GTI International Capacity Building Programme for Trade Facilitation in NEA February 2012 Cheonan City, ROK Sangwon Lim Trade Facilitation Section Trade and Investment Division, ESCAP Implementing Paperless Trade in GTR: ESCAP Policies and Programmes in Trade Facilitation

2 Trade Facilitation Definitions of Trade Facilitation APEC (2000) OECD (2002) UNECE (2002) WB (2005) WTO (2005) The simplification and harmonization of trade procedures and formalities involved in collecting, presenting, communicating, and processing data required in the international trade  The harmonization and standardization of information and information flows associated with the international trade transaction  The use, standardization, and improvement of physical infrastructure and facilities  The harmonization of applicable laws and regulations with the international standards  The automation of trade procedures 

3 International Supply Chain Reference Model Trade Facilitation and International Supply Chain

4 ESCAP Approach to Trade Facilitation Trade Facilitation Measures Capacity Building Knowledge Sharing Advisory & Networking Procurement Distribution Payment Technical Regulation Customs Inspection Security Certification Other Barriers Efficient Global Trade

5 Trade Facilitation Initiatives in ESCAP: UNNExT UN Network of Experts for Paperless Trade in Asia- Pacific Region (UNNExT) “community of knowledge and practice to facilitate the implementation of Single Window and Paperless Trade in the Asia-Pacific region ”

6 UNNExT Structure

7 UNNExT Work Programmes and Activities Capacity Building Regional Advisory Service Tools and Guides Development Knowledge Sharing Research & Analysis

8 Tools & Guides Development Capacity Building Knowledge Sharing Regional Advisory Service Research & Analysis Business Process Analysis (BPA) Guide for Simplification of Trade Procedures (Dec. 2009) Data Harmonization & Modelling Guide ( Jan. 2012) National Workshops on Single Window and BPA, Mongolia (Sep. - Dec.09) Workshop on Trade Facilitation & BPA Training, Cambodia (Jun. – Jul. 2010) UNNExT Brief Series Online Working Groups & Databases Asia Pacific Trade Facilitation Forum Mongolia Single Window Master Planning (2010/2011) Nepal: Towards Single Window Environment & BPA (2011) Regional Study on Improving Trade Procedures (Using BPA Guide) Cooperation with the ARTNeT

9 Step by Step Approach to Single Window Implementation

10 Business Process Analysis to Simplify Trade Procedures Business Process Analysis is a study to understand attributes of business processes, and their relationships Who involved Procedures and Documents required Related Rules and Regulations Some quantitative indicators

11 Benefits

12 Phase I – Scope setting Step 1 – Define a project scope Step 2 – Develop a detailed work plan and secure resources Phase II – Data collection and process document Step 3 – Acquire background information Step 4 – Conduct interviews and document captured data Phase III - Problem analysis and recommendations Step 5 – Analyze the as-is processes and identify bottlenecks Step 6 – Develop and propose recommendations Steps

13 Project Sponsor Project Manager/ Project Leader Process Analysts Process Participants/ Business Domain Experts 1) Define a project scope 2) Develop a detailed plan and secure resources 3) Acquire background information 4) Conduct interviews and document captured data 5) Analyze the “as-is” process 6) Develop and propose recommendations Phase I Phase II Phase III Use Case Diagram for Big Picture

14 Project Manager/ Project Leader Process Participants/ Business Domain Experts Project Sponsor 1.1) Identify a business domain of interest 1.2) Conduct Desk research 1.3) Identify core business processes and process participants 1.4) Visualize collected information Use Case Diagram 1.5) Review and provide feedback 1.6) Determine if revision is needed Revision needed Revision not needed 1.7) Approve Activity Diagram for Details

15 Activity DiagramsUse Case DiagramsProcess Descriptions Use Case to Process Description

Day Procedure (Use Case) 1) Use Case A 2) Use Case B3) Use Case C 3 Days 1 Day 1) Use case A Actor AA Actor CC 2) Use case B Actor AA Actor DD 3) Use case C Actor BB Actor DD Time-Procedure Chart Use Case Diagrams Process Descriptions Use Case to Time Procedure Chart

17 Time-Procedure Chart Example: Thai Frozen Shrimp Export 1. Buy - Conclude sales contract and trade terms 2.1. Have product sampled and examined 2.2. Arrange transport 2.3. Prepare export permit 2.4. Apply for cargo insurance 2.5. Prepare and submit customs declaration 2.6. Stuff container and transfer it to port of departure 2.7. Clear goods through customs 2.8. Handle container at terminal and stow it on vessel 2.9. Prepare documents required by importer as listed in L/C 3. Pay - Claim payment of goods days 3 days 2 days 1 day 3 days 4 days 1 day day Day Procedure

