connecting connecting supply chain in the supply chain in ... · connecting connecting supply chain...
TRANSCRIPT
1
Connecting Connecting Connecting Connecting Supply Chain in the Supply Chain in the Supply Chain in the Supply Chain in the RegionRegionRegionRegionPractices and Perspectives from PAA
Sung Heun HA (Rama)Director of Global Cooperation
KTNET
25 September 2012
Agenda
2 PAA Cross Border Framework
3
1 About Pan Asian e-Commerce Alliance - PAA
4 PAA Proposal on ASEAN e-Self Certification
PAA e-Certificate of Origin
2
About PAA
Asia Economies and PAA Members
1. China : CIECC
2. Hongkong : Trade Link
3. Indonesia : PT EDI Indonesia
4. Japan : NACCS
5. Korea : KTNET
6. Macau : TEDMEV
7. Malaysia : DagangNet
8. Philippines : InterCommerce
9. Singapore : CrimsonLogic
10. Chinese Taipei : Trade Van
11. Thailand : CAT Telecoms
3
PAA Membership
• IT, Network Service Providers, authorized by respective governments for electronic trade declaration and permits, and providing B2B and B2G local and cross border electronic messaging services on supply chain, logistics and financial transactions.
The PAA Mission• To enable secure and reliable transmission of trade and
logistics data and documents.
• To allow inter-connection of network services to provide e-Commerce transaction application services for the trade business community.
• To create a Pan-Asian portal to enable global B2B connection and communication.
4
PAA Value Proposition
• Comprehensive PAA Legal Framework– Safe and secure electronic documents exchange
– Mutual recognition of CAs/PKI
– Dispute resolution
• Facilitate Electronic Information Exchange, with reliable service backed by interconnection and service level agreement– Reduce administrative costs
– Faster transactions
– Opportunities for improved operations, inventory management and increased sales and revenues
PAA Cross-Border
Framework
5
End User A End User B
PAA Policy Authority
Certification Authority B
Certification Authority A
Club Agreement
CPS-A
Certificate Policy
Country A Country B
CPS-B
PKI Mutual Recognition
CA Service
SecureCross Border TransactionServices
Subscriber Agreement-B
Recognition Agreement
Subscriber Agreement-A
Service Provider A
Service Provider B
Interconnection Agreement, SLA
PAA Legal Framework
PAA Agreements
• Subscriber Agreement with PAA Member Services Agreement, within the jurisdiction of the respective national eCommerce Act/Law, and the Rules on the Admissibility of Electronic Evidence in Court
• PAA Members' InterConnection and Service Level Agreement
• PAA Club and Policy Agreement, CA/PKI Mutual Recognition
6
Pan AsianCertificate
Policy
EvaluateCPS againstCertificate
Policy
Confirm CA’s Operationis in accordance
with CPS
List ofAccredited
CA’s
Ac
cre
dit C
A’s
CommunityCA Certification
Practice Statement
(CPS)
Assess CA’soperationscomplieswith CPS
PKI Mutual Recognition
PAA Supported Documents
• Purchase Orders• Advance Shipment
Notice• Packing List• Commercial Invoice
• Bill of Lading• Air Way Bill• Sea Way Bill• Shipping Order• Delivery Order• Trade Declarations• Certificate of Origin
7
CustomsClearance(Status)
PAA Cross Border Scenario
Declaratio
nS
ystem
PA
A M
ember (B
)
PA
A M
ember (A
)
AWB Information,INV, PL, Export Declaration
AWB, INV, PL and
Declaration Information
AWB Information, INV, PL, Draft Import Declaration
Exporting FA Importing FACustoms Broker
Customs System
Importing Customs
Customs System
Exporting Customs
Export Declaration,Manifest
Submission
Manifest,Import DeclarationSubmission
CustomsResponse
CustomsResponse
PAA Secure Doc Exchange :
• Inter-connection Agreement
• Legal Framework
Declaratio
nS
ystem
CargoVisibility
PAA e-Certificate of
Origin
8
History
� E-C/O: An APEC ECSG Pathfinder Project
� Dec. 2004, pre-meeting between MOCIE (public sector), KITA and KTNET(private sector) of Korea and BOFT (public sector) and Trade-Van (private sector) of Chinese Taipei. Both sides reached an agreement to implement the cross border ECO exchange project using PAA framework.
