UNNExT Workshops on Trade Facilitation - UN ESCAP BPA... · UNNExT Workshop on Trade Facilitation and Paperless Systems for Agrifood Products, 4-6 May 2015, Almaty. sk @ Page §3

UNNExT Workshops on Trade Facilitation

Almaty, Kazakhstan 4-6 May 2015

UNNExT Workshop on Paperless Trade Facilitation for Small and Medium-Sized Entreprises

Somnuk Keretho, PhDDirector, Institute for IT Innovation..........

Kasetsart University, [email protected]

Business Process Analysis (BPA) and Business Process Analysis (BPA) and

Single Window for Trade FacilitationSingle Window for Trade Facilitation

UNNExT Workshops on Trade Facilitation4-6 May 2015

Almaty, Kazakhstan

Page § 3UNNExT Workshop on Trade Facilitation and Paperless Systems for Agrifood Products, 4-6 May 2015, Almaty. sk @

Speaker - Somnuk Keretho, PhD

Somnuk Keretho is an assistant professor of Computer Engineering Department, and the founding Director of Institute for IT Innovation (INOVA), a research and development institute of Kasetsart University, Thailand, specializing in ICT-enabled innovation, trade facilitation and e-logistics initiatives including National Single Window strategic planning and implementation, enterprise architecture for e-government and e-business, business process analysis and improvement, data harmonization and modeling, ICT-related standards and interoperability, e-transaction related laws, and process-oriented quality software engineering.

He has led several ICT strategic projects at organizational, national and regional levels. For the past nine years, he has assisted Ministry of Information and Communication Technology, National Economic and Social Development Board, Ministry of Transport, Port Authority of Thailand, and Ministry of Agriculture in architecting “Thailand Single-Window e-Logistics” related projects including its National Single Window strategy, implementation plans, interoperability and standards, harmonization and simplification of trade and transport-related documents and procedures, automatic electronic-gate systems development for the Bangkok Port and the Leamchabang Sea Port, and related software development projects.

Several of those projects are being aligned with some regional and international collaborations, in which Dr. Somnuk has actively engaged with those related to trade facilitation, single window and paperless trading initiatives through UNESCAP, UNECE, APEC, ASEAN and GMS. He has played several roles in catalyzing the creation of and actively contributing to the United Nations Network of Experts for Paperless Trade in Asia and the Pacific (http://unnext.unescap.org), and providing several technical supports to the APEC Paperless Trading and ASEAN Single Window Initiatives. He is the main author of the UNNExT Business Process Analysis Guide, the UNNExT Data Harmonization Guide and the UNNExT Guide for Single Window Planning and Implementation as jointly published by UNECE and UNESCAP.


Objectives of this session

§To introduce the role of BPA (including business process modelling techniques) and explainhow to conduct a BPA project for analyzing

the “as-is” international trade procedures, and proposing “to-be” improvement measures.

[based on “UNNExT Business Process Analysis Guideto Simplify Trade Procedures,” UNESCAP & UNECE, 2012].

§To discuss some BPA case studies for agrifood trade facilitation improvementincluding recommendations towards the implementation of Single Window/

Paperless Trade Environment.


Topics of this session

§What/Why?: Business Process Analysis for TF

§Graphical Notations: Unified Modeling Language (UML)

§Three(3) Phases for conducting a BPA project

§Case Examples: Thailand & Cambodia

§BPA Group Exercises

§Summary & Conclusions


What is a Business Process?

§A Business Process is a collection of related and structured activities or tasks that produce a specific service or product.

§Examples

– Procedures (including document transactions) of importing processed fruits to Kazakhstan from Kyrgyzstan

– Export Customs Declaration and Clearance Procedures at the Border Point

– Applying & Issuing Process for a Certificate of Origin(e.g. as needed to import goods to Azerbaijan)

– Applying & Issuing Process for a Phyto-sanitary Certificate


What is…

§…a Business Process Analysis (BPA)?

A modelling and analysis of business processes for understanding the current situations and

proposing recommendations for improvement.

§Examples

– Documenting some existing core processes of an organization in delivering some services to its customers

– Describing a “Standard Procedure,” with some exceptional cases

– Identifying quantitative indicators related to a specified process, e.g. no. of documents, no. of steps, and time/cost of each step

– Analysis of bottlenecks or redundancies in procedures & documentation

– Providing recommendations for process simplification or process automation.


