Single Window for Foreign Trade, 6th Edition Module 1: Introduction, concept and models of Single Window
1
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Single Window for Foreign Trade, 6th Edition
Module 1
Course author: Interamerican Development Bank (IDB) (www.iadb.org), through his Integration and Trade Sector (INT). Course coordinator: Interamerican Development Bank (IDB) (www.iadb.org), through his Integration and Trade Sector (INT), the Institute for the Integration of Latin America and the Caribbean (INTAL), the Inter-American Institute for Economic and Social Development (INDES) (www.indes.org), the World Customs Organization (WCO) (www.wcoomd.org) and the General Secretariat of Central American Integration (SG-SICA) (http://www.sica.int/) Module author: Carolina Navarro Correcher, Project Manager in the Development (Valenciaport Foundation).
field
of Innovation and
Pedagogical and edition coordination The Inter-American Institute for Economic and Social Development (INDES) (www.indes.org) in collaboration with Fundación Centro de Educación a Distancia para el Desarrollo Económico y Tecnológico (CEDDET) (www.ceddet.org) and Caribbean Customs Law Enforcement Council (CCLEC) (www.cclec.net)
6th Edition 2017
This document cannot be reproduced, in whole or in part, by any electronic or mechanical means, including photocopy or any recording process. Its information cannot be stored or recovered by any systems whatsoever without the due written authorization from the IDB. Any request for partial or total reproduction must be informed to: BIDINDES@iadb.org These materials have been revised in light of the ministerial decisions taken in the framework of the 9th World Trade Organization Ministerial Conference held in Bali, Indonesia, in December 2013. The adjustments were made in order to reflect a higher alignment between the course topics and the priorities identified in Bali’s Ministerial Declaration and decisions, where all IDB members participated. Bali Ministerial Declaration and decisions 2
Single Window for Foreign Trade, 6th Edition
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Table of contents Glossary ..................................................................................... 4 Introduction and Objectives of the Module ...................................... 5 Learning oriented questions .......................................................... 6 Unit I. The Single Window Concept ................................................ 8 I.1. Introduction ........................................................................ 8 I.2. Definition of the Single Window ............................................ 9 I.3. Single Window as an Intelligent Installation ......................... 18 I.4. Single Window as a Virtual Enterprise .................................. 21 Unit II. The Single Window Environment ...................................... 24 II.1. Port Community Systems .................................................. 27 Unit III. Typologies and Models of Single Window .......................... 30 III.1. Introduction ................................................................... 30 III.2. Models of Single Windows ................................................ 31 III.2.1. SW Model 1 : Single Authority Model ........................... 31 III.2.2. SW Model 2: Automated Single System ........................ 32 III.2.3. SW Model 3: Automated Information System ................ 34 III.3. Leader Agency for the establishment of a Single Window environment ........................................................................... 36 Unit IV. Principal Benefits ........................................................... 38 IV.1. Benefits for the Government ............................................. 38 Unit V. Steps for the implementation of Single Windows ................ 41 Unit VI. Key factors for the Establishment of Single Windows ......... 45 Bibliography .............................................................................. 51 Index of figures ......................................................................... 52
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Glossary
•
“B2B”: Business-to-Business
•
“B2G”: Business-to-Government
•
CS: Community System
•
CCS: Cargo Community System
•
EPCSA: European Port Community System Association
•
FTSW: Foreign Trade Single Windows
•
“G2G”: Government-to-Government
•
ICT: Information and Communication Technologies
•
“Integrated System”: Centralized system
•
“Interfaced System”: Distributed system
•
IT: Information Technologies
•
PCS: Port Community System
•
SW: Single Window
•
UN/CEFACT: United Nations Centre for Trade Facilitation and Electronic Business
•
WCO: World Customs Organization
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Introduction and Objectives of the Module
The general objective of this Module is to present the student with basic concepts in regard to Single Windows as instruments to facilitate international trade. A content structure has been provided that allows the training, once the reading of the theoretical part has been completed, to be carried out in accordance with the following specific objectives: •
To define the concept of Single Window, its typologies and models.
•
To understand the necessity of Single Window environments.
•
To
be
acquainted
with
the
principal
benefits
for
the
governments as well as for the private agents in the industry that derive from implementing a Single Window. •
To identify the basic steps in implementing a Single Window, as well as the key factors for success in such implementation.
The Module, structured in 6 Chapters, plus the present introduction, addresses the following questions in accordance with the specific objectives mentioned above: •
The Single Window concept
•
The Single Window environment
•
Single Window Models
•
Principal benefits of implementing Single Windows
•
Steps for the implementation of Single Windows
•
Key success factors in implementing Single Windows
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Learning oriented questions
•
What does Single Window mean? What kinds of Single Window systems can be found? Which are the most common ones?
•
It is advisable to have one only type of Single Window?
•
Which are some of the reasons encouraging Single Windows implementation? And whose initiative for its creation is necessary?
•
What
is
the
process
to
be
followed
in
Single
Window
implementation in order to guarantee its success?
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Module 1. Introduction, concept and models of single window Unit I. The Single Window Concept. Unit II. The Single Window Environment Unit III. Typologies and Models of Single Window. Unit IV. Benefits.
