Fulfilling the Promise of E-Commerce through Trade Facilitation UNECE International Forum on Trade Facilitation Richard Herve Sicard Microsoft, Head of EMEA Trade Microsoft, Head of EMEA Trade 30 May May 2002

A new way of doing business Doha agenda: Create and maintain an environment favourable to e-commerce Doha agenda: Create and maintain an environment favourable to e-commerce Legal framework: UN leadership on – Legal framework: UN leadership on – E-Commerce Law E-Commerce Law E-Signature Law E-Signature Law E-Contracts Convention E-Contracts Convention Challenges in delivery Challenges in delivery Cross Border Supply Chains Cross Border Supply Chains SME Global Market Access SME Global Market Access Consumer confidence Consumer confidence

Overcoming obstacles - IT as enabler to trade facilitation Direct enabling - Customs: Direct enabling - Customs: Vision and process overhaul Vision and process overhaul Focus on the core mission Focus on the core mission Digital deliveries Digital deliveries Indirect enabling - Economies: Indirect enabling - Economies: Global market access Global market access Enhancing local economies – digital services Enhancing local economies – digital services

Customs in the Internet age Much more than mere automation Case study: Yugoslavia A fresh vision: Single Electronic Window A fresh vision: Single Electronic Window Goal: Unify processes and link agencies Goal: Unify processes and link agencies Result: Open and Standards based Integration “C2C”/“G2G”/“B2B” Result: Open and Standards based Integration “C2C”/“G2G”/“B2B” XML technology is the key to real improvement

Customs in the Internet age Much more than mere automation Case study: Czech Republic Case study: Czech Republic A fresh vision: One Window to Customs and 1 st Non-EU NTCS Pilot A fresh vision: One Window to Customs and 1 st Non-EU NTCS Pilot Goal: Common End-to-End procedures Goal: Common End-to-End procedures Result: Interoperability with EU Countries (C2C and G2G) Result: Interoperability with EU Countries (C2C and G2G) XML technology is the key to real improvement

Inspection, investigation and seizure Counter-terrorism and law enforcement IT solutions helps customs focus on the core mission

Digital Deliveries Digital traffic increasingly takes the place of certain physical deliveries Digital traffic increasingly takes the place of certain physical deliveries Software Software Music and books Music and books Plans, pictures, documents Plans, pictures, documents Reduction in burdens Reduction in burdens Avoid rules that discriminate against digital delivery Avoid rules that discriminate against digital delivery

New economies based on eBusiness Unlimitted extension of the market place (Demand & Supply) for SME Unlimitted extension of the market place (Demand & Supply) for SME Birth of new digital based service industries – reducing the “Brain Drain” Birth of new digital based service industries – reducing the “Brain Drain” Web Hosting/games hosting Web Hosting/games hosting Outsourced IT Services Outsourced IT Services SW development SW development Architectural Design Architectural Design Legal Drafting Legal Drafting

Four winning results Responsiveness to the demands of e-commerce - adoption of XML and other enabling technologies Responsiveness to the demands of e-commerce - adoption of XML and other enabling technologies Enhanced focus on core mission and critical threats Enhanced focus on core mission and critical threats Bridging the economic divide – promoting global market access Bridging the economic divide – promoting global market access Reduced burdens through rules that encourage digital delivery Reduced burdens through rules that encourage digital delivery

Summary Considerations Collaboration between Business, Govt Agencies and Customs Leads to Trade Facilitation and Enhanced Security Secure IT Solutions can be used to provide: Predictable, transparent and cost effective clearance Predictable, transparent and cost effective clearance Accelerate clearance and compliance (fast, frictionless) Accelerate clearance and compliance (fast, frictionless) Relationship building within the trade community Relationship building within the trade community Target fraud / piracy effectively and efficiently Target fraud / piracy effectively and efficiently Nationally supported codes & standards ( GATT 4.1, Kyoto Conv.) Nationally supported codes & standards ( GATT 4.1, Kyoto Conv.) Embrace latest technology standards ( i.e from EDIFACT to XML ) Embrace latest technology standards ( i.e from EDIFACT to XML ) Risk Assessment and Selectivity Controls Risk Assessment and Selectivity Controls Secure Supply Chain Info. easily exchangeable with Customs via XML IT speeds Clearance & Compliance and lowers cost Secure Supply Chain Info. easily exchangeable with Customs via XML IT speeds Clearance & Compliance and lowers cost