1

UNNExT Workshops on Trade Facilitation

Almaty, Kazakhstan

4-6 May 2015

UNNExT Workshop on Trade Facilitation and Paperless Systems for

Agrifood Products

2

STREAMLINING AND AUTOMATING PROCEDURES FOR AGRIFOOD TRADE

UNNEXT Workshop on Trade Facilitation And Paperless Systems for Agrifood Products

4-6 May 2015, Almaty, Kazakhstan

FRANCIS LOPEZ

Streamlining and Automating Procedures for AgriFood Trade

Agenda • Review of Agricultural Supply Chain : Import and Export Processes

• Key Documents and Information Systems for AgriFood Trade

• Overview of Trade Automation Models

• Role of Single Window and Risk-based Controls in Facilitating Trade

• Modernizing Sanitary and Phytosanitary Systems and Certification

• Introduction to electronic SPS Exchange and automating Trade

procedures for AgriFood Trade

Typical AgriFood Supply Chain*

* Information Management in AgriFood Chain: Towards an Integrated Paperless Framework for AgriFood Trade Facilitation

Collaboration in Trade • Identifiers: AEOs, Product

Codes • Compliance to import

requirements • Visibility across the Supply

Chain

Case Studies • India GrapeNet • Malaysia Food and

Traceability • Vietnam TraceVerified for

Fish Exports • New Zealand eCert for Meat

Products

Case Studies • US ITDS –GS1 • China eCert, GPS and RFID

Transport • Air, Sea and Land

Case Studies

• Export

– India GrapeNet

– Malaysia Food and Traceability

– Vietnam TraceVerified for Fish Exports

– New Zealand eCert for Meat Products

• Import

– China Tianjin eCert, GPS-RFID

– US ITDS

– Philippines Trade System

• Key Success Factors

– Identification of source and products

– Specific testing procedures – Export-Import collaboration to ensure

Certification for compliance to import

regulatory requirements – Accessibility of data for transparency,

monitoring and reports – Government support, possibly with

funding, for sustainability – Tangible benefits to government and

the private sector – Cost effective technical solution

Documents in AgriFood Trade

Exports

• Trade Documents

- Commodity clearance, e.g., palm/coconut oil, sugar

- SPS Certificate (Health, Veterinary, Phyto Certificate)

- Fish Catch Certificates (EU IUU Regulations)

- Halal Certificate (Moslem countries)

- Fumigation Certificate

- Export Declaration

- Certificate of Origin

• Supply Chain Documents

- Invoice

- ASN/Packing List

• Transport Documents

- Advanced Manifest

- AWB/BL

6

Imports

• Trade Documents

- Import Permit (eg SPS Import Clearance)

- SPS Certificate (Health, Veterinary, Phyto Certificate)

- MAV Import Certificate (Safeguard Measure)

- Request for Inspection

- Veterinary Quarantine, Meat Inspection and Laboratory Certificate

- Certificate of Meat Inspection

- Import Declaration

- Certificate of Origin

• Supply Chain Documents

- Purchase Order

- Invoice

- ASN/Packing List

• Transport Documents

- Advanced Manifest

- AWB/BL

Challenges in Paper-based Processes

• Hardcopy documents

- Daily volume of documents submitted

- Accuracy, consistency of information

• Manual intervention in the review, processing and

approval

- Clerical errors in review

- Human intervention in the approval processes

- Data re-entry to generate reports

• Transparency

- Data visibility, documents in filing cabinets

- Accountability

- Limited data analysis

7

1. Export Procedures

– Export Declaration

– Certifications in Compliance to WTO SPS Agreement, availability to import authorities

– Certificate of Origin

– Manufacturer/establishment Registration, GAP, etc.

2. Cross Border Transportation

– Transport documents: AWB/BL/Waybill

– Cargo handling information, monitoring

3. Imports Procedures

– Import permit issued by regulatory agencies

– Verification on compliance to import and quarantine regulatory requirements

– Quarantine, physical inspection

– Import declaration and Custom Clearance

Food Processors, Consumers

Producers, Traders

Focus Areas in Trade Facilitation

1. Producer, Manufacturer, Trader

– Identification of the source: product, producer, and area

– Certification particularly on the quality of produce

2. Export Trade Regulatory Organizations

– Compliance to SPS Certification and import regulatory requirements

– Electronic SPS Certificate accessible to Import Quarantine Agency

3. Import Trade Regulatory Organizations

– Import permits to specify requirements

– Advanced verification and acceptance of Certifications

– Risk Management to reduce quarantine, physical inspection

– Compliance to Customs requirements

Food Processors, Consumers

Producers, Traders

Interventions for Trade Facilitation

SPS Certificate

• Sanitary and Phytosanitary Certificate

- WTO SPS Agreement

- International Plant Protection Council (IPPC) and the

International Plant Sanitary Measures No.12 (IPSM)

