Thailand Single-Window e-Logistics for Paperless Trading

Dr. Somnuk Keretho Director, Institute for IT Innovation, Kasetsart University Advisor to Ministry of Transport, and Minister of Information and Communications Technology for Thailand Single g Window e-Logistics g Project j
APEC-UN Joint Capacity Building Symposium on Paperless Trading 26-28 May 2008, Seoul

Outline
A National Strategic g Agenda g Trade Facilitation Enhancement with Single Window e e-Logistics Logistics Needs and Requirements of Single Window Scope and Architecture of Thailand SWeL Step-by-Step Path to Single Window Lessons Learned & Recommendations

APEC-UN Joint Capacity Building Symposium on Paperless Trading, 26-28 May 2008, Seoul

Trade logistics cost, efficiency, responsiveness and security need improvement.

The State of Thailand Logistics

Note: Logistics cost/GDP in Thailand becomes 19% in 2007.

This is our threat, but also our opportunity i to improve.

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APEC-UN Joint Capacity Building Symposium on Paperless Trading, 26-28 May 2008, Seoul

Logistics Development Master Plan (2007 -2011)

endorsed by the Cabinet on Feb 2007

Vision
Objectives

Having World-class National Logistics Environments to become a Trade Hub for Indochina
1.Reducing logistics cost (Cost Efficiency), increase business Responsiveness, Reliability and Security 2.Create Value-Added on logistics industry and related business

Strategic Agenda

Improve Improve efficiency Logistics efficiency in transport and in industry logistics g

B ild Build Logistics Service Providers Business

Enhance Trade Facilitation

Build Human Resources in Logistics

To reduce the trade logistics g cost from 19% (2007) to 16% (2011) (comparing to GDP)
A National Logistics Committee chaired by the Prime Minister, including Economic Ministries, & Industry Associations spearheads and leads the development of this Logistics master plan.

Single Window e-Logistics

Action Plan to develop data exchange platform among government different g agencies i and db business i related to import/export procedures
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Strategic Agenda - 4 Trade Facilitation Enhancement*

Government & Private Stakeholders (e-Logistics ( g National Sub-committee is formulated) )

Key Strategies

Ministry of Finance, Ministry of Commerce, Ministry of Agriculture, Ministry of Science and Technology, Ministry of ICT, Ministry of Transport, Ministry of Health, NESDB** Thai Chamber of Commerce, Commerce The Federation of Thai Industries, Industries and Bankers Association of Thailand

Goal: reducing numbers of days for exporting from 24 to 14 days by 2011 (world bank statistics)
* as mandated by the Cabinet
APEC-UN Joint Capacity Building Symposium on Paperless Trading, 26-28 May 2008, Seoul

Development of Single Window Data Entry, and National Single Window Exchange related to import/export trade and transport procedures and document requirements Promoting electronic transaction with e-document exchange and interoperability between G2G G2G, G2B and B2B KPI - Define common standard data set KPI - Improve laws and regulations to enable to adopt of paperless environments. KPI Interoperability (common open protocols)

** NESDB = National Economic and Social Development Board

Procedures and documents necessary to import and export a standardized cargo of goods

Trading Across Borders

Singapore

Thailand

By World Bank www.doingbusiness.org Dec 2007

APEC-UN Joint Capacity Building Symposium on Paperless Trading, 26-28 May 2008, Seoul

Outline
A National Strategic g Agenda g Trade Facilitation Enhancement with Single Window e e-Logistics Logistics Needs and Requirements of Single Window Scope and Architecture of Thailand SWeL Step-by-Step Path to Single Window Lessons Learned & Recommendations

APEC-UN Joint Capacity Building Symposium on Paperless Trading, 26-28 May 2008, Seoul

Benchmarking our country efficiency on trading g across borders

Some indicators help our policy makers to understand the important issues of improving our country competitiveness
Average Time for Export and Import in Days

