1. Thailand’s National Single Window Development
Somnuk Keretho, PhD Director, Institute for IT Innovation Kasetsart University, Bangkok
An integrated Trade Facilitation Strategy for Greece including Single Window July 2012, Athens, Greece 1

2. Thai Case
Logistics as the National Competitiveness Strategy recognized by the Government and Business Leaders in 2003.
Logistics Cost/GDP1
Thailand
~19%
Japan
~ 11%
USA
~ 9% EU
~ 7%
This is a threat, but also
an opportunity for improvement.
1 Ref: The Brooker Group
2 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 countries
Thailand logistics service is mostly in the beginning stage of development
There 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 Development
Brain storming in 2003
Thailand 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 Goods
Payment
Information/Documents
Information/Documents
Wholesalers
Traders
Post-Harvesters
Cargo Insurance
Farmers
Exporters
Banks
Traders
Consumers
Importers
Freight Forwarders
Customs
Other-Government-Agencies
Ship Agent
Transport-Operators
Terminal-Operator
Carriers

6. Thai Case Example
Documents 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 in
Proforma 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 Docs
Regulatory Docs
Transport 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 handling
Day
Process 20 10 5 15
3 days
2 days
4 days
1 day 1 3 6 7 8 9 12 14 2 4 13 16 11
Time-Procedure Chart
1. Buy - Conclude sales contract and trade terms
2. Obtain export permit
3. Arrange transport
4. Arrange the inspection and fumigation
5. Obtain cargo insurance
6. Provide customs declaration
7. Collect empty container(s) from yard
8. Stuff container(s)
9. Transfer to port of departure
10. Clear goods through customs
11. Handle container at terminal and stow on vessel
12. Prepare documents required by importer
13. Verify the accuracy/authenticity of exported cargo
14. 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 involved
14 big steps (123 small steps)
16 days needed (all together)
6 days for regulatory procedures
7 days for transport-related procedures
12 days for traders, banks and insurance procedures

9. Current Situation (2007) About 80% of required documents
- Declaration - Invoice - Packing List
New Generation of EDI
(ebXML MS/XML Messages/Digital Singnatures)
About 80% of required documents
are physical papers not electronic papers yet.
Separate
ICT islands
Paperless Customs Declaration
and Clearance
Customs Dept
Server
Exporter
Browser (Request for C/O)
Web-Based Application
(Certificate of Origin)
Dept of Foreign Trade
Browser (Request for Health Cert.)
except Shrimp (Request from Dept of Fisheries)
Web-Based Application (Health Certificate)
Dept of Livestock Development ha
Many Paper Documents
Web-Based Application (Health Certificate)
Dept of Fisheries
Paper 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 Days
National Single Window
Carriers & LSP
Exporter
And Importer
Government Agencies
~350 data items and no travel needed
Single entry process
Data Harmonization
One 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 Example
Now, technical interoperability standard
(e.g. based on ebXML MS) is needed, and
common definitions of data elements, and
semantic data structures (common data models)
among different documents required by
different organizations are required also.
Paperless Customs Declaration
and Clearance
Customs Dept
36 Regulatory Agencies
Exporter
National
Single Window
Web-Services (ebXML) Application
(Certificate of Origin)
Dept of Foreign Trade
Goal - Single Window/e-Documents One time submission for each data element but multiple usage for different purposes on different ICT platforms
Web-Services (ebXML) Application (Health Certificate)
Dept of Livestock Development
Web-Services (ebXML) Application (Health Certificate)
Dept of Fisheries
Web-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. 2
Importer/
Exporter
Carrier
Ship Agent,
Airlines Agent
Custom Broker/
Freight Forwarder
Bank and
Insurance
Other Logistics
Service Providers
Private Sector
&Transport Agencies
Other
Business Parties
VAS
Value-Added
Service
Providers
Services for Single
Window
Entry and
Business
Process Management 5 6
National
Single
Window
(NSW)
By Customs Department
e-Document
Exchange Hub
for Cross-boarder
Trade and Transport 1 3
Customs Dept
Dept. of
Foreign Trade
Disease Control
Fisheries
Port Authority
Of Thailand
Port/Airport
36 Government
and facilitating
Agencies
Other agencies
ebMS
VAS Gateway
Process Re-design & Data Harmonization
VAS Gateway
Process Re-design & Data Harmonization
VAS Gateway 7 7
ICT National Infrastructure and related IT Laws responsible by Ministry of ICT 4 12

13. Roles & Participants Electronic document Exchange Service
Document exchange between government agencies (G2G) via Government Information Network (GIN) supported by MICT
Data exchange between government and business sectors (G2B) via VAN/VAS providers
Data exchange between business sectors (B2B) via VAN/VAS providers
National and International Gateways
Integrate / link VAN/VAS (import, export and logistics)
National gateway for data exchange between Thailand and ASEAN Members
National gateway for data exchange between Thailand and other countries
Participants / Clients
40 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 Commitment
National Logistics Committee chaired by the Prime Minister
Minister of Finance, Minister of Industry, Ministry of Commerce,
Ministry of Transport, NESDB (National Economic and Social Development Board), ….
Executives from business sectors
Thailand National Single Window is one of the National Agendas
ASEAN Agreement to establish the ASEAN Single Window
ASEAN – 6 (2008)
ASEAN – 4 (2012)
Leading Agency
The Customs Department, Ministry of Finance
Business/Financial Model of National Single Window
Initial funding by the government (100%) supervised by the Customs
No transaction fee for data exchange among government and trade

15. Interagency Collaborative Platform
National Committees and Working Groups
National Logistics Committee of Thailand
National Sub-committee on Data Integration for Import, Export and Logistics
Steering Committee on National Single Window Development
Committee on Regulatory Framework and Quality Assurance of Thailand NSW
Inter-Agency Technical Working Group for National Single Window
Inter-Agency Legal Working Group
Committees and Working Groups (within each agency)
Business process analysis and reforms
A Lot of Workshops, Group discussion and consultations to simplify and streamline business process among government and business sectors
ASEAN Meetings and Working Bodies
AEC Council, AEM, AFM, ASEAN Customs Director-General, ….
ASEAN Single Window Steering Committee (ASW)
Technical Working Group for ASW
Legal & 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 sectors
Inter-Agency Legal Working Group enables relevant legal frameworks for paperless service among 35 government agencies
MOU among 36 organizations were signed for electronic document adoption (including representatives from business sectors)

17. Evolution of Thailand National Single Window

18. A Single Submission for Electronic Customs Declaration
Submission with Digital Signature
All 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 Rice
Problems :
- 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 Economic
Ministers (9 December 2005) and ASEAN Protocol for ASW signed by ASEAN Finance Ministers(5 April 2006)
ASW Pilot project
Exchange of ECO for ASEAN and ASEAN Customs Declaration Document
ASEAN engaged consulting firm to study the solution for the ASW pilot project
Malaysia-Thailand B2B Cross Border Initiative
Facilitation 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 Thailand
Thailand – Taiwan G2G pilot project Initiative
ECO (electronic certificate of origin) pilot project for trade facilitation
1st Joint Meeting in Taipei (December 2010)

24. Customs Clearance Impacts
Ref: Sinmahat K. “NSW in Thailand”, a presentation in Nepal, Feb 2011.

25. National Trade Improvement

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 Assessment
Customs Duty e-Payment (connecting with Banks)
Physical examination reduction
Online statistics reporting
VAT 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, Bangkok 27