UNNExT Workshops on Trade Facilitation...UNNExT Workshop on skTrade Facilitation and Paperless...

UNNExT Workshop on Trade Facilitation and Paperless Systems for Agrifood Products, 4-6 May 2015, Almaty. sk @

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UNNExT Workshops on Trade Facilitation

Almaty, Kazakhstan

4-6 May 2015

UNNExT Workshop on Trade Facilitation and Paperless Systems

for Agrifood Products

Somnuk Keretho, PhD Director, Institute for IT Innovation..........

Kasetsart University, Bangkok [email protected]

Business Process Analysis (BPA) and Single Window for Trade Facilitation

UNNExT Workshops on Trade Facilitation

4-6 May 2015 Almaty, Kazakhstan


Speaker - Somnuk Keretho, PhD

Somnuk Keretho is an assistant professor of Computer Engineering Department, and the founding Director of Institute for IT Innovation (INOVA), a research and development institute of Kasetsart University, Thailand, specializing in ICT-enabled innovation, trade facilitation and e-logistics initiatives including National Single Window strategic planning and implementation, enterprise architecture for e-government and e-business, business process analysis and improvement, data harmonization and modeling, ICT-related standards and interoperability, e-transaction related laws, and process-oriented quality software engineering.

He has led several ICT strategic projects at organizational, national and regional levels. For the past nine years, he has assisted Ministry of Information and Communication Technology, National Economic and Social Development Board, Ministry of Transport, Port Authority of Thailand, and Ministry of Agriculture in architecting “Thailand Single-Window e-Logistics” related projects including its National Single Window strategy, implementation plans, interoperability and standards, harmonization and simplification of trade and transport-related documents and procedures, automatic electronic-gate systems development for the Bangkok Port and the Leamchabang Sea Port, and related software development projects. Several of those projects are being aligned with some regional and international collaborations, in which Dr. Somnuk has actively engaged with those related to trade facilitation, single window and paperless trading initiatives through UNESCAP, UNECE, APEC, ASEAN and GMS. He has played several roles in catalyzing the creation of and actively contributing to the United Nations Network of Experts for Paperless Trade in Asia and the Pacific (http://unnext.unescap.org), and providing several technical supports to the APEC Paperless Trading and ASEAN Single Window Initiatives. He is the main author of the UNNExT Business Process Analysis Guide, the UNNExT Data Harmonization Guide and the UNNExT Guide for Single Window Planning and Implementation as jointly published by UNECE and UNESCAP.

http://www.unescap.org/unnext


Objectives of this session

To introduce the role of BPA (including business

process modelling techniques) and explain

how to conduct a BPA project for analyzing

the “as-is” international trade procedures,

and proposing “to-be” improvement measures.

[based on “UNNExT Business Process Analysis Guide

to Simplify Trade Procedures,” UNESCAP & UNECE, 2012].

To discuss some BPA case studies for

agrifood trade facilitation improvement

including recommendations towards

the implementation of Single Window/

Paperless Trade Environment.


Topics of this session

What/Why?: Business Process Analysis for TF

Graphical Notations: Unified Modeling Language (UML)

Three(3) Phases for conducting a BPA project

Case Examples: Thailand & Cambodia

BPA Group Exercises

Summary & Conclusions


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.

Examples

– Procedures (including document transactions) of

importing processed fruits to Kazakhstan from Kyrgyzstan

– Export Customs Declaration and Clearance Procedures

at the Border Point

– Applying & Issuing Process for a Certificate of Origin

(e.g. as needed to import goods to Azerbaijan)

– Applying & Issuing Process for a Phyto-sanitary Certificate


What is…

…a Business Process Analysis (BPA)?

A modelling and analysis of business processes

for understanding the current situations and

proposing recommendations for improvement.

Examples

– Documenting some existing core processes of an organization in

delivering some services to its customers

– Describing a “Standard Procedure,” with some exceptional cases

– Identifying quantitative indicators related to a specified process,

e.g. no. of documents, no. of steps, and time/cost of each step

– Analysis of bottlenecks or redundancies in procedures & documentation

– Providing recommendations for process simplification or

process automation.


Why conduct a Business Process Analysis?

