1. Trade Facilitation and the Role of Information Technology Gerald Ollivier Transport Specialist golliver@worldbank.org

2. Increase demand Improve Supply (Production Offer) Trade Liberalization Agreements Market Intelligence Technology adoption and quality improvements Supply Chain Integration Process and Product Innovation Managerial and organizational improvement Links between large firms and SMEs Links between foreign and local firms Infrastructure and Logistics Information and Communication Technologies (ICT) Labor costs Reduce Costs Quality Standards and Norms Foreign Direct Investment Comprehensive Approach to Increase Trade, Productivity and Economic Growth Education and Training Ensure consistency between supply and demand Firms-Universities Networks Transaction costs Access to credit Source: Adapted from Guasch L., power point presentation for the LAC internal workshop on Competitiveness (May 2003) and Honduras Project Appraisal Document/Sue Goldmark’s presentation. Facilitation of transit, transport and trade

3. DC MEX -Receive Tremec quote & requests Metz quote -Approves Metz quote and sends PO to Metz -Sends “die set” to Metz -Approves eng. changes -Recv/Tests new tooling -Send report to Tremec -Send samples to Tremec -Get final approval METZ USA Company Tool & Tie Application of e-integration: GTN application Prepares tool engineering docs (3-D DWS) Applies engineering changes to tooling Tests new tooling Generates dimension reports Fixes tooling and prepares ship docs Carrier Tracking Systems Carrier Tracking Systems Supplier Collaboration utilizing internet Microsoft Technologies “BizTalk” ICLogistics Data Concept ICL PC software production database ERP ICLogistics Host Trading Partners common data ICL Master Software Central Repository Meta data / definitions Quotes, POs, Invoices, etc Servers with ICL software CUSTOMSCUSTOMS F R T FORWARD BDP INTL Mexico USA CUSTOMSCUSTOMS F R T FORWARD BDP INTL T remec production database Requirements Planning Engineering Scheduling Manufacturing BOL die set 3-D specs DWS RFQ for casting tooling 1 3-D specs DWS RFQ for tooling 3 2 e-mail 10 6 Quotation response 5 Purchase Order Quotation approval 7 Purchase Order e-mail paper BOL die set 9A BOL Pack list Invoice Cert. Orig 9A ICL PC software 9 Quotation response 4 e-mail 8 revised 3-D specs DWS e-mail 12 e-mail 11 13 14 16 USAID GTN FORD MEXICO Samples ? Reports Get final approval e-mail BOL Pack list Invoice Cert. Orig BOL die set 15 BOL die set 15 BOL Parts BOL Parts BDP XML / EDI Portal BDP XML / EDI Portal Source: Adapted from M. Tallent, ICLogistics

4. Manifest Bills of Lading Sea/AW Bill Container Plans Invoice Packing List Declaration Delivery Note Storage Air, Sea, Land International Transport Customs Port Pay Taxes Clear Customs Release Goods Ship’s Documents Certificates Of Origin Licenses Certificates Government Approvals Chamber of Commerce Foreign Chambers Commerce Overseas Embassies Post/ Courier “Legal Invoices” DOMESTIC SUPPLY CHAIN Raw Materials Packaging Transport Storage Quotations P.O.s Delivery Notes Con. Notes Invoices Statements Payments Remittance Advice IMPORTER MANUFACTURER EXPORTER FOREIGN BUYER IMPORT Licenses Certificates Government Approvals Certificates Of Origin Form A EUR.1 Government Departments Finance Ministry Port Invoice Packing List Declaration Delivery Note Customs “Informal Processes” Pay Taxes Clear Customs Release to Port Informal Processes Port Processes Internal Transport Storage Container Handling Loading PortCustoms MANUFACTURING/ VALUE ADDEDEXPORT Receive Goods Bank P.O. Contract Terms Delivery Instructions L.O.C. Pay Bank L.O.C. Packing List Invoice LOC Courier LOC Approval Shipping Documents Book/Confirm Transport /Dues Source: Adapted from H. Alavi, MNSIF

5. TF and IT Challenges Procedure/documentary streamlining comes first IT only an effective and supporting tool Gradual approach (Customs first) with global vision Gain private sector support through early wins IT ultimately needs to cover all trade/border agencies Champion at high governmental level Organize cooperation with neighboring countries Limited availability of ready made applications  challenge of internal development Limited capacity to manage a multi agency activity and resistance to change

6. Selected ECA Experience Most ECA Customs projects include sizable IT components (Russia, Turkey) Trade and Transport Facilitation in Southeast Europe I and II South Caucasus

7. Single Window Success Factors High political mandate First detailed analysis, followed by process and documentary reengineering/streamlining with all key players (border agencies, transport, traders … ) Use global standards (WCO, UN … ) Baseline indicators and performance measurement Needed minimum infrastructure Facilitating exchange of information: Common and intelligent network, international standards,regulatory framework for e-signature

8. Useful Resources Customs Modernization Handbook (IT chapter) UNECE Recommendation 33 on Single Electronic Window Task Manager ICT toolkit Global Facilitation Partnership for Transportation and Trade http://www.gfptt.org/Entities/TopicList.aspx E commerce and business, E-documents, Single Window environment, electronic standards/EDI