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    Thailand Single-Window e-Logistics

    Dr. Somnuk KerethoDirector, Institute for IT Innovation, Kasetsart University

    Advisor to Ministry of Transport, andMinister of Information and Communications Technology

    for Thailand Sin le Window e-Lo istics Pro ect

    APEC-UN Joint Capacity Building Symposium

    26-28 May 2008, Seoul

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    Outline

    A National Strate ic A enda

    Trade Facilitation Enhancement with-

    Needs and Requirements of Single Window

    Step-by-Step Path to Single Window Lessons Learned & Recommendations

    APEC-UN Joint Capacity Building Symposium on Paperless Trading, 26-28 May 2008, Seoul 2

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    The State of Thailand LogisticsTrade logistics cost, efficiency, responsiveness and security need improvement.

    This is ourthreat,

    but alsoour

    APEC-UN Joint Capacity Building Symposium on Paperless Trading, 26-28 May 2008, Seoul

    Note: Logistics cost/GDP in Thailand becomes 19% in 2007. opportunity

    to improve.3

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    Logistics Development Master Plan (2007 -2011)endorsed by the Cabinet on Feb 2007

    Having World-class National Logistics Environmentsto become a Trade Hub for IndochinaVision

    Objectives1.Reducing logistics cost (Cost Efficiency), increase business

    Responsiveness, Reliabilityand Security

    2.Create Value-Addedon logistics industry and related business

    Enhance Build

    StrategicAgenda

    ImproveLogisticsefficiencyin industry

    Improveefficiencyin transport

    andlo istics

    uLogisticsServiceProvidersBusiness

    Trade

    Facilitation

    ResourcesinLogistics

    To reduce the trade lo istics cost

    54321

    Action Plan to develop dataexchange platform among

    different government

    Single Window e-Logisticsfrom 19% (2007) to 16% (2011)(comparing to GDP)

    A National Logistics Committee chaired byagenc es an us ness

    related to import/exportprocedures

    the Prime Minister, including Economic Ministries,

    & Industry Associations spearheads and leadsthe development of this Logistics master plan.

    4

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    Strategic Agenda - 4Trade Facilitation Enhancement*

    Government & Private Stakeholderse-Lo istics National Sub-committee is formulated Ministry of Finance, Ministry of Commerce, Ministry of Agriculture,

    Ministry of Science and Technology, Ministry of ICT,

    Ministry of Transport, Ministry of Health, NESDB**, ,

    Bankers Association of Thailand

    Key Strategies,

    Window Exchange related to import/export trade and transportprocedures and document requirements Promoting electronic transaction with e-document exchange and

    , KPI - Define common standard data set

    KPI - Improve laws and regulations to enable to

    KPI Interoperability (common open protocols)

    Goal: reducing numbers of days for exporting

    APEC-UN Joint Capacity Building Symposium on Paperless Trading, 26-28 May 2008, Seoul 5

    ** NESDB = National Economic and Social Development Board* as mandated by the Cabinet

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    Trading Across BordersProcedures and documents necessary to import and export a standardized cargo of goods

    Singapore

    Thailand

    APEC-UN Joint Capacity Building Symposium on Paperless Trading, 26-28 May 2008, Seoul

    By World Bankwww.doingbusiness.org Dec 2007

    6

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    Outline

    A National Strate ic A enda

    Trade Facilitation Enhancement with-

    Needs and Requirements of Single Window

    Step-by-Step Path to Single Window Lessons Learned & Recommendations

    APEC-UN Joint Capacity Building Symposium on Paperless Trading, 26-28 May 2008, Seoul 7

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    Benchmarking our country efficiencyon trading across borders

    Some indicators help our policy makers to understand

    Average Time for Export and Import in Days

    A world bank

    procedural and documentsrequirements

    for importing and exporting

    in 178 countries(from the purchase order,till the ship left its nearest port).

    APEC-UN Joint Capacity Building Symposium on Paperless Trading, 26-28 May 2008, Seoul

    . . ,

    (Trading Across Borders)

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    Economic Impactsbecause of the dela on tradin across borders

    Each additional day of delay(e.g. because oftrade logistics procedures) reduces trade

    by at least 1%

    Ref:Trading on Time,Simeon Djankov, Caroline Freund,. , .

    -related procedures and required documents is

    -

    Ref:Quantitative Assessment of the Benefits of

    APEC-UN Joint Capacity Building Symposium on Paperless Trading, 26-28 May 2008, Seoul

    Trade Facilitation, OECD (2003).

