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Ki Hyun OH Managing Director/KTNET Ki Hyun OH Managing Director/KTNET UN/CEFACT Going for Seamless Paperless Trade
UN/CEFACTUNECE Copyright© 2005 KTNET All Right Reserved Who is KTNET? 2. KTNET Services 3. Global Projects 4. Vision Contents UN/CEFACTUNECE
1. Who is KTNET? UN/CEFACTUNECE
UNECE Copyright© 2005 KTNET All Right Reserved. 4 Profile of KTNET Establishment Employees Revenue (04) Capital established on December 1991 by the initiatives from MOCIE About 200 employees 70Million (USD) 50Million (USD) Transaction About 9.6 Million Times/ Month e-Docs 300 kinds of e-documents in service User Group Trading Firms, Banks, Customs Brokers, Bonded Warehouses, Shipping Companies, Airlines, Korea Customs Service, Other Government Agencies and trade-related authorities.
2. KTNET Services UN/CEFACTUNECE
UNECE Copyright© 2005 KTNET All Right Reserved. 6 KTNET Service Overview Business ScopeServices Service Type VAN Web(portal) Mega portal Commerce eCustoms Trade Finance eLogistics - Export/Import License - Marine Cargo Insurance - Export Insurance - Application for ((Issue) Letter of Guarantee - C/O, P/L - L/C Advice - Local L/C - Remittance - Customs Declaration - Manifest Consolidation System - Duty drawback - Shipping Request & Order - Bill of Lading Advice - Marine Cargo Insurance Policy C/S eTF TM eCF TM eLF TM CTrade World eTF TM
2-1. Commerce and Trade Finance UN/CEFACTUNECE
UNECE Copyright© 2005 KTNET All Right Reserved. 8 Who participates in Commerce & Finance service? About 16,000 trading firms and most of trade related organizations participate in Commerce and Finance service network Trading firms(16,023) Korean banks(19) Foreign banks In Korea(23) Korean Chamber of Commerce and Industry (2) Industrial Associations (18) Korea Export Insurance Corporation (1) Insurance companies (6) KTNET
UN/CEFACTUNECE Copyright© 2005 KTNET All Right Reserved. 9 L/C Opening/Advice 1. BUSINESS CONTENT : L/C open, Opening Charge Notice, L/C advice, Advising Charge Notice APP700 (L/C Application) FINBIL (charge advice) IMPORTER FOREIGN NOTICE BANK SWIFT OPENING BANK ADV700 (L/C Advice) Nego L/C PRESENTATION EXPORTER 2. BUSINESS FLOW
UN/CEFACTUNECE Copyright© 2005 KTNET All Right Reserved. 10 Local L/C Opening/Advice/Nego 1. BUSINESS CONTENT : Local L/C open / advice, VATBIL or LOCRCT(local receipt certificate), Application for Bill of Exchange negotiation 2. BUSINESS FLOW Exporter Exporter Offer sending VATBIL issue LOCRCT issue Nego/settlement L/C advice Nego/settlement Opening Bank L/C open Nego/ settlement Negotiating Bank Manufacturer Manufacturer
UN/CEFACTUNECE Copyright© 2005 KTNET All Right Reserved. 11 Letter of Guarantee EDI*NET Bank L/G issuing inquiry and confirmation Bank L/G Issue (LOGUAR/LOGADV) Bank L/G Issue (LOGUAR) L/G Application (APPLOG) Cargo Delivery Order (GODAPP) Cargo Delivery Order & bank issuing D/O agreement yes or no confirmation taking out IMPORTER BANK FORWARDER WAREHOUSE MFCS KTNET Exit 1. BUSINESS CONTENT : L/G Application, L/G Sending, L/G Issuing inquiry & Confirmation, Letter of Guarantee, Cargo Exit 2. BUSINESS FLOW
UN/CEFACTUNECE Copyright© 2005 KTNET All Right Reserved. 12 Exporter TDA e-Trade Platform CO APP e-C/O e-C/O, Inv, P/L Importer e-C/O KCCI Customs Import Dec. e-C/O Scenario e-C/O, Inv, P/L by paper handling Bank print out DVCS Overseas Hub Customs TDA for Customs e-C/O, Inv, P/L Import Doc.(e-C/O, INV) Import Process Export Process Paper Process Certificate of Origin choice of document handling (on - offline) TDA : Trusted Document Authority DVCS : Data Validate Certificate System
2-2. e Customs UN/CEFACTUNECE
UNECE Copyright© 2005 KTNET All Right Reserved. 14 As of June 2005 *OGA: Other Government Agencies KTNET Trading Firms (16,000) Bonded Warehouse (1,176) Bonded Transportation (308) Forwarder - Sea(1966) - Air (1278) Customs Broker (722) Shipping Companies (574) Air Lines (53) Tallying Firms (22) SITA Bank (20) ARINC Network Service Provider OGA (120) PAA Global Networks ASEM US Customs KTNET Networking
