MESA & SETRIS e-Maritime Workshop “The latest trends in Port Community Systems” Richard Morton, Secretary General International Port Community Systems Association January 27, 2016 Valencia, Spain

CONTENT Trade Facilitation Single Window Port Community Systems Collaborative Environment Developing Trends

The WTO Ref: WTO Website - It is an organization for trade opening. It is a forum for governments to negotiate trade agreements. It is a place for them to settle trade disputes. It operates a system of trade rules. Essentially, the WTO is a place where member governments try to sort out the trade problems they face with each other.

WTO Trade Facilitation Agreement In December 2013, WTO members concluded negotiations on a Trade Facilitation Agreement The TFA will enter into force once two-thirds of members have completed their domestic ratification process. Currently ratified by 68 of 162 members. The TFA contains provisions for expediting the movement, release and clearance of goods, including goods in transit. It also sets out measures for effective cooperation between customs and other appropriate authorities on trade facilitation and customs compliance issues.

Countries already ratified Mali, Hong Kong China, Singapore, the United States, Mauritius, Malaysia, Japan, Australia, Botswana, Trinidad and Tobago, the Republic of Korea, Nicaragua, Niger, Belize, Switzerland, Chinese Taipei, China, Liechtenstein, Lao PDR, New Zealand, Togo, Thailand, the European Union (on behalf of its 28 member states), the former Yugoslav Republic of Macedonia, Pakistan, Panama, Guyana, Côte d’Ivoire, Grenada, Saint Lucia, Kenya, Myanmar, Norway, Viet Nam, Brunei, Ukraine, Zambia, Lesotho, Georgia, Seychelles, and Jamaica.

TFA Links to Single Window 6 Article 10.4 Single Window 4.1 Members shall endeavour to establish or maintain a single window 4.2 “single submission of information” 4.4 ….use information technology to support the single window. Section III - contains provisions that establish a permanent committee on trade facilitation at the WTO, require members to have a national committee to facilitate domestic coordination and implementation of the provisions of the Agreement

Source: UNECE, Tom Butterly, IPCSA Conference, 1 st June 2015 Recommends Governments to establish Single Window for Cross Border Trade Defines features: … one time submission..of standardized information and documents sharing of information amongst government agencies; coordinated controls and inspections of the various governmental authorities; Allow payment of duties and other charges; Be a source of trade related government information. Single Window UNECE Recommendation 33

Single Window : a growing trend : in about 20 economies 2010: in 49 economies 2014: in 73 economies 2020: in 100 economies & some regions (ASEAN, EU SW)? “ Single Windows (SWs) are important drivers for the simplification, harmonization and automation of trade procedures” Source: WB Doing Business Report 2012/2013, UNECE-UN/CEFACT 2005/2011 Source: UNECE, Tom Butterly, IPCSA Conference, 1 st June 2015

Benefits of SWs: Evidence 9 Source: UNECE Trade Facilitation Implementation Guide (2012) – WTO Case Studies (2011) - UN/CEFACT SW Repository Senegal Thaïland Benefits:  Pre-clearance formalities – from 4 days to 0.5 days  Customs Clearance – from 18 to 9 days  Export times - from 22 to 11 days  Customs revenue - from USD 625 Mlllion a year (2005) to 1.2 Bn a year (2011) Benefits:  Export costs reduced from 848 USD in 2007 to 595  Savings on logistic costs USD 1.5 Bn per year  Number of documents for import – from 12 to 3  Number of documents for export – from 9 to 4  Time to export – from 24 to 14 days Source: UNECE, Tom Butterly, IPCSA Conference, 1 st June 2015

Trade Facilitation Challenges Single Window simplifies, harmonises and automates, BUT in general only administrative processes True Trade Facilitation should link both simplification, harmonisation and automation of BOTH Administrative and Operational Processes This is where a “Port Community System” or Collaborative system is needed B2G B2B

What is a Port Community System ? “A Port Community System is not an IT project, but a change management project.” Javier Gallardo, Portic (IPCSA), Red VUCE meeting, 4 th December, Cusco, Peru A Port Community System is: a neutral and open electronic platform enabling intelligent and secure exchange of information between public and private stakeholders in order to improve the competitive position of the sea and air ports’ communities. optimises, manages and automates port and logistics efficient processes through a single submission of data and connecting transport and logistics chains.