Business Process Analysis is a practical study

to understand attributes of business processes, and their relationships

Who involved

Procedures and Documents

required

Related Rules and Regulations

Some quantitative

indicators


What are benefits of Business Process Analysis?


BPA, the first important step, towards Paperless Trade and Single Window Development

BPA is the first technical step in preparing for trade facilitation measures including recommendations on how to implement paperless trade and SW environment.

Since it should provide

– Inventory of processes, documents, data, parties, rules & regulations governing those processes.

– Description of the processes

– Specifications for harmonizing data and development of electronic documents

– Specifications to develop software for the automation of procedures

– A basis for Business Models for the operation of SW


Data Model and

Digital Documents

Data Analysis and

Simplification

Document

Simplification

Business Process

Analysis and

Simplification

Develop

electronic

documents

Simplify paper

documents

From Paper to Paperless Trade: A Stepwise Approach

Analyse

information in the

documents

Understand and

simplify business

processes


Trade Facilitation Improvement Movement of goods in international trade – involving at least 3 kinds of flows

Seller (Exporter)

Buyer (Importer) Physical Goods

Payment

Information/Documents

Customs Department Dept of Agriculture

Ship Agents Transport-Operators

Terminal-Operators Carriers

Banks

Information/Documents (upto 300 document types*)

Freight Forwarders

Cargo Insurance

Traders Exporters

Importers Traders

Economic Operators

Food and Drug Administration (FDA)

Chamber of Commerce

Our Improvement Opportunities

Trade Facilitation

Improvement -

Efficiency in procedures &

document handlings

Other regulatory agencies

Customs Borkers Dept of Fisheries

36 regulatroy agencies, 10 business sectors*, e.g. importers, exporters, banks, F/F, Customs Brokers, Insurance companies, Terminal Operators, Sea Carriers, Airlines, Trucks, etc.

* Refering to “Thailand Case”

Airlines Trucks Port Authority


UN/CEFACT Buy-Ship-Pay Model for International Trade


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

Thai Case Example

Regulatory Docs

Transport Docs

Buy/Pay Docs


Business Process Analysis Guide - in Exporting Jasmine Rice from Thailand -

1. Buy - Conclude sales contract and trade terms 2. Obtain export permit 3. Arrange transport 4. Arrange the inspection and fumigation 5. Obtain cargo insurance 6. Provide customs declaration 7. Collect empty container(s) from yard

8. Stuff container(s) 9. Transfer to port of departure 10. Clear goods through customs 11. Handle container at terminal and stow on vessel 12. Prepare documents required by importer 13. Verify the accuracy/authenticity of exported cargo 14. 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

11

Time-Procedure Chart

16 days are required for these procedures

and documents transaction

About 7-8 days needed

for document preparation

before cargo movement.

Another 7-8 days needed

during cargo movement.

unnext.unescap.org

Trade Facilitation is about

Enhancing National Trade Competitiveness

by improving import/export/transit/transshipment procedures and

document/information handlings among government agencies,

trade-related business entities and logistics service providers

for all major modes of transportation of the country

(sea, air, land and railway transport)


Trade Facilitation – reducing cost, maximizing efficiency & also better regulations –

Trade facilitation* looks at how procedures and controls governing the movement of goods across national borders can be improved to reduce associated cost burdens and maximise efficiency while safeguarding legitimate regulatory objectives.

Examples of regulatory activity in international trade

– Fiscal: Collection of customs duties, excise duties and other indirect taxes; payment mechanisms

– Safety and security: Security and anti smuggling controls; dangerous goods; vehicle checks; immigration and visa formalities

– Environment and health: Phytosanitary, veterinary and hygiene controls; health and safety measures; CITES controls; ships’ waste

– Consumer protection: Product testing; labelling; conformity checks with marketing standards (e.g. fruit and vegetables)

– Trade policy: Administration of quota restrictions; export refunds * http://en.wikipedia.org/wiki/Trade_facilitation


Trade Facilitation is about “Process Reform.”

