1. Regional Trade Facilitation APEC BUSINESS TRAVEL CARD SCHEME

2. APEC Business Travel Card Scheme
This presentation covers the following topics:
How the ABTC Scheme Has Grown
Integrity of the Scheme
The ABTC Scheme Today
ABTC Operating Framework
How the APEC card Scheme Works
Establishing In-Country Operation

3. How the ABTC Scheme Has Grown
‘Pathfinder’ approach
trial in 1997 with three economies (South Korea, The Philippines and Australia).
Now 16 economies
allows economies to join when they are able
Technical assistance given to developing economies
Low-tech, low resource
THE ABTC SCHEME IS THE ORIGINAL ‘PATHFINDER’ PROJECT. THIS REFERS TO THE FACT THAT THE ABTC SCHEME WAS STARTED WITH A TRIAL INVOLVING JUST 3 ECONOMIES: KOREA, THE PHILIPPINES AND AUSTRALIA.
ONCE IT WAS SUCCESSFULLY PILOTED, AND ANY TECHNICAL PROBLEMS WERE FIXED, THE SCHEME WS OPEN TO OTHERS TO JOIN, AS SOON AS THEY HAD THE CONFIENCE AND CAPACITY TO MANAGE A LOCAL OPERATION.
THE ‘PATHFINDER APPROACH’ RECOGNISES THAT APEC IS A DIVERSE GROUP OF ECONOMIES, ECONOMICALLY AND SOCIALLY, WITH DIFFERING CAPACITIES TO IMPLEMENT TRADE FACILITATION AND LIBERALISATION OBJECTIVES. RATHER THAN ALLOWING THE DEVELOPMENT OF A LOWEST COMMON DENOMINATOR OUTLOOK, THE PATHFINDER APPROACH IS DESIGNED TO ENABLE THOSE ECONOMIES WHICH ARE ABLE TO MOVE FASTER ON SOME INITIATIVES TO PROCEED TO DO SO, THUS BUILDING THE MOMENTUM WITHIN APEC TO WIDER IMPLEMENTATION, AS QUICKLY AS ECONOMIES’ CIRCUMSTANCES AND CAPACITIES’ ALLOW.
THE SUCCESSFUL EXPANSION OF THE SCHEME CAN BE ATTRIBUTED TO THIS PROCESS WHICH IS CHARACTERISED BY: THE TRIAL OF THE SCHEME BY A FEW ECONOMIES WHICH PROVED ITS VIABILITY; AN OPEN, COOPERATIVE APPROACH WHICH BUILDS CONFIDENCE AND IMPROVES OPERATIONAL STRENGTH; AND THE PROVISION OF TECHNICAL ASSISTANCE, TRAINING AND SOME INITIAL FUNDING TO FACILITATE IMPLEMENTATION OF LOCAL OPERATIONS.
THE DELIBERATE DECISION TO KEEP THE SCHEME’S OPERATING REQUIREMENTS TO LOW TECH, LOW RESOURCE REQUIREMENTS, HAS ENABLED DEVELOPING ECONOMIES TO PARTICIPATE IN THE SCHEME, WITH THE CONFIDENCE THAT THEY CAN MAINTAIN ITS OPERATION.

4. Integrity
All participating economies maintain the integrity of the scheme.
Ensure all applicants are bona fide business travellers.
The passport remains the primary travel document
All ABTC holders are required to present a valid passport for immigration processing.
The scheme is perceived by business and governments to have high integrity
home government checks and two documents (card and passport).
THE INTEGRITY OF THE SCHEME IS THE RESPONSIBILITY OF EACH PARTICIPATING ECONOMY TO MAINTAIN. ALL ECONOMIES MUST ENSURE THAT THE APPLICANTS THEY REFER FOR PROCESSING BY OTHER ECONOMIES ARE GENUINE BUSINESS TRAVELLERS (WITH NO RECORDED CRIMINAL CONVICTIONS).
THE SECURITY OF THE SCHEME IS EXCELLENT, AS THE PASSPORT REMAINS THE PRIMARY TRAVEL DOCUMENT. IT IS NOT POSSIBLE TO TRAVEL ON THE ABTC ALONE.
IN ORDER FOR THE SCHEME TO CONTINUE AND GROW IT IS ESSENTIAL THAT STAKEHOLDERS HAVE CONFIDENCE IN THE INTEGRITY OF THE SCHEME. THERE HAS NEVER BEEN A CASE OF FRAUD LINKED TO THE SCHEME.