Principal
Unit V. Steps for the implementation of Single Windows Unit VI. Key factors for the Establishment of Single Windows
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Unit I. The Single Window Concept
I.1. Introduction
International trade requires an enormous volume of information and documents in order to comply with the regulatory steps required by government authorities in the processes of importing, exporting and transporting trade goods. In addition, each such document must normally be submitted to different agencies, each with its own systems (whether manual or automatic) and each with its own models and forms. These procedural steps, along with the costs associated with compliance, represent a serious impediment to the facilitation of international trade, affecting the companies as well as the government. One manner of resolving these problems involves the creation of a Single Window environment in which information associated with trade and transportation needs be submitted only at one single point of entry to be distributed to all the pertinent public entities for subsequent processing (customs, regulatory agencies concerned with foreign trade operations, law enforcement and port authorities etc.). This single point of entry or Single Window permits improvements in the availability and management of more reliable information. It accelerates and simplifies the documentary procedures necessary for trade and harmonizes and shares the information among the various agency jurisdictions.
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At the same time, the use of a Single Window permits improvements in the efficiency and control exercised by the government agencies, which redounds to cost savings for business as well as government, because it better utilizes the resources available (for example, through greater control of the rates that must be paid, or by reducing the time it takes to comply with administrative procedures).
This chapter will attempt to respond to such questions as: What is a Single Window? From whom should the idea come to create a Single Window? Can there be only one Single Window?
I.2. Definition of the Single Window
Single Window is a term that has been widely utilized in recent years and great efforts have been made not only to clarify its definition but to clarify the definition and description of its associated concepts as well. The reality is that the Single Window defies traditional models that have been utilized to control the movement of merchandise and the means of transport.
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For greater comprehension of what a Single Window is, we are going to borrow the definitions of this concept provided by the United Nations
Centre
for
Trade
Facilitation
and
Electronic
Business
(UN/CEFACT) in its “Recommendation and Guidelines on Establishing a Single Window for the Improvement of Information Exchange between Trade and the Government� (Recommendation No. 33, 2005), and by the World Customs Organization (WCO) in its Compendium
on
Single
international
organs
Windows
provide
(2011)
definitions
as and
well.
The
two
complementary
recommendations from different points of view, the first more technical and the second more organizational and methodological.
EXTRA CONTENT Recommendation No. 33, 2005 In its Recommendation No. 33, the United Nations Center for Trade Facilitation and Electronic Business (UN/CEFACT), conscious of the fact that the establishment of Single Windows can contribute to the harmonization and simplification of information exchanges between the different actors in trade and the governments, and considering the real benefits that can mean not only to the governments themselves but to traders as well, recommends that the governments and agents involved in international trade and in transporting merchandise consider the possibility of establishing Single Window solutions in their countries and if appropriate proceed to their establishment by means of collaboration and joint efforts by all the government authorities involved as well as the private sector. To that end, in addition to the Recommendation, UN/CEFACT includes Guidelines for the establishment of a Single Window to improve the efficient exchange of information between the industry and the governments, which is considered one of the basic documents of reference for getting Single Window projects underway. UN/CEFACT has subsequently defined other Recommendations that describe the tools and methodologies that allow the concept to be developed from other perspectives, as in Recommendation 35, which covers establishing a legal environment for a Single Window in international trade.
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According to the definition provided by UN/CEFACT the Single Window is defined as:
A tool that permits the parties involved in trade and transportation to submit information and standardized documents through a single point of entry with the object of complying with all the procedural steps related to export, import and transportation operations, in which the information must be submitted only once (preferably in electronic format).
In other words, the objective of a Single Window is to speed and simplify information flows between agents involved in trade and Governments in such a manner as to benefit everyone who participates in cross-border processes by avoiding the repetitive submission of data. The definition offered by UN/CEFACT is oriented more to the transmission of standardized information and to the application of information
and
communications
technologies
because
those
technologies are the principal areas of expertise of this international organ. Recommendation 33 explains the collaboration between Customs
and
other
regulatory
control
agencies
in
terms
of
information flows between the various parties involved in trade and transportation when information and documents must be submitted only at one single point of entry.
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The recommendation and guidelines are considered the bases of the Single
Window
argument
and
they
have
been
interpreted
in
numerous seminars, workshops and discussions that have allowed the
implications
and
possibilities
of
this
foreign
trade
and
transportation concept to be broadened and deepened. UN/CEFACT has subsequently issued other Recommendations that describe tools and methodologies that allow this concept to be developed from other perspectives, such as Recommendation 35 with regard to the establishment of a legal environment for a Single Window in international trade. However, a Single Window must not be confused with an information system. This concept goes much further. The WCO definition prefers to utilize the term Single Window Environment, which presents the Single Window concept as:
A philosophy of governance in which traditional government structures are transformed to better serve the necessities of citizens, business and the economy. Under the concept of a Single Window the procedures established by the various agencies of government come to be transformed into services, either integrated services or services capable of being integrated, which the government offers, derived from a greater simplification of procedural steps, accomplished in a more efficient and coordinated manner, substantially decreasing the costs of regulatory compliance. The process of creating a Single Window environment is based on an iterative transformation that must involve various initiatives, some new and others consolidated or underway, all of which must be appropriately integrated into the environment through a rigorous work of reengineering.
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In a Single Window Environment this transformation of the structures of government toward greater simplification, facilitation, control and transparency is the result of a step by step process that integrates various initiatives oriented toward this end, which may give rise to various versions and different levels of Single Window maturity. The concept of a Single Window is not limited to foreign trade operations. The concept is also found in other areas of government as in the case of a Single Window for the creation of new companies, for the centralization of procedural steps, for a change of domicile, obtaining a driver’s license, etc. At this point we could ask ourselves if only one Single Window could exist or if there might be several Single Windows for the management of international trade and transportation. This aspect has been dealt with in the introductory chapter of the Single Window Compendium published by the WCO. In foreign trade, different government agencies are involved in these types of operations, including customs, the inspection agencies concerned with animal and plant health, the control of medications and the oversight of standards applicable to various products, as well as agencies concerned with border protection and the management of public infrastructure. Traditionally, these different agencies have no established channels for sharing information, which has meant that foreign trade operators must provide the same information to each agency and the inspections and controls each one practices are independent and carried out in an uncoordinated manner, potentially with discordant information. This is not a desirable situation for foreign trade operators or for the administration.
