Mr. Nattapon Dejvitak - ETDA · IDP / RP / AS / Digital Identity Guideline Platform / FI / Insurance / Government ... Customs Thailand allows paperless submissions for e-Import and

Thailand National Digital Trade Platform

Mr. Nattapon Dejvitak

• Vice Chairman, Thai National Shipper Council

• Head of BRP Working Group, National Digital Trade Platfrom, JSCCIB

• Executive Vice President, Loxley Plc.

22 May 2019

Exporter Logistic Insurance Importer Bank Custom NSW Others

(1) Submit Quotation

Submit P/O (2)

(3) Submit Proforma Invoice

(4) Request Pre-export Financing against P/O

Advice L/C to Exporter (5)

(6) Request Pre-export Financing against L/C

(7) Book Cargo / Vessel

(8) Export Declaration

(9) Container to Terminal

(10.1) Shipping Instruction

Draft B/L (10.2)

(10.3) Confirm Draft B/L

(10.4) Endorse B/L

e-invoice Freight (10.5)

Deliver B/L (10.6)

Deliver SWB (10.7)

Deliver C/O (11)

(12) Request for Cargo Insurance

Deliver Insurance Policy (13)

Government Licenses and Certificates (14)

Other 3rd Party Document (15)

(16) Deliver Document to Importer (Open A/C)

(17) Request Post-export Financing

(18) Send all Doc. to Exp. Bank (D/P, D/A, L/C Payment Term)

Exp. Bank send all Doc. to Imp. Bank (19)

Payment to Exporter (T/T, L/C, D/A, D/P) (20)

(21) Exporter request for Blue Corner Certification

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Information Flow through the Value Chain of International Trade (Export)

International Trade typically involves up to :

20 processes at least;

30-40 documents generated; and

50-60% of information manually re-entered at least once

3

ORIGINAL

What if ?

Ms. Varinborn

4

SingleIntegratedPlatform

One-stop information-exchange platform that enables exporters

and importers to interact with all business partners and stakeholders on

international trade related transaction which will raise productivity,

transparency, boost competitiveness, and uncover other new opportunities.

OFFSHORE THAILAND

Japan

ASEAN Single

Window (ASW)Other

ASEA Countries’

NSW

Existing & On Progress

Proposed To-Be & Likely to Progress

B2B e-Platform

Hongkong

Singapore

(NTP)

Other

Countries

Insurance

Companies

Banks Liners

Importers

Others

Exporters

FreightForwarders

Custom Brokers

National Digital Trade

Platform

(NDTP)

GovernmentAuthorities

G2G / B2G

Ecosystem of National Digital Trade Platform (NDTP)

B2B

Advantages of National Digital Trade Platform (NDTP)

FasterAutomatic process helps reduce time of information input and information exchange

Efficiency

Process documents without redundant procedures, which are time consuming and prone to human errors

Transparency

Standardized document. Once recorded, transactions cannot be changed or altered; hence creating trust and transparency

Cost ReductionElimination of document handling and many duplicate rekeys helps save redundant costs

Online ProcessNo paper, No messenger. All steps can be done on computer or mobile device.

Shared Infrastructure

One time system development which can be used among stakeholders and in conjunction with other value-added services in future

ASEAN Frameworks

ASEAN Single Window (ASW)

Thailand

G2G / B2G

National DigitalTrade Platform

(NDTP)

BanksFreight

Forwarders

CustomBrokers

Liners

Insurance

Companies

Others

NationalDigital Trade

Platform (NDTP)

B2B e-Platform

Customs Act•

▪ Payment System Act▪ Exchange Control law ▪ Asian Payment Network

Draft law on digital verification of ID

▪ IDP / RP / AS / Digital Identity Guideline▪ Platform / FI / Insurance / Government

authorities

Other key laws

1. Electronic Transactions Act (urgent)▪ Consider implementing UNCITRAL’s Model Law on

Electronic Transferable Records (MLETR) 2017 →"electronic transferable records“ -B/L, B/E, P/N, L/C, warehouse receipts, negotiable instruments in electronic form.

‒ “singularity” approach‒ “control” approach

▪ Safety standard of the NDTP▪ [Electronic documents by government bodies:

electronic filings, electronic permit / license / approval – instead of amending each specific law]

2. Draft Personal Data Protection Bill (Urgent)▪ Explicitly carve out “Business Information” (in line with

GDPR's standard and the OECD's principles, Singapore)▪ Outbound transfer of personal data (adjust

requirements to enable interconnectivity with other countries → subregulation)

3. Digital Government▪ Digital payment option, paperless transactions, Open

Government Data ▪ [Electronic documents by government bodies]

4. Cybersecurity ▪ Pros and cons of the platform being considered as CII

(Critical Information Infrastructure) ▪ Compliance obligations re cybersecurity and risk

assessment report

Commerce Registration Act &Direct Marketing & Direct Sales Act

Registration & ongoingcompliance requirements

ExportersImporters

Non-Life Insurance Act▪ E-Policy▪ Online sale of policies▪ Online claims

Harmonization

▪ Laws and regulations

▪ Technical standards e.g. e-invoice, e-PO, e-B/L, e-L/C

(Urgent)1

2

5. International Conventions (long term)▪ UCP 600 (+ e-L/C) voluntary basis▪ Vienna Convention (CISG)▪ UNCITRAL’s MLETR▪ ASEAN Framework

▪ Customs Thailand allows paperless submissions for e-Import and provides online tracking and filing services.