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    Frozen Shrimps Export from Thailand15 Parties involved

    30 documents & 788 data elements needed to be filled in- ,

    1. Proforma Invoice

    2. Purchase Order

    16. Export Declaration

    17. Goods Transition Control List.

    4. Test Report5. Shipping Particulars6. Booking Confirmation

    . eques or or n ry .

    19. Equipment Interchange Receipt

    20. Container Loading List

    7. Inland Haulage Booking Form8. Inland Haulage Booking Confirmation9. Commercial Invoice

    .

    22. Outward Container List23. Bill of Lading

    . 11. Application Form for Import, Export,

    Pass Animals/Animal Remains

    Through Thailand (R. 1/1)

    25. Health Certificate

    26. Request for C/O

    27. Certificate of Ori in. .13. Insurance Request Form14. Cover Note15. Insurance Policy

    28. Halal Certificate 2

    29. Application for IrrecoverableDocumentary Letter of Credit

    APEC-UN Joint Capacity Building Symposium on Paperless Trading, 26-28 May 2008, Seoul

    30. Letter o Cre it

    10

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    Current Situation

    New Generation of EDI(ebXML MS/XML Messages/Digital Singnatures)

    - Declaration- Invoice- Packing List

    Paperless Customs Declarationand Clearance

    Customs DeptServer

    About 80%

    Web-Based Application(Certificate of Origin)

    Browser (Request for C/O)

    physical

    papers not

    Exporter

    Browser (Request for Health Cert.)

    papers yet.

    Web-Based Application(Health Certificate)

    Dept of Livestock Development

    ICT islands

    Web-Based ApplicationHealth Certificate

    Many Paper Documents

    APEC-UN Joint Capacity Building Symposium on Paperless Trading, 26-28 May 2008, Seoul 11

    Dept of Fisheriesaper an ng an . or e - ase pp cat on

    (Bill of Lading)

    Carriers or other logistics service providers

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    Outline

    A National Strate ic A enda

    Trade Facilitation Enhancement with

    -

    Needs and Requirements of Single Window

    Scope and Architecture of Thailand SWeL

    Step-by-Step Path to Single Window

    Lessons Learned & Recommendations

    APEC-UN Joint Capacity Building Symposium on Paperless Trading, 26-28 May 2008, Seoul 12

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    Needs to expand the scope ofthe National Sin le Window as defined under

    In 2007,

    ASEAN Single Window Agreement

    Banking&

    Customs Departmenthas provided

    Pa erless CustomsInsuranceIndustry Environment

    with e-Export,- -

    NationalSingle

    e-Containerbased on

    -

    & XML Messages,

    (e-Declaration,

    e-Container,

    e-Manifest)

    an ge ngOther Government Agencies

    and other partiesto interoperateelectronically.

    13

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    Technical Interoperabilitybased on ebXML Messaging Protocol, Digital Signature and Security Features

    An ebXML Pilot Project since 2003 - replacing 2 dump terminals connecting with 2 leased lines to 2 differentfreight forwarders by only one Internet line without any data elements re-keyed.

    1. Exporter send Invoice,Packing Listto CustomsBroker

    1. Exporter send Invoice,Packing Listto CustomsBroker

    Backend IS Project Participants:Minebea, TKK, CTI, I-Nova/KU, Customs Dept

    completed the test and

    back-end integration

    . us oms ro er rece veinput from Exporter,then process anddevelop to CustomsDeclaration CUSDEC

    . us oms ro er rece veinput from Exporter,then process anddevelop to CustomsDeclaration CUSDEC

    Invoice,Packing List

    w n mon s.

    IBM AS 400

    Internet

    and send to CustomsDept (in 2007 with

    XML messages)

    and send to CustomsDept (in 2007 with

    XML messages)

    eMessagingServices 2.0

    (with Collaborative Protocol Agreementand Digital Signatures)

    Minebea Co. Ltd.(an electronicmanufacturer)

    2

    ac en TKK, and CTICompanies- 2 different

    Freight Forwarders(Customs Brokers)

    (two different ICTsystems)

    Open Source SW (ebXML MS v2.0 LIGHTHOUSE)developed by I-Nova/KU, and also training and SW developmentassistance provided.

    ebXMLMessagingServices 2.0 2007 Dr. Somnuk Keretho 14

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    EDI/ebXML systems in Thailand [1998-2007] are transforming

