Copyright 2011 Private & Confidential 1 Single Window = Trade Facilitation = Reducing Trade Cost = Increasing Govt Revenue Regional Training Workshop on.

Copyright 2011 Private & Confidential 1

Single Window = Trade Facilitation

= Reducing Trade Cost= Increasing Govt Revenue

Regional Training Workshop on Trade Facilitation, Infrastructure & Trade Costs in ESCWA Region

8 –9 April 2013, Dubai

Jonathan Koh Director

Trade Facilitation Centre of ExcellenceCrimsonLogic Pte. Ltd.


IntroductionIntroduction


CrimsonLogic is a trusted partner to governments around the world.

• Design and run innovative and sustainable services for governments to serve their citizens more effectively and seamlessly.

• Work closely with our customers to enhance their e-services continually, to drive adoption and usage of these e-services.

Shareholders

International Enterprise Singapore(an statutory board of Ministry of Trade & Industry)

Civil Aviation Authority of Singapore

PSA Corporation

Singapore Telecoms

International Enterprise Singapore(an statutory board of Ministry of Trade & Industry)

Civil Aviation Authority of Singapore

PSA Corporation

Singapore Telecoms


CrimsonLogic Trade Facilitation PlatformsCrimsonLogic Trade Facilitation Platforms

Free Zone

ManagementSystem

Single Electronic Window System

Strong Infrastructure and Security Management Policies for reliable service delivery

Strong Domain based software components

PortCommunity

System

CrimsonLogic Trade Facilitation

Platforms

CustomsManageme

ntSystem


CrimsonLogic’s International Track RecordCrimsonLogic’s International Track Record


What is Trade Facilitation?


Trade Development StrategyTrade Development Strategy

Trade Facilitation should be part of an overall trade development strategy whose purpose is to develop and expand sustainable trade flows to support the country’s

economic development.


WTO Definition - The simplification and harmonisation of international trade procedures

UN/CEFACT Definition - The simplification, standardisation and harmonisation of procedures and associated information flows required to move goods from seller to buyer and to make payment”

Principles of Trade Facilitation Simplification is the process of eliminating all unnecessary elements and duplications in formalities, process and procedures

Harmonisation is the alignment of national formalities, procedures, operations and documents with international conventions, standards and practices

Standardisation is the process of developing internationally agreed format for practices and procedures, documents and information.

Trade FacilitationTrade Facilitation


What is Trade Facilitation?What is Trade Facilitation?

Regulations

Procedure

Documentation

Movement of Goods

Compliance

Transportation

Simplify

Standardize

Transparent

Secure

Government Industry


Trade Facilitation = reducing the Speed bumps in the global

supply chain

$$$$$$


A cting as the impetus, cat alyst and instrument of Tr

ade.

Further attraction for For eign Direct Investment (F

DI) and relocation

Stimulant for trade volume

Connectivity to major port s of the world

Facilitation for entry into Globalisation and Interna

tional trade

- Long term competitivene ss in trade facilitation

Trade Facilitation ImpactTrade Facilitation Impact


Value DriversValue Drivers for Trade Facilitation for Trade Facilitation


World Bank Doing Business – Trading Across Borders World Bank Doing Business – Trading Across Borders 20132013

Economy Name RankDocuments

to export (number)

Time to export (days)

Cost to export (US$ per

container)

Documents to import (number)

Time to import (days)

Cost to import (US$ per

container)East Asia & Pacific .. 6 21 923 7 22 958Middle East & North Africa .. 6 19 1,083 8 22 1,275Singapore 1 4 5 456 4 4 439Hong Kong SAR, China 2 4 5 575 4 5 565Korea, Rep. 3 3 7 665 3 7 695Denmark 4 4 5 744 3 5 744United Arab Emirates 5 4 7 630 5 7 590Saudi Arabia 36 5 13 935 5 17 1,054Djibouti 41 5 18 836 5 18 911Morocco 47 6 11 577 8 16 950Oman 49 8 10 745 8 9 680Jordan 52 5 13 825 7 15 1335Bahrain 54 6 11 955 7 15 995Qatar 58 5 17 885 7 17 1,033Egypt, Arab Rep. 70 8 12 625 9 13 755Lebanon 95 5 22 1080 7 30 1365Kuwait 113 7 16 1,085 10 19 1,242West Bank and Gaza 114 6 23 1,310 6 38 1,295Syrian Arab Republic 125 8 15 1,190 9 21 1,625Sudan 153 7 32 2,050 7 46 2,900Afghanistan 178 10 74 3,545 10 77 3,830Iraq 179 10 80 3,550 10 82 3,650


So what’s“Single Window”

Copyright 2011 Private & Confidential 14Copyright 2011 Private & Confidential

“A lot of times, people don’t

know what they want until

you show it to them.”

Steve Jobs, Businessweek, 1998


What is a Single WindowWhat is a Single Window

“A 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”.

UNECE Recommendation 33


Integrates / Integrates / Interface with Interface with

ALL Govt ALL Govt Regulatory Regulatory AgenciesAgencies

Risk Analysis / Risk Analysis / Management Management

for all for all authoritiesauthorities

Serve a the Serve a the national secure, national secure,

trusted trusted Information Information Broker/ VANBroker/ VAN

Entire Trade Entire Trade Facilitation Facilitation

Value ChainsValue Chains

National Single WindowNational Single Window


Single Window for Trade FacilitationSingle Window for Trade Facilitation

Integrated Trade Facilitation Strategy – including Single Window

Trade Facilitation - Facilitate: to make

trade easy or easier

Fundamental component of trade and

economic development strategy (TF in

WTO etc)

Single Window is not an end in itself

SW is not a technology system!


