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Developing a National Single Window forImport, Export and Logistics in Thailand

Brief No. 08, August 2012

A number of countries in the

Asia-Pacific region are in the

process of establishing national

electronic Single Window

facilities. A Single Window can

greatly simplify trade processes

and procedures and improve

transparency and predictability

in international trade transactions.

This means less delays and lower

costs of trade that can ultimately lead

to improved competitiveness and more

trade.

UNNExT Brief series cover a range of

critical issues to be tackled in the successful

development of paperless trade and Single Window initiatives. Also, they showcase

best practices in the region to share experiences and lessons learned.

This Brief introduces Thailand’s National Single Window (NSW). The Brief

describes how the Thai NSW has evolved into the current model in the process

of its implementation, major functions and services it provides and the benefits

it brought to the Government and the trading community. The Brief also includes

lessons learnt in the process of establishing the Single Window environment in

Thailand.

Before 1998, cargo release and clearance procedures in Thailand was essentially based on paper documents, although a computer system was introduced for the purpose of capturing import and export data, trade statistics and for the operation of a management information system. An Electronic Data Interchange (EDI) system for customs clearance was officially implemented in April 1998 with nationwide operation achieved in 2000. The EDI system enabled electronic document exchange between customs administration and trading communities, including importers, exporters, customs brokers, freight forwarders, container yards, inland container depots, warehouses, export processing zones, banks, sea carriers, air carriers, land carriers, sea ports and airports.

Thailand adopted UN/EDIFACT and XML standards when implementing the EDI system for cargo release and clearance during the period of 1998 – 2006. Traders were allowed to lodge several sets of documents for single submission through the EDI system. However, at that stage, a trader still needed to submit a set of cargo declaration and supporting paper documents for cargo clearance, as required by relevant laws. A major transition from the EDI system to the e-Customs paperless service began in 2006. This included introduction of the ebXML standard, adoption of Public Key Infrastructure (PKI) and recognition of digital signatures, which together enabled the development of a paperless cargo clearance environment in Thailand. The e-Customs paperless service entered into full operation nationwide in July 2008.

Following establishment of the National Logistics Committee chaired by the Prime Minister, the first Logistics Development Strategy was drafted by the National Economics and Social Development Board (NESDB) and approved by the Cabinet in 2007. The main objectives of the Logistics Development Strategy are to increase cost efficiency, customer responsiveness and reliability, security in logistics services, and economic values in logistics and support industries.

Developing a National Single Window (NSW) for Import, Export and Logistics in Thailand

Introduction National policy to establish Thailand Single Windowe- Logistics

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It accordingly comprises the following 5 strategic agendas:

1. Logistics Improvement for all sectors, led by the Ministry of Industry and the Ministry of Agriculture;2. Transport and Logistics Network Optimization, led by the Ministry of Transport;3. Logistics Service Implementation, led by the Ministry of Commerce;4. Trade Facilitation Enhancement, led by the Ministry of Finance; and5. Capacity Building for the logistics sector, led by the Ministry of Education, the Ministry of Labor and the National Economic and Social Development Board.

The Thailand Single Window e-Logistics (National Single Window) was one of the core component Strategic Agenda (Trade Facilitation Enhancement) The EDI system for customs clearance, implemented in 1998, provided the basis for taking an initial step to establish an electronic single window for import and export. Figure 1 illustrates the evolution of Thailand single window implementation.

Figure 1: Evolution towards a National Single Window in Thailand

I

IsolatedOrganization

Face-to-FaceServices

II

CustomsEDI

Services(G2B, G2G)

UN/EDIFACTand XML

(Less paper)

III

IndependentSingle

ElectronicWindows

(G2B, G2G, B2B)

ebXML/XMLPKI/DigitalSignature

& otherstandards

2011-20152008-20102006-20081998-2006<----1997

V

Internationalconnectivities

(ASEAN SingleWindow

and otherinternational

data exchange)


& other

IV

NationalSingle

Window

(IntegratedSingle

Window)


& other

3

The establishment of THAINSW was initiated in accordance with the Association of Southeast Asian Nations (ASEAN), in particular commitments laid out in the “Agreement to establish and implement the ASEAN Single Window. According to this Agreement , 10 NSW systems of ASEAN Member States would be gradually integrated and operated in an electronic environment in line with the establishment of the ASEAN Economic Community (AEC) in 2015. In December 2005, the Government of Thailand appointed the Customs Department, Ministry of Finance to be the lead agency for establishing the National Single Window with other relevant agencies as partners.

