ki hyun oh managing director/ktnet [email protected] ki hyun oh managing director/ktnet...

Ki Hyun OHManaging Director/KTNET

[email protected]

Ki Hyun OHManaging Director/KTNET

[email protected]

UNECEUNECE

UN/CEFACT

Going for Seamless Paperless Trade Going for Seamless Paperless Trade

2

UN/CEFACT

UNECEUNECE

Copyright© 2005 KTNET All Right Reserved.

1. Who is KTNET?

2. KTNET Services

3. Global Projects

4. Vision

Contents

UN/CEFACT

UNECEUNECE

1. Who is KTNET?1. Who is KTNET?

UN/CEFACT

UNECEUNECE

4

UN/CEFACT

UNECEUNECE


Profile of KTNET

Establishment

Employees

Revenue (’04)

Capital

established on December 1991 by the initiatives from MOCIEestablished on December 1991 by the initiatives from MOCIE

About 200 employeesAbout 200 employees

70Million (USD)70Million (USD)

50Million (USD)50Million (USD)

Transaction About 9.6 Million Times/ MonthAbout 9.6 Million Times/ Month

e-Docs 300 kinds of e-documents in service 300 kinds of e-documents in service

User GroupTrading Firms, Banks, Customs Brokers, Bonded Warehouses, Shipping Companies, Airlines, Korea Customs Service, Other Government Agencies and trade-related authorities.

Trading Firms, Banks, Customs Brokers, Bonded Warehouses, Shipping Companies, Airlines, Korea Customs Service, Other Government Agencies and trade-related authorities.

2. KTNET Services2. KTNET Services

UN/CEFACT

UNECEUNECE

6

UN/CEFACT

UNECEUNECE


KTNET Service Overview

Business Scope ServicesService Type

VAN Web(portal)

Megaportal

Commerce

eCustoms

Trade Finance

eLogistics

- Export/Import License- Marine Cargo Insurance- Export Insurance- Application for ((Issue) Letter of Guarantee- C/O, P/L

- L/C Advice - Local L/C - Remittance

- Customs Declaration- Manifest Consolidation System- Duty drawback

- Shipping Request & Order- Bill of Lading Advice- Marine Cargo Insurance Policy

C/S

C/S

C/S

C/S

eTFTM

eCFTM

eLFTM

CTradeWorl

d

eTFTM

2-1. Commerce and Trade Finance 2-1. Commerce and Trade Finance

UN/CEFACT

UNECEUNECE

8

UN/CEFACT

UNECEUNECE


Who participates in Commerce & Finance service?

• About 16,000 trading firms and most of trade related organizations participate in Commerce and Finance service network

Trading firms(16,023)

Korean banks(19)

Foreign banksIn Korea(23)

Korean Chamber of Commerce and Industry(2)

Industrial Associations(18)

Korea Export Insurance Corporation(1)

Insurance companies(6)KTNET

9

UN/CEFACT

UNECEUNECE


L/C Opening/Advice

1. BUSINESS CONTENT : L/C open, Opening Charge Notice, L/C advice, Advising Charge Notice

① APP700

(L/C Application)

② FINBIL (charge advice)

IMPORTERIMPORTER FOREIGN FOREIGN NOTICE BANKNOTICE BANK

SWIFTSWIFT

OPENING BANKOPENING BANK

① ADV700

(L/C Advice)

② Nego L/C PRESENTATION

EXPORTEREXPORTER

2. BUSINESS FLOW

10

UN/CEFACT

UNECEUNECE


Local L/C Opening/Advice/Nego

1. BUSINESS CONTENT : Local L/C open / advice, VATBIL or LOCRCT(local receipt certificate), Application for Bill of Exchange negotiation2. BUSINESS FLOW

