uTradeHub - Korea

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uTradeHub- Koreas National Single Window for
Paperless Trading
Dr. Jae-hyun Lee Korea e-Trade Facilitation
Committee Managing Director, e-Biz Bureau Korea
International Trade Association
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Contents

• 1. What is Single Window for Trade Facilitation?
• 2. Why Do We Need It? Korean Case
• 3. Where Are We Now? e-Trade Korea 2007 Project
• 4. uTradeHub Koreas Single Window
• 5. Critical Success Factors
• 6. Challenges Ahead

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1. What Is Single Window?
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Single Window Definition

• UN/CEFACT Recommendation 33
• 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.

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Single Window Models
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Single Window Models
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Single Window Models
User
Trade Chain
License/ Certificate Authority
Customs Service
Single Window
Electronic
Traders
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Benefits of Single Window

• National Competitiveness Improvement
• One Stop Paperless Trade Service
• Lower business cost and greater productivity for
  traders
• Expedited trade document processing
• Reinforced transaction security

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Benefits Categorized
On government side
On private side

• Higher transparency in corporate activities
• Correct revenue yields
• Improved trader compliance

• Minimizing data reentry and reducing errors and
  inefficiencies
• Expedited Procedures
• Cutting cost
• Maximum usability with one-stop service

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Global Trends of Single Window
Countries
Summary

• Proponent of global pathfinder projects (e-C/O)
• TradeXchange project launched in 2007

• DTTN Project of Tradelink and HKSAR
• DTTN Digital Trade and Transportation
  Network

Hong Kong
Taiwan

• Total trade service by TradeVan (VAS provider)
  covering cargo clearance, global logistics,
  e-Commerce and etc
• Efforts to integrate various services into SSO
  window

Japan

• Connection Portal linking various service
  providers and government agencies for total and
  integrated trade services

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2. Why Do We Need It?
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Koreas Trade Volume
Million USD
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International trade in Korea
CAGR Compound Annual Growth Rate
Bottleneck in trade process
Tons of trade documents
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Problems of Paper Based Trade
Government
Enterprises
Enterprises
Government

• High transaction cost
• Long lead time
• Incorrect processing

• Complex regulation
• Lack of transparency
• Difficulty in
• monitoring

• High transaction cost
• Long lead time
• Incorrect processing

• Complex regulation
• Lack of transparency
• Difficulty in monitoring

National Competitiveness Decreased
National Competitiveness Decreased
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3. Where Are We Now? e-Trade Korea 2007 Project
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Development Stage of Koreas e-Trade
Single Window
Development
Single Window u Trade Hub

• Establishment of electronic trade platform
• e-Trade Document Repository
• Integrated and consolidated one-stop trade
  services

MOVE to INTERNET

• Starting Web-based Service
• Certificate of Origin
• Letter of Guarantee
• Delivery Order

SERVICE EXPANSION

• Import Clearance
• Manifest
• Tariff Refund

INITIAL SERVICE

• L/C, E/L, I/L
• Offer, Insurance
• Export Clearance

ESTABLISHMENT

• Act on Promotion of e-Trade
• Foundation of common e-Trade Platform based on
  VAN / EDI

Stage
1st
3rd
2nd
(19901999)
(19992002)
(2003)
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Milestones in Koreas e-Trade

• In 1989, Korean government initiated -
  Comprehensive Trade Automation Plan
• In 1991, Korea enacted Trade Automation Act
• In 1991, Korea Trade Network (KTNET) was
  established by Korea
• International Trade Association (KITA)
• In 1992, Korea Customs Service designated KTNET
  as sole customs automation service provider
• In 2003, National e-Trade Committee was
  established (Chair PM)
• In 2004, BPR/ISP for e-Trade Process Innovation
• In 2005, e-Trade Service Project, 1st Stage
• In 2006, e-Trade Service Project, 2nd Stage

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Vision
Vision

• Build Internet-based national paperless trade
  infrastructure
• Innovate on existing trade services and processes
  
• Lead international cooperation to realize global
  wide paperless trade
• Reform laws and regulations to accelerate the
  dissemination of paperless trade throughout
  Korean trading and logistics communities

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Organization (Korea Paperless Trade Center)

• Foundation
• Founded in Jan. 2005 in KITA after BPR/ISP
  Project(Jun. 2004)
• Role Project Management Office
• Implementation of 33 tasks from e-Trade Korea
  2007 roadmap
• Secretariat of National e-Trade Committee

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4. uTradeHub Koreas Single Window for
Paperless Trading
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Conceptual Model
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The uTradeHub Portal Site
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Categorized Service

• Marketing
• integrated marketing information hub
• Licensing/Certification
• licensing/certification procedures required for
  import/export
• Trade Finance
• e-LC Service to finance exporters
• Customs Clearance
• export/import related customs clearance
  operations via the Internet.
• Logistics
• Logistics services for traders, shipping lines,
  forwarders etc.
• Payment
• Paperless presentation of negotiation documents
  and payment

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Featured Architecture uTrade Document
Repository
Traders
Related Party
Government
Electronic Document Circulation
u-Trade Document Repository

• e-Document Lifecycle Management
• Metadata Registry
• Form Version
• Association of e-Document Business Relationship

• e-Document Validation Certification
• Secure Access Control
• e-Document Encryption

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uTradeHub Benefits

• One stop service integrates existing paperless
  trading services in Korea
• Reduces business cost and improves productivity
• Expedites trade document processing
• Offers smart service based on BPM (business
  process management)

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5. uTradeHub Success Factors
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Critical Success Factors

• Strong leadership by government
• Budget
• IT infrastructure (Network, Hardware, Software)
• System Integration experience
• Legal framework readiness
• e-Readiness of Industry
• Adopting International standards and trends

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Strong Leadership and PPP
Strong Leadership by Government
A Typical Government Bank Leaders meeting
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IT Infrastructure of Korea
?subscriber/100 persons
24.9
(Source OECD, 2005)
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17.8
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12.8
1?
2?
Korea
Netherlands
Canada
Japan
U.S.
No. of broadband subscribing households 11.8
million (77)
Koreas Broadband Penetration

• Penetration 80(2005)
• - Available to over 97 of population

• All Primary Secondary Schools
• Connected to Broadband (Sept. 2000)

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Legal Infrastructure
In 1991, Enacted Trade Automation Act In
2004, Revised the Act to e-Trade Facilitation
Act
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6. Challenges Ahead
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Connectivity to the global trade

• Encouraging Industry Awareness and Adoption
• Establishing International Standard
• ebXML
• the UN Trade Data Elements Directory (UNTDED)
• UN EDIFACT
• WCO Data Model etc
• Connection among National Single Windows
• Mutual Authentication and systemic connectivity

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Koreas Initiatives as an e-Trade Leader

• e-Certificate of Origin Pathfinder Project
• - Korea-Chinese Taipei
• e-Bill of Lading Project
• - Connecting national SWs for title documents
• - APEC Initiative by Korea
• - Singapores TradeXchange as a project
  partner
• e-Negotiation Project
• Pilot project with China
• Presenting negotiation documents in electronic
  formats and complete electronic payment

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Thank you ! (QA)