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Dagang Net Technologies Proposalfor the implementation of the
OIC Single Window
February 26th, 2013
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Agenda
OIC Single Window Implementation Proposal
• About Dagang Net Technologies
• Lessons from other Cross Border e-Trade Initiatives
• Requirement Highlights
• Proposal for OIC Single Window
• Benefits
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About Dagang Net Technologies
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Corporate overview
Incorporated in
1989Incorporated in
1989Trade
Facilitation
TradeFacilitation
Government-Linked
Company
Government-Linked
Company
Malaysia’s
National SingleWindowOperator
Malaysia’s
National SingleWindowOperator
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ExpertiseExpertiseInfrastructureInfrastructureExperienceExperience
Core competencies
Trade FacilitationPioneer
E-CommerceCommunity Builder
Private-PublicCollaboration
State-of-the–artFacilities
Integrated intelligentinfrastructure
Certified ISO/IEC27001:2005
Standards Development
National ICT StrategicConsultancy
240 staff strength
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Community Building Experience
EDI Malaysiaestablished
EDI Malaysiaestablished
198919891st
CommunitySystem (CS)
1st
CommunitySystem (CS)
19941994
ePermitePermit
20052005ASEAN SW
National SW
ASEAN SW
National SW
20092009
FAMA 3P -WTO
Standards
FAMA 3P -WTO
Standards
20112011
AlignedDocumentation
System
AlignedDocumentation
System
19911991
ePCOePCO
20072007
ePermits forStrategicTrade Act
2010
ePermits forStrategicTrade Act
2010
20102010
Customs-DagangNet
System
Customs-DagangNet
System
19951995
Free ZoneCommunityFree Zone
Community
19981998
CS expansionNationwide
ElectronicFund Transfer
eManifest
CS expansionNationwide
ElectronicFund Transfer
eManifest
19961996
eManifestimplementation
for smallerports
eManifestimplementation
for smallerports
20122012
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“THE LEADING COMMUNITY BUILDER THROUGH E-COMMERCE AND BUSINESS FACILITATION”
NATIONALSINGLEWINDOW
NATIONALSINGLEWINDOW
GovernmentAgenciesBack-OfficeSystem
GovernmentAgenciesBack-OfficeSystem
ASEAN SingleWindowASEAN SingleWindow
Forwarders
Importers -Exporters
Shippers
CUSTOMSCUSTOMS
Permit Issuing AgenciesPermit Issuing Agencies
Port OperatorsPort Operators
Port AuthoritiesPort Authorities
ASEANASEAN
BankBank
173173
2525
66
66
88
77
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Lessonsfrom other
Cross Border e-Trade initiatives
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IndonesiaASW
Server
IndonesiaASW
Server
MalaysiaASW ServerMalaysiaASW Server
Lessons from Regional Initiatives
ASW(Cross-Border)
e.g. ePCO
Member Country(Malaysia NSW)
Member Country(Indonesia SW)
Ministry of TradeIndonesia
CustomsCustoms
Business ValueSome initiatives have focussed ontechnical and legal areas, at times losingsight of the core value / requirements tobe delivered
Legal FrameworkWhile complex due to the plethora ofnational legislation, some initiativesexperience unnecessarily long delays inaccepting the validity of cross borderelectronic documents
Does Country B trust Country A’sTrusted National Domain?
Technical• Result of identified business value and processes, not the driver• Proven technology is readily available• “Central” architecture raises questions of:
o Privacy, confidentialityo Liability taken by operator of “central” systemo Who is the operator of the “central” system
GovernanceAcceptance of diversity of MemberCountriesClear approach on separation between
o Policy and Implementationo National and Regional matters
Dedicated “organizational unit” to driveoperation decisions and implementation
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Proposal for OIC Single WindowBusiness ProcessesLegal Framework
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Cross Border Trade – Simplified Overview
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Potential Cross Border Business Processesthru the OIC Single Window
Facilitate PreferentialDuty Rates on Import -
country and rules oforigin
e.g. Preferential TariffScheme - PRE-TAS
Facilitate pre-arrivalclearance on imports
consignment info prior toloading – 24 hour rule; 4hour rule - housemanifest, bill of lading, airwaybill
Share export, importdetails - improveintelligence & risk
management
Health, Food, Community SafetyHalal certificates;Phyto-sanitary certificates; HealthcertificatesStrategic commodities
Authorized EconomicOperator (AEO) programs
Exchange status of AEO’s tofacilitate “green” lane
CommercialPurchase order,commercialinvoice, packinglist, letter of
credit….
