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Trade Facilitation and the Role of Information Technology

Trade Facilitation and the Role of Information Technology. Gerald Ollivier Transport Specialist golliver@worldbank.org. Comprehensive Approach to Increase Trade, Productivity and Economic Growth. Trade Liberalization Agreements. Increase demand. Market Intelligence.

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Trade Facilitation and the Role of Information Technology

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  1. Trade Facilitation and the Role of Information Technology Gerald Ollivier Transport Specialist golliver@worldbank.org

  2. Comprehensive Approach to Increase Trade, Productivity and Economic Growth Trade Liberalization Agreements Increase demand Market Intelligence Links between large firms and SMEs Supply Chain Integration Links between foreign and local firms Process and Product Innovation Technology adoption and quality improvements Quality Standards and Norms Managerial and organizational improvement Improve Supply (Production Offer) Foreign Direct Investment Ensure consistency between supply and demand Education and Training Firms-Universities Networks InfrastructureandLogistics Information and Communication Technologies (ICT) Reduce Costs Labor costs Transaction costs Access to credit Facilitation of transit, transport and trade Source: Adapted from Guasch L., power point presentation for the LAC internal workshop on Competitiveness (May 2003) and Honduras Project Appraisal Document/Sue Goldmark’s presentation.

  3. RFQ for tooling 3-D specs DWS 9 revised 3-D specs DWS BOL Pack list Invoice Cert. Orig BOL Pack list Invoice Cert. Orig 9A 16 15 15 9A 9A BOL BOL BOL BOL BOL BOL Parts die set Parts die set die set ICL software production database production database RFQ for casting tooling ICL Quotation approval 13 12 11 2 14 3 1 10 6 8 4 5 7 software PC PC Purchase Order 3-D specs DWS Samples? Reports Get final approval ICLogistics Host Trading Partners common data ICL Master Software Purchase Order Servers with ICL software Central Repository Meta data / definitions Quotes, POs, Invoices, etc Application of e-integration: GTN application DC MEX -Receive Tremec quote & requests Metz quote -Approves Metz quote and sends PO to Metz -Sends “die set” to Metz -Approves eng. changes -Recv/Tests new tooling -Send report to Tremec -Send samples to Tremec -Get final approval e-mail paper METZ USA Company Tool & Tie e-mail Quotation response Prepares tool engineering docs (3-D DWS) Applies engineering changes to tooling Tests new tooling Generates dimension reports Fixes tooling and prepares ship docs e-mail e-mail e-mail Mexico USA F R T FORWARD BDP INTL C U S T O M S F R T FORWARD BDP INTL C U S T O M S ERP die set ERP BDP XML / EDI Portal BDP XML / EDI Portal Carrier Tracking Systems Carrier Tracking Systems e-mail Quotation response Supplier Collaboration utilizing internet Microsoft Technologies “BizTalk” ICLogistics Data Concept e-mail Tremec Requirements Planning Engineering Scheduling Manufacturing FORD MEXICO USAID GTN Source: Adapted from M. Tallent, ICLogistics

  4. IMPORT Pay Taxes Clear Customs Release Goods MANUFACTURING/ VALUE ADDED EXPORT Air, Sea, Land International Transport DOMESTIC SUPPLY CHAIN /Dues Customs Storage Port Raw Materials Packaging Transport Storage • Port Processes • Internal Transport • Storage • Container Handling • Loading Ship’s Documents “Informal Processes” IMPORTER • Manifest • Bills of Lading • Sea/AW Bill • Container Plans • Quotations • P.O.s • Delivery Notes • Con. Notes • Invoices • Statements • Invoice • Packing List • Declaration • Delivery Note • Payments • Remittance • Advice Book/Confirm Transport Shipping Documents Pay Taxes Clear Customs Release to Port /Dues Foreign Chambers Commerce • Certificates • Of Origin MANUFACTURER Port Port Customs Customs • P.O. • Contract Terms • Delivery Instructions • L.O.C. Informal Processes • Invoice • Packing List • Declaration • Delivery Note Receive Goods Overseas Embassies • “Legal • Invoices” EXPORTER FOREIGN BUYER Post/ Courier • Certificates • Of Origin • Form A • EUR.1 Chamber of Commerce Finance Ministry Pay Bank Bank • Licenses • Certificates • Government • Approvals • Licenses • Certificates • Government • Approvals Government Departments L.O.C. Packing List Invoice LOC Approval LOC Courier Source: Adapted from H. Alavi, MNSIF

  5. TF and IT Challenges • Procedure/documentary streamlining comes first • IT only an effective and supporting tool • Gradual approach (Customs first) with global vision • Gain private sector support through early wins • IT ultimately needs to cover all trade/border agencies • Champion at high governmental level • Organize cooperation with neighboring countries • Limited availability of ready made applications  challenge of internal development • Limited capacity to manage a multi agency activity and resistance to change

  6. Selected ECA Experience • Most ECA Customs projects include sizable IT components (Russia, Turkey) • Trade and Transport Facilitation in Southeast Europe I and II • South Caucasus

  7. Single Window Success Factors • High political mandate • First detailed analysis, followed by process and documentary reengineering/streamlining with all key players (border agencies, transport, traders…) • Use global standards (WCO, UN…) • Baseline indicators and performance measurement • Needed minimum infrastructure • Facilitating exchange of information: Common and intelligent network, international standards,regulatory framework for e-signature

  8. Useful Resources • Customs Modernization Handbook (IT chapter) • UNECE Recommendation 33 on Single Electronic Window • Task Manager ICT toolkit • Global Facilitation Partnership for Transportation and Trade • http://www.gfptt.org/Entities/TopicList.aspx • E commerce and business, E-documents, Single Window environment, electronic standards/EDI

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