UNNExT Workshop on

Electronic Exchange of SPS Certificates for Better

Trade Control and Facilitation

21-22 October 2015

Wuhan, China

2

E- SPS EXCHANGE : PAPERLESS TRADE FACILITATION

The Automation of Philippine Agri-Trade Processes:

Francis Norman Lopez InterCommerce

Agenda

• Introduction

• Automating Agri Import Processes in the Philippines

• Implementing e-SPS Exchange

PH Agriculture Trade System: Background

• From 2002 to 2008, the Department of Agriculture (DA) had several attempts to automate their processes;

• Executive Order no. 482 dated 27 December 2005, creating the National Single Window Task Force

• In 2007, initial implementation of the PNSW using the Licensing and Clearance System of ASYCUDA

• In 2008, the DA issued directive harmonizing the import procedures of 3 agencies i.e. the Bureau of Animal Industry (BAI), the Bureau of Fisheries and Aquatic Resources (BFAR) and the Bureau of Plant Industry (BPI)

– The Proposal BIMP-EAGA Pilot electronic Cross Border Information Project led to the proposal to automate the SPS Import Clearance Precedures for the 3 DA Agencies

• In 2009, Pilot Implementation of the SPS Import Clearance

• In 2010, mandatory implementation of SPS Import Clearance and subsequently followed by the MAV/MAV Import Certificate, Request for Inspection (1st Border) and Veterinary Quarantine, Meat Inspection and Laboratory Certificate

• Exchange of e-SPS between PH and AU Departments of Agriculture in 2015

PH Agri Import Procedures – before 2010

• Centralized manual processes done at Head Offices, in Metro Manila

– Accreditation/registration of importers and cold storage warehouse

– Submission of application, processing and approval of SPS Import Clearance (SPS/IC)

– Minimum Access Volume (MAV) allocation and issuance of MAV Import Certificate

– Request for transfer of delivery of imported meat products to another cold storage warehouse

– Manually accomplished (hand written) Request for Inspection and issuance of the Veterinary Quarantine, Meat Inspection and Laboratory Certificate and Inspection Report (including verification of SPS Cerificates and other import documents)

• Consider 3,400 importers of agri products, average 500 import shipments daily in 57 international ports, with 200 cold storage warehouses

Challenges in Manual Processes

• Qualifying importers, suppliers and exporters for accreditation and registration

• Identification and classification of commodities, products

• Document submission, verification, authentication and storage 1. Certificate of Product Registration

2. SPS Import Clearance

3. MAV Allocation and Import Certificate

4. SPS Certificates eg Health and Phyto Certificates

5. Commercial Invoice

6. AWB/BL

7. Import Declaration

8. Port Quarantine Inspection Report/VQMILC

9. Certificate of Meat Inspection

• Collection/payment of fees and issuance of receipts

• Monitoring transport and cargo handling

• Traceability from source to consumer

• Profiling and Risk Management

• Generating timely and accurate statistics

Dept of Agriculture

BAI BFAR BPI

Regional Ofcs

Regional Ofcs

Regional Ofcs

Quarantine Ofc at Ports

Quarantine Ofc at Ports

Quarantine Ofc at Ports

Regulated Commodities/Products by Agency

• Bureau of Animal Industry (BAI) – Live Animals, for breeding and as

pets – Animal Product and By-Products,

eg. Beef, Port, Chicken and other Meat Products

– Feed and Feed ingredients, Supplements

– Veterinary Drugs, Additives, Supplements

• Bureau of Fisheries and Aquatic Resources (BFAR) – Live Fish – Fresh/Frozen Fishery and Aquatic

Products

• National Meat Inspection Service

– Meat and Meat Products

• Bureau of Plant Industry (BPI)