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It generates enormous inefficiencies and a diminished capacity to identify risks that could occur when individual agencies each receive part of the information instead of the entire government team receiving a single, global set of information. An illustration of this type of circumstance may be found in informational discrepancies between the health and customs authorities in relation to the origin of a food product caused by attempts to avoid inspections or evade import prohibitions in the country of destination; or there may be discrepancies between the amount of merchandise unloaded in a port and the amount declared in an effort to avoid paying taxes or duties. With the application of the Single Window concept, all public agencies have the same set of data available, submitted by the operators at a single data entry point. The proposal to implement a Single Window System may originate from different sectors (shipping, trade, transportation, Customs). The shipping sector, for example, might promote the creation of a Single Window to provide the services associated with procedural steps associated with cargo vessels. For that reason we do find different Single Windows that must be complementary and, in any case, interrelated. Usually, the organization of a Single Window environment is coordinated by one entity that leads the process. That leader entity must be recognized by the rest of the government authorities and regulatory agencies involved. The lead agency must adopt a neutral and conciliatory role, seeking and ensuring that all the authorities and agencies receive and have access to the information they need to comply with their mandates and objectives. Moreover, the participating authorities and agencies must attempt to coordinate their controls in such a manner that they are not repeated and they take effect at the same time. 14
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In some cases, Single Window services can be connected to other external services to provide such facilities as paying for taxes, duties and quotas or logistical services associated with the operation. In the process of crossing borders, aside from Customs, there are other
government
agencies
(plant
and
veterinary
inspections,
narcotics control, etc.), with the right to halt merchandise crossing the border. Frequently, due to a lack of information sharing between such
agencies,
importers/exporters
must
provide
the
same
information to different government agencies. On many occasions, even having Single Window services available, they continue to require the submission of information on paper at various points when more reliable and up-to-date information often exists in their own government information systems. It is also frequent for risk evaluation to be carried out in each of the agencies utilizing the specific data the agency has compiled and not on the basis of the complete information that the government receives from traders. In consequence, multiple inspections are carried out at different points in time. Risk evaluation is carried out in each agency with their specific data and not based on the complete information the government receives from the agents. In the same manner, there are consolidated experiences in many countries where various systems of logistical and transportation collaboration in ports and airports called Cargo or Port Community systems have been implemented. These systems serve as a single point
for
the
exchange
of
information
between
the
various
participants in the logistic/port operations, including the logistics operator, the business and transportation community and the public regulatory and control agencies in those installations.
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These systems act, on many occasions, as Single Window points of entry to the government, established between the operators and the customs, port and maritime authorities and other regulatory and control agencies. At this point it is appropriate to formulate the following questions related to the oxymoron “Multiple Single Windows”: •
Should there be only one Single Window?
•
Can there be multiple Single Window solutions for different sectors
that
support
international
trade
(maritime,
port,
transportation, trade, customs, banks…)? •
How should such multiple Single Windows interact?
•
Could the responsibility for a Single Window provider be divided among various parties, each one of them to have a different provider organization by means of information technology based systems?
•
Is the Single Window concept associated exclusively with a single automated system operated by one single entity or by a collection of interoperable and interconnected systems operated by various entities?
•
Should
there
be
a
single
entity
that
orchestrates
and
coordinates development of the Single Window concept or should there be Multiple Single Windows? •
Should existing systems the various agencies utilize be retired in benefit of a new single system that incorporates all the functions or should existing systems and investments be preserved?
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Single Window for Foreign Trade, 6th Edition
•
Module 1
How must the scope of Single Windows and the corporate systems
of
each
of
the
institutions
be
established
and
delimited? It is very probable that there are as many responses to these questions as there are students participating in this course. That is due to the fact that the Single Window concept may manifest itself through various approximations that will depend to a great extent on the socio-political context and the complexity of the environment. Because of this situation it is critical to begin with a concept and a basic Single Window definition sufficiently broad and flexible to allow room for the various initiatives and environments created around this philosophy of governance so as later to be able to characterize and particularize each situation within a concrete environment. This base will allow student to be provided with a sufficiently broad outlook as to be able to understand the various Single Window initiatives that appear in the region and at the world level as well. Depending on the context in which the Single Window is presented, it is appropriate to distinguish national Single Windows, the objective of which is to coordinate collaboration between a country’s different public agencies, from the regional or international Single Windows. The objective of the latter is to coordinate collaboration between the agencies of different countries so that data originating in one country can
be
utilized
in
another
without
requiring
economic
and
transportation operators to submit the same data as long as government to government communications are in effect between the different countries.
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We can also find regional examples of Single Windows services that provide mutual recognition of certificates of origin, allowing the country of destination to consult data in the country of origin, or in the International Transit of Merchandise, where transit declaration data are recorded in the country of origin and utilized and up-dated in the different countries of passage and in the country of final destination.
