Paperless trade

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Paperless trade refers to "trade taking place on the basis of electronic communications, including exchange of trade-related data and documents in electronic form" [1] in the Framework Agreement on Facilitation of Cross-border Paperless Trade in Asia and the Pacific, adopted at United Nations Economic and Social Commission for Asia and the Pacific in May 2016.

The enormous costs arising from the exchange of billions of trade-related documents, as well as the complexity of international trade documents and procedures, are a huge burden on businesses, and a major disincentive to many small firms for participating in international trade. [2] Switching from paper documents would increase security and transparency in supply chains and provide governments and the private sector with higher revenues. [3] Paperless trade aims to making cross-border business transactions more convenient and transparent while ensuring regulatory compliance. [4]

In the report of "Paperless Trade in International Supply Chains: Enhancing Efficiency and Security", paperless trade is discussed from the perspectives of countries and private enterprises. It points out that the advance exchange of information and the automated analysis of trade data enable governments and enterprises to react faster on events and take appropriate measures to reduce costs and risks. [5]

Paperless trade facilitation measures

The implementation of paperless trade has increased significantly in the region of Asia and the Pacific. In contrast with Trade Facilitation measures, most paperless trade and, in particular, cross-border paperless trade measures, are not specifically featured in the WTO TFA, but drafted in the bilateral trade agreements. In 2015, the UN ESCAP collected and listed paperless trade and cross-border paperless trade measures as follows: [6]

Depending on how specific they are and the structure of each agreement, these measures may be found in e-commerce, customs or trade facilitation chapters. [8] For example, in the Trans-Pacific Partnership Agreement, access to and use of the Internet for Electronic Commerce could be found in the chapter of E-commerce, which requires parties to "recognise the benefits of consumers in their territories having the ability to:

(a) access and use services and applications of a consumer's choice available on the Internet, subject to reasonable network management;

(b) connect the end-user devices of a consumer's choice to the Internet, provided that such devices do not harm the network;

(c) access information on the network management practices of a consumer's Internet access service supplier." [9]

Related Research Articles

E-commerce is the activity of electronically buying or selling of products on online services or over the Internet. E-commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems. E-commerce is in turn driven by the technological advances of the semiconductor industry, and is the largest sector of the electronics industry.

Commerce is the large-scale organized system of activities, functions, procedures and institutions that directly or indirectly contribute to the smooth, unhindered distribution and transfer of goods and services on a substantial scale and at the right time, place, quantity, quality and price through various channels from the original producers to the final consumers within local, regional, national or international economies. The diversity in the distribution of natural resources, differences of human needs and wants, and division of labour along with comparative advantage are the principal factors that give rise to commercial exchanges.

<span class="mw-page-title-main">Customs</span> Government agency which regulates the flow of goods and collects duties

Customs is an authority or agency in a country responsible for collecting tariffs and for controlling the flow of goods, including animals, transports, personal effects, and hazardous items, into and out of a country. Traditionally, customs has been considered as the fiscal subject that charges customs duties and other taxes on import and export. In recent decades, the views on the functions of customs have considerably expanded and now covers three basic issues: taxation, security, and trade facilitation.

UN/CEFACT is the United Nations Centre for Trade Facilitation and Electronic Business. It was established as an intergovernmental body of the United Nations Economic Commission for Europe (UNECE) in 1996 and evolved from UNECE's long tradition of work in trade facilitation which began in 1957.

<span class="mw-page-title-main">International Chamber of Commerce</span> Business organization

The International Chamber of Commerce is the largest, most representative business organization in the world. Its over 45 million members in over 100 countries have interests spanning every sector of private enterprise.

<span class="mw-page-title-main">ASEAN Free Trade Area</span> Free trade area of the Association of South East Asian Nations

The ASEAN Free Trade Area (AFTA) is a trade bloc agreement by the Association of Southeast Asian Nations supporting local trade and manufacturing in all ASEAN countries, and facilitating economic integration with regional and international allies. It stands as one of the largest and most important free trade areas (FTA) in the world, and together with its network of dialogue partners, drove some of the world's largest multilateral forums and blocs, including Asia-Pacific Economic Cooperation, East Asia Summit and Regional Comprehensive Economic Partnership.

<span class="mw-page-title-main">Index of international trade articles</span>

This is a list of international trade topics.

<span class="mw-page-title-main">Non-tariff barriers to trade</span> Type of trade barriers

Non-tariff barriers to trade are trade barriers that restrict imports or exports of goods or services through mechanisms other than the simple imposition of tariffs. Such barriers are subject to controversy and debate, as they may comply with international rules on trade yet serve protectionist purposes.

<span class="mw-page-title-main">Customs and Excise Department (Hong Kong)</span> Department of the Hong Kong Government

The Customs and Excise Department (C&ED) is a government agency responsible for the protection of the Hong Kong Special Administrative Region against smuggling; the protection and collection of revenue on dutiable goods on behalf of the Hong Kong Government; the detection and deterrence of drug trafficking and abuse of controlled drugs; the protection of intellectual property rights; the protection of consumer interests; and the protection and facilitation of legitimate trade and upholding Hong Kong's trading integrity.

<span class="mw-page-title-main">Market access</span> Ability to sell goods and services across borders

In international trade, market access refers to a company's ability to enter a foreign market by selling its goods and services in another country. Market access is not the same as free trade, because market access is normally subject to conditions or requirements, whereas under ideal free trade conditions goods and services can circulate across borders without any barriers to trade. Expanding market access is therefore often a more achievable goal of trade negotiations than achieving free trade.

