Single Window for export and import clearance: Joint Trade Conference: PAM and UN Trade & Productive Capacity Cluster Geneva, 4-5 May 2011 Single Window for export and import clearance: Policy arguments and regional options Mario Apostolov, Regional Adviser UNECE Trade mario.apostolov@unece.org

Financial crisis, social upheaval Mediterranean: Financial crisis, social upheaval

The current situation Economic crisis Security concerns

The current situation Economic crisis Security concerns - Raise economic efficiency - Trade (eliminate protectionism) Economic crisis - Foster development in South and East Mediterranean - Efficiency of official controls Security concerns - Good governance

Eastern Europe 1989 Mediterranean 2011 Vaclav Klaus to the West: Give us trade, not aid! Eastern Europe 1989 The structure for this: EU integration Period of preparation & expectations Wave of democratization in the S.&E. Mediterranean What structural arrangements ? Support for SMEs – middle class – democratic society Tariffs - low (WTO) = trade facilitation Mediterranean 2011

Why a Single Window? UNCEFACT Recomendation 33 Organizational and political instrument A tool of good governance (benefits for Government) Efficient distribution of resources Better revenue collection More compliance from businessh More security (on hte basis of risk analysis) Less corruption A tool of business efficiency (benefits for business) Lower cost because of shorter time for the preparation of documents Goods released faster Predictable and efficient explanation and implementation of rules and procedures More transparency 6

Streamline trade procedures and document exchange PROBLEM – For a foreign trade transaction various control agencies require about 40 documents with often repeated data => Streamline trade procedures and document exchange Alignment withinternational standards Automation ▼ SOLUTION – Single Window for export and import clearance G 2 G G 2 G G 2 G B G B G B 2 G B G B 2 B 7

What the Single Window is: virtual info exchange Definition: a system that allows all participants in trade and transport file requested information in only one place, in a standard format, in order to carry out import, export and transit operations. Another Longer-term objective is establishing Single Window systems. We have a request from the SMN Govmt to help advance a project there. A Single Window can be defined as a facility that allows parties involved in trade and transport to lodge standardized information and documents with a single body to fulfil all import, export, and transit-related regulatory requirements. If information is electronic, we talk about an electronic SW (this is not obligatory). The point is that individual data elements should be submitted only once. UN/CEFACT will adopt a Recommendation and Guidelines on SW in summer 2004 (text available)

Rec. 33: The Single Window Concept FROM TO PORT AUTHORITY CUSTOMS CONSIGNOR HEALTH CARRIER HAULIER WHARFINGER BROKER LINE AGENT CONSIGNEE Single Window Customs, export, import, etc. processes together Many documents filed together Appr. 1 hour for clearance Mountains of paper 30% mistakes Weeks for clearance

Two directions of work in building a SW ~80% of the work - negotiations Policy work Building political will Draft concept paper & feasibility study Appoint a lead agency (e.g. Customs) Harmonize policy Technical work Data harmonization Developing a SW system Alignment with international standards Interagency management group ~20% technical work Interagency technical group

Prerequisites High-level political support (e.g. PM) Strong lead agency Clear vision (purpose, concept, model, scope) Effective coordination of various organizations! Step-by-step Involve business community in planning, decision-making and execution (not like Tunisia TradeNet) Create an enabling legal environment Draft and adopt a Master Plan defining tasks for all

Rec.35: Checklist of basic legal issues Law on electronic signatures Is the system working on a PKI basis? Is there a root CA + functioning network of CAs? 2) Law on electronic commerce 3) Law on e-government 4) Law on data protection 5) Do sectoral laws (e.g. sanitary laws) envisage the use of sector and/or country specific codes 6) Are there requirements for paper originals in law?

Public vs. private law (both domains) Agreement on a Single Window (among multiple organisations to define roles and responsibilities) Public vs. private law (both domains) Identification, authentication, authorization (electronic authentication not reguilated) Data protection Sharing data bet. government agencies Retention (archiving) of data Agreement on a Single Window When multiple organisations involved in establishment  formal agreement to define roles and responsibilities Public vs. private law Single Windows systems are used in B2G and G2G relationships  domain of public law and public policy, e.g. fiscal policy  when determining the law applicable to single window and resolution of disputes arising from it, the difference between public and private law should be borne in mind Identification, authentication, authorization There are many practices and laws relating to authentication in a paper environment. Electronic authentication is not normally regulated expressly by law, concepts are evolving  ”Identity Management” Agreements relating to transnational or regional single window systems should define common procedures observing international developments. In the absence of international agreements, national laws prevail OECD Recommendation on Electronic Authentication and OECD Guidance on Electronic Authentication, June 2007

Liability issues (determine responsibilities) Competition law (against abuse of dominant position) Electronic and paper document equivalence (admissibility issues, UNCITRAL instruments) Intellectual property rights Settlement of disputes (arbitration or litigation) Competition law Antitrust concerns, e.g. abuse of dominant position, who can use the system, if private, and on what conditions Protectionism, e.g. discrimination on the basis of nationality  cfr. GATT obligations Electronic documents equivalent to paper documents (with signatures) Are electronic documents (records) equivalent of paper documents?  also admissible as evidence in courts? International models: 1) UNCITRAL Model Law on Electronic Commerce 1996 2) UN Convention on the Use of Electronic Communications in International Contracts (2005) 3) UNCITRAL Model Law on Electronic Signatures (2001) Can you really substitute a paper contract by electronic communications?  if no, amend the law Can you conclude an arbitration agreement electronically? 1) Can you fulfil administrative formalities through electronic records? customs formalities, taxation, accounting 2) Legislation on e-government often separate from commercial legislation except e-signatures Cfr. i2010 eGovernment Action Plan in the EU Intellectual property rights Who has property rights to information in the database? Outsourcing of system software development  maintenance of ”ownership”, warranties of non-infringement of 3rd party software Settlement of disputes Contractual disputes between participants arbitration or litigation Disputes between governmental organisations or between governments and companies litigation Disputes between organizations of different countries  arbitration

Possible common Single Window model Standardized Data Set based on WCO Data Model, UNTDED & UNeDocs Core Components Sweden SW Netherlands SW Macedonia SW Finland SW Romania SW Bulgaria SW International Standards Turkey SW Spain SW This can be a possible combination of SWs in SEE. Greece SW Ireland SW UK SW SW = Single Window Provider

www.unece.org/trade & www.unece.org/cefact Thanks! mario.apostolov@unece.org www.unece.org/trade & www.unece.org/cefact