Presentation on theme: "Thailand’s National Single Window Development"— Presentation transcript:
1 Thailand’s National Single Window Development Somnuk Keretho, PhD Director, Institute for IT Innovation Kasetsart University, BangkokAn integrated Trade Facilitation Strategy for Greece including Single Window July 2012, Athens, Greece1
2 Thai CaseLogistics as the National Competitiveness Strategy recognized by the Government and Business Leaders in 2003.Logistics Cost/GDP1Thailand~19%Japan~ 11%USA~ 9%EU~ 7%This is a threat, but alsoan opportunity for improvement.1 Ref: The Brooker Group2 Thailand GDP, 2004: ~6 million-million bath
3 Background Facts / Findings Thailand Logistics Development Thailand logistics cost to GDP ( ) was in a range of percents (about double the cost of many developed countries…)Logistics and trade facilitation are the important factors that contribute to the competitiveness of developing countriesThailand logistics service is mostly in the beginning stage of developmentThere is a significant potential for Thai logistics business services to grow and create economic values for Thailand and enhance international trade efficiency between Thailand and other countries.Thailand Logistics DevelopmentBrain storming in 2003Thailand Single Window e-Logistics Plan (2004)Logistics Development Strategy ( )
4 Logistics Development Master Plan (2007 - 2011) endorsed by the Thai Cabinet on Feb 2007 To reduce the trade logistics cost from 19% (2007) to 16% (2011) (comparing to GDP)
5 Trade Movement – 3 Kinds of Flow Buyer (Importer)Seller (Exporter)Physical GoodsPaymentInformation/DocumentsInformation/DocumentsWholesalersTradersPost-HarvestersCargo InsuranceFarmersExportersBanksTradersConsumersImportersFreight ForwardersCustomsOther-Government-AgenciesShip AgentTransport-OperatorsTerminal-OperatorCarriers
6 Thai Case ExampleDocuments related to Exportation of Rice (from purchase order until the cargo container leaving the sea port)36 Documents involving 15 parties, and more than 1,140 data elements to be filled inProforma Invoice (35)Purchase Order (39)Commercial Invoice (51)Application for Letter of Credit (24)Letter of Credit (32)Packing List (25)Cargo Insurance Application Form (20)Cover Note (23)Insurance Policy (24)Booking Request Form – Border Crossing (25)Booking Confirmation – Border Crossing (30)Booking Request Form – Inland Transport (16)Booking Confirmation – Inland Transport (18)Bill of Lading (42)Empty Container Movement Request (TKT 305) (20)Request for Port Entry (TKT 308.2) (27)Equipment Interchange Report (EIR) (24)Container Loading List (28)Container List Message (32)Outward Container List (34)Master Sea Cargo Manifest(17)House Sea Cargo Manifest (37)Export Declaration (114)Good Transition Control List (27)Application for Permission to Export Rice (KP. 2) (24)Sales Report (KP 3) (21)Application for the Collection of the Permit for the Export of Rice (A. 3) (35)Permit for the Export of Rice (A. 4) (35)Application for Certificate of Standards of Product (MS. 13/1) (44)Certificate of Analysis (17)Certificate of Product Standards (MS. 24/1) (45)Certificate of Fumigation (21)Application for Phytosanitary Certificate (PQ. 9) (29)Phytosanitary Certificate (33)Application for Certificate of Origin (42)Certificate of Origin (38)Buy/Pay DocsRegulatory DocsTransport Docs* Number in parenthesis is the no. of data elements
7 16 days required for procedures & documents handling Conduct Business Process Analysis - Exporting Jasmine Rice from Thailand -16 days required for procedures & documents handlingDayProcess20105153 days2 days4 days1 day136789121424131611Time-Procedure Chart1. Buy - Conclude sales contract and trade terms2. Obtain export permit3. Arrange transport4. Arrange the inspection and fumigation5. Obtain cargo insurance6. Provide customs declaration7. Collect empty container(s) from yard8. Stuff container(s)9. Transfer to port of departure10. Clear goods through customs11. Handle container at terminal and stow on vessel12. Prepare documents required by importer13. Verify the accuracy/authenticity of exported cargo14. Pay - Claim payment of goods
