1
Keynote Speaker Dr. Eva Yi-Yuan Yueh Dr. Eva Yi-Yuan Yueh is a Research Fellow of Digital Service Innovation Institute, one of Research Institutes of the Institute for Information industry in Taiwan. She is also Secretary General of Digital Transformation Association, DTA, founded for promoting ICT based entrepreneurship and digital transformation in corporates by adopting digital technologies and developing innovative ICT services. For the past ten years Dr. Yueh has led several teams functioning as Project Management Offices. The subjects cover Knowledge based business services outsourcing, IT service management, manufacturing services, innovation and use of ICT in manufacturing and service sectors, etc. She is now leading a team promoting Star Audit in Taiwan and the A&P region, which is a 3rd party certification scheme for ensuring IT security, data privacy, and quality and availability of cloud services with a key concept of total trust. The aim is to establish a trustworthy environment for the cloud computing and service industry. Currently, she is also managing a project advocating applications of IOT innovative services for smart retail in commercial districts of Taiwan, which is viewed as part of smart city development. She received her Ph.D. in Consumer Studies from Nottingham Trent University, UK in 1999.
2
Trade Facilitation and eTrade
2017 AFACT Secretariat 19 October 2017
3
Contents Trade Facilitation eTrade Introduction to AFACT Conclusions Suggestions
4
Trade Facilitation
5
Definition and Scope of TF WTO The simplification and harmonisation of international trade procedures, where trade procedures are the “activities, practices and formalities involved in collecting, presenting, communicating and processing data required for the movement of goods in international trade. UN/CEFACT The simplification, standardization and harmonisation of procedures and associated information flows required to move goods from seller to buyer and to make payment. Trade facilitation scope defined by World Bank Starting a business Dealing with construction permits Employing workers Registering property Getting credit Protecting investors Paying taxes Trading across borders Enforcing contracts Closing a business
6
Scope of TWN’s SW– Involving Parties Customs Broker
Carrier
(B2G) Domestic Data Exchange
Warehouse Operator
Forwarder
License Application Agency
VAN
Single Window
Single Window
Cross Border Data Exchange
(G2G) MTNet Customs
Other Govt. Agencies
port 7
port port
Framework of NSW in TWN
8
Main Task in Harmonization • Adopt international standards - WCO Data Model 3.0 • Review international trade B2G, G2G processes • Consult domain experts from private sectors • Take iterative steps toward consistent results • Automate artifacts generation • Promote new spec by incentive measures for trade related firms 9
Status of Data Harmonization for NSW ďƒ˜WCO Data Model V3.0 was the major source, whereas UN/CEFACT CC10a was the second one to map with ďƒ˜Totally 490 Data Elements for 59 messages, among which 322 mapped to WCO data element (65.7%) with remarks on some data elements for the local needs, 168 added by TW as required (34.3%)
10
Import Cargo Clearance Process
C3
Declaration Submission
Shipment Pick-up
Exami nation
Release
C3
Classification & Valuation
Accept Declaration
C2
Duty Collection
C1
Exami nation
Payment
Necessary customs declaration documents: C1: No document needed C2: Import declaration report with attachment of Bill of Lading, Invoice, packing list. P/L and other necessary license and/or permission documents may be submitted afterward, prior to shipment release C3: Amended import declaration report and other documents as in C2 C1 Exemption from Documentation and Examination C2 Document Review C3 Document Review and Physical Examination Examination prior to Valuation C3 Document Review and Physical Examination Valuation prior to Examination (Shipment release in warehouse)
Customs
Declaration
11
Challenges The development of a simplified and automated trade environment supervised by the National TF Committee established to directly report to the highest policy layer Pervasively adopt trade facilitation recommendations and standards for simplification and standardization of the global trade Problems to tackle: Excessive data and documentation requirements; Lack of transparency and use of pre-ruling systems, as well as unspecified import and export requirements Inadequate procedures and a lack of audit-based controls and risk-assessment techniques; High degree of unpredictability and lack of automation and significant use of information technology; Lack of modernization, and cooperation among, Customs and other Government agencies, which thwarts efforts to deal effectively with increased trade flow 12
Relevant UNECE Recommendations Recommendation N°. 4 - National Trade Facilitation Bodies: NTFC is recommended to be the executive body of TTFMM.
Recommendation N°. 18 - Facilitation Measures Related to International Trade Procedures: TTFMM is based on Buy-Ship-Pay Model and would effectively help materialize and institutionalize Recommendation N°. 18.
Recommendation N°. 33 - Single Window Recommendation: TTFMM would assist the establishment of single window (by providing “as-is” and “to-be” analysis) and monitor the effectiveness of SW for trade facilitation.