Why conduct a Business Process Analysis?

Business Process Analysis is a practical study o to understand attributes of business processes,

and their relationships

Who involved

Proceduresand Documents

required

Related Rulesand Regulations

Some quantitative

indicators


What are benefits of Business Process Analysis?


BPA, the first important step, towardsPaperless Trade and Single Window Development

§BPA is the first technical step in preparing for trade facilitation measures including recommendations on how to implement paperless trade and SW environment.

§Since it should provide

– Inventory of processes, documents, data, parties, rules & regulations governing those processes.

– Description of the processes

– Specifications for harmonizing data and development of electronic documents

– Specifications to develop software for the automation of procedures

– A basis for Business Models for the operation of SW


Data Model and Digital Documents

Data Analysis and Simplification

Document Simplification

Business Process Analysis and Simplification

Develop electronic documents

Simplify paper documents

From Paper to Paperless Trade: A Stepwise Approach

Analyse information in the documents

Understand and simplify business processes


Trade Facilitation Improvement Movement of goods in international trade – involving at least 3 kinds of flows

Seller(Exporter)

Buyer(Importer)Physical Goods

Payment

Information/Documents

Customs Department Dept of Agriculture

Ship Agents Transport-Operators

Terminal-OperatorsCarriers

Banks

Information/Documents (upto 300 document types*)

Freight Forwarders

Cargo Insurance

TradersExporters

Importers Traders

Economic Operators

Food and Drug Administration (FDA)

Chamber of Commerce

Our ImprovementOpportunities

TradeFacilitation

Improvement-

Efficiency in procedures &

documenthandlings

Other regulatory agencies

Customs Borkers Dept of Fisheries

36 regulatroy agencies, 10 business sectors*,

e.g. importers, exporters, banks, F/F, Customs Brokers, Insurance companies, Terminal Operators, Sea Carriers, Airlines, Trucks, etc.

* Refering to “Thailand Case”

AirlinesTrucksPort Authority


UN/CEFACT Buy-Ship-Pay Modelfor International Trade


Documents related to Exportation of RiceDocuments related to Exportation of Rice(from purchase order until the cargo container leaving the sea p(from purchase order until the cargo container leaving the sea port) ort)

21. Master Sea Cargo Manifest(17)

22. House Sea Cargo Manifest (37)

23. Export Declaration (114)

24. Good Transition Control List (27)

25. Application for Permission to Export Rice (KP. 2) (24)

26. Sales Report (KP 3) (21)

27. Application for the Collection of the Permit for the Export of Rice (A. 3) (35)

28. Permit for the Export of Rice (A. 4) (35)

29. Application for Certificate of Standards of Product (MS. 13/1) (44)

30. Certificate of Analysis (17)

31. Certificate of Product Standards (MS. 24/1) (45)

32. Certificate of Fumigation (21)

33. Application for Phytosanitary Certificate (PQ. 9) (29)

34. Phytosanitary Certificate (33)

35. Application for Certificate of Origin (42)

36. Certificate of Origin (38)

1. Proforma Invoice (35)

2. Purchase Order (39)

3. Commercial Invoice (51)

4. Application for Letter of Credit (24)

5. Letter of Credit (32)

6. Packing List (25)

7. Cargo Insurance Application Form (20)

8. Cover Note (23)

9. Insurance Policy (24)

10. Booking Request Form – Border Crossing (25)

11. Booking Confirmation – Border Crossing (30)

12. Booking Request Form – Inland Transport (16)

13. Booking Confirmation – Inland Transport (18)

14. Bill of Lading (42)

15. Empty Container Movement Request (TKT 305) (20)

16. Request for Port Entry (TKT 308.2) (27)

17. Equipment Interchange Report (EIR) (24)

18. Container Loading List (28)

19. Container List Message (32)

20. Outward Container List (34)* Number in parenthesis is

the no. of data elements

36 Documents involving 15 parties, and more than 1,140 data elements to be filled in

Thai Case Example

Regulatory Docs

Transport Docs

Buy/Pay Docs


Business Process Analysis Guide - in Exporting Jasmine Rice from Thailand Exporting Jasmine Rice from Thailand --

1. Buy - Conclude sales contract and trade terms2. Obtain export permit3. Arrange transport4. Arrange the inspection and fumigation 5. Obtain cargo insurance6. Provide customs declaration 7. Collect empty container(s) from yard

