1. Going for Seamless Paperless Trade
UNECE
UN/CEFACT
Going for Seamless Paperless Trade
Ki Hyun OH
Managing Director/KTNET

2. Contents 1. Who is KTNET? 2. KTNET Services 3. Global Projects
UNECE
UN/CEFACT
Contents
1. Who is KTNET?
2. KTNET Services
3. Global Projects
4. Vision

3. UNECE
UN/CEFACT
1. Who is KTNET?

4. Profile of KTNET Establishment
established on December 1991 by the initiatives from MOCIE
Employees
About 200 employees
Capital
70Million (USD)
Revenue (’04)
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.

5. UNECE
UN/CEFACT
2. KTNET Services

6. KTNET Service Overview
Business Scope
Services
Service Type
Mega
portal
VAN
Web(portal)
Commerce
- Export/Import License
- Marine Cargo Insurance
- Export Insurance
- Application for ((Issue) Letter of
Guarantee
- C/O, P/L
C/S
eTFTM
Trade Finance
- L/C Advice
- Local L/C
- Remittance
C/S
eTFTM
CTradeWorld
eCustoms
Customs Declaration
Manifest Consolidation System
Duty drawback
C/S
eCFTM
eLogistics
- Shipping Request & Order
- Bill of Lading Advice
- Marine Cargo Insurance Policy
C/S
eLFTM

7. 2-1. Commerce and Trade Finance
UNECE
UN/CEFACT
2-1. Commerce and Trade Finance

8. KTNET 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)
KTNET
Insurance companies(6)
Foreign banks
In Korea(23)
Industrial Associations(18)
Korean Chamber of Commerce and Industry(2)
Korea Export Insurance Corporation(1)

9. L/C Opening/Advice
1. BUSINESS CONTENT : L/C open, Opening Charge Notice, L/C advice, Advising Charge Notice
2. BUSINESS FLOW
① ADV700
(L/C Advice)
① APP700
(L/C Application)
SWIFT
② FINBIL
(charge advice)
② Nego
L/C PRESENTATION
IMPORTER
OPENING BANK
FOREIGN
NOTICE BANK
EXPORTER

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
⑦ Nego/settlement
② L/C open
⑥ Nego/ settlement
Opening Bank
③ L/C advice
Negotiating Bank
⑧ Nego/settlement
① Offer sending
④ VATBIL issue
⑤ LOCRCT issue
Exporter
Manufacturer

11. Letter of Guarantee MFCS KTNET
1. BUSINESS CONTENT : L/G Application, L/G Sending, L/G Issuing inquiry & Confirmation, Letter
of Guarantee, Cargo Exit
2. BUSINESS FLOW
Bank L/G issuing inquiry and confirmation
‘ Bank L/G Issue
(LOGUAR/LOGADV)
FORWARDER
KTNET
MFCS
BANK
Cargo Delivery Order
(GODAPP) 
EDI*NET
 L/G Application
(APPLOG)
Bank L/G Issue
(LOGUAR)
Exit
Cargo Delivery Order & bank issuing D/O agreement yes or no confirmation taking out
IMPORTER
WAREHOUSE

12. choice of document handling (on - offline)
Certificate of Origin
e-C/O Scenario
Import Dec.
Customs
Customs
Bank
KCCI
Import Doc.(e-C/O, INV)
e-C/O
e-C/O, Inv, P/L
TDA for Customs
CO APP
TDA
e-C/O, Inv, P/L
e-C/O
DVCS
Exporter
Overseas Hub
e-C/O, Inv, P/L
e-Trade Platform
e-C/O, Inv, P/L
Importer
print
out
choice of document handling (on - offline)
e-C/O, Inv, P/L by paper handling
Import Process
TDA : Trusted Document Authority
DVCS : Data Validate Certificate System
Export Process
Paper Process

13. UNECE
UN/CEFACT
2-2. e Customs

14. Network Service Provider
KTNET Networking
As of June 2005
Trading Firms
(16,000)
Bonded Warehouse
(1,176)
Forwarder
- Sea(1966)
- Air (1278)
Bank
(20)
Customs Broker
(722)
KTNET
ARINC
Bonded Transportation
(308)
SITA
Network Service Provider
Tallying Firms
(22)
Global Networks
Shipping Companies
(574)
Air Lines
(53)
US Customs
ASEM
PAA
*OGA: Other Government Agencies
OGA
(120)

15. e-Customs Service
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 1994.
Followed by ‘Import Clearance’ in 1996 and by ‘Automated Duty Drawback’ in 1997 and reached close to 100% Paperless Customs Procedures.
Traders
Shipper/Airline
Forwarder
Organization
eCustoms
Bank/Insurance
Transport
Customs Service

16. UNECE
UN/CEFACT
2-3. e-Logistics

17. e-Logistics Service
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.
INFORMATION
INFORMATION
Airlines
KTNET
Customs House
Arrival & Departure
Traders
Transport
Forwarder
Warehouse
Load
Shipper
Export
Import

18. e-LogisFrameTM Service
eLFTM transmits e-documents such as ;
Shipping Company
Airline
FFM/FWB
Master Manifest Transmission
Korea Customs Service
Master Manifest Transmission
Manifest Acceptance
Internal business of Customs
Suspicious Cargo Selectivity
Arrival Notice
Paperless Nego
ARINC
Trader
Freight Forwarder
House Manifest Transmission
D/O, L/G
L/G Information
Confirmation for shipment of Export cargo
House Manifest Transmission
eLogisFrameTM
MFCSTM
Cargo Information Inquiry
Pre-arrival Customs Clearance
Bank
Manifest Entry Agent
Work order list for Cargo allocation
Unloading Report
Expected Check List
Expected Carry-into information
Bonded Transportation List
Customs Broker
* D/O : Delivery Order
* L/G : Letter of Guarantee
Stevedore
Warehouse
Tallying Firm
Trucking Company

