SW ESCWA TF WS

1
Regional training workshop on Requirements for
the establishment of Single Windows for handling
export/import procedures and formalities in the
ESCWA Region
Conditions and requirements for the establishment
of a Single Window
3-4 March 2011 Beirut/ Lebanon
United Nations Conference on Trade and Development
2
Single Window

1. Concept
2. How does it facilitate trade?
3. How does it relate to the TF negotiations?
4. What is proposed under the heading of Single
   Window?

3
Proposed definition

• "A Single Window is 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 33

4
An institutional arrangement

• To channel and process the exchange of
  information
• From business to government (B2G)
• business to business (B2B)
• government to government (G2G)
• For all required international trade and
  transport procedures and documentation

5
Expected benefits

• For government and trade
• Faster processes, clearance and release
• Reduced costs of compliance
• Reduced corruption
• Reduction in bureaucratic processes
• Better collection of government revenues
• Improved trader compliance
• Risk management techniques for control and
  enforcement purposes
• Predictable application and explanation of rules

6
Implementation costs

• From less than one million US dollars (Guatemala)
• To between 1and 4 million dollars (Finland,
  Senegal, Malaysia).
• These are "publicly disclosed costs"
• but some see investment and operational
  figures differently

7
Costs in Single Window

• Design Development Costs
• gt US15M to 20M
• Cost increases if
• SW (to Customs)
• SW (Customs 20 OGAs)
• SW Customs Mgt Backend
• Time to implementation
• 2 years ?

• Operating Costs
• gtgt US 2M per annum
• Operate, Support Maintenance of SW assets
• Drive Adoption Training
• Min. 40 to 50 staff
• Continual support for Network, Systems, Security,
  Training
• Servicing to Trading Community Customs, OGAs

8
Choices to be made
9
There are choices to be made

• Institutional model
• Technologies
• Business model
• Standards implemented
• Legal and regulatory reforms

10
Institutional model

• Customs centric
• Under the lead of another agency (ies)
• Based on a specific users/providers platform
  usually private sector based
• Centralised or decentralised coupled with
  physical passage of goods (borders, freight
  terminals, ports, aiports, dry ports)

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Manage and oversee cross border trade operations
ASYCUDA NEXT
Defense, weapons
Technical control of vehicles
Agriculture, food and drugs
Chemicals, precursors
Banks, financial institutions
Control of origin labels
Endangered species (CITES)
Carriers, freight handlers
Customs centric Single Window
Port, airport authorities
Trade operators
Statistical department
Customs brokers
Public treasury
Health, medicines
Insurances
Technical norms, electric, etc.
Waste, (Basel convention)
Nuclear
Quality control, precious metal
12
Technologies

• Proprietary system development
• Outsourced development including off the shelf
  package solutions
• National or international sources
• Open or closed system (in particular to other
  users and community systems like in ports or non
  national users as well as)
• Centralized or descentralized processing
  (maintenance costs and security issues involved)

13
Business Model

• 100 public
• 100 private (through concessions)
• Public and Private partnership
• Profit or not for profit
• Pure Cost recovery or subsidised operation or a
  mix of both (user fees per operation, annual
  charges, etc. )

14
Standards adopted

• International standards currently dvelopped and
  constantly improved by UN CEFACT, WCO Data Model
  based on UNTDED.
• Most existing single windows comply only
  partially with these international standards
• Most existing single windows were designed for
  internal (national) purposes
• Future single windows will have to be compliant
  with international standards if they are meant to
  interface with regional and other international
  partner institutions, community systems and
  individual operators

15
Legal and regulatory reforms

• Regulatory frameworks to define changes in
  processes and delegation of authorities
• Trade procedures and laws should take into
  consideration electronic signatures, documents
  and data elements
• International standards.

16
Existing SW models

• Business Model
• 100 public (Finland, Sweden, United States),
• Mainly or all private (e.g. Guatemala, Germany)
• Public-private partnership (e.g. Ghana,
  Mauritius, Senegal, Singapore)
• The use of Single Window
• compulsory (Finland, Guatemala, Mauritius,
  Senegal)
• voluntary (Germany, Malaysia, Sweden, United
  States)
• Services
• Free on charge (Finland, Sweden, United States)
• Paid based on various payment schemes (Guatemala,
  Germany, Malaysia, Mauritius, Senegal, Singapore)

17
Success factors

• Strong leadership, which can come from the public
  sector (Malaysia, Senegal, United States,
  Singapore) or the private sector (Guatemala)
• Cooperation and commitment of all stakeholders,
  private and public (Finland, Mauritius, Malaysia,
  Senegal, United States, Singapore)
• User-friendly system, which do not create
  complications for usual business procedures
  (Malaysia, Sweden, Senegal, United States)
• Investments in modern technologies (Guatemala,
  Malaysia)
• Phased, flexible approach (Germany, Mauritius,
  Singapore)
• Neutrality, transparency and reliability of the
  proposed technical solution (Hong Kong SAR
  (China))

18
Regional Single Window Initiatives

• Regional Single Window initiatives, such as
• ASEAN
• APEC
• European Commission
• Key to regional initiatives is International
  Standards

19
Single Window at WTO

• Stand-alone measure under simplification of
  formalities (Article VIII)
• It applies also to other areas and proposed trade
  facilitation rules
• Border Agency Cooperation
• Publication
• Aspects of Release and Clearance
• Acceptance of Electronic Copies

20
Elements to keep in mind

• Single Window requires careful planning and
  design as much long term sustainable operational
  arrangements
• Choices have to be made and sequences defined at
  early stages
• Major multilateral developments are taking place
  at regulatory and technical levels (WCO,
  UNCITRAL, UNCEFACT)
• Considering risks and long implementation time
  and costs, learning from experiences and best
  practices is recommended

21
THANK YOU!
Regional training workshop on Requirements for
the establishment of Single Windows for handling
export/import procedures and formalities in the
ESCWA Region
José María Rubiato(jose.rubiato_at_unctad.org)
Trade Logistics Branch
3-4 March 2011 Beirut/ Lebanon