Single Window Trade Facilitation Reducing Trade

Single Window = Trade Facilitation = Reducing Trade Cost = Increasing Govt Revenue Regional Training Workshop on Trade Facilitation, Infrastructure & Trade Costs in ESCWA Region 8 – 9 April 2013, Dubai Jonathan Koh Director Trade Facilitation Centre of Excellence Crimson. Logic Pte. Ltd. Copyright 2011 Private & Confidential 1

Introduction Crimson. Logic is a trusted partner to governments around the world. • Design and run innovative and sustainable services for governments to serve their citizens more effectively and seamlessly. • Work closely with our customers to enhance their e-services continually, to drive adoption and usage of these e-services. Shareholders International Enterprise Singapore (an statutory board of Ministry of Trade & Industry) Civil Aviation Authority of Singapore PSA Corporation Singapore Telecoms Copyright 2010 Private & Confidential Copyright 2011 Private & Confidential 2 2

Crimson. Logic Trade Facilitation Platforms Port Community System Single Electronic Window System Free Zone Management System Customs Management System Strong Domain based software components Strong Infrastructure and Security Management Policies for reliable service delivery Copyright 2011 Private & Confidential 3

Crimson. Logic’s International Track Record Copyright 2011 Private & Confidential 4

What is Trade Facilitation? Copyright 2011 Private & Confidential 5

Trade Development Strategy Trade Facilitation Infrastructure Development Trade Promotion Trade Relations Management Trade Facilitation should be part of an overall trade development strategy whose purpose is to develop and expand sustainable trade flows to support the country’s economic development. Copyright 2011 Private & Confidential 6

Trade Facilitation WTO Definition - The simplification and harmonisation of international trade procedures UN/CEFACT Definition - The simplification, standardisation and harmonisation of procedures and associated information flows required to move goods from seller to buyer and to make payment” Principles of Trade Facilitation Simplification is the process of eliminating all unnecessary elements and duplications in formalities, process and procedures Harmonisation is the alignment of national formalities, procedures, operations and documents with international conventions, standards and practices Standardisation is the process of developing internationally agreed format for practices and procedures, documents and information. Copyright 2011 Private & Confidential 7

What is Trade Facilitation? Government Regulations Simplify Standardize Procedure Secure Documentation Industry Movement of Goods Compliance Transportation Transparent Copyright 2011 Private & Confidential 8

Trade Facilitation = reducing the Speed bumps in the global supply chain $ $ $ Copyright 2011 Private & Confidential 9

Trade Facilitation Impact Acting as the impetus, catalyst and instrument of Trade. Further attraction for Foreign Direct Investment (FDI) and relocation Stimulant for trade volume Connectivity to major ports of the world Facilitation for entry into Globalisation and International trade Long-term competitiveness in trade facilitation Copyright 2011 Private & Confidential 10

Value Drivers for Trade Facilitation Copyright 2011 Private & Confidential 11

World Bank Doing Business – Trading Across Borders 2013 Copyright 2011 Private & Confidential 12

So what’s “Single Window” Copyright 2011 Private & Confidential 13

“A lot of times, people don’t know what they want until you show it to them. ” Steve Jobs, Businessweek, 1998 Copyright 2011 Private & Confidential 14

What is a Single Window “A Single Window is a facility that allows parties involved in trade and transport to lodge standardized information and documents with a single entry point to fulfill all import, export, and transit-related regulatory requirements. If information is electronic, then individual data elements should only be submitted once”. UNECE Recommendation 33 Copyright 2011 Private & Confidential 15

National Single Window Integrates / Interface with ALL Govt Regulatory Agencies Risk Analysis / Management for all authorities 16 Copyright 2011 Private & Confidential Entire Trade Facilitation Value Chains Serve a the national secure, trusted Information Broker/ VAN 16

Single Window for Trade Facilitation Integrated Trade Facilitation Strategy – including Single Window q Trade Facilitation - Facilitate: to make trade easy or easier q Fundamental component of trade and economic development strategy (TF in WTO etc) q Single Window is not an end in itself q SW is not a technology system! Copyright 2011 Private & Confidential 17

Single Window – Reducing Trade Cost Copyright 2011 Private & Confidential 18

Real Focus: Reducing the economic impact of regulatory processes on cross border trade Each additional day of delay (e. g. because of trade logistics procedures) reduces trade by at least 1% Source: Simeon Djankov, Caroline Freund, and Cong S. Pham. (2007). Trading on Time. Washington, D. C. : World Bank. Direct and Indirect Cost from import/export-related procedures and required documents is up to 15% of product cost. Source: OECD. (2003). Quantitative Assessment of the Benefits of Trade Facilitation. Paris: OECD Publications Copyright 2011 Private & Confidential 19

