UNNExT Workshops on Trade Facilitation Almaty, Kazakhstan 4-6 May 2015

UNNExT Workshops on Trade Facilitation
UNNExT Workshop on Trade Facilitation and Paperless Systems for
Agrifood Products
Almaty, Kazakhstan
4-6 May 2015
1
BUSINESS PROCESS ANALYSIS OF THE EXPORT OF PROCESSED
FRUITS FROM KYRGYZSRAN TO KAZAKHSTAN
BUSINESS PROCESS ANALYSIS OF THE
EXPORT OF PROCESSED FRUITS
FROM KYRGYZSTAN
(IMPORT TO KAZAKHSTAN)
URMAT TAKIROV (KYRGYZSTAN)
YELENA VASILEVSKAYA (KAZAKHSTAN)
Workshop on Trade Facilitation and Paperless Systems for
Agrifood Products, Almaty, Kazakhstan, 4-6 May 2015
BUSINESS PROCESS ANALYSIS OF THE EXPORT OF PROCESSED
FRUITS FROM KYRGYZSRAN TO KAZAKHSTAN
WHY EXPORT OF THE PROCESSED FRUITS FROM KYRGYZSTAN IS
IMPORTANT?
65 % of Kyrgyzstan's population lives in rural areas
30% of Kyrgyzstan’s GDP accounts for agricultural sector
22% of Kyrgyz exports (excluding gold) accounted for exports of fruits and vegetables
Volumes of production of fruit and vegetables in Kyrgyzstan increase (see chart)
Traditionally, the Kyrgyzstan one of the main partners of Kazakhstan on imports of fruits
and vegetables
Due to the small transport component, Kyrgyz fruits are competitive in the market of
Kazakhstan in terms of cost and quality
Opportunities of fruits export volume growth = the growth of population of Kazakhstan +
the displacement of the products from other countries
3,000.00
2,500.00
Grape
2,000.00
Fruits and berries
1,500.00
Melons
1,000.00
Vegetables
Potatoes
500.00
0.00
2008
2009
2010
2011
2012
2013
BUSINESS PROCESS ANALYSIS OF THE EXPORT OF PROCESSED
FRUITS FROM KYRGYZSRAN TO KAZAKHSTAN
MAIN DELIVERY ROUTES OF IMPORT FRUITS
FROM KYRGYZSTAN TO KAZAKHSTAN
BUSINESS PROCESS ANALYSIS OF THE EXPORT OF PROCESSED
FRUITS
FROM
KYRGYZSRAN
BUSINESS
PROCESS
ANALYSISTOOFKAZAKHSTAN
THE EXPORT OF PROCESSED
FRUITS FROM KYRGYZSRAN TO KAZAKHSTAN
2. Ship
1. Buy
2.1. Apply for Sanitary and
Epidemiological
ConclusionKR
Department of State
Sanitary and
Epidemiological
Surveillance KR
1.Contract
conclusion
Laboratory of
the DSSES KR
2.2. Apply for Certificate of
Conformity (voluntary) KR
Quality
Certification Body
KR
Exporter
2.3. Registration of
Declaration of Conformity
RK
Conformity
assessment body
Research
laboratory
2.4. Apply for Certificate of
Origin KR
3. Pay
Chamber of
Commerce and
Importer's
bank
3.1.Payment
Industry of KR
2.5. Arrange transportation
KR
Importer
Cargo company
2.6. Pass phytosanitary
inspection of vehicle of KR
Exporter's
bank
Phytosanitary
inspection KR
2.7. Apply for customs
declaration and clearance in
KR
Customs
broker KR
KR Customs
Bank
2.8. Pass border crossing
control of KR
Border Gourd
Service of KR
State Customs
Service of KR
2.9. Preliminary custom
information * in RK
2.10. Border crossing
procedures RK
USE CASE OF IMPORT
PROCESSED FRUIT
Customs
broker RK
Customs
checkpoint
2.11. Payment of customs
duties and taxes RK
Customs Bank
2.12. Customs clearance RK
Customs
Importer’s Bank
3 process areas of supply chain:
• Sale - 1 business process
• Delivery - 12 business processes
• Payment - 1 business process
21 stakeholders
BUSINESS PROCESS
BUSINESS
ANALYSIS
PROCESS
OF THE
ANALYSIS
EXPORT
OF OF
THEPROCESSED
EXPORT OF
FRUITS FROMPROCESSED
KYRGYZSRAN
FRUITS
TO KAZAKHSTAN
FROM KYRGYZSRAN TO KAZAKHSTAN
Core business process area 2.1:
„APPLY FOR SANITARY AND
EPIDEMIOLOGICAL CONCLUSION”
Participants:
Department of State Sanitary
and Epidemiological Surveillance
under the Ministry of Health of
KR (DSSES)
Laboratory of the DSSES of KR
Exporter
Consists of 12 steps
Average time required: 12
days
Cost: 30$
Output and criteria to exit the
business process: Exporter obtained
the Sanitary and Epidemiological
Conclusion at the DSSES
Regulation: 6 regulatory
documents
BUSINESS PROCESS
BUSINESS
ANALYSIS
PROCESS
OF THE
ANALYSIS
EXPORT
OF OF
THEPROCESSED
EXPORT OF
FRUITS FROMPROCESSED
KYRGYZSRAN
FRUITS
TO KAZAKHSTAN
FROM KYRGYZSRAN TO KAZAKHSTAN
Core business process area 2.2.
