unnext workshop on paperless trade facilitation for small
TRANSCRIPT
UNNExT workshop on
Paperless trade facilitation for
Small and Medium-sized Enterprises
2-4 February 2015
United Nations Conference Center (UNCC)
Bangkok, Thailand
A journey from BPA to TTFMM
key issues for trade facilitation
TengfeiWang
Economic Affairs Officer
Trade Facilitation Unit
United Nations Economic and Social Commission
for Asia and the Pacific (UNESCAP)
Email: [email protected]
Agenda
1. Business Process Analysis at the core of trade
facilitation
2. Ad-hoc and short-term vs. sustainable and long term
3. Trade and Transport Facilitation Monitoring
Mechanism (TTFMM)
4. Conclusion
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What is a Business Process?
�A Business Process is a collection of
related and structured activities or tasks
that produce a specific service or product.
�Example
� Import fabric products
from China to Kyrgyzstan
� Customs Clearance Process
at Birgunj dry port, Nepal
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What is..
� ..a Business Process Analysis?
An analysis and modelling of business processes
for improvement and automation
�Example
� Documenting procedure for customs clearance
� Listing the documents required
� Measuring time/cost
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Documents related to Exportation of Rice(from purchase order until the cargo container leaving the sea port)
21. Master Sea Cargo Manifest(17)
22. House Sea Cargo Manifest (37)
23. Export Declaration (114)
24. Good Transition Control List (27)
25. Application for Permission to Export Rice (KP. 2) (24)
26. Sales Report (KP 3) (21)
27. Application for the Collection of the Permit for the
Export of Rice (A. 3) (35)
28. Permit for the Export of Rice (A. 4) (35)
29. Application for Certificate of Standards of Product (MS.
13/1) (44)
30. Certificate of Analysis (17)
31. Certificate of Product Standards (MS. 24/1) (45)
32. Certificate of Fumigation (21)
33. Application for Phytosanitary Certificate (PQ. 9) (29)
34. Phytosanitary Certificate (33)
35. Application for Certificate of Origin (42)
36. Certificate of Origin (38)
1. Proforma Invoice (35)
2. Purchase Order (39)
3. Commercial Invoice (51)
4. Application for Letter of Credit (24)
5. Letter of Credit (32)
6. Packing List (25)
7. Cargo Insurance Application Form (20)
8. Cover Note (23)
9. Insurance Policy (24)
10. Booking Request Form – Border Crossing (25)
11. Booking Confirmation – Border Crossing (30)
12. Booking Request Form – Inland Transport (16)
13. Booking Confirmation – Inland Transport (18)
14. Bill of Lading (42)
15. Empty Container Movement Request (TKT 305) (20)
16. Request for Port Entry (TKT 308.2) (27)
17. Equipment Interchange Report (EIR) (24)
18. Container Loading List (28)
19. Container List Message (32)
20. Outward Container List (34)* Number in parenthesis is the no. of data elements
36 Documents involving 15 parties, and more than 1,140 data elements to be filled in
A Thai Case BPA Example
Regulatory Docs
Transport Docs
Buy/Pay Docs
Information BPA captures
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Who involved
Proceduresand Documents
required
Related Rulesand Regulations
Some quantitative
indicators
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Business Process Analysis (BPA) for trade facilitation:
a technique for documenting business processes
1. A use case diagram showing the scope of the business process analysis
project;
2. A set of activity diagrams; each explains a core business process as
represented by a use case in the use case diagram; (together with a set of
process descriptions);
3. A list of trade forms and documents which may be accompanied with
samples of physical copies;
4. Costs and time for each procedure;
5. A time-procedure chart;
6. A list of identified bottlenecks; and
7. Recommendations to improve the business process and/or to-be business
process models.
Experience from ESCAP shows that almost any professional in
trade facilitation can conduct BPA after receiving training.
