How the Korean Government Enhanced Trade Facilitation ? Maeng, Cheol-Kyu : Economic Benefits from Single Window System KCTDI Korea Customs & Trade Development Institute KCS Korea Customs Service

C ontents Background for Korean Single Window Stakeholders in S/W Before & After S/W Economic Benefits from S/W

Background for Korean Single Window I 1

Increased Workload : Trade Volume vs Manpower $2.8 billion 2012 $1,067 billion Trade Volume 379 times , ,550 Customs Personnel 2.7 times 1970 workload per capita ($) 2012 $ 2 M $ 235 M 118 times

Korean Single Window (Concept) 2 3 Definition of ‘Single Window’ (UN/CEFACT Recommendation No.33, 2005) “a facility that allows parties involved in trade and transport to lodge standardized information and documents with a single entry point to fulfil all import, export, and transit-related regulatory requirements. If information is electronic, then individual data elements should only be submitted once” Concept A (Narrow Concept) : Requirement Verification Process titled ‘Single Window’ in Korean language (ex) medical, food, animal, appliance Concept B (Broad Concept) : Total Electronic Customs Clearance Process through a hub portal system titled UNIPASS (ex) customs clearance, duty drawback, cargo management Korean Single Window

Korean Single Window (Concept. continued) 3 4 Port Entry Declarant Carry-In Import Declaration Declaration Accepted Release Total Cargo Import Process : UNIPASS Requirement Verification & Approval Process TENT_ID_ &layoutMenuNo=21007

Stakeholders in S/W (Case of Narrow Concept) II 5

Arrangements for Legally-Enabling Environment 1 6 Foreign Trade Act Customs Clearance Other relevant Laws Article 5, 11, 12, 2665 relevant Laws Integrated Notice (54) Non- Integrated Notice (11) Automated Approval Requirement Approval 35 Regulations and Laws in relation with the Article 226 of Customs Law Requirement Checking Checking Requirements Approval (by Director of Customs House) Requirement Checking Requirement Approval by Director of Customs House (Article 226 of Customs Law as of Dec., 2013 ) (4)(7)

Data Harmonization & Simplification (Case) 2 7 Number of Items checked by Director of Customs House Data Harmonization among different laws in 10 requirements in 2009 July, ,810 May, ,114 Aug., ,113 Sept., ,185 Total Elements (542) 4,356 Dec., ,411 Oct., ,848 Feb., ,964 Jan., ,527 Jan., ,502 Common elements (185) (34%) Unique elements (102) (19%) The Others (255) (47%) 7 laws & 10 documents May, 2007

Increasing PGAs & Usage Rate of S/W PGAs (Participating Government Agencies) Usage Rate of S/W

Before & After S/W ( Case of narrow concept ) III 9

Process for Requirement Verification & Declaration 1 10 Port Entry Declarant Carry-In Import Declaration Declaration Accepted Release Total Cargo Import Process Requirement Verification & Approval Process Customs Authority Relevant Government Agencies Process 2 : Declaration Process 1 : Verification

Import Declaration Process before S/W 2 11 Declarant PGAs* PGA 1 PGA 2 … Customs Authority Import Declaration Request Result of the Declaration Result of the Request Requirement Verification Request Process 2 Process 1 *PGAs = Participating Government Agencies

Simplified Process after Single Window Installation 3 12 Declarant PGAs* PGA 1 PGA 2 … Customs Authority Result Import Declaration Request + Requirement Verification Request Process 1 + Process 2 *PGAs = Participating Government Agencies The Internet Single Window Verification Result Result of the Declaration Verification Result Declaration Request Verification Request

Economic Benefits from S/W IV 13

Changes in Time for Import Procedures (Total) 1 14 Port Entry Carry-In Customs Declaration AcceptanceRelease Year 2005 Year days 2.7 days 1.28days 3.28 days 1.4 hours 1.3 days 0.49 days1.15 days 1.4 hours 1.1 days 3.1days

The Enhancement in Efficiency through S/W 2 15 Year 2005Year 2013 average = 4.61 days average = 1.64 days STD = daysSTD = 6.51 days Changes in Lead Time ( from Port Entry to Declaration Acceptance)

Calculation of Economic Benefits (for import) 3 16 * foot note EV = Economic Value X = the cost for warehouse per imported cargo Y = the number of annual accumulated import customs declarations Z = the decreased proportion of the average lead time for customs clearance

THANK YOU 17

Q & A 18