message format - Harmonisation of message contents (as prescribed in ISPM12) - Secure transmission - Authenticity of the message IPPC: International Plant Protection Convention ISPM: International Standards for Phytosanitary Measures 17

18 IPPS ISPM No 12 ephyto Electronic Certificate may be issued where accepted by the National Plant Protection Office (NPPO) of the importing country Specific required provisions - The mode of issuance, transmission and level of security is acceptable to the NPPO of the importing country - Information provided is consistent with the IPPC Model Phytosanitary Certificates - The purpose of the phytosanitary certification under the IPPC is realized - The identity of the issuing NPPO can be adequately established and authenticated Available to the relevant NPPO upon consignment arrival 18

19 Agreed Principles and Recommendations for the e-phyto Exchange 1. Agreement on definition of e-phyto Certification 2. All elements for e-phyto Certification exchange mechanism will be derived from IPSM Universally accepted standards for secure Certificate exchange, message format and implementation of procedures will be used 4. UN/CEFACT Schema (data elements, core components) must be reviewed to ensure consistency with IPSM 12 requirements, and a user guide developed to include an IPSM12 Overlay for the UN/CEFACT Schema.. 9 Points Summary on Key Agreements during the Plenary of the 3-day Workshop 19

20 Agreed Principles and Recommendations for the e-phyto Exchange 5. During transition periods in implementation, current hard-copy practices would still apply 6. Rely on IT experts to provide advise on methods for flexible and secure electronic transfer 7. Initiate a multilateral standardization approach rather than a bilateral approach with respect to country-tocountry negotiations for exchange 8. Engage developing countries through regional cooperation and pilot projects and use IPPC for outreach activities, and 9. Develop simple-to-understand communication pieces such as Background Paper and Myth-busting Question and Answers 20

21 Australia DAFF e-cert E-Cert Website ( - DA Biosecurity Internet application for electronic certification of traded food and agricultural commodities. This application currently provides electronic certification for Australian exports of Meat, Skins, Fish, Dairy, Horticulture, Grains, Wool, Eggs and Inedible Meat - Online search/view of Export/SPS/Health Certificates - Allows updates on Certificate status: Accepted, Detained or Request for Replacement - Allows download of Certificates in XML format Alternative Access Mode to E-Cert Data - Pull data from AQIS via interaction with SOAP interface - Push data to Import/Quarantine Authority via SMTP and digital certificates 21

22 Department of Agriculture e-cert 3 MODES OF E-CERT EXCHANGE AU DA SPS Certificate Online SPS Verification Download SPS (Pull) Transmit e-sps (Push) Import Quarantine Agency

23 AU-PH e-cert Exchange Exporter SPS Certificate Importer Import Clearance E-DOC SPS Certificate AU DA e-sps Certificate With Import Permit Reference Number D A Trade System PH Bureau of Animal Industry PH to Facilitate Quarantine Clearance: e-sps to have Import Clearance RefNo, transmitted upon approval, auto-validation vs Import Clearance prior to arrival of goods

24 US ITDS GS1 Pilot E-Cert in 2010 Toys, Cut flowers, Meat and Poultry Global ecommerce Product Catalog - Granularity of product identification - Product visibility across borders - Consumer security - Cost savings Compliance to unique country-by-country, product-by-product requirements Enhanced Risk Management 24

25 Use of GS1 Standards in SCM 25

26 GS1 Standards Global Location Number (GLN) Global Trade Identification Number (GTIN) Global Data Synchonization Network (GDSN) 26

27 GS1-128 Bar Code

28 US ITDS GSW Pilot E-Cert Findings 100% of the 21 static characteristics assigned to identify and classify meat and poultry products could be downloaded from a GS1 GDSNcompliant catalog No information technology or security obstacles, enable re-use of supplier published product information, with complex product characterisation Improved data accuracy and efficiencies (i.e. reduce product characterisation errors) 28

