• Han, Hak Hee • CHAIR • WORKING GROUP OF PAA • 2004. 6
About APEC GDP and Trade Volume of 21 APEC members
APEC paperless trade initiative v APEC Blueprint for Action on e-Commerce 2005/2010 Goal In 1998, Ministers agreed that “member economies should endeavour to reduce or eliminate the requirement for paper documents needed for customs and other cross-border trade administration and other documents and messages relevant to international sea, air and land transport i. e. "Paperless Trading" (for trade in goods), where possible, by 2005 for developed and 2010 for developing economies, or as soon as possible thereafter. ” 2015/2020 (Paperless Trade Symposium - Chinese Taipei) Establish a comprehensive paperless trading environment for APEC region
Individual Action Plan (IAP) v Paperless Trading IAP Guideline of 15 member economies on voluntary basis to reduce or eliminate paper documents related to international trade v Suggested Actions and Measures for Trade Facilitation Action Plan in the area of Paperless Trading (Paperless Trade Symposium - Chinese Taipei) Based on Paperless Trading IAPs, actions and measures for trade facilitation were raised from general policy and trade administration to financial settlement, global collaboration
Current Paperless Trade Material Analysis KTNET Services ITEM Export/Import Regulation Marketing Contract L/C arrival Export permit Production/ Manifest Purchase Goods B/L Issue - Manifest - Cargo Management Purchase Law Material - Cargo Insurance - Export Insurance - Shipping Request & PAA in the future Import Material Customs - Export/Import - Money Transfer - Negotiation - Notice of Debit and Payment - Bill of exchange - Financing Import Permit Production of Goods Arrival Insurance / Logistics Open L/C Payment Inv, P/L Shipping Documents Arrival Bonded Warehouse Export Clearance Shipping Negotiation Duty Back Administration Import Clearance Administration Finance PAA Declaration - Application for Export/Import - Declaration Acceptance - Duty Back - Bonded Area Management - Cargo Release Foreign Exchange /Administration - L/C Opening & Advice - Local L/C Opening & Advice - Letter of Guaranty & Delivery Order - Export Permit (VISA) - Shipping Document Arrival Notice - Certificate of Origin - Import Permit Marketing - Overseas Market Survey - Target Market - Buyer Finding - Marketing & Offer - Contract Terms Information Collection - Trade Process - Business planning - Item Analysis - Various Trade information - Export/Import Regulation - Inquiries
About KTNET v Key Initiatives in Korea Act on Promotion of Trade Business Automation (Dec. 1991) by Ministry of Commerce Industry and Energy Scope of the Law : Trade Administration, Foreign Exchange Establishment of KTNET is designated as Customs Network Provider by Korea Customs Services (Nov. 1992) Scope of Customs Automation : Customs Clearance, Cargo Management, Duty draw back
Network of KTNET Quarantine station Traders Customs broker Domestic banks Foreign banks Financial Network Clearance Network Korea Customs U. S customs Trade administration Insurance company Insurance Network KTNET Global Networks Shipping company forwarder warehouse ASEM PAA Air Lines
Services of KTNET v EDI services Trade Administration / Foreign Exchange Export and Import License, L/C opening and arrival notice, Local L/C, C/I, C/O, L/G etc. . Customs Export & Import permit, Declaration of Goods, Duty draw back, Logistics Declaration of Arrival & Departure, Transportation of Shipments v DB services KCIS (Korea Customs Information System), MFCS (Manifest Consolidation System), Cargo Tracking etc. Currently, KTNET deals with 12 million B 2 G, B 2 B documents transactions per month
About PAA v Infrastructure for Paperless Trade - Pan Asian e-commerce Alliance; PAA Established in July 2000 by Tradelink, Trade-Van and Crimson. Logic Goal: The Pan-Asian E-Commerce Alliance is the first regional e-Commerce alliance in Asia that aims to promote and provide secure, trusted, reliable and valueadding IT infrastructure and facilities for efficient global trade and logistics. To-date: 8 member economies (Korea, China, Hong Kong, Macau, Chinese Taipei, Japan, Singapore, Malaysia)
PAA: From Domestic to Global Network Domestic e-Trade Global e-Trade Chinese Taipei e-MP Trader Customs China Carrier Manufacturer Korea Japan 260, 000 Customers Customs Macau Broker KTNET Trucker Malaysia Hong Kong Singapore Warehouse Bank Forwarder Authority Insurance
PAA Infrastructure v What we have done; Secure Cross Border Transaction Service • As Is: Shipping Documents, Pre. Declaration • To Be: e-C/O, e-B/L, Visibility Service, etc. . • Interconnection Standard (Interoperability) • e-Document Standard • Security (PKI) Technical Standard • Background for legal issues • Multilateral Agreement PAA Club Agreement
Case Study v HYUNDAI and KIA Motors - Vaatz. com Domestic Logistics Completed Domestic EDI Bank EAI/B 2 Bi HMC KMC Forwarder Customs Brokerage Foreign H/KMC Foreign Factories INTERNET WEB Subsidiaries EDI Service Quotation Document Ordering L/C Shipping Warehouse Customs Inventory Japan and Asia Common e-Trade Platform Supplier 1 Paperless Trade Supplier 2 PAA Paperless Trade EU(ASEM Members) Supplier n
Issues driven by PAA Activities Public awareness of the economic benefits Promotion of paperless trade in national level Harmonization of laws and standards in APEC Encourages economies to adopt laws for e-doc. Participation and utilization of global standard Efficiency of national gateway for paperless trade Digital divide among member economies Recommended to establishment of a single window system for the lodgment processing of trade documents
Roles & Cooperation in APEC v Roles and Cooperation of Public and Private sector in APEC Private Key Players Public KTNET, Trade-Van, Tradelink, Each Economies’ Government etc. . Function Development of Infrastructure Change of Laws and Regulations Role Provide Paperless Trade Services Support for the Facilitation of Paperless Trade Cooperation Collaboration of Service Providers e. g. PAA Cooperation of Economies e. g. Korea-Japan Paperless Trade Public and Private Sector Joint Meeting
PAA - Strengthening the Pathfinders v Employ of PAA as Pathfinder PAA is the most dynamic player for Paperless Trade in APEC region PAA is covering B 2 B and B 2 G cross border edocument exchange, and will go further for financial fulfillment – from the beginning to the end of the trade process PAA serves as a best model for broader application to the Seamless Paperless Trade in APEC
PPP Dialogue* in APEC v Facilitation of Dialogue Between G 2 G, B 2 B and B 2 G Trade Process is the one of the most Complicated communication process Traders, Carriers, Banks, Insurers, Customs and other trade related agencies - 27 to 30 different parties with more than 40 documents of 200 data elements are involved in average international trade (UN Conference on Trade and Development) Need to strengthen communications between G 2 G, B 2 B and B 2 G to enhance coordination of related parties for Paperless Trade Infrastructure * The 1 st APEC Public and Private Partnership Dialogue Meeting for Promoting Paperless Trading(2005, Korea)
The Goal of APEC Paperless Trading Seamless Paperless Trade Environment – Driving Engine for Accelerating Regional Trade Review paperless trade environment to facilitate regional trade Identify possible Public & Private Collaboration on paperless trade G G B 2 G Collaboration Under APEC G G 2 G G Collaboration G G Information sharing of each economies policy, experiences, best practices from domestic project for paperless trade promotion B B B 2 B B Collaboration B B B Develop new services and business models by the collaboration of service providers
Thank You! • Han, Hak Hee • HHHAN@KTNET. COM • 82 -2 -6000 -2083