8. Stuff container(s)9. Transfer to port of departure10. Clear goods through customs 11. Handle container at terminal and stow on vessel12. Prepare documents required by importer13. Verify the accuracy/authenticity of exported cargo14. Pay - Claim payment of goods

1 2 3 4 5 6 7 8 9 10 11 12 13 14

Day

Process

20

10

0

5

15

3 days

2 days

3 days

4 days

1 day

1

3

5

6 7 8 9

12

14

2

2 days4

2 days 10

1 day

131 day

16

11

Time-Procedure Chart

16 days are required for these procedures

and documents transaction

About 7-8 days neededfor document preparationbefore cargo movement.

Another 7-8 days neededduring cargo movement.

unnext.unescap.org

Trade Facilitation is about

Enhancing

National Trade Competitiveness

by improving import/export/transit/transshipment procedures and

document/information handlings among government agencies,

trade-related business entities and logistics service providers

for all major modes of transportation of the country

(sea, air, land and railway transport)Page § 16


Trade Facilitation – reducing cost, maximizing efficiency & also better regulations –

§Trade facilitation* looks at how procedures and controls governing the movement of goods across national borders can be improved to reduce associated cost burdens and maximise efficiency while safeguarding legitimate regulatory objectives.

Examples of regulatory activity in international trade

– Fiscal: Collection of customs duties, excise duties and other indirect taxes; payment mechanisms

– Safety and security: Security and anti smuggling controls; dangerous goods; vehicle checks; immigration and visa formalities

– Environment and health: Phytosanitary, veterinary and hygiene controls; health and safety measures; CITES controls; ships’ waste

– Consumer protection: Product testing; labelling; conformity checks with marketing standards (e.g. fruit and vegetables)

– Trade policy: Administration of quota restrictions; export refunds* http://en.wikipedia.org/wiki/Trade_facilitation


Trade Facilitation is about “Process Reform.”

Trade Facilitation

is about

• Business Process Analysis (Understanding the “as-is” process,

its bottlenecks/its root causes)

• Business Process Redesign(Designing the better “to-be” process)

• Implementing and Adopting the Change


Business Process Modeling

What

§ A technique for documenting a business process and its attributes

– Activities that come in a specific order and decision points

– Actors who perform those activities

– Defined inputs and outputs of each activity

– Criteria for entering and exiting the business process

– Relationships among actors

– Information flow

– Associated rules and regulations

– Quantitative indicators such as number of steps as well as time and cost required to complete a particular business process

Why

§ To establish a common understanding about a business process that is shared by all relevant parties

§ To communicate better all aspects of a business process


Unified Modeling Language (UML)

§A set of standard graphical notations for documenting a business process and business requirements

http://en.wikipedia.org/wiki/Unified_Modeling_Language

n Is widely recognized and used among practitioners in business community as well as those in IT and software industry.

n Allows business domain experts to communicate procedural and documentary requirements with IT implementation or software development team.


UML Diagrams for BPA

Use Case Diagrams§ A frame of reference illustrating a high

level business process and its associated actors

Activity Diagrams§ A detailed elaboration of a use case

diagram

§ A graphical representation of a business process and its attributes

– Activities that come in a specific order and decision points

– Actors who perform those activities

– Defined inputs and outputs of each activity

– Criteria for entering and exiting the business process

– Relationships among actors

– Information flow

Buy - Conclude sales contract and

trade termsExporter or

RepresentativeImporter

Quote priceand term of trade

Confirm theintent to purchase

Proforma Invoice

Purchase Order

Not acceptable

Acceptable

Cancel

Prepare the shipmentof goods

Exporter orRepresentative

Importer


UML Notations for Use Case Diagram

Notation Description

Actor

o Represents a role in a particular business process

o Is labeled with a role name

Use Case

o Represents a business process

o Is labeled with a descriptive verb phrase

Relationship Association

o Link actors with business processes that they participate in

Subject Boundary

o Represents a process area

o Includes the name of a subject boundary on top

Boundary

Actor/Role

Use case


Exercise – Read the Use Case Diagram(Exporting frozen shrimpts from Thailand)