I.3. Single Window as an Intelligent Installation
The Single Window concept is not simply a portal or service concept that connects the user with various government agencies. The added value of this concept is that it provides the user an integrated solution for its commercial transactions. The fundamental characteristic of the Single Window concept resides in the fact that it includes the idea of presenting information one time only (“one time submission”), avoiding duplication of effort and repeated submission the same information. “One time submission” means that it is not necessary to submit the same information on behalf of the same operator to different government agencies. However, that does not imply that submission of the entire volume of information is accomplished in one single transmission. No does it exempt other operators from submitting information in regard to the operations as well. Thus the information can be sent in multiple transmissions and by different operators, allowing the agents to continue complementing the information as the logistical steps occur, completing each stage as necessary for the dispatch and control of the merchandise and transportation operations. 18
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This characteristic could not be attained without standardization and harmonization of the data and of the documentation. A fundamental aspect of the electronic transmission of information between users and government agencies, and among the users themselves, is that this is an important act geared to compliance with the legislation. Thus the information submitted is referred to as a declaration and on submission must be equipped with sufficient guarantees of the documentation by electronic means to ensure integrity, responsibility and non-repudiation of the electronic procedures. To that end, the use
of
advanced
identification
techniques
and
electronic
data
signatures can offer a level of assurance of the functions of identification,
authenticity,
integrity,
responsibility
and
non-
repudiation equivalent, or even superior, to what is available today with paper documents. The users submit the information the Agencies require (assuming responsibility for its legality) by means of Single Windows. The Agencies in turn include information flows they themselves originate, which implies that the Agencies’ response is harmonized and coordinated. It is therefore necessary to avoid redundant information flows within the Agencies and the users and vice versa, in order to make use of the true potential of Single Windows.
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In summary, the characteristic of “One time submission” is based in the following principles: •
Gradually increasing data entry: It is possible to continue integrating data that is introduced gradually and individually as part of the intelligent Single Windows environment.
•
Harmonized declarations: A Single Windows environment does not oblige each of the actors to submit the same data repeatedly to different agencies.
•
The information is shared between the agencies: It is possible to share the information or to divide it so each of the agencies can exercise its corresponding control.
•
Harmonized response between agencies: Each of the Agencies processes its response in an independent manner, but the Single Window must give the user one single, harmonized response.
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I.4. Single Window as a Virtual Enterprise
Single
Windows
are
based
on
the
electronic
exchange
of
documentation and on the creation of business processes supported by Information Technologies and advances in electronic commerce. The Single Window may be seen as a virtual enterprise made up of various
agencies
that
provide
homogenous commercial
the
client
with
aspect. Although the
a
unique
Single
and
Windows
environment is clearly different from the ephemeral nature of the usual virtual enterprises, where various companies offer their clients services by means of a single point of entry, there are some similarities that may help in understanding the Single Windows environment. The concept of “virtual enterprise” emerges from electronic interconnections established to offer services utilizing an electronic interface between a web portal and a network of collaborating organizations and entities. Internet purchases, airfare and hotel reservations are examples of electronic commerce. In all such cases, the portal through which the client processes the requests need not belong directly to any of the companies that provide the services. “One-stop-shops” (as is the case of web portals) give commercial support to virtual business transactions, manage the data entered and sent, and organize all the processes associated with the exchange of information. Normally an on-line transaction involves many companies and the information systems of each.
Nevertheless,
given
the
existing
coordination
of
the
business
processes of each of the parties, these commercial transactions are 21
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executed in mere seconds, carried out in a sequential manner utilizing standardized electronic messages. Web portals, however, are only a part of the story. The real complexity and transactions take place between the IT systems and the different participating organisms. In a
Single
Window environment, traders in an international
transaction obtain a simplified, transparent view of the transactions carefully orchestrated and synchronized among the various agencies of government, financial institutions, transporters, logistics operators, customs
despatchers,
intermodal
terminal
and
infrastructure
operators, port authorities, etc. Within the complexity of an international transaction, we can find information exchanges between private operators “B2B” (business-tobusiness), between the private operators and governments “B2G” (business-to-government),
and
between
the
government’s
own
agencies and entities “G2G” (government-to-government). In order to complete the cycle, there are also exchanges of information between the government and private operators (government-tobusiness), which can report unprecedented benefits in foreign trade operations, proactively providing government entities the information required for better logistical planning and execution. Within the government entities, as the following figure shows, one can distinguish foreign trade regulatory and control agencies, customs and public infrastructure management entities. All these government entities must collaborate among themselves for the purpose of creating an efficient Single Window environment, as described in the following chapter.
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Figure 1.1. Single Window as virtual enterprise
One-stop-shops Logistics and Transport Management and Collaboration Systems
Single Windows
Public Infrastructure Management Systems
Cross Border Regulatory Agencies’ Systems
Customs Management System
Source: Prepared by the author.
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Unit II. The Single Window Environment
The WCO considers the Single Window concept (SW) as a component of the Coordinated Border Management, the term it utilizes to describe world-wide efforts to rationalize and facilitate border management procedures and systems. The development of automated management systems within customs administrations and regulatory and protection agencies for borders is a key aspect for the adoption of facilitation measures simultaneously offering substantial improvement in objectives sought in regard to collection functions, social protection and trade promotion. However, these important developments are not the only effect of the introduction
of
new
technologies
and
of
information
and
communications technologies, in particular, but also of the adoption of new management and governance philosophies and architectures that provide greater degrees of efficiency and efficacy in international trade practices. The Single Window environment must be applied in order to facilitate the complex processes that regulate the movement of merchandise, means of transport and persons across international borders. Traditionally, in Latin America and the Caribbean (LAC), these Single Windows are known as FTSW or Foreign Trade Single Windows and offer the vision of a simplified interface between economic operators and the government agencies that regulate cross border operations. They provide a single response to inherent problems related to costly inefficiencies and lack of coordination between agencies, poorly understood administrative procedures and documentation that derive from a slow and complex bureaucracy. 24
Single Window for Foreign Trade, 6th Edition
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Why is it called a Single Window environment? It is called an environment because, normally, implementing Single Windows requires bringing together independent installations united
by
a
mutual
interface
and
adopting
collective
negotiation processes. This environment is made up of the shared space of each of the individual Agencies and each of its mandates, roles, negotiation processes and automated systems.