    GatewayOperators

    -

    CustomsDeclaration

    CAT ebMS

    e

    Sea Port

    TradeSiam

    Air Port

    NetbayKrungthai Bank,

    Thai Tanakarn, etc

    Carriers

    ebMSFreightForwarders

    Port AuthorityOf Thailand

    OtherGovAgencies

    ebMS

    Value-Added NetworksImporters-ExportersebMS = ebXML Messaging Services, an open protocol for secured technical interoperability. 15

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    National Single Windowits im lementation continuousl covers more a encies & more o erations/documents

    New Generation of EDI(ebXML/XMLMessages)

    Now, technical interoperability standard(e.g. based on ebXML MS) is needed, and

    Paperless Customs Declarationand Clearance

    Customs Deption

    common definitions of data elements, andsemantic data structures (common data models)among different documents required bydifferent organizations are required also.

    Web-Services (ebXML) ApplicationNational oniza

    Exporter

    (Certificate of Origin)

    Dept of Foreign TradeSingle Window

    aHar

    Goal - Single Window/e-DocumentsOne time submission for each data elementbut multiple usage for different purposes on

    different ICT platforms

    Web-Services (ebXML) Application(Health Certificate)

    Dept of Livestock Development

    Da

    -

    APEC-UN Joint Capacity Building Symposium on Paperless Trading, 26-28 May 2008, Seoul

    e - erv ces e pp cat on(Health Certificate)

    Dept of Fisheries

    -(e.g. Bill of Lading, and other documents)

    Carriers or other logistics service providers

    16

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    Outline

    A National Strate ic A enda

    Trade Facilitation Enhancement with

    -

    Needs and Requirements of Single Window

    Scope and Architecture of Thailand SWeL- -

    Lessons Learned & Recommendations

    APEC-UN Joint Capacity Building Symposium on Paperless Trading, 26-28 May 2008, Seoul 18

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    Evolution of Paperless Trading/Single Window

    Stage I (before 1998) - Manual Operations ace- o- ace paper- ase opera ons

    Stage II (1998-2006) - Customs EDI Services-

    Stage III (2006-2008) - Customs Paperless Services ebXML/XML/PKI Digital Signature (electronic papers only)

    Stage IV (2008-2009) - National Single Window (NSW) Customs Paperless Services, interconnection with

    er overnmen genc esexc ang ng e- ocumen s rougNSW with Customs, e.g. e-Permits, requesting forms, etc.

    Sta e V 2008-2015 - Data Exchan e with othercountries ASEAN Single Window (10 Southeast Asia Countries)

    APEC-UN Joint Capacity Building Symposium on Paperless Trading, 26-28 May 2008, Seoul

    -

    19

    APEC = Asia Pacific Economic Cooperation

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    Step by Step towardsPa erless Trade Sin le Window

    e-Single Window>> UN/CEFACT

    Rec 33 34 35

    6

    Cross Border Data

    Exchange

    5

    National Data Harmonization>> UNTDED, Standard Codes (e.g. LOCODE),

    e ocs, ,

    4

    WCO Data Set, UNeDocs

    Document Simplification & Standardization>> UNLK TF Toolkit and Form Re ositor

    3

    Process Simplification and Harmonization2

    Process Analysis

    trader and government, establishing e-Document Systems)

    1

    APEC-UN Joint Capacity Building Symposium on Paperless Trading, 26-28 May 2008, Seoul

    >> UMM: UN CEFACT Mo e ing Met o o ogy,

    WCO Time Release Study, WB Audit Methodology20

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    Benefits from Process Analysis & Simplification

    Understanding of our own current situations

    Benchmarking with oneself or other better practices

    Raising issues and priorities for further improvement Guiding IT Development for related government

    agencies and business sectors, and also

    National Single Window Development Providing an expectation or impact of the new

    process recommendations and its IT-supported

    systems Guiding elimination of duplicated data

    APEC-UN Joint Capacity Building Symposium on Paperless Trading, 26-28 May 2008, Seoul 21

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    Example of a Process AnalysisA Vessel Entering the Seaport (existing)

    Pilots Station Port OperatorVessel AgentMarine Dept.