- CODEX Alimentarius Commission/OIE

• Issuance of SPS Certificate

- Harmonise SPS measures, based on international standards,

guidelines and recommendations

- Safeguard international trade of plants, animals and fisheries

and products thereof

10

SPS Certificate Workflows

• Application and issuance

- Submission of application, samples support

documents

- Inspection of production facilities, and

laboratory tests on products (if applicable)

- Preparation and approval of SPS Certificate

• Transmission of SPS Certificate

- Submission by exporter to importer thru courier

• Utilization of SPS Certificate

- Verification and validation vs import permit,

declaration and quarantine inspection

12

Food Processors, Consumers

Producers, Traders

e-SPS Certification

• Definition

- A secure exchange of SPS / eCert Messages from Issuing

Authority (Export) to Quarantine Authority/National Plant

Protection Organisation -NPPO (Import)

• Objectives

- Ensure compliance to health, sanitary requirements of

exporting and importing country

- Facilitate quarantine compliance and control fraud

- Trade facilitation, cross border efficiencies with advanced

information, reusable data

13

e-SPS Features

• Government-to-Government (G2G) Exchange

• Equivalent to paper SPS Certificate

• Prior Notice - available prior to approval

• Initiate pre-clearance processes including risk

management

• Verification of paper SPS Certificate

• Reusable SPS data : traders, products

14

E-SPS Initiatives

• IPPC IPSM No 12: ePhyto Certificate Hub

Model

• AU DAFF e-CERT: Transmission of UN

EDIFACT e-Cert

• US ITDS GS1: Use of Identifiers on Products

and Traders

• PAA e-SPS: Provisioning of Workflow

Infrastructure

16

IPPC ISPM No.12 : e-Phyto

• Definition

- It is the electronic transmission of phytosanitary certificate

information (electronic equivalent of a paper phytosanitary

certificate), containing the same information and giving the

same guarantee.

• Key Elements

- Message format

- Harmonisation of message contents (as prescribed in

ISPM12)

- Secure transmission

- Authenticity of the message

17

IPPC: International Plant Protection Convention

ISPM: International Standards for Phytosanitary Measures

IPPC ISPM No12 ePhyto Certificate

• E-Phyto is NOT a “copy” of the Phyto Certificate

• A secured data set conforming to the ISPM12, transmitted securely from exporting to importing National Plant

Protection Office (NPPO)

• Equivalent to a paper Phytosanitary Certificate, and may be

used only if accepted by the importing NPPO

18

IPPS ISPM No 12 ePhyto

• Electronic Certificate may be issued where accepted by the

National Plant Protection Office (NPPO) of the importing country

• Specific required provisions

- The mode of issue, transmission and level of security is acceptable to the NPPO of the

importing country

- Information provided is consistent with the IPPC Model Phytosanitary Certificates

- The purpose of the phytosanitary certification under the IPPC is realized

- The identity of the issuing NPPO can be adequately established and authenticated

• Available to the relevant NPPO upon consignment arrival

19

e-Phyto Certification is NOT ..

• Text processing or other electronic generation of paper

forms (eg. SPS or Phyto Certificate)

• Transfer of electronic version of a paper certificate (e.g.

Certificate in pdf)

• On-line data entry [by exporting authority] in system of

importing country

• National electronic system to facilitate phytosanitary

certification

• National system to facilitate phytosanitary import process

through inspections

20

. . Nico Horn on behalf of the IPPC ePhyto Steering Committee

Agreed Principles and Recommendations for the e-Phyto Exchange

1. Agreement on definition of e-Phyto Certification

2. All elements for e-Phyto Certification exchange

mechanism will be derived from IPSM 12

3. Universally accepted standards for secure

Certificate exchange, message format and

implementation of procedures will be used

4. UN/CEFACT Schema (data elements, core

components) must be reviewed to ensure

consistency with IPSM 12 requirements, and a user

guide developed to include an ‘IPSM12 Overlay

for the UN/CEFACT Schema’

23 . . 9 Points Summary on Key Agreements during the Plenary of the 3-day Workshop

Agreed Principles and Recommendations for the e-Phyto Exchange

5. During transition periods in implementation, current

hard-copy practices would still apply

6. Rely on IT experts to provide advise on methods for

flexible and secure electronic transfer

7. Initiate a multilateral standardization approach rather

than a bilateral approach with respect to country-to-

country negotiations for exchange

8. Engage developing countries through regional

cooperation and pilot projects and use IPPC for

outreach activities, and

9. Develop simple-to-understand communication pieces

such as Background Paper and “Myth-busting” Question

and Answers 24

Australia DAFF e-Cert

• E-Cert Website (https://apps.daff.gov.au/ecert/default/Welcome.aspx)

- DAFF Biosecurity Internet application for electronic certification

of traded food and agricultural commodities. This application

currently provides electronic certification for Australian exports

of Meat, Skins, Fish, Dairy, Horticulture, Grains, Wool, Eggs and

Inedible Meat

- Online search/view of Export/SPS/Health Certificates

- Allows updates on Certificate status: Accepted, Detained or

Request for Replacement

- Allows download of Certificates in XML format

• Alternative Access Mode to E-Cert Data

- Pull data from AQIS via interaction with SOAP interface

- Push data to Import/Quarantine Authority via SMTP and digital

certificates

25

Australia DAFF e-Cert

AU DAFF

SPS Certificate

Import Quarantine

Agency

Online SPS Verification

Download SPS (Pull)

