Digital Secure Cross-Border Trade PAN ASIAN E-COMMERCE ... · CBBP InterCommerce CBBP CAT CBBP PT EDI OTB/CBBP DagangNet Blockchain GETs OTB KTNET Blockchain Kale Blockchain Cross

PAN ASIAN E-COMMERCE ALLIANCE - Best Practice of Public and Private Partnership

Digital Secure Cross-Border Trade

Alicia Say Working Group Chair/Head of Secretariat

Pan Asian E-Commerce Alliance (PAA) Trade-Van Information Services Co., Chinese Taipei

November, 2019

Single Window, Asian Connection

PAA Scenario Established in 2000 to promote and provide secure, trusted, reliable and value-adding IT infrastructure and facilities to enhance seamless trade globally

Pan Asian e-Commerce Alliance Charter

•  To enable secure and reliable transmission of trade

and logistics documents.

•  To allow inter-connection of network services to provide e-Commerce transaction application services for the business community.

•  To create a Pan-Asian portal to enable global B2B connection and communication.

First Regional Alliance of 12 Customs and Trade Service Providers with real show cases of cross border

paperless trading

PAA Milestone

Our Value Proposition •  Help trading community compete through secure digital cross

border trading services –  Connect directly to trading partners and logistic providers

•  Reduce administrative costs, purchasing costs, courier cost

•  Speed up transactions

•  Potential for “better” operations/inventory management

•  Potential for higher sales volumes/revenues

–  Streamline end to end border regulatory procedures

–  Backed by comprehensive legal framework ✦  Accept electronic documents

✦  Accept digital signatures

✦  Dispute resolution process

e.g. electronic CO issued and signed by exporting issuing agency legally bound in importing economy

Case Study

Electronic Certificate of Origin Exchange Project A public and private partnership model

APEC Pathfinder Project

•  ECO pathfinder is the most active pathfinder project under APEC ECSG (Electronic Commerce Steering Group)

•  A ECO project (an example of Public Private Partnership) between MOTIE (public sector), KITA and

KTNET (private sector) of Korea and BOFT, MOF (public

sector), and Trade-Van (private sector) of Taiwan was

initiated.

•  ECO exchange model between Korea and Taiwan has

been adopted by APEC member economies as a best practice for cross border paperless trading

Repository

KTNET

Repository

KCCI

1CO APPORG

2ECO CERTIF

Exporter 1CO APP

2ECO (for view)

Customs

Importer

3 Send Inv, P/L, Paper CO to Importer

Korea Taiwan Customs Broker

4 Pass the paper CO to Customs Broker 5 Import Declaration

6Supplement Paper CO

6Supplement Paper CO

National Treasury Agency

Verify authenticity of

paper CO

Trade-Van

5 Import Declaration

Paper CO Scenario [Korea ► Taiwan]

Exporter

Repository

KTNET

Repository

Trade-Van 1CO APP

2ECO (for view)

3Inv, P/L

(specify ECO Number)

3 Inv, P/L, Attach ECO from repository

3Inv, P/L, ECO Importer

1CO APPORG 2ECO CERTIF

KCCI Customs

6Import Declaration ECO confirmed by importer

6Import Declaration

Customs Broker

4 Sign to confirm ECO Assign Customs Broker

5 Generate Import Declaration Data

ECO Scenario [Korea ► Taiwan] ECO Enquiry on KCCI Website

With ID and Password

Korea Taiwan

National Treasury Agency

n  Be the leader in trade facilitation among other countries (APEC, WCO, EU)

n  Guarantee the authenticity of the cross border documents, reduce percentage of fake CO

n  Reduce effort in paper CO verification n  Speed up customs clearance process n  Better service to international traders n  Increase nation’s competitiveness

Benefits to Government

Exporter n  Save time and costs (courier express US$23) in applying

and sending over paper CO n  No need to get a stamp/seal on the CO from Taipei

Trade Representative Office in Korea à save tremendous time (in average 3 days) and costs (US$20 per stamp, transportation cost US$20-40)

n  Transmit cross border documents in a secure online environment

n  Better service to their buyers Importer n  Speed up customs clearance process n  Expedite cargo pick up à saving warehouse cost n  Guarantee of authentic CO

Benefits to Exporters/Importers

� Findings and Recommendation from APEC PSU�

(Policy Support Unit) Reducing trade transaction costs in APEC

through electronic commerce: a case study of Electronic Certificate of Origin

Survey Findings

 For  the  Korean  Exporter  

• It  saves  (me  and  cost  in  not  having  to  get  the  CO  authen(cated  at  the  Chinese  Taipei  Mission  in  Korea;  and    • avoids  the  cost  and  delay  of  sending  the  paper  CO  by  mail  or  express  to  the  importer  or  the  importer’s  customs  broker.    

• The  es(mates  show  a  total  saving  of  US$  217  per  shipment  (container)  and  2  days  (me  saving.  

Survey Findings

For  the  Taiwanese  Importer/  ImporAng  Customs  Broker  • It  saves  (me  and  cost  in  not  having  to  send  the  CO  to  the  Customs  Broker  and  in  person  to  Customs.  • The  es(mates  show  a  total  saving  of  US$  205  per  shipment  (container)  and  3  days  (me  saving.    

Business  Loss  Avoidance  • In  addi(on,  taking  into  considera(on  the  “business  loss”  avoidance  per  shipment  with  the  new  Global  e-­‐CO  process,  the  saving  is  es(mated  to  reach  US$  274  for  the  Exporter  and  US$  397  for  the  importer.    

Copyright © 2010 APEC Secretariat. Copyright © 2011 APEC Secretariat.

# Projection Description

Assumptions Projected APEC Trade Transaction Costs

Reduction % 1 APEC wide e-CO

adoption. For most economies assume 25% of shipments require CO. Exceptions are Indonesia 60%, Thailand 20%, and Chinese Taipei less than 10%.

6.79%

2 Only Korea and Chinese Taipei adopt e-CO.

For Korea assume 25% of shipments require CO, and for Chinese Taipei less than 10%. 0.18%

3 More “e-Advanced” Economies adopt e-CO.

Assume Australia; Brunei Darussalam; Canada; Hong Kong, China; Indonesia; China; Malaysia; New Zealand; Philippines; Singapore; Thailand; US at the same ratios specified in (1) above.

2.80%

4 China + e-Advanced economies.

China + economies in (3) at the ratios specified in (1) above. 5.93%

5 Sensitivity 1 - Low APEC wide e-CO adoption.

Assume e-CO is required for 5% of shipments instead of the ratios specified in (1) above. 1.30%

6 Sensitivity 2 – High APEC wide e-CO adoption.

Assume e-CO is required for 40% of shipments instead of the ratios specified in (1) above. 10.40%

Extrapolation based on different levels of e-CO adoption

Why Blockchain

Trade-Van CBBP

InterCommerce CBBP

CAT CBBP

PT EDI OTB/CBBP

DagangNet Blockchain

GETs OTB

KTNET Blockchain

Kale Blockchain

Cross Chain Interoperability

CBBP: Cross Border Blockchain Platform

PAA Blockchain Initiative

18

Sender� Receiver�

Cross Border Blockchain

Cloud Platform

Sign� Verify�

edoc�

Cloud Storage�

Sign� Verify� edoc�

eINV eCO eDe

cl eSPS

Blockchain Application in Trade

19

Import Documents Verification

Value Proposition: Guaranteed sources of data Digitalization of C2 clearance

Exporter/ Manufacturer

Customs/ Trade

Service Provider

Importer

Customs

Validated Export

Declaration

Overseas Taiwan

Cross Border Blockchain Platform

Note: C2 = customs clearance with paper document check

Cross Border Application for Customs Clearance

20

•  To improve the Taiwan-Singapore FTA procedures with blockchain platform for document digitization and process streamliming

Step 1. Goods eligible

for FTA

Step 2. Issue paper

CO

Step 3. Transmit paper CO

Step 4. Declare customs

Step 5. Goods release

Current Practices Businesses to confirm if their goods are eligible for FTA

Sg exporter issues self-certificated CO

Send the paper CO to Tw importer

Tw importer passes the paper CO to customs broker; cb submits to customs

Customs officer verifies paper CO manually and clear customs eCO

Utilizing blockchain solution to streamline Step 2~4

Taiwan-Singapore FTA Blockchain POC

System Launch

21

Cross Border System Testing

User Recruitment & Training

Blockchain Interoperability Requirement Analysis

Aug

POC Project Report

Sep

Oct

Nov Dec Jan

2019 Feb Mar

Full Scale Implementation

Dec

2020

TW

Customs Importer Customs Broker

PAA member

Exporter�

SG

PAA member

POC Project Timeline

n  PAA, the first regional alliance of service providers facilitating paperless trade, customs and logistics

n  PAA shows the complementarity and collaboration between the public and private sectors

n  PAA is serving 350,000 organizations, representing almost all active trading enterprises in the Asian market

n  Pan Asia Exchange operated by PAA is a reliable B2B e-Marketplace to promote global trade

n  Welcome to visit us at www.paa.net n  Follow us on LinkedIn

Conclusion

THANK YOU