“APPLY FOR CERTIFICATE OF
CONFORMITY “(VOLUNTARY)
Stakeholders:
Quality Certification Body
Exporter
Consists of 8 steps
Average time required: 3-5 days
Cost: 60$
Output and criteria to exit the
business process: Exporter obtained
the Certificate of Conformity.
Regulation: 7 regulatory
documents
BUSINESS PROCESS ANALYSIS OF THE EXPORT OF PROCESSED
FRUITS FROM KYRGYZSRAN TO KAZAKHSTAN
Importer
Conformity assessment body
Research laboratory
Core business process area 2.3.
“REGISTRATION OFDECLARATION OF
CONFORMITY”
2.3.1. Inquiry for obtaining a
samples requirements list
Sale contract
2.3.3. Obtain of samples
from the exporter
2.3.2. Samples requirement list
Requires of sample
size
2.3.4. Conclusion of a
contract for test and
inspection services
2.3.5. Conclusion of a
contract for test and
inspection services
Contract with
laboratory
Contract with
Importer
Stakeholders:
Importer
The body of conformity for this product
Research laboratory
2.3.6. Pay for service of
laboratory
Payment receipt
2.3.7. Feed samples for
test
Product samples
2.3.8. Tests and inspection
Application form
Consists of 11 steps
Average time required: 7-10 days
C: 70$
Payment receipt
2.3.9. Pay for service of
authority conformity
Test results
Payment receipt
2.3.10. Submission of
declaration for registration
Test results
Application
Payment receipt
License of
Laboratory for
activity
2.3.11. Accuracy of declaration,
products conformity
Output and criteria to exit the business
process: Importer certifies compliance of
products with existing technical
requirements, obtains a declaration’s
registration number and get a right to import
his goods to the territory of Customs Union.
Completed
Declaration
not
confirmed
confirmed
Registration number
assigned to Declaration
Regulation: 9 regulatory
documents
BUSINESS PROCESS ANALYSIS OF THE EXPORT OF PROCESSED
FRUITS FROM KYRGYZSRAN TO KAZAKHSTAN
TIME-PROCEDURE CHART FOR IMPORT OF PROCESSED FRUITS
FROM KYRGYZSTAN TO KAZAKHSTAN
BUSINESS PROCESS ANALYSIS OF THE EXPORT OF PROCESSED
FRUITS FROM KYRGYZSRAN TO KAZAKHSTAN
COST-PROCEDURE CHART FOR IMPORT OF PROCESSED FRUITS
FROM KYRGYZSTAN TO KAZAKHSTAN
BUSINESS PROCESS ANALYSIS OF THE EXPORT OF PROCESSED
FRUITS FROM KYRGYZSRAN TO KAZAKHSTAN
RECOMMENDATIONS FOR OPTIMIZATION OF TRADING PROCESSES:
1. In connection with the accession of Kyrgyzstan to the Customs Union:
 Will be excluded the five business processes in customs clearance, namely:
obtain certificate of origin (2.4.)
customs declaration and clearance Kyrgyz Customs (2.7)
preliminary customs information in Kazakhstan (2.9)
payment of customs duties and taxes in Kazakhstan (2.11)
customs clearance Kazakh Customs (2.12)
 Will be harmonized and simplified procedures of conformity assessment of products:
confirmation of compliance will be enough in one country(2.1-2.3.)
2. Required measures to simplify the registration process of the Declaration of
conformity. To do this
to adopt the requirements in terms of research
to ensure the possibility of self-determination (exporter or importer) of volume
production for research
to oblige of the body confirmation to implement a system for filing documents in online mode
3. Implementation of electronic signature for international contracts will reduce the time
of execution of business process 1.1 to 1 day
BUSINESS PROCESS ANALYSIS OF THE EXPORT OF PROCESSED
FRUITS FROM KYRGYZSRAN TO KAZAKHSTAN
REDUCING THE DELIVERY TIME OF EXPORT FRUITS AFTER THE ACCESSION OF THE
KYRGYZSTANC IN THE CUSTOMS UNION
BUSINESS PROCESS ANALYSIS OF THE EXPORT OF PROCESSED
FRUITS FROM KYRGYZSRAN TO KAZAKHSTAN
SUMMARY
Implementation of measures on optimization of trading processes
will REDUCE:
delivery time up to 17 days (in the EDS implementation for
international contracts to 7 days)
the cost of delivery almost in three times
AS A CONSEQUENCE,
THE VOLUMES OF OF THE
EXPORT OF PROCESSED
FRUITS
FROM KYRGYZSTAN TO
KAZAKHSTAN MAY
INCREASE SIGNIFICANTLY