Thailand SingleWindow eLogistics and Regional Integration The 3

Thailand Single-Window e-Logistics and Regional Integration The 3 rd Executive Forum on Trade Facilitation Paperless Trade in International Supply Chains: Enhancing Efficiency and Security 20 -21 June 2005, Geneva Somnuk Keretho, Ph. D. Advisor, Thailand e-Logistics Initiative Ministry of Information and Communication Technology Director, Institute for Innovative Information Technology Kasetsart University 1

Outline n n n Trade Facilitation - Logistics Efficiency Thailand Logistics Master Plan Single Window e-Logistics Roadmap & Pilot Projects ASEAN Single Window Initiative & GMS Cross-Border Agreement Conclusions 2

Trade Facilitation – Efficiency in Logistics n In 2003, the National Competitiveness Committee* initiated a task force to develop an integrated roadmap for national logistics competitiveness. Movement of Goods (and its reversed logistics) Producers (Raw Materials) Manufacturers Exporters Distributors Importers Consumers Flows of Documents & Payment *A high-level public-private strategic committee, chaired by the Prime Minister and comprised of economics-related Ministers and key private leaders (e. g. Thai Chambers of Commerce, Bankers’ Association, Industry Federation etc. ) 3

Trade Facilitation as a Competitiveness of A Nation n n Logistics – Efficiency flow of Goods Logistics Cost in Thailand is quite high. Current Logistics Cost/GDP Thailand Japan USA EU 19% 11% 10% Inefficiency in Logistics Management is Our Opportunity for Improvement 7% Cost Reduction Opportunity in Logistics e. g. 5% of GDP ~ 7. 5 Billion USD possible cost reduction 4

Thailand Logistics Master Plan 2005 -2009 Vision World-Class Logistics Hub for Indochina Objectives Cost Efficiency Reliability & Security Responsiveness Six Strategic Agendas Improving Logistics Infrastructure Linking Information and Database Systems Building Capacity for Better Logistics Management Strengthening Logistics Service Providers Cooperating for Regional Economic Integration Re-designing Law, Regulation & Institutional Framework Single-Window e-Logistics Environment 5

A Single Window and Integrated Environment to create a data network and infrastructure to link all logistics players via a single-window entry Fishery Food & Drug Agriculture Others Trading Window Single Window Facilities Port Window Customs Window Terminal/Depot Operator Port Authorities Trading Company Bank Insurers Licensing Agency Window Broker Importer Exporter 6

Key Components of Single Window Concepts Integrated electronic single point of entry Trader Internet Licensing Single Window Facilities Licensing Agency Window Food & Drug Agriculture Fishery Others Customs Clearance Release And Clearance Customs Enforcement Customs Window Port Window 7

Thailand Single-Window Paperless Trade for Efficiency and Security in Trade 1 st Cycle: Customs Clearance + e-Certificates 2 nd Cycle: Transportation & Financial Settlement 3 rd Cycle: Cross-border Paperless Trading Port Authority Bank Airline Customs Internet GDX Trading Company Web-based Application Form GDX: Government Data Exchange Cross Border PT (GMS, ASEAN Single Window, APEC Pathfinder Initiatives) Ministry of Agriculture Ministry of Commerce Insurance Shipline Sea Port 8

Roadmap 2007 Increment 2 2005 -2006 Increment 1 E-Logistics Infrastructure Pilot Projects Implementing Single Window e-Licensing and e. Certificate systems for exporting fruits and automobiles Extending to cover more products, e. g. textiles, poultry, shrimp, and other commodities, Extending to cover import, export and transport activities. 2008 Increment 3 Cross-border Electronic Transaction Supporting e-document exchange for ASEAN single window and GMS crossborder single inspection initiative Implementing cargo community information exchange services and e-Port Windows Establishing information linkage with e-Customs Window Providing one-stop information services, and customers call services on trade, transport, transit and customs procedures Standardize Data Set (SDS) and Re-design procedures Project & Change Management Auditing/Quality Assurance and System Security Hardening 9

