trends for collaboration in international trade: building a network of inter-organization...

Trends for collaboration in international trade:

building a network of inter-organization information systems

Somnuk Keretho, PhD, Kasetsart Universityand Markus Pikart, UNECE

Capacity Building Workshop on Facilitating Cross-Border Paperless Supply Chain

10-11 July 2013UN Conference Centre, Bangkok

Objectives of this presentation

To argue that “Trade-related Single Window”* as successfully implemented in many developing economies is not the only information exchange platform that contributes positive results for trade facilitation.– But there are other types of Inter-Organization

Information Systems (IOISs) that exist or that should be implemented to provide good benefits for the development of trade in the country.

– Interoperability between these different IOISs (including SW) is the key success factor to future supply chain efficiency.

To propose a draft policy framework to provide an environment for establishing collaboration and interoperability between IOISs (building a network and synergy of IOISs).*UN/CEFACT Recommendation No. 33 in Single Window, published in 2005 (almost 10 years ago)

Topics1. A structure to classify different inter-

organization information systems (IOISs) in international trade

2. The need for interoperability between IOISs3. Creating the framework for IOIS collaboration4. Conclusions and recommendations

Single Window Implementation Worldwide

71 out of 185 economies have implemented Single Window systems.

Positive results from SW implementationhave been reported.

Electronic systems for trade across bordersas reported in the World Bank’s Trading Across Border Report for

2012

Single Window - to enhance the efficient exchange of information between traders and

government.Single Window is a facility that allows parties

involved in trade and transport to lodge standardized information and documents with a single entry point to fulfill all import, export, and transit-related regulatory requirements. If information is electronic, then individual data elements should only be submitted once.

UN/CEFACT Recommendation and Guidelines on establishing a Single Window, UNECE, 2005

http://www.unece.org/cefact/recommendations/rec33/rec33_ecetrd352_e.pdf

http://www.unece.org/cefact/recommendations/rec33/rec33_ecetrd352_e.pdf

Some Observations- several opportunities for further

improvement -1. One size does not fit all

- there are many different SW models & approaches, e.g.• e-Customs, Customs-Oriented Single Window• Trade- and Cargo-Oriented Regulatory Single Window• Transport-Oriented Regulatory Single Window, e.g.

EU e-Maritime or Maritime Single Window2. Different models other than regulatory-oriented

SWs - Other types of “Inter-Organization Information Systems” (IOISs)

exist and emerge for facilitating information flow among different sets of stakeholders (not just for regulatory requirements as in the original UNECE definition of SW), e.g.• Port Community Systems (PCSs) • e-Navigation• e-Freight• e-Commerce, etc.

Some Observations- several opportunities for further

improvement -3. Different inter-organization collaborative platforms

are normally created based on some closely-related processes, and consequently they establish different Inter-Organization Information Systems (IOISs), e.g. - those related to port operations, e.g. Port Community

Systems - those related to transport services, e.g. e-Freight - those related to transportation regulations,

e.g. maritime and clearance of ships like e-Maritime - those related to trade- and cargo-oriented regulations, e.g.

NSW for Customs and import/export-related procedures of OGAs

4. Interoperability among those different IOISs has potential benefits, especially those involved with overlapping information among different IOISs along the international Supply Chain.

Documents related to Rice Exportation that could be electronically improved

(from purchase order until the cargo container leaving the sea port)

21. Master Sea Cargo Manifest(17)22. House Sea Cargo Manifest (37)

23. Export Declaration (114)24. Good Transition Control List (27)25. Application for Permission to Export Rice (KP. 2) (24) 26. Sales Report (KP 3) (21)27. Application for the Collection of the Permit for the Export

of Rice (A. 3) (35)28. Permit for the Export of Rice (A. 4) (35)29. Application for Certificate of Standards of Product (MS.

13/1) (44) 30. Certificate of Analysis (17)31. Certificate of Product Standards (MS. 24/1) (45)32. Certificate of Fumigation (21)33. Application for Phytosanitary Certificate (PQ. 9) (29)34. Phytosanitary Certificate (33)

35. Application for Certificate of Origin (42)36. Certificate of Origin (38)

1. Proforma Invoice (35)2. Purchase Order (39)3. Commercial Invoice (51)4. Application for Letter of Credit (24)

5. Letter of Credit (32)6. Packing List (25)

7. Cargo Insurance Application Form (20)8. Cover Note (23)9. Insurance Policy (24)10. Booking Request Form – Border Crossing (25)11. Booking Confirmation – Border Crossing (30)12. Booking Request Form – Inland Transport (16)

13. Booking Confirmation – Inland Transport (18)14. Bill of Lading (42)

15. Empty Container Movement Request (TKT 305) (20)16. Request for Port Entry (TKT 308.2) (27) 17. Equipment Interchange Report (EIR) (24)

18. Container Loading List (28)19. Container List Message (32)20. Outward Container List (34)

* Number in parenthesis is the no. of data elements

36 Documents involving 15 parties, and more than 1,140 data elements to be filled in

A Case Example

Regulatory Docs

Transport Docs

Commercial Docs

Currently, Thailand Single Windowprovides e-services mainly on regulatory documents and associated processes, but

port/transport/buy/pay related electronic procedures still need to be improved.

