PAN ASIAN E-COMMERCE ALLIANCE - Best Practice of Public and Private Partnership
Digital Secure Cross-Border Trade
Alicia Say Working Group Chair/Head of Secretariat
Pan Asian E-Commerce Alliance (PAA) Trade-Van Information Services Co., Chinese Taipei
November, 2019
Single Window, Asian Connection
PAA Scenario Established in 2000 to promote and provide secure, trusted, reliable and value-adding IT infrastructure and facilities to enhance seamless trade globally
Pan Asian e-Commerce Alliance Charter
• To enable secure and reliable transmission of trade
and logistics documents.
• To allow inter-connection of network services to provide e-Commerce transaction application services for the business community.
• To create a Pan-Asian portal to enable global B2B connection and communication.
First Regional Alliance of 12 Customs and Trade Service Providers with real show cases of cross border
paperless trading
PAA Milestone
Our Value Proposition • Help trading community compete through secure digital cross
border trading services – Connect directly to trading partners and logistic providers
• Reduce administrative costs, purchasing costs, courier cost
• Speed up transactions
• Potential for “better” operations/inventory management
• Potential for higher sales volumes/revenues
– Streamline end to end border regulatory procedures
– Backed by comprehensive legal framework ✦ Accept electronic documents
✦ Accept digital signatures
✦ Dispute resolution process
e.g. electronic CO issued and signed by exporting issuing agency legally bound in importing economy
Case Study
Electronic Certificate of Origin Exchange Project A public and private partnership model
APEC Pathfinder Project
• ECO pathfinder is the most active pathfinder project under APEC ECSG (Electronic Commerce Steering Group)
• A ECO project (an example of Public Private Partnership) between MOTIE (public sector), KITA and
KTNET (private sector) of Korea and BOFT, MOF (public
sector), and Trade-Van (private sector) of Taiwan was
initiated.
• ECO exchange model between Korea and Taiwan has
been adopted by APEC member economies as a best practice for cross border paperless trading
Repository
KTNET
Repository
KCCI
1CO APPORG
2ECO CERTIF
Exporter 1CO APP
2ECO (for view)
Customs
Importer
3 Send Inv, P/L, Paper CO to Importer
Korea Taiwan Customs Broker
4 Pass the paper CO to Customs Broker 5 Import Declaration
6Supplement Paper CO
6Supplement Paper CO
National Treasury Agency
Verify authenticity of
paper CO
Trade-Van
5 Import Declaration
Paper CO Scenario [Korea ► Taiwan]
Exporter
Repository
KTNET
Repository
Trade-Van 1CO APP
2ECO (for view)
3Inv, P/L
(specify ECO Number)
3 Inv, P/L, Attach ECO from repository
3Inv, P/L, ECO Importer
1CO APPORG 2ECO CERTIF
KCCI Customs
6Import Declaration ECO confirmed by importer
6Import Declaration
Customs Broker
4 Sign to confirm ECO Assign Customs Broker
5 Generate Import Declaration Data
ECO Scenario [Korea ► Taiwan] ECO Enquiry on KCCI Website
With ID and Password
Korea Taiwan
National Treasury Agency
n Be the leader in trade facilitation among other countries (APEC, WCO, EU)
n Guarantee the authenticity of the cross border documents, reduce percentage of fake CO
n Reduce effort in paper CO verification n Speed up customs clearance process n Better service to international traders n Increase nation’s competitiveness
Benefits to Government
Exporter n Save time and costs (courier express US$23) in applying
and sending over paper CO n No need to get a stamp/seal on the CO from Taipei
Trade Representative Office in Korea à save tremendous time (in average 3 days) and costs (US$20 per stamp, transportation cost US$20-40)
n Transmit cross border documents in a secure online environment
n Better service to their buyers Importer n Speed up customs clearance process n Expedite cargo pick up à saving warehouse cost n Guarantee of authentic CO
Benefits to Exporters/Importers
� Findings and Recommendation from APEC PSU�
(Policy Support Unit) Reducing trade transaction costs in APEC
through electronic commerce: a case study of Electronic Certificate of Origin
Survey Findings
For the Korean Exporter
• It saves (me and cost in not having to get the CO authen(cated at the Chinese Taipei Mission in Korea; and • avoids the cost and delay of sending the paper CO by mail or express to the importer or the importer’s customs broker.
