“Single Window is defined as a facility that allows parties involved in trade and transport to lodge standardized information and documents with a single entry point to fulfil all import, export, and transit-related regulatory requirements”
UN/CEFACT RECOMMENDATION No. 33
Trade facilitation or in other words the simplification and harmonisation of international trade procedures appeared when freight flows increased and there was a need in impeded deliveries, advanced logistic chains, development of international trade, wider usage of container transport. Trade facilitation is recognized as an integral part of trade competitiveness and economic welfare. Steady increases in trade volumes and complexity have significantly changed the operating environment for the international trading community and for involved government agencies. This has laid bare the inefficiencies of outdated modes of operation and motivated an essential rethinking of border procedures both within national administrations and at the international level. Trade facilitation is desperately needed in the current situation which requires wide scope of information and documents envisaged by the legislation in import, export and transit. They are a burden for trade especially for Small and Medium Sized Enterprises (SMEs) which are the backbone of the economy in the developing countries. However, they are facing many constraints in engaging in international trade. To handle rising flows and to manage the risk of congestion along the transport chain and at the borders prompt and efficient measures of trade facilitation should be used.
Trade facilitation has moved to the centre stage in the context of Ukrainian integration into the European and world markets. The major objectives of trade facilitation are to improve procedures, to reduce red-tape, administration barriers and backgrounds for corruption practices. Successful implementation of trade facilitation may become the main factor for foreign investment and innovative technologies management, crucial for state development. Trade Facilitation Programme was introduced as one of the top-priority projects for state development.
Trade facilitation, harmonisation and automation of procedures and international and European introduction of data exchange standards are becoming increasingly popular and offer enormous benefits to trade. One of the best tools for trade facilitation is Single Window Concept. The single window is clearly a trade facilitative measure. It permits the trader or transporter to submit all the data needed for determining admissibility of the goods in a standardized format only once to the authorities involved in border controls and at a single portal. UN/CEFACT Recommendation 33 defines Single Window as follows: A single window is defined as a facility that allows parties involved in trade and transport to lodge standardized information and documents with a single entry point to fulfil all import, export, and transit related-related regulatory requirements. It eliminates the need for the trader or transporter to submit the same data to several different border authorities or agencies.
Intermodal transport and elimination of transborder bottlenecks: these are the main topics discussed during the Trade Facilitation Seminar (Single Window Concept and Integrated Railways Transportation to Facilitate Trade in the Pan-European Space) hold on 1 June 2011 as part of International Transport Week in Odessa.
United Nations Economic Commission for Europe (UNECE) under the auspices of PLASKE JSC and in assistance with Ministry of Economic Development and Trade of Ukraine and National Institute for Strategic Studies arranged this Seminar. It gathered experts from Germany, France, Switzerland, Lithuania, Moldova, Poland, Singapore, Czech Republic, Russia, and Ukraine.
The Seminar witnessed two discussion blocks:
— Trade facilitation measures; key issue – introduction of Single Window in Ukraine for traders and public authorities;
— Trade facilitation and attraction of new transit flows in North-South and Europe-Asia directions; key issue – prospects and future development of CIM/SMGS consignment note.
The unique Seminar is a platform to coordinate unification of legal regimes of rail transport (using CIM/SMGS consignment) as a Single Window Local Solution.
The key objectives of the Seminar were: to submit information on new concepts in trade facilitation, such as Single Window, both at local and national levels; to review the best practices of the Czech Republic, Lithuania, the Russian Federation, Moldova in the context of transit development and Single Window Concept application, in particular in Klaipeda port, Transsiberian line, during export, import and transit clearance procedures; to have an outlook at Ukrainian position as regards “local Single Window” introduction for export, import and transit clearance procedures; to have an outlook at introduction of the electronic CIM/SMGS consignment note.
The focal point of the Seminar was the information issue: its format, ways to handle it and goal destination. In this context the Single Window Concept was discussed as a type of information share.
Oleg Platonov, Chairman of SCSU Public Council, moderated the first session. In his welcome remarks he shared the statement on behalf of Vitaliy Khomutynnik, Chairman of Ukrainian Supreme Soviet on Finances, Bank Activities, Customs and Tax Policy.
The first session discussed the key options to implement Single Window. Mario Apostolov, UNECE Trade Regional Adviser, informed on the benefits of Single Window outlined in UN/CEFACT Recommendation 33 and Guidelines to Single Window 2005. The Recommendation gives an outlook on the trade facilitation tool which allows all participants in foreign trade to file all required information simultaneously, in one place, in standard form and to one agency. Traders and control agencies may be in different physical locations, but information flows among them are interconnected.
Mr. Apostolov highlighted that information within the Single Window facility may be both paper and electronic. Implementation of a Single Window does not necessarily imply the implementation and use of high-tech information and communication technology. The Single Window concept can be implemented in a manual environment with the co-operation of all border authorities. Statistics says paper can handle only 1% of information. He stressed that Single Window is a benefit both for state and for business. The state benefits: efficient distribution of resources; better collection of duties and fees; more compliance by business; more security (based on better risk analysis); less corruption. For business – more efficiency ; lower cost because of saving time for document preparation; faster release of goods; predictable and efficient description and implementation of rules; more transparency.
