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Emerging Trends in
Cross Border Trade
Dr. Yoonsay Jeong
Korea International Trade Association
Global Trends of Nat’l Single Window
Nation
Nation Single Window Projects
Single Window Projects
•TradeXchange to be launched in Oct 2007
Singapore
Singapore
• DTTN Project of Tradelink and HKSAR
HongKong
HongKong * DTTN : Digital Trade and Transportation Network
• Total trade service by TradeVan (VAS provider) covering cargo
• Total trade service by TradeVan (VAS provider) covering cargo
clearance, global logistics, e-Commerce and etc
clearance, global logistics, e-Commerce and etc
Taiwan
Taiwan
• Efforts to integrate various services into SSO window
• Efforts to integrate various services into SSO window
• Connection Portal linking various service providers and
• Connection Portal linking various service providers and
Japan
Japan government agencies for total and integrated trade services
government agencies for total and integrated trade services
• uTradeHub officially launched in May 2007
• uTradeHub officially launched in May 2007
Korea
Korea • Services to be added/integrated/upgraded by early 2008
• Services to be added/integrated/upgraded by early 2008
Single Window Definition
• UN/CEFACT Recommendation 33
A facility that allows parties involved in
trade and transport to lodge standardized
information and documents with a single
entry point to fulfill all import, export and
transit-related regulatory requirements.
Single Window Concept
The Basic Concept
User Trade Chain
Forwarder
Bonded Warehouse
Transaction
Warehouse
Airliners
Electronic Shippers
Single
Single
Window
Window Transport/CY
Inspection
Quarantine
Paper
Government Services
Global Network
Benefits of Single Window
• Process innovation
• Cost reduction
• Time saving
• Prevention of loss/counterfeit of trade documents
• Less delay
• Transparency of procedures
Benefits Categorized
On government side On private side
• Cutting cost
• Correct revenue yields
• Faster clearance
• Improved trader
compliance • Higher predictability
• Easy control and • More effective and
enforcement efficient deployment of
resources
ROI
Quantitative Analysis (Korean Case)
• Investing USD 80 Million for three and half years
(2004.7~2007.12)
• Saving USD 1.6 Billion/Year nationally by Using e-Trade
Platform
Process Innovation
Process Innovation Process
- -Time and costs
Time and costs Innovation
Trade Offline
e-Trade Document Circulation System
e-Trade Document Circulation System Transaction Online
- -Avoid rekey and repetitive submission Cost
Avoid rekey and repetitive submission
Offline Document Online
- -Offline Document Online
Process e-Document
e-Trade Service Framework
e-Trade Service Framework Productivity Repository
- -Reduce IT Investments for SME
Reduce IT Investments for SME Service
- -Enhance Productivity
Enhance Productivity Framework
Roadmap of Single Window Platform
Process Centric
Process Centric 3rd Generation : e-Trade Platform
N:N Networking
N:N Networking
Seamless Service User Type : Hub, SP, B2B
Seamless Service
e-Trade Service
e-Trade Infrastructure
Interface
B2B Messaging Hub
Standard
B2G Repository Registry
B2G t
n
Cu rr e
2nd Generation : e-Trade Hub on Internet
Data Centric
Data Centric 1st Generation : Trade Automation
1:1 Networking
1:1 Networking
Closed/Domestic
Closed/Domestic Open/Global
Open/Global
EDI
EDI Any Contents
Any Contents
Critical Success Factors
Legal Readiness
Strong leadership by Government
Public & Private Cooperation
Covers not only B2B but B2G, G2G
Budget Availability
IT Infrastructure (Network, Hardware, Software)
System Integration Experience
e-Readiness of Industry
Adopting International Standards and Trends
Single Window Platform Architecture
e-Trade Platform e-Trade
Single Window
User Interface
Interface Interface
Web System
for Web e-Trade System for
Services Integration
Related Services Portal Integration Global
Parties Network
Declaration
Settlement
Certificate
Marketing
Insurance
Financial
Customs
Logistics
License
Service
Service
Message
Service Framework
Message
Data
e-Trade Document Circulation System
Messaging e-Document e-Standard
Hub Repository Registry
Application
eBL Core Component
eLC Dictionary
Transformation eLG
Messaging Broker XML Schema
and more
Single Window User Interfaces
User Interface e-Trade Service
Service Framework
e-Trade Document Circulation System
1 2 3
User Framework
