TECHNICAL READINESS CHECKLIST FOR CROSS-BORDER PAPERLESS TRADE IN - PowerPoint PPT Presentation

TECHNICAL READINESS CHECKLIST FOR CROSS-BORDER PAPERLESS TRADE IN MONGOLIA Ulaanbaatar, Mongolia 2 nd May 2019

OVERALL ASSESSMENT • Mongolia’s overall readiness level in ICT infrastructure is fair, and willingness of stakeholders to move into paperless trade environment is high. • However, regulatory agencies’ readiness to participate in Paperless Trade and Cross Border PaperlessTrade varies significantly. • High-level of need for enhancing coordination amongst the stakeholders, including among different government agencies. For example, the design and eventually implementation of the NSW (under the RIBS project) is primarily to provide linkages to the OGAs for connectivity to MCGA., rather than e-enabling the respective OGA’s. Appointment of a lead agency for paperless trade can facilitate better coordination.

OVERALL ASSESSMENT • Capacity building needs are high. Consideration should be given to joining the Framework Agreement on Facilitation of Cross-border Paperless Trade in Asia and the Pacific (FA-PT), which can help improving overall paperless trade environment and also effectively coordinating capacity building and technical assistance from relevant international development organizations

INFORMATION GATHERED - PAPERLESS TRADE SYSTEM AT THE NATIONAL LEVEL

INSTITUTIONAL AND GOVERNANCE BODIES FOR ELECTRONIC DATA EXCHANGE IN PAPERLESS ENVIRONMENT • It is reported that NTTFC, established in 2006 and chaired by Minister of Transport with 22 members, have slowed in 2016 due to the change in Government. • There is currently no lead agency in charge of NSW. • With the exception of MCGA, with its implementation of CAIS and CEPS, and MNCCI; with its e-application for Certificate of Origin, other OGAs are still uncoordinated in their approach for NSW and Paperless Trade.

LEVEL OF AUTOMATION MCGA (e-Customs) • CAIS and CEPS for customs declarations. 100% coverage. Equipped with Risk Managements Systems • Duty Payments via e-banking with 8 banks • Sighting of documents still required at BCPs. Systems is capable of receiving manifest information. • Authentication of users via SSO e-signature services under KHUR. PKI is controlled and managed by CITA • OGAs are not connected. Paper-based information exchange.

LEVEL OF AUTOMATION GASI • In the process of e-enabling their processes, Expected to be ready by 2021 with data exchanges with CAIS. MNCCI • E-Applications for Certificate of Origin. CO still printed on paper due to requirements by importers. KHUR • E-Government Platform for citizen services. Capable of data sharing/exchange amongst Government agencies. Controls and manages SSO e-signatures.

LEVEL OF AUTOMATION TIMELINES • NSW (MCGA/RIBS) – 2020 • GASI – 2021 NETWORK • MCGA (CAIS/CEPS) • Connected to primary BCPs via VPN, Remote or seasonal BCPs via VSAT. • MNCCI (e-CO) • Access to application module by traders via regular internet connectivity • Connectivity between MNCCI HQ and regional offices via VPN

INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) INFRASTRUCTURE FOR PAPERLESS TRADE NEW TECHNOLOGY • MCGA (Smart Border under RIBS) – T o implement RFID and number identification systems in 2019. INTEROPERABILITY • NSW (Under MCGA/RIBS) – Design with interoperability functions. • Data exchanges directly with MCGA/CAIS, not through KHUR,

INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) INFRASTRUCTURE FOR PAPERLESS TRADE DATA CENTER • MCGA (CAIS/CEPS) located in MCGA office. Will eventually move to new Government Data Center in UB (being constructed by CITA) with disaster recovery site in Darkhan. Expected to be completed by 2020 SECURITY • Security Policy controlled by Mongolia’s National Intelligence Agency. • Security measures SSO / e-signatures / PKI managed by CITA COMMUNICATIONS PROTOCOL • Socket, SOAP, ebMS

BUSINESS PROCESS RE-ENGINEERING AND DATA HARMONIZATION / CAPACITY BUILDING BUSINESS PROCESS RE-ENGINEERING AND DATA HARMONIZATION • MCGA – During the design and development stages when implementing CAIS / CEPS. • GASI – Will be doing the same when designing and developing their “Information Management Systems”. CAPACITY BUILDING • Was previously conducted by NTTFC and MNCCI, mainly on national level trade facilitation. • Training programs were conducted regularly by MCGA for the purpose of CEPS (Customs Brokers and Freight Forwarders).

COMPUTER LITERACY (PRIVATE SECTOR) / ACCEPTANCE / CHANGE MANAGEMENT / COMMUNICATIONS PROGRAMS COMPUTER LITERACY AND MODERNIZATION (PRIVATE SECTOR) • Most business organizations would have office automation but only the larger business organization would reach the level of CRM systems e.g. SAP. ACCEPTANCE / CHANGE MANAGEMENT / COMMUNICATIONS PROGRAMS • Feedback indicates high willingness to embrace paperless trade and cross border paperless trade. Requires capacity building to fully understand the business values. • Require change management programs to allay fears of “double work” • Require strong communications programs to keep them informed of progress,

INFORMATION GATHERED - NATIONAL STATUS TOWARDS CROSS-BORDER DATA EXCHANGE

CROSS BORDER DATA EXCHANGE CAPABILITIES MCGA – The current CAIS systems is already exchanging export information and x-rays results with Russian Federation and China. NSW/RIBS/MCGA – The preliminary NSW under RIBS is designed for cross border data exchanges. Any current needs for cross border data exchange can be undertaken via CAIS (e.g., the GTI initiatives). GASI – The IMS system being designed is supposed to handle cross border data exchange with their counterparts in other trading partner nations, particularly on SPS data.

INFORMATION GATHERED – OTHER AREAS OF INTEREST

DATA MODEL AND INTERNATIONAL STANDARDS MCGA – CAIS is utilizing WCO Data Model 2. Under the RIBS project, the enhanced CAIS is expected to utilized WCO Data Model 3.7 The NSW will be designed in accordance with United Nations Centre for Trade Facilitation and Electronic Business (UN/CEFACT) Single Window Recommendation.

SYSTEMS DEVELOPMENT AND BUSINESS PROCESS RE- ENGINEERING CAPABILITY • Within the government stakeholders related to paperless trade, the most equipped in terms of system development human capacity and business process re-engineering human capacity, MCGA will be the most equipped with such resources. • Other government stakeholders will have minimal /no capacity of such nature except of small office business systems utilizing conventional software e.g. Microsoft Excel. • The ICT industry in terms of system development is small. Most private sectors would prefer COTS solutions or MOTS solutions rather than BESPOKE solutions due to the budget involved.

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