A world bank comparative study on procedural and documents requirements for importing and exporting standardized cargos in 178 countries (from the purchase order, till the ship left its nearest port). www doingnusiness com Dec 2007 www.doingnusiness.com, (Trading Across Borders)
APEC-UN Joint Capacity Building Symposium on Paperless Trading, 26-28 May 2008, Seoul

because of the delay y on trading g across borders

Economic Impacts

Each additional day of delay (e.g. because of trade logistics procedures) reduces trade by at least 1%
Ref: Trading on Time, Simeon Djankov, Caroline Freund, and Cong S. S Pham, Pham World Bank (2007). (2007)

Direct Direct and Indirect Cost from import/export import/exportrelated procedures and required documents is about 1 1-15% 15% of product cost. .
Ref: Quantitative Assessment of the Benefits of Trade Facilitation, OECD (2003).
APEC-UN Joint Capacity Building Symposium on Paperless Trading, 26-28 May 2008, Seoul

Frozen Shrimps Export from Thailand

15 Parties involved
30 documents & 788 data elements needed to be filled in (~6 e-docs, e-docs and most data elements are filled 30 times!)
1. 2. 3 3. 4. 5. 6. 7. 8. 9. 10 10. 11. 12. 12 13. 14. 15. Proforma Invoice Purchase Order Request for Sampling Test Report Shipping Particulars Booking Confirmation Inland Haulage Booking Form Inland Haulage Booking Confirmation Commercial Invoice Packing List Application Form for Import, Export, Pass Animals/Animal Remains Through Thailand (R. 1/1) Export License (R. (R 9) Insurance Request Form Cover Note Insurance Policy y

16. Export Declaration

17. Goods Transition Control List 18 Request for Port Entry (TKT 308.2) 18. 308 2) 19. Equipment Interchange Receipt

20. Container Loading List 21 Manifest 21.

22. 23. 24. 25. 26. Outward Container List Bill of Lading Request for Health Certificate Health Certificate Request for C/O

27. Certificate of Origin g

28. Halal Certificate 2 29. Application for Irrecoverable Documentary Letter of Credit 30. Letter of f Credit di
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APEC-UN Joint Capacity Building Symposium on Paperless Trading, 26-28 May 2008, Seoul

Current Situation
- Declaration - Invoice - Packing List

New Generation of EDI (ebXML MS/XML Messages/Digital Singnatures)

Paperless Customs Declaration and Clearance

Server

Browser (Request for C/O)

Exporter
Browser (Request for Health Cert.) except Shrimp (Request from Dept of Fisheries)

About 80% are still physical papers not electronic papers yet. Separate ICT islands

Customs Dept

Dept of Foreign Trade

Web-Based Application (Certificate of Origin)

Dept of Livestock Development

Web-Based Application (Health Certificate)

Many Paper Documents

Web-Based Application (Health Certificate)

P Paper H Handling dli and./or d/ W Web-Based b B d Application A li ti (Bill of Lading) Carriers or other logistics service providers
APEC-UN Joint Capacity Building Symposium on Paperless Trading, 26-28 May 2008, Seoul

Dept of Fisheries

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Outline
A National Strategic g Agenda g Trade Facilitation Enhancement with Single Window e e-Logistics Logistics Needs and Requirements of Single Window Scope and Architecture of Thailand SWeL Step-by-Step Path to Single Window Lessons Learned & Recommendations

APEC-UN Joint Capacity Building Symposium on Paperless Trading, 26-28 May 2008, Seoul

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Needs to expand the scope of the National Single Window as defined under

ASEAN Single Window Agreement

Banking & Insurance Industry

National Single Window

e-Customs (e-Declaration, e-Container, e-Manifest)

In 2007, Customs Department has provided Paperless ape ess Customs Custo s Environment with e-Export, e-Import/e-Manifest/ e Import/e Manifest/ e-Container based on ebXML Messaging Services & XML Messages,

Other Government Agencies and other parties to interoperate electronically.

and d getting tti

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based on ebXML Messaging Protocol, Digital Signature and Security Features

An ebXML Pilot Project since 2003 - replacing 2 dump terminals connecting with 2 leased lines to 2 different freight forwarders by only one Internet line without any data elements re-keyed.