� April 2005 and May 2006, the first and second official bilateral meeting between Korea and Chinese Taipei were held.
- Project scope and schedule was agreed
� Nov 2008, the third official bilateral meeting between Korea and Chinese Taipei was held.
- Signing ceremony of MOU for cross border ECO service
Third official bilateral meeting between Korea and Chinese Taipei
ContentsContentsContentsContents
Date � 2008.11.21, Taipei
Delegates
� Korea : MOTIE(Trade Policy Section),KTNET and
Korean Mission office in Taipei
� Chinese Taipei : MOE(BOFT), Customs,
Trade-Van
Agenda
� MOU signing for Korea-Chinese Taipei
ECO Transaction Service
� ECO Promotion Plan
� Bilateral Cross-Border Paperless Trade
Cooperation Measures
13131313
9
Paper CO Scenario [Korea ► Chinese Taipei]
Repository
KTNET
Repository
KCCI
1CO APPORG
2ECO CERTIF
Exporter1CO APP
2ECO (for print)
Customs
Importer
4 Send Inv, P/L, Paper CO to Importer
Korea Chinese Taipei
Customs Broker
5 Pass the paper CO to Customs Broker
6 Import Declaration
7Supplement Paper CO
7Supplement Paper CO
National TreasuryAgency
Verify authenticity of
paper CO
Trade-Van
6 Declaration
Chinese Taipei Mission office in Korea
3CO for Seal and Certification
ECO Scenario [Korea ► Chinese Taipei]
Exporter
Repository
KTNET
Repository
Trade-Van1CO APP
2ECO (for view)
3Inv, P/L
(specify ECO Number)
3Inv, P/L,Attach ECO from repository
3Inv, P/L, ECO Importer
1CO APPORG
2ECO CERTIF
KCCICustoms
6Import Declaration ECO confirmed by importer
6Import Declaration Customs Broker
4 Sign to confirm ECOAssign Customs Broker
5 Generate Import Declaration Data
ECO Enquiry on KCCI Website
With ID and Password
Korea Chinese Taipei
10
Benefits to Government
� Be the front-runner in trade facilitation among other countries
� Guarantee the authenticity of the cross border documents, reducing possibility of fake CO
� Reduce effort in paper CO verification
� Speed up customs clearance process and better service to trader community
Benefits to Exporters/Importers
Exporter� Save time and costs (courier express US$23) in applying and
sending over paper CO� No need to get a stamp/seal on the CO from Taipei Trade
Representative Office in Korea � save tremendous time (in average 3 days) and costs (US$17 per stamp, transportationcost US$20-40)
� Transmit cross border documents in a secure online environment
� Better service to their buyers
Importer� Speed up customs clearance process� Expedite cargo pick up � saving warehouse cost� Guarantee of authentic CO
11
The Way forward
Cross BorderPaperlessTrading
eSPS
B2B(INV, PL,
PO)ECO
�In cross border paperless trading, there’re commercial documents (B2B) and regulatory-required documents(B2G); ECO is crucial since it involves both the public and the private sectors.