Supply chain security activities aim to enhance the security of the supply chain or value chain, the transport and logistics systems for the world's cargo and to "facilitate legitimate trade". Their objective is to combine traditional practices of supply-chain management with the security requirements driven by threats such as terrorism, piracy, and theft. A healthy and robust supply chain absent from security threats requires safeguarding against disturbances at all levels such as facilities, information flow, transportation of goods, and so on. A secure supply chain is critical for organizational performance.

The Customs-Trade Partnership Against Terrorism (C-TPAT) is a voluntary supply-chain security program led by U.S. Customs and Border Protection (CBP) focused on improving the security of private companies' supply chains with respect to terrorism. The program was launched in November 2001 with seven initial participants, all large U.S. companies. As of December 1, 2014, the program had 10,854 members. The 4,315 importers in the program account for approximately 54% of the value of all merchandise imported into the U.S.

<span class="mw-page-title-main">Trade facilitation</span> Policies intended to encourage trade between nations

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. Business costs may be a direct function of collecting information and submitting declarations or an indirect consequence of border checks in the form of delays and associated time penalties, forgone business opportunities and reduced competitiveness.

The single-window system or single-window concept is a trade facilitation concept which allows an international (cross-border) trader to submit information to a single agency, rather than having to deal with multiple agencies in multiple locations to obtain the necessary papers, permits, and clearances to complete their import or export processes. There is an obvious time saving benefit to the single window system. The concept is recognised by organisations such as the United Nations Economic Commission for Europe (UNECE) and its Centre for Trade Facilitation and Electronic Business (UN/CEFACT), World Customs Organization (WCO), the United Nations Network of Experts for Paperless Trade and Transport in Asia and the Pacific (UNNExT), and the Association of Southeast Asian Nations (ASEAN).

<span class="mw-page-title-main">Import</span> Good brought into a jurisdiction

An import is the receiving country in an export from the sending country. Importation and exportation are the defining financial transactions of international trade.

<span class="mw-page-title-main">Certificate of origin</span> International trade document

A Certificate of Origin or Declaration of Origin is a document widely used in international trade transactions which attests that the product listed therein has met certain criteria to be considered as originating in a particular country. A certificate of origin / declaration of origin is generally prepared and completed by the exporter or the manufacturer, and may be subject to official certification by an authorized third party. It is often submitted to a customs authority of the importing country to justify the product's eligibility for entry and/or its entitlement to preferential treatment. Guidelines for issuance of Certificates of Origin by chambers of commerce globally are issued by the International Chamber of Commerce.

<span class="mw-page-title-main">Rules of origin</span> Rules to attribute a country of origin to a product

Rules of origin are the rules to attribute a country of origin to a product in order to determine its "economic nationality". The need to establish rules of origin stems from the fact that the implementation of trade policy measures, such as tariffs, quotas, trade remedies, in various cases, depends on the country of origin of the product at hand.

Success in export markets for developed and developing country firms is increasingly affected by the ability of countries to support an environment which promotes efficient and low cost trade services and logistics.Ttrade facilitation and economic development policies reflect the idea that trade can be a powerful engine for accelerating economic growth, job creation, and poverty reduction.

Pakistan's e-trading mainly involves buying and selling goods, and services using internet or telephone, through the use of electronic means such as computer, fax machine, cellular phone, automated teller machines (ATMs), and other electronic appliances with or without using the internet. Online banking, e-tickets, share trading in stock exchange are few examples of e-commerce of modern advancement. With its potential, e-trading can reduce the cost per transaction, increase efficiency, support contest, lower prices and boost international demand. It can open new areas for business in the service sector like online education, medical services, consultancy, and data exchange. It can also provide expansion in trade through domestic and international market research, advertising and marketing. In the financial services area, it can make easy and speedy transactions and transfer of money at a minimum risk. The interesting feature of online trading is that an investor simply sitting in his office or home can buy or sell through the Internet via mobile/tablet or PC and before being an experienced trader he may learn a lot by watching market screens or web portals at his convenience.

The United Nations Network of Experts for Paperless Trade and Transport in Asia and the Pacific (UNNExT) is a community of trade facilitation specialists and practitioners focusing on simplifying import, export and transit procedures by enabling traders and governments to exchange information electronically and through automated and integrated systems, including national and regional Single window. The Network has made significant contributions to the development of Trade facilitation and Paperless trade in the region.

References

  1. ↑ "Framework Agreement on Facilitation of Cross-border Paperless Trade in Asia and the Pacific".
  2. ↑ ""Paperless trade: Benefits to APEC", 2001" (PDF). Retrieved 2016-03-18.
  3. ↑ "A Roadmap towards Paperless Trade" . Retrieved 2016-03-18.
  4. ↑ "The Progress of Paperless Trade in Asia and the Pacific: Enabling International Supply Chain Integration" (PDF).
  5. ↑ "Paperless Trade in International Supply Chains: Enhancing Efficiency and Security" . Retrieved 2016-03-18.
  6. ↑ "Trade Facilitation Implementation in Asia-Pacific 2015: Moving Towards Paperless Trade" . Retrieved 2016-03-18.
  7. ↑ "Towards National Single Window for Trade *Facilitation: UNNExT Single Window Implementation Toolkit" . Retrieved 2017-04-11.
  8. ↑ "Trade Facilitation in Regional Trade Agreements: Recent Trends in Asia and the Pacific" . Retrieved 2016-03-18.
  9. ↑ "The Trans-Pacific Partnership Agreement" . Retrieved 2017-04-11.
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