In this sense, constructing a Single Window environment is a particularly complex process and requires an enormous task in that it must harmonize the objectives of each of the actors, which will also lead to many changes with respect to current functions. For this change, the WCO defines three phases in the development of a Single Window environment: •
Single Window Concept. This is a first, exploratory phase during which the basic reasons are discovered for developing later phases seeking a convergent policy, a strategic alignment that depends on the collaboration of all the participants.
•
Single Window Initiative. This phase begins when the Single Window concept is formally accepted, allowing the formation of a
policy
mandate,
a
government
structure,
program
management and the preparation of projects. •
Single Window Environment. In this phase the projects that make up Single Window services are being gradually executed and must incorporate measures that allow management of the changes and of the performance. 25
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In reality, the implementation phase of Single Windows in some cases can last several years. Each phase and each sub-phase is built on what is learned during the prior phases so as to progressively attain foreign trade simplification in which the objective environment must not be the result of individual projects. Thus the WCO speaks of “constructing” a Single Window instead “developing” it; since, as in the case of a building, a Single Window needs a design that reflects its actual necessities. It must be constructed using all the engineering abilities available. Once it has been tested and the installation is certified to function in conformity with the requirements, it is put into service. Just as a building is the focus of a life style, a Single Window is the site of business procedures and provides a selection of interrelated services. As in construction projects, Single Windows sometimes need to dismantle existing buildings, or renovate present structures. There is no single way to construct a Single Windows environment; everyone can find different solutions and it is important to understand the similarities and the differences of each of those solutions. Nevertheless, the common element that must guide the construction of Single Windows is that they must always be designed in a way that responds to the actual necessities of foreign trade and of the government in an integrated manner. Today, advances in the interoperability of Information Systems and the architecture of Information Technologies have introduced new paradigms
that
aid
in
understanding
how
organizations
can
collaborate. Thanks to these advances, government agencies can work together and collaborate with the private sector. United Nations publication Recommendation 33 encourages the design of new models of collaboration.
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II.1. Port Community Systems
It has often been noted that there is a great deal of confusion between
a
Single
Window
and
a
collaborative
logistics
or
transportation system, as is the case of the community-organized port or cargo systems known as Port Community Systems (PCS) or Cargo Community Systems (CCS). A PCS (Port Community System) can be defined as an information system for the exchange of information connected to a port, the principal objective of which is to serve the interests of the various companies and entities related to port and logistics activities, transportation and international trade. A port community system connects all the actors involved in the operations of vessels and merchandise in the port: the terminal operators,
maritime/ocean,
highway
and
rail
transportation
operators, freight forwarders, customs, inspection agencies and warehouses, as well as port and maritime authorities. The European PCS association (EPCSA) defines the PCS concept as an open and neutral electronic platform that facilitates the safe and intelligent exchange of information between private operators and public entities with the object of improving the competitive position of the port and airport user communities. A PCS permits optimizing the different systems utilized by the different agents intervening in the port, making logistic and port processes automatic by means of a single data submission utilized by the entire conjunction of processes that form the logistics and transportation chain.
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The existence of a PCS in a port essentially arises from the necessity to maximize efficiency in the use of infrastructure and operations and to manage the complexity inherent in port activities, especially in the transportation of containerized merchandise. The growth of container traffic translates as a growth of the volume of work required to plan, organize, execute and follow through on operations in an efficient manner. In this context, manual procedures and practices begin to be seen as inadequate and needing to be replaced by other methods in which technological solutions play a key role in the identification of areas of improvement. The existence of a port Single Window is not conditioned on the existence of a port community system. We can find ports in which there is no port community system but there is a single point of entry for the presentation of declarations by means of a Single Window. On the other hand, we can find ports in which there is a port community system but there is no coordination of the various government agencies that could give rise to a Single Window. Moreover, there is a fundamental difference between a Single Window and a PCS: a Single Window must be national in scope and, being national, it must be applicable throughout the country and in all ports, while a PCS has a more local scope, being limited to a port. However the combination of single windows and PCS can empower the supply of high added-value services in a port associated with the planning, execution and control of all the operations of the port community and redound to better utilization of its infrastructure. In that scenario the port community system acts as channel of entry to a Single Window.
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The combination of the two systems, the Single Window with the PCS, allows solutions to be offered that significantly improve controls by the public agencies while simplifying and improving existing foreign trade procedures achieving substantial savings in costs and idle
port
time
for
the
merchandise.
To
implement
these
improvements it is necessary, on the one hand, to combine authorizations issued by the different public agencies to carry out the operations, authorizations that must be based on prior analysis of the information and risks, and which must be coordinated with the operations information and follow-up. This powerful combination actually facilitates achieving port operations without papers, creating, for example, paperless release procedures for merchandise and vessels.
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Single Window for Foreign Trade, 6th Edition
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Unit III. Typologies and Models of Single Window
III.1. Introduction
Before considering the different Single Window models, it is important to point out: •
Although
there
are
many
commercial
practices
and
relationships common to all countries, each country can also have requirements and particular conditions that determine the optimal Single Window model. •
The crucial aspect of implementing a Single Window lies in the close cooperation of all government entities involved.
•
A Single Window does not always imply the use of advanced ICT systems of the latest generation; foreign trade can be greatly facilitated by the appropriate definition of integrated administrative procedures supported by existing ICT systems.
Although
there
are
different
possible
approaches
for
the
establishment of Single Windows, there are three basic models identified in UN/CEFACT Recommendation No. 33.
