Thailand’s National Single Window Development Somnuk Keretho, PhD Director, Institute for IT Innovation Kasetsart University, Bangkok . sk@ku-inova.org An integrated Trade Facilitation Strategy for Greece including Single Window 19-20 July 2012, Athens, Greece Thai Case Logistics as the National Competitiveness Strategy recognized by the Government and Business Leaders in 2003. Logistics Cost/GDP1 Thailand Japan USA EU ~19% ~ 11% ~ 9% ~ 7% This is a threat, but also an opportunity for improvement. 1 2 Page 2 Ref: The Brooker Group Thailand GDP, 2004: ~6 million-million bath An integrated Trade Facilitation Strategy for Greece including Single Window , 19-20 July 2012, Athens, Greece Somnuk Keretho, PhD Background Facts / Findings Thailand logistics cost to GDP (1998-2007) was in a range of 17 - 20 percents (about double the cost of many developed countries…) Logistics and trade facilitation are the important factors that contribute to the competitiveness of developing countries Thailand logistics service is mostly in the beginning stage of development There is a significant potential for Thai logistics business services to grow and create economic values for Thailand and enhance international trade efficiency between Thailand and other countries. Thailand Logistics Development Brain storming in 2003 Thailand Single Window e-Logistics Plan (2004) Logistics Development Strategy (2005-2007) Page 3 An integrated Trade Facilitation Strategy for Greece including Single Window , 19-20 July 2012, Athens, Greece Somnuk Keretho, PhD Logistics Development Master Plan (2007 - 2011) endorsed by the Thai Cabinet on Feb 2007 To reduce the trade logistics cost from 19% (2007) to 16% (2011) (comparing to GDP) Page 4 An integrated Trade Facilitation Strategy for Greece including Single Window , 19-20 July 2012, Athens, Greece Somnuk Keretho, PhD Trade Movement – 3 Kinds of Flow Seller (Exporter) Physical Goods Buyer (Importer) Payment Information/Documents Traders Post-Harvesters Farmers Banks Exporters Freight Forwarders Customs Cargo Insurance Wholesalers Traders Consumers Importers Other-Government-Agencies Ship Agent Transport-Operators Terminal-Operator Carriers Page 5 An integrated Trade Facilitation Strategy for Greece including Single Window , 19-20 July 2012, Athens, Greece Somnuk Keretho, PhD Thai Case Example Documents related to Exportation of Rice (from purchase order until the cargo container leaving the sea port) 36 Documents involving 15 parties, and more than 1,140 data elements to be filled in 1. Proforma Invoice (35) 2. Purchase Order (39) 3. 21. Master Sea Cargo Manifest(17) 22. House Sea Cargo Manifest (37) Commercial Invoice (51) 23. Export Declaration (114) 4. Application for Letter of Credit (24) 24. Good Transition Control List (27) 5. Letter of Credit (32) 25. Application for Permission to Export Rice (KP. 2) (24) 6. Packing List (25) 26. Sales Report (KP 3) (21) 7. Cargo Insurance Application Form (20) 27. 8. Cover Note (23) Application for the Collection of the Permit for the Export of Rice (A. 3) (35) 9. Insurance Policy (24) 28. Permit for the Export of Rice (A. 4) (35) 10. Booking Request Form – Border Crossing (25) 29. 11. Booking Confirmation – Border Crossing (30) Application for Certificate of Standards of Product (MS. 13/1) (44) 12. Booking Request Form – Inland Transport (16) 30. Certificate of Analysis (17) 13. Booking Confirmation – Inland Transport (18) 31. Certificate of Product Standards (MS. 24/1) (45) 14. Bill of Lading (42) 32. Certificate of Fumigation (21) 15. Empty Container Movement Request (TKT 305) (20) 33. Application for Phytosanitary Certificate (PQ. 9) (29) 16. Request for Port Entry (TKT 308.2) (27) 34. Phytosanitary Certificate (33) 17. Equipment Interchange Report (EIR) (24) 35. Application for Certificate of Origin (42) 18. Container Loading List (28) 36. Certificate of Origin (38) 19. Container List Message (32) 20. Outward Container List (34) Page 6 Buy/Pay Docs Transport Docs Regulatory Docs * Number in parenthesis is the no. of data elements An integrated Trade Facilitation Strategy for Greece including Single Window , 19-20 July 2012, Athens, Greece Somnuk Keretho, PhD Conduct Business Process