utradehub - Korea s s National Single Window for Paperless Trading Lee
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1 utradehub - Korea s s National Single Window for Dr. Jae-hyun Lee Paperless Trading Korea e-trade e Facilitation Committee Managing Director, e-biz e Bureau Korea International Trade Association
2 Contents 1. What is Single Window for Trade Facilitation? 2. Why Do We Need It? : Korean Case 3. Where Are We Now? : e-trade Korea 2007 Project 4. utradehub: Korea s Single Window 5. Critical Success Factors 6. Challenges Ahead
3 1. What Is Single Window?
4 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. If information is electronic, then individual data elements should only be submitted once.
5 Single Window Models Model 1: Single Authority Model 2: Single System
6 Model 3: Single Information Transaction System Single Window Models
7 Single Window Models Korean Case User Trade Chain License/ Certificate Authority Traders Electronic Single Window Customs Service Bank Logistics Company Global Network
8 Benefits of Single Window National Competitiveness Improvement One Stop Paperless Trade Service Lower business cost and greater productivity for traders Expedited trade document processing Reinforced transaction security
9 Benefits Categorized On government side Higher transparency in corporate activities Correct revenue yields Improved trader compliance On private side Minimizing data reentry and reducing errors and inefficiencies Expedited Procedures Cutting cost Maximum usability with one-stop service
10 Global Trends of Single Window Countries Summary Singapore Hong Kong Taiwan Proponent of global pathfinder projects (e-c/o) TradeXchange project launched in 2007 DTTN Project of Tradelink and HKSAR * DTTN : Digital Trade and Transportation Network Total trade service by TradeVan (VAS provider) covering cargo clearance, global logistics, e-commerce and etc Efforts to integrate various services into SSO window Japan Connection Portal linking various service providers and government agencies for total and integrated trade services
11 2. Why Do We Need It?
12 Korea s Trade Volume Million USD 350, ,000 Total Export Total Import 286, , , , , , , , , ,000 65,016 69,843 50, ,291 17, ,
13 International trade in Korea * CAGR: Compound Annual Growth Rate Tons of trade documents Bottleneck in trade process 1
14 Problems of Paper Based Trade Enterprises High transaction cost High transaction cost Long lead time Long lead time Incorrect processing Incorrect processing Government Complex regulation Complex regulation Lack of transparency Lack of transparency Difficulty in Difficulty in monitoring monitoring National Competitiveness Decreased 2
15 3. Where Are We Now? : e-trade e Korea 2007 Project
16 Development Stage of Korea s e-trade Single Window Development Single Window : u Trade Hub ESTABLISHMENT Act on Promotion of e-trade Foundation of common e-trade Platform based on VAN / EDI INITIAL SERVICE L/C, E/L, I/L Offer, Insurance Export Clearance 1st (1990~1999) SERVICE EXPANSION Import Clearance Manifest Tariff Refund MOVE to INTERNET Starting Web-based Service Certificate of Origin Letter of Guarantee Delivery Order 2nd Establishment of electronic trade platform e-trade Document Repository Integrated and consolidated one-stop trade services 3rd (1999~2002) (2003~) Stage
17 Milestones in Korea s e-trade In 1989, Korean government initiated - Comprehensive Trade Automation Plan In 1991, Korea enacted Trade Automation Act In 1991, Korea Trade Network (KTNET) was established by Korea International Trade Association (KITA) In 1992, Korea Customs Service designated KTNET as sole customs automation service provider In 2003, National e-trade Committee was established (Chair :PM) In 2004, BPR/ISP for e-trade Process Innovation In 2005, e-trade Service Project, 1 st Stage In 2006, e-trade Service Project, 2 nd Stage
18 Vision Vision e-trade KOREA, Innovation 2007 A leading e-trade nation in the 21st century Build Internet-based national paperless trade infrastructure Innovate on existing trade services and processes Lead international cooperation to realize global wide paperless trade Reform laws and regulations to accelerate the dissemination of paperless trade throughout Korean trading and logistics communities 3 Phase Plan Phase1 Phase2 Phase3 Building Core Infrastructure (2005) Enhancing Infrastructure (2006) Upgrading User Environment (2007)
19 Organization (Korea Paperless Trade Center) Foundation Founded in Jan in KITA after BPR/ISP Project(Jun. 2004) Role : Project Management Office Implementation of 33 tasks from e-trade Korea 2007 roadmap Secretariat of National e-trade Committee National e-trade e Committee Chair : Prime Minister e-trade Facilitation Committee Korea International Trade Association Korea Paperless Trade Center Platform W/G Law W/G Finance W/G Logistics W/G Marketing W/G Global W/G e-tp PM e-tdr Law Reform e-l/c e-nego RFID e-l/g e-d/o e-mp e-catalog Solutions e-c/o e-b/l APEC,ASEM Bilateral Networking
20 4. utradehub : Korea s s Single Window for Paperless Trading
21 Conceptual Model
22 The utradehub Portal Site
23 Categorized Service Marketing integrated marketing information hub Licensing/Certification licensing/certification procedures required for import/export Trade Finance e-lc Service to finance exporters Customs Clearance export/import related customs clearance operations via the Internet. Logistics Logistics services for traders, shipping lines, forwarders etc. Payment Paperless presentation of negotiation documents and payment
24 Featured Architecture : utrade Document Repository Traders Related Party Government 은행 e-document Lifecycle Management Metadata Registry Form & Version Association of e-document Business Relationship u-trade Document Repository Electronic Document Circulation e-document Validation & Certification Secure Access Control e-document Encryption
25 utradehub: Benefits One stop service integrates existing paperless trading services in Korea Reduces business cost and improves productivity Expedites trade document processing Offers smart service based on BPM (business process management)
26 5. utradehub : Success Factors
27 Critical Success Factors Strong leadership by government Budget IT infrastructure (Network, Hardware, Software) System Integration experience Legal framework readiness e-readiness of Industry Adopting International standards and trends
28 Strong Leadership and PPP Strong Leadership by Government A Typical Government Bank Leaders meeting
29 IT Infrastructure of Korea Broadband Network 24.9 No. 1 in Broadband Internet Penetration Rate subscriber/100 persons 19 (Source: OECD, 2005) 서울2 서울2 서울1 서울1 1위 위 Korea Netherlands Canada Japan U.S. 대전 대전 No. of broadband subscribing households: 11.8 million (77%) 대구 대구 부산 부산 Korea s Broadband Penetration 광주 광주 Households Penetration : 80%(2005) - Available to over 97% of population Schools All Primary & Secondary Schools Connected to Broadband (Sept. 2000)
30 Legal Infrastructure Digital Signature Act Trade Transactions Facilitation Act Foreign Trade Act Customs Law Electronic Transactions Act e-trade Facilitation Act In 1991, Enacted Trade Automation Act In 2004, Revised the Act to e-trade Facilitation Act
31 6. Challenges Ahead
32 Connectivity to the global trade Encouraging Industry Awareness and Adoption Establishing International Standard ebxml the UN Trade Data Elements Directory (UNTDED) UN EDIFACT WCO Data Model etc Connection among National Single Windows Mutual Authentication and systemic connectivity
33 Korea s Initiatives as an e-trade Leader e-certificate of Origin Pathfinder Project - Korea-Chinese Taipei e-bill of Lading Project - Connecting national SWs for title documents - APEC Initiative by Korea - Singapore s TradeXchange as a project partner e-negotiation Project - Pilot project with China - Presenting negotiation documents in electronic formats and complete electronic payment
34 Thank you! (Q&A)
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