Analysis on the cross-border trade processes and recommended reference maps for cross-border paperless trade. March 2015
Simplified International Supply Chain
International Supply Chain with Cross-Border Transactions Documents crossing borders L/C Apply for Conformity 1. Shipping Notice Payment Term? House B/L Receive Collect PO Confirm/ Exporter L/CReceive Booking Proforma Invoice Transportation Nego / 선적 /Export Declaration 요청 5. Shipping document Export Declaration Receive Collection T/T -Invoice -Invoice Settle -Packing List Exchange Bank L/C Arrival Notice -Packing List ment -B/L etc Shipping document H Manifest Pick up House B/L Issue submission Export Declaration/ Forwarder/ Booking/Notice Shipping Instruction/ Confirm Approval Notice Broker 2. Terminal-In 4. H Manifest Notice Report Manifest Filing Approval of Departure Report Customs Declaration Approval Manifest Terminal In Manifest send submission Shipping Instruction Sea/Air Carriers Booking Master B/L Issue acceptance (Terminal) SWIFT Departure Report 3. Gate In Report Application/submission Departure Report Customs Approval Forwarder/ H Manifest receive Broker Shipping document Hand over Exchange Bank L/Copening Payment Settlement Yes Shipping No document Importer L/C Term? Shipping Notice receive PO Receive Import payment Settlement Issue Terminal In Report Agency/Lab/Association Conformity Certificate Departure Report acceptance Acceptance Port / Immigration Agency/Lab Port
International Supply Chain with Cross-Border Transactions Documents crossing borders (Continue) Exporter Payment Notice acceptance Exchange Bank Payment Notice Forwarder/ Broker Customs 사전 Warehouse-Out Sea/Air Carriers Unloading/ Warehouse-Out Manifest send Arrival submission SWIFT (Terminal) Terminal-In submission acceptance Report Arrival Warehouse-Out Report Import Declaration Customs Manifest acceptance Unloading submission In Report acceptance submission Approval acceptance acceptance acceptance Warehouse-Out In Report Forwarder Import Declaration/ Report Pre-Terminal-Out 1. Cargo arrival Notice H Manifest (Broker) Approval Notice Cargo Arrival submission Delivery Order Issue submission Cargo Hand over Notice Exchange Bank Payment Cargo Fee Hand over Payment Request 2. Cargo Arrival D/C Receive Request Settlement Notice receive End Importer Cargo arrival Notice receive Import Declaration Apply for Import Declaration Payment Cargo Settlement? Conformity Receive Arrival submission/ Terminal-In submission Terminal-Out Report Conformity acceptance Agency/Lab/ acceptance acceptance Association Immigration Port Port Agency/Lab
4 major areas 4 major areas of cross-border trade documents and data � Commercial Transactions • Offer, Counter Offer, Proforma Invoice • Framework contract, contract • Invoice, Packing List • (Self) Test Certificate, Manufacturing Certificate • Cargo Insurance (Insurance Policy) and etc � Trade financing and settlement • Letter of Credit, Bill of Exchange and etc � Transportation and related services • Cargo/Vessel Status information • In-Transit report • Bill of Lading, Sea Way Bill, Air Way Bill and etc � Official control measures • Country/Certificate of Origin • Conformity Certificates such as Fumigation Certificate, Safety/Health Certificate and National/International Standard Certificate • Import/Export License/Permit and Quota • Customs clearance information, Advance Manifest and etc
Interactions among 4 major areas International trade procedures are interactions of 4 areas relaying trade documents and data
Cases of cross-border exchange – B2B ISC Typical ISC B2B Documents Ordering Transactions ANSI X.12 EDIFACT Purchase Order (Ack.) 850 (855) ORDERS (ORDRSP) Purchase Order Change (Ack.) 860 (865) ORDCHG (ORDRSP) Order Status Report (Inquiry) 870 (869) ORDREP (ORSSTA) Materials Management ANSI X.12 EDIFACT Transactions Planning Schedule/Material Release 830 DELFOR Shipping Schedule 862 DELJIT Ship Notice 856 DESADV Financial Transactions ANSI X.12 EDIFACT Invoice 810 INVOIC Freight Invoice 859 IFTMCS Payment Order/Remittance Advice 820 REMADV Shipping/Receiving Transactions ANSI X.12 EDIFACT Shipment Information 858 IFTMCS Receiving Advice 867 RECADV