Analysis - Exporting Jasmine Rice from Thailand - 16 days required for procedures & Day documents handling 20 Time-Procedure Chart 4 days 16 15 3 days 10 2 days 5 2 days 2 days 2 3 days 4 6 9 10 14 12 5 3 1 0 1 2 3 4 5 6 1. Buy - Conclude sales contract and trade terms 2. Obtain export permit 3. Arrange transport 4. Arrange the inspection and fumigation 5. Obtain cargo insurance 6. Provide customs declaration 7. Collect empty container(s) from yard Page 7 1 day 8 1 day 11 1 day 13 7 7 8 9 10 11 12 13 14 Process 8. Stuff container(s) 9. Transfer to port of departure 10. Clear goods through customs 11. Handle container at terminal and stow on vessel 12. Prepare documents required by importer 13. Verify the accuracy/authenticity of exported cargo 14. Pay - Claim payment of goods An integrated Trade Facilitation Strategy for Greece including Single Window , 19-20 July 2012, Athens, Greece Somnuk Keretho, PhD Exporting Rice (from purchasing time till the vessel leaving the port) 36 required documents (only 4-6 e-documents) 15 Stakeholders involved 14 big steps (123 small steps) 16 days needed (all together) – 6 days for regulatory procedures – 7 days for transport-related procedures – 12 days for traders, banks and insurance procedures Page 8 An integrated Trade Facilitation Strategy for Greece including Single Window , 19-20 July 2012, Athens, Greece Somnuk Keretho, PhD Current Situation (2007) - Declaration - Invoice - Packing List New Generation of EDI (ebXML MS/XML Messages/Digital Singnatures) Server Browser (Request for C/O) Exporter Browser (Request for Health Cert.) except Shrimp (Request from Dept of Fisheries) About 80% of required documents are physical papers not electronic papers yet. Paperless Customs Declaration and Clearance Customs Dept Web-Based Application (Certificate of Origin) Dept of Foreign Trade Web-Based Application (Health Certificate) Separate ICT islands Dept of Livestock Development Many Paper Documents Paper Handling and/or Web-Based Application (Bill of Lading) Carriers or other logistics service providers Page 9 An integrated Trade Facilitation Strategy for Greece including Single Window , 19-20 July 2012, Athens, Greece Web-Based Application (Health Certificate) Dept of Fisheries Somnuk Keretho, PhD Thailand vision: from multiple windows to Single Window ~ 24 days *(World Bank 2006) Exporter And Importer National Single Window Carriers & LSP Impact to economy Single entry process Page 10 Data Harmonization ~350 data items and no travel needed To reduce time used on document procedures Government Agencies Less than 10 Days One day delay costs 1% reduction in export value (World Bank, 2006) Direct and indirect costs incurred in documentary process account for 1-15 % of finished goods (OECD, 2003) An integrated Trade Facilitation Strategy for Greece including Single Window , 19-20 July 2012, Athens, Greece Somnuk Keretho, PhD Thai Case Example A Conceptual Architecture of the “To-Be” National Single Window Now, technical interoperability standard (e.g. based on ebXML MS) is needed, and common definitions of data elements, and semantic data structures (common data models) among different documents required by different organizations are required also. National Single Window Paperless Customs Declaration and Clearance Customs Dept 36 Regulatory Agencies Web-Services (ebXML) Application (Certificate of Origin) Dept of Foreign Trade Exporter Goal - Single Window/e-Documents One time submission for each data element but multiple usage for different purposes on different ICT platforms Web-Services Applications (e.g. Bill of Lading, and other documents) Web-Services (ebXML) Application (Health Certificate) Dept of Livestock Development Web-Services (ebXML) Application (Health Certificate) Dept of Fisheries Carriers or other logistics service providers Page 11 An integrated Trade Facilitation Strategy for Greece including Single Window , 19-20 July 2012, Athens, Greece Somnuk Keretho, PhD Thailand SW Architecture (Regulatory SW) Governance Mechanism – policy decision, service charge regulation, service level agreement etc. Carrier VAS Custom Broker/ Freight Forwarder VAS Ship Agent, Airlines Agent VAS Value-Added Services