UML Notations for Activity Diagram


Initial State

o Represents the beginning of a set of activities

Final Activity State

o Indicates the completion of the business process

Final Flow State

o Indicates that further activities cannot be pursued

Transition Line

o Indicates a sequential flow of actions and information in an activity diagram

Fork (Splitting of Control)

o Visualizes a set of parallel or concurrent flow of actions

Join (Synchronization of Control)

o Indicates the end of parallel or concurrent flow of activities

Object

o Represents a document or information that flows from one activity to another activity (labeled with the name of a document)


Swimlane

o Is used to break up individual actions to individuals/ agencies that are responsible for executing their actions

o Is labeled with the name of the responsible individual or agency

Activity

o Represents a non-decomposable piece of behavior

o Is labeled with a name that 1) begins with a verb and ends with a noun; and 2) is short yet contain enough information for readers to comprehend

Decision

o Represents the point where a decision has to be made given specific conditions

o Attached with labels addressing the condition on each transition line that comes out of an activities and connects to a decision point or vice versa

ProcessParticipant 1

Process Participant 2

Process Participant n


Exercise – Read the Activity Diagram


Three Phases in Conducting a BPA Project

I. Scope setting – Specify a scope of processes to be analyzed

– e.g. import and/or export processes of a specified product, through a certain mode of transportation (trucks, trains, ships or airplanes)

II. Data collection and process documentation – Define and document a sequence of steps in actual practices and their attributes

– Who involved (stakeholders/actors)

– Procedures and documents required (input to/output from)

– Related rules and regulation

III. Process analysis – Locate bottlenecks, examine what causes them, and develop measurable and quantitative process indicators (e.g. the number of steps, time and costs required to fulfill those

processes)

Recommendation development – Determine how to eliminate each bottleneck and prioritize improvement actions


Three Phases in Conducting a BPA Project

Project Sponsor

Project Manager/Project Leader

ProcessAnalysts

Process Participants/Business Domain Experts

1) Define aproject scope

2) Develop a detailed plan and secure resources

3) Acquire background information

4) Conductinterviews and document

captured data

5) Analyze the “as-is”process and identify

bottlenecks

6) Develop andpropose

recommendations

Phase I

Phase II

Phase III

4 important roles in conducting a BPA project.1.Project Sponsors2.Project Manager3.Process Analyst(s)4.Domain Experts


Outputs of a BPA project

Step Deliverable

Step 1: Define project scope

o Use case diagram illustrating business domain, process areas, process participants, and key business processes

Step 2: Develop a detailed plan and secure resources

o Detailed project plan including an estimation of human resources required, schedules, and software supported tools

o A list of potential interviewees and their contact information

Step 3: Acquire background information

o A folder of background information about the business processes under the investigation

o A list of guiding questions for the interview

Step4: Conduct interview and document captured data

o A set of activity diagrams illustrating activities that come in a specific order and decision points, actors who perform those activities, defined inputs and outputs of each activity, criteria for entering and exiting the business process, relationships among actors, and information flow

o A set of business process descriptions that describes activity diagram and lists all related rules and regulations

o Activity diagram illustrating integrated processes in the business domain

o Time-Procedure chart displaying time required to complete each business process

Step 5: Analyze the “as-is”processes and identify bottlenecks

o A set of observations of the as-is business processes that have the potential for improvement

Step 6: Develop and propose recommendations

o Final report with recommendations which may include diagrams of “to-be” business processes

Ph

ase

IP

has

e II

Ph

ase

III


Some tips/techniques for business process analysis and improvement recommendations

To identify any bottlenecks, redundancies, and non-value-added activities in procedural and documentary requirements of the “as-is” business processes, and proposing improvement opportunities by the following tips:

1. Merge some procedures or documents

2. Eliminate redundant procedures and unnecessary documentary requirements

3. Automate procedures and promote the sharing of electronic trade and transport data among relevant stakeholders

4. Modify related laws and regulations to facilitate the operation of the newly designed business processes

5. Reform the regulatory-related organizational structures, etc.


Example: Identify Bottlenecks and Redundancies

Department ofForeign Trade

Office of Commodity Standards

CustomsExporter or Representative

Prepare documentsfor submitting to

Customs at port of exit

Permit for the Exportof Rice (A.4) with actual

quantity exported

Certificate of Standardsof Products (MS. 24) with actual quantity exported

Record the actualquantity exportedand released date

Acknowledgethe providedinformation

Prepare documentsto declare the actual

amount exported

Permit for the Export of Rice (A.4) with actual

quantity exported


Evidence of Sales(Purchase Order or

Sales Contract)