Trade Facilitation

is about

• Business Process Analysis (Understanding the “as-is” process,

its bottlenecks/its root causes)

• Business Process Redesign (Designing the better “to-be” process)

• Implementing and Adopting the Change


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.

http://en.wikipedia.org/wiki/Unified_Modeling_Language


UML Diagrams for BPA

Use Case Diagrams

A frame of reference illustrating a high level business process and its associated actors

Activity Diagrams

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 terms Exporter or

Representative Importer

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

Representative Importer


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


Exercise – Read the Use Case Diagram (Exporting frozen shrimpts from Thailand)


UML Notations for Activity Diagram


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)


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


Exercise – Read the Activity Diagram


Three Phases in Conducting a BPA Project

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


Three Phases in Conducting a BPA Project

Project

Sponsor

Project Manager/

Project Leader

Process

Analysts

Process Participants/

Business Domain Experts

1) Define a

project scope

2) Develop a

detailed plan and

secure resources

3) Acquire

background

information

4) Conduct

interviews and document

captured data

5) Analyze the “as-is”

process and identify

bottlenecks

6) Develop and

propose

recommendations

Phase I

Phase II

Phase III

4 important roles in

conducting a BPA project.

1. Project Sponsors

2. Project Manager

3. Process Analyst(s)

4. Domain Experts


Outputs of a BPA project

Step Deliverable

Step 1: Define project

scope

Use case diagram illustrating business domain, process areas, process participants, and key

business processes

Step 2: Develop a detailed

plan and secure resources

Detailed project plan including an estimation of human resources required, schedules, and

software supported tools

A list of potential interviewees and their contact information

Step 3: Acquire background

information

A folder of background information about the business processes under the investigation

A list of guiding questions for the interview

Step4: Conduct interview

and document captured

data

A set of activity diagrams illustrating 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, and information flow

A set of business process descriptions that describes activity diagram and lists all related rules

and regulations

Activity diagram illustrating integrated processes in the business domain

Time-Procedure chart displaying time required to complete each business process

Step 5: Analyze the “as-is”

processes and identify

bottlenecks

A set of observations of the as-is business processes that have the potential for improvement

Step 6: Develop and

propose recommendations

Final report with recommendations which may include diagrams of “to-be” business processes

Ph

ase

I P

has

e II

Ph

ase

III


Some tips/techniques for business process analysis and improvement recommendations

To identify any bottlenecks, redundancies, and non-value-added activities in procedural and documentary requirements of the “as-is” business processes, and proposing improvement opportunities by the following tips:

1. Merge some procedures or documents

2. Eliminate redundant procedures and unnecessary documentary requirements

3. Automate procedures and promote the sharing of electronic trade and transport data among relevant stakeholders

4. Modify related laws and regulations to facilitate the operation of the newly designed business processes

5. Reform the regulatory-related organizational structures, etc.


Example: Identify Bottlenecks and Redundancies

Department of

Foreign Trade Office of

Commodity Standards Customs Exporter or Representative

Prepare documents

for submitting to

Customs at port of exit

Permit for the Export

of Rice (A.4) with actual

quantity exported

Certificate of Standards

of Products (MS. 24) with

actual quantity exported

Record the actual

quantity exported

and released date

Acknowledge

the provided

information

Prepare documents

to declare the actual

amount exported



quantity exported




Evidence of Sales

(Purchase Order or

Sales Contract)

Acknowledge

the provided

information

Example of redundant

procedural and

documentary

requirements Acknowledge

the provided

information

Department of

Foreign Trade Verify the

accuracy/authenticity

of exported cargo Exporter or

Representative

Customs

Office of

Commodity Standards

Thailand’s Export Process of Jasmine Rice


Office of

Commodity Standards Customs Exporter or Representative

Prepare documents

for submitting to

Customs at port of exit

Record the actual

quantity exported

and released date

Acknowledge

the provided

information



quantity exported




Evidence of Sales

(Purchase Order or

Sales Contract)

Acknowledge

the provided

information

Department of

Foreign Trade

Department of

Foreign Trade Verify the

accuracy/authenticity

of exported cargo Exporter or

Representative

Customs

Office of

Commodity Standards

Example: Remove Redundancies

Thailand’s Export Process of Jasmine Rice

A BPA Project - Case Study Thailand Sea Importation of Standardized Cargoes


Phase I: Scope Setting

Example:

Regulatory and business requirements

related to the operation and management

of port before, upon, and after the import

and export of containerized ordinary

cargoes through all modes of

transportations (road, rail, air, and sea)