Technical Interoperability

Backend IS

Project Participants: Minebea, TKK, CTI, I-Nova/KU, Customs Dept completed the test and back-end integration within ithi 3 months. th

IBM AS 400

Invoice, Packing List 1

Internet

1. Exporter send Invoice, Packing List to Customs Broker 2 Customs 2. C t B k receive Broker i input from Exporter, then process and develop to Customs Declaration ec a a o (CUS (CUSDEC) C) and send to Customs Dept (in 2007 with XML messages)

ebXML bXML Messaging Services 2.0 (with Collaborative Protocol Agreement and Digital g Signatures) g )

Minebea Co. Ltd. (an electronic manufacturer)

B k d IS Backend

2
ebXML Messaging Services 2.0

Open Source SW (ebXML MS v2.0 LIGHTHOUSE) developed by I-Nova/KU, and also training and SW development assistance provided.

- 2 different g Forwarders Freight (Customs Brokers) (two different ICT systems)

2007 Dr. Somnuk Keretho

TKK, and CTI Companies

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EDI/ebXML systems in Thailand [1998-2007] are transforming

Importers Exporters Importers-Exporters Gateway Operators Sea Port Air Port
Trade Siam

Paperless Customs Declaration bMS ebMS

CAT ebMS

Customs Dept

Carriers
Netbay

Krungthai Bank, Thai Tanakarn, etc

Freight Forwarders

ebMS
Other Gov Agencies

ebMS

Port Authority Of Thailand

Importers-Exporters

Value-Added Networks
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ebMS = ebXML Messaging Services, an open protocol for secured technical interoperability.

(its implementation ( p continuously y covers more agencies g & more operations/documents) p / )

Now, technical interoperability standard New Generation of EDI (ebXML/XMLMessages) (e.g. based on ebXML MS) is needed, and common definitions of data elements, and semantic data structures (common data models) Paperless Customs Declaration and Clearance among different documents required by Customs Dept different organizations are required also.

National Single Window

National Single Window

Exporter

Dat ta Harm monizat tion

Web-Services (ebXML) Application (Certificate of Origin)

Dept of Foreign Trade

Goal - Single Window/e-Documents

One time submission for each data element but multiple usage for different purposes on different ICT platforms

Dept of Livestock Development

Web-Services (ebXML) Application (Health Certificate)

Carriers or other logistics service providers

APEC-UN Joint Capacity Building Symposium on Paperless Trading, 26-28 May 2008, Seoul

Web-Services Applications (e.g. Bill of Lading, and other documents)

Web-Services W b S i ( (ebXML) bXML) A Application li ti (Health Certificate)

Dept of Fisheries

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2 Regulation Mechanisms including costing and service level agreements

Software Vendors and Value Value-Added Added Traders and Services Logistics Providers

Electronic Documents Exchange Hub

Government Network
Message Exchange E-Tracking

ICT Systems of Gov Agencies

ebMS

Port Authority Thailand Air Port

Exporter

workflow kfl

VAS
Importer

ebMS

Or others

VAS
Freight F i ht Forwarders Customs Broker

VAS
workflow

Data Submission for e-Customs Declaration, e Manifest e-Manifest, e-Permit, E-License, e-Certificates, etc

National Single Window Exchange (NSW)

ebMS ebMS ebMS

Dept of Disease Control

Dept of Fisheries
e-Customs, e-Manifest, e-Permit, P it e-License, e-Certificates, etc

ebMS
Customs Dept

workflow

ebMS
Dept Foreign Trade Other Government Agencies (29)

DEP
Logistics Services Providers Single Window Entry

6 Key Components for Thailand SW e-Logistics Development

Banks
e-Payment (MICT/Banks) Back-end IT & Messaging Connectivity (MICT:PGA) Process Simplification - NESDB/PGA Data Harmonization -MICT & Customs Digital Signature/Certificate Authority (MICT:CAT:TOT)

ebMS

Cargo Services

Carriers Insurance

ebMS ebMS ebMS

ASEAN Single Window Or other countries

*ebMS = ebXML Messaging Services *DEP = One-Stop Exporter Service Dept of Export Promotion

ICT Infrastructure and Enabling Laws

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Outline
A National Strategic g Agenda g Trade Facilitation Enhancement with Single Window e e-Logistics Logistics Needs and Requirements of Single Window Scope and Architecture of Thailand SWeL Step Step-by-Step by Step Path to Single Window Lessons Learned & Recommendations