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Single Window for Foreign Trade, 6th Edition
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III.2. Models of Single Windows
III.2.1. SW Model 1 : Single Authority Model
In the first model, one single Authority receives all the information, whether on paper or in an electronic format, and distributes it to the rest of the pertinent government authorities, facilitating foreign trade operations.
This has been, for example, the model followed by administrations in Spain for the presentation of cargo and shipping manifests in electronic form by the maritime operators with the Port Authority acting as a Single Window for Customs. Figure 3.1. Single Authority Model
Source: Prepared by the author.
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III.2.2. SW Model 2: Automated Single System
A single information system (public or private), created for such effect, is utilized for reception, dissemination (including storage) and management of information related to trade and transportation. Within this type of model there are different possibilities.
Integrated System in which the data are processed through a single system utilized by all the agencies involved. We can find this type of system, for example, in various Latin American countries, where it allows economic operators to submit data to a single system that is utilized in turn by the different regulatory agencies. Figure 3.2. Integrated Single Window Model
Source: Prepared by the author.
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Interfaced System in which the information is distributed to the public agencies involved by means of interoperable interfaces, which then incorporate the information and process it. This type of system has been established, for example, in the United States, where it allows economic operators to submit standardized data one single time. The system processes and distributes the data to the other agencies interested in the transaction.
Figure 3.3. Interfaced Single Window Model
Source: Prepared by the author.
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Single Window for Foreign Trade, 6th Edition
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Hybrid System a combination the integrated and interfaced systems described above. Figure 3.4. Hybrid Single Window Model
Source: Prepared by the author.
We also find this type of system in various Latin American countries, where it allows economic operators to submit data in a single system that is in turn utilized by various regulatory agencies and the data are simultaneously transmitted to
another system
(principally
Customs) by means of an interoperable interface.
III.2.3. SW Model 3: Automated Information System
In this type of model, the user can electronically submit declarations to various authorities to be processed and approved in one single
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Single Window for Foreign Trade, 6th Edition
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application that coordinates all the work flow for one single transaction. These systems are usually based on rigid procedures that must be performed in compliance with all the existing bureaucratic processes in a series of pre-identification and pre-validation operations. Certain considerations in regard to the use of the databases must be dealt with in order to establish this type of system, since a series of pre-identifications and pre-validations must be undertaken in advance in order to carry out these transactions. This type of system is utilized primarily in Asiatic countries such as Singapore, Korea and Mauritius.
This system can offer other added value services such as the automatic computation of rates that must be paid, risk management or connection with banks for electronic payments. Figure 3.5. One-Stop Single Window Model
Source: Prepared by the author.
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III.3. Leader Agency for the establishment of a Single Window environment
The choice of the appropriate Single Window model will depend on legal, political and organizational aspects in each country, so it is extremely important to begin with a careful study and diagnosis of the present situation in regard to trade and traderelated services. Moreover, the choice of the appropriate agency to lead the establishment and operation of a Single Window must be analysed during the initial phases of the project. The lead entity must possess a robust organization with the vision, legal authority, political, financial and human resources necessary to put Single Windows operations into effect, as well as adequate interfaces with the other administrations and agencies involved. In many cases, given their role in controlling administrative procedures on the borders and managing import, export and transportation operations information, foreign trade agencies, Customs authorities, port or maritime authorities may be the most appropriate agencies to lead projects to create Single Windows. In some countries, however, the agency in charge of leading the Single Window creation project may be a private entity (as, for example, a Chamber of Commerce or a provider of technological services) so long as sufficient formal institutional resources are provided to exercise the function. The lead entity in the Single Window environment creation process, however, must not be confused or associated with the entity that dominates the Single Window. The Single Window environment creation process is a process of attaining collaboration between government agencies.
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Single Window for Foreign Trade, 6th Edition
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The leader of this process must be distinguished by its neutrality and search for the best solution for all parties intervening in the process. It must seek the country benefit and not the individual benefit at all times. Single Windows can greatly simplify and facilitate the processes required for providing and sharing the information necessary for compliance with regulatory requirements in a country’s trade and transport operations, from the point of view of the private operators as well as the authorities. In this sense, the techniques utilized for the management of risks, control and compliance with regulations (as the case may be in Customs risks) may be seen as improved by the Single Window. A Single Window allows the systematic collection of information from diverse sources and different economic operators and
combines
this
information
for
the
purpose
of
detecting
inconsistencies whether attributable to a lack regulatory compliance or to non-intentional errors, making some procedures much safer and more efficient. In addition, the creation of a tariff-paying system within the Single Window offers a rapid and effective means of collecting taxes and other fees by public authorities and agencies.
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Single Window for Foreign Trade, 6th Edition
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Unit IV. Principal Benefits
A Single Window can simplify and facilitate a considerable number of processes, supplying and providing the information necessary for compliance with the legal requirements of trade, not only to the private agents connected to trade, but to the authorities as well. The use
of
this
type
of
system
can
improve
the
efficiency
and
effectiveness of official controls and reduce the costs for authorities as well as for the aforementioned agents, improving the use of resources. The following will analyse what the principal benefits are for the governments as well as for the agents that participate in foreign trade:
IV.1. Benefits for the Government
A Single Window can lead to better coordination of existing government systems and procedures, simultaneously encouraging government agencies to communicate and operate in a more open and facilitative manner. For example, the user cannot only submit all the information and documents necessary through one single entity, but can also establish more effective mechanisms for rapid analysis of the information, making the data received more reliable. The data is then distributed to those government agencies directly or directly involved in the process, each agency receiving the information it needs to carry out its functions while information outside its competence is kept confidential.