for Single Window Entry and Business Process Management Bank and Insurance Other Business Parties 12 4 e-Document Exchange Hub for Cross-boarder Trade and Transport National Single Window (NSW) By Customs Department 7 3 Process Re-design & Data Harmonization VAS 1 Process Re-design & Data Harmonization Importer/ Exporter Other Logistics Service Providers Page Value-Added Service Providers VAS Gateway 5 VAS Gateway Private Sector &Transport Agencies VAS Gateway 2 6 7 36 Government and facilitating Agencies ebMS ebMS Customs Dept Dept. of Foreign Trade Dept. of Fisheries ebMS Dept. of Disease Control ebMS Port Authority Of Thailand ebMS Port/Airport ebMS ICT National Infrastructure and related IT Laws Other agencies responsible by Ministry of ICT An integrated Trade Facilitation Strategy for Greece including Single Window , 19-20 July 2012, Athens, Greece Somnuk Keretho, PhD Roles & Participants Electronic document Exchange Service Document exchange between government agencies (G2G) via Government Information Network (GIN) supported by MICT Data exchange between government and business sectors (G2B) via VAN/VAS providers Data exchange between business sectors (B2B) via VAN/VAS providers National and International Gateways Integrate / link VAN/VAS (import, export and logistics) National gateway for data exchange between Thailand and ASEAN Members National gateway for data exchange between Thailand and other countries Participants / Clients 40 government agencies (35 user agencies and 5 support agencies) 125,000 traders (importer, exporter, customs broker, freight forwarder, shipping lines, air lines, sea port, air port, logistics service providers, bank,…) Others (ASEAN Member and other countries….) Page 13 An integrated Trade Facilitation Strategy for Greece including Single Window , 19-20 July 2012, Athens, Greece Somnuk Keretho, PhD National Commitment National Logistics Committee chaired by the Prime Minister Minister of Finance, Minister of Industry, Ministry of Commerce, Ministry of Transport, NESDB (National Economic and Social Development Board), …. Executives from business sectors Thailand National Single Window is one of the National Agendas ASEAN Agreement to establish the ASEAN Single Window ASEAN – 6 (2008) ASEAN – 4 (2012) Leading Agency The Customs Department, Ministry of Finance Business/Financial Model of National Single Window Initial funding by the government (100%) supervised by the Customs No transaction fee for data exchange among government and trade Page 14 An integrated Trade Facilitation Strategy for Greece including Single Window , 19-20 July 2012, Athens, Greece Somnuk Keretho, PhD Interagency Collaborative Platform National Committees and Working Groups National Logistics Committee of Thailand National Sub-committee on Data Integration for Import, Export and Logistics Steering Committee on National Single Window Development Committee on Regulatory Framework and Quality Assurance of Thailand NSW Inter-Agency Technical Working Group for National Single Window Inter-Agency Legal Working Group Committees and Working Groups (within each agency) Business process analysis and reforms A Lot of Workshops, Group discussion and consultations to simplify and streamline business process among government and business sectors ASEAN Meetings and Working Bodies AEC Council, AEM, AFM, ASEAN Customs Director-General, …. ASEAN Single Window Steering Committee (ASW) Technical Working Group for ASW Legal & Regulatory Working Group for ASW, etc Page 15 An integrated Trade Facilitation Strategy for Greece including Single Window , 19-20 July 2012, Athens, Greece Somnuk Keretho, PhD Legal and Agreement Framework Electronic documents legally recognized under the National Electronic Transactions Act (April 2001) Enhance Departmental regulation for e-document exchange among government and business sectors Inter-Agency Legal Working Group enables relevant legal frameworks for paperless service among 35 government agencies MOU among 36 organizations were signed for electronic document adoption (including representatives from business sectors) Page 16 An integrated Trade Facilitation Strategy for Greece including Single Window , 19-20 July 