The Thailand Logistics Committee established the National Sub-Committee on Integrated Information Linkage for Import, Export and Logistics, chaired by the Permanent Secretary of the Ministry of Finance. The National Sub-Committee consists of executives from relevant government authorities and business communities. The Thailand Single Window e-Logistics was renamed as the Thailand National Single Window by the National Sub-Committee in

One of the key components of the THAI-NSW introduced in 2007 is called the “e-Customs Paperless Service,” which enabled automated cargo release and clearance nationwide since 2008. The THAI-NSW began its official operation in July 2008, enabling the exchange of electronic documents among government authorities and business communities in paperless service environment. As of November 2011, THAI-NSW has about 8,000 subscribers, serving about 100,000 traders and 36 government authorities involved in import, export, logistics and supply chains. Government and business sectors have agreed upon the adoption of ebXML standard, public key infrastructure (PKI), and digital signature for secure electronic document exchange within the single window environment.

The National Logistics Committee endorsed the Regulatory Framework Model of the Thailand National Single Window in 2010, as illustrated in Figure 2.

Transition to the Thailand National Single Window (THAI-NSW)

Implementation of the THAI-NSW

Figure 2: Conceptual Model of Thailand National Single Window

January 2008 in order to enhance understanding of the single window development and facilitate integrated data linkage among government and business sectors as well as resource mobilization related to National Single Window and ASEAN Single Window implementation.

Regulatory Framework of Thailand National Single Window

National Single Window

Dat

a Li

nkag

e Co

mpl

ies

with

Inte

rnat

iona

l Sta

ndar

d

ICT

infr

astr

uctu

res

and

Lega

l Fra

mew

orks

ControllingAgency

Service Provider(VAN/VAS)

Sea and AirCarriers

Ser PortAir Port

Importer Exporter Broker /Forwarder

Bank Insurance LogisticsProvider

Others



BankNetworks

ControllingAgency

ControllingAgency

ControllingAgency

ControllingAgency

31 ControllingAgencies

Customs is a Lead Agency

Committee on Regulatory Framework & Quality Assurance of National Single Window Service

4

Figure 3: Operating Environment of Thailand National Single Window

Box 1. Legal Framework to Enhance Electronic Transaction

In Thailand, the Electronic Transactions Act (ETA) of 2001 has legally enabled the use and exchange of electronic documents in a paperless environment since it came into force in April 2002. Thailand has continued to develop and improve its legal framework for electronic transactions since then, with the second amendment to the ETA (in 2008) allowing for the acceptance of scanned documents as original. A third amendment to the ETA has been drafted by the Thailand Electronic Transactions Development Agency (ETDA) with a view to further facilitate international electronic transactions. Specific laws and regulations of relevant government agencies involved in the THAI-NSW are under revision so as to enhance information sharing in a paperless environment among them and the business sectors.

The major functions of the THAI-NSW are to:

• Serve as national router providing a standardized and regulated environment facilitating seamless and streamlined routing of data and information related to import, export and logistics services among government agencies and business communities.• Act as a functional integrator and host for shared applications, bringing regulatory and commercial functions, streamlining the processing of standardized and harmonized information flow related to cross-border trade transactions. This includes hosting of shared Single Window components such as a Permit Application System, Customs Declaration Application System, Payment Application System, Track and Trace System and other services.• Provide an electronic file repository for sharing references among relevant parties, such as implementation guidelines, laws, regulations, agreements, Memorandum of Understandings, training materials, reference files, national standard data set, international standard code lists, study reports, and others.• Be a national gateway and single point of access to interconnect with the ASEAN Single Window and other Single Window systems within and outside the ASEAN region.