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Legal Framework forOIC Single Window
Acceptance of electronic documents /signatures with same legal standing aspaper, within national borders
In general, orFor specified documents to be exchanged cross border
Mutual Trust between secure NationalIT Domains of Member Countries
May be supplemented by External Security Audit of agreedsecurity criteriaSimilar to “trusting” paper documents issued andsubmitted by another government
Digital signatures and encryptionfor exchange between secure National IT domains, with two or more
keys / certificates for each Member Country
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OIC Single WindowTechnical Concepts
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OIC Single Window Technical Concept–1Distributed
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OIC Single Window Technical Concept–1Distributed
Regional OIC ExchangeGateway in trusted National ITDomain of each Member CountryReliable, secure once-and-only onceexchange over the Internet Security(digital signatures, encryption,certificate management)
Documentformat
translationAudit trails
Tracking andReporting
Statistics toOIC Coordination
Services
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OIC Single Window Technical Concept–1Distributed
OIC Coordination ServicesCollate and report on Statistics
On-board Member Countries and profilemanagement
Optional Mapping on behalf of Member CountriesOIC Document Structure Adoption and Promulgation
Coordination of Interoperability TestingChange Management
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OIC Single Window Technical Concept–2Central
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OIC Single Window Technical Concept–2Central
• Central Architectureappears simpler for eachMember Countryo Only one party to exchange
witho Can perform central
translation
• Each Member Countryo Still needs OIC Exchange
Gateway functionalityo Needs to assist in the
definition of the centralmapping
o May not want to sharetrade exchanges with anunrelated party• “Central” architecture
questionso Privacy, confidentiality?o Liability taken by operator of
“central” system?o Who is the operator of the
“central” system?
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OIC Single WindowGovernance and Implementation
Approach
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Challenges
• Decision Making and Collaboration amongstdiverse Stakeholders– Defining Business Value and Investment for Cross Border
Exchange• Infrastructure and Policy
• National
• Regional / Cross Border
– Acceptance of electronic documents / signatures• National
• Cross Border
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Suggested Governance Structure forOIC Single Window Implementation
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OIC Single WindowProject Management Methodology
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OIC Single WindowImplementation Approach
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Benefits
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| © 2009 Axway | Allrights reserved.
26
Example Economic ImpactElectronic Certificate of Origin
Korea Chinese Taipei (APEC Study 1)
Korea ExportUS$/TEU Document
preparationCustomsclearance/ technical
control
Ports andterminalhandling
Inlandtransport/handling
Totals
Before e-CO $210 $175 $284 $584 $1,253
After e-CO $27 $84 $284 $584 $979
Improvement $183 $91 $0 $0 $274
Improvement% 87% 52% 0% 0% 22%
1APEC Study August 2011 - Reducing trade transaction costs in APEC through electronic commerce:A case study of Electronic Certificate of Origin (ECO)
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| © 2009 Axway | Allrights reserved.
27
Example Economic ImpactElectronic Certificate of Origin
Korea Chinese Taipei (APEC Study 1)
Chinese Taipei– ImportUS$/TEU Document
preparationCustomsclearance/ technical
control
Portsand
terminalhandling
Inlandtransport/handling
Totals
Before e-CO $179 $355 $319 $313 $1,165
After e-CO $92 $44 $319 $313 $768
Improvement $87 $310 $0 $0 $397
Improvement%
49% 88% 0% 0% 34%
1APEC Study August 2011 - Reducing trade transaction costs in APEC through electronic commerce:A case study of Electronic Certificate of Origin (ECO)
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Together we can achieve
FUTURETo facilitate trade growth
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Together we can achieve
Reduced Trading TransactionCosts and Clearance Time
Improved Trading Efficiency andTransparency
New Opportunities
TradersTraders
Member CountriesMember Countries
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Thank you