Single Window –Reducing Trade Cost


Real Focus: Real Focus: Reducing the economic impact of regulatory Reducing the economic impact of regulatory

processes on cross border tradeprocesses on cross border trade

Each additional day of delay (e.g. because of trade logistics procedures) reduces trade by at least 1%Source: Simeon Djankov, Caroline Freund, and Cong S. Pham. (2007). Trading on Time. Washington, D.C.: World Bank.

Direct and Indirect Cost from import/export-related procedures and required documents is up to 15% of product cost.Source: OECD. (2003). Quantitative Assessment of the Benefits of Trade Facilitation. Paris: OECD Publications


Proof of SW in Reducing Trade….Proof of SW in Reducing Trade….

Proof of SW in Reducing Trade Cost are mostly

empirical

There are very few studies conducted to show

the direct contribution of SW in reducing trade

cost


Reducing Trade Cost – Korea’s uTrade HubReducing Trade Cost – Korea’s uTrade Hub

Source: Rama Ha, KTNet Presentation 18 Nov 2012


Reducing Trade Cost – Korea’s uTrade HubReducing Trade Cost – Korea’s uTrade Hub

Source: UNNext Brief #3 , May 2010 - Case of Korea's National Paperless Trade Platform uTradeHub


In Singapore, the advantage gained from the adoption

and application of the Single Window is the reduction

and lowering of business cost.

Overall, businesses can expect to save about S$75 M

(USD60.4M) over a period of 10 years.

Reducing Trade Cost – Singapore’s TradeNetReducing Trade Cost – Singapore’s TradeNet

Source: Speech by Singapore Minister of State for Finance and Transport, 17 Jan 2006https://www.tradexchange.gov.sg/tradexchange/default.portal?_nfpb=true&_nfls=false&_pageLabel=main_hidden&_type=hidden&_page=17july2006openingaddress&_action=view


What do we learn from these What do we learn from these examples ? examples ?

There are concrete savings … through Direct and Indirect Cost Savings

Savings are often empirically obtained

Few countries with SW conducted comprehensive studies on the cost savings from SW


Single Window –Increasing Govt / Customs Revenue


How Ghana’s SW increase Trade Facilitation Journey


Ghana Community Network (GCNet) is a Public Private Partnership (PPP) mandated by the Ministry of Trade and Industry to Implement and manage a Single Window system

GCNet was created as a JV company :

SGS (60%)Customs Excise and Preventive Service CEPS (20%)Ghana Shippers Council (10%)2 local banks (5% each)

Incorporated in Nov 2000

Formal launch of the GCNet Service in Dec 2002

70 employees (including Network, Systems, IT Security, Ops Support, Call Centre, Training Depts)

Ghana Community Network


Ghana Community Network in Figures

Single Window system processing 99% of official trade

Electronic Customs Declaration - 520,000 per annumElectronic Manifest submissionProcessing of Permits and Exemptions & Import Declaration

Operational in all main points of entry - 2 seaports, 1 int’l airport, 4 land borders.

All active Declarants connected – 1200 Clearing Agents and Self Importer located at 625 locations

All active Shipping (80) and Forwarding Agents (100) connected

560 customs terminals deployed covering all key functions – eg doc review, examination, post-event, audit, management, tariff etc…

1200 customs officers trained and active using the system

105 employees (Network dept, Systems Dept, IT security Dept, Ops support, Call Centre, Training)


Ghana - Increase in Customs Revenue

Immediate substantial decrease in clearance time – factor of 5

Immediate substantial increase in Government revenue – First year, increase of 35% year-on-year; subsequent years increase of 20%.

Recognised as best practice by WCO and World Bank

Total Revenue - Tema

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

JAN

FEB

MAR AP

R

MAY JU

N

JUL

AUG

SEP

OC

T

NO

V

DEC

Mio

GH

C

2002

2003

2004


How Madagascar’s SW increase Trade Facilitation Journey


Malagasy Community Network

A Public-Private Partnership Joint Venture with Government for the development of Single Window – Malagasy Community Network Services (or Gasynet)

GasyNet, modeled on the Singapore’s TradeNet was established in 2006

SGS - 70%

State - 30%

Operational since April 2007



Involves integration of TradeNet System and existing ASYCUDA++

TradeNet connects most of the entities involved in the import and export process - Importers, Customs brokers, Customs, Port Authority, Container terminal, Commercial banks, Central Bank and the Treasury.

Gasynet also incorporates a risk management system, which directs containers into one of four lanes—red, yellow, blue or green—depending on criteria specified by Customs.



World Bank’s Doing Business Report 2009“The results of the reform have been impressive—according to Doing Business 2009, overall time to import a container into Antananarivo was cut by three weeks. Customs clearance time has been reduced to 72 hours at Toamasina, through which 80% of imports pass by value.”

“But quicker customs clearance isn’t all the reform has achieved. Since 2005, customs receipts have doubled—from approximately 900 billion Malagasy aryary to around 1,800 billion today. And from the time TradeNet started operations in June 2007, receipts increased by 50%. This is vital in a country where customs receipts still account for around half of state income.”


Thank you

contact:

Copyright 2011 Private & Confidential 1 Single Window = Trade Facilitation = Reducing Trade Cost = Increasing Govt Revenue Regional Training Workshop on.

Documents

trade facilitation slide

trade cost slide

trade easy

instrument of trade

trade logistics procedures

infrastructure trade

sustainable trade flows

cross border trade