UN/CEFACTUNECE Copyright© 2005 KTNET All Right Reserved. 15 Traders Shipper/Airline Forwarder Organization Bank/Insurance Customs Service Transport eCustoms Teaming up with the Korea Customs Service,KTNET has developed the Customs Information System handling cargo-related activities rapidly and precisely. Electronic Data Interchange(EDI) System for Export Clearance was launched in Followed by Import Clearance in 1996 and by Automated Duty Drawback in 1997 and reached close to 100% Paperless Customs Procedures. e-Customs Service
2-3. e-Logistics UN/CEFACTUNECE
UNECE Copyright© 2005 KTNET All Right Reserved. 17 Arrival & Departure TransportLoad Customs House WarehouseForwarderTraders Airlines Shipper Export Import KTNET INFORMATION Drives the processing speed of Logistics and reduces Time and Cost for Cargo Management. Covers 100% Complete Cargo Management Process, from arrival, unloading and warehousing to delivery to customers. Using EDI based Document Standards and Simplification, KTNET provides 24-hour real- time Logistics service. e-Logistics Service
UN/CEFACTUNECE Copyright© 2005 KTNET All Right Reserved. 18 Warehouse Trader Customs Broker Korea Customs Service Trucking Company Tallying Firm Airline Shipping Company Freight Forwarder Manifest Entry Agent Stevedore Bank ARINC Expected Carry- into information Work order list for Cargo allocation Unloading Report Expected Check List Bonded Transportation List Cargo Information Inquiry Pre-arrival Customs Clearance L/G Information Confirmation for shipment of Export cargo Arrival Notice Paperless Nego Manifest Acceptance Internal business of Customs Suspicious Cargo Selectivity Master Manifest Transmission FFM/FWB Master Manifest Transmission House Manifest Transmission D/O, L/G House Manifest Transmission eLogisFrame TM MFCS TM eLF TM transmits e-documents such as ; * D/O : Delivery Order * L/G : Letter of Guarantee e-LogisFrame TM Service
UN/CEFACTUNECE Copyright© 2005 KTNET All Right Reserved. 19 Airliner Forwarder MFCS Korea Customs Shipping company Airliner Forwarder Foreign cargo management system Foreign Customs Shipping company Bonded transporter Bonded warehouse Information Sharing Connecting Koreas Manifest Consolidation System(MFCS) with the cargo management systems of foreign countries will enable a global sharing of cargo information resulting in better Customs Service administration Sharing Cargo Data- Suggestion for Intl Cooperation
UN/CEFACTUNECE Copyright© 2005 KTNET All Right Reserved. 20 Global Visibility service End to End, Real & Near Time Global Visibility Integrated & Centralized Connection DC/Buyer Pick Up Arrival Departure Forwarder Terminal Airlines Carrier Break down Terminal Forwarder Trucker Delivery Goods Receipt Trucker P/O Issue P/O Accept Goods Issue Pick Up Shipment B/L Issues Transport Transfer Import Arrival, Customs- Release Inland Cartage Delivery Invoice Account Payable Goods Receipt Shipper Consignee As the backbone of KTNET e-Logistics, Intelligent & proactive track & trace platform with global connection Data sharing by the actions of touch points like uploading from legacy or inputting data Booking from customers to logistics service providers via on-line Pre-alert, event management, inventory(in motion & at rest)control provided Export clearance Build up Import clearance Goods Issues Supplier/ Factory
UN/CEFACTUNECE Copyright© 2005 KTNET All Right Reserved. 21 Global Visibility Service VISIBILITY in KTNET ATHENA [HP GLOBAL] [HP Korea] [Customs Broker] [Bonded Warehouse] [Inland Transportation] Import ClearanceTransportation Status SCM:Production, Inventory SCM:Delivery, Shipment Commercial Invoice Visibility Monitor HP(Headquarter in US & Korea) & its logistics service providers connected with KTNET Data uploaded and shared with trading partners Real time cargo status information created and supplied for customers Cargo status information(delay, on time or in time) acquired from the WEB Time and cost for cargo tracking reduced Cargo in & out of W/H Business Case of Visibility in service [HP Singapore]