Example of redundant procedural and documentary requirements


Department of Foreign Trade

Verify the accuracy/authenticity

of exported cargoExporter or

Representative

Customs


Thailand’s Export Process of Jasmine Rice



CustomsExporter or Representative

Prepare documentsfor submitting to

Customs at port of exit

Record the actualquantity exportedand released date


Permit for the Export of Rice (A.4) with actual

quantity exported


Evidence of Sales(Purchase Order or

Sales Contract)


Department ofForeign Trade

Department of Foreign Trade

Verify the accuracy/authenticity

of exported cargoExporter or

Representative

Customs


Example: Remove Redundancies

Thailand’s Export Process of Jasmine Rice

A BPA Project - Case StudyThailand Sea Importation of Standardized Cargoes


Phase I: Scope Setting

Example:

§ Regulatory and business requirements related to the operation and management of port before, upon, and after the import and export of containerized ordinary cargoes through all modes of transportations (road, rail, air, and sea)

– Carrier scheduling for port use

– Cargo handling

§ Import

– Starting point: when a carrier enters port

– Ending point: when cargo is picked up and transferred to an importer

§ Export

– Starting point: when cargo arrives port

– Ending point: when cargo is on board and ready to be transferred to the country of importer

•Airport (Chiengmai)•Sea Port (Chiengsan)•Dry Port (Maesai)

•Dry Port (Mukdahan)•Dry Port (Nongkai)

•Train Station •Dry Port

•ICD (Ladkrabang)•Suvannabhumi Airport•Sea Port (Unithai)•Etc. •Sea Port

(Lamchabang)

- Site VisitedNo. of Interviews = 45

- Phone & email interviewsNo. of Interviews = 16


Phase I: Scope SettingExample: Importation by Sea

• Vessel Agent• Maritime Pilot’s Station• Marine Department• Port Operator• Customs• Other Government Agencies• Importer or Representative• Terminal Operator• Haulage/Truck• Bank

Example: Capturing the Stakeholders involved in importation by sea

Draw a use case diagram toillustrate the business domainwith process areas andhigh-level business processesas well as stakeholders associated with each of them

Vessel Agent

Port Operator

Marine Department

Terminal Operator

Haulage/Truck

Maritime Pilot’s Station

Customs

Importeror Representative

Other GovernmentAgencies

Business Processes

Actor

Enter a seaport

Report cargomanifest

Unload cargo

Clear goodsthrough customs

Arrange the transport for thepick-up of goods

Handle cargo atthe terminal

Prepare toenter a seaport

Prepare documentsfor import

Pay for goodsBank


Phase II: Data Collection and Process DocumentationExample: Prepare to Enter a Seaport Process

For each process, draw anactivity diagram that describesactivities and associateddocumentary requirements

Vessel Agent

Port Operator

Marine Department

Maritime Pilot’s Station

Prepare to enter a seaport

Maritime Pilot’s StationMarine Department Port OperatorVessel Agent

Preparedocuments

Request forMaritime Pilotage

GeneralDeclaration

Application forVessel Entering

Port Area

Prepare theallocation of equipments

Assign pilot officerReceive

Receive

Receive


Phase II: Data Collection and Process DocumentationExample: Activity Diagram of Prepare to Enter a Seaport Process


Preparedocuments


GeneralDeclaration


Port Area



Receive

Receive

Sequence of actions carried out to achievea specific goal

Swimlane shows a boundary of activitiesto be carried out by a responsible actor.

Document associatedwith each action

Initial State shows the starting point for the sequence of activities.

Final State shows where the sequence of activities reaches its end.


Phase III-1: Process AnalysisExample: Prepare to Enter a Seaport Process (Existing Process)


Preparedocuments


GeneralDeclaration


Port Area



Receive

Receive

Duplicated data submission: Three documents with almost identical data are handed-in to different receivers.

Problems :- Duplicated Information - High Cost and Time for sending and receiving documents - Data Inconsistency


Phase III-2: Recommendation DevelopmentExample: Prepare to Enter a Seaport Process


Preparedocuments


GeneralDeclaration


Port Area



Receive

Receive

Process simplification

Single submission(electronic means)

Proposed Recommendations :- Remove unnecessary data requirements- Harmonize and standardize data requirements - Automate “prepare to enter a seaport” process

Page § 39UNNExT Workshop on Trade Facilitation and Paperless Systems for Agrifood Products, 4-6 May 2015, Almaty. sk @ 39

Phase III-2: Recommendation DevelopmentExample: Prepare to Enter a Seaport Process (Proposed New Process)

Vessel Agents send electronic documents to Marine Dept through NSW Exchange

MaritimePilot’s Station

Port OperatorMarine Dept.