Recommendation N°. 34 - Data Simplification and Standardization for International Trade: TTFMM would provide analysis of “as-is” and “to-be” and monitor the effectiveness of measures on data simplification and standardization for trade facilitation
Recommendation N°. 35 - Establishing a legal framework for international trade Single Window Recommendation N°. 36 - Single Window Interoperability Recommendation N°. 40 - Consultation approaches Best Practices in Trade and Government Consultation on Trade Facilitation matters Recommendation N°. 41 - Public-Private Partnerships in Trade Facilitation Recommendation N°. 42 – Trade and Transport Facilitation Monitoring Mechanism: Implemented in Bangladesh, Nepal and Bhutan 13
Steps taken toward SW Establishment
Source: ITP_PDA_TTFMM_ 14
TTFMM Framework
Source: ITP_PDA_TTFMM 15
BPA+: An Integrated Methodology
Business Process Analysis (BPA) for diagnosis of TF bottlenecks along entire supply chain Time-Cost Distance Method (TCD) & Time Release Study (TRS) to Improve/verify BPA time and cost estimates So far, the most comprehensive TCD application is the ADB CAREC Corridor Performance Measurement and Monitoring (CPMM) Source: ITP_PDA_TTFMM_ 16
Useful References ECE Trade Facilitation Roadmap-420E National Trade Facilitation bodies and NTFB Repository, UN/CEFACT https://www.unece.org/tradewelcome/un-centre-for-trade-facilitation-and-ebusiness-uncefact/national-trade-facilitation-bodies-and-ntfb-repository.html
Trade and Transport Facilitation Monitoring Mechanism, TTFMM, UNESCAP (ITP_PDA_TTFMM) ESCAP-World Bank Trade Cost Database Global Survey on Trade Facilitation and Paperless Trade Implementation 2017 Trade Process Analysis Database
17
Background of TFA Trade Facilitation, a value realized through simplification on documentation and streamlining the procedure of customs declaration, border inspection, quarantine, etc. in order to lower transaction cost and activate international trade Import
Container
Export
Time Expense Document
Port & Pier Operation
Border Control 1. 2.
3.
Customs ď‚‚ Related authorized agencies for border control, e.g. FDA, BSMI, BAPHIQ, etc. Authorized agencies for Product Im/Export permission, e.g. IDB, BoE, etc.
18
Time Expense Document
Interior Transportation
Contents of TFA TFA Contents: 3 chapters with 24 terms 1st Chapter: Terms 1st to 12th • Measures of Legal Transparency • Measures of Simplification on Trade Procedure and Administration Fee • Measures of Strengthening Transition Freedom • Measures of Customs Collaboration 2nd Chapter: Terms 13th to 22nd • Special and favorable treatments concerning provision of and consultancy on technology, finance, and capacity building to the developing and least development members 3rd Chapter: Terms 23rd to 24th • Monitoring and coordinating mechanism for the TFA • Formation of the Committee on Trade Facilitation, and the National Committee on Trade Facilitation in each member economy 19
Essence and Scope of the TFA Transparency All relevant regulations open to the public and foreign partners Cross border customs declaration and clearance process streamlined and data transmitted throughout the IT system Non-discrimination Scope covered in the WTO’s TFA Lower or exempt duty on the ICT products to cope with and support the development of the digital economy Facilitate the trade process to reduce the cost of operations on the border and other relevant trading operations Logistics operations for enabling cross border eCom and eTrade, which are expected to reduce cost Three major subjects to be focused on: parcel (logistics), platform (data exchange), and payment (Invoicing and taxation)
20
Single Window Related RecommendationsGuidance on the Concept of SW Single Window: One of major measures for cross border trade and trade facilitation One of the obligations cited in the WTO’s Trade Facilitation Agreement
Recommendation 33: the definition and base principles Recommendation 34: Data Simplification and Standardization Recommendation 35: the Legally Enabling Environment Recommendation 36: Single Window Interoperability. 21
UN/CEFACT Current Active Projects
Women in Trade Facilitation (White Paper) Paperless Trade (White Paper) Core principles of Single Window Single Submission Portal (instigated by Alibaba) Cross Industry Invoice Repository Cross Industry Scheduling (Public Review) Extension of Cross Industry deliverables (aligning to SC-RDM – Public Review) eCMR (part is in Public review) MMT-RDM Pipeline Block Chain (White Papers) Trusted Transboundary Environment Traceability Framework Traceability of Plant, Animal and bi-products Code Management Library Publication Formats Head/Envelope Document Exchange Project
22
E-Trade
23
E-trade vs Traditional Way
24
Digital Trade (e-Trade) Good for speeding up the movement of goods, and enabling SMEs to participate in the global trade. The cross border information flow should be further streamlined and ensured in the digital trade Emphasizing on the trust between trading partners by providing returns and reverse logistics as well as payment refund mechanism Consumer protection and online dispute resolution emphasized in TPP Beneficial for SMEs and developing countries to join global trade
25
Type of e-Trade
The Internet acts as a low-cost platform for advertising, exchanging information between buyers and sellers, and enabling a more efficient allocation of tasks among actors like individual contractors.
