United Nations Economic Commission for Europe UNECE Single

United Nations Economic Commission for Europe (UNECE) Single Window for Trade Facilitation Tom Butterly Deputy Chief, Global Trade Solutions Branch Workshop on Trade Facilitation Moscow 22 -23 November 2004

UNECE – Global and Regional perspective n Global level - development and maintenance of international standards through UN/CEFACT - United Nations Centre for Trade Facilitation and Electronic Business n UNECE regional level - implementation in n Implementation in other regions - cooperate member states especially in transition economies extensively with other UN Regional Commissions and other multilateral organisations

UN CEFACT International Trade Procedures Working Group (TBG 15) n Single Window Recommendation developed by UN/CEFACT International Trade Procedures Working Group (ITPWG), with representation from governments, trade and international organisations n All welcome to participate in UN/CEFACT work (next Forum in Malaysia in March 05)

Meeting regulatory requirements and exchanging information with government The current situation

A single window The new approach - a simple, onestop solution offering official control with trade facilitation.

The UN/CEFACT Single Window Recommendation n Analysis of existing and planned Single Windows in 12 countries to determine: – current practices; – structures; – products and services; and – funding mechanisms. n On the basis of this analysis, we developed a Recommendation and Guidelines Extensive review process – finally approved in September 2004

UN/CEFACT Recommends that governments and those involved in international trade should… Proceed with the setting up of a Single Window facility at the national level through a collaborative effort with all relevant governmental authorities and the business community Give full consideration to the guidelines attached to the present recommendation in the establishment of their Single Window facility

The Single Window facility should allow: § Lodgement of standardised information and documents with a single entry point (to fulfil all export, import and transit related regulatory requirements) § if the information is electronic, then individual data elements should only be submitted once

The Single Window facility should: n Support the sharing of information by a legal framework that provides privacy and security in the exchange of information n Co-ordinate the controls of the various governmental authorities, where appropriate n Provide facilities to receive payment of duties and other charges n Provide access to trade related government information

The Guide on the establishment of a Single Window n n n The Guidelines Overview description of a Single Window Common models for a Single Window Benefits of a Single Window Practical steps in planning and implementing a Single Window Key factors for a successful Single Window

Key factors n n n n n Political will Strong lead agency Partnership between government and trade (need for dialogue) Establish clear and measurable objectives Phased approach Use of international standards Legally enabling environment User friendliness, accessibility and training Financial model Promotion and communications

The Guide on the establishment of a Single Window n n n The Annexes Annex A: Single Window Models - examples of existing or planned Single Windows Annex B: Practical Steps for Planning & Implementation Annex C: Components of a Feasibility Study Annex D: Tools & Techniques Annex E: Signposts - contact details for operational Single Windows and international organisation projects

The most common models

A Single Authority that receives information, either on paper or electronically, disseminates this information to all relevant governmental authorities, and co-ordinates controls to prevent undue hindrance in the logistical chain (e. g. Sweden)

A Single Automated System for the collection and dissemination of information (either public or private) that integrates the electronic collection, use, and dissemination (and storage) of data related to trade that crosses the border (e. g. Unites States).

An automated Information Transaction System through which a trader can submit electronic trade declarations to the various authorities for processing and approval in a single application. In this approach, approvals are transmitted electronically from governmental authorities to the trader’s computer. (e. g. Mauritius, Singapore)

Single Window Examples Sweden United States Germany Mauritius (From 3 day workshop on documents, edocuments and Single Windows)

Single Window in Sweden n n Information is gathered by Swedish Customs on behalf of more than 30 different authorities (import VAT, trade statistics, monitoring of licenses, pets, weapons etc. ) Swedish Customs Single Window solutions are available using different technologies: – – – EDIFACT Internet Mobile solutions

Participants n n n n Swedish importers, exporters and brokers. National Board of Taxation. Statistics Sweden. National Board of Agriculture. National Board of Trade. European Union. Annually 94 % of all Customs declarations are submitted using a Single Window solution.

Business model n n n The Virtual Customs Office, including Single Window solutions, is financed within existing budgetary means of Swedish Customs. e. Services of Swedish Customs is free of charge and no user fees are applied. However, clients are charged for submitting paper documents ….

