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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.
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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
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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
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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.
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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
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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
-
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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
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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
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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
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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.
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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
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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
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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
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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
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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
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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)
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Thank you for your kind attention
Dr. Somnuk Keretho
Institute for IT InnovationKasetsart University
38