• The es(mates show a total saving of US$ 217 per shipment (container) and 2 days (me saving.
Survey Findings
For the Taiwanese Importer/ ImporAng Customs Broker • It saves (me and cost in not having to send the CO to the Customs Broker and in person to Customs. • The es(mates show a total saving of US$ 205 per shipment (container) and 3 days (me saving.
Business Loss Avoidance • In addi(on, taking into considera(on the “business loss” avoidance per shipment with the new Global e-‐CO process, the saving is es(mated to reach US$ 274 for the Exporter and US$ 397 for the importer.
Copyright © 2010 APEC Secretariat. Copyright © 2011 APEC Secretariat.
# Projection Description
Assumptions Projected APEC Trade Transaction Costs
Reduction % 1 APEC wide e-CO
adoption. For most economies assume 25% of shipments require CO. Exceptions are Indonesia 60%, Thailand 20%, and Chinese Taipei less than 10%.
6.79%
2 Only Korea and Chinese Taipei adopt e-CO.
For Korea assume 25% of shipments require CO, and for Chinese Taipei less than 10%. 0.18%
3 More “e-Advanced” Economies adopt e-CO.
Assume Australia; Brunei Darussalam; Canada; Hong Kong, China; Indonesia; China; Malaysia; New Zealand; Philippines; Singapore; Thailand; US at the same ratios specified in (1) above.
2.80%
4 China + e-Advanced economies.
China + economies in (3) at the ratios specified in (1) above. 5.93%
5 Sensitivity 1 - Low APEC wide e-CO adoption.
Assume e-CO is required for 5% of shipments instead of the ratios specified in (1) above. 1.30%
6 Sensitivity 2 – High APEC wide e-CO adoption.
Assume e-CO is required for 40% of shipments instead of the ratios specified in (1) above. 10.40%
Extrapolation based on different levels of e-CO adoption
Why Blockchain
Trade-Van CBBP
InterCommerce CBBP
CAT CBBP
PT EDI OTB/CBBP
DagangNet Blockchain
GETs OTB
KTNET Blockchain
Kale Blockchain
Cross Chain Interoperability
CBBP: Cross Border Blockchain Platform
PAA Blockchain Initiative
18
Sender� Receiver�
Cross Border Blockchain
Cloud Platform
Sign� Verify�
edoc�
Cloud Storage�
Sign� Verify� edoc�
eINV eCO eDe
cl eSPS
Blockchain Application in Trade
19
Import Documents Verification
Value Proposition: Guaranteed sources of data Digitalization of C2 clearance
Exporter/ Manufacturer
Customs/ Trade
Service Provider
Importer
Customs
Validated Export
Declaration
Overseas Taiwan
Cross Border Blockchain Platform
Note: C2 = customs clearance with paper document check
Cross Border Application for Customs Clearance
20
• To improve the Taiwan-Singapore FTA procedures with blockchain platform for document digitization and process streamliming
Step 1. Goods eligible
for FTA
Step 2. Issue paper
CO
Step 3. Transmit paper CO
Step 4. Declare customs
Step 5. Goods release
Current Practices Businesses to confirm if their goods are eligible for FTA
Sg exporter issues self-certificated CO
Send the paper CO to Tw importer
Tw importer passes the paper CO to customs broker; cb submits to customs
Customs officer verifies paper CO manually and clear customs eCO
Utilizing blockchain solution to streamline Step 2~4
Taiwan-Singapore FTA Blockchain POC
System Launch
21
Cross Border System Testing
User Recruitment & Training
Blockchain Interoperability Requirement Analysis
Aug
POC Project Report
Sep
Oct
Nov Dec Jan
2019 Feb Mar
Full Scale Implementation
Dec
2020
TW
Customs Importer Customs Broker
PAA member
Exporter�
SG
PAA member
POC Project Timeline
n PAA, the first regional alliance of service providers facilitating paperless trade, customs and logistics
n PAA shows the complementarity and collaboration between the public and private sectors
n PAA is serving 350,000 organizations, representing almost all active trading enterprises in the Asian market
n Pan Asia Exchange operated by PAA is a reliable B2B e-Marketplace to promote global trade
n Welcome to visit us at www.paa.net n Follow us on LinkedIn
Conclusion
THANK YOU