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Single Window for Foreign Trade, 6th Edition
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The Single Window, thereby, establishes better coordination and cooperation between the government’s authorities involved in trade. Thanks to Single Windows, risk management processes can be improved, given the fact that data are collected in a systematic manner that entails the security and efficiency of the procedures. The inclusion of an electronic payment system united to the Single Window solution will provide more secure, dependable and immediate payments of taxes, duties and any other levy required by the government authorities and agencies. A Single Window provides updated information on tariffs and other legal procedures, which reduces the possibility of involuntary error and increases the transparency and satisfaction of the user. On the other hand, the collection and coordination of information and documentation through the Single Window reduces the use of human and financial resources, allowing governments to reassign resources, which were previously devoted to administrative tasks, to areas of greater importance.
Benefits to the government can therefore be summarized as: •
More efficient and effective use of resources
•
Improved application of tax laws
•
Greater rapidity and reliability in the collection of taxes, duties and other levies
•
Improved user satisfaction
•
Improved control and security, facilitating computerassisted risk analysis
•
Increased integrity and transparency
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Single Window for Foreign Trade, 6th Edition
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IV.2. Benefits for the Industry
The principal benefit for the trade community is that the Single Windows can provide them with a single point or channel to submit information and documentation, which will only have to be entered once (“one time submission”). The information will arrive in all the government agencies involved in the procedures of importation, exportation and transportation. It will also improve transparency and decrease any corrupt behaviour of the public as well as the private sector. In cases in which the Single Window acts as the central point that provides
all
the
up-dated
information
in
reference
to
rules,
regulations and requirements connected to trade, it will reduce administrative costs associated with transactions and improve user satisfaction.
The benefits for agents linked to trade may be summarized as: •
Decreased costs due to the reduction of delays
•
Accelerated Customs procedures
•
Improved application of standards
•
Greater efficiency and efficacy in the use of resources
•
Increased transparency
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Single Window for Foreign Trade, 6th Edition
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Unit V. Steps for the implementation of Single Windows
The
implementation
of
Single
Windows
presupposes
great
commitment, since it involves a large number of participants (public as well as private) and requires the commitment of many actors, not only on the government side but on the business community side as well. It is therefore essential to follow a systematic methodology. The steps to follow are shown below and will be presented in detail in Module 6: Figure 5.1. Steps in the implementation of Single Windows
Source: Prepared by the author.
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Single Window for Foreign Trade, 6th Edition
1.
Module 1
Development of the initial Single Window concept: On many occasions the establishment of Single Windows begins with a brief description of the concept based on a preliminary investigation, usually instigated by the government or by some government agency. It may also be the case that a private organization, closely linked to foreign trade, initiates the study for the implementation of Single Windows.
2.
Decision to study the feasibility of a Single Window: For this decision it is advisable to organize a high level meeting in which all the agents involved in foreign trade are represented (such
as
chambers
associations,
of
commerce,
confederations
of
import
and
industries,
export business
associations, etc.), along with the government authorities and agencies, to discuss the Single Window concept. The object of the meeting is to arrive at an agreement with regard to the concept of the project and with regard to launching a feasibility study that will include a detailed analysis of the technological necessities. Assuming a positive decision is reached on developing a feasibility study, a Project Committee must be established to be responsible for Project Management, made up of leaders from the key agents that will be directly involved in implementing and utilizing Single Windows. In addition, the meeting will establish
a
project
team
consisting
of
the
technical
representatives and executives necessary to carry out the organization and implementation of the work necessary to the project.
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Single Window for Foreign Trade, 6th Edition
3.
Module 1
Perform the feasibility study: the feasibility study is a key element in the overall development of the Single Windows project. The study must determine the objective potential of the Single Window, the level and nature of the demand, the possible scenarios for implementation (including the phases of implementation),
the
nature
of
pilot
tests,
the
cost
of
implementing each of the different scenarios, other necessary resources (human, technical, etc.), the potential benefits, risks, the implementation time frame and management strategy. 4.
Analysis of the results and choice of the scenario of implementation: Once the feasibility study is finalized, the results will be presented and must be approved by the project team, and finally presented to the Project Committee for final validation. This phase will take considerable time, and it is fundamental that during the development of the feasibility study, the greatest possible amount of information be collected, and progress made toward agreements before the report is finalized. Then the model of Single Window chosen, along with the implementation scenario, will be presented to all the government authorities, the rest of the agencies and the agents linked to foreign trade.
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Single Window for Foreign Trade, 6th Edition
5.
Implementation:
Whatever
Module 1
form
chosen
for
the
implementation: by means of a pilot, by phases or by total implementation, it is necessary to initiate the project with a clear project management methodology. The Project Committee and the Project Team must both formally agree to the project management plan. It must contain a series of clearly defined, interrelated activities, as well as the most significant landmarks to assist the Project Committee and the Project Team in their task
of
planning,
executing,
monitoring,
evaluating
and
adjusting the implementation of the project.
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Unit VI. Key factors for the Establishment of Single Windows
Success in the introduction and implementation of the Single Window concept depends on an extensive number of preconditions and key factors that vary from one country to another and from one project to another. This paragraph presents a series of guidelines for project success, the results of the experience of various countries: Figure 6.1. Key factors for the establishment of Single Windows
Source: Prepared by the author.
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Single Window for Foreign Trade, 6th Edition
1.
Module 1
Political Will The existence of a strong political will on the part of the Government as well as the business community is one of the most critical factors for the success introducing Single Windows. Attaining this political will requires appropriate, clear and impartial dissemination of the objectives, implications, benefits and possible obstacles to the establishment of Single Windows. The availability of resources to implement Single Windows is often directly related to the level of political commitment and to the level of commitment to the project.
