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Single Window = Trade Facilitation
= Reducing Trade Cost= Increasing Govt Revenue
Regional Training Workshop on Trade Facilitation, Infrastructure & Trade Costs in ESCWA Region
8 –9 April 2013, Dubai
Jonathan Koh Director
Trade Facilitation Centre of ExcellenceCrimsonLogic Pte. Ltd.
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IntroductionIntroduction
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CrimsonLogic is a trusted partner to governments around the world.
• Design and run innovative and sustainable services for governments to serve their citizens more effectively and seamlessly.
• Work closely with our customers to enhance their e-services continually, to drive adoption and usage of these e-services.
Shareholders
International Enterprise Singapore(an statutory board of Ministry of Trade & Industry)
Civil Aviation Authority of Singapore
PSA Corporation
Singapore Telecoms
International Enterprise Singapore(an statutory board of Ministry of Trade & Industry)
Civil Aviation Authority of Singapore
PSA Corporation
Singapore Telecoms
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CrimsonLogic Trade Facilitation PlatformsCrimsonLogic Trade Facilitation Platforms
Free Zone
ManagementSystem
Single Electronic Window System
Strong Infrastructure and Security Management Policies for reliable service delivery
Strong Domain based software components
PortCommunity
System
CrimsonLogic Trade Facilitation
Platforms
CustomsManageme
ntSystem
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CrimsonLogic’s International Track RecordCrimsonLogic’s International Track Record
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What is Trade Facilitation?
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Trade Development StrategyTrade Development Strategy
Trade Facilitation should be part of an overall trade development strategy whose purpose is to develop and expand sustainable trade flows to support the country’s
economic development.
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WTO Definition - The simplification and harmonisation of international trade procedures
UN/CEFACT Definition - The simplification, standardisation and harmonisation of procedures and associated information flows required to move goods from seller to buyer and to make payment”
Principles of Trade Facilitation Simplification is the process of eliminating all unnecessary elements and duplications in formalities, process and procedures
Harmonisation is the alignment of national formalities, procedures, operations and documents with international conventions, standards and practices
Standardisation is the process of developing internationally agreed format for practices and procedures, documents and information.
Trade FacilitationTrade Facilitation
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What is Trade Facilitation?What is Trade Facilitation?
Regulations
Procedure
Documentation
Movement of Goods
Compliance
Transportation
Simplify
Standardize
Transparent
Secure
Government Industry
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Trade Facilitation = reducing the Speed bumps in the global
supply chain
$$$$$$
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A cting as the impetus, cat alyst and instrument of Tr
ade.
Further attraction for For eign Direct Investment (F
DI) and relocation
Stimulant for trade volume
Connectivity to major port s of the world
Facilitation for entry into Globalisation and Interna
tional trade
- Long term competitivene ss in trade facilitation
Trade Facilitation ImpactTrade Facilitation Impact
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Value DriversValue Drivers for Trade Facilitation for Trade Facilitation
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World Bank Doing Business – Trading Across Borders World Bank Doing Business – Trading Across Borders 20132013
Economy Name RankDocuments
to export (number)
Time to export (days)
Cost to export (US$ per
container)
Documents to import (number)
Time to import (days)
Cost to import (US$ per
container)East Asia & Pacific .. 6 21 923 7 22 958Middle East & North Africa .. 6 19 1,083 8 22 1,275Singapore 1 4 5 456 4 4 439Hong Kong SAR, China 2 4 5 575 4 5 565Korea, Rep. 3 3 7 665 3 7 695Denmark 4 4 5 744 3 5 744United Arab Emirates 5 4 7 630 5 7 590Saudi Arabia 36 5 13 935 5 17 1,054Djibouti 41 5 18 836 5 18 911Morocco 47 6 11 577 8 16 950Oman 49 8 10 745 8 9 680Jordan 52 5 13 825 7 15 1335Bahrain 54 6 11 955 7 15 995Qatar 58 5 17 885 7 17 1,033Egypt, Arab Rep. 70 8 12 625 9 13 755Lebanon 95 5 22 1080 7 30 1365Kuwait 113 7 16 1,085 10 19 1,242West Bank and Gaza 114 6 23 1,310 6 38 1,295Syrian Arab Republic 125 8 15 1,190 9 21 1,625Sudan 153 7 32 2,050 7 46 2,900Afghanistan 178 10 74 3,545 10 77 3,830Iraq 179 10 80 3,550 10 82 3,650
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So what’s“Single Window”
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“A lot of times, people don’t
know what they want until
you show it to them.”
Steve Jobs, Businessweek, 1998
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What is a Single WindowWhat is a Single Window
“A Single Window is a facility that allows parties involved in trade and transport to lodge standardized information and documents with a single entry point to fulfill all import, export, and transit-related regulatory requirements.
If information is electronic, then individual data elements should only be submitted once”.
UNECE Recommendation 33
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Integrates / Integrates / Interface with Interface with
ALL Govt ALL Govt Regulatory Regulatory AgenciesAgencies
Risk Analysis / Risk Analysis / Management Management
for all for all authoritiesauthorities
Serve a the Serve a the national secure, national secure,
trusted trusted Information Information Broker/ VANBroker/ VAN
Entire Trade Entire Trade Facilitation Facilitation
Value ChainsValue Chains
National Single WindowNational Single Window
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Single Window for Trade FacilitationSingle Window for Trade Facilitation
Integrated Trade Facilitation Strategy – including Single Window
Trade Facilitation - Facilitate: to make
trade easy or easier
Fundamental component of trade and
economic development strategy (TF in
WTO etc)
Single Window is not an end in itself
SW is not a technology system!
