1. Trends for collaboration in international trade: building a network of inter-organization information systems Somnuk Keretho, PhD, Kasetsart University and Markus Pikart, UNECE Capacity Building Workshop on Facilitating Cross-Border Paperless Supply Chain 10-11 July 2013 UN Conference Centre, Bangkok

2. Page  2 Objectives of this presentation  To argue that “Trade-related Single Window”* as successfully implemented in many developing economies is not the only information exchange platform that contributes positive results for trade facilitation. –But there are other types of Inter-Organization Information Systems (IOISs) that exist or that should be implemented to provide good benefits for the development of trade in the country. –Interoperability between these different IOISs (including SW) is the key success factor to future supply chain efficiency.  To propose a draft policy framework to provide an environment for establishing collaboration and interoperability between IOISs (building a network and synergy of IOISs). *UN/CEFACT Recommendation No. 33 in Single Window, published in 2005 (almost 10 years ago)

3. Page  3 Topics 1.A structure to classify different inter-organization information systems (IOISs) in international trade 2.The need for interoperability between IOISs 3.Creating the framework for IOIS collaboration 4.Conclusions and recommendations

4. Page  4 Single Window Implementation Worldwide  71 out of 185 economies have implemented Single Window systems.  Positive results from SW implementation have been reported. Electronic systems for trade across borders as reported in the World Bank’s Trading Across Border Report for 2012

5. Page  5 Single Window - to enhance the efficient exchange of information between traders and government.  Single Window is a facility that allows parties involved in trade and transport to lodge standardized information and documents with a single entry point to fulfill all import, export, and transit-related regulatory requirements. If information is electronic, then individual data elements should only be submitted once. UN/CEFACT Recommendation and Guidelines on establishing a Single Window, UNECE, 2005 http://www.unece.org/cefact/recommendations/rec33/rec33_ecetrd352_e.pdf

6. Page  6 Some Observations - several opportunities for further improvement - 1.One size does not fit all - there are many different SW models & approaches, e.g. e-Customs, Customs-Oriented Single Window Trade- and Cargo-Oriented Regulatory Single Window Transport-Oriented Regulatory Single Window, e.g. EU e-Maritime or Maritime Single Window 2.Different models other than regulatory-oriented SWs - Other types of “Inter-Organization Information Systems” (IOISs) exist and emerge for facilitating information flow among different sets of stakeholders (not just for regulatory requirements as in the original UNECE definition of SW), e.g. Port Community Systems (PCSs) e-Navigation e-Freight e-Commerce, etc.

7. Page  7 Some Observations - several opportunities for further improvement - 3.Different inter-organization collaborative platforms are normally created based on some closely-related processes, and consequently they establish different Inter-Organization Information Systems (IOISs), e.g. - those related to port operations, e.g. Port Community Systems - those related to transport services, e.g. e-Freight - those related to transportation regulations, e.g. maritime and clearance of ships like e-Maritime - those related to trade- and cargo-oriented regulations, e.g. NSW for Customs and import/export-related procedures of OGAs 4.Interoperability among those different IOISs has potential benefits, especially those involved with overlapping information among different IOISs along the international Supply Chain.

8. Page  8 Documents related to Rice Exportation that could be electronically improved (from purchase order until the cargo container leaving the sea port) 21.Master Sea Cargo Manifest(17) 22.House Sea Cargo Manifest (37) 23.Export Declaration (114) 24.Good Transition Control List (27) 25.Application for Permission to Export Rice (KP. 2) (24) 26.Sales Report (KP 3) (21) 27.Application for the Collection of the Permit for the Export of Rice (A. 3) (35) 28.Permit for the Export of Rice (A. 4) (35) 29.Application for Certificate of Standards of Product (MS. 13/1) (44) 30.Certificate of Analysis (17) 31.Certificate of Product Standards (MS. 24/1) (45) 32.Certificate of Fumigation (21) 33.Application for Phytosanitary Certificate (PQ. 9) (29) 34.Phytosanitary Certificate (33) 35.Application for Certificate of Origin (42) 36.Certificate of Origin (38) 1.Proforma Invoice (35) 2.Purchase Order (39) 3.Commercial Invoice (51) 4.Application for Letter of Credit (24) 5.Letter of Credit (32) 6.Packing List (25) 7.Cargo Insurance Application Form (20) 8.Cover Note (23) 9.Insurance Policy (24) 10.Booking Request Form – Border Crossing (25) 11.Booking Confirmation – Border Crossing (30) 12.Booking Request Form – Inland Transport (16) 13.Booking Confirmation – Inland Transport (18) 14.Bill of Lading (42) 15.Empty Container Movement Request (TKT 305) (20) 16.Request for Port Entry (TKT 308.2) (27) 17.Equipment Interchange Report (EIR) (24) 18.Container Loading List (28) 19.Container List Message (32) 20.Outward Container List (34) * Number in parenthesis is the no. of data elements 36 Documents involving 15 parties, and more than 1,140 data elements to be filled in A Case Example Regulatory Docs Transport Docs Commercial Docs Currently, Thailand Single Window provides e-services mainly on regulatory documents and associated processes, but port/transport/buy/pay related electronic procedures still need to be improved.