A Business Process Analysis
- in Exporting Jasmine Rice from Thailand -
1. Buy - Conclude sales contract and trade terms2. Obtain export permit3. Arrange transport4. Arrange the inspection and fumigation 5. Obtain cargo insurance6. Provide customs declaration 7. Collect empty container(s) from yard
8. Stuff container(s)9. Transfer to port of departure10. Clear goods through customs 11. Handle container at terminal and stow on vessel12. Prepare documents required by importer13. Verify the accuracy/authenticity of exported cargo14. Pay - Claim payment of goods
1 2 3 4 5 6 7 8 9 10 11 12 13 14
Day
Process
20
10
0
5
15
3 days
2 days
3 days
4 days
1 day
1
3
5
6 7 8 9
12
14
2
2 days
4
2 days 10
1 day
13
1 day
16
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Time-Procedure Chart
16 days are required for these procedures
and documents transaction
e-Single Window and paperless trading
National Data Harmonization
BPA: the first step to be taken before introducing other trade facilitation measures
Document Simplification & Standardization
Cross Border Data Exchange
Business Process Analysis for Trade Facilitation1
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5
3
2
4
Process Simplification and Harmonization
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Business Process Modeling
What
� A technique for documenting a business process and its attributes� Activities that come in a specific order and decision points
� Actors who perform those activities
� Defined inputs and outputs of each activity
� Criteria for entering and exiting the business process
� Relationships among actors
� Information flow
� Associated rules and regulations
� Quantitative indicators such as number of steps as well as time and cost required to complete a particular business process
Why
� To establish a common understanding about a business process that is shared by all relevant parties
� To communicate better all aspects of a business process
Unified Modeling Language (UML)
�A set of standard graphical notations for documenting a
business process and business requirements
http://en.wikipedia.org/wiki/Unified_Modeling_Language
� Is widely recognized and
used among practitioners in
business community as well
as those in IT and software
industry
� Allows business domain
experts to communicate
procedural and documentary
requirements with IT
implementation or software
development team
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Why UML
�UML can help quickly clarify complex problems and
scenarios
� UML can help establish a common understanding about a
business process
A common language for electrical engineer A common language for musician
UML Diagrams for BPA
Use Case Diagram
� A frame of reference illustrating a high level business process and its associated actors
Activity Diagram
� A detailed elaboration of a use case diagram
� A graphical representation of a business process and its attributes
� Activities that come in a specific order and decision points
� Actors who perform those activities
� Defined inputs and outputs of each activity
� Criteria for entering and exiting the business process
� Relationships among actors
� Information flow
Buy - Conclude
sales contract and
trade termsExporter or
RepresentativeImporter
Quote price
and term of trade
Confirm the
intent to purchase
Proforma Invoice
Purchase Order
Not acceptable
Acceptable
Cancel
Prepare the shipment
of goods
Exporter or
RepresentativeImporter
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UML Notations for Use Case Diagram
Notation Description
Actor
� Represents a role in a particular business process
� Is labeled with a role name
Use Case
� Represents a business process
� Is labeled with a descriptive verb phrase
Relationship Association
� Link actors with business processes that they participate in
Subject Boundary
� Represents a process area
� Includes the name of a subject boundary on top
Boundary
Actor/Role
Use case
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UML Notations for Activity Diagram
Notation Description
Initial State
� Represents the beginning of a set of activities
Final Activity State
� Indicates the completion of the business process
Final Flow State
� Indicates that further activities cannot be pursued
Transition Line
� Indicates a sequential flow of actions and information
in an activity diagram
Fork (Splitting of Control)
� Visualizes a set of parallel or concurrent flow of
actions
Join (Synchronization of Control)
� Indicates the end of parallel or concurrent flow of
activities
Object
� Represents a document or information that flows from
one activity to another activity (labeled with the name of
a document)
Notation Description
Swimlane
� Is used to break up individual actions
to individuals/ agencies that are
responsible for executing their actions
� Is labeled with the name of the
responsible individual or agency
Activity
� Represents a non-decomposable
piece of behavior
� Is labeled with a name that 1) begins
with a verb and ends with a noun; and 2)
is short yet contain enough information
for readers to comprehend
Decision
� Represents the point where a
decision has to be made given specific
conditions
� Attached with labels addressing the
condition on each transition line that
comes out of an activities and connects
to a decision point or vice versa
Process
Participant 1
Process
Participant 2
Process
Participant n
How many actors are involved in trade process?
Exporter (or Representative) Department of Fisheries
(DoF)
Authorized Private
Inspector2.1) Haveproduct sampled
and examinedExporter or
RepresentativeDepartment
of Fisheries (DoF)
Authorized Private
Inspector
Collect
sample
Examine
sample
Record the result
of examination
Test Report
Deliver
sample
Collect
Test Report
Additional
examination required
Additional examination
not required Schedule the
sampling date
Record result
of examination
Examine
sample
Collect
Test ReportTest Report
Have product
ready for sampling
Notify the date for
sample collection
Submit Request
for Sampling
Record sampling
result
Request for
Sampling
Collect
sample
BPA Phases
I. Scope setting – Specify a scope of processes to be analyzed
� e.g. import and/or export processes of a specified product,
through a certain mode of transportation (trucks, trains, ships or airplanes)
II. Data collection and process documentation – Define and
document a sequence of steps in actual practices and their attributes
� Who involved (stakeholders/actors)
� Procedures and documents required (input to/output from)
� Related rules and regulation
III. Process analysis – Locate bottlenecks, examine what causes them,
and develop measurable and quantitative process indicators (e.g. the
number of steps, time and costs required to fulfill those processes)
Recommendation development – Determine how to eliminate
each bottleneck and prioritize improvement actions
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Trade Facilitation Analysis Database (TPAD):
Summarizing most, if not all, BPA studies
�A database of business process
analyses of country and product-
specific import and export
procedures conducted in Asia-
Pacific developing countries.
