Thailand Single-Window e-Logistics and Regional Integration

1. Thailand Single-Window e-Logistics and Regional Integration The 3rd Executive Forum on Trade Facilitation Paperless Trade in International Supply Chains: Enhancing Efficiency and Security 20-21 June 2005, Geneva Somnuk Keretho, Ph.D. Advisor, Thailand e-Logistics Initiative Ministry of Information and Communication Technology Director, Institute for Innovative Information Technology Kasetsart University

2. Outline • Trade Facilitation - Logistics Efficiency • Thailand Logistics Master Plan • Single Window e-Logistics • Roadmap & Pilot Projects • ASEAN Single Window Initiative &GMS Cross-Border Agreement • Conclusions

3. Trade Facilitation – Efficiency in Logistics • In 2003, the National Competitiveness Committee* initiated a task force to develop an integrated roadmap for national logistics competitiveness. Movement of Goods (and its reversed logistics) ExportersDistributors Producers(Raw Materials) Consumers Importers Manufacturers Flows of Documents & Payment *A high-level public-private strategic committee, chaired by the Prime Minister and comprised of economics-related Ministers and key private leaders (e.g. Thai Chambers of Commerce, Bankers’ Association, Industry Federation etc.)

4. Trade Facilitation as a Competitiveness of A Nation • Logistics – Efficiency flow of Goods • Logistics Cost in Thailand is quite high. Current Logistics Cost/GDP Thailand 19% Inefficiency in Logistics Management isOur Opportunity for Improvement 11% Japan 10% USA EU 7% • Cost Reduction Opportunity in Logistics • e.g. 5%of GDP ~ 7.5 Billion USD possible cost reduction

5. Single-Window e-Logistics Environment Thailand Logistics Master Plan 2005-2009 Vision World-Class Logistics Hub for Indochina Objectives Responsiveness Cost Efficiency Reliability & Security Six Strategic Agendas Improving LogisticsInfrastructure Linking Information andDatabaseSystems Building Capacity for Better Logistics Management Re-designing Law, Regulation &Institutional Framework Cooperating for Regional Economic Integration Strengthening Logistics Service Providers

6. A Single Window and Integrated Environment to create a data network and infrastructure to link all logistics players via a single-window entry Fishery Food & Drug Agriculture Others Licensing Agency Window Single Window Facilities Port Window Trading Company Bank Insurers Trading Window Terminal/Depot Operator Port Authorities Customs Window Broker Importer Exporter

7. KIPKE BOB GRAPHICS KIPKE BOB GRAPHICS 2000 2001 Release And Clearance Key Components of Single Window Concepts Single Window Concept Licensing Agency Window Integrated electronic single point of entry Food & Drug Trader Single Window Facilities Agriculture Internet Licensing Fishery Others Customs Clearance Customs Enforcement Port Window Customs Window

8. Cross Border PT(GMS, ASEAN SingleWindow,APEC Pathfinder Initiatives) Thailand Single-Window Paperless Tradefor Efficiency and Security in Trade 1st Cycle: Customs Clearance + e-Certificates 2nd Cycle: Transportation & Financial Settlement 3rd Cycle: Cross-border Paperless Trading Port Authority Bank Customs Airline Ministry of Agriculture Internet Insurance GDX Shipline Trading Company Web-based Application Form Ministry of Commerce Sea Port GDX: Government Data Exchange

9. 2008 Increment 3 Roadmap 2007 Increment 2 Cross-border Electronic Transaction Supporting e-document exchange for ASEAN single window and GMS cross-border single inspection initiative 2005-2006 Increment 1 E-Logistics Infrastructure Extending to cover more products, e.g. textiles, poultry, shrimp, and other commodities,Extending to coverimport, export and transport activities. Pilot Projects Implementing Single Window e-Licensing and e-Certificate systems for exporting fruits and automobiles Implementing cargo community information exchange services and e-Port Windows Establishing information linkage with e-Customs Window Providing one-stop information services, and customers call services on trade, transport, transit and customs procedures Standardize Data Set (SDS)and Re-design procedures Project & Change Management Auditing/Quality Assurance and System Security Hardening

