connecting supply chain in the region
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Connecting Supply Chain in the Region
A private sector initiative to facilitate cross-border paperless trade data exchange
Sung Heun HA (Rama)
Director Korea Trade Network (KTNET)
25 September 2012
Agenda
2 PAA Cross Border Framework
3
1 About Pan Asian e-Commerce Alliance - PAA
4 Challenges & Recommendation
PAA Cross Border Paperless Trade Services
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
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.
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
Secure Cross Border Transaction Services
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' Inter-Connection and Service Level Agreement
• PAA Club and Policy Agreement, CA/PKI Mutual Recognition
Pan Asian Certificate
Policy
Evaluate CPS against Certificate
Policy
Confirm CA’s Operation is in accordance
with CPS
List of Accredited
CA’s
A
ccredit CA
’s
Community CA Certification
Practice Statement
(CPS)
Assess CA’s operations complies with 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
H*
By integrating the paperless trade services into the H* Company’s Supply Chain Management System, all trade related documents and information are sent to and received from partners into the system automatically
L/C and other trade documents: 4,800/year, Mill Sheet and others: 2,400/year
Purchase System
DB For
Each Coil
DB For
I/V, P/L, B/L info Data for Each Coil Data for
Each Coil Data for Each Coil Data for
Each Coil Data for Each Coil
Mill’s P/L
Invoice
Packing List
B/L Advice
ebXML, SSL
e-documents exchange over the paperless trade platform
Paperless trade embedded e-SCM system
CASE 1 : e-SCM
14
Purchase Control
Purchase Plan
Inventory
Order Plan Order Plan
L/C L/C
Advance Import Report
P/O
Status
B/L Advice
Invoice
P/L
Mill Sheet Mill Sheet
B/L Advice
Application for L/C
Order Plan
P/O
B/L Advice
Invoice
P/L
Mill Sheet
Advance Import Report
Status
Bonded Transportation
Bonded Transportation
Customs Clearance
Tariff return
Customs Clearance
Tariff return
L/C
ASP
EDI or
XML
Before
Bank Ministry Customs Bank Exporter Manufacturer Carrier KTNET ERP Importer
II. PAA Initiatives
CASE 1 : e-SCM
15
Purchase Control
Purchase Plan
Inventory
Order Plan
L/C L/C L/C
Advance Import Report
P/O
Status
B/L Advice
Invoice
P/L
Mill Sheet Mill Sheet
B/L Advice
Application for L/C
Order Plan
P/O
B/L Advice
Invoice
P/L
Mill Sheet
Advance Import Report
Status
Bonded Transportation
Bonded Transportation
Customs Clearance
Application
Tariff return
Customs Clearance
Application
Tariff return
Order Plan
After
Bank Customs Bank Exporter Manufacturer Carrier KTNET ERP Importer
II. PAA Initiatives
Ministry
CASE 1 : e-SCM
Mutual growth with Partners through the Increased Efficiency in Trade Business and Strengthened Business Ties
Direct Cost Saving : $ 1 Million / Y
Stable supply chain management •Transparent work process from Planning to Production
Less Human Resource •$ 1 Bil./8 Staffs (2003) $ 5 Bil./4 Staffs (2012)
Secure the Business with H* •Pre-order based production
High level customer service •Extension of same service to other Korean Customers => Hyundai Motors, Hyundai Heavy Industry
Enhance work efficiency •Less mistakes from documents handling •Lower work load from more work volume
Less System Development and Management Cost •PAA Standard e-documents and Web ASP service
Benefits for H* and Trade Partners
II. PAA Initiatives
CASE 1 : e-SCM
E-C/O: APEC ECSG Pathfinder Project Dec. 2004, preliminary-meeting between MOTIE (public sector), KITA and KTNET(private sector) of Korea and BOFT (public sector) and Trade-Van (private sector) of Taiwan province of China April 2005 and May 2006, the 1st and 2nd bilateral meeting - Mutual agreement on the implementation of the cross border ECO exchange project utilzing PAA framework Nov 2008, the 3rd bilateral meeting - Signing of MOU for cross border ECO service March 2010, official launch of ECO service
