UNNExT Workshops on Trade Facilitation

Transcription

1 UNNExT Workshops on Trade Facilitation UNNExT Workshop on Trade Facilitation and Paperless Systems for Agrifood Products Almaty, Kazakhstan 4-6 May

2 BUSINESS PROCESS ANALYSIS OF IMPORT OF FABRIC FROM CHINA TO KYRGYZSTAN URMAT TAKIROV, KYRGYZSTAN Workshop on Trade Facilitation and Paperless Systems for Agrifood Products, Almaty, Kazakhstan, 4-6 May 2015

3 Social and economic importance of fabric import Apparel industry is priority sector of Kyrgyzstan s export Employment of apparel industry between and (up to 12% of employed population) Export of apparel industry 8% of Kyrgyz non-gold exports Main supplying countries of fabric to Kyrgyzstan are China, Turkey, Russian Federation, etc. 1.9% 1.6% 3.9% 4.2% 4.4% 83.9% China Turkey Russian Federation Belarus Uzbekistan Other countries Key supplying countries of fabric products to Kyrgyz Republic in

4 The Modelling of the As-Is 4

5 USE CASE OF IMPORT OF FABRIC 3 process areas of supply chain: BUY 1 process SHIP 21 processes PAY 1 process Total # of procedures: participants 5

6 Core business process area 2.18: APPLY FOR CONDITIONAL RELEASE OF GOODS Participants: Customs Broker Importer State Customs Service of KR State Inspectorate on Veterinary and Phytosanitary Safety Bank of State Customs Service Consists of 9 steps Average time required: 3 hours Cost: $ (including taxes) Output and criteria to exit the business process: Conditional release of goods is completed. Importer can move goods to own warehouse but cannot sell. Regulation: 7 documents 6

7 Core business process area 2.20: APPLY FOR SANITARY AND EPIDEMIOLOGICAL CONCLUSION Participants: Importer Department of State Sanitary and Epidemiological Surveillance under the Ministry of Health of KR (DSSES) Laboratory of the DSSES of KR Consists of 12 steps Average time required: 12 days Cost: 30$ Output and criteria to exit the business process: Exporter obtained the Sanitary and Epidemiological Conclusion at the DSSES Regulation: 10 documents 7

8 TIME-PROCEDURE CHART FOR IMPORT OF FABRIC FROM CHINA TO KYRGYZSTAN 8

9 COST-PROCEDURE CHART FOR IMPORT OF FABRIC FROM CHINA TO KYRGYZSTAN 9

10 Identification of Bottlenecks and Redundancies 10

11 2.4. Pass weight control at Customs terminal in Naryn USE CASE OF IMPORT PROCESSED FRUIT 3 process areas of supply chain: BUY 1 process SHIP 217 processes PAY 1 process Conduct weight control in At-Bashi Conduct registration in customs terminal Naryn Conduct weight control in Kemin Total # of procedures: participants As-is To-be model 11

12 Proposed simplification of Conduct Sanitary and Epidemiological Inspection As-is model Model of simplification aims: Reduction number of paper-based documents by 5 (referral, refusal, test report and conclusion) Avoid procedures on manual internal registration and transferring of documents by 5 procedures 12

13 Proposed simplification of Conduct Sanitary and Epidemiological Inspection feedback feedback automatically To-be model click click Model of simplification aims: Reduction number of paper-based documents by 5 (referral, refusal, test report and conclusion) Avoid procedures on manual internal registration and transferring of documents by 5 procedures automatically click Automation of data exchange between agency, laboratory and trader Transparent feedback to trader (status of sms notification or online) Use of e-document in customs clearance 13

14 REDUCING THE DELIVERY TIME FOR IMPORT OF FABRIC FROM CHINA TO KYRGYZSTAN > 5 days 14

15 Recommendation for improvement 15

16 RECOMMENDATIONS FOR OPTIMIZATION OF TRADING PROCESSES 1. Termination of redundant processes Will be excluded the 4 business processes in supply chain, (creation one-stopshop at Torugart BCC) Pass weight control at the terminal of State Customs Service of KR in Naryn (2.4.) Conduct axial weight control in At-Bashi (2.13.) Conduct registration in customs terminal Naryn (2.14.) Conduct axial weight control in Kemin (2.15.) 2. Simplification of business processes of agencies (e.g. Conduct Sanitary and Epidemiological Inspection) Reengineering of agencies processes Automation of data and documents exchange Further simplification such as data harmonization, reduction of required documents etc. 16

17 ACTION PLAN FOR SIMPLIFICATION OF TRADE PROCESS 17

18 SUMMARY Implementation of measures on optimization of trading processes will : Reduce number of procedures up to 19 instead of 23 Eliminate 4 agencies controlling points Reduce delivery time up to 28 days instead of 34 days (by 16%) Decrease of current assets balance frozen in importing fabrics because of shorter time of delivery AS A CONSEQUENCE COST OF PRODUCTION OF APPAREL COMPANIES IN KYRGYZSTAN WILL DECREASE 18

19 THANK YOU FOR ATTENTION! QUESTIONS?