5. The ABTC Scheme Today
In the past 18 months the number of participating economies has doubled (eight economies in early 2003, to 16 economies).
The systems that support the scheme are still evolving.
The scheme is still based on the same software developed for the original trial of three economies in 1997.
Major upgrades to ABTC systems are underway.
SOME ABTC STATS (CURRENT IN MID-SEPTEMBER, 2004)
THERE ARE AROUND 6000 VALID CARDS IN CIRCULATION
THIS REPRESENTS A GROWTH OF 225% WHEN COMPARED TO THE PREVIOUS YEAR.
BELOW ARE APPROXIMATE FIGURES FOR ACTIVE CARDS, BROKEN DOWN BY ECONOMY:
Australia 2600
Brunei Darussalam 10
Chile 40
China, People's Republic of 10
Chinese Taipei 400
Hong Kong, China 850
Japan 450
Malaysia 150
New Zealand 220
Peru 30
Philippines 200
Republic of Indonesia 10
Republic of Korea 850
Thailand 200
THE SCHEME IS GROWING VERY RAPIDLY:
IN EARLY 2003 THERE WERE EIGHT ECONOMIES PARTICIPATING IN THE SCHEME. THERE ARE NOW 16 ECONOMIES IN THE SCHEME, INCLUDING 14 FULLY OPERATIONAL ECONOMIES, AND TWO OTHERS SOON TO COMMENCE OPERATIONS.
IN THE CALENDAR YEAR 2004, AUSTRALIA’S APPLICATION RATE HAS GROWN BY 300% (COMPARED TO THE RATE IN 2003).

6. Growth of the Scheme
The graph shows the rapid rise in global application rates.
Year Number of applications
2004* 4800

7. ABTC Operating Framework
The ABTC Operating Framework sets out the key principles and procedures of the scheme.
All participating economies agree to abide by the ABTC Operating Framework on a ‘best-endeavours’ basis.
The ABTC Operating Framework is not legally binding (it does not have treaty status).
The preservation of national sovereignty is the key principle underpinning the ABTC scheme
this is embodied in the ABTC Operating Framework
ABTC OPERATING FRAMEWORK
THE SCHEME’S OPERATION IS BASED ON AN AGREED SET OF PRINCIPLES, PROCEDURES AND STANDARDS (THE ‘ABTC OPERATING FRAMEWORK’), WHICH PROVIDES ECONOMIES WITH A FRAMEWORK FOR IMPLEMENTATION AND MANAGEMENT OF THE SCHEME IN THEIR OWN ECONOMY.
THE PRE-CLEARANCE SYSTEM ENSURES THAT EACH ECONOMY MAINTAINS THEIR RIGHT TO CONTROL MOVEMENTS THROUGH THEIR BORDERS. THE DETAILS OF CARD APPLICANTS, ONCE VETTED BY THE HOME ECONOMY, ARE ELECTRONICALLY SENT TO ALL OTHER PARTICIPATING ECONOMIES FOR PRE-CLEARANCE. ECONOMIES ARE ABLE TO CHECK APPLICANTS’ DETAILS AGAINST THEIR ALERT LISTS AND OTHER DATABASES, EFFECTIVELY TO PRE-CLEAR THE APPLICANT FOR ENTRY.
ECONOMIES MAY UNDERTAKE ANY FURTHER CHECKS THEY CONSIDER NECESSARY AND REFUSE PRE CLEARANCE, WITHOUT PROVIDING A REASON, IF THEY CHOOSE TO DO SO. IN THE CASE OF A REFUSAL, THE HOME ECONOMY MAY STILL PRINT A CARD, BUT IT WILL NOT SHOW VALIDITY FOR ANY ECONOMIES THAT HAVE REFUSED.
THE SIMPLE PRE–CLEARANCE SYSTEM IS A UNIQUE FEATURE OF THE SCHEME. IT PROVIDES EACH PARTICIPATING ECONOMY WITH A HIGHER DEGREE OF INTEGRITY ASSURANCE AS CARDHOLDERS HAVE BEEN CHECKED BOTH AGAINST THEIR OWN ECONOMY’S NATIONAL POLICE RECORDS AND ALSO AGAINST THE ALERT LISTS OF THE OTHER PARTICIPATING ECONOMIES. THIS ‘DOUBLE VETTING’ PROCESS ADDS CONFIDENCE THAT CARDHOLDERS ARE BONA FIDE BUSINESS PEOPLE. TO DATE, THERE HAVE BEEN NO REPORTED INCIDENCES OF FRAUD.