Stakeholders :1) Vessel2) Value Added Service3) NSW Exchange4) Marine Dept.5) Port Operator6) Maritime Pilot’s Station

Vessel Agent

Prepare

Update Status

Update Log

Update Log

Update Log

Application forVessel EnteringThe Port Area

Pilot Request Form

General Declaration

NSW ExchangeValue-addedService Provider

Marine Dept.


Phase III-2: Recommendation DevelopmentExample: Time – Procedure Chart of Importation by Sea

9 Main processes1. Prepare documents for import2. Prepare to enter a seaport (Vessel) 3. Enter a seaport (Vessel) 4. Report cargo manifest5. Unload cargo6. Clear goods through customs 7. Arrange the transport for the pick-up of goods8. Handle cargo at the terminal 9. Pay for goods

1 2 3 4 5 6 7 8 9

Days

Process

20

10

0

5

151 days

1 day

3

8

6

1 day1 day4

7

2 day

1

10 day

9

4 day

1

2 3 4 5 6

7

8

9

20 days

12 days2

2 day1 day

5

As-Is

To-Be

A BPA Case StudyCambodia BPA


Cambodia BPA (since 2010)

§ The analysis of the Cambodia BPA was initiated by H.E. Dr. Hang Chuon Naron, Permanent Vice Chairman of the Supreme National Economic Council (SNEC) in mid 2010 following the holding of a National Workshop on Advancing Trade Facilitation under a thematic “Business Process Analysis for Trade Facilitation: Operationalising the Rectangular Strategy for Growth” on 1-2 June 2010 in Phnom Penh.


Cambodia BPA (since 2010)

§ The workshop was organized jointly by the General Department of Customs and Excise, the Ministry of Commerce, and SNEC and supported by the UNESCAP and UNECE.

§ The workshop laid the foundation for ESCAP’s support, a tailored Business Process Analysis (BPA) ‘training of analysts’ course followed by application of BPA techniques to four key import and export products identified under Cambodia’s economic diversification strategy.

– BPA on rice, cashew, silk and pharmaceuticals


A Case of Rice Export prior to the launch of the Rice Export National Policy in August 2010

§ To export rice below 200 ton, the Private Sector needs to write a letter to ask for permission from MoC and GDCE (General Department of Customs and Excise). However, even though the MoC agrees, the Private Sector still needs to negotiate with the GDCE. This takes time and the buyer contract time is limited i.e. from 3-4 weeks only.

§ Exporting more than 200 ton of rice is even more difficult and expensive. For example: the Private Sector (PS) needs to go to Green Trade (GT) which has the monopoly to export rice; ask them to write a letter to MoC and then the MoC writes another letter to GDCE to ask for facilitation on this export operation. At each stage, the concerned authorities can create difficulties, delay unless the PS agrees to pay informal fees. Expenses occurred are as follows: (i) 50$ for CO, 0.1 % for export tax, (official); (ii) 170$ for export permit from GDCE; (iii) GDCE charges 55$ per container for checking and so does the CAMCONTROL; (iv) Ministry of Agriculture, Forestry and Fisheries (MAFF) charge 24$ to check a container; (v) When loading merchandises into the container, the MoC charge 40$ per container.


A Case of Rice Export prior to the launch of the Rice Export National Policy in August 2010 (cont.)

§Moreover, to transport rice from PS to Sihanouk Ville Port costs 40$ per ton which include 5$ charged by the trucking company.

§The exporter needs to top 50$ on the price of rice (for example buying the farmer 375$/ton and selling to buyer 425$) to be able to cover the export and transport charges and keep 10$/ton of gross margin.

§The PS also raises that the PS cannot load the rice into container directly from the millers in various places. They have to bring the rice to PP and load into the container. This cost double price.

§These are barriers that Cambodia cannot export rice in large amount.


Cambodia BPA recommendations for improvement

§ One-Stop Shop: a special service for processing the export and import of agricultural products. This office is in charge of issuing all the necessary permits and ensure: (i) transparent fee, and (2) time limit in 5 working days.