Figure 3 illustrates the technical architecture of the THAI-NSW environment and inter-connectivity among relevant stakeholders through the THAI-NSW.

Key Functions of THAI-NSWThe THAI-NSW has been established in

accordance with international standards, best practices and recommendations of relevant international bodies such as World Customs Organization (WCO), United Nations Centre for Trade Facilitation and Electronic Business (UN/CEFACT), International Organization for Standardization (ISO), Organization for the Advancement of Structured Information Standards (OASIS), among others

Certi�cationAuthorities

Private Network

NSW (Primary & Secondary Sites)

InternationalGateway

Customs Department Board of Investment

Department of ForeignTrade

Department ofIndustrial Works

Food and DrugAdministration

Excise Department

Department ofLivestock Development

Department of MineralFuels

Department ofFisheries

National bureau ofAgricultural Commodity

and Food Standards

O�ce of the Cane andSugar Board

Department of LandTransport

Department ofAgriculture

Department of EnergyBusiness

Department of PrimaryIndustries and Mines

Thailand TransportPortal

O�ce of Atoms forPeace

Department ofCivil Aviation

Port Authorityof Thailand

Thai Chamber ofCommerce and Board of

Trade of ThailandDepartment of Internal

Trade

Royal ForestDepartment

O�ce of the RubberReplanting Aid Fund

Electrical andElectronics Institute

Department ofBusiness Development Fine Arts Department

National Broadcastingand Telecommunications

Commission

Department of MineralResource

Thai IndustrialStandards Institute

Department ProvincialAdministration

Airport of Thailand

Marine Department

Department of MedicalSciences

Department of nationalPark, Wildlife and Plant

Conservation

Industrial EstateAuthonty of Thailand

Defense IndustrialDepartment

Message ProcessOrchestration &Transformation

Business ActivityMontoring

NSW Portal

Web SelfRegistration

Webe-Form

Information ServicesNatinal Standard Data Set

Track andTrace

CommunityGateway and

PartnerManagement

Private Network

Private Network

Private Network

Overseas ServiceProviders

Banks andFinancial

Institutions

ServiceProviders

Secure Internet Connection

SecureI Governm

ent Information N

etwork

Private network

ServiceProviders

ServiceProviders

TradingTrading

TradingTrading

TradingCommunity

TradingTrading

Trading

TradingCommunity

ASEAN Member StatesVia ASEAN Single

Window (ASW)Gateway

Electronic Document Exchange Falcilitator forimport, export and logistics services

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Table 1: Major Documents Exchanged via THAI-NSW (as of July 2012)

The THAI-NSW enables secure electronic document exchange among government agencies and trading communities, serving about 660 customs stations nationwide including customs houses, container yards,

Major Services of THAI-NSWinland container depots, free zones, export processing zones, warehouses, seaports and airports since 2008. Table 1 lists key documents being exchanged among relevant parties through the THAI-NSW.

Investment and Service Fees In establishing the THAI-NSW System,

funded by the Government of Thailand, the Customs Department, Ministry of Finance, purchased a turnkey solution to develop and maintain the THAINSW system. The cost of the THAI-NSW’s developments (phase 1 & phase 2) was about US$ 14 millions, excluding expenditures individually incurred by relevant government agencies and trading communities. All government agencies and traders can participate in the Single Window environment free of charge.

Traders pay only a small fee for electronic document submission through the service provider (VAN/VAS). The minimum charge is 25 Thai Baht (approximately US$ 0.80) for less than 25 Kbytes of information. One Thai Baht is charged for each additional one

Benefits for Government and Trading CommunitiesGovernment agencies and trading

communities have gained significant benefits from participating in the THAI-NSW service since 2008, as illustrated in Tables 2 and 3. It is estimated that logistics cost savings from the implementation of the THAI-NSW may reach US$ 1.5 billions annually.

