1. APEC Initiative on Paperless Trade YounKyong KANG Deputy Director, E-Business Policy Division Ministry of Commerce, Industry & Energy Republic of Korea

2. 1 Contents What is APEC? APEC Initiative on Paperless Trade Benefits and Challenges Strategies to move forward

3. 2 What is APEC?(1) Membership : 21 economies in AP regions Goal : to enhance economic growth and prosperity for the region by - trade and investment liberalization - business facilitation - economic and technical cooperation Established in 1989

4. 3 Ministerial Meeting Structure Sectoral Ministerial Meetings Committee on Trade and Investment Economic Committee SOM Committee on ECOTECH Leaders’ Meeting Senior Officials Meeting ( SOM ) APEC Business Advisory Council

5. 4 Contents What is APEC? APEC Initiative on Paperless Trade Benefits and Challenges Strategies to move forward

6. 5 Vision APEC Blueprint for Action on Electronic Commerce(1998) - Ministers agreed “that member economies should endeavor to reduce or eliminate the requirement for paper documents needed for customs and other cross-border trade administration and other documents and messages relevant to international sea, air and land transport, “Paperless Trading”, where possible, by 2005 for developed and 2010 for developing economies, or as soon as possible thereafter” The APEC Trade Facilitation Principles in 2002

7. 6 ECSG (Electronic Commerce Steering Group) Privacy Sub-group Paperless Trade Sub-Group Tel SCCP ATCWG SOM

8. 7 How APEC Move from Paper to Paperless Trading? - (1) IAP - Paperless Trading IAP(Individual Action Plan) - The 11th Ministerial Meeting in 1999 Auckland The Template of Paperless Trading Individual Action Plan

9. 8 - e-C/O (electronic Certificate of Origin) - e-SPS (Electronic Sanitary and PhytoSanitary Certificate) How APEC Move from Paper to Paperless Trading? - (2) Pathfinder Projects -

10. 9 Pathfinder Project (1) Electronic Certificates of Origin Implications Between Singapore and Korea –Confidentiality, authenticity and non- repudiation –Potential savings of $US100/certificate (Crimsonlogic, Singapore)

11. 10 Implications Between Australia and New Zealand - Australian Quarantine and Inspection Service and New Zealand Food Safety Authority - especially with meat shipment Pathfinder Project (2) Electronic SPS Certificate

12. 11 Contents What is APEC? APEC Initiative on Paperless Trade Benefits and Challenges Strategies to move forward

13. 12 Benefits Savings to business –Communication cost reduction –Fewer errors –Lower interest payments on trade finance –Efficient supply chains Savings for government agencies, banks, insurers and shipping companies

14. 13 Challenges (1) Lack of legal, institutional infrastructure - some economies lack of electronic transaction law - some economies lack of electronic signature law - lack of mutual recognition of electronic signature Reluctance to changes - too many stakeholders - banks

15. 14 Challenges(2) Pathfinder Project - e-C/O(electronic Certificate of Origin) International message standard for e-C/O - e-SPS(electronic Sanitary and PhytoSanitary Certificate) lack of awareness

16. 15 Contents What is APEC? APEC Initiative on Paperless Trade Benefits and Challenges APEC Strategies to move forward

17. 16 Strategies to Move Forward(1) Initiating new pathfinders for other priority areas - harmonize customs declaration items among interested member economies(CTI/SCCP) - a new Pathfinder on cross-border electronic transmission of customs clearance data(CTI/SCCP) - discussing cross-recognition of PKI domains Intensifying capacity building activities - ECSG sponsors assessment and benchmarking of current practices in paperless trading - training program, workshop etc.

18. 17 ECSG GBDe ABAC Asia PKI Forum PAA Strategies to Move Forward (2) l Collaborating with other international organizations - especially with UN/CEFACT (the standards of e-SPS, e-C/O) Strengthening of public private partnership