– Plant, including ornamentals

– Plant Products eg flowers, grains, fruits and vegetables

– Planting Materials

PH Agriculture Import Permit Procedure

Electronic (0.5 – 1 Calendar day) • Preparatory Activities

– Registration of authorized importer – Online submission of list of products to

pre-qualify for importation; Online approval by agency

– Remittance of advance payment/deposits

• Online encoding into web form and submission with attached scanned support documents – Application restricted to pre-qualified

products – Compliance to mandatory data

• Agency processing – Auto date and time stamp on receipt – Automated data validation – Online review of support documents – Online Endorse with pre-defined

conditions – Auto-debit payment of fees – Online approval – Automated transmission to NSW

• Online download of import permit • Printing, electronic transmission to supplier

Manual (5 - 10 Work days)

• Submission to agency head office

– Application form

– Support documents (Pro-forma Invoice, Certificate of Product Registration, etc.)

• Agency processing

– Register receipt of documents

– Verification of importer

– Review of permit application and support documents

– Qualify list of products

– Stipulation of conditions for importation and endorsement for approval

– Approval

• Payment of import permit fee and issuance of official receipt

• Issuance of the Import Permit

• Importer transmission to supplier (Import permit valid at the time of shipment from origin)

PH Agriculture Quarantine Clearance Procedure

Data Requirements

• RFI data – Import Clearance reference number

– Commercial Invoice data: reference number, invoice date, supplier name item description, quantity, unit of measure, value

– Shipper data: name, address, meat establishment reference number, etc.

– SPS Certificate data: reference number, date, issuing agency, Certification issued

– Shipping data: AWB/BL number, item description, quantity, weight, container number

– Final destination, i.e., cold storage warehouse

• Proof of payment of fees – Agency receipt number, date, payor, amount

paid

– NMIS receipt number, date, payor, amount paid

• Quarantine inspection data – Findings per container, e.g., actual condition

of goods

• Meat Inspection data – Findings upon inspection

Manual Request for Inspection (RFI) and Clearance

• Submission of RFI to agency office at Port of discharge

– Request for Inspection (RFI)

– Support documents (SPS Certificate, Import Clearance, Commercial Invoice, AWB/BL, Packing List, Import Declaration, etc.)

– Payment of Inspection Fee

• Agency Processes at the Port

– Verification of RFI and support documents

– Conduct of commodity inspection

– Determine final destination of importation

– Preparation and submission of Inspection Report

– Preparation and transmission of Veterinary Quarantine, Meat Inspection and Laboratory Certificate to the National Meat Inspection Service (NMIS)

– Issuance of Quarantine Clearance for delivery to cold storage warehouse

• NMIS 100% inspection of goods; conduct laboratory tests,if necessary

• Application and issuance of the Certification of Meat Inspection, as requisite to the release of imported meat and meat products

Submission of Electronic Documents

• Paper to Electronic Documents – Import Clearance

– SPS Certificate (health, phyto) from origin country

– MAV Import Certificate

– Request for Inspection

– Veterinary Quarantine, Meat Inspection and Laboratory Certificate

– Certificate of Meat Inspection

• Benefits – Data integrity and accuracy

– Automated validation and processes

– Re-use data for profiling, risk management and reports

Customs and Quarantine Clearance Invoice,

Packing List Pre-Alert

AWB/BL

SPS SAD

Lodge

Manual Assess

FAN

Auto Assess

AWB/BL

Start

VASP

AAB

NSW

PASS5 Examine

OLRS

Online Preparation

Electronic Submission

BAI Review, Payment,

Processing & Approval

Printing of Approved SPS

Import Clearance

Quarantine Inspection

RFI

• SPS Import Clearance • MAV Import Certificate • SPS/Phyto Certificate • Import Entry Declaration