8. ABTC Operating Framework (cont.)
The Operating Framework provides a set of principles and standards on such operational matters as:
card eligibility criteria
service standards
card manufacture standards (basic format of card)
THE STANDARDS PROVIDE A HIGH LEVEL OF CONSISTENCY, PREDICTABILITY, TRANSPARENCY, AND ARE ALSO CONSISTENT WITH THE APEC PRINCIPLE OF SIMPLIFICATION, THAT IS, THE RULES AND PROCEDURES ARE NO MORE RESTRICTIVE OR BURDENSOME THAN IS NECESSARY.
THE FRAMEWORK SPECIFIES BASIC CARD ELIGIBILTITY CRITERIA: APPLICANTS MUST BE A PASSPORT HOLDER OF A PARTICIPATING ECONOMY (OR PERMANENT RESIDENTS IN THE SPECIAL CASE OF HONG KONG (CHINA)); THEY MUST BE A GENUINE BUSINESS PERSON WHO TRAVELS FREQUENTLY WITHIN THE REGION FOR TRADE AND INVESTMENT PURPOSES; AND
THEY MUST NOT HAVE A CRIMINAL CONVICTION OR CHARGES PENDING AGAINST THEM.
SOME PARTICIPATING ECONOMIES ALSO REQUIRE APPLICANTS TO BE ENDORSED BY A LEADING BUSINESS ORGANISATION WITHIN THEIR ECONOMY, SUCH AS A NATIONAL CHAMBER OF COMMERCE, AS PART OF THE VETTING PROCESS.
SERVICE STANDARDS
THE ABTC OPERATING FRAMEWORK SETS A TARGET OF 14 DAYS FOR THE PROCESSING OF FOREIGN PRE-CLEARANCE REQUESTS. WHERE ADDITIONAL INFORMATION IS REQUESTED FROM THE HOME ECONOMY, THE SERVICE STANDARD IS 21 DAYS.
CARD MANUFACTURE STANDARDS
THE ABTC CONFORMS TO ICAO STANDARDS, AND CONTAINS A STANDARD MRZ (MACHINE READABLE ZONE).

9. How the Scheme Works
Economies exchange ABTC processing data via an automated computer network.
Data exchange includes:
requesting clearance
receiving clearance
requesting card production
Data is exchanged via a central ‘hub’ computer.
All data is encrypted during transfer. .
Each economy maintains a database of ABTC applicants.
The details of home economy applicants are manually keyed into the database.
The details of foreign applicants are automatically received during data exchange and imported into the database for vetting and pre-clearance.
Certain home-economy applicant information is not sent to other economies, and resides in the home economy database only.
Data transfers occur automatically, no human intervention is necessary.
To ensure security, data exchange is conducted over a leased network (the SITA network, which is also used by major airlines). While in transit all data is encrypted with 128 bit encryption.

10. ABTC Automated Network
Indonesia
Chile
China
Brunei
Philippines
Hong Kong
Malaysia
Australia
New Zealand
Thailand
Japan
Korea
Chinese
Taipei
Peru
Automatic
Network
Hub
This diagram shows the structure of the network:
Each economy regularly dials into the SITA network and automatically transfers the latest data to the network ‘hub’.
The hub arranges to send the received data to all other economies in the scheme when they next connect to the network.
Data is imported into the database of each economy for action.
NOTE: The network hub is located in Australia.