10. A Pilot Project – Exporting Fruits • As Is: 7-10 days to obtain five related certificates, declarations and transportation documents (4 government agencies, 5 related logistics providers)to export durians to China • To be: One-Stop e-Services for Exporting Fruitsby Dept of Export Promotion, MOC and other 8 departments • Centralized e-Forms & Internet Licensing with Digital Signature and Digital Watermarking in 15 minutes • Electronic Sanitary-Phytosanitary Certificates (e-SPS) • Electronic Certificate of Origins (e-CO) • Export Declaration • Ship Carriers & Port Operators Document Exchange MOC MOA MOF MICT

11. A Pilot Project – Exporting Cars • Single-Window for Exporting Cars • Abandoning application forms • Issuing Internet Licensing/Certificates • Electronic Documents Interchange among government agencies to reduce steps and costs of exporters. Ministry of ICT Single Window Dept of Land Transportation/MOT Document e-Tracking One-Day Clearance Scheme Dept of Foreign Trade/MOC Customs Dept/MOF

12. Architecture & Building Blocks Carriers/Agents Insurers Customs Broker Customs Importer Trade Community Government Agencies Secure Information Portal Reliable and Secured Data and Service Exchange using ebMX specifications Integrated Customs and Cargo Management G2G Persons/ Organizes Cargo Processing Web Content Management G2C Exporter e-Release Banks Single Sign On e-Tracking PrivateSectors e-Licensing Single Window Entry G2B e-CO Private Sectors (Trade Community) Government Agencies Account Management G2B G2G Account Profile Risk Analysis Selectivity Management Port authorities Trading company Message Base ebXML-based Registry and Repository Web Base PKI Infrastructure Terminal/Depot Operator Consolidators Forwarders

13. Recommended Key Performance Indicators • To improve time and cost factors • Phase 1: • Reduce Permit Processing time and cost by % • Reduce declaration by % • Phase 2: • Reduce the process at the port by % • Reduce overall end-to-end process by % • Increase in volume of transactions by % • Increase in the number of key constituents sign-on • Increase in the number of e-document types

14. Cost/Benefits Analysis • Investment: 31 million USD for 3 years (~7 million USD is secured for 2006) • Targeted Benefits: not less than .5% of Import/Export Volume • Costs saving –> 0.7 billion USD annually

15. Institutional Framework Prime Minister The Cabinet National Competitiveness Committee (Ministers + CEO’s) National Economic and Social Development Board National Logistics Subcommittee - Single Window e-Logistics Subcommittee Academia & Consultants Thai Federation on Logistics PMO: Project Management OfficeMinistry of ICT Incorporation with MOC, MOF, MOT, MOA, MOI and TFL Subcommittees and Working Groups for special tasks

16. To expedite and simplify information flow between government and trade and bring meaningful gain to all parties involved in international trade. To establish the viable, simplified, standardized and integrated environment for cargo clearance in line with international best practices To reduce time and resources needed for cargo clearance ASEAN Single Window • Single Submission, • Single Decision Making, • Single Data Processing Key Objective

17. Thailand SW Viet Nam SW Philippines SW Indonesia SW Cambodia SW Malaysia SW Myanmar SW Possible ASEAN Single WindowConceptual Model A Standardized Data Set based on WCO Data Model, UNTDED and UNeDOCs are considered. Singapore SW Brunei SW Internet Facilities Lao SW SW = Single Window Provider

18. Thailand Single Window and GMS OSS – One-Stop Services Offices for single stop inspection at the border crossing (physical locations with all authorized agencies)and the GMS cross-border Agreement will be enhanced by Single-Window ICT-enabled Environment GMS = Greater Mekong Sub-region

19. Conclusions – Key Issues • Trade Facilitation begins at home (behind borders),but enhanced by regional integration (between borders) • High-level Political Commitment and Resources • Inter-agency & Public-Private Involvement • Change Management • Business/Investment Models • Clear Roadmap is needed. • Standardized Data Set (SDS) - a pre-requisite for establishing Single Window Paperless Environment • Implementation Challenges, e.g. common XML schemas are urgently needed.

20. Thank you Somnuk Keretho, Ph.D. Advisor, Thailand e-Logistics Initiative Ministry of Information and Communication Technology Director, Institute for Innovative IT Kasetsart University Thailand) sk@ku.ac.th