International Standards & Information Exchange for Single Window –a Regional Perspective

1. International Standards & Information Exchange for Single Window –a Regional Perspective by Derrese Degefa African Trade Policy Centre (ATPC) United Nations Economic Commission for Africa (UNECA) A presentation prepared for the National Stakeholder Conference 23 April 2012, Nigeria Customs Service Command and Staff College, Gwagwalada, Abuja, Nigeria

2. Outline • Background • Single Window: National vs. Regional • Regional Single Window Initiatives • African Alliance for E-Commerce • Challenges of Regional Single Window • What needs to be done to address the Challenges of RSW? • AAEC • Governments • International Organizations

3. Background • Africa’s trade performance has been weak • The share of Africa in global trade is around 3% compared to 8% in 1948 • Intra-Africa trade is the least compared to other regions: • Africa (10%) • Europe (60%) • North America (40%) • ASEAN (30%)

4. Trading Across Borders(World Bank: Doing Business 2012 Report)

5. Access to Documentation Requirements for Trading Across Borders • Share of economies where documentation requirements are easily accessible • Latin America and Caribbean (78%) • East Asia and Pacific (71%) • South Asia (63%) • Eastern Europe and Central Asia (58%) • SSA (49%) • Middle East and North Africa (33%) Note:Documentation requirements are considered easily accessible if they can be obtained through the website of the relevant authority or government agency or through public notices, without a need for an appointment with an official.

6. What Africa is currently doing to address the problem of intra-Africa trade? • African Heads of State and Government convened in January 2012 to launch a continent-wide free trade area (CFTA) • The Summit focused on four main to boost intra-African trade: • trade facilitation • productive capacity • trade related infrastructure & • trade policy

7. Why the focus is on Trade Facilitation? • Trade Facilitation • has been identified as one of the major barriers to intra-African trade • can be addressed relatively quickly and without much cost, given political will and strong commitment to promote intra-African trade • will not only assist in the deepening of Africa’s market integration but also enhance the performance of African countries in global trade • Therefore, trade facilitation is a key component of trade policy

8. Why Single Window? Single Window • is a trade facilitation tool • can play a decisive role in facilitating paperless trade • is a platform for a paperless (electronic) exchange of trade information between participants in the trade process • has become a major instrument for simplifying and automating trade procedures • helps to facilitate regional & global collaboration on exchange of trade information • is an important tool for supporting regional and global integration

9. National vs. Regional Single Window • National Single Window is a countrywide facility that provide users (regulatory agencies and the trading community) to submit standardized information only once, at a single entry point, to fulfill all import, export and transit-related regulatory requirements • Regional Single Window is broadly defined as an environment where National Single Windows operate & integrate • The National Single Window is a prerequisite of the Regional Single Window (ASEAN case)

10. Regional Single Window • Regional networking of National Single Windows is for cross-border information sharing for security, trust and efficiency • For effective & efficient implementation and operation of RSW, National Single Window project operators/managers should collaborate at a regional level • to analyze cross-border supply-chain issues • ensure technical interoperability in the development of SWs • develop and implement data harmonization as well as common interconnectivity strategies, policies and standards

11. Regional Single Window Initiatives • The Association of South East Asian Nations-ASEAN- was one of the first organizations to conceptualize a RSW project • In Dec. 2005, ASEAN concluded the agreement to establish and implement the ASEAN Single Window • In April 2006, established protocol for the RSW • The ASEAN Single Window (ASW) is the first regional initiative that seeks to enhance regional connectivity • ASW’s implementation is planned for 2015

12. Regional Single Window Initiatives ... Cont’d • African Alliance for E-Commerce (AAEC) • is a Regional Single Window initiative which was officially set up on 13th March 2009 in Addis Ababa, Ethiopia • its establishment was spearheaded by ATPC of UNECA • is an important and concrete contribution of ATPC to the Trade Facilitation agenda of Africa • Members (11 ): 5WA, 2CA, 2NA, 1SA, & 1EA • Cote d’Ivoire, Cameroun, Republic of Congo, Ghana, Kenya, Libya, Morocco, Madagascar, Mali, Senegal, & Togo

13. What are the objectives of AAEC? The Objectives of the AAEC are: • promoting Single Window concept within Africa • defining common objectives of electronic business in general and Single Windows in particular • creation of a platform for exchange of best practices on Single Window implementation in Africa • helping African countries in the implementation of international standards • provision of capacity building and guidelines in the implementation of NSW and RSW • promoting projects related to paperless trade among members of the Alliance: e-certificate of origin, e-invoice, e-declaration, certification of digitalized documents, certification of companies, etc.

14. Objectives of AAEC …. Cont’d • representing Africa in international forums and contributing to the development of the Single Window at global level • supporting the application of international standards and norms in the implementation of Single Windows in Africa to ensure interoperability within Africa and with other regions of the world • promoting regional and inter-regional Single Windows in Africa • be a focal point for development partners and international institutions interested in promoting Single Windows in Africa

15. Key Challenges of Regional Single Window • The business community is still very much paper-based. It takes a few years to materialize the full operation of paperless environment RSW • Inadequate legal environment for paperless international trade: the legislation applicable to electronic transactions with governmental entities is often specific to individual sectors and individual technologies • Many aspects of Regional Single Window integration still have to be defined with regard to, among other things, • harmonization of data, • an effective legal framework for data exchange, & • a sustainable model for the service providers

16. What needs to be done to address the Challenges of RSW?

17. The Role of AAEC in CFTA • As Africa is aiming at CFTA by 2017, the AAEC • is expected to play key role in boosting intra-Africa trade by promoting the development of Single Window at national and regional levels across Africa by sharing information on best practices on trade facilitation • Among other things, AAEC needs to fast-track in • developing guidelines on the implementation of SW (national as well as regional), specifically with regard to international standards to ensure interoperability in paperless trade • providing technical capacity building on the implementation of international standards and information exchange for (N+R) Single Window

18. What needs to be done at country level? • For effective implementation of Regional SW, Governments • must first simplify and enhance the flow of information related to trade • rationalize and coordinate legal requirements related to electronic trade • data standardization and harmonization to the benefit of the trading community • can further enhance information flows by identifying & adopting suitable information and communication technologies • besides the standardization & harmonization of data, effective application of ICT can help maximize information flow as a result of faster, easier and lower cost of international trading

19. Efforts of the WCO, the UN and other IOs • The WCO has developed a framework for improving the information flow through the WCO Customs Data Model • The WCO Customs Data Model is a result of collaborative effort between government and the trading community to provide an effective framework that facilitates international trade through data simplification and harmonization • In the framework of the WCO, the UN & other IOs have done a lot on simplification and harmonization of data requirements

20. Efforts of the … Cont’d • To address the Legal challenge, the UN General Assembly adoptedthe Convention on the Use of Electronic Communications in International Contracts, on 23 November 2005 • This convention was proposed as one element in the regulatory framework for national, regional and international Single Window facilities

21. Thank you for your kind attention!