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Thailand National Digital Trade Platform
Mr. Nattapon Dejvitak
• Vice Chairman, Thai National Shipper Council
• Head of BRP Working Group, National Digital Trade Platfrom, JSCCIB
• Executive Vice President, Loxley Plc.
22 May 2019
Exporter Logistic Insurance Importer Bank Custom NSW Others
(1) Submit Quotation
Submit P/O (2)
(3) Submit Proforma Invoice
(4) Request Pre-export Financing against P/O
Advice L/C to Exporter (5)
(6) Request Pre-export Financing against L/C
(7) Book Cargo / Vessel
(8) Export Declaration
(9) Container to Terminal
(10.1) Shipping Instruction
Draft B/L (10.2)
(10.3) Confirm Draft B/L
(10.4) Endorse B/L
e-invoice Freight (10.5)
Deliver B/L (10.6)
Deliver SWB (10.7)
Deliver C/O (11)
(12) Request for Cargo Insurance
Deliver Insurance Policy (13)
Government Licenses and Certificates (14)
Other 3rd Party Document (15)
(16) Deliver Document to Importer (Open A/C)
(17) Request Post-export Financing
(18) Send all Doc. to Exp. Bank (D/P, D/A, L/C Payment Term)
Exp. Bank send all Doc. to Imp. Bank (19)
Payment to Exporter (T/T, L/C, D/A, D/P) (20)
(21) Exporter request for Blue Corner Certification
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Information Flow through the Value Chain of International Trade (Export)
International Trade typically involves up to :
20 processes at least;
30-40 documents generated; and
50-60% of information manually re-entered at least once
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ORIGINAL
What if ?
Ms. Varinborn
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SingleIntegratedPlatform
One-stop information-exchange platform that enables exporters
and importers to interact with all business partners and stakeholders on
international trade related transaction which will raise productivity,
transparency, boost competitiveness, and uncover other new opportunities.
OFFSHORE THAILAND
Japan
ASEAN Single
Window (ASW)Other
ASEA Countries’
NSW
Existing & On Progress
Proposed To-Be & Likely to Progress
B2B e-Platform
Hongkong
Singapore
(NTP)
Other
Countries
Insurance
Companies
Banks Liners
Importers
Others
Exporters
FreightForwarders
Custom Brokers
National Digital Trade
Platform
(NDTP)
GovernmentAuthorities
G2G / B2G
Ecosystem of National Digital Trade Platform (NDTP)
B2B
Advantages of National Digital Trade Platform (NDTP)
FasterAutomatic process helps reduce time of information input and information exchange
Efficiency
Process documents without redundant procedures, which are time consuming and prone to human errors
Transparency
Standardized document. Once recorded, transactions cannot be changed or altered; hence creating trust and transparency
Cost ReductionElimination of document handling and many duplicate rekeys helps save redundant costs
Online ProcessNo paper, No messenger. All steps can be done on computer or mobile device.
Shared Infrastructure
One time system development which can be used among stakeholders and in conjunction with other value-added services in future
ASEAN Frameworks
ASEAN Single Window (ASW)
Thailand
G2G / B2G
National DigitalTrade Platform
(NDTP)
BanksFreight
Forwarders
CustomBrokers
Liners
Insurance
Companies
Others
NationalDigital Trade
Platform (NDTP)
B2B e-Platform
Customs Act•
▪ Payment System Act▪ Exchange Control law ▪ Asian Payment Network
Draft law on digital verification of ID
▪ IDP / RP / AS / Digital Identity Guideline▪ Platform / FI / Insurance / Government
authorities
Other key laws
1. Electronic Transactions Act (urgent)▪ Consider implementing UNCITRAL’s Model Law on
Electronic Transferable Records (MLETR) 2017 →"electronic transferable records“ -B/L, B/E, P/N, L/C, warehouse receipts, negotiable instruments in electronic form.
‒ “singularity” approach‒ “control” approach
▪ Safety standard of the NDTP▪ [Electronic documents by government bodies:
electronic filings, electronic permit / license / approval – instead of amending each specific law]
2. Draft Personal Data Protection Bill (Urgent)▪ Explicitly carve out “Business Information” (in line with
GDPR's standard and the OECD's principles, Singapore)▪ Outbound transfer of personal data (adjust
requirements to enable interconnectivity with other countries → subregulation)
3. Digital Government▪ Digital payment option, paperless transactions, Open
Government Data ▪ [Electronic documents by government bodies]
4. Cybersecurity ▪ Pros and cons of the platform being considered as CII
(Critical Information Infrastructure) ▪ Compliance obligations re cybersecurity and risk
assessment report
Commerce Registration Act &Direct Marketing & Direct Sales Act
Registration & ongoingcompliance requirements
ExportersImporters
Non-Life Insurance Act▪ E-Policy▪ Online sale of policies▪ Online claims
Harmonization
▪ Laws and regulations
▪ Technical standards e.g. e-invoice, e-PO, e-B/L, e-L/C
(Urgent)1
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5. International Conventions (long term)▪ UCP 600 (+ e-L/C) voluntary basis▪ Vienna Convention (CISG)▪ UNCITRAL’s MLETR▪ ASEAN Framework
▪ Customs Thailand allows paperless submissions for e-Import and provides online tracking and filing services.