Cases of cross-border exchange – B2B ISC After ISC B2B Project ERP Importer KTNET Bank OGA Customs Bank Exporter Manufacturer Carrier Order Plan Order Plan Order Plan Purchase Plan P/O P/O Status Status Application L/C L/C L/C for L/C Advance Advance Import Import Report Report Purchase B/L Advice B/L Advice B/L Advice Control Invoice Invoice P/L P/L Mill Sheet Mill Sheet Mill Sheet Bonded Bonded Transportation Transportation Customs Customs Clearance Clearance Inventory Application Application Tariff return Tariff return 8
Cases of cross-border exchange – TSU/BPO BPO (Bank Payment Obligation)
Cases of cross-border exchange – Japan AFR Japan Advance Filing Rules In Japan Outside Japan Carrier, Carrier, Shipping NACCS Japan Same corporation NVOCC Agent and NVOCC in Customs JAPAN EDI Dedicated EDI line Connection between Web Entry NACCS and filer’s own system is established only through servers located in Carrier, Japan, not outside Japan. NVOCC Web application provided by SP Dedicated line Service Provider (SP) EDI Web
Cases of cross-border exchange – e-Phyto Korea – Netherland e-Phyto Certificate Project NL f ind_ certificates _by_update_date_and_ status get_signed_official_certificate _xml Importing Certificate data Country Request Request Request SOAP SOAP SOAP SOAP SOAP SOAP SOAP SOAP Plant Quarantine Server Server Server Server Client Client Client Client Integated Certificates Network Response(XML) e-Cert Information Information Certificate System Mastering (PQIIS) Exporting System(CMS) Country DB Request SOAP SOAP SOAP SOAP (Result Status update) SOAP SOAP SOAP SOAP Result Server Server Server Server Client Client Client Client Response(update result) Inspector(KR) Acknowledge _certificate accept _certificate reject _certificate request_replacemen t_certificate * SOAP : Simple Object Access Protocol
Cases of cross-border exchange - e-C/O ECO [Korea ► Taiwan province of China] ECO Enquiry on KCCI Website Customs With ID and Password KCCI 6 Import Declaration 1 CO 2 ECO ECO confirmed by importer APPORG CERTIF Exporter Importer 3 Inv, P/L, ECO 1 CO APP KTNET Trade-Van 3 Inv, P/L, 4 Sign to confirm ECO 2 ECO (for view) Attach Assign Customs Broker Repository ECO from Repository 3 Inv, P/L repository 5 Generate Import (specify ECO Number) Declaration Data 6 Import Declaration Customs Broker Korea Chinese Taipei
Regulatory control measures MRA (Mutual Recognition Agreement) How MRA works? The designated agency of the exporting country accredits or appoints the conformity assessment institute (testing agency or certification agency) that can conduct the conformity assessment pursuant to the importing country ´ s technical regulations. At this time, it may appoint the accreditation agency that conducts the conformity assessment agency ´ s accreditation matters on behalf of the designated agency. Also, when it gives the importing country the list of designated accreditation agencies and the designated or accredited conformity assessment agencies, the importing country decides on the approval after assessment. ※ MRA aims to facilitate the trade, increase the market accessibility, and eliminate or reduce the Non-Tariff Barrier (NTB), not to unify Standards or Technical Regulations.
Regulatory control measures � Before MRA Manufacturing Export Test Certification Marketing Exporting Country Importing Country � After MRA – (1) Recognition of Lab/Test Result Manufacturing Test Certification Marketing Export Exporting Country Importing Country � After MRA – (2) Recognition of Lab/Certification Manufacturing Test Certification Export Marketing Exporting Country Importing Country
Reference map Reference map (1) : Commercial transactions and trade financing & settlement Related trade documents/ Cross-border projects, services and agreement Category information Cases Ownership - Korea-Japan e-MP project Public - B2B e-Marketplace (i.e. Alibaba) Private Contract B2B e-Marketplace Private Commercial transactions Purchase Order, Forecastin International Supply Chain B2B Transactions g, Production status, Ship Private (i.e.. GM, Ford, BMW, Apple and Walmart) Notice Purchase Order, Invoice, P PAA Secure Cross-Border Transaction service acking list, Advance Shippi PAA (Private) s ng Notice uTradeHub (Trade financing with L/C) PPP e-L/C(Local L/C) Bolero e-L/C Private SWIFT TSU & BPO SWIFT (Private) P/O, Invoice and shipping d ata Trade financing TradeCard TradeCard (Private) and settlement Bolero Bolero (Private) P/O, Invoice and e-B/L TEDI TEDIANET (Private) - Paypal, Alipay Private e-B/L uTradeHub e-Nego PPP
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