11. Pre-clearance Process
Home economy
Business person
Participating economies
Application
Card
Pre-clearance
Biodata
Economies retain their right to control the movement of people through their borders.
Economies are not required to give reasons for refusing pre-clearance.
Economies benefit from increased integrity checking by both the home economy and other participating economies.
THE DIAGRAM GIVES A VISUAL EXPLANATION OF THE PRE-CLEARANCE PROCESS WHICH ALLOWS THE SCHEME TO FUNCTION WHILST MAINTAINING NATIONAL SOVEREIGNTY. IT SHOWS THE FOLLOWING FLOW OF INFORMATION:
BUSINESS PERSON SENDS APPLICATION TO HOME ECONOMY.
HOME ECONOMY SENDS A PRE-CLEARANCE REQUEST (BIODATA) TO ALL OTHER ECONOMIES IN THE SCHEME (AFTER LOCAL VETTING).
PARTICIPATING ECONOMIES THEN RESPOND TO THE HOME ECONOMY, PROVIDING EITHER A PRE-CLEARANCE PERMISSION OR REFUSAL.
HOME ECONOMY ISSUES A CARD WITH VALIDITY FOR ALL ECONOMIES THAT GRANTED PRE-CLEARANCE PERMISSION.
THE ONLY ECONOMY WHICH CAN ‘VETO’ THE ISSUANCE OF A CARD TO A GIVEN APPLICANT IS THE HOME ECONOMY. IF ANY OTHER ECONOMY REFUSES CLEARANCE THE HOME ECONOMY MAY STILL ISSUE A CARD, ALBEIT WITHOUT VALIDITY FOR ANY REFUSING ECONOMIES.
WHILE NORMAL VISA APPLICANTS ARE ONLY VETTED BY THE DESTINATION COUNTRY, APPLICANTS FOR THE ABTC ARE FIRST OF ALL SCREENED BY THE HOME ECONOMY, THEN BY THE DESTINATION ECONOMY. THIS ‘DOUBLE VETTING’ PROCESS ADDS GREATLY TO THE INTEGRITY OF THE SCHEME.

12. Establishing In-Country Operation
Decision to join
Determine responsible agencies
Pass required legislation
Establish eligibility criteria
Set fees and charges
Develop operational procedures
Design Application Form/Required Documentation
Set up Hardware, Software and Staff training
Commence operations
Promote card
SOME OF THE KEY POINTS WILL BE DISCUSSED IN DETAIL IN THE FOLLOWING SLIDES.

13. Decision to Join
APEC economies must make a careful decision as to whether they:
can be an equal partner in the scheme
have the necessary resources to meet member expectations
have the necessary legislative framework
OFTEN AN ECONOMY WILL ANNOUNCE THE INTENTION TO JOIN BEFORE OFFICIALLY JOINING THE SCHEME. CURRENTLY VIETNAM HAS ANNOUNCED THE INTENTION TO JOIN THE SCHEME, BUT HAS NOT OFFICIALLY JOINED.
OFFICIAL JOINING OF THE SCHEME COMMENCES WITH A SIGNING CEREMONY, USUALLY AT A MEETING OF THE BMG AT AN APEC SOM (SENIOR OFFICIALS MEETING).
THIS IS NOT TO BE MISTAKEN WITH OPERATIONAL COMMENCEMENT IN THE SCHEME, WHICH USUALLY OCCURS MONTHS, SOMETIMES EVEN A YEAR OR TWO AFTER OFFICIAL JOINING. DURING THIS PERIOD ECONOMIES WILL MAKE ANY NECESSARY LEGISLATIVE CHANGES, ESTABLISH THE SPECIFIC PROCEDURES FOR VETTING OF ABTC APPLICANTS, AND MAKE RESOURCES AVAILABLE FOR PROCESSING.
FORMALLY SIGNING ONTO THE SCHEME IS MOSTLY A SYMBOLIC GESTURE BY SIGNATORIES TO EXPRESS THEIR INTENTION TO ABIDE BY THE POLICIES SET OUT IN THE OPERATING FRAMEWORK ON A BEST ENDEAVOURS BASIS. THIS AGREEMENT DOES NOT HAVE TREATY STATUS, AND CANNOT BE ENFORCED.

14. Determine the Responsible Agencies
Each economy decides which agencies, government or private, will be involved in processing ABTC applicants.
Special consideration should be given to which agencies will be:
processing home economy applicants;
processing pre-clearances of foreign applicants; and
border processing.
In Australia, there are four government agencies involved in ensuring the ABTC scheme operates smoothly:
Department of Immigration and Multicultural and Indigenous Affairs (DIMIA)
the CrimTrac Agency (CrimTrac)
Australian Customs Service (ACS)
Australian Passports Office
DIMIA has primary responsibility for the ABTC scheme, with the other agencies acting as service providers to DIMIA.
CrimTrac is an agency within the Attorney-General’s Department that maintains a national name index of people with criminal convictions or legal action pending. CrimTrac checks the names of Australian ABTC applicants and provides results to DIMIA.
The Australian Customs Service provides the primary line officers at Australia’s airports, including processing ABTC holders.
The Australian Passports Office provides DIMIA with access to the Australian passports database so details of ABTC applicants can be checked and verified.