– Carrier scheduling for port use

– Cargo handling

Import

– Starting point: when a carrier enters port

– Ending point: when cargo is picked up and

transferred to an importer

Export

– Starting point: when cargo arrives port

– Ending point: when cargo is on board and ready to

be transferred to the country of importer

•Airport (Chiengmai)

•Sea Port (Chiengsan)

•Dry Port (Maesai)

•Dry Port (Mukdahan)

•Dry Port (Nongkai)

•Train Station

•Dry Port

•ICD (Ladkrabang)

•Suvannabhumi Airport

•Sea Port (Unithai)

•Etc. •Sea Port

(Lamchabang)

- Site Visited

No. of Interviews = 45

- Phone & email interviews

No. of Interviews = 16


Phase I: Scope Setting Example: Importation by Sea

• Vessel Agent

• Maritime Pilot’s Station

• Marine Department

• Port Operator

• Customs

• Other Government Agencies

• Importer or Representative

• Terminal Operator

• Haulage/Truck

• Bank

Example: Capturing the

Stakeholders involved in

importation by sea

Draw a use case diagram to

illustrate the business domain

with process areas and

high-level business processes

as well as stakeholders

associated with each of them

Vessel Agent

Port Operator

Marine

Department

Terminal

Operator

Haulage/Truck

Maritime Pilot’s

Station

Customs

Importer

or Representative

Other Government

Agencies

Business Processes

Actor

Enter a seaport

Report cargo

manifest

Unload cargo

Clear goods

through customs

Arrange the

transport for the

pick-up of goods

Handle cargo at

the terminal

Prepare to

enter a seaport

Prepare documents

for import

Pay for goods Bank


Phase II: Data Collection and Process Documentation Example: Prepare to Enter a Seaport Process

For each process, draw an

activity diagram that describes

activities and associated

documentary requirements Vessel Agent

Port Operator

Marine

Department

Maritime Pilot’s

Station Prepare to

enter a seaport

Maritime Pilot’s Station Marine Department Port Operator Vessel Agent

Prepare

documents

Request for

Maritime Pilotage

General

Declaration

Application for

Vessel Entering

Port Area

Prepare the

allocation of

equipments

Assign pilot officer Receive

Receive

Receive


Phase II: Data Collection and Process Documentation Example: Activity Diagram of Prepare to Enter a Seaport Process


Prepare

documents

Request for

Maritime Pilotage

General

Declaration

Application for

Vessel Entering

Port Area

Prepare the

allocation of

equipments


Receive

Receive

Sequence of

actions carried

out to achieve

a specific goal

Swimlane shows a boundary of activities

to be carried out by a responsible actor.

Document associated

with each action

Initial State shows the starting

point for the sequence of

activities.

Final State shows where the sequence of activities reaches its end.


Phase III-1: Process Analysis Example: Prepare to Enter a Seaport Process (Existing Process)


Prepare

documents

Request for

Maritime Pilotage

General

Declaration

Application for

Vessel Entering

Port Area

Prepare the

allocation of

equipments


Receive

Receive

Duplicated data submission:

Three documents with

almost identical data are

handed-in to different

receivers.

Problems :

- Duplicated Information

- High Cost and Time for sending and receiving documents

- Data Inconsistency


Phase III-2: Recommendation Development Example: Prepare to Enter a Seaport Process


Prepare

documents

Request for

Maritime Pilotage

General

Declaration

Application for

Vessel Entering

Port Area

Prepare the

allocation of

equipments


Receive

Receive

Process simplification

Single submission

(electronic means)

Proposed Recommendations :

- Remove unnecessary data requirements

- Harmonize and standardize data requirements

- Automate “prepare to enter a seaport” process


39

Phase III-2: Recommendation Development Example: Prepare to Enter a Seaport Process (Proposed New Process)

Vessel Agents send

electronic documents to

Marine Dept through NSW

Exchange

Maritime

Pilot’s Station

Port Operator Marine Dept.

Stakeholders :

1) Vessel

2) Value Added Service

3) NSW Exchange

4) Marine Dept.

5) Port Operator

6) Maritime Pilot’s Station

Vessel Agent

Prepare

Update Status

Update Log

Update Log

Update Log

Application for

Vessel Entering

The Port Area

Pilot

Request Form

General

Declaration

NSW Exchange Value-added

Service

Provider

Marine Dept.


