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.

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

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

CrimsonLogic’s International Track Record

What is Trade Facilitation?

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.

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

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 27-30 different parties, about 200 data elements, 40 documents and costs that range between 2.5-15% of the goods value. One extra day of clearance represents up to one tariff point Transparent

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

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

Value Drivers for Trade Facilitation

World Bank Doing Business – Trading Across Borders 2013

So what’s “Single Window”

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

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

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

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!

Single Window –Reducing Trade Cost

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

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

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

Reducing Trade Cost – Korea’s uTrade Hub Source: UNNext Brief #3 , May 2010 - Case of Korea's National Paperless Trade Platform uTradeHub

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 https://www.tradexchange.gov.sg/tradexchange/default.portal?_nfpb=true&_nfls=false&_pageLabel=main_hidden&_type=hidden&_page=17july2006openingaddress&_action=view

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

Single Window –Increasing Govt / Customs Revenue

How Ghana’s SW increase Trade Facilitation Journey

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)

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)

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

How Madagascar’s SW increase Trade Facilitation Journey

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

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.

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.”

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