ExporterExporter

① Offer sending

④ VATBIL issue

⑤ LOCRCT issue

⑦ Nego/settlement

③ L/C advice

⑧ Nego/settlement

Opening BankOpening Bank

② L/C open ⑥ Nego/ settlement

Negotiating Bank Negotiating Bank

ManufacturerManufacturer

11

UN/CEFACT

UNECEUNECE


Letter of Guarantee

EDI*NET

Bank L/G issuing inquiry and confirmation

‘ Bank L/G Issue (LOGUAR/LOGADV)

Bank L/G Issue (LOGUAR)

L/G Application (APPLOG)

Cargo Delivery Order (GODAPP)

Cargo Delivery Order & bank issuing D/O agreement yes or no confirmation taking out

IMPORTERIMPORTER

BANKBANKFORWARDERFORWARDER

WAREHOUSEWAREHOUSE

MFCS

KTNET

ExitExit

1. BUSINESS CONTENT : L/G Application, L/G Sending, L/G Issuing inquiry & Confirmation, Letter of Guarantee, Cargo Exit

2. BUSINESS FLOW

12

UN/CEFACT

UNECEUNECE


Exporter

TDATDA

e-Trade Platform

CO APP

e-C/O

e-C/O, Inv, P/L

e-C/O, Inv, P/L

Importer

e-C/O

KCCICustoms

Import Dec.e-C/O Scenario

e-C/O, Inv, P/L by paper handling

Bank

printout

DVCSDVCSOverseas Hub

Customs

TDA for Customs

e-C/O, Inv, P/L

e-C/O, Inv, P/L

Import Doc.(e-C/O, INV)

Import ProcessExport ProcessPaper Process

Certificate of Origin

choice of document handling

(on - offline)

TDA : Trusted Document AuthorityDVCS : Data Validate Certificate System

2-2. e Customs2-2. e Customs

UN/CEFACT

UNECEUNECE

14

UN/CEFACT

UNECEUNECE


As of June 2005

*OGA: Other Government Agencies

KTNET

Trading Firms(16,000)

Bonded Warehouse (1,176)

Bonded Transportation (308)

Forwarder- Sea(1966)- Air (1278)

Customs Broker (722)

Shipping Companies(574)

Air Lines (53)

Tallying Firms(22)

SITA

Bank(20)

ARINC

Network Service Provider

OGA(120)

PAA

Global Networks

ASEM

US Customs

KTNET Networking

15

UN/CEFACT

UNECEUNECE


TradersShipper/Airline

ForwarderOrganization

Bank/Insurance

Customs Service

Transport

eCustomseCustoms

Teaming up with the Korea Customs Service,KTNET has developed the Customs Information System handling cargo-related activities rapidly and precisely.

‘Electronic Data Interchange(EDI) System for Export Clearance’ was launched in 1994. Followed by ‘Import Clearance’ in 1996 and by ‘Automated Duty Drawback’ in 1997 and

reached close to 100% Paperless Customs Procedures.

e-Customs Service

2-3. e-Logistics2-3. e-Logistics

UN/CEFACT

UNECEUNECE

17

UN/CEFACT

UNECEUNECE


Arrival & Arrival & DepartureDepartureTransportTransport LoadLoad

CustomsCustomsHouseHouse WarehouseWarehouseForwarderForwarderTradersTraders

AirlinesAirlines

ShipperShipperExport

Import

KTNETKTNET

INFORMATION INFORMATION

Drives the processing speed of Logistics and reduces Time and Cost for Cargo Management. Covers 100% Complete Cargo Management Process, from arrival, unloading and

warehousing to delivery to customers. Using EDI based Document Standards and Simplification, KTNET provides 24-hour real-

time Logistics service.