Transmit e-SPS (Push)

3 MODES OF E-CERT EXCHANGE

US ITDS GS1 Pilot E-Cert

• Toys, Cut flowers, Meat and Poultry

• Global eCommerce Product Catalog

- Granularity of product identification

- Product visibility across borders

- Consumer security

- Cost savings

• Compliance to unique country-by-country,

product-by-product requirements

• Enhanced Risk Management

27

Use of GS1 Standards in SCM

28

GS1 Standards

29

• Global Location

Number (GLN)

• Global Trade

Identification Number

(GTIN)

• Global Data

Synchonization

Network (GDSN)

US ITDS GSW Pilot E-Cert Findings

• 100% of the 21 static characteristics assigned to

identify and classify meat and poultry products

could be downloaded from a GS1 GDSN-

compliant catalog

• No information technology or security obstacles,

enable re-use of supplier published product

information, with complex product

characterisation

• Improved data accuracy and efficiencies (i.e.

reduce product characterisation errors)

30

PAA eSPS Exchange Model

31

32

PAA E-SPS Exchange

PAA e-SPS with Advanced Import Permit

33

PH Agriculture Import Permit Procedure

Electronic (0.5 – 1 Calendar day)

• Preparatory Activities

– Registration of authorized importer

– Online submission of list of products to pre-qualify for importation; Online approval by agency

– Remittance of advance payment/deposits

• Online encoding into web form and submission with attached scanned support documents

– Application restricted to pre-qualified products

– Compliance to mandatory data

• Agency processing

– Auto date and time stamp on receipt

– Automated data validation

– Online review of support documents

– Online Endorse with pre-defined conditions

– Auto-debit payment of fees

– Online approval

– Automated transmission to NSW

• Online download of import permit

• Printing, electronic transmission to supplier

Manual (5 - 10 Work days)

• Submission to agency head office

– Application form

– Support documents (Pro-forma Invoice, Certificate of Product Registration, etc.)

• Agency processing

– Register receipt of documents

– Verification of importer

– Review of permit application and support documents

– Qualify list of products

– Stipulation of conditions for importation and endorsement for approval

– Approval

• Payment of import permit fee and issuance of official receipt

• Issuance of the Import Permit

• Importer transmission to supplier (Import permit valid at the time of shipment from origin)

1 2 3 4

MAV Import

Certificate

SPS Import

Clearance

E-SPS

From

Origin

7 8

Accreditation/ Registration eRFI

Quarantine

Inspection

At Port

Meat

Inspection

At 2nd Border

9 6

COMI Local Transfer

Permit

DA (CSW),

BAI, NMIS

MAV, BOC

Import Entry

Declaration

BAI BAI,

BFAR,

BPI

BAI

BFAR,

BPI

NMIS NMIS, BAI DA MAV Customs eSPS

Authority

(Export)

Agriculture Trade System

PH Single

Window

Customs

E2M

5

BAI

NEDA

DOF

TEC

PH Agriculture Import Workflows

10

Rationale for Automation

• Need to reduce processing cycle time and costs

– Volume of transactions processed manually

– Repetitive processes

– High incidence of clerical errors

• Enhance risk management

– Compliance to trade and quarantine requirements

• AgriFood Traceability

37

Methodologies

• Business Process Analysis Modelling

- Understanding workflows and roles of stakeholders

- Eliminating ‘defects’ in the processes i.e. causing delays or

cost

• Document/message and data standardisation

- Adopting standards or harmonising data messages,

specifications

- Enable interoperable systems

• Modular implementation

- Designing the complete workflow/process

- Developing and implementing critical module to generate

impact on the complete process

38

Trade Automation Models

39

• Single Agency

- Single/Multiple documents

- Internal processes

• Single Window

- Multi-Agency, Multi-Documents

- Re-use data across agencies

• Multiple Systems

- Inter-Organization Information Systems (IOIS) –

interoperable, harmonized data specification, messaging

services

Implementing e-SPS Exchange to Facilitate Trade

• G2G exchange of e-SPS - in parallel to paper

and/or B2B electronic exchange between

exporter and importer

• G2G or G2B2B2G exchange of Import Permit/SPS

Import Clearance

• Pilot with countries that are ready and capable to

electronically send and/or receive e-SPS

Certificate; agree on pilot commodities

40

Challenges

• Largely manual SPS processes issuance and utilization

• Electronic SPS to facilitate export and promote trade

• Receipt/access to e-SPS Certificate mainly to

authenticate paper SPS Certificate (control fraud)

• Compliance to import requirements and the rejection

of SPS not addressed by e-SPS

• Legal, policy framework for the use and exchange of

electronic messages in lieu of documents

• Messaging and connectivity issues

41

Q & A