Export Information (Export Declaration and Invoice Information)

Import Customs Declaration

Export Customs Declaration

Short Ship Declaration

Release Order (Board of Investment)

Duty Payment

Duty Refund Declaration

Tax Incentive Declaration

Vessel Schedule

Flight Schedule

Sea Cargo Manifest Declaration

Air Cargo Manifest Declaration

Land Cargo Manifest Declaration

Container Operation Declaration

Express Goods Declaration

Cargo Movement Declaration

Cargo Release Notification

Payment Order

Guarantee Deposit Declaration

Formula Model Declaration

ASEAN Customs Declaration Document

Customs Clearance Result

Cancel Declaration

Import License

Inland Declaration

Special Import Declaration

Export License

Quota License

Import Certificate

Export Certificate

Certificate of Origin

ATIGA Form D

Transfer Declaration

Bonded Warehouse Declaration

Good Transit Declaration

RFID Declaration

Response Message

Debit Advice

Credit Advice

Guarantee Refund Declaration

Reassessment Notification

ATIGA Form D

Cancel Instruction

Kbyte. However, no matter what the size of document, the maximum charge may not be over 300 Thai Baht (approximately US$ 9.60). The service fees are reviewed by the Steering Committee on Regulatory Framework and Quality Assurance of Thailand National Single Window.

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Lesson Learnt in Establishing a Single Window Environment in Thailand

During the course of developing the THAI-NSW, a number of factors were critical that helped successfully establishing and operating it. To facilitate success in creating a National Single Window environment, the Thai Government has paid due consideration to the following critical success factors:

Table 2: Improvement of Cargo Clearance through THAI-NSW

Table 3: Improvement of Trade Efficiency through THAI-NSW

Customs Clearance Before 1998 1998 - 2007 2008 – 2011

Customs intervention 6-8 steps 2-4 steps0 step (green)

1 step (red)

Document requirement 5 copies 1-3 copies0 copy (green)

1 copy (red)

Intervention time 3-10 days ½ - 1 day0 hour (green)0.5-1 hour (red)

Turn around time (per declaration)

3-10 days 10- 30 minutes 95% < 5 minutes

Trading across border 2007 2008 2009 2010 2011

Export

No. of Documents to Export (number) 9 7 4 4 4

Time to Export (days) 24 17 14 14 14

Cost to Export (US$ per container) 848 615 625 625 625

Import

No. of Documents to Import (number) 12 9 3 3 3

Time to Import (days) 22 14 13 13 13

Cost to Import (US$ per container) 1042 786 795 795 795

(Source: Doing Business, World Bank).

1. A Strong Lead AgencyA lead agency should have a strong team with good knowledge about establishing the national single window environment including national policy, trade facilitation, international standards and best practices, resource mobilization, Information and Communication Technology (ICT), business operation, business process analysis and reforms and cross-border agency collaboration. A lead agency needs to know what to do, whom to deal with, where to implement and how to lead and move forward step by step from the initial stage until the final process. Engaging a consulting firm to assist in establishing single window environment is recommended if a lead agency lacks expertise and experience in any of the above-mentioned areas.

2. Partnership between Government and TradeEstablishing an electronic single window environment requires transition from the existing paper-based operation to the single window in paperless environment. To ensure the success of implementing a single window system, the lead agency needs to collaborate with relevant entities from both Government and business communities, particularly in terms of business process analysis and reforms, data harmonization and standardization in order to simplify and streamline relevant business processes end to end. Acceptance of new business processes and reforms in the electronic operation environment needs to be discussed and agreed among relevant Government and business sectors through coordination. It is further recommended to setting up an Inter-Agency Committee and conduct focus group workshops as often as necessary to reach a consensus on new business processes in the single window paperless environment.