Practical guidelines, prospects and challenges of transport market development were discussed by the following speakers: Stanley Lim, Singapore Logistics Association Deputy Chairman (Single Window in Singapore); Algimantas Zigus, Head of Technical Division in Klaipeda Port (A Port Community Service: prerequisites and principles of functioning Klaipeda Port Community Service); Vladimir Utkin, Consultant in Customs Control Division, Moldova Customs Service (The Single Window-Local Solution in Moldova and information transit flows to Ukraine); Maria Naymanova, General Secretary, Chamber of Commerce and Industry, CR and Antonin Kerner, Director of Chamber of Commerce and Industry, CR (Introduction of E-Business in the Czech Republic.).
As regards to practical implementation of Single Window it’s worth to dwell on Singapore’s experience. Mr. Lim in his presentation stated that Singapore Single Window – TradeNet was incepted in 1989, and got rid of manual submission of declaration forms. There is only a single submission of trade information to multiple agencies through one single declaration electronically. The system connects all stake-holders involved in giving approval to the import and export declarations with a single form, single interface and single process.
Algimantas Zigus, Head of Technical Division in Klaipeda Port , gave an overview of Single Window introduction in Klaipeda port. In 2005-2008 they introduced KIPIS Project – this is an informational system for data share between port and state authorities. Business facilitation gave the introduction of e-documents, Single-Window concept, Green Corridor concept for EU goods and Permission by Default principle. The key success factors are: political will + initiative; comprehensive assessment of benefits; stake on managerial part of the project; public-private partnership; selection of the best undertaking to create and introduce the system; timely corrections to legal acts (within the project elaboration two necessary laws entered into force).
Vladimir Utkin, Consultant in Customs Control Division, Moldova Customs Service, mentioned that Single Window is one the main priorities for Customs Service. In 2007 it was included into Action Plan for Moldavian Customs. They developed and introduced FRONTIERA. This software linked all the control authorities in one entry point. It was a prototype of the Single Widow as it had many shortages. At the moment Moldova takes the following measures to implement Single Window Concept: improvement of administrative ordinances on customs control and other control authorities at the border; elaboration of single information system linking control authorities; improvement of entry points and inner customs terminals that handle customs clearance.
Vytenis Alisauskas and Valdas Dovydenas, Advisers on E-Customs in Ukraine and Republic of Belarus, ICITAP, U.S. Department of Justice (Lithuania) dwelled on Single Window introduction practices. They presented e-documents and declarations as the elements of intermodal transport using VIKING train.
The second block of the Seminar considered intermodal transport, PanEuropean legal treatments for railways and introduction of CIM/SMGS consignment. These issues were discussed by the following speakers: Azhar Jaimurzina, UNECE, Economic Affairs Officer (Pan-European legal regime for railways ), Eric Evtimov, CIT Legal Adviser, CIM/SMGS Project Manager (The electronic CIM/SMGS consignment note). The speakers highlighted that the implementation of these directions will provide the uniform competitive environment for each mode of transport and will encourage the competitiveness of rail mode.
Yelena Yemelianova, National Institute for Strategic Studies, informed the delegates on the evolution of transport market in Ukraine in the terms of integration. Ti use transit potential efficiently we need European standards facilitating border procedures for goods and vehicles. This requires the implementation of the following measures: cooperation in terms of advanced customs technologies; facilitation of Ukraine’s future participation in Working Groups (EU-EFTA, EU-ECFTA and EGG (Electronic Customs Group) — NCTS). To develop its transit potential Ukraine has to perform the following: implementation of comprehensive national strategy adopted in 2010; introduction of unified CIM/SMGS consignment (and e-consignment) developed by OSJD Committee and International Committee of Railway Transport; introduction of automated system for wheel handling; accelerated implementation of investment projects on creation of international logistics centers; better cooperation with Lithuania, Latvia, Belarus, Poland, Russia, Iran, Turkey, Azerbaijan, to increase transit flows using multimodal transport and VIKING and Yaroslav combined trains; development of Ukrainian ports and support of Ukrainian transport integration into the Transeuropean Transport Network (TEN-T); creation of Single Window for export, import and transit clearance and Single Investment Window.
Today Ukraine considers e-Customs as the key tool to facilitate international trade procedures. This system should be integrated with bank, national and international customs authorities. This will allow full implementation of Single Window and eDeclarations.
Sergey Kuts, Deputy Head of Southern Customs, State Customs Service of Ukraine, informed on the outcome of the first stage of eCustoms project in Ukraine. This project elaborated by State Customs Service of Ukraine provides declaring, customs control and clearance using eDeclaration and other e-documents. He mentioned that Ukraine sees the coordination of several issues at national level as the priority.
Concluding the Seminar, we have to outline the following statements:
— implementation of Single Window at the local level is quite possible;
—Single Window is an efficient tool to reveal the real situation in the legislation;
— an indisputable recipe for success apart from business initiatives is political will.
The Seminar’s outcome was embodied in the Recommendations reflecting the abovementioned statements. The document highlights strategic importance of eCustoms and VIKING container train both for Ukraine and international trade.
The delegates think that to reach the goals of eCustoms project it is necessary to implement eDeclaration pilot project and pilot Single Window simultaneously within the trade operations.
Single Window in the frameworks of VIKING trains project brings an obvious benefit for transport using CIM/SMGS consignment. Single Window within the air transport will give the push to activate the involvement of air transport into the common combined transport network.
The involvement of software for Single Window into the vocational training for declarants and customs brokers allows development of necessary skills and knowledge at the early stage.
27 June 2011 Ján Kubiš, UNECE Executive Secretary, highly appreciated the Seminar and expressed his gratitude to the Ukrainian state authorities. He also submitted the Recommendations elaborated during the Seminar to Ukrainian Prime Minister Mykola Azarov.
