UTradeHub - Korea ’ s National Single Window for Paperless Trading Dr. Jae-hyun Lee Korea e-Trade Facilitation Committee Managing Director, e-Biz Bureau.

uTradeHubuTradeHub- - Korea’s National Single Korea’s National Single

Window for Paperless TradingWindow for Paperless Trading

uTradeHubuTradeHub- - Korea’s National Single Korea’s National Single

Window for Paperless TradingWindow for Paperless Trading Dr. Jae-hyun LeeDr. Jae-hyun Lee

Korea e-Trade Facilitation CommitteeKorea e-Trade Facilitation Committee

Managing Director, e-Biz BureauManaging Director, e-Biz Bureau

Korea International Trade AssociationKorea International Trade Association

Contents

1. What is Single Window for Trade Facilitation?

2. Why Do We Need It? : Korean Case

3. Where Are We Now? : e-Trade Korea 2007 Project

4. uTradeHub: Korea’s Single Window

5. Critical Success Factors

6. Challenges Ahead

1. What Is Single Window?1. What Is Single Window?

Single Window Definition

• UN/CEFACT Recommendation 33UN/CEFACT Recommendation 33

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.

Model 1: Single Authority

Model 2: Single System

Single Window Models

Model 3: Single Information Transaction System

Single Window Models

Single WindowSingle

Window

Electronic

User

Korean Case

Trade Chain

License/CertificateAuthority

CustomsService

Traders

Bank

GlobalNetwork

LogisticsCompany

Single Window Models

Benefits of Single Window

• National Competitiveness Improvement

• One Stop Paperless Trade Service

• Lower business cost and greater productivity for traders

• Expedited trade document processing

• Reinforced transaction security

• National Competitiveness Improvement

• One Stop Paperless Trade Service

• Lower business cost and greater productivity for traders

• Expedited trade document processing

• Reinforced transaction security

Benefits Categorized

• Higher transparency in corporate activities

• Correct revenue yields

• Improved trader compliance

• Higher transparency in corporate activities

• Correct revenue yields

• Improved trader compliance

• Minimizing data reentry and reducing errors and inefficiencies

• Expedited Procedures

• Cutting cost

• Maximum usability with one-stop service

• Minimizing data reentry and reducing errors and inefficiencies

• Expedited Procedures

• Cutting cost

• Maximum usability with one-stop service

On government sideOn government sideOn government sideOn government side On private sideOn private sideOn private sideOn private side

Global Trends of Single Window

CountriesCountriesCountriesCountries SummarySummarySummarySummary

Hong KongHong Kong

SingaporeSingapore

TaiwanTaiwan

• Total trade service by TradeVan (VAS provider) covering cargo clearance, global logistics, e-Commerce and etc

• Efforts to integrate various services into SSO window

• Total trade service by TradeVan (VAS provider) covering cargo clearance, global logistics, e-Commerce and etc

• Efforts to integrate various services into SSO window

JapanJapan• Connection Portal linking various service providers and

government agencies for total and integrated trade services• Connection Portal linking various service providers and

government agencies for total and integrated trade services

• Proponent of global pathfinder projects (e-C/O)• TradeXchange project launched in 2007

• DTTN Project of Tradelink and HKSAR * DTTN : Digital Trade and Transportation Network

2. Why Do We Need It?2. Why Do We Need It?

Korea’s Trade Volume

325,465309,383

286,000

835

125,058

65,016

17,505

119

135,118

69,843

22,291

1,983

261,000

404

325465

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

1964 1970 1980 1990 1995 2005 2006

Total Export Total Import

Million USD

Bottleneck in trade process

International trade in Korea

Tons of trade documents

1

* CAGR: Compound Annual Growth Rate

Problems of Paper Based Trade

Government

Complex regulation Lack of transparency Difficulty in monitoring

National CompetitivenessDecreased

National CompetitivenessDecreased

High transaction cost Long lead time Incorrect processing

Enterprises

2

High transaction cost Long lead time Incorrect processing

Complex regulation Lack of transparency Difficulty in monitoring

Enterprises Government

National CompetitivenessDecreased

National CompetitivenessDecreased

3. Where Are We Now?3. Where Are We Now?: e-Trade Korea 2007 Project: e-Trade Korea 2007 Project

Development Stage of Korea’s e-Trade

(1990~1999)1st 2nd

Stage

3rd(1999~2002) (2003~)

• Act on Promotion of e-Trade

• Foundation of common e-Trade Platform based on VAN / EDI

• L/C, E/L, I/L• Offer, Insurance• Export Clearance

• Import Clearance• Manifest • Tariff Refund

• Starting Web-based Service

• Certificate of Origin • Letter of Guarantee• Delivery Order

• Establishment of electronic trade platform

• e-Trade Document Repository

• Integrated and consolidated one-stop trade services

ESTABLISHMENT

INITIAL SERVICE

SERVICE EXPANSION

MOVE to INTERNET

Single Window :u Trade Hub

Single Window

Development

Milestones in Korea’s e-Trade

In 1989, Korean government initiated - “Comprehensive Trade Automation Plan”

In 1991, Korea enacted “Trade Automation Act” In 1991, Korea Trade Network (KTNET) was established by Korea