2012, Athens, Greece Somnuk Keretho, PhD Evolution of Thailand National Single Window Page 17 An integrated Trade Facilitation Strategy for Greece including Single Window , 19-20 July 2012, Athens, Greece Somnuk Keretho, PhD A Single Submission for Electronic Customs Declaration Electronic Customs Declaration Submission with Digital Signature All transactions are electronically exchanged, e.g. Customs e-payment, risk analysis, reporting, … Referring to – ‘Thailand NSW” presentation by Mr. SINMAHAT Kiatjanon, Thai Customs Department - February 2010., Nepal. Page 18 An integrated Trade Facilitation Strategy for Greece including Single Window , 19-20 July 2012, Athens, Greece Somnuk Keretho, PhD Adoption of e-Document Exchange around the country taking times! Page 19 An integrated Trade Facilitation Strategy for Greece including Single Window , 19-20 July 2012, Athens, Greece Somnuk Keretho, PhD ”As-Is” Business Process Analysis for Exporting Jasmine Rice Thai Case Problems : - Duplicated Information & 3-5 physical visits to different locations - High Cost and Time for sending and receiving documents - Possible Data Inconsistency Page 20 An integrated Trade Facilitation Strategy for Greece including Single Window , 19-20 July 2012, Athens, Greece Somnuk Keretho, PhD ”To-Be” or new/faster/better Process with Data Harmonization for possible Single Data Entry Page 21 An integrated Trade Facilitation Strategy for Greece including Single Window , 19-20 July 2012, Athens, Greece Somnuk Keretho, PhD Thai Case A Regional Connectivity: ASEAN Single Window ASEAN Data Model uses information parameters from 13 documents for cross-border cargo clearance. Page 22 An integrated Trade Facilitation Strategy for Greece including Single Window , 19-20 July 2012, Athens, Greece Somnuk Keretho, PhD Cross-border Collaboration ASEAN Single Window (ASW) ASEAN Agreement for ASW signed by ASEAN Economic Ministers (9 December 2005) and ASEAN Protocol for ASW signed by ASEAN Finance Ministers(5 April 2006) ASW Pilot project Exchange of ECO for ASEAN and ASEAN Customs Declaration Document ASEAN engaged consulting firm to study the solution for the ASW pilot project Malaysia-Thailand B2B Cross Border Initiative Facilitation of Trade Route through the use of RFID Pilot project start 2010 (TNT & DHL, …) Live and Enhancement (2011) Thailand – Lao B2B Pilot Project Initiative (2010) Lao importers can reuse electronic export customs declaration receiving from exporter in Thailand Thailand – Taiwan G2G pilot project Initiative ECO (electronic certificate of origin) pilot project for trade facilitation 1st Joint Meeting in Taipei (December 2010) Page 23 An integrated Trade Facilitation Strategy for Greece including Single Window , 19-20 July 2012, Athens, Greece Somnuk Keretho, PhD Customs Clearance Impacts Ref: Sinmahat K. “NSW in Thailand”, a presentation in Nepal, Feb 2011. Page 24 An integrated Trade Facilitation Strategy for Greece including Single Window , 19-20 July 2012, Athens, Greece Somnuk Keretho, PhD National Trade Improvement Page 25 An integrated Trade Facilitation Strategy for Greece including Single Window , 19-20 July 2012, Athens, Greece Somnuk Keretho, PhD Recommendations for Greece Development of Electronic Customs Declaration Submission with Digital Signature (or other appropriate means for online identification) with other supporting functions, e.g. – Risk Assessment – Customs Duty e-Payment (connecting with Banks) – Physical examination reduction – Online statistics reporting – VAT refund operational improvement, etc.. Development of paperless import/export-related permits and certificates issuing and e-document exchange for speeding up and more effective Customs control with agriculture products and other specialized goods. Page 26 An integrated Trade Facilitation Strategy for Greece including Single Window , 19-20 July 2012, Athens, Greece Somnuk Keretho, PhD Thank you. “Dear friend, I pray that you may enjoy good health and that all may go well with you, even as your soul is getting along well.” 3 John 2 [The Holy Bible]. Somnuk Keretho, PhD UNNExT Advisory Committee Director, Institute for IT Innovation ...... Kasetsart University, Bangkok sk@ku-inova.org