29 APEC GDS Initiative The Global Data Standards (GDS) initiative has been driven by the APEC Business Advisory Committee since 2012 Proposing that Governments leverage business data and systems such as barcoding and data sharing platforms in cross border control and supply chains for improved transparency and better risk management Result could be better product visibility and improved efficiencies, faster clearance, less spoilage etc. The use of Global Data Standards in APEC supply chains received endorsement in the Leaders Declaration and in the Ministers Statement in Beijing in November 2014 with official support for pilot projects

30 Lead Economy Hong Kong China Nine pilot project proposed by APEC economies and LSIF, to be executed Q Q Nominated Product / Reason for Selecting Product Wine: high value, origin-sensitive, subject to regulatory control Trade Route Australia HKC New Zealand Deer Velvet: high value, easily perishable, origin-sensitive NZ Korea New Zealand Seafood: Origin-sensitive, Easily Perishable, Subject to regulatory Controls, Seafood widely traded in many APEC Economies, Long supply chain with cross economy export, import and processing, Includes border authority NZ HKC / NZ China USA: Two linked seafood projects proposed: point to-point export (New Zealand and HKC), and Multi-economy supply chain (New Zealand, China, USA). Australia Boxed meat: Subject to regulatory Controls Australia USA; Export: Australia (Teys Australia supplier, Chalmers Industries Road Transport, Hamburg Sud stevedoring /shipping, Port of Brisbane Port Facilities), Australia Customs, Australian Dept of Agriculture Russia Furs: high value, origin-sensitive, subject to regulatory control China Russia Mexico Tequila: High value, Origin-sensitive, Subject to regulatory Mexico USA Peru Malaysia APEC LSIF/ ABAC control Asparagus: Easily perishable & subject to regulatory control (Traceability regulatory eg. PTI Produce Traceability Initiative for EEUU and Canada Musang King Durian Whole Fruit / Processed Fruit: High Value, Easily Perishable, Originsensitive, Subject to regulatory control, Temperature sensitive Pharmaceuticals: Subject to regulatory Controls Peru USA Peru - HKC Malaysia HKC Malaysia - China USA HKC/Philippines/Indonesia/Korea/ Singapore (TBC)

31 Objectives and Progress Objectives Show how GDS and EPCIS (barcodes) can deliver direct benefits for traders, customs and governments Reinforce use of barcoding for missing shipping mark protocol Demonstrate how GDS compliments AEO/TTP s Show how to leverage GDS based services including GDSN (GS1net), Recallnet portal and EDI (Transport Instruction) Progress Pilot participants are collaborating (US Customs/USDA still WIP) Completed supply chain events map, data reqt s and collection points Established and tested EPCIS V1.1 platform (GS1HK eztrack) Reviewing GDSN, EDI and recall requirements Working with pilot team and Policy Support Unit (PSU) to finalise KPI s First shipment due late Oct/Nov 2015

32 Application of Global Data Standards (GDS) in APEC Economies: Methodology of the project A. Identify benefits Cost savings: measurable/ static Sales boost and customer service factors: dynamic, less easily measured B. Develop baseline indicators and benchmarks Improved planning Customer satisfaction Efficiency gains C. Develop survey templates Companies in the pilot supply chain Stakeholders D. Estimate costs and benefits Error rates Timeliness of delivery Labour costs Inventory costs Transport system costs Consumer benefits Others: product recovery and recall, proof of authenticity E. Review of existing operations Delivery of clean data Data security and ICT integration costs for SMEs Benefit-cost assessment report Policy Recommendation

33 Pan Asia Alliance e-sps Initiative PAA members are authorized services providers of their respective Customs and other government agencies, to enable electronic transactions The PAA provides safe and secure cross border exchange of electronic trade, transport and commercial documents PAA e-sps initiatives aim to facilitate collaborative e-sps exchange between economies

34 PAA Collaborative esps Exchange Model 34

35 PAA E-SPS Exchange 35

36 PAA e-sps with One SP 36

37 E-SPS Challenges Largely manual SPS processes issuance and utilization The receipt/access to e-sps Certificate mainly to authenticate paper SPS Certificate (control fraud) Messaging, connectivity and IT infrastructure issues Compliance to import requirements and the rejection of SPS is not addressed by most e-sps initiatives Legal, policy framework for the use and exchange of electronic messages in lieu of documents 37

38 Thank you.