8 Exporting Rice (from purchasing time till the vessel leaving the port) 36 required documents (only 4-6 e-documents)15 Stakeholders involved14 big steps (123 small steps)16 days needed (all together)6 days for regulatory procedures7 days for transport-related procedures12 days for traders, banks and insurance procedures
9 Current Situation (2007) About 80% of required documents - Declaration - Invoice - Packing ListNew Generation of EDI(ebXML MS/XML Messages/Digital Singnatures)About 80% of required documentsare physical papers not electronic papers yet.SeparateICT islandsPaperless Customs Declarationand ClearanceCustoms DeptServerExporterBrowser (Request for C/O)Web-Based Application(Certificate of Origin)Dept of Foreign TradeBrowser (Request for Health Cert.)except Shrimp (Request from Dept of Fisheries)Web-Based Application (Health Certificate)Dept of Livestock DevelopmenthaMany Paper DocumentsWeb-Based Application (Health Certificate)Dept of FisheriesPaper Handling and/or Web-Based Application (Bill of Lading)Carriers or other logistics service providers
10 Thailand vision: from multiple windows to Single Window To reduce time used on document procedures~ 24 days *(World Bank 2006)Less than 10 DaysNational Single WindowCarriers & LSPExporterAnd ImporterGovernment Agencies~350 data items and no travel neededSingle entry processData HarmonizationOne day delay costs 1% reduction in export value (World Bank, 2006)Direct and indirect costs incurred in documentary process account for 1-15 % of finished goods (OECD, 2003)Impact to economy
11 A Conceptual Architecture of the “To-Be” National Single Window Thai Case ExampleNow, technical interoperability standard(e.g. based on ebXML MS) is needed, andcommon definitions of data elements, andsemantic data structures (common data models)among different documents required bydifferent organizations are required also.Paperless Customs Declarationand ClearanceCustoms Dept36 Regulatory AgenciesExporterNationalSingle WindowWeb-Services (ebXML) Application(Certificate of Origin)Dept of Foreign TradeGoal - Single Window/e-Documents One time submission for each data element but multiple usage for different purposes on different ICT platformsWeb-Services (ebXML) Application (Health Certificate)Dept of Livestock DevelopmentWeb-Services (ebXML) Application (Health Certificate)Dept of FisheriesWeb-Services Applications(e.g. Bill of Lading, and other documents)Carriers or other logistics service providers
12 Thailand SW Architecture (Regulatory SW) Governance Mechanism – policy decision, service charge regulation, service level agreement etc.2Importer/ExporterCarrierShip Agent,Airlines AgentCustom Broker/Freight ForwarderBank andInsuranceOther LogisticsService ProvidersPrivate Sector&Transport AgenciesOtherBusiness PartiesVASValue-AddedServiceProvidersServices for SingleWindowEntry andBusinessProcess Management56NationalSingleWindow(NSW)By Customs Departmente-DocumentExchange Hubfor Cross-boarderTrade and Transport13Customs DeptDept. ofForeign TradeDisease ControlFisheriesPort AuthorityOf ThailandPort/Airport36 Governmentand facilitatingAgenciesOther agenciesebMSVAS GatewayProcess Re-design & Data HarmonizationVAS GatewayProcess Re-design & Data HarmonizationVAS Gateway77ICT National Infrastructure and related IT Laws responsible by Ministry of ICT412
13 Roles & Participants Electronic document Exchange Service Document exchange between government agencies (G2G) via Government Information Network (GIN) supported by MICTData exchange between government and business sectors (G2B) via VAN/VAS providersData exchange between business sectors (B2B) via VAN/VAS providersNational and International GatewaysIntegrate / link VAN/VAS (import, export and logistics)National gateway for data exchange between Thailand and ASEAN MembersNational gateway for data exchange between Thailand and other countriesParticipants / Clients40 government agencies (35 user agencies and 5 support agencies)125,000 traders (importer, exporter, customs broker, freight forwarder, shipping lines, air lines, sea port, air port, logistics service providers, bank,…)Others (ASEAN Member and other countries….)
