Business (trade) Process Analysis
for Trade Facilitation
Outline
1. What is Business Process Analysis and Why it
is Required?
2. Examples of output from BPA Studies in WP3
2
What is a Business (trade) Process and it’s Analysis?
 A Business Process is a collection of
related and structured activities or tasks
that produce a specific service or product.
 Example
- Obtaining a fumigation certificate for rice export
- Applying and Issuing Process for a Certificate of
Origin
- Customs Clearance Process at the Border Point
3
What is..
 ..a Business Process Analysis?
An analysis and modelling of business processes
for improvement, simplification and automation
 Example
- Documenting existing practice in an
administration/company
- Describing a “Standard Procedure”
- Identifying quantitative indicators (time, cost, docs)
- Recommending ‘to-be’ situation or TF measures
4
Supply Chain Complexity
Source : Complex Networked Supply Chain [Harwick, 1999
Trade Movement – 3 Kinds of Flow
Seller
(Exporter)
Physical Goods
Buyer
(Importer)
Payment
Information/Documents
Wholesalers
Cargo Insurance
Post-Harvesters
Farmers
Banks
Exporters
Importers Traders Consumers
Freight Forwarders
Customs Other-Government-Agencies
Traders
Ship Agent
Transport-Operators
Terminal-Operator
Carriers
Why conduct a Business Process Analysis?
Business Process Analysis is a practical study
 to understand attributes of business processes,
and their relationships
Who
involved
Procedures
and Documents
required
Related Rules
and Regulations
Some
quantitative
indicators
7
What are benefits of Business Process Analysis?
8
Use Case Diagram of Rice 3)Export
from Myanmar
Ship
3.2) Arrange overseas shipping
Bank
Customs
department
3.3) Arrange pre-inspection
and fumigation
1) Buy
1.1 Sales contract
3.4) Declare CusDec 2
ICD
Shipping line
3.5) Collect empty container
from ICD and deliver it to warehouse
Importer
2) Pay
Exporter (or
representative)
2.1) Make advance
payment
Importer’s
bank
3.1) Obtain Export License
Directorate of
Trade, MOC
Transporter
3.6) Stuff containers
at warehouse
3.7) Deliver to port of departure
for Customs examination
Exporter’s
bank
Customs broker
Port
3.8) Examine commodity
3.9) Handle and load
the goods onto the vessel
SAD
3.10 ) Prepare required
shipping documents for buyer
3rd party
inspector
3.11) Deliver shipping
documents to buyer
FDA
Courrier
Transporter
Port terminal
3rd party inspector
Exporter (or representative)
Customs department
at the port
Shipping Agency
Department (SAD)
3.8.1Request
for examination
3.8.1 Request
for delivery
3.8.2 Receive request to
send the loaded Container
to Customs yard
3.8.2 Receive the
request for fumigation
3.8.2 Receive port
challen, SI, and
103 challen
3.8.1 Request
for fumigation
3.8.1 Submit 103 slip,
shipping instructions,
& Port Challen
3.8.2 Receive request
3.8.3 Register case file
3.8.4 Reviews
case file
3.8.5 Order to the port
Customs examination team
3.8.3 Check the
container against
103 challen
3.8.6 Examine
the goods
Found
incorrect
Found correct
3.8.7 Fumigate the
containers after
Customs examination
3.8.8 Allow shipment
3.8.9 Allow
to load cargo
3.8.6 Check with
loading list and
prepare mate receipt
Time-procedure Chart for Importing Animal Feed to Lao
PDR
1. Check demand of import for animal feed by Livestock and
Fishery Division, Customs and Trade Division
2
2. Certify of farm’s animal feed demand for importing
5
3. Declare of import documents to custom office at the border
point for approval
3
4. Pay import tax, fee and custom to treasury office
2
5. Inspect of import goods by custom inspector at the checked
point
1
6. Inspect of import goods by Agriculture Quarantine officers at
the checked point
1
7. Trucks transport all goods to destination places
1
8. Pay to the export representative
2
TOTAL
17
Documents Required for Jute Bag Exports to India from
Bangladesh
Sl.
Procedures
Docs
Reqd.
Details Documents List
1
Receive order from the buyer, set
the trade terms and finalize sales
contract
6
Proforma Invoice, Commercial Invoice, Export License,
Offer Letter, Sales Contract, Copy of TT
2
Contract inland transport agency
1
Transport Invoice
3
Prepare export documents
10
Proforma Invoice, Commercial Invoice, Certificate of
Origin, SAPTA Certificate, Phytosanitary Certificate,
Packing List, Export License, Sales Contract. Transport
Invoice, Copy of TT
4
Transport to port of departure
Nil
5
Obtain customs declaration from
the customs authority at the land
port (mainly by the C&F agent)
14
Proforma Invoice, Commercial Invoice, Certificate of
Origin, SAPTA Certificate, Phytosanitary Certificate,
Packing List, Export License, Sales Contract. Transport
Invoice, Copy of TT, Export Form, VAT and Source Tax
Chalan, Bill of Entry
6
Customs inspection and clearance
16
Proforma Invoice, Commercial Invoice, Certificate of
Origin, SAPTA Certificate, Phytosanitary Certificate,
Packing List, Export License, Sales Contract, Transport
Invoice, Copy of TT. “C” Form, Out Pass
7
Border checkpoints
16
Proforma Invoice, Commercial Invoice, Certificate of
Origin, SAPTA Certificate, Phytosanitary Certificate,
Packing List, Export License, Sales Contract. Transport
Invoice, Copy of TT, “C” Form, Out Pass
None
Economic impact of bottlenecks in business processes of
cross border trade
 Each additional day of delay (e.g. because of
trade logistics procedures) reduces trade
by at least 1%
Source: Simeon Djankov, Caroline Freund, and Cong S.
Pham. (2007). Trading on Time. Washington, D.C.: World
Bank.
 “Direct and Indirect Cost from import/exportrelated procedures and required documents is
about 1-15% of product cost.”
Source: OECD. (2003). Quantitative Assessment of the
Benefits of Trade Facilitation. Paris: OECD Publications
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