Phase III-2: Recommendation Development Example: Time – Procedure Chart of Importation by Sea

9 Main processes

1. Prepare documents for import

2. Prepare to enter a seaport (Vessel)

3. Enter a seaport (Vessel)

4. Report cargo manifest

5. Unload cargo

6. Clear goods through customs

7. Arrange the transport for the pick-up of goods

8. Handle cargo at the terminal

9. Pay for goods

1 2 3 4 5 6 7 8 9

Days

Process

20

10

0

5

15 1 days

1 day

3

8

6

1 day 1 day 4

7

2 day

1

10 day

9

4 day

1

2 3 4 5 6

7

8

9

20 days

12 days 2

2 day 1 day

5

As-Is

To-Be

A BPA Case Study

Cambodia BPA


Cambodia BPA (since 2010)

The analysis of the Cambodia BPA was initiated by H.E. Dr. Hang Chuon

Naron, Permanent Vice Chairman of the Supreme National Economic

Council (SNEC) in mid 2010 following the holding of a National Workshop

on Advancing Trade Facilitation under a thematic “Business Process

Analysis for Trade Facilitation: Operationalising the Rectangular

Strategy for Growth” on 1-2 June 2010 in Phnom Penh.


Cambodia BPA (since 2010)

The workshop was organized jointly by the General Department of

Customs and Excise, the Ministry of Commerce, and SNEC and

supported by the UNESCAP and UNECE.

The workshop laid the foundation for ESCAP’s support, a tailored

Business Process Analysis (BPA) ‘training of analysts’ course followed

by application of BPA techniques to four key import and export products

identified under Cambodia’s economic diversification strategy.

– BPA on rice, cashew, silk and pharmaceuticals


A Case of Rice Export prior to the launch of the Rice Export National Policy in August 2010

To export rice below 200 ton, the Private Sector needs to write a letter

to ask for permission from MoC and GDCE (General Department of

Customs and Excise). However, even though the MoC agrees, the Private

Sector still needs to negotiate with the GDCE. This takes time and the

buyer contract time is limited i.e. from 3-4 weeks only.

Exporting more than 200 ton of rice is even more difficult and

expensive. For example: the Private Sector (PS) needs to go to Green

Trade (GT) which has the monopoly to export rice; ask them to write a

letter to MoC and then the MoC writes another letter to GDCE to ask for

facilitation on this export operation. At each stage, the concerned

authorities can create difficulties, delay unless the PS agrees to pay

informal fees. Expenses occurred are as follows: (i) 50$ for CO, 0.1 % for

export tax, (official); (ii) 170$ for export permit from GDCE; (iii) GDCE

charges 55$ per container for checking and so does the CAMCONTROL;

(iv) Ministry of Agriculture, Forestry and Fisheries (MAFF) charge 24$ to

check a container; (v) When loading merchandises into the container,

the MoC charge 40$ per container.


A Case of Rice Export prior to the launch of the Rice Export National Policy in August 2010 (cont.)

Moreover, to transport rice from PS to Sihanouk Ville Port

costs 40$ per ton which include 5$ charged by the trucking

company.

The exporter needs to top 50$ on the price of rice (for

example buying the farmer 375$/ton and selling to buyer

425$) to be able to cover the export and transport charges

and keep 10$/ton of gross margin.

The PS also raises that the PS cannot load the rice into

container directly from the millers in various places.

They have to bring the rice to PP and load into the container.

This cost double price.

These are barriers that Cambodia cannot export rice in large

amount.


Cambodia BPA recommendations for improvement

One-Stop Shop: a special service for processing the export and import of

agricultural products. This office is in charge of issuing all the necessary

permits and ensure: (i) transparent fee, and (2) time limit in 5 working days.

Reduce informal fees: To be competitive with neighboring markets which

are market leaders, Cambodia needs to reduce the sales prices of rice by

limiting unofficial fees for both export and import procedures.

Export of rice: ensure free and fair competition by removing monopolies

such as Green Trade. Thus enabling companies to export freely.