User Framework Application Framework
Application Framework Operation
Operation
Framework
Framework
e-Trade e-Trade e-Trade
Trading e-Trade Portal Service Service Service
Company Contact
(Scale:Small) Personalization Center
e-Trade SSO
Partner Content Management Service Components
Solution
CRM
Web Services
Interface
Trading Core Technical Layer
Company Web Services
Listener Data
(Scale:Medium Container
) Warehouse
Business Process Management
System-to-
ERP System
SCM Integration Application Server / OS Disaster
(Communication Recover
Gateway) y Center
Trading System Management
Company Internet Based Billing
Protocol & Security System
(Scale:Large)
Milestones of Korea’s e-Trade
In 1989, Korean government initiated
“Comprehensive Trade Automation Plan”
In 1991, Korea enacted “Trade Automation Act”
KITA established KTNET
In 1992, KCS designated KTNET as sole customs automation
service provider
In 1996, KTNET provided logistics service through MFCS
Korea completed electronic customs clearance
system through VAN/EDI
In 2003, National e-Trade Committee was established
(Chair :Prime Minister)
In 2004, BPR/ISP for e-Trade Process Innovation
In 2005, 3 Year ‘eTrade 2007 Project’ launched
In 2007, uTradeHub Service was launched
e-Trade Korea 2007 Vision
Vision e-Trade KOREA, Innovation 2007
A leading e-Trade nation in the 21st century
• Every company can trade in the most economic and efficient way via the internet
• Simplify the process, higher productivity, deregulation
• Economic effects Cut trade cost by US$14.5 billion
Increase exports by US$7.9 billion
3 Phases Plan
Phase1 Phase2 Phase3
Building Core Enhancing Upgrading User
Infrastructure Infrastructure Environment
(2005) (2006) (2007)
Korea Paperless Trade Center
Foundation
Founded in Jan. 2005 in KITA after BPR/ISP Project(Jun. 2004)
Role : Project Management Office
Implementation 33 tasks of ‘e-Trade Korea 2007’ roadmap
Secretariat of National e-Trade Committee
National e-Trade Committee Private e-Trade Committee
Chair : Prime Minister Chair : Dr. Jung Uck, Seo
Administrative Committee
Chair : Vice Minister of MOCIE
Korea Paperless Trade Center
Platform Law Finance Logistics Marketing Global
W/G W/G W/G W/G W/G W/G
e-TP PM Law Reform e-L/C RFID e-MP e-C/O
e-TDR e-Nego e-L/G e-Catalog e-B/L
e-D/O Solutions APEC,ASEM
Bilateral Networking
Legal Infrastructure
Foreign Trade Act
Electronic
Transactions
Digital Signature Act
Act
e-Trade Facilitation
Act
Trade Transactions
Facilitation Act Customs Law
In 1991, Enacted ‘Trade Automation Act’
In 2005, Revised the Act into ‘e-Trade Facilitation Act’
uTradeHub
u Trade Hub (Single Window)
u-Trade
Service u Trade Hub Portal Web Service e-Trade Doc Repository
Framework
Export Affair Service e-Docs Export
e-Document Work Process Management L/C
Financial
Trading Management (BPM) Institute
Company/consi Register Local
gnor Logistics Info. L/C
Service Area Basic Portal
u Trade Service Research Purchase
Function e-TDR Service Confirmation
Delete
Export
License
u Trade Portal u Trade Service e-Doc Delivery
WEB
Import
License
Logistics
Policy Mgmt Company
Financial Logistics/ Additional
Licensing
Settlement Customs Information Doc Delivery C/O
사
용 Integrated DB
` Info Mgmt Trade
Approvals
자 Web Services
Legacy Interface Letter of
Certificate Mgmt Guarantee
연 BPM Meta Info Management
계 Licensing
Delivery
Monitoring/ User Mgmt Agency
Setting Data Dic/Model Code/Terms Order
Reporting
Traceability Related Service Insurance
Engine Repository Import/Export Mgmt
/Visibility Policy
Gateway
VAN /EDI Interface BPM
EAI KTNET e-L/C System Trade Service Messaging Hube-Trade Doc
EDI DocumentsTranslation Link Link Link System Link Repository Link KCS/
XML Documents Customs
Linkage Broker
KTNET (existing service)e-L/C Management Messaging Hub
CTI L/C Management Messaging Translation Center
Infra Area
MFCS Balance Management Telecommunication Gateway
Legend
ASPLine Nego Management Authentic
XML EDI
ation
Messaging translation
Service
Global Connectivity
What do we need to accomplish seamless
paperless trade through global connectivity?
• Standards
-Data element and document format
-Trade process and requirements
And/ OR
• Application Integration
AND • Legal/Policy Components
- Mutual agreement on validity of the e-Docs/ e-process
• Industry compliance/acceptance
AND - Support for user-friendly environments/solution
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