KTNET Private-Public Partnerships on trade facilitation in North-East Asia

Private-Public Partnerships on
trade facilitation in
North-East Asia
- from the perspective of
Korean Paperless Trade Service Provider
August, 2013
Sung
Heun
Ha
(Rama)
KTNET
www.ktnet.com
KTNET
< Contents >
1. Paperless Trade in Korea
2. PPP for Cross-Border Paperless Trade
3. Lessons Learned
1-3. World Best Paperless Trade
2. PPP for Cross-Border Paperless Trade
3. Lessons Learned
1-1. Needs for Paperless Trade in Korea
Rapid growth of trade volume
Tons of trade documents
Bottleneck in trade process
1-2. Legal Support
Legal background for Paperless Trade in Korea
• Korean government enacted the Act on the Promotion of Trade
Business Automation in December 1991 to enhance the
competitiveness of Korean trade industry by promoting the trade automation
• With the introduction of new ICT technologies, Korean government enacted
Digital Signature Act and Framework Act on Electronic
Transaction in July 1999, to establish the basic framework and to
promote their use of electronic transaction on a national level. Framework Act on
Electronic Transaction was wholly amended in 2002 clarifying more on legal
relationship, customer protection, privacy and promotion on e-Transaction.
• In December 2005, in response to the global trend encouraging the
establishment of National Single Window and the rapid change of ICT
environment, Korea government enacted
Electronic Trade Facilitation
Act, which was wholly revised from the Act on the Promotion of Trade Business
Automation
1-2. Legal support: e-Trade Facilitation Act
ELECTRONIC TRADE FACILITATION ACT, DECREE
Main Contents and Referred Laws
General
Provision
(Definition)
Scope of
National PT
Business
e-Document,
Standard
National PT
Infrastructure
Operator
Penal
Provision
Facilitation
of e-Trade
Framework Act on Electronic Transaction
Foreign Trade Act
National
e-Trade
Committee
Digital Signature
Act
Commercial
Act
Telecommunication
s Business Act
Customs Act
Commercial Act
Marine
Transportation Act
National Technical
Qualifications Act
Criminal Act
Security,
Management
1-3. World Best Paperless Trade: Platform
National Paperless Trade Platform: Connecting Private and Public Sectors
KTNET connects all the trade communities and government agencies
providing users’ single and central access point for Paperless Trade
Big Companies
SME’s
Insurance
Companies
Freight
Forwarders
Air Lines/Shipping
Lines
• Banks
Private
Private
Sector
Sector
Market
Research
Contents
Commerce
Community
Connection
Customization
Communication
Market
Research
Finance
Trade
Insurance
Logistics
Customs
Payment
National Paperless Trader Infrastructure Provider
Seller
Buyer
Service
Service
Provider
Provider
Marketing
Marketing
Finance
Trade
Insurance
Logistics
Government
Government
Sector
Sector
MOTIE, KCS, Ministry of Justice, Bank of Korea, Ministry of Strategy and Finance… ..
Customs
Payment
1-3. World Best Paperless Trade: Services
KTNET provides internet based Paperless Trade services which support
the whole cycle of trade process for the first time in the world.
585 different kinds of e-documents based on both domestic and Int’l
standards and 289 Million transactions in 2012.
§
§
§
§
§ PAA Initiative
§ Korea-Taiwan
e-C/O Paperless
Trade Initiative
Korean
Single Window
§
§
§
§
Manifest, e-B/L
General Declaration
Cargo Visibility
API, ACI
P/O, Invoice, P/L
Certificates/License
e-C/O, Tax Invoice
Purchase Confirmation of
raw material, Local L/C
§ e-L/C, e-L/G
§ e-Negotiation
§ Settlement
§ Export Clearance
§ Import Clearance
§ Duty Draw-back
1. Paperless Trade in Korea
2. PPP for Cross-Border Paperless Trade
2-1. Bilateral PPP for paperless trade
2-2. Korea-Japan Cooperative Committee
2-3. Korea-China PPP for paperless trade
2-4. Cross-Border Paperless Trade Project
3. Lessons Learned
2-1. Bilateral PPP for paperless trade
To overcome the limitation of private sector, KTNET has initiated and joined P
rivate-Public Partnership Programs with major trading countries
Korea-Japan meeting for paperless trade (2002 ~ 2004)
• Regular participants: MOTIE(Ministry of Trade, Industry and Energy) and KTNET
of Korea, METI(Ministry of Economy, Trade and Industry) and TEDI of Japan
ASEAL (Asia-Europe Alliance for Paperless Trade, 2004 ~)
• Founding Members: Government and paperless service providers of Korea,
England, France and German
Korea-China Private-Public Partnership Meeting for Paperless
Trade (2006 ~)
• Regular participants: MKE, KITA and KTNET from Korea, MOFCOM(Ministry of
Commerce) and CIECC from China
Korea-Chinese Taipei Private-Public Partnership Meeting for
Paperless Trade (2005 ~)
• Regular Participants: MKE, Korea Chamber of Commerce and Industry and
KTNET from Korea, BFT(Bureau of Foreign Trade), Customs and Trade-Van from
Chinese Taipei
2-2. Korea-Japan Cooperative Committee (1)
KTNET-Japan Summit Meeting: Two Governments agreed on CrossBorder e-Commerce in Aug. 2000
- Agreed on establishing ‘Cooperative Committee to Construct the Korea-Japan
Paperless Trade Infrastructure’
1st Korea-Japan Cooperative Committee to Construct Paperless Trade
Infrastructure Meeting (Nov. 2002, Tokyo)
- First Private and Public Partnership meeting for cross-border paperless trade
- The Committee was comprised of Government (MOCIE of Korea and METI of
Japan) and Private Sector (KTNET of Korea and TEDI of Japan)
Representatives
- Agreed on Cross-Border Paperless Trade Pilot Project
Hyundai Motors
K
T
N
E
T
T
E
D
I
Mitsubishi Corp.