The Port Community System – a typical example PCS

PCS – A Trade Facilitation Tool A PCS : Links administrative processes to operational ones Thus re-using data for both purposes and the re-use of existing Information Systems Creating Transparency & reducing trade burdens Can also act as a Gateway into a Single Window

PCS – A Trade Facilitation Tool PCS thus link Administrative and Operational procedures electronically via the exchange of messages on a end to end basis (machine to machine) with all stakeholders. A PCS: Links administrative processes to operational ones Thus re-using data for both purposes and the re-use of existing Information Systems Creating Transparency & reducing trade burdens Can also act as a Gateway into a Single Window

SW Trade Portal-PCS/ SW Links Act as Gateways into Single Window Potentially reducing the number of interfaces for administrations Improving quality of data sent to administrations Increases trade: – Benin, Africa – In two years Increase from 150,000 to 250,000 TEU Dwell time from 36 to less than 8 Increase custom revenue from 410m to 490m Euros – Odessa, Ukraine – In two years Reduction from 43 days to 3 days on dwell time

SW as a Collaborative Network of Information Systems Airport Cargo Community Systems Freight Forwarders Terminal Operators Customs Airport Authorities Trade SW e-Trade Buyers/Importers Sellers/Exporters Importer’s Banks Exporter’s Banks Maritime SW Marine Department Ship Piloting Vessel Traffic Safety Ship Agents Port Authority Terminal Operator Vessel Operator Port Community System (PCS) Freight Forwarders Hauler Operators Warehouses Terminal Operators Regulatory Agents Port-equipment Operators Customs Department Quarantine & SPS Agency Other government agencies Health Department Customs Brokers Traders Single Window Collaborative Environment Source: UNECE, Tom Butterly, IPCSA Conference, 1 st June 2015

Possible Collaboration Scenario between IOIS ? Customs Border Control Food and Veterinary Safety and Security Other OGAs Ground Handlers Terminal Operators Freight Forwarders Transporters Warehouses Air Carriers Regulatory Agencies Transport Operators Related to a Airport Civil Aviation Environment of Interoperability between NSW & PCS NSW PCS Process Agreement, E-Freight Harmonization for Data Semantics, Data Privacy/Security, Service Level Agreement, Legal Agreement Source: UNECE, Tom Butterly, IPCSA Conference, 1 st June 2015

Developing Trends UN, WCO, IMO, WTO and others recognise that to create true trade facilitation administrative and operational processes need to be simplified in parallel. IMO Single Window project SOLAS Container Weighing Regulations – How to exchange “verified weight” electronically Cybersecurity – an increasing risk particularly within the supply chain Electronic Certificates

IMO - example Increasing trend to use electronic exchange of information. Maritime Environmental Protection Committee “electronic forms of documentation relating to loading and distribution of cargo; operational manual for oil discharge monitoring and control system; operations and equipment manual for crude oil washing operations; operations and equipment manual for crude oil washing; shipboard oil pollution emergency plan; operational manual for gas carriers; P&A Manual; shipboard marine pollution emergency plan; garbage management plans and VOC management plan (see rows 9, 10, 11, 14, 28, 32, 35, 41, 42, 46 and 51 of the table in the annex). Using electronic versions of the abovementioned documentation would have a number of benefits, including simple updating processes, low cost, reduced physical storage, reliable backups, better knowledge management and search, etc. However, most of the above-mentioned documentation needs approval by the Administration, so it is important to have a verification process in place to confirm the authenticity and validity of electronic documentation. To this end, the Committee is invited to consider the feasibility of using electronic documentation (manuals, plans and etc.) under MARPOL”

Mobile Technology ?? Ref: IPCSA Mobile Apps Survey 2014

Developing Trends Track and Trace eManifest – EMSA IMP & Project Review of Current MSW DTLF Data Models and Semantics (UNCEFACT Transport and Logistics Domain Meeting 9-10 march Valencia in collaboration with IPCSA and PROTECT BCN ROT HA M LEH FXT BRE IPCSA Track and Trace Initiative

“Port Community Systems and other private / public collaborative systems are the way forward and need to be incorporated into future methods of border management.” Dr Alan Bersins, Assistant Secretary, US Department for Homeland Security – INCU Inaugural Conference, Baku, Azerbaijan, May 2014.

For more information on IPCSA Richard Morton, Secretary General E: