GTI International Capacity Building Programme for Trade Facilitation in NEA 20 - 24 February 2012 Cheonan City, ROK Sangwon Lim Trade Facilitation Section.

GTI International Capacity Building Programme for Trade Facilitation in NEA

20 - 24 February 2012Cheonan City, ROK

Sangwon LimTrade Facilitation Section

Trade and Investment Division, ESCAP

Implementing Paperless Trade in GTR: ESCAP Policies and Programmes in Trade Facilitation

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Trade FacilitationTrade Facilitation

Definitions of Trade Facilitation

APEC(2000)

OECD(2002)

UNECE(2002)

WB(2005)

WTO(2005)

The simplification and harmonization of trade procedures and formalities involved in collecting, presenting, communicating, and processing data required in the international trade

The harmonization and standardization of information and information flows associated with the international trade transaction

The use, standardization, and improvement of physical infrastructure and facilities

The harmonization of applicable laws and regulations with the international standards

The automation of trade procedures

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International Supply Chain Reference Model

Trade Facilitation and International Supply Trade Facilitation and International Supply ChainChain

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ESCAP Approach to Trade FacilitationESCAP Approach to Trade Facilitation

TradeFacilitationMeasures

Capacity Building

Knowledge Sharing

Advisory & Networking

Procurement

Distrib

utio

n

Payment

TechnicalRegulation

Customs

Inspection

Security

Certification

OtherBarriers

EfficientGlobalTrade

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Trade Facilitation Initiatives in ESCAP: Trade Facilitation Initiatives in ESCAP: UNNExTUNNExT

UN Network of Experts for Paperless Trade in Asia-UN Network of Experts for Paperless Trade in Asia-Pacific Region (UNNExT)Pacific Region (UNNExT)

“community of knowledge and practice to facilitate the implementation of Single Window and Paperless

Trade in the Asia-Pacific region ”

http://www.unescap.org/unnext/

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UNNExT StructureUNNExT Structure

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UNNExT Work Programmes and ActivitiesUNNExT Work Programmes and Activities

Capacity Building

RegionalAdvisoryService

Tools and GuidesDevelopment

KnowledgeSharing

Research&

Analysis

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Tools & GuidesDevelopment

Capacity Building

Knowledge Sharing

RegionalAdvisory Service

Research & Analysis

• Business Process Analysis (BPA) Guide for Simplification of Trade Procedures (Dec. 2009)• Data Harmonization & Modelling Guide ( Jan. 2012)• National Workshops on Single Window and BPA, Mongolia (Sep. - Dec.09)• Workshop on Trade Facilitation & BPA Training, Cambodia (Jun. – Jul. 2010)

• UNNExT Brief Series• Online Working Groups & Databases• Asia Pacific Trade Facilitation Forum

• Mongolia Single Window Master Planning (2010/2011)• Nepal: Towards Single Window Environment & BPA (2011)

• Regional Study on Improving Trade Procedures (Using BPA Guide)• Cooperation with the ARTNeT

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Step by Step Approach to Single Window Step by Step Approach to Single Window ImplementationImplementation

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Business Process Analysis to Simplify Business Process Analysis to Simplify Trade ProceduresTrade Procedures

Business Process Analysis is a study to understand attributes of business processes, and their relationships

Who involved

Proceduresand Documents

required

Related Rulesand Regulations

Some quantitative

indicators

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Benefits

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Phase I – Scope settingStep 1 – Define a project scope

Step 2 – Develop a detailed work plan and secure resources

Phase II – Data collection and process document Step 3 – Acquire background information

Step 4 – Conduct interviews and document captured data

Phase III - Problem analysis and recommendationsStep 5 – Analyze the as-is processes and identify bottlenecks

Step 6 – Develop and propose recommendations

Steps

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Project Sponsor

Project Manager/Project Leader

ProcessAnalysts

Process Participants/Business Domain Experts

1) Define aproject scope

2) Develop a detailed plan and secure resources

3) Acquire background information

4) Conductinterviews and document

captured data

5) Analyze the “as-is”process

6) Develop andpropose

recommendations

Phase I

Phase II

Phase III

Use Case Diagramfor Big Picture

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Project Manager/Project Leader

Process Participants/Business Domain Experts

Project Sponsor

1.1) Identify a business domain

of interest

1.2) ConductDesk

research

1.3) Identify core business

processes and process

participants

1.4) Visualize collected

information

Use Case Diagram

1.5) Review and provide

feedback

1.6) Determine if

revision isneeded

Revision needed

Revision not needed

1.7) Approve

Activity Diagram for Details

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Activity Diagrams

Use Case Diagrams

Process Descriptions

Use Case to Process Description

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0

1

2

3

4

5

Day

Procedure(Use Case)

1) U

se C

ase

A

2) U

se C

ase

B

3) U

se C

ase

C

3 Days

1 Day

1 Day

1) Use case A

Actor AA Actor CC

2) Use case B

Actor AA Actor DD

3) Use case C

Actor BB Actor DD

Time-Procedure ChartUse Case Diagrams

Process Descriptions

Use Case to Time Procedure Chart

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Time-Procedure Chart Example: Thai Frozen Shrimp Export

1. Buy - Conclude sales contract and trade terms2.1. Have product sampled and examined 2.2. Arrange transport2.3. Prepare export permit 2.4. Apply for cargo insurance2.5. Prepare and submit customs declaration 2.6. Stuff container and transfer it to port of departure2.7. Clear goods through customs 2.8. Handle container at terminal and stow it on vessel2.9. Prepare documents required by importer as listed in L/C3. Pay - Claim payment of goods