SAD • Commercial Invoice • Packing List • Bill of Lading/AWB

VQMILC NMIS Meat

Inspection End (Customs) Cert of

Meat Inspction

MAV Import

Certificate

SPS Import

Clearance

E-SPS

Certificate

From

Origin Accreditation eRFI

Quarantine

Inspection

VQMILC

Meat

Inspection

VQMILC

COMI Local Transfer

Permit

DA (CSW),

BAI, NMIS

MAV, BOC

Import Entry

Declaration

BAI,

BFAR,

BPI

BAI,

BFAR,

BPI

BAI

BFAR,

BPI

NMIS NMIS, BAI DA MAV BOC OGA

(Origin)

Agriculture Trade System

TEC

PNSW DOF, NEDA, BAI

AU DA SPS/

NZ MPI , KR QIA, ASW

Processes on the Import of Agri Products

IOIS, Data Pipeline

Import Processes and Traceability

Agriculture Trade System IOIS, Data Pipeline

AgriFood Supply Chain Primary

Producer

Retail

Permit Application

SPS Import

Clearance SPS Cert RFI VQMILC

COMI

LTP

ProForma

Invoice

PO

Comfirmattion

SPS

Certification Transport,

Customs Data

Quarantine

Inspection Delivery

Source Supplier

Products Quantity

Importer CSW

SPS IC No, Validity

Import Req

Exporter, Products

SPS Certification

Shipper, Consignee, Meat Est No., Shipping Data

(AWB/BL)), Invoice Data

Products/HSCode SPS Ref No

Port Quarantine Inspection

Report

Meat Inspection, Laboratory Certification

Meat Certification, Products Destination

Challenges in Cross Border e-SPS Exchange

• WTO SPS Agreement provides the framework for the SPS Certification requirements

• Enabling Developing Countries for e-SPS

– Legal framework : Cross border, National and at Agency Level

– IT Infrastructure: Online access and Messaging (EDI/XML, SOAP, FTPs)

– Utilization of e-SPS Cert: Receipt/Issuance of e-SPS Certificate

• Standards in e-SPS

– UN CEFACT E-CERT, IPPC E-PHYTO

– Emerging global data standards

• Benefiting from the e-SPS Exchange

– Authenticating SPS Certificate

– Compliance to import regulations

– Facilitate Replacement of non-compliant SPS Certificate

Initial E-SPS Exchange

• Issuance and transmission of SPS Certificates

• Receipt of SPS Certificate and ensuring compliance to import quarantine requirements

KR

NZ

AU SP AU DAFF in 2007

BAI BFAR

BPI

BAI

DA Trade System 2015

Access to DAFF SPS eCert

NPPO/QIA

Exporting Country Importing Country

NPPO/QIA SPS Certificate

Exporter Importer

SPS Import

Clearance/

Permit

SPS Notice

SPS Import Clearance/Permit

SPS Status/Change Request SPS

Certificate

1

4

3

2

E-SPS Exchange Model*

* Pan Asian eCommerce Alliance Model

Note: AU Department of Agriculture has mandated the submission of the PH SPS Import Clearance as a requisite to the application for SPS Certificate, the addition of the Import Clearance reference number in the

SPS Certificate, and the transmission to PH DA Trade System upon approval.

Collaborative Model

• Common Vision and Objectives – Safe food to consumers

– Compliance to import regulatory requirements

– Transparency of requirements

– Trustworthy Certification

– Cost reduction

• Requisites – Data harmonization,

synchronization

– Interoperable systems for exchange of SPS and other trade data

Seller Buyer

Export QIA/NPPO

Import QIA/NPPO

Transport/Logistics

Customs Clearance

Quarantine Clearance

S W A T S W A T

* SWAT: Single Window for Agri-food Trade

Role of IT Service Provider

• SP can think outside the box and bridge processes across silos

• Introduce interoperability of systems

• Adopting global best practices

• Manage resistance to change

• Sustainability .. Funding if available; alternate model is Fee-for-Service model

Key Take Away

• Vision and commitment from top management

• Support from “champions” on the ground

• Public-Private partnership and collaboration

• Leverage on available resources – local and global

• Work at speed for initial success – then move to the next

Q & A