The need for information regulating the flow of goods greatly increased with the expansion of Global trade in the decade of 1980, and 1990s. in the meanwhile amazing developments in information and communications technologies (ICT) and trade data-exchange standards evolved. Whereas, the exchange of trade related documents remained paper-based.
However, in the modern trade environment such paper-based exchanges cannot satisfy the need for efficiency and security. One globally tried and tested method of addressing this problem that has been recommended by UNECE is "Single Window".
Single Window is a "facility that allows parties involved in trade and transport of lodge standardised trade-related information and/ or documents to be submitted once at a single entry point to fulfil all import, export, and transit-related regulatory requirements".
However, Single Window implementation on a countrywide scale is an extremely complex and costly undertaking. Creating a national Single Window requires tremendous efforts, cost, changes of mindset and more importantly, strong political will. Many national Single Windows were introduced in a phased approach, with each stage covering a selected group of OGAs (Other Government Agencies). According to the World Bank's Trading Across Borders 2012 report, out of 150 economies surveyed, 49 have introduced a Single Window, of which only 20 have a Single Window system that links all relevant government agencies. The remaining 29 have a Single Window that hasn't yet linked the government agencies. Many developed countries don't have a national Single Window or have only recently started to work on Single Window implementation. Most countries of the European Union, for example, have national Single Window. On the other hand, many countries in Africa, Asia and Latin America have started or completed national Single Windows.
The pre-Single Window evolution of ICT can be said to start from the early days of Customs automation in the 1960s and 1970s, when the Customs authorities first begin to automate their functions using systems such as ASYCUDA (Automated System of Customs Data) provided by the United Nations Conference on Trade and Development (UNCTAD). Today, according to the World Bank's Trading Across Borders 2012 report 5,82 per cent of economies around the world allow traders to submit at least some of their export and import declarations, manifests and other trade-related documents to Customs authorities electronically. However, many of these systems are not linked to the Internet, and others still require hard copies.
To circumvent the challenge of involving other government agencies (OGAs), a variation of the limited "Single Window" has emerged: the Customs single Window. This essentially provides a single interface between the trading community and the Customs Authority. Such instances of a "Single Window for Customs Clearance" don't fully cover the permits and licensing of all of the OGAs and therefore don't cover all the regulatory processes.
ASEAN is moving towards "National Single Window" and they have defined NSW as a system which enables:
-- A single submission of data and information;
-- A single and synchronous processing of data and information;
-- A single decision-making for customs release and clearance;
A single decision-making shall be uniformly interpreted as a single point of decision for the release of cargoes by the Customs on the basis of decisions, if there are significant challenges and issued to the success of the extended Single Window. First, the business world is still very much paper-based, especially for cross-border transactions. Many banks and even government regulatory authorities still require paper-based documents for verification. Although the landscape is slowly transitioning to a paperless environment, it will still take some years to come. Secondly, unlike B2G / G2G services, where government mandate can guarantee the compulsory usage of the Single Window.
The ASEAN Single Window initiative, which calls for the integration of the National Single Window of the 10 ASEAN member economies, gives a great impetus to these countries to build their Single Windows. Hence, in recent years, there has been a marked increase in Single Window development in the region. The four ASEAN countries (Indonesia, Thailand, Brunei, and the Philippines) called essentially for Single Window requirements to be integrated with the existing Customs system.
Although not seen in the ASEAN countries, there is an increasing trend for countries to include a centralised risk management in their Single Window projects. New Zealand's Trade Single Window is part of a broader Joint Border Management System that includes requirements for an integrated intelligence and risk management that supports the Customs' as well as other agencies' risk management needs. Likewise, Pakistan's initiative, PACCS / WeBOC has also included a Risk Management System.
To develop a Single Window is typically a massive undertaking involving interlinking and information-sharing by Customs and all government agencies responsible for trade, and also the trading community. It requires new ways of processing trade and necessitates streamlined business processes. Due to the complex change management, Single Window development typically follows a gradual evolutionary and staged pathway, usually starting from an advanced Customs solution, and progressing to encompass advanced national and regional trade-facilitation objectives. Taking into account the empirical analysis of Single Window development, it is suggested that national government, provincial and local organisations - as well as key stakeholders from the community - collaborate on key initiatives to support and devise the future development of a nationally networked Single Window. The key initiatives should focus on the following:
Creating a common, national framework for Single Window planning and development that encompasses and interconnects different forms of local ICT based softwares and data base.
-- Prioritising Customs Single Window development.
Developing at the National level a vision for how to achieve electronic information exchange in national supply chains using the capabilities of Customs Single Window implementations in the country.
Ensuring that policymakers take into consideration the potential of Single Windows when developing ICT usage the public sector.
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