A Pilot Project – Exporting Fruits n As Is: 7 -10 days to obtain five related certificates, declarations and transportation documents (4 government agencies, 5 related logistics providers) n to export durians to China To be: One-Stop e-Services for Exporting Fruits by Dept of Export Promotion, MOC and other 8 departments q Centralized e-Forms & Internet Licensing with Digital Signature and Digital Watermarking in 15 minutes n n Electronic Sanitary-Phytosanitary Certificates (e-SPS) Electronic Certificate of Origins (e-CO) Export Declaration Ship Carriers & Port Operators Document Exchange MOC MOA MOF MICT 10

A Pilot Project – Exporting Cars n Single-Window for Exporting Cars q q q Abandoning application forms Issuing Internet Licensing/Certificates Electronic Documents Interchange among government agencies to reduce steps and costs of exporters. Ministry of ICT Single Window Document e-Tracking One-Day Clearance Scheme Customs Dept/MOF Dept of Land Transportation/MOT Dept of Foreign Trade/MOC 11

Architecture & Building Blocks Carriers/Agents Insurers Secure Information Portal Cargo Processing G 2 C Web Content Management e-Tracking Single Sign On Private Sectors G 2 B Government Agencies G 2 G e-Release Single Window Entry e-Licensing e-CO Account Management Account Profile Risk Analysis G 2 G Private Sectors (Trade Community) G 2 B eb. XML-based Registry and Repository PKI Infrastructure Forwarders Consolidators Message Base Port authorities Trading company Selectivity Management Web Base Banks Exporter Reliable and Secured Data and Service Exchange using eb. MX specifications Persons/ Organizes Government Agencies Integrated Customs and Cargo Management Customs Importer Trade Community Customs Broker Terminal/Depot Operator 12

Recommended Key Performance Indicators n To improve time and cost factors q Phase 1: n n q Phase 2: n n n Reduce Permit Processing time and cost by % Reduce declaration by % Reduce the process at the port by % Reduce overall end-to-end process by % Increase in volume of transactions by % Increase in the number of key constituents sign-on Increase in the number of e-document types 13

Cost/Benefits Analysis n Investment: 31 million USD for 3 years (~7 million USD is secured for 2006) n Targeted Benefits: not less than. 5% of Import/Export Volume q Costs saving –> 0. 7 billion USD annually 14

Institutional Framework Prime Minister The Cabinet National Competitiveness Committee (Ministers + CEO’s) National Economic and Social Development Board National Logistics Subcommittee Single Window e-Logistics Subcommittee Thai Federation on Logistics Academia & Consultants PMO: Project Management Office Ministry of ICT Incorporation with MOC, MOF, MOT, MOA, MOI and TFL Subcommittees and Working Groups for special tasks 15

ASEAN Single Window • Single Submission, • Single Decision Making, • Single Data Processing To expedite and simplify information flow between government and trade and bring meaningful gain to all parties involved in international trade. To establish the viable, simplified, standardized and integrated environment for cargo clearance in line with international best practices To reduce time and resources needed for cargo clearance 16

Possible ASEAN Single Window Conceptual Model A Standardized Data Set based on WCO Data Model, UNTDED and UNe. DOCs are considered. Thailand SW Viet Nam SW Singapore SW Brunei SW Philippines SW Internet Facilities Cambodia SW Myanmar SW Indonesia SW Malaysia SW Lao SW SW = Single Window Provider 17

OSS – One-Stop Services Offices for single stop inspection at the border crossing (physical locations with all authorized agencies) and the GMS cross-border Agreement GMS = Greater Mekong Sub-region will be enhanced by Single-Window ICT-enabled Environment 18

Conclusions – Key Issues n n n n Trade Facilitation begins at home (behind borders), but enhanced by regional integration (between borders) High-level Political Commitment and Resources Inter-agency & Public-Private Involvement Change Management Business/Investment Models Clear Roadmap is needed. Standardized Data Set (SDS) - a pre-requisite for establishing Single Window Paperless Environment Implementation Challenges, e. g. common XML schemas are urgently needed. 19

Thank you Somnuk Keretho, Ph. D. Advisor, Thailand e-Logistics Initiative Ministry of Information and Communication Technology Director, Institute for Innovative IT Kasetsart University Thailand) sk@ku. ac. th 20