    Process for Vessel Entering Seaport

    Prepare-

    Pilot

    InformationDocumentsare sent to3 Receiversmanually

    PilotAssignment

    ReceiveApplication forVessel Entering

    he Port Area

    Request Form

    ReceivePrepare

    Equipment

    GeneralDeclaration

    Problems :-

    APEC-UN Joint Capacity Building Symposium on Paperless Trading, 26-28 May 2008, Seoul

    - High Cost and Time for sending and receiving documents

    - Data Inconsistency

    22

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    Example of a Recommendation Development:Automation of Vessel Entering the Seaport Process

    (e.g. reducing the number of steps, or number of documents, establishing a systemthat supports e-document submission, and e-document exchange between agencies)

    Port

    Authority

    ebXMLGateway

    NationalSingle

    ebXMLGateway

    ebMS

    VesselAgent VAS Application

    (Value Added Service)

    Window

    (NSW)Marine

    Department,Ministry ofTransport

    GeneralDeclaration

    S stem

    ebXMLGateway

    ebXML

    Gateway

    PilotsStation

    Marine Dept.(back-end)

    Business to Government (B2G) One to Many

    APEC-UN Joint Capacity Building Symposium on Paperless Trading, 26-28 May 2008, Seoul

    Automatic e-Document Workflow

    National Single Window Exchange

    23

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    Time and Procedure Chartillustrating number of days and main procedures needed for exporting through trucks across a border

    9 main proceduresShi1. Buy (order)2. Paper preparation before import

    3. Paper work during the import12 da s with

    Transportation

    20

    5. Ship docking at the sea port6. Goods on the ship reporting7. Cargo Checking on board8. Cargo Clearance

    the recommended new procedures

    reducing from

    15

    .

    2 1

    10

    5

    1 1

    1

    3

    1

    1 2 3 4 5 6 7 8 90

    2 2

    APEC-UN Joint Capacity Building Symposium on Paperless Trading, 26-28 May 2008, Seoul

    Main Procedures

    24

    St b St t d

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    Step by Step towardsPaperless Trade Single Window

    e-Single Window>> UN/CEFACT

    Rec 33 34 35

    6

    Based on

    Cross Border Data

    Exchange

    5

    &

    Draft UN/CEFACT Rec 34

    - Steps for

    National Data Harmonization>> UNTDED, Standard Codes (e.g. LOCODE),

    e ocs, ,

    4

    WCO Data Set, UNeDocs

    Document Simplification & Standardization>> UNLK TF Toolkit and Form Re ositor

    3

    Process Simplification and Harmonization2

    Process Analysis

    trader and government, establishing e-Document Systems)

    1

    APEC-UN Joint Capacity Building Symposium on Paperless Trading, 26-28 May 2008, Seoul

    >> UMM: UN CEFACT Mo e ing Met o o ogy,

    WCO Time Release Study, WB Audit Methodology25

    h il d D t H i ti P j t

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    hailand Data Harmonization Projectbased on UNeDocs Data Modelin

    The exercise to capture, define, analyze, reconcile(and propose for its adoption & implementation)1. A set ofcommon data elements (names & meanings),

    called, National Standardized Data Set (SDS)

    2. its Data Models (Structures)3. e-Documents Formats(e.g. in XML Schema)

    among documents required by Customs Department Other Government Agencies Transport providers Trading Partners Ban s or payment o re ate tax, services, .. and Insurance-related agencies (for cargo insurances)

    such that National Single Window Facilities can enable services whereinformation is submitted once and used many times among manydifferent ICT platforms of those organizations.

    APEC-UN Joint Capacity Building Symposium on Paperless Trading, 26-28 May 2008, Seoul 26

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    Example - Data Harmonization of 3 documents

    32 Data

    Pilot Requirement

    Form

    Elements

    General

    VesselEnteringStandardization

    96 DataElement

    s

    A lication for

    (107 DataElements)

    Harmonization51 DataElement

    Vessel Enteringthe Port area

    s

    The user (ship/ship agent) of the new IT systemcan prepare 107 data elements electronically only one time

    instead of preparing 32+96+51=179 data elements

    APEC-UN Joint Capacity Building Symposium on Paperless Trading, 26-28 May 2008, Seoul 27

    and submitting paper-based documents three times.

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    Data Harmonization Results

    XML SchemaData ModelData Source

    Pilot Requirement

    General Declaration

    Application forVessel Entering the

    Port Area

    APEC-UN Joint Capacity Building Symposium on Paperless Trading, 26-28 May 2008, Seoul 28

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    Thailand DH Project - Results and Next Steps

    DH Phase 1 (2007) Data Harmonization of documents needed forimport/export procedures through 4 modes oftransportation

    ra ns, ruc s, s ps an a rp anes

    58 documents - 1,346 data elements are simplified & harmonized

    Results -> 212 data elements core com onents

    Phase 2 (2008 in progress) other documents required byovernments lo istics roviders and business*

    (including permits, licenses, payment, cargo insurance, etc.) other ~200 documents

    ,

    The number of harmonized data elements (core components, ..)?

