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KTNETwww.ktnet.com
Private-Public Partnerships on trade facilitation in
North-East Asia
-- from the perspective of from the perspective of Korean Paperless Trade Service ProviderKorean Paperless Trade Service Provider
August, 2013
Sung Heun Ha (Rama)
KTNET
< Contents >
2. PPP for Cross-Border Paperless Trade
1. Paperless Trade in Korea
3. Lessons Learned
2. PPP for Cross-Border Paperless Trade
3. Lessons Learned
1-3. World Best Paperless Trade
1-1. Needs for Paperless Trade in Korea
Tons of trade documentsRapid growth of trade volume
Bottleneck in trade process
1-2. Legal Support
• 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
Legal background for Paperless Trade in Korea
1-2. Legal support: e-Trade Facilitation Act
Foreign Trade Act
General Provision
(Definition)
Scope of National PTBusiness
e-Document,Standard
Facilitation of e-Trade
Nationale-Trade
Committee
National PTInfrastructure
Operator
Security,Management
PenalProvision
Framework Act on Electronic Transaction
Customs Act
Commercial Act
Marine Transportation Act
Digital Signature Act
Telecommunications Business Act Criminal Act
ELECTRONIC TRADE FACILITATION ACT, DECREE
Commercial Act
National Technical Qualifications Act
Main Contents and Referred Laws
1-3. World Best Paperless Trade: Platform
PrivateSector
PrivateSector
ServiceProviderServiceProvider
GovernmentSector
GovernmentSector
Marketing Finance Trade Insurance Logistics Customs Payment
Marketing Finance Trade Insurance Logistics Customs Payment
Insurance Companies
• BanksBig Companies SME’s
Contents
CommunityConnection
BuyerBuyer
SellerSeller
Commerce
CustomizationCommunication
Contents
CommunityConnection
BuyerBuyer
SellerSeller
Commerce
CustomizationCommunication
Freight Forwarders
Air Lines/Shipping Lines
MarketResearch
MarketResearch
MOTIE, KCS, Ministry of Justice, Bank of Korea, Ministry of Strategy and Finance… ..
National Paperless Trader Infrastructure Provider
National Paperless Trade Platform: Connecting Private and Public Sectors
KTNET connects all the trade communities and government agenciesproviding users’ single and central access point for Paperless Trade
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.
§ 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
§ Manifest, e-B/L§ General Declaration§ Cargo Visibility§ API, ACI
§ PAA Initiative § Korea-Taiwan
e-C/O Paperless Trade Initiative
KoreanSingle Window
1. Paperless Trade in Korea
2. PPP for Cross-Border Paperless Trade2-1. Bilateral PPP for paperless trade
2-3. Korea-China PPP for paperless trade
3. Lessons Learned
2-2. Korea-Japan Cooperative Committee
2-4. Cross-Border Paperless Trade Project
2-1. Bilateral PPP for paperless trade
To overcome the limitation of private sector, KTNET has initiated and joined Private-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
KTNET-Japan Summit Meeting: Two Governments agreed on Cross-Border 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
KTNET
TEDI
Mitsubishi Corp.
2-2. Korea-Japan Cooperative Committee (1)
Hyundai Motors
KTNET
TEDI
Mitsubishi Corp.
Nippon Steel
Bank of TM
Korea Exchange Bank
Sin Sung Marine
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
Hyundai HYSCO Sumitomo Corp.
Itochu Marubeni Corp.Hyundai Heavy Industry
2-2. Korea-Japan Cooperative Committee (2)
2-3. Korea-China PPP meeting for Paperless Trade
The 5th Korea-China Private-Public Partnership Meeting for Paperless Trade in Seoul, 25 Oct. 2012
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
Participants from Korea Participants from China• Ministry of Knowledge
Economy • Korea International Trade
Association• KTNET
• Ministry of Commerce• CIECC (Cofortune)
CargoCargoStatus InformationStatus Information
(with Export Manifest information)(with Export Manifest information)
TruckerTerminal
Export Declaration &
Manifest LoadingDeparture
ArrivalDischarging
Import Declaration &Manifest
Bonded Warehouse
Trucker
Query by Query by B/L number or B/L number or Cargo NumberCargo Number
§CIECC KTNET
Dalian Shanghai
Tianjin
Qingdao All Korean PortsOrigin Destination
Web Service
Forwarder Web
Trader
Web ServiceTrader
Forwarder Web
§* Both Inbound and Outbound Model is applicable
Diagram of Korea-China Cargo Visibility Service Project
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2-4. Cross-Border Paperless Trade Project: Cargo Tracking
Exporter
RepositoryRepository
KTNET
RepositoryRepository
Trade-VanjCO APP
kECO (for view)
lInv, P/L
(specify ECO Number)
lInv, P/L,
Attach
ECO from
repository
lInv, P/L, ECO Importer
jCO
APPORGkECO
CERTIF
KCCI Customs
oImport Declaration
ECO confirmed by importer
oImport
Declaration
Customs Broker
m Sign to confirm ECO
Assign Customs Broker
n Generate Import
Declaration Data
ECO Enquiry on KCCI Website
With ID and Password
Korea Chinese Taipei
e-C/O (Electronic Certificate of Origin) exchange between Korea and Chinese Taipei
Next Phase : Cross border e-Phyto Certificate exchange 15
2-4. Cross-Border Paperless Trade Project: e-C/O
1. Introduction of KTNET
2. Pride of Korean Single Window
3. Lessons Learned
3-2. Lessons from Experiences3-1. Benefits of PPP meeting
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
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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)
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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
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