Intervention in transport and transfer of merchandises: The MoC can

influence other relevant entities such as dry ports to lower the cost for a

container from 20 USD to 3-5 USD. Or else the Royal Government of

Cambodia (RGC) can provide a location for transferring merchandises without

charging any fee. The RGC should establish or provide land for establishing

of transferring center for huge amount of merchandises so that Cambodia can

be a big rice supplier in Asia. There should be a website to promote rice in

Cambodia or have an association of exporters of rice like in Thailand.


Cambodia BPA: as-is rice export process (documents & agencies to be visited)


Actors & Main Procedures for Cambodia Rice Export


Cost involved in Cambodia rice export


Time involved for Cambodia rice export


Trade facilitation measures in Cambodia

Cambodia BPAs have identified bottlenecks, and proposed

several specific improvement measures.

Action 1: Tackling Capacity building issues, e.g.

capacity building for exporting firms on export procedures, and

capacity building on market access conditions.

Action 2: Mobilizing of private sector rice actors

Action 3: Enhancing trade facilitation, reducing informal fees

and eliminating illegal check points

Action 4: Identifying key legal and institutional gaps


Trade facilitation measures in Cambodia

Cambodia BPAs provide strategic input which becomes the

National Rice Export Policy endorsed by

the Cambodia Government

Measure 1: MEF/General Department of Customs and Excise (GDCE), MAFF

and MoC/General Department of CAMCONTROL and relevant agencies shall:

develop a specific strategy to identify and streamline export processing procedures

including inspection, documentation requirements, fees and time required to process

export applications; define clear and publicly transparent division of responsibilities

among export regulating ministries/agencies; consider milled rice export as a top

priority in order to reduce to a minimum informal payments and time required to

export by extending “special treatment” similar to the garment sector.

Measure 2: Implement a single-stop service for export processing: MEF/GDCE,

MAFF and MoC/CAMCONTROL and relevant agencies shall set up a Single Stop

Service for export processing and issuing certificates for SPS, fumigation, grading

and quality, quantity and weight, and customs declaration.


Conclusions of Cambodia Rice BPA

The rice sector holds a huge potential economic growth for Cambodia.

If rice export could reach 3 million tons, the total export value would

amount to USD 2.1 billion (approximately 20% of GDP).

According to rice BPA study, high trade facilitation and internal

transportation costs, in particular, are cited as having a significant impact

on smaller rice traders’ ability to effectively export.

The BPA on rice export was instrumental in highlighting actual

uncompetitive trade facilitation practices as well as identifying helpful

suggestions in improving trade facilitation procedures and processes at

the national level.

Overall positive effects of the Rice Export Policy: There has been

some improvement in the export process after the launching of the

new policy of paddy production and rice export. Many government

agencies along the institutional value chain to support the implementation

of the rice export policy. There are visible improvements in reduction of

government-related transaction costs related to Customs, Camcontrol, and

Commerce.


Lessons learned from Implementing BPA

Get Buy-in (political support & ownership) from

the highest-level policy decision makers

Secure adequate resources

Clear roles and responsibilities of

the project stakeholders

Choose the right Champion, e.g. with passion & strong political connections

Start small, and then evolve

Several rounds with key stakeholders for consultation,

verification and validation of the findings & recommendations

Profit from experience

Invest in training


Summary of this session

It is strongly recommended for the country (and also for

each government department) to conduct detailed end-

to-end BPA study (e.g. across different regulatory

agencies & business stakeholders) for the national

strategic products (or for its internal process within the

department) since it is a significant assessment tool for

analyzing the as-is and proposing specific trade

facilitation measures for the country (or for the

department).

Graphical notations based on a modeling language,

UML, is introduced.

Step-by-step BPA project management is proposed.


Conducting a BPA Project in 3 Phases

1. Defining Scope of and Planning a BPA Project

2. Capturing and Modelling the As-Is Process

3. Analyzing Findings of the BPA and

Proposing Recommendations for Improvement

(Proposing the To-Be Process)


Group Exercise 1 - Defining the scope of a BPA project -

Splitting into small groups

Discussing the scope of a BPA project (that you think is very useful

to be carried on even after this workshop), e.g.

– Identifying one strategic export (or import) product of your country

– Identifying a major port or a major mode of transport

(with high level/volume of export activities), e.g.

through a cross-border dry port, a major sea port,

or a major air port.