    Adoption & Implementation (2008)

    MICT has granted about 7.5 million US$ for e-Documents ExchangeDevelo ment for 14 overnment a encies.

    APEC-UN Joint Capacity Building Symposium on Paperless Trading, 26-28 May 2008, Seoul

    * commissioned by Ministry of Transport

    ** commissioned by MICT with collaboration with Customs Dept

    29

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    as a part ofregional integration initiative

    APEC-UN Joint Capacity Building Symposium on Paperless Trading, 26-28 May 2008, SeoulUNESCAP-UNECE Seminar on Single Window and Data Harmonization in Central Asia, 5-7 May 2008, Baku 30

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    ASEAN Single Window Pilot ProjectPhili ines & Thailand e-Document Exchan e

    CAPhilippines Thailand

    TH NSWPH NSW

    Royal Thai

    ebMS Gateway ebMS GatewayBureau Of

    Customs

    Ministry of Finance

    Documents Exchanged

    1. ASEAN CEPT Form D

    2. Export Declaration Dept of Foreign Trade

    Ministry of Commerce

    APEC-UN Joint Capacity Building Symposium on Paperless Trading, 26-28 May 2008, Seoul

    =

    CEPT Form D = Preferential CO for Intra-ASEAN Trade31

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    APEC-UN Joint Capacity Building Symposium on Paperless Trading, 26-28 May 2008, Seoul 32

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    Outline

    A National Strate ic A enda

    Trade Facilitation Enhancement with

    - Needs and Requirements of Single Window

    Scope and Architecture of Thailand SWeL- -

    Lessons Learned & Recommendations

    APEC-UN Joint Capacity Building Symposium on Paperless Trading, 26-28 May 2008, Seoul 33

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    Recommendations for SW Paperless Trade

    A Comprehensive & Integrated Approach a ona - eve ra egy o a gn us ness an

    strategies, action plans and implementation be fully

    developed and endorsed by the Cabinet. National-level Committeescomprising of all related

    government agencies, and industry representativesa ro riatel formed with a ri ht combination and lon -termcommitment.

    Business Modelsneeded to be agreed, e.g.a s e us ness mo e

    How is it financed? (Public or private sectors, or PPP?)

    How will the SW be sustained over the coming year?

    Do the revenues generated cover operational costs or do

    APEC-UN Joint Capacity Building Symposium on Paperless Trading, 26-28 May 2008, Seoul

    ey ma e a pro

    34

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    Recommendations for SW Paperless Trade

    Scope and System Architecture established.

    Process Simplification should be continuously

    exercised. Technical Interoperability using

    o en and international standards be ado ted

    APEC-UN Joint Capacity Building Symposium on Paperless Trading, 26-28 May 2008, Seoul 35

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    Recommendations for SW Paperless Trade

    Data Harmonizationamong document/data requirements-

    (governments, business and logistics-related providers)

    be a very important exercise to enable datainteroperability, thereby realizing the Single WindowPaperless Trade Development.

    candidates to provide a way to harmonizeour datarequirements at the economy level as well as at the

    ,

    e.g. harmonizing the work of National Single Windows,ASEAN SW, and APEC SW Initiatives

    comp y ng w e ocs, ore omponen s rary, e c.

    APEC-UN Joint Capacity Building Symposium on Paperless Trading, 26-28 May 2008, Seoul

    36

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    Request to APEC-UN/CEFACT

    1. Closer collaboration between APEC, UN/CEFACT especially on

    WCO data models into a single data model

    (CBRDM Cross-border reference data model). Acce erating t e esta is ment o t e new UNeDocs Wor ase3.0 (which incorporates e-CERT/e-SPS data requirements, andother..) (TBG2, UN/CEFACT)

    3. Request active participation withAPEC (ECSG) Data Harmonization Project 2008- , ,

    APEC-UN Symposium on Data Harmonization for SingleWindow Paperless Trading, 8-9 Dec 2008, Bangkok

    APEC-UN Hand-on Technical Training on UNeDocs DataModeling, 10-12 Dec 2008, Bangkok(UNeDocs Application Guide, Proof-of-Concept e-Documents,

    APEC-UN Joint Capacity Building Symposium on Paperless Trading, 26-28 May 2008, Seoul

    and UNESCAP Process Analysis Handbook will be available)

    37

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    Thank you for your kind attention

    Dr. Somnuk Keretho

    Institute for IT InnovationKasetsart University

    [email protected]

    38


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