3. Global Projects - PAA - ASEM - GSCM 3. Global Projects - PAA - ASEM - GSCM UN/CEFACTUNECE
UNECE Copyright© 2005 KTNET All Right Reserved. 23 Manufacturer 9 members ; KTNET (Korea), CIECC (China), Tradelink (Hong Kong), TEDMEV (Macau), Trade-Van (Chinese Taipei), TEDI (Japan), CrimsonLogic (Singapore), DagangNet (Malaysia), CAT (Thailand) PAA Members and Business Scope Authority KTNET Carrier Bank Warehouse Trucker Customs Broker Trader Customs Insurance e-MP Domestic Paperless Trade 260,000 Customers Hong Kong Singapore Malaysia Japan China Chinese Taipei Korea Macau Asian Paperless Trade Forwarder
UN/CEFACTUNECE Copyright© 2005 KTNET All Right Reserved. 24 Interconnection Standard (Interoperability) e-Document Standard Security (Public Key Infrastructure) Interconnection Standard (Interoperability) e-Document Standard Security (Public Key Infrastructure) Background for legal issues Multilateral Agreement Background for legal issues Multilateral Agreement As Is: B2B & B2G e-Docs, Visibility Service, etc.. To Be: e-B/L, e-Nego, e-Payment As Is: B2B & B2G e-Docs, Visibility Service, etc.. To Be: e-B/L, e-Nego, e-Payment PAA Performance Secure Cross Border Transaction Service Technical Standard PAA Club Agreement
UN/CEFACTUNECE Copyright© 2005 KTNET All Right Reserved. 25 Beginning Objectives Introduction of ASEM Approved by ASEM members at the 1 st ASEM Conference on e-Commerce(2001) Facilitate International Trade between Asia and Europe Public-Private Joint Efforts e-B2G Docs as well as e-B2B Seamless Paperless Trade process by e-B/L, e-Nego and e-Payment ( US$3,976million) (US$12,425million) (US$6,798million) (US$56,658million) Trade Volume with Korea Source : 2004, KITA
UN/CEFACTUNECE Copyright© 2005 KTNET All Right Reserved. 26 ASEAL-A Booster to ASEM Project
UN/CEFACTUNECE Copyright© 2005 KTNET All Right Reserved. 27 Object - Building up Public SCM platform for Korean SMEs Introduction of GSCM A Supplier1 Company A Supplier 3 Big corp. Private SCM A overseas factory A Supplier 2 Market Place A Buyer A Buyer 2 A Supplier 4 A local factory GSCM-Hub DomesticGlobal To increase business flexibility by corresponding to global market changes To support investment on overseas manufacturing facilities To support SMEs IT-based business activities To upgrade private companies competence Background
UN/CEFACTUNECE Copyright© 2005 KTNET All Right Reserved Vision UN/CEFACTUNECE
UNECE Copyright© 2005 KTNET All Right Reserved. 29 e-Trade Platform (KTNET) eMarketPlace Credit Evaluation Company Marketing Bank Credit Card KFTC Insurance Company Customs Service National Logistics Single Window Document Standard Trading Company (Including SME) e-Trade Single Window Global e-Trade Hub Global Networking Certified Certificate Authority Financial Settlement License/Certificate Insurance Insurance Company Standardization Agency Korean Single Window - e-Trade Platform
UN/CEFACTUNECE Copyright© 2005 KTNET All Right Reserved. 30 Seamless Paperless Trade Legal Documents Bill of Lading Legal Documents Bill of Lading Private Documents Administrative(B2G) Documents I/V, P/L, Delivery Schedule, DELJIT, P/O, Payment Notice, Shipping Order, and other private doc. Certification of Origin Export License Acceptance of e-Docs by Customs Other administrative Doc. Seamless Paperless Trade
UN/CEFACTUNECE Copyright© 2005 KTNET All Right Reserved. 31 Embodiment of International paperless Trade Embodiment of Global paperless Trade International Promotion International Cooperation By PP partnership Standardization & Guidelines Conventions/Agreements for the Effectiveness of Paperless Trade Local Promotion Public-Private Co-Work Standardization Local MissionInternational Mission Related Laws/Systems/Process Enhancement Requisite for Paperless Trade
Thank you! UN/CEFACTUNECE
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