▪ [Electronic documents by government bodies] – Any adjustments if necessary to be done by Customs.

• Oversight forum oversees board activities

• Ultimate Decision Maker: Board directors supported by subcommittees. Decisions are based on majority vote.

• Governance Process: Operating company is governed by the board with support from subcommittees; on top of internal audit, two mandates for external audit occur once a year

• Cooperative society owned and controlled by users of its services

• Various subcommittees managed different functions and services of the company

• Operations managed by an executive committee reporting to the board

• Government Owned

• Controlled and managed by a mix of regulators and Government executives

• Operations managed by accredited local operating units (LOUs) outside of the non-profit organization

• LOUs operate under the organization’s standards

Local operating unit

• Oversight forum oversees board activities

• Ultimate Decision Maker: Board of directors governed by consensus

• Governance Process: Local operating units are accredited by the government agency to carry out activities in its name

Government Owned

Accredits

Oversight Forum

BoardOperating

Center

Board

Subcommittees

by Functions

Cooperative society

Customers

Consumes services and owns company

Customers

Provides services

Oversight

Committee

Board

Board

Subcommittees

by Functions

Alliance

Committees and

working group

Tier 1

member

Appoints

Tier 1&2

member

Tier 1, 2 &

3 member

Sits

Chairs

• Alliance owned and controlled by its members

• Different tiers of membership enabling different levels of roles and responsibilities within the occasion

• Committees and working group develop new services/standards/initiatives for the alliance

• Executive director appointed by board of directors

• Governing board is responsible for financial & corporate decisions, membership policies and resolution of conflict. Participated by Tier 1 members

• Governance Process: Board of directors rotated among tier 1 members

Participates

Executive

Director

Board

Governance Model Options

9

Starting a BusinessDealing with Construction

PermitsGetting Electricity Registering Property Getting Credit

• Procedures (numbers)

• Time (days)

• Cost (% of income per capita)

• Minimum capital (% of income per capita)

• Procedures (numbers)

• Time (days)

• Cost (% of warehouse value)

• Building quality control index (0-15)

• Procedures (numbers)

• Time (days)

• Cost (% of income per capita)

• Reliability of supply and transparency of tariffs index (0–8)

• Procedures (numbers)

• Time (days)

• Cost (% of property value)

• Quality of land administration index (0–30)

• Strength of legal rights index (0–12)

• Depth of credit information index (0–8)

Protecting Minority Investors Paying Taxes Trading Across Borders Enforcing Contracts Resolving Insolvency

• Extent of disclosure index

• Extent of director liability index (0-10)

• Ease of shareholder suits & rights index (0-10)

• Extent of ownership and control index (0-10)

• Extent of corporate transparency index (0-10)

• Payments (number per year)

• Time (hours per year)

• Total tax and contribution rate (% of profit)

• Post filing index (0-100)

• Time to export

• Cost to export

• Time to import

• Cost to import

• Time (Days)

• Cost (% of claim)

• Quality of judicial processes index (0-18)

• Recovery rate (cents on the dollar)

• Strength of insolvency framework index (0-16)

• Digital Trade Platform has positive impacts to various key topics used in Ease of Doing Business scoring

• A rigor implementation of Digital Trade Platform can potentially improve Thailand’s Ease of Doing Business index to be in the top 20 world’s ranking

Country’s view

Digital Trade Trend

There are initiatives and ongoing development towards trade digitization in two key approaches; government led national platform, and private sectors consortium

HKTFP

NTP

NTTDDubai Trade

Private consortium

Government’s led

(eTradeConnect)

We.Trade

SKUCHAIN

Some countries have announced proof of concept to connect their own platform with other countries’

Example of private sector consortium on Trade related include:• Project Marco Polo (DLT on Open Account Trade)• Project Voltron (DLT on L/C Trade)

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• Singapore’s NTP is sponsored by MAS and owned by Singapore Customs • The new & improved NTP, starting service since September 2018, is aimed to be a one-

stop trade portal, provide access to trade-related service and be the key node to international connectivity in digital trade

Singapore Networked Trade Platform (NTP)

12

Japan Trade Platform

13

Japan Trade Platform

14

Japan Trade Platform

15

Japan Trade Platform

Thailand National Digital Trade Platform

Mr. Nattapon Dejvitak

• Vice Chairman, Thai National Shipper Council

• Head of BRP Working Group, National Digital Trade Platfrom, JSCCIB

• Executive Vice President, Loxley Plc.

22 May 2019