�Over 50 import and export
process cases are included, based
on studies conducted since 2009
by international organizations
such as ESCAP, ECE, ADB and
their member states.
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Key functions of TPAD
� Data analysis:
enables the users
to compare trade
process and
procedures across
countries
� TPAD is also a tool
to assist
researchers to
standardize the BPA
studies in the future
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Agenda
1. Business Process Analysis at the core of trade
facilitation
2. Ad-hoc and short-term vs. sustainable and long term
3. Trade and Transport Facilitation Monitoring
Mechanism (TTFMM)
4. Conclusion
22
Why is sustainable national trade and transport facilitation
monitoring mechanism important and essential?
� Available international cross-country trade
and transport indicators are useful but
not sufficiently detailed or reliable
�Many trade facilitation studies often done in developing
countries, but
� One-off / Ad hoc assessment studies; Overlapping and not
coordinated; No uniform method & approach
� Lack of ownership of results, with no follow-up
Need for an integrated and sustainable mechanism:
(1) To provide adequate data & information to support
decision making and to monitor implementation and impact of
these decisions on trade facilitation measures
(2) To reduce unnecessary duplication of efforts & ensure
recommendations are implemented
Agenda
1. Business Process Analysis at the core of trade
facilitation
2. Ad-hoc and short-term vs. sustainable and long term
3. Trade and Transport Facilitation Monitoring
Mechanism (TTFMM)
4. Conclusion
24
Integrated and Sustainable Trade & Transport
Facilitation Monitoring Mechanism (TTFMM)
Measure, monitor and assess
progress in trade facilitation
Trade facilitation reform
Implementation
Integrated Methodology: BPA+
Baseline trade and transport facilitation assessment study
Formulate, update and prioritize
recommendations for advancing trade facilitation
Institutional ArrangementNational Human Capacity
TTFMM – Key Outputs
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� TTFMM Database, including:
� Description, activity diagram and related rules/regulations for
each trade & transport procedure for selected products along
selected corridors
� Time, Cost, No. of documents for each process/procedure
� Set of Indicators (dashboard)
� Include Time, Cost, No. of documents for each
process/procedure
� Average speed along the corridor
� Average border crossing time
� An annual report
� Presenting relevant summary information from the database
to the public, as decided by the NTTFC, as well as an analysis and recommendations
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Shipping company
Shipping agent
Port Authority,
etc.
Customs,Bank,
Customsbroker
Port AuthorityContainer Yard
Warehouse,Forwarder,
etc.
Importer,Customs brokerContainer Yard
OGAs, etc.
Time Release Study (TRS): Measuring ‘time’ for
border crossing procedures
Arrival of
cargo
Unloading
/StorageSubmission of
Declaration
Customs
release
permission
Removal
of cargo 27
Transport to border
Wait at border
crossing/change
transport mode
Transport
to sea port
Wait at
sea port
Sea transport
500 km 1000 km 2000 km1500 km
Day 4
Day 3
Day 2
Day 1
$400
$300
$200
$100
Point of OriginPoint of OriginPoint of OriginPoint of Origin
DestinationDestinationDestinationDestination
Time-Cost-Distance Method: record ‘time’ and
‘cost’ of physical movement of cargoes
BPA+: An Integrated Methodology
Trade-related
procedures
before cargo
movement
Cargo
origin
Border
crossing
point
Border
crossing
point
Cargo
destination
Trade-
related
procedures
after cargo
arrival
TRS TRS
TCD
BPA of Trade Procedures
Business Process Analysis (BPA) for diagnosis of TF bottlenecks along entire supply chain
Time-Cost Distance Method (TCD) & Time Release Study (TRS)to Improve/verify BPA time and cost estimates
TTFMM implementation in Bangladesh, Bhutan and Nepal(with support of ADB, ESCAP and WCO)
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Agenda
1. Business Process Analysis at the core of trade
facilitation
2. Ad-hoc and short-term vs. sustainable and long term
3. Trade and Transport Facilitation Monitoring
Mechanism (TTFMM)
4. Conclusion
31
Concluding Remarks
� BPA is the first step for any trade facilitation reform
� Monitoring trade and transport facilitation in a sustainable
manner is essential and possible for all countries - it does not
have to be expensive
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