�Korea and Chinese Taipei are in discussion to expand the service to e-INV, e-PL and e-SPS
� In discussion with other countries such as Philippines and Thailand to exchange ECO
KoreaChina
Exporter
CCPIT
2. issue
3.data transmission
4. data transmission
5.electronic
declaration
6. electronic
declaration
1.applyCIECC KTNET
Importer
Custom
Model 1: Electronic data transmission
Korea-China e-C/O project (1)
12
KoreaChina
Exporter
CCPIT
2. issue
3.data transmission
4. data transmission
5.Printed & Stamped
1.applyCIECC KTNET
Importer
Custom
6.declaration
Model 2: eCO local printing
Korea-China e-C/O project (2)
PAA Proposal on
ASEAN
eSelf Certification
13
ASEAN Self Certification- Manual, Pilot Implementation
• ASEAN Agreement on Self Certification for Trade Facilitation
– Pilot 1: Initially Brunei, Malaysia and Singapore, and now with Thailand
– Pilot 2: Indonesia, Laos and Philippines
• ASEAN Self Certification: Operating Customs Procedures (OCP)
– Issuing Authority accredits exporter, endorse exporter signature to Customs at Importing country
– Exporter ‘certifies/signs’ on the Commercial Invoice indicating compliance of export products to ATIGA, and sends invoice as Invoice Declaration to importer
– Importer submits Invoice Declaration to Customs, as support document to Import Declaration
– Customs process Import Declaration, verifies Invoice Declaration (validate exporter signature)
1. Accreditation of Exporters by Issuing Authority
2. Submission of Invoice Declaration - Self Certification (Commercial Invoice, Packing List, Waybill)
- By Exporter to Importer
- By Importer to Customs together with Entry Declaration
3. Customs verification of Invoice Declaration
- Certification and Exporter Signature
- Invoice declaration vs Entry Declaration
4. Duty and Tax Assessment (based on AFTA) and Clearance
ASEAN Self Certification- Manual, Pilot Implementation
14
Pilot Manual Self CertificationStep 1. Accreditation
Exporter Importer
Customs
SG, TH)
Customs(BR, MY, SG, TH)
Customs(Import)
Exporter Accreditation
CO Issuing
Authority
Accredited ExporterName and Specimen Signature
Challenges• Number of exporters in ASEAN to be authorized for Self Certification • Maintenance of Customs repository of authorized Names and
Specimen Signatures, eg 60,000-120,000
Pilot Manual Self CertificationStep 2. Invoice Declaration
Exporter Importer
Customs(Export)
Customs(Import)
Purchase Order
Invoice
ExportDeclaration,
Invoice,Packing List
ImportDeclarationInvoicePacking List,AWB/BL
Invoice Declaration
InvoiceDeclaration
ImportDeclaration,Packing List,AWB/BL
Challenges• Assurance of compliance to ASEAN ROO • Authenticity, integrity of Invoice Declaration, exporter signature
15
Pilot Self CertificationStep 3. Verification
Exporter Importer
Customs(BR, MY, SG, TH)
Customs(Import)
CO Issuing
Authority
Invoice Declaration
InvoiceDeclaration
Retroactive Check
Exporter Certification And Signature
PAA Proposal to ASEAN
• PAA E-Self Certification Service– Adopt PAA Legal Framework, CA and PKI Mutual Recognition
and Interconnection Agreement for safe and secure electronic exchange of Invoice Declaration
• B2B : from exporter to importer, and
• B2G : from importer to Customs/NSW
– Adopt ASEAN Message Specification: Invoice, and the PAA Data Communication Protocol (ebMS)
• PAA Members in ASEAN– Indonesia : PT EDI Indonesia
– Malaysia : DagangNet
– Philippines : InterCommerce
– Singapore : Crimson Logic
– Thailand : CAT Telecom
16
Premises:
1. ASEAN members agree to amend ATIGA ROO and OCP to to include guidelines to implement the eSelf Cert.
2. The Certificate of Origin Issuing Authority (Department of Foreign Trade or Customs, eg. Philippines and Singapore) to accredit and authorize exporters to do Self-Certification/eSelf Certification.
3. ASEAN Member (export) option to pre-qualified export products may be registered as compliant to the ATIGA ROO.
4. CO Issuing Authority option to require submission of e-Self Cert for monitoring exporter issuance of Self Certification.