3. Enhancement of National LegislationTo enable an electronic single window operation in a paperless environment, it is necessary to have laws and regulations that allow business sectors and relevant government agencies to

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As of 2011, some government agencies and business communities are on the way to improving their readiness to participate in the single window paperless environment. The THAI-NSW still needs to enhance its value-added service in accordance with the national policy and business requirement.

The following are key future development activities for further progress: • Improving the quality of National Standard Data Set for import, export and logistics; • Increasing participation in single window environment and expanding its paperless service nationwide; • Revising relevant laws and regulations for enabling the electronic single window in paperless environment; • Linking the THAI-NSW with the National Single Window Systems of other ASEAN Member States;• Enhancing cross-border data linkage with other single window systems beyond the ASEAN region; • Increasing the number of capacity building programs for government agencies and business communities; • Establishing National Trade Repository (NTR) of trade-related regulatory information and linking it with ASEAN Trade Repository (ATR);• Further simplifying and streamlining business processes on import, export, logistics and supply chains;• Reviewing the existing business model of the THAI-NSW and studying the next generation of its business model; and• Evaluating the success of the THAI-NSW implementation.

The Way Forward 2012 - 2015

More information about Thailand Single Window can be found at https://www.thainsw.net

submit and approve documents by electronic means. Furthermore, the specific laws and regulations related to import, export and logistics need to be reviewed and revised, if necessary, in order to enable one stop service and facilitate information sharing among relevant parties. National legislation for the security of data and information in the single window environment also needs to be ready before implementing the electronic single window environment.

4. Resources Mobilization to Establish a Single Window EnvironmentAllocating and balancing resources needed for single window implementation is also very important. In implementing a Single Window, it is necessary to reduce gaps in utilizing information technology, which can cause delay in the adoption of a paperless environment. In case there are discrepancies in technological readiness, phased implementation of a Single Window is recommended to ensure the success of the single window implementation and reduce the risk of failure. Establishment of the single window environment should start with a pilot project at the beginning, with gradual expansion of live operation and eventually nationwide implementation.

5. Data Harmonization and StandardizationThailand conducted harmonization of import and export data requirements in line with international standards, best practices and recommendations. At present, the THAI-NSW provides an online service on the National Standard Data Set, which includes alignment of data formats with WCO Data Set, UNTDED, UN/CEFACT Core Component Library (CCL) and ASEAN Data Set. This is for use by relevant government agencies and business sectors and to promote the utilization of international standards and best practice so as to facilitate interoperability in international trade transactions.

6.Awareness and Capacity Building for Government and TradeA study report of the Thai Customs shows that the number of users in the electronic single window environment kept increasing in line with the number of capacity building programs provided. Furthermore, human error and daily operational impediments in the electronic single window has significantly decreased after enhancing capacity building programs. In addition, the Thai Customs also conducts regular online surveys and evaluations to compile awareness requirements from relevant stakeholders, for future planning, development and enhancement of single window service.

The United Nations Network of Experts for Paperless Trade in Asia Pacific (UNNExT) provides a networking and knowledge-sharing platform for policy makers, practitioners and technical experts to bridge the implementation gaps between the countries with different level of trade facilitation. Its mission is to establish an ongoing community of knowledge and practice to facilitate the implementation of single window and paperless trade in the Asia-Pacific region. The UNNExT intends to enhance capacity of its members to make informed decisions about policy issues at stake and to implement related international instruments and standards. It is operated jointly by the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) and the United Nations Economic Commission for Europe (UNECE).

Visit UNNEXT at: www.unescap.org/unnext

This Brief was prepared by Mr. Sinmahat Kiatjanon, Director, Planning and Standard Division, Thai Customs Department, Thailand. For questions and comments on the specific details of the case, readers may write to [email protected], [email protected] . The Brief was reviewed and published by the Trade Facilitation Section of ESCAP on behalf of UNNExT and has been issued without formal editing.

We welcome your feedback as well as expressions of interest in our work on trade facilitation. For further information, please write to Director, Trade and Investment Division, ESCAPE-mail: [email protected]: http://www.unescap.org/unnext