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Single Window –Reducing Trade Cost
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Real Focus: Real Focus: Reducing the economic impact of regulatory Reducing the economic impact of regulatory
processes on cross border tradeprocesses on cross border trade
Each additional day of delay (e.g. because of trade logistics procedures) reduces trade by at least 1%Source: Simeon Djankov, Caroline Freund, and Cong S. Pham. (2007). Trading on Time. Washington, D.C.: World Bank.
Direct and Indirect Cost from import/export-related procedures and required documents is up to 15% of product cost.Source: OECD. (2003). Quantitative Assessment of the Benefits of Trade Facilitation. Paris: OECD Publications
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Proof of SW in Reducing Trade….Proof of SW in Reducing Trade….
Proof of SW in Reducing Trade Cost are mostly
empirical
There are very few studies conducted to show
the direct contribution of SW in reducing trade
cost
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Reducing Trade Cost – Korea’s uTrade HubReducing Trade Cost – Korea’s uTrade Hub
Source: Rama Ha, KTNet Presentation 18 Nov 2012
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Reducing Trade Cost – Korea’s uTrade HubReducing Trade Cost – Korea’s uTrade Hub
Source: UNNext Brief #3 , May 2010 - Case of Korea's National Paperless Trade Platform uTradeHub
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In Singapore, the advantage gained from the adoption
and application of the Single Window is the reduction
and lowering of business cost.
Overall, businesses can expect to save about S$75 M
(USD60.4M) over a period of 10 years.
Reducing Trade Cost – Singapore’s TradeNetReducing Trade Cost – Singapore’s TradeNet
Source: Speech by Singapore Minister of State for Finance and Transport, 17 Jan 2006https://www.tradexchange.gov.sg/tradexchange/default.portal?_nfpb=true&_nfls=false&_pageLabel=main_hidden&_type=hidden&_page=17july2006openingaddress&_action=view
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What do we learn from these What do we learn from these examples ? examples ?
There are concrete savings … through Direct and Indirect Cost Savings
Savings are often empirically obtained
Few countries with SW conducted comprehensive studies on the cost savings from SW
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Single Window –Increasing Govt / Customs Revenue
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How Ghana’s SW increase Trade Facilitation Journey
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Ghana Community Network (GCNet) is a Public Private Partnership (PPP) mandated by the Ministry of Trade and Industry to Implement and manage a Single Window system
GCNet was created as a JV company :
SGS (60%)Customs Excise and Preventive Service CEPS (20%)Ghana Shippers Council (10%)2 local banks (5% each)
Incorporated in Nov 2000
Formal launch of the GCNet Service in Dec 2002
70 employees (including Network, Systems, IT Security, Ops Support, Call Centre, Training Depts)
Ghana Community Network
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Ghana Community Network in Figures
Single Window system processing 99% of official trade
Electronic Customs Declaration - 520,000 per annumElectronic Manifest submissionProcessing of Permits and Exemptions & Import Declaration
Operational in all main points of entry - 2 seaports, 1 int’l airport, 4 land borders.
All active Declarants connected – 1200 Clearing Agents and Self Importer located at 625 locations
All active Shipping (80) and Forwarding Agents (100) connected
560 customs terminals deployed covering all key functions – eg doc review, examination, post-event, audit, management, tariff etc…
1200 customs officers trained and active using the system
105 employees (Network dept, Systems Dept, IT security Dept, Ops support, Call Centre, Training)
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Ghana - Increase in Customs Revenue
Immediate substantial decrease in clearance time – factor of 5
Immediate substantial increase in Government revenue – First year, increase of 35% year-on-year; subsequent years increase of 20%.
Recognised as best practice by WCO and World Bank
Total Revenue - Tema
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
500,000
JAN
FEB
MAR AP
R
MAY JU
N
JUL
AUG
SEP
OC
T
NO
V
DEC
Mio
GH
C
2002
2003
2004
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How Madagascar’s SW increase Trade Facilitation Journey
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Malagasy Community Network
A Public-Private Partnership Joint Venture with Government for the development of Single Window – Malagasy Community Network Services (or Gasynet)
GasyNet, modeled on the Singapore’s TradeNet was established in 2006
SGS - 70%
State - 30%
Operational since April 2007
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Malagasy Community Network
Involves integration of TradeNet System and existing ASYCUDA++
TradeNet connects most of the entities involved in the import and export process - Importers, Customs brokers, Customs, Port Authority, Container terminal, Commercial banks, Central Bank and the Treasury.
Gasynet also incorporates a risk management system, which directs containers into one of four lanes—red, yellow, blue or green—depending on criteria specified by Customs.
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Malagasy Community Network
World Bank’s Doing Business Report 2009“The results of the reform have been impressive—according to Doing Business 2009, overall time to import a container into Antananarivo was cut by three weeks. Customs clearance time has been reduced to 72 hours at Toamasina, through which 80% of imports pass by value.”
“But quicker customs clearance isn’t all the reform has achieved. Since 2005, customs receipts have doubled—from approximately 900 billion Malagasy aryary to around 1,800 billion today. And from the time TradeNet started operations in June 2007, receipts increased by 50%. This is vital in a country where customs receipts still account for around half of state income.”
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Thank you
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