uTradeHub - Korea ’ s National Single Window for Paperless Trading

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

2. 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: Korea’s Single Window 5. Critical Success Factors 6. Challenges Ahead

3. 1. What Is Single Window?

4. 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.

5. Model 1: Single Authority Model 2: Single System Single Window Models

6. Model 3: Single Information Transaction System Single Window Models

7. Korean Case Bank Logistics Company Global Network Single Window Models User Trade Chain License/ Certificate Authority Customs Service Single Window Electronic Traders

8. 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

9. 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

10. Singapore 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

11. 2. Why Do We Need It?

12. Korea’s Trade Volume Million USD

13. International trade in Korea * CAGR: Compound Annual Growth Rate Tons of trade documents Bottleneck in trade process 1

14. Problems of Paper Based Trade Enterprises Enterprises Government 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 inmonitoring National Competitiveness Decreased National Competitiveness Decreased 2

15. 3. Where Are We Now? : e-Trade Korea 2007 Project

16. Development Stage of Korea’s 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 3rd 1st 2nd (1990~1999) (2003~) (1999~2002)

17. Milestones in Korea’s 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

18. 3 Phase Plan e-Trade KOREA, Innovation 2007 A leading e-Trade nation in the 21st century Phase1 Phase3 Phase2 Building Core Infrastructure (2005) Enhancing Infrastructure (2006) Upgrading User Environment (2007) 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

19. National e-Trade Committee Chair : Prime Minister e-Trade Facilitation Committee Platform W/G Law W/G Finance W/G Logistics W/G Marketing W/G Global W/G e-TP PM e-TDR Law Reform e-L/C e-Nego RFID e-L/G e-D/O e-MP e-Catalog Solutions e-C/O e-B/L APEC,ASEM Bilateral Networking Korea Paperless Trade Center Korea International Trade Association 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

20. 4. uTradeHub : Korea’s Single Window for Paperless Trading

21. Conceptual Model

22. The uTradeHub Portal Site

23. 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

24. 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

25. 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)

26. 5. uTradeHub : Success Factors

27. 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

28. Strong Leadership and PPP Strong Leadership by Government A Typical Government – Bank Leaders meeting

29. IT Infrastructure of Korea Broadband Network 서울2 서울1 대전 대구 부산 No. 1 in Broadband Internet Penetration Rate House-holds 광주 Schools ※subscriber/100 persons 24.9 (Source: OECD, 2005) 19 17.8 15 12.8 1위 2위 Korea Netherlands Canada Japan U.S. No. of broadband subscribing households: 11.8 million (77%) Korea’s Broadband Penetration Penetration : 80%(2005) - Available to over 97% of population All Primary & Secondary Schools Connected to Broadband (Sept. 2000)

30. Foreign Trade Act Electronic Transactions Act Digital Signature Act e-Trade FacilitationAct Trade Transactions Facilitation Act Customs Law Legal Infrastructure In 1991, Enacted ‘Trade Automation Act’ In 2004, Revised the Act to ‘e-Trade Facilitation Act’

31. 6. Challenges Ahead

32. 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

33. Korea’s 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 - Singapore’s TradeXchange as a project partner • e-Negotiation Project • Pilot project with China • Presenting negotiation documents in electronic formats and complete electronic payment

34. Thank you ! (Q&A)