1 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 3

30

20

10

0

5

25

1514 days

3 days

2 days

1 day

3 days

4 days

1 day

1

2.1

2.3

2.2

2.42.5 2.6 2.7

2.8

2.9

3

1 day

1 day

Day

Procedure

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Convey the necessity of conducting of trade facilitation process analysis, especially with the top policy makers

Secure adequate resources to conduct BPA Identify clearly the roles of stakeholders Determine a capable lead agency Start small, and then evolve Profit from past experience Invest in training Use the BPA results for real improvement

Practical Recommendations

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Data Harmonization and Modelling for Data Harmonization and Modelling for Streamlining Trade Data Streamlining Trade Data

Simplification Harmonization

Standardization

Elimination of unnecessary and redundant data

Alignment of domain, national orregional data to

national, regionalor international

data set

Progressing data set into national, regional or international standards through standard bodies

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Simplification

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HarmonizationNat’l/Regional/Int’l Data Set

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Standardization

Standard Body

Nat’l/Regional/Int’l Standards

Harmonized Data

Submit

Publish

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Definition of Data Harmonization

An act of reconciling the definition and representation formats of data elements in a domain of interest. It entails a set of activities that improves the consistency in the use of data elements in terms of their meaning and representation format.

e.g.) Delivery Date

MeaningBuyer: Date and optionally time when goods are requested to be delivered

Seller: Date and optionally time when goods are estimated to be delivered

Driver: date and period of time during which goods are scheduled to be delivered

FormatDD/MM/YY: 20/08/10

DD-MM-YYYY: 20-08-2010

MM/DD/YY: 08/20/10

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Scope of Data Harmonization

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Outputs of Data Harmonization A list of documents and electronic documents or messages that fall into the scope of the data harmonization project

A set of Data Dictionaries that corresponds to the identified list of documents and electronic documents or messages

National Standard Data Set that 1) consolidates data requirements listed in each Data Dictionary 2) contains standard semantic definition and representation format for each data requirement

A set of Message Implementation Guidelines for key documents that supports both UN/EDIFACT and/or XML messaging syntaxes

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Benefits of Data Harmonization

provide common semantic standards for import, export and logistics information

decrease data redundancy and duplication ensure data compatibility and enable data interoperability

among stakeholders, resulting in further facilitation of trade procedures

preparation to develop electronic trade documentssupport the establishment of Single Window facilities: a

single entry point of standardized information and reuse of information to fulfill all import, export and transit related regulatory requirements

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Step by Step Approach to Data Harmonization

Analyze

Define

Capture

Planning

Step 3

Step 2

Step 1

Step 0

Map (Reconcile)Step 4

Business Process Analysis, Simplification & Harmonization

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Step 1: Capture business processes and identify documents and basic data requirements

Step 2: Analyse data in each document and define the semantic of the data and the data formats

Step 3: Analyse data elements across various documents and organize them in a comparable manner

Step 4: Map/Reconcile data elements to the Reference Data Model

Step 5: Obtain the structure of the electronic document

Step by Step Approach to Data Harmonization (Cont’d)

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Legal Framework for Enabling Paperless Legal Framework for Enabling Paperless Trade and Single Window EnvironmentTrade and Single Window Environment

Legal Basis for SW Facility ImplementationOrganizational Structure for SW FacilityIdentification, Authentication & Authorization ProcedureAuthority for Data & Conditions for Sharing Data in SW FacilityData Quality IssuesData Protection MechanismLiability IssuesArbitration and Dispute Resolution MechanismElectronic DocumentsElectronic ArchivingIPR and Database OwnershipCompetition Issues

UN/CEFACT Recommendation 35

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United Nations Commission on International Trade Law

UNCITRAL Model Law on Electronic CommerceUNCITRAL Model Law on Electronic Signatures United Nations Convention on the Use of Electronic Communications in International Contracts

Three Principles in e-Transaction Non-discrimination of electronic transaction Technological neutrality Functional equivalence

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ESCAP Legal Guide on Implementation of Electronic Single Window Facilities

Single Window Overview General Legal Aspects of Single Window Specific Legal Issues in Single Window - Basis for legal recognition of electronic communications - Authenticity and integrity - Data quality and interoperability - Data Retention, privacy and data protection - IPR, liability and dispute resolution Assessment of Legal Gaps

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Trade Facilitation Initiatives in ESCAP: Trade Facilitation Initiatives in ESCAP: APTFFAPTFF

Asia Pacific Trade Facilitation Forum (APTFF)Asia Pacific Trade Facilitation Forum (APTFF)

An open regional platform to exchange information, experiences and practices for trade facilitation in Asia-Pacific, identify priority areas for regional

cooperation and integration, and learn about new tools and services which can increase the efficiency of cross-border transactions.

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Upcoming ESCAP Trade Facilitation Upcoming ESCAP Trade Facilitation ActivitiesActivities

□ ADB-ESCAP Capacity-Building Workshop on Implementing a Single Window

23-27 April 2012, Seoul, ROK

□ ECO-ESCAP Workshop on Trade Facilitation

23-25 May 2012, Kish Island, Iran

□ APTFF 2012 and related events

1-5 October 2012, Colombo, Sri Lanka

□ Feasibility Study on Modernization of Mongolia GASI (2012)

□ Publication of UNNExT Guide on Legal Framework for Paperless Trade (Mid-2012)

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Thank you

www.unescap.org/tid

www.unescap.org/unnext