e-Logistics Service

18

UN/CEFACT

UNECEUNECE


Warehouse

Trader

Customs Broker

Korea Customs Service

Trucking CompanyTallying Firm

Airline Shipping Company

Freight Forwarder

Manifest Entry Agent

Stevedore

Bank

ARINCARINC

Expected Carry-into information

Work order list for Cargo allocation

Unloading Report

Expected Check List

Bonded Transportation List

Cargo Information Inquiry

Pre-arrival Customs Clearance

L/G Information

Confirmation for shipment of Export cargo

Arrival NoticePaperless Nego

Manifest AcceptanceInternal business of CustomsSuspicious Cargo Selectivity

Master Manifest Transmission

FFM/FWB

Master Manifest Transmission

House Manifest Transmission

D/O, L/G

House Manifest Transmission

eLogisFrameTM

MFCSTM

eLFTM transmits e-documents such as ;

* D/O : Delivery Order* L/G : Letter of Guarantee

e-LogisFrameTM Service

19

UN/CEFACT

UNECEUNECE


Airliner

Forwarder

MFCS

Korea Customs

Shipping company

Airliner

Forwarder

Foreign cargo management

system

Foreign Customs

Shipping company

Bonded transporter

Bonded transporter

Bonded warehouse

Bonded warehouse

InformationSharing

Connecting Korea’s Manifest Consolidation System(MFCS) with the cargo management systems of foreign countries will enable a global sharing of cargo information resulting in better Customs Service administration

Sharing Cargo Data- Suggestion for Int’l Cooperation

20

UN/CEFACT

UNECEUNECE


Global Visibility service

End to End, Real & Near Time

Global Visibility

Integrated &

Centralized

Connection

DC/Buyer

Pick Up

ArrivalDepartureForwarder

Terminal

AirlinesCarrier

Break down

Terminal

Forwarder

Trucker

Delivery

Goods Receipt

Trucker

P/OIssue

P/O Accept

Goods Issue

Pick Up

Shipment B/L

Issues Transport

Transfer

Import Arrival, Customs-

Release

Inland Cartage

Delivery Invoice

Account Payable

Goods Receipt

Shipper Consignee

As the backbone of KTNET e-Logistics, Intelligent & proactive track & trace platform with global connection Data sharing by the actions of touch points like uploading from legacy or inputting data Booking from customers to logistics service providers via on-line Pre-alert, event management, inventory(in motion & at rest)control provided

Export clearance

Build up

Import clearance

Goods Issues

Supplier/Factory

21

UN/CEFACT

UNECEUNECE


Global Visibility Service

VISIBILITY in KTNET

ATHENA

[HP GLOBAL] [HP Korea]

[Customs Broker] [Bonded Warehouse] [Inland Transportation]

Import Clearance Transportation Status

SCM:Production, InventorySCM:Delivery, Shipment

Commercial Invoice

Commercial Invoice

Visibility

Monitor

Visibility

Monitor

HP(Headquarter in US & Korea) & its logistics service providers connected with KTNET Data uploaded and shared with trading partners Real time cargo status information created and supplied for customers Cargo status information(delay, on time or in time) acquired from the WEB Time and cost for cargo tracking reduced

Cargo in & out of W/H

Business Case of Visibility in service

[HP Singapore]

3. Global Projects - PAA

- ASEM

- GSCM

3. Global Projects - PAA

- ASEM

- GSCM

UN/CEFACT

UNECEUNECE

23

UN/CEFACT

UNECEUNECE


Manufacturer

9 members ; KTNET (Korea), CIECC (China), Tradelink (Hong Kong), TEDMEV (Macau),

Trade-Van (Chinese Taipei), TEDI (Japan), CrimsonLogic (Singapore),

DagangNet (Malaysia), CAT (Thailand)

PAA Members and Business Scope

Authority

KTNET

Carrier

BankWarehouse

Trucker

Customs Broker

Trader

Customs

Insurance

e-MP

Domestic Paperless Trade

260,000 Customers

Hong Kong

Singapore

Malaysia

Japan

China

Chinese Taipei

Korea

Macau

Asian Paperless Trade

Forwarder

24

UN/CEFACT

UNECEUNECE


• Interconnection Standard (Interoperability)• e-Document Standard• Security (Public Key Infrastructure)

• Interconnection Standard (Interoperability)• e-Document Standard• Security (Public Key Infrastructure)

•Background for legal issues•Multilateral Agreement

•Background for legal issues•Multilateral Agreement

•As Is: B2B & B2G e-Doc’s, Visibility Service, etc..

