Business (trade) Process Analysis for Trade Facilitation

1. Business (trade) Process Analysis for Trade Facilitation

2. Outline What is Business Process Analysis and Why it is Required? Examples of output from BPA Studies in WP3

3. What is a Business (trade) Process and it’s Analysis? A Business Process is a collection of related and structured activities or tasks that produce a specific service or product. Example Obtaining a fumigation certificate for rice export Applying and Issuing Process for a Certificate of Origin Customs Clearance Process at the Border Point

4. What is.. ..a Business Process Analysis? An analysis and modelling of business processes for improvement, simplification and automation Example Documenting existing practice in an administration/company Describing a “Standard Procedure” Identifying quantitative indicators (time, cost, docs) Recommending ‘to-be’ situation or TF measures

5. Supply Chain Complexity Source : Complex Networked Supply Chain [Harwick, 1999

6. Trade Movement – 3 Kinds of Flow Buyer(Importer) Seller(Exporter) Physical Goods Payment Information/Documents Wholesalers Cargo Insurance Traders Post-Harvesters Farmers Consumers Banks Traders Exporters Importers Freight Forwarders Customs Other-Government-Agencies Ship Agent Transport-Operators Terminal-Operator Carriers

7. Why conduct a Business Process Analysis? Who involved Procedures and Documents required Related Rules and Regulations Some quantitative indicators Business Process Analysis is a practical study • to understand attributes of business processes, and their relationships 7

8. What are benefits of Business Process Analysis? 8

9. Customs broker Directorate of Trade, MOC Importer Exporter (or representative) Importer’s bank ICD SAD Exporter’s bank Port 3rd party inspector Transporter Courrier Use Case Diagram of Rice Export from Myanmar 3) Ship 3.1) Obtain Export License 3.2) Arrange overseas shipping 3.3) Arrange pre-inspection and fumigation 1) Buy 1.1 Sales contract 3.4) Declare CusDec 2 3.5) Collect empty container from ICD and deliver it to warehouse 2) Pay 3.6) Stuff containers at warehouse 2.1) Make advance payment 3.7) Deliver to port of departure for Customs examination 3.8) Examine commodity 3.9) Handle and load the goods onto the vessel Customs department FDA 3.10 ) Prepare required shipping documents for buyer 3.11) Deliver shipping documents to buyer Bank Shipping line

10. 3.8 ) Examine commodity SAD Exporter (or representative) Port Customs Transporter 3rd party inspector Port terminal Customs department at the port Exporter (or representative) Transporter 3rd party inspector Port terminal Shipping Agency Department (SAD) 3.8.1Request for examination 3.8.2 Receive request 3.8) Examine commodity 3.8.1 Request for delivery 3.8.2 Receive request to send the loaded Container to Customs yard 3.8.3 Register case file 3.8.2 Receive the request for fumigation 3.8.1 Request for fumigation 3.8.1 Submit 103 slip, shipping instructions, & Port Challen 3.8.4 Reviews case file 3.8.2 Receive port challen, SI, and 103 challen 3.8.5 Order to the port Customs examination team Found incorrect 3.8.6 Examine the goods 3.8.3 Check the container against 103 challen Found correct 3.8.7 Fumigate the containers after Customs examination 3.8.8 Allow shipment 3.8.6 Check with loading list and prepare mate receipt 3.8.9 Allow to load cargo

11. Time-procedure Chart for Importing Animal Feed to Lao PDR

12. Documents Required for Jute Bag Exports to India from Bangladesh

13. Economic impact of bottlenecks in business processes of 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 about 1-15% of product cost.” Source: OECD. (2003). Quantitative Assessment of the Benefits of Trade Facilitation. Paris: OECD Publications