2-2. Korea-Japan Cooperative Committee (2)
2nd Korea-Japan Cooperative Committee Meeting (Mar. 2003, Seoul)
- The Committee agreed on
. Bi-annual Meeting
. the expansion of the service from pilot to production
. Korea-Japan FTA e-Certificate of Origin
3rd Korea-Japan Cooperative Committee Meeting(Jan. 2004, Tokyo)
- The Committee agreed on
. e-B/L and e-Negotiation (Presentation) Pilot Project
. the expansion of the service users
Mitsubishi Corp.
Hyundai Motors
Hyundai HYSCO
Hyundai Heavy Industry
Korea Exchange Bank
K
T
N
E
T
T
E
D
I
Sumitomo Corp.
Itochu Marubeni Corp.
Nippon Steel
Sin Sung Marine
Bank of TM
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2-3. Korea-China PPP meeting for Paperless Trade
The 5th Korea-China Private-Public Partnership Meeting for Paperless Trad
e in Seoul, 25 Oct. 2012
Participants from Korea
Participants from China
• Ministry of Knowledge
Economy
• Ministry of Commerce
• CIECC (Cofortune)
• Korea International Trade
Association
• KTNET
Outcomes
• Close collaboration and common stance
on paperless trade issues at
the international org. (APEC, PAA)
• Expansion of Korea-China
Cargo Visibility Service Project
• Feasibility study on e-B/L and
e-C/O exchange
2-4. Cross-Border Paperless Trade Project: Cargo Tracking
Diagram of Korea-China Cargo Visibility Service Project
Web Service
Trader
Web Service
Query by
B/L number or
Cargo Number
§CIECC
Forwarder Web
Trader
KTNET
Forwarder Web
Cargo
Status Information
(with Export Manifest information)
All Korean Ports
Qingdao
Origin
Tianjin
Dalian
Destination
Shanghai
Trucker
Trucker
Terminal
Export
Declaration &
Manifest
Arrival
Loading
Departure
§* Both Inbound and Outbound Model is applicable
14
Import
Declaration
&Manifest
Discharging
Bonded
Warehouse
2-4. Cross-Border Paperless Trade Project: e-C/O
e-C/O (Electronic Certificate of Origin) exchange between Korea and Chin
ese Taipei
ECO Enquiry on KCCI Website
With ID and Password
KCCI
Customs
jCO
APPORG
oImport Declaration
ECO confirmed by importer
kECO
CERTIF
Exporter
lInv, P/L, ECO
KTNET
jCO APP
kECO (for view)
Repository
lInv, P/L
lInv, P/L,
Attach
ECO from
repository
Trade-Van
Repository
m Sign to confirm ECO
Assign Customs Broker
n Generate Import
Declaration Data
(specify ECO Number)
oImport
Declaration
Korea
Chinese Taipei
Customs Broker
Next Phase : Cross border e-Phyto Certificate exchange
15
Importer
1. Introduction of KTNET
2. Pride of Korean Single Window
3. Lessons Learned
3-1. Benefits of PPP meeting
3-2. Lessons from Experiences
4-1. Benefits from PPP meeting
Benefits to Government
• Be the leader in trade facilitation among other countries
• Guarantee the authenticity of the cross border documents, reduce the possibilit
y of fraud
• Reduce effort in paper documents verification
• Speed up customs clearance process
• Better service to international trade community
Benefits to Traders
• Save time and costs in applying and sending over paper documents
• No need to get a stamp/seal on the paper (guarantee of authentic documents)
• Transmit cross border documents in a secure online environment
• Optimize global supply chain management
• Speed up customs clearance process
• Expedite cargo delivery and pick up à saving warehouse cost
17
4-2. Lessons from experiences (1)
Facilitate cross-border private and public dialogue
• Encourage Government to facilitate or join bilateral or multilateral
communication channel with major trading countries for cross-border
paperless trade
• Utilize regional paperless trade collaboration framework such as APEC and
APTFF for bilateral arrangement
Develop Killer B2G service / project
• Initiate essential government related B2G services such as e-C/O, e-SPS
(Sanitary – Phyto Sanitary) Certificate
Create marketing incentives
• Promote cross-border paperless trade by adding values and incentives to the
service (lower cost, simplification and standardization)
18
4-2. Lessons from experiences (2)
Revisit legal infrastructure
• Remove remain requirements for paper documents or seal/stamp in the law
Share knowledge and technology
• Actively participate into international activities (such as forum, seminar and
capacity building program) to share experiences and bridge the digital divide
in paperless trade
• Provide technical consulting services and solutions to plan and develop
paperless trade infrastructure
Do not expect short term outcome
• Prepare for a long journey and conduct effective program management includ
ing thorough communication among stakeholders
19
Thank you for your attention!
Rama HA
([email protected])