Proposal of Forming eComWG/BDC- AFACT Supporting ASOCIO AEC eCom

Chinese Taipei 7 September 2016

Damansara Perdana, Malaysia

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Iran

S Korea

Japan

Vietnam

Bangladesh

Pakistan

India

Sri Lanka

Mongolia

Chinese Taipei

Indonesia

Thailand

Malaysia

Afghanistan

Singapore

Philippines

Australia

PRC

Saudi Arabia

AFACT Organization

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Founded in 1990 for stimulating, improving and promoting the ability of business, trade and administrative organizations, to exchange products and relevant services effectively through the simplification and harmonization of processes, procedures and information flows in a non-political environment. A liaison and A&P branch of UN/CEFACT under the Trade Division of UNECE whose Vice Chair and Rapporteur are AFACT Steering members.

AFACT Focal Points

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member Focal Points 性質Afghanistan Afghanistan Customs Department 政府

Australia Applied Electronic Commerce 政府/協會

Cambodia Cambodia IIC University of Technology 政府/大學

Chinese Taipei Chinese Taipei EC/EDI Committee(TEC) (至2016止) 政府

IndiaDepartment of Commerce Ministry of Commerce and

Industry政府

Iran Iran Centre for eCommerce Development (ICECD) 政府

JapanJapan Association for Simplification of International Trade

Procedures(JASTRPO)政府/協會

Korea National IT Industry Promotion Agency(NIPA) 政府/協會

Mongolian Mongolian National Chamber of Commerce and Industry

(MONPRO)政府/協會

MalaysiaMalaysian Administrative Modernisation and Management

Planning Unit (MAMPU) Prime Minister’s Department政府/協會

PhilippinesBureau of Export Trade Promotion (BETP) Department of

Trade and Industry (DTI) Philippines政府

 Saudi Arabia SaudiEDI Tabadul CEO 政府

Singapore Singapore EDI Committee 政府/協會

Sir Lanka Information and Communication Technology Agency

(ICTA)政府

ThailandElectronicTransactionsDevelopment

Agency(PublicOrganization)政府

Viet NamVietnam E-commerce and IT Agency Ministry of

Industry and Trade政府

2016 AFACT Steering Committee

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Dr. Wanawit Ahkuputra

Thailand

UN/CEFACT Bureau Structure

Business / logistics Model of Cross-border eCommerence

Mailing (Sea/ Air

Shipping)

Express Delivery

(Air transport)

Formal Trade Customs Declaration

Supplier warehouse Consumer Airport or port Customs Customs Airport or port

Supplier Mailing

Import Declaration

Mailing Consumer

Supplier

Express

Delivery Import

Declaration

Express Delivery

Consumer

Taiwan

Company Export

Declaration

Import Declaration

Warehousing

(importing

countries) Delivery Consumer

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DHL、Fedex、UPS、TNT、

Sea shipping

Air Shipping

land transportation

Harmonized Commodity Description

and Coding System (HS)

Sea/ A

ir/ Lan

d

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Dilemma faced by cross-border eCommerence

Cross border eCom vs ordinary trade from eCom platform service provider’s perspectives: Many to many, wide variety with small qty/one pc at small amount B2B2C/B2C, instead of B2B, more complex in terms of logistics and

delivery, in need of fast tracking customs declaration Existing required documents for ordinary trade too heavy for eCom Existing required process for import inspection and quarantine too

complex and time consuming for eCom No simplified documents or data exchang messages accepted across

countries or economies Hard to collect import duty from eCom goods by direct mail or express

delivery Hard to collect value added tax from overseas eCom service providers Asking foreign eCom players to register at the destination countries for

local value add tax and consumption tax Obstacle resulted from foreign exchange control, payment process not

integrated with logistics and order fulfillment processes

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China Cross Border eCommerce-- Via Direct Mail or with Bond Model

Overseas Warehouse

( Bonded Warehouses) 2. Ordering to overseas warehouse for goods according to consumer online purchase order

China Consumers

China eCommerce Service Provider

China Customs

1. Consumer’s

ordering & payment

4、Parcel shipped to

consumers

Documents of Order, Shipping, payment & ID of consumer

Cross-border

eCommerce

Service platform

Taiwan Customs

Certificate of origin

(Prior check for registration)

3. Simple declaration

Taiwan Supplier / eCommerce

Amazon, B2W, Otto, Cdiscount, Macy’s etc.