5. Authorization of CA to issue digital certificates (PKI) to accredited exporters, adopt ASEAN Invoice data specification and PAA Message Exchange protocol (ebMS).
6. Customs (import) acceptance of valid E-Invoice Declaration as basis for applying applicable ASEAN ATIGA preferential tariff rate.
PAA Proposal on e-Self Certification
PAA Proposal on e-Self Certification
Proposed Scope of Work:
1. Establish a database of exporters authorized to Self-Certify. ASEAN members may agree on criteria for exporter e-Self Cert Accreditation.
2. Enable authorized exporters to electronically submit Invoice Declaration and use CA Digital Certificate to digitally sign Invoice Declaration; encrypted Invoice Declaration for transmission to buyer/importer
3. Enable automatic submission of Invoice Declaration to NSW; NSW to create Invoice Declaration database
4. Electronic validation of Invoice Declaration vs Import Entry
- Automated validation between NSW and Customs system, or -- Online viewing of Invoice Declaration via NSW
5. Generate Periodic Reports on Self Certification, Issuance per exporter and Utilization per importer, per country of origin, etc.
17
eSelf-Certification Workflow
Exporter Importer
Customs(Export)
Customs(Import)
Export
DeclarationE-SelfCert Import
Declaration
E-SelfCert
(Invoice Declaration)
CO Issuing
Authority(Customs/Foreign Trade)
E-Self Cert E-SelfCert
NSW NSW
ASW
Purchase Order
Packing List,/Delivery Notice, (Invoice)
Export
Declaration
Import
Declaration
Customs
Service
Provider
PAAMember
Customs
Service
Provider
PAAMember
2 31
3 4
5
3B
1. Export Declaration
2. Preparation, Digital Signing and Submission of invoice/SelfCertthru service provider
- Online submission, or -
- Invoice XML upload
3. Receipt of e-SelfCert- Buyer (importer/consignee)
- NSW(Customs, Issuing Authority)
4. Submission of SelfCert to NSW (import)
5. Submission of Invoice Declaration by importer/consignee- Electronic, attached with import entry declaration (or, simply use invoice
number for validation)
- Invoice Declaration print-out (paper) + Entry, AWB/BL, PackingList, Permits/Licenses
eSelf-Certification Workflow
18
eSelf-Certification Workflow
• Exporter submission of the Invoice/SelfCert to Buyer (B2B Exchange)
• Customs (import) receives eSelfCert
– Copy of eSelf Cert from exporter direct to Customs system or thru NSW, or copy of eSelfCert thru ASW from Issuing Authority-NSW (origin)
– eSelf Cert from importer as support document to import declaration
• Customs (import) validation of SelfCert submitted by importer
vis-à-vis SelfCert in NSW
eSelf-Certification Workflow
Exporter Importer
Customs
(Export)
Customs
(Import)
Export
Declara on
E-SelfCert Import
Declara on
E-SelfCert
(Invoice Declara on)
CO Issuing
Authority (Customs/Foreign Trade)
E-Self Cert E-SelfCert
NSW NSW
ASW
Purchase Order
Packing List,/Delivery No ce, (Invoice)
Export
Declara on
Import
Declara on
Customs
Service
Provider
PAA Member
Customs
Service
Provider
PAA Member
2 3
1
3 4
5
3B
APTA e-C/O
Provisions against
the Cross-Border APTA E-C/O Exchange
Provisions for
the Cross-Border APTA E-C/O Exchange
19
• The PAA is composed of accredited service providers of their respective Customs authorities and Other Government Agencies.
• The PAA network and legal infrastructure is available in member economies. This may be extended to other economies.
• However, without the legal recognition of cross-border e-documents by its Governments, the benefit is limited
• Regional intergovernmental bodies with wide membership scope and proper mandate need to show leadership by initiating regional arrangement such as regional agreement
• Dynamic platform where both public and private sectors can openly share their views and concerns and communicate readily
Key Takeaway