9. Page  9 Pay Prepare for Export Export Transport Load/ Unload Warehouse Operations Port Operations Prepare for Import Import Permits & Certificates for Vessels Traffic Control Vessel Piloting Customs Clearance Other regulatory agencies’ control Ship Buy International Supply Chain 1. Transport Supply Chain 2. Transport Infrastructure Management 3. Transport Regulations 4. Trade Regulations 5. Agriculture Control Layers of Business Process Areas in the international supply chain

10. Page  10 Pay Prepare for Export Export Transport Load/Unload Warehouse Operations Port Operations Prepare for Import Import Permit & Certificates for Vessels Traffic Control Vessel Piloting Customs Clearance Other regulatory agencies’ control Ship Buy International Supply Chain 1. Transport Supply Chain 2. Transport Infrastructure Management 3. Transport Regulations 4. Trade Regulations 5. e-Commerce (e.g. Amazon) e-Freight (e.g IATA e-Freight), Track & Trace Systems Port Community System (PCS), Warehouse Information Systems Maritime SW, e-Navigation, SafeSeaNet Trade SW, e-Customs, NCTS* Agriculture Control *NCTS: New Computerized Transit System Layers of business process areas and related IOIS systems

11. Page  11 Topics 1.A structure to classify different inter-organization information systems (IOISs) in international trade 2.The need for interoperability between IOISs 3.Creating the framework for IOIS collaboration 4.Conclusions and recommendations

12. Page  12 Collaboration between IOISs  To provide the complete set of services for international supply chain, different IOIS systems need to collaborate, e.g. –The links between PCS and trade SW for efficient port operations and regulatory coordination. –The links between e-Freight and PCS  However, it is not necessary to establish collaboration and interoperability between each and every IOIS systems. Instead, IOIS collaboration is only necessary when and where it creates added value for stakeholders.

13. Page  13 A Collaboration Scenario between two IOISs Customs Border Control Food and Veterinary Safety and Security Other OGAs Shipping Lines Terminal Operators Freight Forwarders Transporters Warehouses Regulatory Agencies Transport Operators Related to a Port Interoperability between NSW & PCS NSW PCS Maritime Process Agreement, Harmonization for Data Semantics, Data Privacy/Security, Service Level Agreement, Legal Agreement

14. Page  14 The Network of IOISs for cross-border supply chain Maritime SW Trade SW e-Freight Port Community System (PCS) e-Trade A network of networks of inter-agency collaboration Buyers/Importers Marine Department Ship Piloting Vessel Traffic Safety Ship Agents Sellers/Exporters Importer’s Banks Exporter’s Banks Port Authority Terminal Operator Vessel Operator 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 Freight Forwarders Traders Haulers Vessels Air lines

15. Page  15 Topics 1.A structure to classify different inter-organization information systems (IOISs) in international trade 2.The need for interoperability between IOISs 3.Creating the framework for IOIS collaboration 4.Conclusions and recommendations

16. Page  16 The proposed framework for IOIS colloboration  A demand-driven strategy for IOIS interoperability  Interoperability between two different IOIS requires among others the following: –A vision for collaboration –Rules of engagement –A framework of trust and service level agreements –Common understanding of shared business processes –Common standards for data exchanges

17. Page  17 Layers of Interoperability between IOIS systems Strategic View Business Operation View Technical View 1. Strategic decision by IOIS executives 2. Rules of engagement 3. Service level agreements 4. Business Process Interoperability 5. Sematic Interoperability 6. Syntax and Technical Interoperability (data structures and technical protocols)

18. Page  18 Topics 1.A structure to classify different inter-organization information systems (IOISs) in international trade 2.The need for interoperability between IOISs 3.Creating the framework for IOIS collaboration 4.Conclusions and recommendations

19. Page  19 Conclusions  As the economy develops, there will be more and more IOIS systems establish.  European countries have led the development of IOIS systems. They are now increasing relevnat for Asia and Pacific countries.  IOIS systems can be clustered into layers to closely-related process areas of the international supply chain.  Policy makers need to have a balanced view in implementing IOIS systems in their country to ensure that different IOIS systems cover all process areas of the national trade.  As more IOIS systems are established in the economy, they begin to overlap in terms of stakeholders and services they provide.  Significant benefits can ve realized if collaboration between IOIS systems is established.

20. Page  20 Recommendations for policy makers 1.To recognize the important role of different IOIS systems for the development of trade (e.g. not just regulatory SW) 2.To make a national inventory of IOIS systems in the country, and to identify areas where additional IOIS systems could improve efficiency and security of the international supply chain 3.To negotiate at the international level a set of common principles, rules and best practices for IOIS inteoperability, and to establish these rules as an international standard for IOIS interoperability, and 4.To encourage decision makers of national IOIS systems to adhere to this standard.

21. Thank you for your kind attention Somnuk Keretho, Ph.D. Kasetsart University, Bangkok sk@ku-inova.org Markus Pikart UNECE, Geneva Markus.Pikart@unece.org