Project/Service

A. General Information

1. Title

Electronic exchange of Certificates of Origin –Korea and Chinese Taipei

2. Status of the project/service
Operating
3. Implementation period of the project/service:
From
2009
To
Present
5. Geographical coverage
Bilateral: Korea and Chinese Taipei
6. Participating agencies/entities of the project/service:
a. Development stage
Lead agencies/entities
Korean Chamber of Commerce International Customs
Other participating agencies/entities
National Treasury agency from Chinese Taipei
b. Operational stage
Lead agencies/entities (op)
Korea Trade Net (from Korea), Trade Van (from Chinese Taipei)
Other participating agencies/entities (op)
--
7. Main stakeholders/beneficiaries of the project/services
Traders (big enterprises)
Traders (SMEs)
Customs brokers
Customs
8. Business process category of the project/service
Regulatory/official control

B. Lessons Learned

9. Summary description of the project/service
a. Objective(s)

The ECO cross-border exchange project that Chinese Taipei and Korea launched together in 2004 was the pilot project for paperless trading. It was also a public-private collaborative effort for both sides. On Nov. 21st, 2008 the Memorandum of Understanding was signed. Later on, Chinese Taipei’s customs authority announced that from Aug. 26th 2009, its system was capable of receiving, processing and exchanging ECOs across borders, and that during the initial stage it would accept ECOs for imports from Korea.

The objectives of the project were the following;

To facilitate cross border electronic transaction

To streamline customs clearance process

To help traders with ease of use e-trade application for cross border trade

To increase business opportunities

b. Business need for the project/service (background)

To introduce less costly, more efficient trade mechanisms between Korea and Taipei

c. Business process covered*

The process is as follows;

The exporter from the Republic of Korea uses the uTradeHub (uTH) of KTNET, the web-based Republic of Korea Single Window for paperless trade, to complete the CO application form, and sends it KCCI;

 KTNET sends the application to KCCI;

Once the application is received, staff at the Chamber of Commerce and Industry accesses the customs system to view the customs clearance records and clearance reference number.

KCCI, as the CO issuing/verifying authority, approves the e-CO application using its own legacy system and sends a confirmation to the exporter through KTNET;

 The exporter can access the e-CO database at uTH with inquiries according to the e-CO code issued and can download the e-CO message to the legacy system.

In Taiwan Province of China: (a) The e-CO system of Trade-Van sends the importer an e-mail notification that the e-CO has been received from the exporter;

The importer reviews the e-CO via the e-CO system of Trade-Van;

The importer assigns a customs broker to arrange the import declaration and provides the broker with the shipping documents;

 The customs broker reviews the shipping documents and e-CO, and then creates an EDI import declaration;

The customs broker submits the EDI import declaration to customs through Trade-Van’s network, quoting the relevant electronic e-CO reference number. The TradeVan system automatically sends the e-CO together with the import declaration to customs;

The customs officials review the declaration and clear the goods for import.

d. Overall architecture and functionalities*

https://unnext.unescap.org/sites/default/files/swiran-s5koh.pdf

e. Relevant document/figure
10. Documents and data exchanged via the project/service

Electronic exchange of certificates of origin

11. Data models/databases, proprietary solutions, hybrid approaches
--
12. Main challenges faced during the project/service

Cooperation between public and private sectors

Capacity gaps among the parties

Harmonization of different legal framework

Lack of coordination mechanism

13. Lessons learned from the project/service

Readiness of domestic eCo application system

Readiness of digital signature law and PKI technology for secure data transmission

Domestic government’s acceptance  of digitally  signed  electronic documents

14. Main benefit(s) of the project/service
Enhanced regulatory compliance*
Transaction Cost savings*
Transaction Time savings
Simplified process
14A. Elaborations/detailed description on benefits gained:

Guarantee the authenticity of the cross border documents

Reduce percentage of fake CO

Reduce effort in paper CO verification

Speed up customs clearance process

 Better service to international traders

 Transmit cross border documents in a secure online environment

15. Technical/financial/capacity building/other assistance

Singapore contributed in this project by creating the UBL ECO Standard.

Private sector companies were involved from both sides.

16. Future plan for expansion of the project and service

Korea and Chinese Taipei are in discussion to expand the service to e-INV, e-PL and e-SPS .

In discussion with other countries such as Philippines and Thailand to exchange ECO.

17. Other information or relevant references on the project and service
--
18. Relevant document regarding the project/service
--

C. Relevant Standards

20. Electronic message standard
20A. Electronic message standard supporting the project/service:
XML:
- EPC Global
- Other XML format: ebXML MS v2.0
20B. Type of standard for electronic message applied for the project/service
International standard
21. Technical communication standard
21A. Technical communication standard supporting the project/service
N/A
21B. Type of technical communication standard applied for the project/service
--
22. Security-related standards*
22A. Security-related standard supporting the project/service
Digital signatures
22B. Type of security-related standard applied for the project/service
--
23. Other Technical Information
23A. Interface developed for data exchange with an internal system
--
23B. Other technical implementation information
--