§ Reduce informal fees: To be competitive with neighboring markets which are market leaders, Cambodia needs to reduce the sales prices of rice by limiting unofficial fees for both export and import procedures.

§ Export of rice: ensure free and fair competition by removing monopolies such as Green Trade. Thus enabling companies to export freely.

§ Intervention in transport and transfer of merchandises: The MoC can influence other relevant entities such as dry ports to lower the cost for a container from 20 USD to 3-5 USD. Or else the Royal Government of Cambodia (RGC) can provide a location for transferring merchandises without charging any fee. The RGC should establish or provide land for establishing of transferring center for huge amount of merchandises so that Cambodia can be a big rice supplier in Asia. There should be a website to promote rice in Cambodia or have an association of exporters of rice like in Thailand.


Cambodia BPA: as-is rice export process(documents & agencies to be visited)


Actors & Main Procedures for Cambodia Rice Export


Cost involved in Cambodia rice export


Time involved for Cambodia rice export


Trade facilitation measures in Cambodia

Cambodia BPAs have identified bottlenecks, and proposed several specific improvement measures.

§Action 1: Tackling Capacity building issues, e.g. capacity building for exporting firms on export procedures, and capacity building on market access conditions.

§Action 2: Mobilizing of private sector rice actors

§Action 3: Enhancing trade facilitation, reducing informal fees and eliminating illegal check points

§Action 4: Identifying key legal and institutional gaps


Trade facilitation measures in Cambodia

Cambodia BPAs provide strategic input which becomes the National Rice Export Policy endorsed by

the Cambodia Government

§Measure 1: MEF/General Department of Customs and Excise (GDCE), MAFF

and MoC/General Department of CAMCONTROL and relevant agencies shall: develop a specific strategy to identify and streamline export processing procedures including inspection, documentation requirements, fees and time required to process export applications; define clear and publicly transparent division of responsibilities among export regulating ministries/agencies; consider milled rice export as a top priority in order to reduce to a minimum informal payments and time required to export by extending “special treatment” similar to the garment sector.

§Measure 2: Implement a single-stop service for export processing: MEF/GDCE,

MAFF and MoC/CAMCONTROL and relevant agencies shall set up a Single Stop Service for export processing and issuing certificates for SPS, fumigation, grading

and quality, quantity and weight, and customs declaration.


Conclusions of Cambodia Rice BPA

§ The rice sector holds a huge potential economic growth for Cambodia. If rice export could reach 3 million tons, the total export value would amount to USD 2.1 billion (approximately 20% of GDP).

§ According to rice BPA study, high trade facilitation and internal transportation costs, in particular, are cited as having a significant impact on smaller rice traders’ ability to effectively export.

§ The BPA on rice export was instrumental in highlighting actual uncompetitive trade facilitation practices as well as identifying helpful suggestions in improving trade facilitation procedures and processes at the national level.

§ Overall positive effects of the Rice Export Policy: There has been some improvement in the export process after the launching of the new policy of paddy production and rice export. Many government agencies along the institutional value chain to support the implementation of the rice export policy. There are visible improvements in reduction of government-related transaction costs related to Customs, Camcontrol, and Commerce.


Lessons learned from Implementing BPA

§Get Buy-in (political support & ownership) from the highest-level policy decision makers

§Secure adequate resources

§Clear roles and responsibilities of the project stakeholders

§Choose the right Champion, e.g. with passion & strong political connections

§Start small, and then evolve

§Several rounds with key stakeholders for consultation, verification and validation of the findings & recommendations

§Profit from experience

§ Invest in training


Summary of this session

§ It is strongly recommended for the country (and also for each government department) to conduct detailed end-to-end BPA study (e.g. across different regulatory agencies & business stakeholders) for the national strategic products (or for its internal process within the department) since it is a significant assessment tool for analyzing the as-is and proposing specific trade facilitation measures for the country (or for the department).

§Graphical notations based on a modeling language, UML, is introduced.

§Step-by-step BPA project management is proposed.


Conducting a BPA Project in 3 Phases

1. Defining Scope of and Planning a BPA Project

2. Capturing and Modelling the As-Is Process

3. Analyzing Findings of the BPA andProposing Recommendations for Improvement(Proposing the To-Be Process)


Group Exercise 1- Defining the scope of a BPA project -

§Splitting into small groups

§Discussing the scope of a BPA project (that you think is very useful

to be carried on even after this workshop), e.g.