14 National CommitmentNational Logistics Committee chaired by the Prime MinisterMinister of Finance, Minister of Industry, Ministry of Commerce,Ministry of Transport, NESDB (National Economic and Social Development Board), ….Executives from business sectorsThailand National Single Window is one of the National AgendasASEAN Agreement to establish the ASEAN Single WindowASEAN – 6 (2008)ASEAN – 4 (2012)Leading AgencyThe Customs Department, Ministry of FinanceBusiness/Financial Model of National Single WindowInitial funding by the government (100%) supervised by the CustomsNo transaction fee for data exchange among government and trade
15 Interagency Collaborative Platform National Committees and Working GroupsNational Logistics Committee of ThailandNational Sub-committee on Data Integration for Import, Export and LogisticsSteering Committee on National Single Window DevelopmentCommittee on Regulatory Framework and Quality Assurance of Thailand NSWInter-Agency Technical Working Group for National Single WindowInter-Agency Legal Working GroupCommittees and Working Groups (within each agency)Business process analysis and reformsA Lot of Workshops, Group discussion and consultations to simplify and streamline business process among government and business sectorsASEAN Meetings and Working BodiesAEC Council, AEM, AFM, ASEAN Customs Director-General, ….ASEAN Single Window Steering Committee (ASW)Technical Working Group for ASWLegal & Regulatory Working Group for ASW, etc
16 Legal and Agreement Framework Electronic documents legally recognized under the National Electronic Transactions Act (April 2001)Enhance Departmental regulation for e-document exchange among government and business sectorsInter-Agency Legal Working Group enables relevant legal frameworks for paperless service among 35 government agenciesMOU among 36 organizations were signed for electronic document adoption (including representatives from business sectors)
18 A Single Submission for Electronic Customs Declaration Submission with Digital SignatureAll transactions are electronically exchanged, e.g. Customs e-payment, risk analysis, reporting, …Referring to – ‘Thailand NSW” presentation by Mr. SINMAHAT Kiatjanon, Thai Customs Department - February 2010., Nepal.
19 Adoption of e-Document Exchange around the country taking times!
20 ”As-Is” Business Process Analysis for Exporting Jasmine Rice Thai Case”As-Is” Business Process Analysis for Exporting Jasmine RiceProblems :- Duplicated Information & 3-5 physical visits to different locations- High Cost and Time for sending and receiving documents- Possible Data Inconsistency
21 Thai Case”To-Be” or new/faster/better Process with Data Harmonization for possible Single Data Entry
22 A Regional Connectivity: ASEAN Single Window ASEAN Data Model uses information parameters from 13 documents for cross-border cargo clearance.
23 Cross-border Collaboration ASEAN Single Window (ASW)ASEAN Agreement for ASW signed by ASEAN EconomicMinisters (9 December 2005) and ASEAN Protocol for ASW signed by ASEAN Finance Ministers(5 April 2006)ASW Pilot projectExchange of ECO for ASEAN and ASEAN Customs Declaration DocumentASEAN engaged consulting firm to study the solution for the ASW pilot projectMalaysia-Thailand B2B Cross Border InitiativeFacilitation of Trade Route through the use of RFID Pilot project start 2010 (TNT & DHL, …)Live and Enhancement (2011)Thailand – Lao B2B Pilot Project Initiative (2010)Lao importers can reuse electronic export customs declaration receiving from exporter in ThailandThailand – Taiwan G2G pilot project InitiativeECO (electronic certificate of origin) pilot project for trade facilitation1st Joint Meeting in Taipei (December 2010)
24 Customs Clearance Impacts Ref: Sinmahat K. “NSW in Thailand”, a presentation in Nepal, Feb 2011.
26 Recommendations for Greece Development of Electronic Customs Declaration Submission with Digital Signature (or other appropriate means for online identification) with other supporting functions, e.g.Risk AssessmentCustoms Duty e-Payment (connecting with Banks)Physical examination reductionOnline statistics reportingVAT refund operational improvement, etc..Development of paperless import/export-related permits and certificates issuing and e-document exchange for speeding up and more effective Customs control with agriculture products and other specialized goods.
27 Thank you. “Dear friend, I pray that you may enjoy good health and that all may go well with you, even as your soul is getting along well.” 3 John 2 [The Holy Bible].Somnuk Keretho, PhD UNNExT Advisory Committee Director, Institute for IT Innovation Kasetsart University, Bangkok27