18  Convey the necessity of conducting of trade facilitation process analysis, especially with the top policy makers  Secure adequate resources to conduct BPA  Identify clearly the roles of stakeholders  Determine a capable lead agency  Start small, and then evolve  Profit from past experience  Invest in training  Use the BPA results for real improvement Practical Recommendations

19 Data Harmonization and Modelling for Streamlining Trade Data SimplificationHarmonization Standardization Elimination of unnecessary and redundant data Alignment of domain, national or regional data to national, regional or international data set Progressing data set into national, regional or international standards through standard bodies

20 Simplification

21 Harmonization Nat’l/Regional/Int’l Data Set

22 Standardization Standard Body Nat’l/Regional/Int’l Standards Harmonized Data Submit Publish

23 Definition of Data Harmonization An act of reconciling the definition and representation formats of data elements in a domain of interest. It entails a set of activities that improves the consistency in the use of data elements in terms of their meaning and representation format. e.g.) Delivery Date Meaning Buyer: Date and optionally time when goods are requested to be delivered Seller: Date and optionally time when goods are estimated to be delivered Driver: date and period of time during which goods are scheduled to be delivered Format DD/MM/YY: 20/08/10 DD-MM-YYYY: MM/DD/YY: 08/20/10

24 Scope of Data Harmonization

25 Outputs of Data Harmonization  A list of documents and electronic documents or messages that fall into the scope of the data harmonization project  A set of Data Dictionaries that corresponds to the identified list of documents and electronic documents or messages  National Standard Data Set that 1) consolidates data requirements listed in each Data Dictionary 2) contains standard semantic definition and representation format for each data requirement  A set of Message Implementation Guidelines for key documents that supports both UN/EDIFACT and/or XML messaging syntaxes

26 Benefits of Data Harmonization  provide common semantic standards for import, export and logistics information  decrease data redundancy and duplication  ensure data compatibility and enable data interoperability among stakeholders, resulting in further facilitation of trade procedures  preparation to develop electronic trade documents  support the establishment of Single Window facilities: a single entry point of standardized information and reuse of information to fulfill all import, export and transit related regulatory requirements

27 Step by Step Approach to Data Harmonization Analyze Define Capture Planning Step 3 Step 2 Step 1 Step 0 Map (Reconcile) Step 4 Business Process Analysis, Simplification & Harmonization

28  Step 1: Capture business processes and identify documents and basic data requirements  Step 2: Analyse data in each document and define the semantic of the data and the data formats  Step 3: Analyse data elements across various documents and organize them in a comparable manner  Step 4: Map/Reconcile data elements to the Reference Data Model  Step 5: Obtain the structure of the electronic document Step by Step Approach to Data Harmonization (Cont’d)

29 Legal Framework for Enabling Paperless Trade and Single Window Environment  Legal Basis for SW Facility Implementation  Organizational Structure for SW Facility  Identification, Authentication & Authorization Procedure  Authority for Data & Conditions for Sharing Data in SW Facility  Data Quality Issues  Data Protection Mechanism  Liability Issues  Arbitration and Dispute Resolution Mechanism  Electronic Documents  Electronic Archiving  IPR and Database Ownership  Competition Issues UN/CEFACT Recommendation 35

30 United Nations Commission on International Trade Law  UNCITRAL Model Law on Electronic Commerce  UNCITRAL Model Law on Electronic Signatures  United Nations Convention on the Use of Electronic Communications in International Contracts Three Principles in e-Transaction Non-discrimination of electronic transaction Technological neutrality Functional equivalence

31 ESCAP Legal Guide on Implementation of Electronic Single Window Facilities  Single Window Overview  General Legal Aspects of Single Window  Specific Legal Issues in Single Window - Basis for legal recognition of electronic communications - Authenticity and integrity - Data quality and interoperability - Data Retention, privacy and data protection - IPR, liability and dispute resolution  Assessment of Legal Gaps

32 Trade Facilitation Initiatives in ESCAP: APTFF Asia Pacific Trade Facilitation Forum (APTFF) An open regional platform to exchange information, experiences and practices for trade facilitation in Asia-Pacific, identify priority areas for regional cooperation and integration, and learn about new tools and services which can increase the efficiency of cross-border transactions.

33 Upcoming ESCAP Trade Facilitation Activities □ ADB-ESCAP Capacity-Building Workshop on Implementing a Single Window April 2012, Seoul, ROK □ ECO-ESCAP Workshop on Trade Facilitation May 2012, Kish Island, Iran □ APTFF 2012 and related events 1-5 October 2012, Colombo, Sri Lanka □ Feasibility Study on Modernization of Mongolia GASI (2012) □ Publication of UNNExT Guide on Legal Framework for Paperless Trade (Mid-2012)

34 Thank you