APEC Initiative on Paperless APEC Initiative on Paperless TradeTrade

YounKyong KANGYounKyong KANGDeputy Director, E-Business Policy Division Deputy Director, E-Business Policy Division

Ministry of Commerce, Industry & EnergyMinistry of Commerce, Industry & EnergyRepublic of KoreaRepublic of Korea

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ContentsContents

What is APEC?

APEC Initiative on Paperless Trade

Benefits and Challenges

Strategies to move forward

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What is APEC?(1)What is APEC?(1)

Membership : 21 economies in AP regions

Goal : to enhance economic growth and prosperity for the region by - trade and investment liberalization - business facilitation - economic and technical cooperation

Established in 1989

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MinisterialMeeting

Structure Structure

Sectoral Ministerial Meetings

Committee on Trade and Investment

EconomicCommittee

SOM Committeeon ECOTECH

Leaders’ Meeting

Senior OfficialsMeeting(SOM)

APEC BusinessAdvisory Council

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ContentsContents

What is APEC?

APEC Initiative on Paperless Trade

Benefits and Challenges

Strategies to move forward

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VisionVision APEC Blueprint for Action on Electronic Commerce(1998)

- Ministers agreed “that member economies should endeavor to reduce or eliminate the requirement for paper documents needed for customs and other cross-border trade administration and other documents and messages relevant to international sea, air and land transport, “Paperless Trading”, where possible, by 2005 for developed and 2010 for developing economies, or as soon as possible thereafter”

The APEC Trade Facilitation Principles in 2002

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ECSG(Electronic Commerce

Steering Group)

PrivacySub-group

Paperless TradeSub-Group

Tel

SCCPATCWG

SOM

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How APEC Move How APEC Move from Paper to Paperless Trading?from Paper to Paperless Trading?

- (1) IAP - - (1) IAP -

Paperless Trading IAP(Individual Action Plan) - The 11th Ministerial Meeting in 1999 Auckland

The Template of Paperless Trading Individual Action Plan

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- e-C/O (electronic Certificate of Origin)

- e-SPS (Electronic Sanitary and PhytoSanitary Certificate)

How APEC Move How APEC Move from Paper to Paperless Trading?from Paper to Paperless Trading?

- (2) Pathfinder Projects - - (2) Pathfinder Projects -

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Pathfinder Project (1)Pathfinder Project (1)

Electronic Certificates of OriginElectronic Certificates of Origin

Implications

Between Singapore and Korea

– Confidentiality, authenticity and non-repudiation

– Potential savings of $US100/certificate (Crimsonlogic, Singapore)

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Implications

Between Australia and New Zealand- Australian Quarantine and Inspection Service and New Zealand Food Safety Authority- especially with meat shipment

Pathfinder Project (2)Pathfinder Project (2)

Electronic SPS CertificateElectronic SPS Certificate

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ContentsContents

What is APEC?

APEC Initiative on Paperless Trade

Benefits and Challenges

Strategies to move forward

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BenefitsBenefits

Savings to business

– Communication cost reduction

– Fewer errors

– Lower interest payments on trade finance

– Efficient supply chains

Savings for government agencies, banks, insurers and shipping companies

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Challenges (1)Challenges (1)

Lack of legal, institutional infrastructure

- some economies lack of electronic transaction law - some economies lack of electronic signature law

- lack of mutual recognition of electronic signature

Reluctance to changes - too many stakeholders - banks

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Challenges(2)Challenges(2)

Pathfinder Project

- e-C/O(electronic Certificate of Origin) International message standard for e-C/O

- e-SPS(electronic Sanitary and PhytoSanitary Certificate) lack of awareness

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ContentsContents

What is APEC?

APEC Initiative on Paperless Trade

Benefits and Challenges

APEC Strategies to move forward

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Strategies to Move Forward(1)Strategies to Move Forward(1)

Initiating new pathfinders for other priority areas- harmonize customs declaration items among interested member economies(CTI/SCCP)- a new Pathfinder on cross-border electronic transmission of customs clearance data(CTI/SCCP)- discussing cross-recognition of PKI domains

Intensifying capacity building activities - ECSG sponsors assessment and benchmarking of current practices in paperless trading - training program, workshop etc.

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ECSGECSG

GGBDeBDe

AABACBAC

Asia PKI Asia PKI ForumForum

PPAAAA

Strategies to Move Forward (2)Strategies to Move Forward (2)

Collaborating with other international organizations - especially with UN/CEFACT (the standards of e-SPS, e-C/O)

Strengthening of public private partnership