APEC-UN Joint Capacity Building Symposium on Paperless Trading, 26-28 May 2008, Seoul

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Evolution of Paperless Trading/Single Window

Stage I (before 1998) - Manual Operations
Face-to-face F t f & paper-based b d operations ti

Stage II (1998-2006) - Customs EDI Services

EDIFACT & Mainframe Mainframe-based based systems (papers & electronics)

Stage III (2006-2008) - Customs Paperless Services

ebXML/XML/PKI Digital Signature (electronic papers only)

Stage IV (2008-2009) - National Single Window (NSW)

Customs Paperless Services, interconnection with Other Oth Government G tA Agencies i exchanging h i e-documents d t th through h NSW with Customs, e.g. e-Permits, requesting forms, etc.

Stage g V (2008-2015) ( ) - Data Exchange g with other countries

ASEAN Single Window (10 Southeast Asia Countries) APEC Single Window (21 Asia-Pacific Asia Pacific member economies)
APEC = Asia Pacific Economic Cooperation
APEC-UN Joint Capacity Building Symposium on Paperless Trading, 26-28 May 2008, Seoul

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Step by Step towards p Trade Single g Window Paperless

6 e-Single Window
>> UN/CEFACT Rec ec 33, 3 34, , 35

Cross Border Data Exchange

>> UNeDocs, UNeDocs WCO DM DM, NDR

National Data Harmonization

>> UNTDED, Standard Codes WCO Data Set, UNeDocs
(e.g. LOCODE),

Document Simplification & Standardization

>> UNLK, , TF Toolkit and Form Repository p y

Process Simplification and Harmonization

>> UN/CEFACT Recommendation 4 & 18 (collaboration between trader and government, establishing e-Document Systems)

1 Process Analysis

>> UMM UMM: UN/CEFACT M Modeling d li Methodology, M h d l WCO Time Release Study, WB Audit Methodology
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APEC-UN Joint Capacity Building Symposium on Paperless Trading, 26-28 May 2008, Seoul

Benefits from Process Analysis & Simplification

Understanding of our own current situations Benchmarking with oneself or other better practices Raising issues and priorities for further improvement Guiding IT Development for related government agencies and business sectors, and also National Single Window Development Providing an expectation or impact of the new process recommendations and its IT-supported systems Guiding elimination of duplicated data

APEC-UN Joint Capacity Building Symposium on Paperless Trading, 26-28 May 2008, Seoul

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A Vessel Entering the Seaport (existing)

Process for Vessel Entering Seaport Marine Dept. Pilots Station Vessel Agent Port Operator

Example of a Process Analysis

Prepare
- Duplicated Information Documents are sent to 3 Receivers manually

Receive

Pilot Request Form

Pilot Assignment

Application for Vessel Entering The Port Area

Receive

Receive

General Declaration

Prepare Equipment

Problems : - Duplicated Information - High Cost and Time for sending and receiving documents - Data Inconsistency
APEC-UN Joint Capacity Building Symposium on Paperless Trading, 26-28 May 2008, Seoul

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Example of a Recommendation Development:

Automation of Vessel Entering the Seaport Process
(e.g. reducing the number of steps, or number of documents, establishing a system that supports e-document submission, and e-document exchange between agencies)
ebXML Gateway

Port Authority of Thailand

ebXML Gateway ebMS National Single g Window (NSW)

ebMS ebXML Gateway Marine Department, Ministry of Transport

Vessel Agent

VAS Application (Value Added Service)

ebXML Gateway

Pilots Station

General Declaration System, y , Marine Dept. (back-end)

Business to Government (B2G) One to Many

Government to Government (G2G) Data Exchange Automatic e-Document Workflow National Single Window Exchange
APEC-UN Joint Capacity Building Symposium on Paperless Trading, 26-28 May 2008, Seoul

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illustrating number of days and main procedures needed for exporting through trucks across a border

Time and Procedure Chart

Ship Transportation
12 days with the recommended new procedures reducing from 20 days with the current procedures
1 2

9 main p procedures
1. Buy (order) 2. Paper preparation before import 3. Paper work during the import 4. Perform cargo insurance 5. Ship docking at the sea port 6. Goods on the ship reporting 7. Cargo Checking on board 8. Cargo Clearance 9 Payment Handling 9.

