Findings from an ESCAP study

on Mongoliatrade and transit procedure

Kerri Ahn

April. 2017.

Workshop on Cross-Border Trade Facilitation and Single Window

Implementation in the Northeast Asia

Ⅰ. Introduction of ESCAP Study

Ⅱ. Steps and Goal of ESCAP Study

Ⅲ. Overview of Recommendation

Ⅳ. Next Step

Contents

The study is conducted as part of implementing an ESCAP project:

Project Title: Capacity building towards cross-border paperless trade for trade facilitation in Mongolia and East and Northeast Asia and Central Asia

Purpose: To enhance capacity of member governments, in particular those from the Northeast Asia in developing and implementing appropriate trade facilitation measures, particularly Single Window and paperless trading systems, to remove regulatory and procedural barriers to trade across borders.

Project Period: May 2016 - April 2018

Introduction of ESCAP Study

Step of ESCAP Study

The project will be implemented through;

a. In-depth study on analysis of current international trade costs and procedures by the UNNExT Business Process Analysis (BPA) methodology

b. National review meeting to develop practical cooperation and facilitation measures, including on paperless trade, and build their capacity in properly implementing them

c. Make a Recommendation and Subregional workshop

d. A small-scale pilot on cross-border paperless trade data or document exchange between Mongolia and participating East and Northeast Asian countries for trade facilitation

e. Sharing of lessons learned from the subregional pilot project with other subregions, in particular in Central Asia.

The Study is to conduct:

A comprehensive analytical study on international trade costs and procedures of Mongolia in connection with those of neighboring countries should be conducted to identify bottlenecks, impediments and opportunities for subregional cooperation.

Lead by ESCAP TIID (Trade, Investment and Innovation Division)

A team of international and national consultants

- 1 international consultant

- 4 national consultant (Mongolia, China, korea, and RF)

Step of ESCAP Study

IT Environment : Real-Time data, Timeliness, Accuracy, Cross-Checking

Visibility, Interoperability of Cross-Border Trade

Enhance trade and transit procedure between neighboring countries

Exchanging e-Document between neighboring countries

• Paperless Trade

• Facilitation

• Safety and Reliability

SustainabilityInteroperability

Visibility

• Tracking and Tracing

of consignments and

transport means

• Flexibility• Common Interface• Supports other standards

Global Trade

Goal of ESCAP Study

Trade Environment : Global Trade, Paperless Trade, Single Window

BPA Analysis of ESCAP Study

Issues from BPA Analysis

Challenges of Cross-border Transport (trade and transit)

Long transportation time (15 ~ 20 days)

High cost on transit and transport

(CH : 2,000, MG : 4,000 ~ 8,000, RF : 2,000 ~ 3000, USD)

Takes long times to receive information (2 weeks)

Manually entering the received data by Fax

Not easy handling due to heterogeneous data format

Difficult to make paper form per trading partner

Needs to develop the unified and standard message format

BPA Analysis of ESCAP Study

Issues from BPA Analysis

The participant country (China, Mongolia, RF and Korea) already have their information system at some domain especially Customs and transport.

However, when they are exchanging information,

they use paper document among 3 countries

by email, fax, or manual handling way.

They want to receive pre-arrival information before arrival from other neighboring countries.

Therefore, it is possible to improve the trade efficiencythrough electronic exchange of information among the participating countries.

ESCAP Study – BPA Product

Overview of Cross-Border trade process

Categorization of trade and transit business processes

Overview of Cross-Border trade process

Export Cargo Tracking Informationsd

Consignor Government Domestic Carrier Tally(Inspection)Cross-Border Carrier ConsigneeTerminal/Station/Port

1 : General/Cargo Declaration()

2 : Shipping Request()

3 : Domestric Transport()

4 : Carry-In()

5 : Loading()

6 : Tally()

7 : Departure()

-Departure Schedule Information

-Carrier Information

- Shipping and C argo Information

-Q urantine Process Information

-A dditional Documents Information

-Cargo Movement Information

-Cargo Status Information

-Transporter Informations

-CY/ICD Imports/Exports Information

-Loading/Unloading Company Information

-Carrier Information - Departure of Transport Means Information

-Shipment Information

-Cargo Inspection Information

Sequence of General/C argo Declaration

may be changing

before/after 4. C arry -In()

Next Step

Issues

Confirm issues and challenges in procedures and documentation, in particular in information/data exchange

Decide what kind of information (document) exchange among the participating countries is feasible and beneficial

Identify participating organization of each country to phase 2, which is implementing a pilot project

Develop a plan, including defining role and tasks of the participating entities