Introduction to The Single Window in Korea Soyoung

Introduction to The Single Window in Korea Soyoung Yang 2012

Contents I. Introduction II. Implementation Phase III. Single Window System Composition IV. Performance Evaluation V. Major Challenges VI. Conclusion

Background I. Introduction Trade Facilitation Solution Achievements Automated clearance system Elimination of customs flow bottlenecks Lower logistics costs Could not solve Delays in obtaining license/approval from related agencies (bottleneck in business process not related to customs) Solution Single Window System Achievements Info. exchange between government agencies Improve movement of goods across borders Further lower logistics costs KCS’ Single Window Global Best Practice Beneficial not only to business but also to the government

Development process II. Implementation Phase Nov. 2003 Phase I Jul. 2008 Phase III Phase IV Improvement Expansion Prototype BPR/ISP 8 months 0. 1 million USD 2. 4 million USD 12 months 1. 3 million USD 7 months 1. 6 million USD

Korean Single Window Model III. Single Window System Composition PERSPECTIVE Single Authority Automated Information Transaction System Integrated Single Automated System Interfaced Single Automated System Single Window Lite Trade Facilitation Single Window B 2 G, B 2 B Information Processing (UN, 2005) Coverage (Siva, 2011) KCS Single Window User (KCS, 2003) Consolidation of Conveyance Reports Carriers Linkage of licenses/approvals to declarations Traders

Consolidation of Conveyance Reports III. Single Window System Composition Before Carry-in/out report Common elements VAN Maritime Authority VAN Customs Unique elements Shipping Agency Manifest Common elements Unique elements

Consolidation of Conveyance Reports III. Single Window System Composition After Carry-in/out report Common elements Integrated e-doc Common elements Manifest Unique elements Shipping Agency Carry in/out Unique elements VAN Maritime Authority VAN Customs Single Window Unique elements Manifest Common elements Unique elements

Linkage of Licenses/approvals to declarations III. Single Window System Composition Before License/permit Common elements Legacy System (OGA) Unique elements Declarer Customs Common elements Unique elements E-Clearance System (Customs)

Linkage of Licenses/approvals to declarations III. Single Window System Composition After License/permit Common elements Integrated e-doc Common elements License/permit Unique elements Declarer Customs Unique elements Legacy System (OGA) Single Window Unique elements Customs Common elements Unique elements E-Clearance System (Customs)

Major Outputs and Outcomes IV. Performance Evaluation Use Rate and Participating Agencies Number of Agencies Connected to SW Declarations requiring license/approvals Use rate (%) 8 11 11 15 17 31

Major Outputs and Outcomes IV. Performance Evaluation Process Simplification Before Legacy System (OGA) Receive Review Send 1. Apply for Licenses/approvals 2. Receive application & review 3. Issue Licenses/approvals 4. Customs declaration and licenses/approvals 5. Receive declaration & review 6. Notice of clearance Declarer Send Receive E-Clearance System (Customs) Receive Review Send Major process : 6 Interactions : 10

Major Outputs and Outcomes IV. Performance Evaluation Process Simplification After Declarer Send Receive Single Window Legacy System (OGA) Receive Review Send 1. Apply for Licenses/approvals and customs declaration 2. Receive application & review 3. Issue Licenses/approvals 4. Receive declaration & Review 5. Notice of clearance E-Clearance System (Customs) Receive Review Send Major process : 5 Interactions : 9 Reduced by 1 each

Major Outputs and Outcomes IV. Performance Evaluation Time Saving 2 – 3 days 1 day 1. 5 hrs Before License Issuing Transferring license to customs 2 – 3 days 1. 5 hrs After License Issuing Approving declaration Cost Saving 2. 1 billion USD/Year Logistics Costs Document preparation Costs Transaction fee Approving declaration

Major Outputs and Outcomes IV. Performance Evaluation Risk Management and integrity Automated Single Window System Eliminate false clearing of unqualified declarations D 1 L OGA D 1 D 2 License Info. Sharing SW D 2 L Trader Customs Online relationship tackles corruption Online Low probability of corruption Customs Trader No physical contact

Cost-Benefit Analysis Million USD IV. Performance Evaluation

Low Use Rate V. Major Challenges I. Lack of promotion of the Single Window System - Intensive training program for Stakeholders and Customs brokers II. Low number of participating agencies - Reduce friction through mutual cooperation and understanding Of the 45 agencies 31 (connected to the SW), remaining 14* (not connected to the SW) * Local government and local police agencies not specialized in trade-related matters III. Various agencies did not have an automated license system - Creation of an ASP-type* license/approval system inside the Single Window system Of the 31 agencies connected: 10 agencies (use own system), 21 agencies (use ASP) * ASP: Application Service Provider

Coordination among related agencies V. Major Challenges I. Seeking cooperation from related agencies - Respect and accept the legacy systems already in existence Not rush in increasing the number of participating agencies Develop the single window as an independent system Allow users to convince agencies to participate in the single window system II. Data Harmonization through mutual coordination - Creation of a Task Force Team to coordinate agencies business process and data format More than 16 rounds of working-level meetings Data Harmonization in 10 declaration forms Num. of laws Num. of documents Total elements Common elements Unique elements Elimination 7 10 542 185 (34%) 102 (19%) 255 (47%)

Success factors Political VI. Conclusion Administrative Technical BPR/ISP Step-by-Step Approach TFT with related agencies Strong Political Will Active support from private sector Customer oriented services Customs automation Phased implementation Low maintenance expenses

Thank You Soyoung Yang Deputy Director Korea Customs Service yangsy@customs. go. kr