19. Sharing Cargo Data- Suggestion for Int’l Cooperation
Connecting Korea’s 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
Airliner
Forwarder
MFCS
Korea Customs
Shipping company
Foreign cargo management system
Foreign Customs
Bonded transporter
Bonded warehouse
Information
Sharing

20. Global Visibility service
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
P/O
Issue
P/O
Accept
Goods
Issue
Pick Up
Shipment
B/L
Issues
Transport
Transfer
Import
Arrival,
Customs-
Release
Inland
Cartage
Delivery
Invoice
Goods
Receipt
Account
Payable
End to End, Real & Near Time
Shipper
Goods Issues
Goods Receipt
Consignee
Global Visibility
Supplier/
Factory
DC/Buyer
Integrated &
Centralized
Pick Up
Connection
Delivery
Trucker
Export clearance
Import clearance
Trucker
Build up
Forwarder
Departure
Arrival
Break down
Forwarder
Terminal
Airlines
Terminal
Carrier

21. Global Visibility Service
Business Case of Visibility in service
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
SCM:Production, Inventory
Commercial Invoice
SCM:Delivery, Shipment
[HP Singapore]
[HP GLOBAL]
[HP Korea]
Visibility Monitor
Visibility Monitor
ATHENA
Commercial Invoice
VISIBILITY in KTNET
Import Clearance
Cargo in & out of W/H
Transportation Status
[Customs Broker]
[Bonded Warehouse]
[Inland Transportation]

22. 3. Global Projects - PAA - ASEM - GSCM
UNECE
UN/CEFACT
3. Global Projects
- PAA
- ASEM
- GSCM

23. Domestic Paperless Trade
PAA Members and Business Scope
9 members ; KTNET (Korea), CIECC (China), Tradelink (Hong Kong), TEDMEV (Macau),
Trade-Van (Chinese Taipei), TEDI (Japan), CrimsonLogic (Singapore),
DagangNet (Malaysia), CAT (Thailand)
Asian Paperless Trade
Domestic Paperless Trade
Trader
Chinese Taipei
e-MP
Carrier
Manufacturer
Customs
China
Korea
Customs Broker
260,000 Customers
KTNET
Japan
Macau
Forwarder
Trucker
Authority
Hong Kong
Malaysia
Warehouse
Bank
Insurance
Singapore

24. PAA Performance Secure Cross Border Transaction Service
Technical Standard
PAA Club Agreement
As Is: B2B & B2G e-Doc’s, Visibility Service, etc..
To Be: e-B/L, e-Nego, e-Payment
Interconnection Standard (Interoperability)
e-Document Standard
Security (Public Key Infrastructure)
Background for legal issues
Multilateral Agreement

25. Introduction of ASEM Beginning
Approved by ASEM members at the 1st ASEM Conference on e-Commerce(2001)
Trade Volume with Korea
Objectives
(US$3,976million)
(US$12,425million)
Facilitate International Trade between Asia and Europe
Public-Private Joint Efforts
e-B2G Doc’s as well as e-B2B
Seamless Paperless Trade process by e-B/L, e-Nego and e-Payment
ASEM
Paperless Trade
Network
(US$56,658million)
(US$6,798million)
Source : 2004, KITA

26. ASEAL-A Booster to ASEM Project

27. Introduction of GSCM Object
- Building up Public SCM platform for Korean SME’s
Background
Big corp.
Private
SCM
A Supplier1
To upgrade private companies’ competence
A Buyer
A Buyer 2
GSCM-Hub
To support investment on overseas manufacturing facilities
A local factory
A overseas
factory
To support SME’s IT-based business activities
Market Place
A Supplier 4
A Supplier 3
To increase business flexibility by corresponding to global market changes
Company
A Supplier 2
Domestic
Global

28. UNECE
UN/CEFACT
4. Vision

29. Korean Single Window - e-Trade Platform
Financial
Settlement
Bank
Marketing
Credit Card
KFTC
License/Certificate
Insurance
eMarketPlace
Credit Evaluation Company
Insurance Company
Insurance Company
Global e-Trade Hub
Trading Company
(Including SME)
e-Trade Platform
(KTNET)
e-Trade
Single Window
Global Networking
Certified
Certificate
Authority
Customs
Service
National Logistics Single Window
Standardization
Agency
Document
Standard

30. Seamless Paperless Trade
Legal
Documents
 Bill of Lading
Administrative(B2G) Documents
Certification of Origin
Export License
Acceptance of e-Doc’s by Customs
Other administrative Doc.
Private Documents
I/V, P/L, Delivery Schedule, DELJIT, P/O, Payment Notice, Shipping
Order, and other private doc.

31. Requisite for Paperless Trade
Embodiment of Global paperless Trade
Embodiment of International paperless Trade
Local Mission
International Mission
Local
Promotion
International
Promotion
Public-Private Co-Work
International Cooperation
By PP partnership
Related Laws/Systems/Process Enhancement
Conventions/Agreements
for the Effectiveness of Paperless Trade
Standardization & Guidelines
Standardization

32. UNECE
UN/CEFACT
Thank you!