2.
Strong Leadership of the responsible Agency In relation to the necessity of political will, the existence of a lead organization with a powerful entrepreneurial spirit is essential to launch and follow through on each of the phases of development. This organization must be provided with total political support, have its own legal authority and financial and human resources available. Moreover, it is advisable for some individual within this organization to play the role of “champion� in developing the project. This leadership function, however, must be conducted in a spirit of collaboration and neutrality, at all times seeking the country benefit and not individual benefits.
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Single Window for Foreign Trade, 6th Edition
3.
Cooperation
between
Module 1
the
Government
and
Trade
Representatives A Single Window is a model of cooperation between the agencies and the government and between the government and the agents involved in foreign trade. It is a good opportunity to establish public-private cooperation for the establishment and operation of the System. Consequently, representatives of all the sectors, public as well as private, will have to be invited to participate
in the
development
of the
project
from
the
beginning. Their participation must be included in all the stages of the project, from the establishment of objectives, analysis of the situation and design of the project to its implementation. The final success of the Single Window will depend on the involvement, commitment and good will of all interested parties in order to ensure that all their needs are taken into consideration. 4.
Establishment of Goals and Objectives As in any type of project, the goals and objectives of the project must guide each of the project stages. These goals and objectives must be based on a meticulous analysis of the necessities, aspirations and resources of the key participants, as well as on the existing infrastructure and current information exchange systems. Single Windows are generally perceived as part of a country’s overall strategy to facilitate trade.
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Single Window for Foreign Trade, 6th Edition
5.
Module 1
Ease and Accessibility to the User Another key factor for the success of the Single Window project is ease and accessibility: it will be necessary to create guides and
instructions
easily
comprehensible
to
the
users.
Additionally, it is very useful to establish a Technical Support Service, which includes training, above all, for the first phases of project implementation. In some countries it will be necessary to have the service available in different languages. 6.
Legal Establishment of the Environment One of the prerequisites for establishing a Single Windows environment is to take current legislation into account. All present laws and legal restrictions must be identified. It is often necessary to make some changes in the legislation in order to facilitate exchanges / introduction of electronic information and digital event signatures. Additionally, some legal restrictions may exist in relation to the shared use of information, just as formal agreements may be necessary for Single Windows to operate between organizations. Other legal questions related to the delegation of powers and the authority of the lead agency must be analysed as well.
7.
International Recommendations and Standards The implementation of Single Windows generally implies the harmonization and standardization of trade documents and data as well. In order to ensure compatibility with other international systems and applications, these documents and data must be based on international standards and recommendations.
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Single Window for Foreign Trade, 6th Edition
8.
Module 1
Identification of Possible Obstacles It is possible that some of those involved on the government side, as well as some in the trading community, will not cheerfully accept the implementation of a Single Window. In this case, the causes of their opposition must be identified in order to deal with them as soon as possible. Each of the obstacles identified must be considered individually, taking the particular situation and its necessities into account. Clearly, cost can be one of the greatest obstacles, but costs must be weighed in consideration of the benefits that will accrue in the future. It is important, however, to clarify the financial implications of project in order to decide if the project is to be carried out globally or in phases.
9.
Financial Model A decision must be made as soon as possible in regard to the financial model the Single Window System will have. This model can vary from a system totally financed by the State to a totally self-sufficient system. Also, public-private models can be promoted. The clarity of the financial model will be one of the factors that will influence those responsible for supporting the implementation of the Single Window System.
10. Payment
Possibilities
Some Single Windows include a payment system for quotas, rates and taxes, as well as other charges. This can signify an attractive feature for the Government as well as for users and is especially interesting in the case of the system having to generate income. However, to add such payment systems involves an additional effort in harmonization and, above all, in security.
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Single Window for Foreign Trade, 6th Edition
11. Promotion
Module 1
and Marketing
Promotion and marketing of the Single Window project is fundamental and must have been carefully planned. The promotion
campaign
must
involve
key
government
representatives and the rest of the agents linked to trade. All participants can supply valuable information in regard to the expectations of the community of users and collaborate directly in choosing promotion messages. It is necessary to establish clear planning for the implementation process that will assist in designing a promotion and marketing campaign and allow potential users to plan their operations and investments taking such programming into account. The benefits and savings this type of project provides in the marketing area must be clearly identified, as well as the efficiency that derives from the use of a Single Window environment. 12. Communication
Establishing
an
Strategy adequate
mechanism
to
keep
all
the
participants informed in regard to the goals, objectives and progress (and difficulties) will increase the confidence of all those involved and avoid misunderstandings that could interfere with implementing the project. In this context, it is extremely important to adequately manage the expectations of all the participants, and never promise more than what can actually be attained. It is also important to remind participants not to expect miracles. Resolving
practical problems may mean
earning tremendous credibility.
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Bibliography
The Bibliography and support documentation consulted for the preparation of this Module are the following: •
Economic
Commission
of
the
United
Nations
for
Europe (2005). Recommendation No. 33. Guidelines on Establishing a Single Window, Annex D. •
World Customs Organization (2011). WCO Compendium. How to Build a Single Window Environment, Chapter 1.
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Single Window for Foreign Trade, 6th Edition
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Index of figures
Figure 1.1. Single Window as virtual enterprise Figure 3.1. Single Authority Model Figure 3.2. Integrated Single Window Model Figure 3.3. Interfaced Single Window Model Figure 3.4. Hybrid Single Window Model Figure 3.5. One-Stop Single Window Model Figure 5.1. Steps in the implementation of Single Windows Figure 6.1. Key factors for the establishment of Single Windows
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