15. Pass Required Legislation
Make any necessary changes to their legislation, policy and procedures to:
enable cardholders to obtain pre-cleared entry and stay
process foreign pre-clearance requests without receiving a fee
accommodate the standards of the Operating Framework
ECONOMIES MUST ENSURE THAT THEIR IMMIGRATION LEGISLATION CAN MEET THE REQUIREMENTS OF THE SCHEME. THE MAIN REQUIREMENTS ARE THAT CARDHOLDERS ARE ABLE TO ENJOY MULTIPLE ENTRIES OF AT LEAST 60 DAYS FOR A PERIOD OF THREE YEARS.
THESE CONDITIONS MUST BE AVAILABLE TO PASSPORT HOLDERS FROM ALL PARTICIPATING COUNTRIES, AS LONG AS THEY HOLD A VALID CARD. AS HONG KONG PERMANENT RESIDENTS ARE ELIGIBLE TO APPLY, CARDHOLDERS WILL FREQUENTLY HOLD PASSPORTS OF NON-APEC COUNTRIES, AND THESE PEOPLE MUST BE ACCOMMODATED EQUALLY.
OTHER LEGISLATIVE REQUIREMENTS ARE THAT NO FURTHER VISA APPLICATION IS REQUIRED BEYOND THE ORIGINAL APPLICATION FOR THE ABTC, AND NO VISA FEE MAY BE CHARGED FOR PRE-CLEARANCES TO FOREIGN CARDHOLDERS (FEES MAY ONLY BE CHARGED TO HOME ECONOMY APPLICANTS).
For example, every non-citizen entering Australia requires a visa (including ABTC holders). Australia has used existing legislation to process ABTC applicants for a short-term business visa (456), or in the case of New Zealand citizens a Special Category Visa.
Australia needed to make technical changes to our existing legislation and policy to reflect the way the ABTC scheme operates, including that:
details of applicants are received electronically
no visa application fee is payable
only certain passport holders are eligible to apply
ABTC applicants are considered to be bona fide business people under policy

16. Importance of the ABTC
Shows that the APEC community is working co-operatively in the spirit of APEC
Builds confidence and capacity by enhancing:
integrity of entry arrangements
transparency of entry requirements
legal, organisational and technical infrastructure
Sound base to move forward on other co-operative BMG trade facilitation initiatives.
IMPORTANCE OF THE ABTC
THE ABTC SCHEME IS UNIQUE INITIATIVE WHICH SHOWS THAT THE APEC COMMUNITY IS WORKING COLLWECTIVELY AND COOPERATIVELY TO FACILTATE TRADE AND INVESTMENT ACTIVITY.
FOR MANY ECONOMIES, JOINING THE SCHEME HAS ASSISTED IN BUILDING ECONOMIES’ CONFIDENCE AND CAPACITY THROUGH:
ENHANCING THE INTEGRITY OF THEIR ENTRY ARRANGEMENTS, THROUGH THE PRE-CLEARANCE AND VETTING PROCEDURE
THE EXCHANGE OF INFORMATION ON IMMIGRATION ARRANGEMENTS. IN ADDITION, THE SHARING OF INFORMATION AND TECHNICAL EXPERTISE IS A MAJOR PLUS FOR DEVELOPING ECONOMIES AS IT SERVES TO BUILD THEIR IMMIGRATION CAPACITY, THEIR CONFIDENCE IN THE SCHEME AND THE CONFIDENCE OF OTHER ECONOMIES IN THEIR CAPACITY TO MANAGE THE SCHEME EFFECTIVELY;
THE REQUIREMENT FOR TRANSPARENCY OF ECONOMIES’ ABTC ARRANGEMENTS; AND
THE REQUIREMENT FOR LEGAL, ORGANISATIONAL AND TECHNICAL INFRASTRUCTURAL ENHANCEMENTS TO ACCOMMODATE A LOCAL ABTC OPERATION.
THE SCHEME HAS ALSO PROVIDED A SOUND BASE ON WHICH TO MOVE FORWARD ON OTHER CO-OPERATIVE TRADE FACILITATION INITIATIVES WITHIN THE BUSINESS MOBILITY GROUP.