Results n Major benefit: automatic clearance of Customs declarations – For trade: release times 90 seconds – For trade: no requirements for supporting documents – For trade: one interface regarding all information related to international trade. – For Customs: reallocation of resources – For Customs: improved collection

United States Single Window International Trade Data System (ITDS)

(operational) USDA ITDS/Single Window Processing (interfaced) FWS CBP CPSC ACE/ITDS Single Window FDA food arrive/depart CBP ACE/ITDS INS immigration USTR (periodic) Truck Driver Goods DOT transport

Process Survey of all relevant Government Agencies involved in trade n Revealed that over 300 forms consisting of approx. 3000 data fields n Over 90% of information redundent n Through harmonisation and standardisation reduced this to 200 data elements n

Participants/Clients n Federal Trade Agencies: – Admissibility and export control – Statistical and analytical – Trade promotion n Trade Community – Importers – Exporters – Customs Brokers – Carriers – Port Authorities

Single Window in Germany Port of Hamburg Experience of DAKOSY AG

Participants / Clients DAKOSY-Denmark Customs DP Centre Frankfurt DAKOSY-Bremen ATLAS Internet DAKOSY Internet-Server IBM AS/400 Router Node EDI Firewall Backup 890 Forwarders 96 Liner Agents and Shipping Lines IBM AS/400 ASP IBM AS/400 GEGIS 254 Exporters/Importers/ Manufacturing Industry webhosting UNIX and IBM AS/400 HABIS DAKOSY DPC Outsourcing Terminal-Server-Farm IBM AS/400 Backup 15 Carriers - Road IBM AS/400 Backup IBM AS/400 35 Quay Operators and Container Packing Companies IBM AS/400 22 Carriers - Rail Public Authorities 3 Tally Companies èHamburg Water Police Station èHamburg Fire Service Headquarters èEnvironment Authority èBAGS (Hamburg Safety and Health Authority) èCustoms Office Hamburg Harbour (ZAPP) èFederal Customs Departments (ATLAS) 3 Carriers - Feeder and River Barges

Examples Business data between and Volume (daily) Quay Order 600 Forwarders > 30 Quay operators 3. 400 Bills of Lading 150 Forwarders > 50 LA / Shipping L. 1. 500 Transport Order Rail > 75 Forwarders German Rail / LA / Shipping L. Private Rail Operators 1. 600 Export Declaration 750 Forwarders LA / Shipping L. 4. 900 Import Release > 870 Forwarders German Customs - ATLAS 9. 500 90 Quay Operator River Police LA / Shipping L. 1. 250 Dangerous Goods Announcement LA = Liner Agent, Shipping L. = Shipping Line Customs Hamburg

Participants / Clients

Business model Shareholders to pay a yearly fee for the so called „traditionell EDI-Business within the port - community“ n Each participant has to sign a contract with one of the shareholders and has to pay to them for the usage of the EDINetwork of DAKOSY n Additional services of DAKOSY (EDI, ASP and IT- Services) are charged by DAKOSY directly n

Lessons learned n n n 90 % Talking, 10 % Doing Most important: All people to tow one rope in the same direction! “Eat the elephant piece by piece”

Single Window Mauritius Trade. Net

Services n Submission, processing and approval of declarations to Customs within a 15 -minute n Access to air and sea cargo manifests, ships’ arrivals and departures, movement of containers, etc. n Notice of release of consignments n Payment of duties by electronic means n Contributions Network Project has been launched, allowing the payment of various fees & taxes

Trade. Net Access n PC, a modem, a telephone line and a Declarant ID n Documents and trade information entered into the system transmitted between all parties involved in the movement of goods (imports and exports) and the Customs Department n Links with Customs Management System for automatic processing and approval of Customs declarations

Participants n n n n Customs & Excise Department Importers, exporters and re-exporters Freight forwarders Port Authority and its cargo handling agency Shipping/airline companies and their agents Ministry of International Trade Chamber of Commerce & Industry Over 1000 declarations on average are received and processed every working day by the country’s Customs & Excise Department

Business model n n n Joint-venture functioning 100% as a private concern Equity (± USD 1 million) provided by shareholders Self-sustainability perspective right from the start Activities financed from 2 sources: - a software single-user licence of $ 1300 at the outset - a service fee of USD 5. - per declaration sent thru’ MNS Highly successful and profitable activity: - share value multiplied by eight since 1994 - yearly dividends = ± 90% of funds invested

Results n n n Reduction in processing time of Customs declarations from days/several hours to 15 min. Declarations sent/information retrieved from one’s office Enhancement of transparency and productivity Conclusive public/private sector collaboration The Mauritian CMS is now used by the Ghana Customs

UN CEFACT Recommendation 33 Next Steps n Establish repository on existing Single Windows n Meeting in 2005 of all existing Single Windows to discuss standards and interoperability n Encourage implementation by developing Business Cases for the three Single Window models n Promotion at Capacity Building Workshops for Trade Facilitation Implementation and presentations to interested organisations

Further Information … Tom Butterly Deputy Chief Global Trade Solutions Branch UNECE E-mail: tom. butterly@unece. org Website: www. unece. org/trade