Single Window in Korea The Present and the

Single Window in Korea - The Present and the Future Ki Hyun OH UNECE UN/CEFACT Acting Vice President of KTNET

Contents Paperless Trade in Korea The Korean Single Window, KTNET The Future of Single Window Global Interoperability between S/W’s

Paperless Trade in Korea

International trade in Korea Rapid growth of trade volume Tons of trade documents 300 250 Export 200 150 CAGR 18% 100 50 0 1971 1974 1977 1980 1983 1986 1989 1992 1995 1998 $545 billion in 2005 2001 2005 More than 620 boxes * CAGR: Compound Annual Growth Rate Bottleneck in trade process 19 -28 days for customs clearance Copyright© 2006 KTNET All Right Reserved.

Problems of paper based trade Enterprises § High transaction cost § Long lead time § Incorrect processing Government § Complex regulation § Lack of transparency § Difficult monitoring Decrease National Competitiveness Copyright© 2006 KTNET All Right Reserved.

Government has driven S/W for paperless trade Trade Business Automation - MOCIE Established KTNET in December 1991 by the initiative from MOCIE to simplify the trading procedures and to realize the rapid distribution of trade information * MOCIE : Ministry of Commerce, Industry and Energy Customs Process Automation - KCS Designated KTNET as ‘Korea Customs Process Automation Agency’ in November 1992. to automate customs clearance procedures by computers * KCS : Korea Customs Service Copyright© 2006 KTNET All Right Reserved.

Benefits from paperless trade Reduced processing time Saved trade related costs Fee 2+day Operation HR Savings about $2. 6 billion in 2004 1+day 4 hours 2 min Export 2. 5 hours Import Logistics 10 min Tax Source: KCS, 2002 Storage Before After Source: Hyundai Research Institute, 2006 Copyright© 2006 KTNET All Right Reserved.

The Korean Single Window, KTNET

KTNET Profile 1991 Invested by KITA 300+ documents Paperless trade services 12 million transactions per month 100% customs automation Customers 38, 217 companies KTNET is evaluated as the world’s first-class paperless trade service provider. “Korea was ranked as one of the top three economies with paperless trade environment”, Assessment Report On Paperless Trading of APEC Economies 2005. * KITA: Korea International Trade Association Copyright© 2006 KTNET All Right Reserved.

KTNET, the Single Window Trade Firm Manifest Data Forwarder report agent Other European Countries U. K. Shipping Line Germany Chinese Taipei ASEAL Bank France HK Japan China Singapore PAA Korea Customs Service KTNET Macau Thailand Customs Broker Malaysia Chinese Taipei SCM Hub China Bonded Transportation Bonded Warehouse Inspection Company Airline Copyright© 2006 KTNET All Right Reserved.

KTNET Business Area KTNET provides 4 main businesses B 2 B & B 2 G e-Document transaction via Van or Internet Any service required for document life cycle management e-Document Exchanges Electronic Document Authority Certificate Authority Global Business National Certification Agency Ensuring documents safety Alliance of Single Window (PAA & ASEAL) e-Trade project with Overseas Government (Kazakhstan, Azerbaijan, Mongol) Copyright© 2006 KTNET All Right Reserved.

The Future of Single Window

Development path of S/W Global Service & -trade Platform Expansion & Internet Establishment 1998 ~ 2003 1990 ~ 1997 • Commerce & Trade Finance • e-Logistics • Internet-Based Service • Initiate Global Service such as PAA & ASEM • Foundation of public e-Trade Platform based on EDI • e-Customs Service - EDI Service for Export/ Import Declaration - Duty Drawback U 2004 ~ • Expansion of Global Service • Overseas e-Government PRJ - Kazakhstan/Mongolia/ Azerbaijan • Establishment of U-Trade Platform • Electronic Document Authority 3 rd Stage 2 nd Stage 1 st Stage Copyright© 2006 KTNET All Right Reserved.

U-Trade Platform The Future Advanced Single Window, U-Trade Platform A system, enabling traders to process e-documents related to exports and imports via Single Gateway based on the Ubiquitous ICT Korea’s U-Trade Platform Project Goal Project Period Project Cost Leading Agencies To upgrade the present paperless trade system to cover Korea’s growing trade volume with the latest IT technology ※ Trade volume in 2005 : USD 545 billion 2004 ~ 2007 About 30 million (USD) Ministry of Commerce, Industry and Energy (MOCIE) Korea Customs Service (KCS) Korea International Trade Association (KITA) Copyright© 2006 KTNET All Right Reserved.

Vision of the Single Window “Seamless Paperless Trade” U-Trade Platform Administrative (B 2 G) Documents Public Authority issued documents (ex: Certificate of Origin) Validation & Acceptance of e-Doc by Customs and OGA Private (B 2 B) Documents Invoice, Packing List, Delivery Schedule, Delivery just in time, Purchase Order, Payment Notice, Shipping Order, and other private docs. Copyright© 2006 KTNET All Right Reserved.

Global Interoperability between S/W’s

Alliance of S/W’s Globalization has increased Korean companies’ overseas activities. more demands for networking with overseas factories, branches and business partners. KTNET has initiated and led global alliance of S/W’s such as PAA and ASEAL. PAA (Pan-Asian e. Commerce Alliance) ASEAL (Asia-Europe Alliance) U. K China Macau Hong. Kong Korea Japan Chinese Thailand Singapore Taipei Malaysia Germany France Chinese Taipei Copyright© 2006 KTNET All Right Reserved.

e-Customs with overseas Korea’s paperless trade infrastructure has been benchmarked by many foreign Government agencies and companies ÆBased on professional experience, KTNET actively participating in foreign e-Government projects as follows Kazakhstan's "Customs Service Modernization BPR/ISP Project" ÆSharing the experience of Korean Customs System and its operation know-how with Kazakhstan Customs BPR/ISP Consulting Final Report on 10 th March, 2006 Azerbaijan's "Customs Modernization F/S Consulting Project" ÆF/S Consulting Project Kick-Off Meeting on 4 th April, 2006 Mongolia's "Customs Modernization F/S Consulting Project" ÆF/S Consulting Project Kick-Off Meeting on 21 st April, 2006 Copyright© 2006 KTNET All Right Reserved.

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