17. In Summary
ABTC serves the needs of the business community, providing streamlined entry while maintaining integrity
ABTC enhances economies’ capacity to implement streamlined, efficient immigration practices
Pathfinder approach has generated a high level of cooperation and goodwill within the BMG and APEC.
Economies maintain sovereignty.
IN SUMMARY
THE APEC BUSINESS TRAVEL CARD SCHEME IS AN INITIATIVE WHICH IS SUCCESSFULLY SERVING THE NEEDS OF BUSINESS PEOPLE FOR STREAMLINED ENTRY TO ECONOMIES FOR TRADE AND INVESTMENT PURPOSES. THE SCHEME ALSO PRESERVES THE RIGHTS OF GOVERNMENTS TO MAINTAIN CONTROL OVER WHO ENTERS THEIR BORDERS AND ENHANCES THE INTEGRITY OF PASSENGER MOVEMENTS.
THE OPEN CO-OPERATIVE APPROACH TO THE IMPLEMENTATION OF THE SCHEME ASSISTS IN ENHANCING ECONOMIES’ CAPACITY TO IMPLEMENT STREAMLINED, EFFICIENT IMMIGRATION PRACTICES.
THE PATHFINDER APPROACH TO EXPANDING THE SCHEME’S MEMBERSHIP AND THE SCHEME’S VERY SIMPLICITY, HAVE ENHANCED THE LEVEL OF COOPERATION AND GOODWILL WITHIN THE BUSINESS MOBILITY GROUP AND THE REGION AS A WHOLE.
MOST IMPORTANTLY, THE ABTC AND OTHER VARIOUS BMG INITIATIVES ARE ALL PROGRESSED IN ACCORDANCE WITH THE BMG’S CAPACITY BUILDING STRATEGY - STANDARDS ARE FIRST ESTABLISHED, THEN AGREED BY ALL ECONOMIES, DEVELOPED AND DEVELOPING, THEN FINALLY IMPLEMENTED BY ALL ECONOMIES (ON A BEST-ENDEAVOURS BASIS).
CONSISTENCY, CO-OPERATION AND TRANSPARENCY ARE KEY DRIVERS OF SUCCESS.

18. Further Questions BACKGROUND THAT DIDN’T FIT ANYWHERE ELSE
IN THE MID-NINETIES, APEC LEADERS FORMALLY RECOGNISED THAT THE MOVEMENT OF BUSINESS PEOPLE WAS A SIGNIFICANT COMPONENT IN ENHANCING TRADE AND INVESTMENT, PARTICULARLY GIVEN THE GLOBALISATION OF PRODUCTION, GROWING DEMAND FOR SERVICES AND SKILLED PERSONNEL, AND CRITICAL IMPORTANCE OF INVESTMENT IN STIMULATING ECONOMIC GROWTH.
REDUCING BARRIERS TO THE FREE FLOW OF TRADE, INCLUDING UNDULY RESTRICTIVE TEMPORARY ENTRY REGULATIONS AND ADMINISTRATIVE RED TAPE, IS ONE OF THE KEY OBJECTIVES OF APEC. THE CHALLENGE FOR GOVERNMENTS IS TO FIND WAYS TO MAKE THAT HAPPEN BETTER, AND, AT THE SAME TIME, ENSURE THE SECURITY AND INTEGRITY OF OUR BORDERS.
THE APEC BUSINESS MOBILITY GROUP (BMG) WAS ESTABLISHED IN 1997 WITH A CLEAR TASK: TO ADDRESS CALLS BY THE APEC BUSINESS COMMUNITY FOR:
SIMPLIFIED SHORT-TERM ENTRY ARRANGEMENTS FOR BUSINESS VISITORS
STREAMLINED AND SIMPLIFIED PROCESSING FOR TEMPORARY BUSINESS RESIDENCE; AND
TRANSPARENT REGULATORY ARRANGEMENTS TO ALLOW FOR SEAMLESS CROSS BORDER MOVEMENT.