25 20 15 10 5

3 2

Main Procedures
APEC-UN Joint Capacity Building Symposium on Paperless Trading, 26-28 May 2008, Seoul

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Step by Step towards Paperless p Trade Single g Window

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Based on UNeDocs Data Modeling & Draft UN/CEFACT Rec 34 - Steps for Data Harmonization

e-Single Window
>> UN/CEFACT Rec ec 33, 3 34, , 35

Cross Border Data Exchange

>> UNeDocs, UNeDocs WCO DM DM, NDR

National Data Harmonization

>> UNTDED, Standard Codes WCO Data Set, UNeDocs
(e.g. LOCODE),

Document Simplification & Standardization

>> UNLK, , TF Toolkit and Form Repository p y

Process Simplification and Harmonization

>> UN/CEFACT Recommendation 4 & 18 (collaboration between trader and government, establishing e-Document Systems)

1 Process Analysis

>> UMM UMM: UN/CEFACT M Modeling d li Methodology, M h d l WCO Time Release Study, WB Audit Methodology
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APEC-UN Joint Capacity Building Symposium on Paperless Trading, 26-28 May 2008, Seoul

Thailand Data Harmonization Project based on UNeDocs Data Modeling g

The exercise to capture, define, analyze, reconcile (and propose for its adoption & implementation) 1. A set of common data elements (names & meanings), called, National Standardized Data Set (SDS) 2. its Data Models (Structures) 3. e-Documents Formats (e.g. in XML Schema)
among documents required by Customs Department Other Government Agencies Transport providers Trading Partners Banks k (f (for payment of f related l d tax, services, ..) ) and Insurance-related agencies (for cargo insurances)

such h that h National l Single l Window d Facilities l can enable bl services where h information is submitted once and used many times among many different ICT platforms of those organizations.

APEC-UN Joint Capacity Building Symposium on Paperless Trading, 26-28 May 2008, Seoul

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Example - Data Harmonization of 3 documents

32 Data Elements

Pilot Requirement Form General Declaration Application for Vessel Entering the Port area

96 Data Element s 51 Data Element s

Standardization and Data Harmonization

Vessel Entering
(107 Data Elements)

The user (ship/ship agent) of the new IT system can prepare 107 data elements electronically only one time instead of p preparing p g 32+96+51=179 data elements and submitting paper-based documents three times.
APEC-UN Joint Capacity Building Symposium on Paperless Trading, 26-28 May 2008, Seoul

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Data Harmonization Results

Data Source Data Model XML Schema

Pilot Requirement General Declaration Application for Vessel Entering the Port Area

APEC-UN Joint Capacity Building Symposium on Paperless Trading, 26-28 May 2008, Seoul

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Thailand DH Project - Results and Next Steps

DH Phase 1 (2007) Data Harmonization of documents needed for
import/export procedures through 4 modes of transportation (t i (trains, trucks, t k ships hi and d airplanes)* i l )* 58 documents - 1,346 data elements are simplified & harmonized Results -> 212 data elements ( (core components) p )

g governments, , logistics g providers, p , and business* (including permits, licenses, payment, cargo insurance, etc.) other ~200 documents How many data elements all together? (~7 (~7,000?) 000?) The number of harmonized data elements (core components, ..)?

Phase 2 (2008 in progress) other documents required by

Adoption & Implementation (2008)

MICT has granted about 7.5 million US$ for e-Documents Exchange p for 14 g government agencies. g Development
* commissioned by Ministry of Transport ** commissioned by MICT with collaboration with Customs Dept
APEC-UN Joint Capacity Building Symposium on Paperless Trading, 26-28 May 2008, Seoul

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Data Harmonization as a part of regional integration initiative

ASEAN Single Window

UNESCAP-UNECE Seminar on Single Window and Data Harmonization in Central Asia, 5-7 May 2008, Baku APEC-UN Joint Capacity Building Symposium on Paperless Trading, 26-28 May 2008, Seoul

