Project proposal of International Trade Integrated Service ITIS

Project proposal of International Trade Integrated Service (ITIS) for MSMEs Dapeng (Max) Liu, max. ldp@alibaba-inc. com Kepeng Li, kepeng. lkp@alibaba-inc. com October, 2017

Outline What is ITIS？ ITIS in SSP(Single Window Submission Portal) Project Proposal of ITIS project Summary and Discussions

PART 1: What is ITIS (International Trade Integrated Service)?

` Background: The traditional international trade busines s SUPPLIER Country A dealer 1 dealer 3 dealer 2 Retailers Size Circulation Cost Fun d Transportation Customs Clearance Communication costs Language Culture Law Trust cost Credit BUYER Country B Distance Quality After-sales Traditional traders is a combination of trade and service.

` The bottleneck of Micro small and medium enterprises in Global trade facilitation CROSS-BORDER E-COMMENCE PROVIDEs MORE MSMES THE OPPORTUNITY TO PARTICIPATE IN INTERNATIONAL TRADE The bottleneck : circulation & trust costs Size Circulation Cost Fund Transportation Customs Clearance Communication costs Law Language Culture Trust costs Credit Quality After-sales Distance

` Cross-border E-commence ecosystem Multinational Retail & Cross-border Information Cross-border trade platform MSEMs Supplier Buyer Foreign exchange Customs Inspection Insurance Taxation Storage Transportation Banking International Trade Integrated service （ITIS)

` What is ITIS（International Trade Integrated Service） can assemble the service providers and service partners to provide MSMEs professional international trade services. Service providers and service partners Professional international trade services • • • • Customs broker Freight forwarding Logistics service providers Warehouses Export agencies Banks Insurance companies Law firms Etc. Clearance Foreign exchange settlement Logistics Insurance Financing Legal advice Etc.

` What is ITIS Vision of ITIS Some principles of ITIS ² Help MSMEs to participate into the crossborder trade and e-commerce easily. private-sector driven service Worldwide Implementation Inclusive to all MSMEs Service of both traditional commerce and e-commerce cross-border trade Objective of ITIS ² Based on the Internet and data to establish the new service mode for MSMEs and improve the competitiveness of cross-border trade of MSMEs.

` ITIS logical capability chart ITIS Concept Customs Inspect Foreign Exchange Tax Other gov dept A：Extension of single window B：Single Submission Portal C：Commercial services u Provide standard information of MSMEs to Single Window u An extension of both National and Other country‘s Single Window u Applied in the country without Single Window u Act as privatedriven Single Window u Provide services for MSMEs u Cooperation with Service providers and service partners Government Others PCS, CCS。。。 International ecommerce platform National Single Windows from other countries or regions B A B International Trade Integrated Service (ITIS) platform SMEs C Customs Broker Freight Forwarding A This part function of ITIS acts as the extension of single window Warehouse Banks Financial Other cross-border service providers A+ B+ C= This part function of ITIS acts as Private-driven Single Window The whole positioning of the concept ITIS is : ”enabling MSMEs to participate into the cross-border trade and ecommerce easily”

PART 2: ITIS (International Trade Integrated Service ) in SSP（Single Window Submission） project

` SSP project purpose and scope Ø The private sector are launching facilitation platforms now and traders – especially micro and small-medium enterprises – are able to immediately reap the benefits. Ø These private-sector driven initiatives correspond to what the UN/CEFACT Terminology paper calls a “Single Submission Portal. ” Ø The SSP project proposes to provide recommendations and guidance on such tradedriven initiatives, including – e-Commerce platforms – International Trade Integrated Service (ITIS) Platforms – Port Community Systems – Cargo Community Systems – Data Pipelines – Interorganizational Operating Information Systems

` ITIS in SSP project –Function B Propose how such it can provide the same or similar trade facilitation mechanisms as a National Single Window. Customs Inspect Foreign Exchange Tax Other gov dept ITIS logical capability chart A：Extension of single window B：Single Submission Portal C：Commercial services u Provide standard information of MSMEs to Single Window u An extension of both National and Other country‘s Single Window u Applied in the country without Single Window u Act as privatedriven Single Window u Provide services for MSMEs u Cooperation with Service providers and service partners Government Others PCS, CCS。。。 International ecommerce platform National Single Windows from other countries or regions B A B International Trade Integrated Service (ITIS) platform SMEs C Customs Broker Freight Forwarding A This part function of ITIS acts as the extension of single window Warehouse Banks Financial Other cross-border service providers A+ B+ C= This part function of ITIS acts as Private-driven Single Window The whole positioning of the concept ITIS is : ”enabling MSMEs to participate into the cross-border trade and ecommerce easily”

PART 3: Project Proposal of ITIS (International Trade Integrated Service )

` Project Purpose ² MSMEs barrier to international trade • Lack of access to trade finance • Lack of access to quality logistics services • Limited of access to Single Window and e. Business solutions • Lack of professional skills • Not qualified as AEOs (Authorized Economic Operators) ² Recommendation and guidelines of ITIS are needed to encourage the development of ITIS, and then to promote trade facilitation of MSMEs.

` Project Scope ² Develop generic recommendation and guidelines to support the ITIS for MSME. • The potential stakeholders • The services such systems can provide (Functions A+B+C) • Potential management responsibilities • Transportation and logistical processes, • Potential business and ownership models • Related international standards and translation between different standards to allow submission in multiple formats (eg. EDIFACT, XML, WCO Data Model, IATA Cargo XML etc.

` Project Scope - Function A of ITIS：Extension of single window Government Agency Customs Clearance Inspection ITIS platform serves as single entry point for both MSMEs and Single Window. Service provider Administration of Foreign exchanging N SUPPLIER Others Single window ITIS ② ITIS ① N Taxation DEAL ITIS ③ N BUYER N Service provider

` Project Scope – Function B of ITIS： Single Submission Portal ² Propose how such it can provide the same or similar trade facilitation mechanisms as a National Single Window, will introduced in the SSP project. ` Project Scope – Function C of ITIS： Commercial Services ² Provide services for MSMEs ² Cooperation with Service providers and service partners International ecommerce platform Others PCS, CCS， … International Trade Integrated Service (ITIS) platform SMEs C Customs Broker Freight Forwarding Warehouse Banks Financial Other cross-border service providers

` Project Deliverables • Recommendation on ITIS for MSME • Guidelines on ITIS for MSME • Online files for Case Study Repository 4. Project Deliverables

` International guidance and standards ² Work in close collaboration with UN/CEFACT Single Window domain, WCO, UNCTAD, in order to ensure harmonization of terms, concepts, standards and recommended practices. ² In the future, this project will need to build a system, and coordinate with existing recommendation and standards. ² ITIS will have the potential data harmonization among different parties – E. g. , Single Window, PCS, e-commence platform, Data Pipeline Carrier in Transportation and Logistics Domain etc.

PART 4: Summary and discussions

` Summary and discussions ² ITIS is not only a form of SSP(Single Submission Proposal) ² ITIS concept A (Extension of Single Window) + B (SSP) + C (Commercial services for MSMEs) ² Kick-off a new ITIS project

Thank you!