China ( Taiwan Company Owned

Bonded Warehouses)

4、shipped to consumers

Mailing/ Express Delivery

3. Postal check

Cross-border

eCommerce

Service platform

An example showing new way of controlling cross border eCom with fast tracking process

Stakeholders in Cross Border eCom

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Consumers

Local/Overseas eMarketplace

eCustoms/ NSW

Quarantine Authorities

Local/Overseas eCom Platform/

Service Provider

Ex.: AliExpress eBay Amazon WISH MATAHARI LAZADA ………..

Official CB eCom Service

Platform

Inspection Authorities

Payment Gateways

Logistics Providers

Export or Import Bonded

Warehouse

Banks

Post/ Express Delivery

Provider

Local/Overseas Merchants

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1 The services of eMarketplace and eCom Platform may be merged and integrated In one business entity

A privately owned eCom Platform may be contracted by the Customs to operate the official cross border eCom service Platform

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Tax-free ports in China to have direct

shipment from Taiwan for the small

trade market:

•Taipei Port -> Pingtan

•Gammon -> Pingtan

•Taichung Port -> Xiamen

Tax-free small trade market covers six

categories of goods: Oils and

Foodstuffs, Native Produce, Textiles,

handicrafts, light products,

Pharmaceuticals;

Tax-free value for Chinese consumers

each day: ￥ 6,000 per person

International eCommerce service

providers or suppliers using the

overseas bonded warehouse in

Taiwan (OBS) Indirect logistics

distribution to China consumers

Small Trade Market of import

and export

eCom WG under BDC/AFACT Three facets to be discussed among members of eCom WG, and supported by the

respective concerning governmental agencies of AFACT members Existing documents and messages for normal trade exchange to be reviewed and

simplified for cross border eCom business processes Fast tracking cross border eCom exchange platform connected with eCustoms and

local eCom platforms to be examined, and interoperability tested between parties Endorsement from 3 AFACT members solicited

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N2N

Business Technical

•Mailing/Express Delivery •License permission/Inspection/ Quarantine •Interfacing with Customs declaration •Duty/Taxation •Payment Gateway •eCom Business

•Logistics •Payment •Operational Requirement for cross border eCom ( Model, process, data elements and documents )

•Interfacing with Customs declaration

•Architecture of data exchange messaging

•IT security •Electronic signature •ICT platform integrating with the customs and eCom platform

Conclusion UN/CEFACT is a resource pool in terms of international trade

facilitation and e-Biz/eCom. AFACT introduce to and practice the standards, specifications and recommendations in the A&P region and test for cross border interoperability.

Simplified fulfillment related standards and reference models discussed and developed at AFACT could support cross border eCom cooperation at ASOCIO community.

The eCom WG/AFACT may be formed subject to:

A convener recommended by the Dept of Commerce of MoEA, Chinese Taipei

3 endorsements from other AFACT members

Suggest PIKOM as well as members of ASOCIO AEC eCom Alliance Subgroup endorse the form of eCom WG/BDC of AFACT and join its activities.

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Terms of Reference

Background

Mandates

Participating Members

Major Tasks

Deliverables

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Taiwan Playors

UNITOX

MOMO

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Contact Information

Dr. Eva Yi-Yuan Yueh Deputy Director General

IDEAS Institute Institute for Information Industry

Office Tel: +886-2-66072288 e-Mail: yyyueh@iii.org.tw

http://www.ideas.iii.org.tw http://www.iii.org.tw