The areas where the trade itself is happening through digital channels, and where the goods and services concerned are “embodied” in digital form
Source: A policy framework for two types of e-trade, SUBMITTED BY MARCUS BARTLEY JOHNS ON FRI, 05/27/2016COAUTHORS: MICHAEL FERRANTINO, MARTIN MOLINUEVO 26
E-Trade Environment
At each level, different policies and regulations are relevant, as are financing and technical needs facilitated by development organizations like the World Bank Group. Source: A policy framework for two types of e-trade, SUBMITTED BY MARCUS BARTLEY JOHNS ON FRI, 05/27/2016COAUTHORS: MICHAEL FERRANTINO, MARTIN MOLINUEVO 27
E-Trade: Nat’l and Int’l Policy Implications Different types of e-trade involve different issues that have policy implications both at the national and international levels. E-commerce (where goods and services trade facilitated by the Internet) National implications: National Goods: trade policy affecting e-Trade environment; • Critical issue: tradeframework facilitationfor cost down and increase access to mobile appropriate regulatory phone andused digital • Tools bynetwork; seller/buyer: web platform to engage in online identifying the most relevant type of e-Trade; retailing/trading prioritizing Service: the reform of broadband connectivity, digital literacy, adequate epayment solutions, and an enabling regulatory framework for related services • Critical issue: consumer protection for easy of access to online services and data International Digital Trade implications: (where goods and services traded in digital form) Critical issues: efficiently government policies enabling cross border What rules needhow to be negotiated? flow data • a of more intensive process of exploring what trade rules already cover aspects • Free flowofofe-trade data and maintaining privacy protection • where new rules or updates to existing ones might be needed. Enablers: basic internet connectivity Where should these negotiations take place? What the starting point should Needed actions: strengthening trade facilitation, streamlining non-tariff be? measures, and improving the services regulatory regime 28
Issues of E-Trade How e-trade can foster inclusion Regulating e-trade without creating distortions E-trade facilitation: cross border procedures facilitating small shipment and low-value trade Tackling digital divide to take full advantage of e-Trade, i.e. improving digital connectivity
29
Introduction to AFACT
30
AFACT Mandates AFACT, Asia Pacific Council for Trade Facilitation and Electronic Business, was established in 1990 with currently 20 members, 1 associate member of PAA, and 1 liaison member of UNESCAP. Being a non-profit, non-governmental organization it is open to participation from the representatives of member economies and experts from private sectors within the Asia-Pacific region. AFACT aims to promote the commitment and development of trade facilitation, electronic business policies and activities , mainly focusing on those promoted by UN/CEFACT to promote the ability of business, trade and administrative organizations from members. 31
Membership
32
2018 AFACT StC Members* Ali Ashfak AFACT Chair Bangladesh
Dr. Gary Gong AFACT Vice Chair Chinese Taipei
Dr. Ambreesh Kumar Vice Chair (TBD) India
Donghwan Oh Elected HoD Korea
Supachok Jantarapatin BDC Chair Thailand
Tahseen A. Khan UNCEFACT VC India
Dr. Ramezan Ali Sadeghzadeh Elected HoD Iran
Hisanao Sugamata TMC Chair Japan
Dr. Urachada Ketprom UN/CEFACT Rapporteur Thailand
Dr. Mahmood Zargar General Secretary of AFACT Iran
Dr. Eva Yueh CSC Chair Chinese Taipei
Yann Louis Duval UN ESCAP Representative Thailand
*2018 AFACT StC composition needs to be discussed in October monthly StC con-call to change the elected HoDs whose 2 year term has been expired. 33
AFACT Structure AFACT Plenary Steering Committee Business Domain Committee( BDC)
Tourism, Travel & Leisure WG Cross Border eCom Platform WG
Cross Industry eInvoice
Tech & Methodology Committee(TMC)
Permanent Secretariat Community Support Committee(CSC)
Cloud Computing Major activities: Mid-term Steering Committee Meeting Annual plenary meeting Working Group meetings Bi-annual eASIA Awards Bi-annual AFACT Yearbook
34
2017 eASIA Awards Ceremony
Postal Cash Card: Banking for the Unbanked People
Hajj Management Information System
Category 1: Trade Facilitation & eComCategory 2: Open Digital Government
National Intra-Network Project for Bangladesh Government (InfoSarker)
Category 3: Data Driven Category 4: Creating Value Inclusive Digital Creation Opportunities 35
Special Honorary Award & Appreciation for Contribution
Hand Over of AFACT Token
36
Conclusions Bangladesh has declared worldwide ‘Make in Bangladesh’ as one of National Development Strategies, trade facilitation is crucial for simplifying trade procedure and standardizing data exchanged in cross border trade for ICT goods E-Trade facilitation is another measure for enabling SMEs to join global eCommerce arena and speeding up small /low value shipment customs declaration
37
Suggestions Support Bangladesh Computer Samity to host 2018 AFACT meetings in order to get familiarized with AFACT affairs and its relationship with UN/CEFACT Actively participate in AFACT activities by continually getting involved in a specific WG or a subject matter discussion Introduce and adopt UN/CEFACT recommendations on trade facilitation and single window step-by-step Attend UNESCAP’s UNNext training program for capacity building
38
Contact Information Dr. Eva Yi-Yuan Yueh
Research Fellow Digital Service Innovation Institute Institute for Information Industry Office Tel: +886-2-66072288 e-Mail: yyyueh@iii.org.tw http://www.iii.org.tw 39
40