Regional Perspectives on Paperless Trade: Paperless Trade in International Supply Chains: Enhancing Efficiency and Security Regional Perspectives on Paperless Trade: MONGOLIA Erdenepurev Amarkhuu, Geneva, Switzerland 22 June 2005

Agenda: The country overview Tentative program on E-commerce in Mongolia From ASYCUDA to GAMAS

Real GDP growth (percentage change) -3 2.3 6.3 2.4 3.2 4.0 10.6 6.0 4 5.6 1.0 1.1 3.5 -4 -2 2 6 8 10 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 11

GDP, by sectors (in percentage, 2004)

Inflation rate (end of period) 60.0 50.0 44.6 53.1 40.0 30.0 20.5 20.0 11.0 10.0 8.1 6.0 8.0 10.0 1.6 4.7 0.0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Foreign Trade Turnover (in million USD)

Tentative Program on E-commerce in Mongolia Main purpose Activities To create improved environment for e-commerce Information data base, and info management system Participate in international e-commerce

Tentative Program on E-commerce in Mongolia, Continued Targets: To create access to e-commerce for the capital city, all centers of aimags, and 70% of all somons (administrative units) by year of 2012. To increase business volume of B2B (business to business) by 10% and of B2C (business to consumer) by 20%. To make the e-commerce as a main tool for increase foreign trade turnover

Tentative Program on E-commerce in Mongolia, Continued Actions: to build a basement for the –commerce to elaborate information data base and information management system to join international e-commerce alliances and to participate in international e-commerce to promote cross border e-commerce

From ASYCUDA to GAMAS ASYCUDA: Since 1993 Penetrated into 12 customs posts Total cost for the system: USD900,000

ASYCUDA: Achievements: Automation of customs clearance, control, collecting duties A step forward to international standard of foreign trade and transport related documents Registration of customs inspectors Regulation of job distribution among inspectors Procurement of equipment such as PC, printers etc

ASYCUDA: Continued Disadvantages: Incomplete coverage of all customs posts No network Statistical data should go through many procedures Lack of economical data analysis tools costly time consuming

ASYCUDA: Continued Problems: Y2K problem during the transition of 1900-2000 Guarantee expired Necessary software/programs were out of date

GAMAS: Mission statement: Simplify and automate customs clearance procedures Facilitate international trade Digitize logistics process

GAMAS: Continued: The main objectives:: to initiate automatic system of customs information, to increase efficiency of links between customs office and business entities, freight forwarding companies, customs brokers, banks, and government authorities, to create environment in which technical tasks (computing, digitally storing, transferring etc) and manpower assignment (relationship between inspectors and customers) is clearly separated to create e-customs that will make its contribution to the project of e-government.

GAMAS: Continued-2 Main advantages vs. the previous system: capable of work within the Windows system Easy to use and apply as it is in mongolian language Information database uses the up to date technology such as SQL-2000 Easy to make a change in it following the fast developing IT technology It is first national system

GAMAS: Continued-3 Main achievements: Completing 64.7% of total customs clearance Making 90.3% of budget revenue First integrated system

GAMAS: Continued-4 Further goals: connect all customs posts and units into one integrated system online to create centralized system of control to increase PC skills of inspectors particularly in rural areas to elaborate the GAMAS system according to the current development of IT technology

ASYCUDA vs. GAMAS Procedures: ASYCUDA GAMAS Customs clearance Use of typewriters Software, and PC printing Assessment/evaluation: and number of staff By hand, 2 inspectors PC program 1 inspector Collecting duties, final permission of release and number of staff Data base creating DOS program, 1.44 Floppy disks Windows system, through network Control By hand Statistical data, report etc DOS program and MS Excel

ASYCUDA vs. GAMAS Procedures: ASYCUDA GAMAS 1 Customs clearance   Procedures: ASYCUDA GAMAS 1 Customs clearance Time consuming 5-8 times shortened 2 Control Through several steps At the moment 3 Management Inconsistent, separated Integrated 4 Statistics checking Through many steps At any time 5 Information database Incl. hand procedures, PC program Paper based Online based

ASYCUDA vs. GAMAS Conclusion: the first national integrated online system automation of customs clearance procedures enabling online declaration enabling online duties payment enabled intranet increased control management decreased customs offence increased revenue to state budget

UNESCAP THANK YOU VERY MUCH FOR YOUR ATTENTION Any questions?