– Identifying one strategic export (or import) product of your country

– Identifying a major port or a major mode of transport (with high level/volume of export activities), e.g.

through a cross-border dry port, a major sea port, or a major air port.

– Identifying some complicated procedures, e.g. customs clearance with some certain permits and/or special inspection (involving with not just customs but also other regulatory agencies) (covering all Buy/Ship/Pay related procedures)

§ If time permits, preparing a presentation on the selected scope of a BPA project, and the reasons why this scope is selected.


Group Exercise 1 (cont)- Defining the scope of a BPA project -

§If time permits, please draw the scope of your BPA project with a Use Case Diagram

– Identifying the stakeholders/agencies [Actors]

– Identifying key business processes [Use Cases]

– Identifying their relationships [Which actors are associated with which Use Cases]


Group Exercise 2- Conduct Business Process Modeling -

Working within your small group

§Draw at least one activity diagram, and collect related quantitative indicators (numbers of steps, number of physical visits, time and cost needed for each of those steps, etc.) for capturing the detailed procedures and documentation requirements for a selected Use Case.

– Data collection through the Internet, or from any accessible reference materials

– Data collection from interviewing with domain experts

– Visualizing of those procedures with an activity diagram

– Trying to, at least, verbally describe that activity diagram,if time permitted, describe it in writing (process description).


Group Exercise 3- Identify bottlenecks and recommend improvement measures -

Discuss in your small group, and be prepared to present your findings

§Identify and analyze one or two bottlenecks in your activity diagram(s)

§Identify improvement opportunities

§Propose your improvement recommendations and new “to-be” Activity Diagram for improvement(check also for political, technical, and financial

possibility, …..)


Summary: Beyond a BPA Project

Timeline

1. Inception Phase

- Thinking about the direction(to do or not do sth)

- Preparation

- TOR development(scoping the objectives)

- Overall Plan

2. BPA Project Phase- Detailed Plan

- Data Collection- Capture/Documentthe process in details

-Provide recommendations

- Submit the final reports

3. Post-Project Phase- Push the recommendationsto implementation

Today DateOfficial

Project KickoffDate

Project endDate


WBS 5 – Administrative/Project Tracking Work-Monthly progress report

WBS 1 – Refine the scope

of the project- Develop the

detailed plan

Project KickoffDate

Project endDate

WBS 2– Collect information- Capture & Document

the process

An Example of BPA Project Plan

Month 1 Month 2 Month 4Month 3

WBS 3– Analyze and identify bottlenecks- Provide recommendation for

improvementWBS 4– Wrap-up &

submit thefinal report

Several iterations of verification & validation

(refinement)


Expected Outputs of the BPA project

Step Deliverables

Step 1: Define project scope

o Use case diagram illustrating business domain, process areas, process participants, and key business processes

Step 2: Develop a detailed plan and secure resources

o Detailed project plan including an estimation of human resources required, schedules, and software supported tools

o A list of potential interviewees and their contact information

Step 3: Acquire background information

o A folder of background information about the business processes under the investigation

o A list of guiding questions for the interview

Step4: Conduct interview and document captured data

o A set of activity diagrams illustrating activities that come in a specific order and decision points, actors who perform those activities, defined inputs and outputs of each activity, criteria for entering and exiting the business process, relationships among actors, and information flow

o A set of business process descriptions that describes activity diagram and lists all related rules and regulations

o Activity diagram illustrating integrated processes in the business domain

o Time-Procedure chart displaying time required to complete each business process

Step 5: Analyze the “as-is”processes and identify bottlenecks

o A set of observations of the as-is business processes that have the potential for improvement

Step 6: Develop and propose recommendations

o Final report with recommendations which may include diagrams of “to-be” business processes

WB

S I

WB

S I

IW

BS

III


Key Roles of a BPA project

§Project Sponsor:…..

§Project Manager:…..

§Process Analysts:……

§Project Duration: …… months

§Stakeholders/Information Resource Persons: Selected representatives from Stakeholders/Agencies,…

Somnuk Keretho, PhDDirector, Institute for IT Innovation..........

Kasetsart University, [email protected]

Q & AQ & A

Thank You.Thank You.

Wish you a good SW journey.

UNNExT Workshop onTrade Facilitation and Paperless Systems for Agrifood Products

4-6 May 2015Almaty, Kazakhstan