II. PAA Initiatives
CASE 2 : E-Certificate of Origin
Paper CO Scenario [Korea ► Taiwan, China]
Repository
KTNET
Repository
KCCI
CO APPORG
ECO CERTIF
Exporter CO APP
ECO (for print)
Customs
Importer
Send Inv, P/L, Paper CO to Importer
Korea Taiwan, China
Customs Broker
Pass the paper CO to Customs Broker
Import Declaration
Supplement Paper CO
Supplement Paper CO
National Treasury Agency
Verify authenticity of
paper CO
Trade-Van
Declaration
Taiwan province Mission office in Korea
CO for Seal and Certification
ECO Scenario [Korea ► Taiwan, China]
Exporter
Repository
KTNET
Repository
Trade-Van CO APP
ECO (for view)
Inv, P/L
(specify ECO Number)
Inv, P/L, Attach ECO from repository
Inv, P/L, ECO Importer
CO APPORG
ECO CERTIF
KCCI Customs
Import Declaration ECO confirmed by importer
Import Declaration Customs Broker
Sign to confirm ECO Assign Customs Broker
Generate Import Declaration Data
ECO Enquiry on KCCI Website
With ID and Password
Korea Taiwan, China
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, US$20-40 of travel cost)
Transmit cross border documents in a secure online environment
Better service to buyers
Importer Speed up customs clearance process
Expedite cargo pick up saving warehouse cost
Guarantee of authentic CO
Cargo Status Information
(with Export Manifest information)
Trucker Terminal
Export Declaration &
Manifest Loading Departure
Arrival Discharging
Import Declaration &Manifest
Bonded Warehouse
Trucker
Query by B/L number or Cargo Number
CIECC KTNET
DLN TJ NB
QD KCS (All Korea Ports) Origin Destination
Web Service
Forwarder Web
Trader
Web Service Trader
Forwarder Web
* Both Inbound and Outbound Model is applicable
Korea-China Cargo Visibility Project (II) Example of Korea-China Cargo Tracking CASE 3 : Cargo Visibility Service
Global Cooperation (APEC, ASEAL, AFACT, UN and etc..)
B2B2G Services Pre-Declaration
E-Manifest …
B2G Services
E-C/O eSPS
….
B2B Services
Secure Cross Border Transaction Service
Value Added Services
P/O
Inv
P/L Order Confirmation
Certificate
Visibility Financial Settlement
PAA E-Marketplace …
Etc..
ASN
Security (PKI) XML Document Networking (ebXML)
PAA Infrastructure
PAA Legal Framework
PAA as a Platform – PAA’s PAAS
PAA as a Platform – PAA’s PAAS
Quotation/ Bidding
Order Placement
Credit Check/Trade Performance Report
Business Matching and Negotiation
Import Declaration
Cargo Tracking
Customs Duty Import Permit
Potential members’ services to PAA
current services
Trade Financing
HS Code Classification
FTA Analyzer eCO Issuance Credit Insurance
Marine Insurance
Shipping Documents
Export Declaration
Import Procedures
Export Procedures
RFQ
Freight Mgnt
eMarketPlace
eBL /eNegotiatioin Payment
Issues and Challenges
Capacity Gaps
among the Parties
National / Private Technical Standards
Different Legal
Framework
Cooperation between Public and Private Sectors
Lack of Coordination
Mechanism
Five major challenges to overcome
Adoption of common international standards into national paperless trade systems and active participation to international standards development
Domestic legal framework in align with international model laws and conventions
More rigorous capacity building program at regional level with reciprocal capacity building activities and support
Dynamic platform where both public and private sectors can openly share their views and concerns and communicate readily
Regional arrangement for the recognition and facilitation of cross-border electronic documents and data
Recommendation
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