1. 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 CrimsonLogic Pte. Ltd.

2. Introduction
CrimsonLogic 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

3. CrimsonLogic 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

4. CrimsonLogic’s International Track Record

5. What is Trade Facilitation?

6. 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.

7. 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.
harmonisation

8. What is Trade Facilitation?
Government
Industry
Simplify
Movement of Goods
Compliance
Transportation
Regulations
Procedure
Documentation
Standardize
Secure
The definition of trade facilitation is
constantly evolving1. Trade facilitation (TF) aims to make trade procedures as efficient as
possible through the simplification and harmonization of documentation, procedures and
information flows.
In a narrow sense, it addresses the logistics of moving goods through ports or customs.
More broadly, it encompasses several inter-related factors such as customs and border
agencies, transport infrastructure (roads, ports, airports etc.), services and information
An international trade transaction normally involves different parties,
about 200 data elements, 40 documents and costs that range between % of the
goods value. One extra day of clearance represents up to one tariff point
Transparent

9. Trade Facilitation = reducing the Speed bumps in the global supply chain$ $ $ $ $ $

10. 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

11. Value Drivers for Trade Facilitation

12. World Bank Doing Business – Trading Across Borders 2013

13. So what’s “Single Window”

14. Steve Jobs, Businessweek, 1998
“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

15. 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

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

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

18. Single Window –Reducing Trade Cost

19. 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

20. 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

21. Reducing Trade Cost – Korea’s uTrade Hub
Source: Rama Ha, KTNet Presentation 18 Nov 2012

22. Reducing Trade Cost – Korea’s uTrade Hub
Source: UNNext Brief #3 , May Case of Korea's National Paperless Trade Platform uTradeHub

23. Reducing Trade Cost – Singapore’s TradeNet
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 (USD60.4M) over a period of 10 years.
Source: Speech by Singapore Minister of State for Finance and Transport, 17 Jan 2006

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

25. Single Window –Increasing Govt / Customs Revenue

26. How Ghana’s SW increase Trade Facilitation Journey

27. Ghana Community Network
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)

28. 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)

29. 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

30. How Madagascar’s SW increase Trade Facilitation Journey

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

32. Malagasy Community Network
Involves integration of TradeNet System and existing ASYCUDA++
TradeNet 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.

33. 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 TradeNet 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.”

34. Thank you contact: