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TRANSCRIPT
Connecting Supply Chain in the RegionPractices and Perspectives from PAA
Sung Heun HA (Rama)
Director of Global Cooperation
KTNET
25 September 2012
Agenda
2 PAA Cross Border Framework
3
1 About Pan Asian e-Commerce Alliance - PAA
4 Challenges
PAA Cross Border Paperless Trade Services
About PAA
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.
PAA Value Proposition
• Comprehensive PAA Legal Framework
– Safe and secure electronic documents exchange
– Mutual recognition of CAs/PKI
– Dispute resolution
• Facilitate Electronic Information Exchange,
with reliable service backed by
interconnection and service level agreement
– Reduce administrative costs
– Faster transactions
– Opportunities for improved operations, inventory
management and increased sales and revenues
PAA
Cross-Border
Framework
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 AsianCertificate
Policy
Evaluate
CPS against
Certificate
Policy
Confirm
CA’s Operation
is in accordance
with CPS
List ofAccredited
CA’s
Ac
cre
dit C
A’s
CommunityCA Certification
Practice Statement
(CPS)
Assess CA’soperationscomplieswith 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
Customs
Clearance
(Status)
PAA Cross Border Scenario
Decla
ratio
n
Syste
m
PA
A M
em
ber (B
)
PA
A M
em
ber (A
)
AWB
Information,
INV, PL,
Export
Declaration
AWB, INV, PL
and
Declaration
Information
AWB
Information,
INV, PL,
Draft Import
Declaration
Exporting FA Importing FA
Customs Broker
Customs
System
Importing Customs
Customs
System
Exporting Customs
Export Declaration,
Manifest
Submission
Manifest,
Import Declaration
Submission
Customs
Response
Customs
Response
PAA Secure Doc Exchange :• Inter-connection Agreement•Legal Framework
Decla
ratio
n
Sys
tem
Cargo
Visibility
PAA
Secure Cross-Border
Transaction Services
H*
By integrating the paperless trade services into the H’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
DBFor
Each Coil
DBFor
I/V, P/L, B/L info
Data for
Each CoilData for
Each CoilData for
Each CoilData for
Each CoilData 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
16
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
EDIor
XML
Before
Bank Ministry Customs Bank Exporter Manufacturer CarrierKTNETERP Importer
II. PAA InitiativesCASE 1 : e-SCM
17
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 CarrierKTNETERP 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 HYSCO
•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 InitiativesCASE 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 using 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 InitiativesCASE 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-VanCO APP
ECO (for view)
Inv, P/L
(specify ECO Number)
Inv, P/L,
Attach
ECO from
repository
Inv, P/L, ECO Importer
CO
APPORGECO
CERTIF
KCCI
Customs
Import Declaration
ECO confirmed by importer
Import
DeclarationCustoms 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/ImportersExporter
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
CargoStatus Information
(with Export Manifest information)
Trucker
TerminalExport
Declaration &
ManifestLoading
Departure
ArrivalDischarging
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/LOrder
Confirmation
Certificate
VisibilityFinancial Settlement
PAE …
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/
BiddingOrder
Placement
Credit
Check/Trade Performance Report
Business Matching and Negotiation
Import
Declaration
Cargo
Tracking
Customs DutyImport Permit
Potential members’ services to PAA
current services
Trade
Financing
HS Code
ClassificationFTA Analyzer eCO Issuance
Credit
Insurance
Marine
Insurance
Shipping
DocumentsExport
Declaration
Import Procedures
Export Procedures
RFQ
Freight
Mgnt
eMarketPlace
eBL/eNegotiatioin
Payment
Challenges
Issues and Challenges
Capacity
Gaps
among
the Parties
Common
International
Standards
Harmonization of
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
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
During the 45th meeting of PAA Steering Committee in Manila, Philippines, the PAA had the opportunity to discuss the proposed Regional Agreement/Framework Agreement on Facilitation of Cross-border Paperless Trade for the Asia Pacific Region by UNESCAP and are encouraged by the renewed engagement by UNESCAP members on paperless trade.
The PAA has been involved in a broad range of trade-related cross-border exchange of electronic data and documents. We would like to express our strong collective commitment to support the Regional Agreement/Framework Agreement on Facilitation of Cross-border Paperless Trade for sustainable intraregional trade facilitation.
PAA Declaration