International Trade Association (KITA) In 1992, Korea Customs Service designated KTNET as sole customs

automation service provider In 2003, National e-Trade Committee was established (Chair :PM) In 2004, BPR/ISP for e-Trade Process Innovation In 2005, e-Trade Service Project, 1st Stage In 2006, e-Trade Service Project, 2nd Stage

• Build Internet-based national paperless trade infrastructure

• Innovate on existing trade services and processes

• Lead international cooperation to realize global wide paperless trade

• Reform laws and regulations to accelerate the dissemination of paperless trade throughout Korean trading and logistics communities

VisionVision

3 Phase Plan 3 Phase Plan

Phase1

Building CoreInfrastructure

(2005)

Building CoreInfrastructure

(2005)

Phase2

EnhancingInfrastructure

(2006)

EnhancingInfrastructure

(2006)

Phase3

Upgrading UserEnvironment

(2007)

Upgrading UserEnvironment

(2007)

e-Trade KOREA, Innovation 2007A leading e-Trade nation in the 21st century

Vision

Organization (Korea Paperless Trade Center)

Foundation Founded in Jan. 2005 in KITA after BPR/ISP Project(Jun. 2004)

Role : Project Management Office Implementation of 33 tasks from ‘e-Trade Korea 2007’ roadmap Secretariat of National e-Trade Committee

e-Trade Facilitation e-Trade Facilitation CommitteeCommittee

Chair : Prime Minister

National e-Trade National e-Trade CommitteeCommittee

PlatformW/G

FinanceW/G

LogisticsW/G

MarketingW/G

GlobalW/G

LawW/G

e-TP PMe-TP PMe-TDRe-TDR

Law ReformLaw Reform e-L/Ce-L/Ce-Negoe-Nego

RFIDRFIDe-L/Ge-L/Ge-D/Oe-D/O

e-MPe-MPe-Cataloge-CatalogSolutionsSolutions

e-C/Oe-C/Oe-B/Le-B/LAPEC,ASEMAPEC,ASEMBilateral NetworkingBilateral Networking

Korea International Trade Association

Korea International Trade Association

Korea Paperless Trade Center

Korea Paperless Trade Center

4. uTradeHub4. uTradeHub: Korea’s Single Window for : Korea’s Single Window for

Paperless TradingPaperless Trading

Conceptual Model

The uTradeHub Portal Site

Categorized Service

Marketing integrated marketing information hub

Licensing/Certification licensing/certification procedures required for import/export

Trade Finance e-LC Service to finance exporters

Customs Clearance export/import related customs clearance operations via the

Internet. Logistics

Logistics services for traders, shipping lines, forwarders etc. Payment

Paperless presentation of negotiation documents and payment

e-Document Validation & Certification

Secure Access Controle-Document Encryption

은행Government

Related Party

Traders

Electronic Document Circulation

e-Document Lifecycle Management

Metadata RegistryForm & Version Association of e-Document Business Relationship

u-TradeDocument

Repository

Featured Architecture : uTrade Document Repository

One stop service integrates existing paperless trading services in Korea

Reduces business cost and improves productivity

Expedites trade document processing

Offers smart service based on BPM (business process management)

uTradeHub: Benefits

5. uTradeHub5. uTradeHub: Success Factors: Success Factors

Critical Success Factors

Strong leadership by government

Budget

IT infrastructure (Network, Hardware, Software)

System Integration experience

Legal framework readiness

e-Readiness of Industry

Adopting International standards and trends

Strong Leadership and PPP

Strong Leadership by GovernmentStrong Leadership by Government A Typical Government – Bank Leaders A Typical Government – Bank Leaders meetingmeeting

Broadband Network

서울 2서울 2

서울 1서울 1

부산부산

광주광주

대구대구

대전대전

House-holds

Penetration : 80%(2005) - Available to over 97% of population

Schools All Primary & Secondary Schools Connected to Broadband (Sept. 2000)

Korea’s Broadband Penetration

IT Infrastructure of Korea

No. of broadband subscribing households: 11.8 million (77%)

※subscriber/100 persons

Korea Netherlands Canada Japan U.S.

24.919

17.8

12.815

1위

2위

No. 1 in Broadband Internet No. 1 in Broadband Internet Penetration RatePenetration Rate

(Source: OECD, 2005)

Legal Infrastructure

Digital Signature Act

Trade Transactions Facilitation Act Customs Law

e-Trade FacilitationAct

Foreign Trade ActForeign Trade ActElectronic Electronic Transactions Transactions Act Act

In 1991, Enacted ‘Trade Automation Act’In 1991, Enacted ‘Trade Automation Act’

In 2004, Revised the Act to ‘e-Trade Facilitation Act’In 2004, Revised the Act to ‘e-Trade Facilitation Act’

6. Challenges Ahead6. Challenges Ahead

Connectivity to the global trade

Encouraging Industry Awareness and Adoption

Establishing International Standard ebXML the UN Trade Data Elements Directory (UNTDED) UN EDIFACT WCO Data Model etc

Connection among National Single Windows Mutual Authentication and systemic connectivity

Korea’s Initiatives as an e-Trade Leader

e-Certificate of Origin Pathfinder Project - Korea-Chinese Taipei e-Bill of Lading Project - Connecting national SWs for title documents - APEC Initiative by Korea - Singapore’s TradeXchange as a project partner

e-Negotiation Project- Pilot project with China - Presenting negotiation documents in electronic

formats and complete electronic payment

Thank you !Thank you !

(Q&A)(Q&A)