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Philippines pp & Thailand e-Document Exchange g

ASEAN Single Window Pilot Project

CA

Philippines pp
PH NSW

Thailand
TH NSW

CA

ebMS Gateway

ebMS Gateway

Bureau Of Customs
Documents Exchanged 1. ASEAN CEPT Form D 2. Export Declaration

Royal y Thai Customs Ministry of Finance

Dept of Foreign Trade Ministry of Commerce

CEPT = Common Effective Preferential Tariff CEPT Form D = Preferential CO for Intra-ASEAN Trade
APEC-UN Joint Capacity Building Symposium on Paperless Trading, 26-28 May 2008, Seoul

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APEC-UN Joint Capacity Building Symposium on Paperless Trading, 26-28 May 2008, Seoul

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Outline
A National Strategic g Agenda g Trade Facilitation Enhancement with Single Window e e-Logistics Logistics Needs and Requirements of Single Window Scope and Architecture of Thailand SWeL Step Step-by-Step by Step Path to Single Window Lessons Learned & Recommendations

APEC-UN Joint Capacity Building Symposium on Paperless Trading, 26-28 May 2008, Seoul

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Recommendations for SW Paperless Trade

A Comprehensive & Integrated Approach
National-level N ti l l l Strategy St t t align to li business b i and d ICT

strategies, action plans and implementation be fully developed and endorsed by the Cabinet. National-level Committees comprising of all related government agencies, and industry representatives appropriately pp p y formed with a right g combination and long-term g commitment.

Business Models needed to be agreed, e.g.

What Wh ti is th the business b i model? d l? How is it financed? (Public or private sectors, or PPP?) What are the user fees (if any)? How will the SW be sustained over the coming year? Do the revenues generated cover operational costs or do th make they k a profit? fit?
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APEC-UN Joint Capacity Building Symposium on Paperless Trading, 26-28 May 2008, Seoul

Recommendations for SW Paperless Trade

Scope and System Architecture established. Process Simplification should be continuously

exercised. Technical Interoperability using open p and international standards be adopted p

APEC-UN Joint Capacity Building Symposium on Paperless Trading, 26-28 May 2008, Seoul

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Recommendations for SW Paperless Trade

Data Harmonization among document/data requirements of all import/export-related import/export related procedures (governments, business and logistics-related providers) be a very y important p exercise to enable data interoperability, thereby realizing the Single Window Paperless Trade Development.
UNeDocs data model & WCO Data Model are good candidates to provide a way to harmonize our data requirements at the economy level as well as at the regional levels, e.g. harmonizing the work of National Single Windows, ASEAN SW, and APEC SW Initiatives (complying l i with ith UNeDocs, UN D Core C Components C t Library, Lib etc.) t )

Implementation Plan & Resources must be secured.

APEC-UN Joint Capacity Building Symposium on Paperless Trading, 26-28 May 2008, Seoul

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Request to APEC-UN/CEFACT
1. Closer collaboration between APEC, UN/CEFACT especially on Accelerating the collaborative work on the UNeDocs and WCO data models into a single data model (CBRDM Cross-border reference data model) 2 Accelerating 2. A l i the h establishment bli h of f the h new UNeDocs UN D Workbase W kb 3.0 (which incorporates e-CERT/e-SPS data requirements, and other..) ) (TBG2, ( UN/CEFACT) ) 3. Request active participation with APEC (ECSG) Data Harmonization Project 2008 (co-hosted (co hosted by Thailand Thailand, China, China Chinese Taipei) APEC-UN Symposium on Data Harmonization for Single Window Paperless Trading, 8-9 Dec 2008, Bangkok APEC-UN Hand-on Technical Training on UNeDocs Data Modeling, 10-12 Dec 2008, Bangkok
(UNeDocs Application Guide, Proof-of-Concept e-Documents, and UNESCAP Process Analysis Handbook will be available)

APEC-UN Joint Capacity Building Symposium on Paperless Trading, 26-28 May 2008, Seoul

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Thank you for your kind attention

Dr. Somnuk Keretho Director Institute for IT Innovation Kasetsart University Thailand sk@ku-inova.org

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