Pay

Prepare for

ExportExport Transport

Load/ Unload WarehouseOperations Port Operations

Prepare for Import Import

Permits & Certificates for

VesselsTraffic Control Vessel

Piloting

Customs Clearance

Other regulatory agencies’ control

ShipBuyInternational Supply Chain1.

Transport Supply Chain2.

Transport Infrastructure Management

3.

Transport Regulations4.

TradeRegulations5. Agriculture

Control

Layers of Business Process Areas in the international supply chain

Pay

Prepare for Export Export Transport

Load/Unload WarehouseOperations Port Operations

Prepare for Import Import

Permit & Certificates for

VesselsTraffic Control Vessel

Piloting

Customs ClearanceOther regulatory agencies’ control

ShipBuyInternational Supply Chain1.

Transport Supply Chain2.

Transport Infrastructure Management

3.

TransportRegulations

4.

TradeRegulations5.

e-Commerce(e.g. Amazon)

e-Freight (e.g IATA e-Freight), Track & Trace Systems

Port CommunitySystem (PCS), Warehouse InformationSystems

Maritime SW, e-Navigation, SafeSeaNet

Trade SW, e-Customs,NCTS*

Agriculture Control

*NCTS: New Computerized Transit System

Layers of business process areas and related IOIS systems

Collaboration between IOISsTo provide the complete set of services for

international supply chain, different IOIS systems need to collaborate, e.g.– The links between PCS and trade SW for efficient

port operations and regulatory coordination.– The links between e-Freight and PCS

However, it is not necessary to establish collaboration and interoperability between each and every IOIS systems. Instead, IOIS collaboration is only necessary when and where it creates added value for stakeholders.

A Collaboration Scenario between two IOISs

Customs

Border Control

Food and Veterinary

Safety and Security

Other OGAs

Shipping Lines

Terminal Operators

Freight Forwarders

Transporters

Warehouses

RegulatoryAgencies

Transport Operators

Related to a PortInteroperability between NSW &

PCS

NSW PCS

MaritimeProcess Agreement,

Harmonization for Data Semantics,Data Privacy/Security,

Service Level Agreement,Legal Agreement

The Network of IOISs for cross-border supply chain

MaritimeSW

TradeSW

e-Freight

PortCommunity

System (PCS)

e-Trade

A network of networksof inter-agencycollaboration

Buyers/Importers

MarineDepartment

Ship Piloting

Vessel TrafficSafety

Ship Agents

Sellers/Exporters

Importer’sBanks Exporter’s

Banks

Port Authority

Terminal Operator

VesselOperator

FreightForwarders

HaulerOperators

Warehouses

TerminalOperators

RegulatoryAgents

Port-equipmentOperators

CustomsDepartment

Quarantine &SPS Agency Other government

agencies

HealthDepartment

CustomsBrokers

Traders

Freight ForwardersTraders

Haulers

Vessels Air lines

The proposed framework for IOIS colloboration

A demand-driven strategy for IOIS interoperabilityInteroperability between two different IOIS requires

among others the following:– A vision for collaboration– Rules of engagement– A framework of trust and service level agreements– Common understanding of shared business

processes– Common standards for data exchanges

Layers of Interoperability between IOIS systems

Strategic View

Business OperationView

Technical View

1. Strategic decision by IOIS executives

2. Rules of engagement

3. Service level agreements

4. Business Process Interoperability

5. Sematic Interoperability

6. Syntax and Technical Interoperability(data structures and technical protocols)

Conclusions As the economy develops, there will be more and more IOIS systems

establish. European countries have led the development of IOIS systems. They are

now increasing relevnat for Asia and Pacific countries. IOIS systems can be clustered into layers to closely-related process

areas of the international supply chain. Policy makers need to have a balanced view in implementing IOIS

systems in their country to ensure that different IOIS systems cover all process areas of the national trade.

As more IOIS systems are established in the economy, they begin to overlap in terms of stakeholders and services they provide.

Significant benefits can ve realized if collaboration between IOIS systems is established.

Recommendations for policy makers

1. To recognize the important role of different IOIS systems for the development of trade (e.g. not just regulatory SW)

2. To make a national inventory of IOIS systems in the country, and to identify areas where additional IOIS systems could improve efficiency and security of the international supply chain

3. To negotiate at the international level a set of common principles, rules and best practices for IOIS inteoperability, and to establish these rules as an international standard for IOIS interoperability, and

4. To encourage decision makers of national IOIS systems to adhere to this standard.

Thank you for your kind attention

Somnuk Keretho, Ph.D.Kasetsart University, Bangkok

[email protected]

Markus PikartUNECE, Geneva

[email protected]

trends for collaboration in international trade: building a network of inter-organization...

Documents

single window systems

traderelated single

different ioiss

standardized information

information flow

single entry point

synergy of ioiss

electronic systems