Proof of SW in Reducing Trade…. Proof of SW in Reducing Trade Cost are mostly empirical There are very few studies conducted to show the direct contribution of SW in reducing trade cost Copyright 2011 Private & Confidential 20

Reducing Trade Cost – Korea’s u. Trade Hub Source: Rama Ha, KTNet Presentation 18 Nov 2012 Copyright 2011 Private & Confidential 21

Reducing Trade Cost – Korea’s u. Trade Hub Source: UNNext Brief #3 , May 2010 - Case of Korea's National Paperless Trade Platform u. Trade. Hub Copyright 2011 Private & Confidential 22

Reducing Trade Cost – Singapore’s Trade. Net In Singapore, the advantage gained from the adoption and application of the Single Window is the reduction and lowering of business cost. Overall, businesses can expect to save about S$75 M (USD 60. 4 M) over a period of 10 years. Source: Speech by Singapore Minister of State for Finance and Transport, 17 Jan 2006 https: //www. tradexchange. gov. sg/tradexchange/default. portal? _nfpb=true&_nfls=false&_page. Label= main_hidden&_type=hidden&_page=17 july 2006 openingaddress&_action=view Copyright 2011 Private & Confidential 23

What do we learn from these examples ? There are concrete savings … through Direct and Indirect Cost Savings are often empirically obtained Few countries with SW conducted comprehensive studies on the cost savings from SW Copyright 2011 Private & Confidential 24

Single Window – Increasing Govt / Customs Revenue Copyright 2011 Private & Confidential 25

How Ghana’s SW increase Trade Facilitation Journey Copyright 2011 Private & Confidential 26

Ghana Community Network (GCNet) is a Public Private Partnership (PPP) mandated by the Ministry of Trade and Industry to Implement and manage a Single Window system GCNet was created as a JV company : SGS (60%) Customs Excise and Preventive Service CEPS (20%) Ghana Shippers Council (10%) 2 local banks (5% each) Incorporated in Nov 2000 Formal launch of the GCNet Service in Dec 2002 70 employees (including Network, Systems, IT Security, Ops Support, Call Centre, Training Depts) Copyright 2011 Private & Confidential 27

Ghana Community Network in Figures Single Window system processing 99% of official trade Electronic Customs Declaration - 520, 000 per annum Electronic Manifest submission Processing of Permits and Exemptions & Import Declaration Operational in all main points of entry - 2 seaports, 1 int’l airport, 4 land borders. All active Declarants connected – 1200 Clearing Agents and Self Importer located at 625 locations All active Shipping (80) and Forwarding Agents (100) connected 560 customs terminals deployed covering all key functions – eg doc review, examination, post-event, audit, management, tariff etc… 1200 customs officers trained and active using the system 105 employees (Network dept, Systems Dept, IT security Dept, Ops support, Call Centre, Training) Copyright 2011 Private & Confidential 28

Ghana - Increase in Customs Revenue Immediate substantial decrease in clearance time – factor of 5 Immediate substantial increase in Government revenue – First year, increase of 35% year-on-year; subsequent years increase of 20%. Recognised as best practice by WCO and World Bank Copyright 2011 Private & Confidential 29

How Madagascar’s SW increase Trade Facilitation Journey Copyright 2011 Private & Confidential 30

Malagasy Community Network A Public-Private Partnership Joint Venture with Government for the development of Single Window – Malagasy Community Network Services (or Gasynet) Gasy. Net, modeled on the Singapore’s Trade. Net was established in 2006 SGS - 70% State - 30% Operational since April 2007 Copyright 2011 Private & Confidential 31

Malagasy Community Network Involves integration of Trade. Net System and existing ASYCUDA++ Trade. Net connects most of the entities involved in the import and export process Importers, Customs brokers, Customs, Port Authority, Container terminal, Commercial banks, Central Bank and the Treasury. Gasynet also incorporates a risk management system, which directs containers into one of four lanes—red, yellow, blue or green— depending on criteria specified by Customs. Copyright 2011 Private & Confidential 32

Malagasy Community Network World Bank’s Doing Business Report 2009 “The results of the reform have been impressive—according to Doing Business 2009, overall time to import a container into Antananarivo was cut by three weeks. Customs clearance time has been reduced to 72 hours at Toamasina, through which 80% of imports pass by value. ” “But quicker customs clearance isn’t all the reform has achieved. Since 2005, customs receipts have doubled—from approximately 900 billion Malagasy aryary to around 1, 800 billion today. And from the time Trade. Net started operations in June 2007, receipts increased by 50%. This is vital in a country where customs receipts still account for around half of state income. ” Copyright 2011 Private & Confidential 33

Thank you contact: Copyright 2011 Private & Confidential 34