•To Be: e-B/L, e-Nego, e-Payment

•As Is: B2B & B2G e-Doc’s, Visibility Service, etc..

•To Be: e-B/L, e-Nego, e-Payment

PAA Performance

Secure Cross Border Transaction Service

Technical Standard

PAA Club Agreement

25

UN/CEFACT

UNECEUNECE


Beginning

Objectives

Introduction of ASEM

Approved by ASEM members at the 1st ASEM Conference on e-Commerce(2001)

Facilitate International Trade between Asia and Europe

Public-Private Joint Efforts

e-B2G Doc’s as well as e-B2B

Seamless Paperless Trade process by e-B/L, e-Nego and e-Payment

(US$3,976million) (US$12,425million)

(US$6,798million)

(US$56,658million)

Trade Volume with Korea

Source : 2004, KITA

26

UN/CEFACT

UNECEUNECE


ASEAL-A Booster to ASEM Project

27

UN/CEFACT

UNECEUNECE


Object - Building up Public SCM platform for Korean SME’s

Introduction of GSCM

A Supplier1

CompanyA Supplier 3

Big corp. Private

SCM

A overseas factory

A Supplier 2

Market Place

A Buyer

A Buyer 2

A Supplier 4

A local factory

GSCM-Hub

Domestic Global

To increase business flexibility by To increase business flexibility by corresponding to global market changes corresponding to global market changes

To support investment on overseas To support investment on overseas manufacturing facilities manufacturing facilities

To support SME’s IT-based business acTo support SME’s IT-based business activitiestivities

To upgrade private companies’ To upgrade private companies’ competencecompetence

Background

28

UN/CEFACT

UNECEUNECE


4. Vision4. Vision

UN/CEFACT

UNECEUNECE

29

UN/CEFACT

UNECEUNECE


e-Trade Platform(KTNET)

eMarketPlaceeMarketPlace

Credit Credit Evaluation Evaluation CompanyCompany

Marketing

BankBank

Credit Credit CardCard KFTC

Insurance Insurance CompanyCompany

CustomsService

National Logistics Single Window

DocumentStandard

Trading Company(Including SME)

e-TradeSingle Window

Global e-Trade Hub

Global Networking

CertifiedCertificateAuthority

FinancialSettlement

License/CertificateInsurance

Insurance Insurance CompanyCompany

StandardizationAgency

Korean Single Window - e-Trade Platform

30

UN/CEFACT

UNECEUNECE


Seamless Paperless Trade

Legal Documents

Bill of Lading

Legal Documents

Bill of Lading

Private Documents

Administrative(B2G) Documents

• I/V, P/L, Delivery Schedule, DELJIT, P/O, Payment Notice, Shipping Order, and other private doc.

• Certification of Origin• Export License • Acceptance of e-Doc’s by Customs• Other administrative Doc.

Seamless Paperless TradeSeamless Paperless Trade

31

UN/CEFACT

UNECEUNECE


Embodiment of International paperless Trade

Embodiment of Global paperless Trade

InternationalPromotion

International CooperationBy PP partnership

Standardization & Guidelines

Conventions/Agreements for the Effectiveness of Paperless

Trade

LocalPromotion

Public-Private Co-Work

Standardization

Local Mission International Mission

Related Laws/Systems/Process

Enhancement

Requisite for Paperless Trade

Thank [email protected]

www.ktnet.com

UN/CEFACT

UNECEUNECE

mailto:[email protected]

http://www.ktnet.com/

ki hyun oh managing director/ktnet [email protected] ki hyun oh managing director/ktnet...

Documents

ktnet slide

uncefactunece copyright

business flow slide

local lc open advice

net bank lg

local lc openingadvicenego

commerce finance service

business content