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Dawn of the U.S. Single Window Era Donald J. Lewis Monterey Bay International Trade Association 11 th Annual Global California Conference Santa Cruz, CA December 3, 2014

ACE and Beyond: An Advanced Single Window Model for California and the U.S. - by Donald Lewis, Consultant

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Dawn of the U.S. Single Window Era

Donald J. Lewis Monterey Bay International Trade Association

11th Annual Global California Conference

Santa Cruz, CA December 3, 2014

• The US Single Window will fully launch by the end of 2016

• The Single Window will completely transform international trade ushering in the Age of Global Electronic Trade

• Single Window development has involved decades of preparation by the US and IGOs, including UNECE, UN/CEFACT, WCO and WTO

• Single Window is part of the larger international Trade Facilitation movement – which will further revolutionize US Customs procedures and provide a range of benefits for SMEs and Global Supply Chains

What is Trade Facilitation?

“Simplification and harmonization of international trade procedures, including activities, practices, and formalities involved in collecting, presenting, communicating and processing data required for the movement of goods” (WTO/UNCTAD)

“Trade facilitation generally refers to the simplification, harmonization, use of new technologies and other measures to address procedural and administrative impediments to trade” (APEC)

WTO Trade Facilitation Agreement (TFA)

• Adopted at the WTO Bali Ministerial (Dec. 2013) • TFA coverage: Simplification and harmonization of import/export

procedures and forms Development of “Single Window” Paperless, Automated

Systems Rapid release of goods (e.g., pre-arrival clearance, authorized

traders, posting of security) Use of international standards (e.g., WCO Data Model,

UN/EDIFACT, UN Lay-out Key (UNLK), UN/CEFACT and UNe-Docs)

What is the Single Window?

The core feature of all TF systems

The “Single Window”:

"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 No. 33 (2004)

President’s Executive Order Streamlining Export/Import Process for America's Businesses

• WTO TFA as Impetus for Presidential Executive Order • Primary Focus: U.S. Single Window Deployment by Dec. 2016 Roll-out of International Trade Data System (ITDS) and

Automated Commercial Environment (ACE) Adoption of Paperless, e-transmission of trade transaction

data and documents via U.S. Single Window to CBP and other U.S. government agencies (i.e. B2G)

Covers both Imports and Exports Simplified/expedited cargo clearance and approvals by U.S.

agencies • Advantages/benefits for SMEs and Global Supply Chains

The U.S. Single Window - ACE and ITDS • ACE is the U.S. Single Window

• ITDS is the process by which Partner Government Agency (PGA) trade-related data requirements are incorporated into ACE architecture

• ACE is a work-in-progress w/ current partial functionality

• CBP is the lead agency developing/managing ACE • CBP and 47 USG agencies (PGAs) involved in ITDS and

ACE deployment • Four principal components of the ACE/ITDS system

Implementing the Single Window - ACE/ITDS

ACE Functionality for Trade

Important ACE Deadlines

Beyond ACE

• ACE is an impressive milestone in Trade Facilitation and Global E-Commerce, but is only part of the picture

• President’s Executive Order raises some tantalizing glimpses of the future

• Unsettled policy areas: Subnational Single Windows in the U.S. Integrated B2G/B2B Single Windows Interoperability and integration of ALL national Single

Windows globally via a common ICT platform

Beyond ACE

• The most advanced Single Window systems involve not only B2G interactions (i.e. w/ PGAs) but also B2B linkages (involving e-logistics and e-payment platforms)

• Examples: • Korea U-Trade Hub • Singapore TradeNet, TradeXchange, Crimson Logic • Hong Kong Tradelink

• Large opportunities exist for Silicon Valley ICT leaders and start-ups to construct such B2B systems (and related apps) on top of the ACE ICT infrastructure

Beyond ACE

• The Korean Advanced Single Window System

Beyond ACE • Interoperability/integration of ALL national Single

Windows globally • Major current focus of IGOs: Draft UN/CEFACT

Recommendation No. 36

• U.S. CBP is organizing a work program for post-ACE international harmonization of national Single Windows

First Priority: Harmonization of Single Windows between U.S. and Canada, Mexico AND China

Medium-Term Priority: APEC E-Trading Hub

Beyond ACE

TradePort, ACE and China TradePort

• California’s only online trade portal

• Joint venture between Bay Area Council and LA Chamber of Commerce, managed by MBITA

• Currently serves 60,000 California importers and exporters

• Currently has online Trade Promotion (TP) services

• TradePort is the perfect California B2B ICT platform to complement U.S. ACE