▪ [Electronic documents by government bodies] – Any adjustments if necessary to be done by Customs.
• Oversight forum oversees board activities
• Ultimate Decision Maker: Board directors supported by subcommittees. Decisions are based on majority vote.
• Governance Process: Operating company is governed by the board with support from subcommittees; on top of internal audit, two mandates for external audit occur once a year
• Cooperative society owned and controlled by users of its services
• Various subcommittees managed different functions and services of the company
• Operations managed by an executive committee reporting to the board
• Government Owned
• Controlled and managed by a mix of regulators and Government executives
• Operations managed by accredited local operating units (LOUs) outside of the non-profit organization
• LOUs operate under the organization’s standards
Local operating unit
• Oversight forum oversees board activities
• Ultimate Decision Maker: Board of directors governed by consensus
• Governance Process: Local operating units are accredited by the government agency to carry out activities in its name
Government Owned
Accredits
Oversight Forum
BoardOperating
Center
Board
Subcommittees
by Functions
Cooperative society
Customers
Consumes services and owns company
Customers
Provides services
Oversight
Committee
Board
Board
Subcommittees
by Functions
Alliance
Committees and
working group
Tier 1
member
Appoints
Tier 1&2
member
Tier 1, 2 &
3 member
Sits
Chairs
• Alliance owned and controlled by its members
• Different tiers of membership enabling different levels of roles and responsibilities within the occasion
• Committees and working group develop new services/standards/initiatives for the alliance
• Executive director appointed by board of directors
• Governing board is responsible for financial & corporate decisions, membership policies and resolution of conflict. Participated by Tier 1 members
• Governance Process: Board of directors rotated among tier 1 members
Participates
Executive
Director
Board
Governance Model Options
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Starting a BusinessDealing with Construction
PermitsGetting Electricity Registering Property Getting Credit
• Procedures (numbers)
• Time (days)
• Cost (% of income per capita)
• Minimum capital (% of income per capita)
• Procedures (numbers)
• Time (days)
• Cost (% of warehouse value)
• Building quality control index (0-15)
• Procedures (numbers)
• Time (days)
• Cost (% of income per capita)
• Reliability of supply and transparency of tariffs index (0–8)
• Procedures (numbers)
• Time (days)
• Cost (% of property value)
• Quality of land administration index (0–30)
• Strength of legal rights index (0–12)
• Depth of credit information index (0–8)
Protecting Minority Investors Paying Taxes Trading Across Borders Enforcing Contracts Resolving Insolvency
• Extent of disclosure index
• Extent of director liability index (0-10)
• Ease of shareholder suits & rights index (0-10)
• Extent of ownership and control index (0-10)
• Extent of corporate transparency index (0-10)
• Payments (number per year)
• Time (hours per year)
• Total tax and contribution rate (% of profit)
• Post filing index (0-100)
• Time to export
• Cost to export
• Time to import
• Cost to import
• Time (Days)
• Cost (% of claim)
• Quality of judicial processes index (0-18)
• Recovery rate (cents on the dollar)
• Strength of insolvency framework index (0-16)
• Digital Trade Platform has positive impacts to various key topics used in Ease of Doing Business scoring
• A rigor implementation of Digital Trade Platform can potentially improve Thailand’s Ease of Doing Business index to be in the top 20 world’s ranking
Country’s view
Digital Trade Trend
There are initiatives and ongoing development towards trade digitization in two key approaches; government led national platform, and private sectors consortium
HKTFP
NTP
NTTDDubai Trade
Private consortium
Government’s led
(eTradeConnect)
We.Trade
SKUCHAIN
Some countries have announced proof of concept to connect their own platform with other countries’
Example of private sector consortium on Trade related include:• Project Marco Polo (DLT on Open Account Trade)• Project Voltron (DLT on L/C Trade)
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• Singapore’s NTP is sponsored by MAS and owned by Singapore Customs • The new & improved NTP, starting service since September 2018, is aimed to be a one-
stop trade portal, provide access to trade-related service and be the key node to international connectivity in digital trade
Singapore Networked Trade Platform (NTP)
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Japan Trade Platform
13
Japan Trade Platform
14
Japan Trade Platform
15
Japan Trade Platform
Thailand National Digital Trade Platform
Mr. Nattapon Dejvitak
• Vice Chairman, Thai National Shipper Council
• Head of BRP Working Group, National Digital Trade Platfrom, JSCCIB
• Executive Vice President, Loxley Plc.
22 May 2019