– Identifying some complicated procedures, e.g. customs clearance with

some certain permits and/or special inspection (involving with not just

customs but also other regulatory agencies)

(covering all Buy/Ship/Pay related procedures)

If time permits, preparing a presentation on the selected

scope of a BPA project, and the reasons why this scope is

selected.


Group Exercise 1 (cont) - Defining the scope of a BPA project -

If time permits, please draw the scope of your BPA

project with a Use Case Diagram

– Identifying the stakeholders/agencies [Actors]

– Identifying key business processes

[Use Cases]

– Identifying their relationships [Which actors are

associated with which Use Cases]


Group Exercise 2 - Conduct Business Process Modeling -

Working within your small group

Draw at least one activity diagram, and collect related

quantitative indicators (numbers of steps, number of physical

visits, time and cost needed for each of those steps, etc.)

for capturing the detailed procedures and documentation

requirements for a selected Use Case.

– Data collection through the Internet,

or from any accessible reference materials

– Data collection from interviewing with domain experts

– Visualizing of those procedures with an activity diagram

– Trying to, at least, verbally describe that activity diagram,

if time permitted, describe it in writing (process description).


Group Exercise 3 - Identify bottlenecks and recommend improvement measures -

Discuss in your small group, and be prepared to

present your findings

Identify and analyze one or two bottlenecks

in your activity diagram(s)

Identify improvement opportunities

Propose your improvement recommendations and

new “to-be” Activity Diagram for improvement

(check also for political, technical, and financial

possibility, …..)


Summary: Beyond a BPA Project

Timeline

1. Inception Phase

- Thinking about

the direction

(to do or not do sth)

- Preparation

- TOR development

(scoping the

objectives)

- Overall Plan

2. BPA Project Phase

- Detailed Plan

- Data Collection

- Capture/Document

the process in details

-Provide

recommendations

- Submit the final reports

3. Post-Project Phase

- Push the

recommendations

to implementation

Today Date Official

Project Kickoff

Date

Project end

Date


WBS 5 – Administrative/Project Tracking Work-Monthly progress report

WBS 1

– Refine the scope

of the project

- Develop the

detailed plan

Project Kickoff

Date

Project end

Date

WBS 2

– Collect information

- Capture & Document

the process

An Example of BPA Project Plan

Month 1 Month 2 Month 4 Month 3

WBS 3

– Analyze and identify bottlenecks

- Provide recommendation for

improvement WBS 4

– Wrap-up &

submit the

final report

Several iterations of

verification & validation

(refinement)


Expected Outputs of the BPA project

Step Deliverables

Step 1: Define project

scope

Use case diagram illustrating business domain, process areas, process participants, and key

business processes

Step 2: Develop a detailed

plan and secure resources

Detailed project plan including an estimation of human resources required, schedules, and

software supported tools

A list of potential interviewees and their contact information

Step 3: Acquire background

information

A folder of background information about the business processes under the investigation

A list of guiding questions for the interview

Step4: Conduct interview

and document captured

data

A set of activity diagrams illustrating 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, and information flow

A set of business process descriptions that describes activity diagram and lists all related rules

and regulations

Activity diagram illustrating integrated processes in the business domain

Time-Procedure chart displaying time required to complete each business process

Step 5: Analyze the “as-is”

processes and identify

bottlenecks

A set of observations of the as-is business processes that have the potential for improvement

Step 6: Develop and

propose recommendations

Final report with recommendations which may include diagrams of “to-be” business processes

WB

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BS

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WB

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Key Roles of a BPA project

Project Sponsor:…..

Project Manager:…..

Process Analysts:……

Project Duration: …… months

Stakeholders/Information Resource Persons:

Selected representatives from Stakeholders/Agencies,…

Somnuk Keretho, PhD Director, Institute for IT Innovation..........

Kasetsart University, Bangkok [email protected]

Q & A Thank You.

Wish you a good SW journey.

UNNExT Workshop on Trade Facilitation and Paperless Systems for Agrifood Products

4-6 May 2015 Almaty, Kazakhstan

UNNExT Workshops on Trade Facilitation...UNNExT Workshop on skTrade Facilitation and Paperless...

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