Single Window(s) and the U.S.-China Cyber Silk Road
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1 Single Window(s) and the U.S.-China Cyber Silk Road Donald J. Lewis Co-Founder U.S.-China Trade & Innovation Center (USCTIC) An Initiative of the Institute for Innovation and Economic Development (iied) California State University Monterey Bay (CSUMB) Integrating Global Trade & Logistics and Cybersecurity (IGTLC) Conference San Francisco, CA November 12-14, 2015
2 The US Single Window will fully launch by the end of 2016 The Single Window will completely transform international trade ushering in the Age of Global Electronic Trade Single Window development has involved decades of preparation by the US and IGOs, including UNECE, UN/CEFACT, WCO and WTO Single Window is part of the larger international Trade Facilitation movement which will further revolutionize US Customs procedures and provide a range of benefits for SMEs and Global Supply Chains
3 What is Trade Facilitation? Simplification and harmonization of international trade procedures, including activities, practices, and formalities involved in collecting, presenting, communicating and processing data required for the movement of goods (WTO/UNCTAD) Trade facilitation generally refers to the simplification, harmonization, use of new technologies and other measures to address procedural and administrative impediments to trade (APEC)
4 WTO Trade Facilitation Agreement (TFA) Adopted at the WTO Bali Ministerial (Dec. 2013) TFA coverage: Simplification and harmonization of import/export procedures and forms Development of Single Window Paperless, Automated Systems Rapid release of goods (e.g., pre-arrival clearance, authorized traders, posting of security) Use of international standards (e.g., WCO Data Model, UN/EDIFACT, UN Lay-out Key (UNLK), UN/CEFACT and UNe-Docs)
5 What is the Single Window? The core feature of all TF systems The Single Window : "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. If information is electronic then individual data elements should only be submitted once. - UN/CEFACT Recommendation No. 33 (2004)
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8 President s Executive Order Streamlining Export/Import Process for America's Businesses WTO TFA as Impetus for Presidential Executive Order Primary Focus: U.S. Single Window Deployment by Dec Roll-out of International Trade Data System (ITDS) and Automated Commercial Environment (ACE) Adoption of Paperless, e-transmission of trade transaction data and documents via U.S. Single Window to CBP and other U.S. government agencies (i.e. B2G) Covers both Imports and Exports Simplified/expedited cargo clearance and approvals by U.S. agencies Advantages/benefits for SMEs and Global Supply Chains
9 The U.S. Single Window - ACE and ITDS ACE is the U.S. Single Window ITDS is the process by which Partner Government Agency (PGA) trade-related data requirements are incorporated into ACE architecture ACE is a work-in-progress w/ current partial functionality CBP is the lead agency developing/managing ACE CBP and 47 USG agencies (PGAs) involved in ITDS and ACE deployment Four principal components of the ACE/ITDS system
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11 Implementing the Single Window - ACE/ITDS
12 ACE Functionality for Trade
13 Important ACE Deadlines
14 Beyond ACE ACE is an impressive milestone in Trade Facilitation and Global E-Commerce, but is only part of the picture President s Executive Order raises some tantalizing glimpses of the future Unsettled policy areas: Subnational Single Windows in the U.S. Integrated B2G/B2B Single Windows Interoperability and integration of ALL national Single Windows globally via a common ICT platform
15 Beyond ACE The most advanced Single Window systems involve not only B2G interactions (i.e. w/ PGAs) but also B2B linkages (involving e-logistics and e-payment platforms) Examples: Korea U-Trade Hub Singapore TradeNet, TradeXchange, Crimson Logic Hong Kong Tradelink Large opportunities exist for Silicon Valley ICT leaders and start-ups to construct such B2B systems (and related apps) on top of the ACE ICT infrastructure
16 Beyond ACE The Korean Advanced Single Window System
17 Beyond ACE Interoperability/integration of ALL national Single Windows globally Major current focus of IGOs: Draft UN/CEFACT Recommendation No. 36 U.S. CBP is organizing a work program for post-ace international harmonization of national Single Windows First Priority: Harmonization of Single Windows between U.S. and Canada, Mexico AND China Medium-Term Priority: APEC E-Trading Hub
18 Beyond ACE
19 TradePort, ACE and China TradePort California s only online trade portal Joint venture between Bay Area Council and LA Chamber of Commerce, managed by MBITA Currently serves 60,000 California importers and exporters Currently has online Trade Promotion (TP) services TradePort is the perfect California B2B ICT platform to complement U.S. ACE
20 TradePort, ACE and China The Way Forward: U.S./California-China Cyber Silk Road Joint inter-governmental cooperation between U.S. CBP and China Customs on harmonized, interoperable B2G Single Windows U.S. and China subnational domestic development of integrated B2G/B2B ICT systems The California-China e-trade Superhighway: Joint development of cross-border, interoperable B2G/B2B E-trading systems between China and California TradePort: California s partner for both ACE and China
21 The U.S./California-China Cyber Silk Road China s One Belt, One Road Initiatives China s New Silk Road - Central Asia, Asian Infrastructure Investment Bank (AIIB) China s Maritime Silk Road - Southeast Asia, India, Middle East, Africa * The Third Road: U.S./California-China Cyber Silk Road * U.S.-China Presidential Summit (Sept 2015) Bifurcated Summit: Seattle and Washington DC Seattle Meeting: IT and Bay Area Leaders meet with President Xi and Lu Wei, China s Internet czar, at Microsoft-sponsored Internet Industry Forum Cyber Issues predominate in both Seattle and DC (not simply Cybersecurity)
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23 What is the U.S./California-China Cyber Silk Road? See our USCTIC op-ed in Caixin Online (Sept 22 nd ): interoperable U.S.-China Single Windows joint Online Dispute Resolution (ODR) systems joint academic, industry, scientific, technical, legal, and innovation smart interactive ICT platforms or intranets (also known as COINs) Big Data Analytics Internet of things; and Smart Cities, Smart Ports, and e-government Platforms California-China Cyber Silk Connections The Cyber Initiative: Stanford-Berkeley-MIT collaboration, launched by President Obama, funded by Hewlett Foundation (Jan 2015) MBITA/TradePort: B2B Single Window Project GO-Biz-China Ministry of Commerce: Joint e-portal Initiative
24 The U.S./California-China Cyber Silk Road Cyber Silk Road (CySR): a Game-Changer Transformative: potential to change the face of U.S.-China bilateral relations and how e-commerce and e-government as well as education, research, and innovation are conducted Legal Cooperation: leadership role for the California legal community and U.S. Federal and California courts in devising the Rules of the (Silk) Road ICT and Commercial Opportunities: staggering commercial and technology opportunities for Silicon Valley and California IT firms through collaborative ICT innovation, e-commerce and trade facilitation w/ Chinese counterparts CySR implementation should translate into billions of dollars worth of economic growth for the California economy
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