how the korean government enhanced trade facilitation ? maeng, cheol-kyu : economic benefits from...
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How the Korean Gov-ernment Enhanced Trade Facilitation ?
Maeng, Cheol-Kyu
: Economic Benefits from Single Win-dow System
KCTDIKorea Customs & Trade Development Institute
KCSKorea Customs Service
ContentsBackground for Korean Single WindowStakeholders in S/W
Before & After S/W
Economic Benefits from S/W
Background for Korean Single Window
I
1
Increased Workload : Trade Volume vs Man-power
12
1970
$2.8 bil-lion
2012
$1,067 bil-lion
Trade Vol-ume
379 times
1970
1,657
2012
4,550
Customs Per-sonnel
2.7 times
1970
workload per capita ($)
2012
$ 2 M $ 235 M
118 times
Korean Single Window (Concept)23
Definition of ‘Single Window’ (UN/CEFACT Rec-ommendation No.33, 2005) “a facility that allows parties involved in trade and
transport to lodge standardized information and doc-uments with a single entry point to fulfil all import, export, and transit-related regulatory requirements. If information is electronic, then individual data ele-ments should only be submitted once”
Concept A (Narrow Concept) : Requirement Ver-ification Process titled ‘Single Window’ in Korean language(ex) medical, food, animal, applianceConcept B (Broad Concept) : Total Electronic Customs Clear-ance Process through a hub portal system titled UNIPASS(ex) customs clearance, duty drawback, cargo management
Korean Single Window
Korean Single Window (Concept. continued)34
Port En-try
Declarant Carry-In
Import Declara-
tion
Declara-tion Ac-cepted
Release
Total Cargo Import Process : UNI-PASS
Requirement Verification & Approval Process
http://www.customs.go.kr/kcshome/main/content/ContentView.do?con-tentId=CONTENT_ID_000001284&layoutMenuNo=21007
Stakeholders in S/W (Case of Narrow Concept)
II
5
Arrangements for Legally-Enabling Environ-ment
16
Foreign Trade Act
Customs Clearance
Other relevant Laws
Article 5, 11, 12, 26
65 relevant Laws
Integrated Notice (54)
Non-Inte-grated No-tice (11)
Auto-mated Ap-
proval
RequirementApproval
35 Regulations and Laws in relation with the Article 226 of Customs Law
Requirement Checking
Checking Requirements Approval(by Director of Customs House)
Requirement Checking
Requirement Approval by Director of Customs House (Article 226 of Customs Law as of Dec., 2013)
(4) (7)
Data Harmonization & Simplification (Case)27
Number of Items checked by Director of Customs House
Data Harmonization among different laws in 10 re-quirements in 2009
July, 2003
4,810
May, 2004
4,114
Aug., 2005
4,113
Sept., 2006
4,185
Total El-ements (542)
4,356
Dec., 2008
4,411
Oct., 2009
4,848
Feb., 2011
4,964
Jan., 2012
5,527
Jan., 2013
5,502
Common elements
(185)(34%)
Unique ele-
ments (102)(19%)
The Oth-ers
(255)(47%)
7 laws &10 docu-ments
May, 2007
Increasing PGAs & Usage Rate of S/W38
2006
8
2007
11
2008
11
2009
15
2010
17
2011
31PGAs (Participating Government Agencies)
2006
2.7
2007
5.0
2008
14.3
2009
45.2
2010
62.0
2011
66.1Usage Rate of S/W
Before & After S/W (Case of narrow con-
cept)III
9
Process for Requirement Verification & Decla-ration
110
Port En-try
Declarant Carry-In
Import Declara-
tion
Declara-tion Ac-cepted
Release
Total Cargo Import Process
Requirement Verification & Approval Process
Customs Authority
Relevant Govern-ment Agencies
Process 2: Declara-
tion
Process 1: Verification
Import Declaration Process before S/W
211
Declarant
PGAs*
PGA 1
PGA 2
…
Customs Authority
Import
Declara
tion Re-
quest
Result
of the D
ecla-
ratio
n
Result of the Re-quest
Requirement Verification Request
Process 2
Process 1
*PGAs = Participating Government Agen-cies
Simplified Process after Single Window Instal-lation
312
Declarant
PGAs*
PGA 1
PGA 2
…
Customs Authority
Re-sult
Import Declara-tion Re-quest + Require-ment Veri-fication Request
Process 1 + Process 2
*PGAs = Participating Government Agen-cies
The In-ternet
Single Window
Veri
fica-
tion
Re-
su
lt
Resu
lt of
the D
ecla
-ra
tion
Verifica-tion Re-sult
Decla
ra-
tion
Re-
qu
est
Verifica-tion Re-quest
Economic Benefits from S/WIV
13
Changes in Time for Import Procedures (Total)
114
Port Entry Carry-In Customs Declaration
Accep-tance
Re-lease
Year 2005
Year 2013
5.9 days
2.7 days
1.28-days 3.28 days 1.4 hours 1.3 days
0.49 days 1.15 days 1.4 hours 1.1 days
3.1-days
The Enhancement in Efficiency through S/W
215
Year 2005
Year 2013
average = 4.61 days
average = 1.64 days
STD = 14.61 days
STD = 6.51 days
Changes in Lead Time (from Port Entry to Declara-tion Acceptance)
Calculation of Economic Benefits (for import)
316
𝐸𝑉=𝑋 ∗𝑌 ∗𝑍
* foot note
• EV = Economic Value
• X = the cost for warehouse per imported cargo
• Y = the number of annual accumulated import customs declarations
• Z = the decreased proportion of the average lead time for customs
clearance
THANK YOU
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