UN/CEFACT Recommendation number 33 addresses this problem by recommending to governments and traders the establishment of a "Single Window", whereby trade-related information and/or documents need only be submitted once to a single entry point for all imports , export, and transit-related regulatory requirements. The recommendation was developed by the International Trade Procedures Working Group (ITPWG – TBG15) of the UN/CEFACT International Trade and Business Processes Group (TBG). A draft of the Recommendation (TRADE/CEFACT/2004/MISC.7) was previously presented to the 10th UN/CEFACT plenary session in May 2004.
Scope
These extensive requirements, together with their associated compliance costs, can pose a serious burden to both governments and business, and can also be a serious barrier to the development of international trade. The use of such a facility can result in improved efficiency and effectiveness of public control and can reduce costs for both governments and businesses due to better utilization of resources. The Single Window is therefore a practical application of trade facilitation concepts aimed at reducing non-tariff barriers to trade and can provide immediate benefits to all members of the trading community.
Benefits
This information and documentation often needs to be submitted through different agencies, each with their own specific (manual or automated) systems and paper forms. One approach to addressing this problem is the establishment of a single window, where trade-related information and/or documents only need to be submitted once to a single entry point. This can improve information availability and processing, speed up and simplify information flows between trade and government, and result in greater harmonization and exchange of the relevant data between government systems, delivering meaningful gains for all parties involved in cross-border trade.
Environment
In many countries, companies1 involved in international trade must regularly prepare and submit large volumes of information and documents to government authorities to comply with import, export and transit-related regulatory requirements. The most important prerequisites for the successful implementation of a Single Window facility are the political will of the government and the relevant government authorities and the full support and participation of the business community. The basic legal framework, including the establishment of privacy laws and rules that provide privacy and security in the exchange of information, will also need to be developed.
Use of International Standards
Recommendation
These guidelines, which are complementary to UN/CEFACT Recommendation No. 33 on the establishment of a single window, are designed to assist governments and trade in planning and establishing a single window facility for international import, export and transit-related regulatory requirements. They provide an overview of the main issues to be addressed, some of the tools available and the steps to be taken.
What is a Single Window?
What are the most common models for a Single Window?
For example, the United States has introduced a program that allows traders to submit standard data only once and the system processes and distributes the data to the agencies that have an interest in the transaction. In addition, fees, taxes and duties in the Singapore system are automatically calculated and deducted from the merchants' bank accounts. When establishing such a system, consideration may be given to the use of a master data set, consisting of specific identities, pre-identified and pre-validated for all relevant transactions3.
The appropriate agency that will lead the establishment and operation of the single window varies from country to country depending on legal, political and organizational issues4. In some cases, due to their central role, the information and documentation they receive, and their key position at the border, customs or port authorities may be the most appropriate agency to lead the development and implementation of the Single Window. They can also be "entry" points for receiving and coordinating the flow of information related to meeting all cross-border regulatory requirements.
However, the lead organization need not be a government organization; it can be a private entity such as a chamber of commerce or a semi-governmental organization such as a board of trade. However, private organizations sometimes lack the legal authority to issue and receive information and documents and the authority to enforce rules. One example of a public-private partnership that has led to the establishment of a one-stop shop is Mauritius Network Services Ltd in Mauritius.
Of the twelve Single Windows assessed in the development of these Guidelines, the majority were led by Customs.
What are the benefits of establishing a Single Window?
Therefore, in such a scenario, it may be necessary for the private organization to seek the explicit formal support of a government organization that has such power at its disposal. This is a tripartite joint venture company involving public and private sector representatives and a foreign technical partner (see Annex A for further details). Risk management techniques for control and enforcement purposes can also be improved through a Single Window system that collects all data in a systematic manner, resulting in safer and more efficient trading procedures.
Furthermore, implementing a payment system within a Single Window ensures fast and accurate payment to government agencies and agencies for required tasks and other charges. A Single Window that provides up-to-date information on tariffs and other legal and procedural requirements will reduce unintentional errors and increase merchant compliance. Furthermore, collecting and coordinating the required information and trade documentation, through a single window, will reduce the use of both human and financial resources, allowing governments to reallocate resources previously used for administrative tasks to areas of greater importance and importance.
The main benefit for the trading community is that a single window can provide the trader with a single point for the one-time submission of all required information and documentation to all government agencies involved in export, import or transit procedures. As the Single Window enables governments to process submitted information, documents and fees faster and more accurately, traders should benefit from faster clearance and release times, enabling them to speed up the supply chain. In addition, the improved transparency and increased predictability can further reduce the potential for corrupt behavior from both the public and private sectors.
Acting as a central point of access to up-to-date information on applicable trade rules, regulations and compliance requirements, the Single Window will reduce the administrative costs of trade transactions and encourage greater merchant compliance.
Services provided by a Single Window
The One Window is based on cooperation with other law enforcement agencies, which in 1994 led to the establishment of the so-called "Cargo Clearance Point" (CCP). Other law enforcement agencies include the Marechaussee (immigration), the Inspectorate of Health, various divisions of the General Inspectorate for Transport, Municipalities and Water Management, the Inspectorate of Health and Veterinary Public Health, the National Inspections for Livestock and Meat, and the Plant Protection Service. In order to provide other law enforcement agencies with the relevant information they need to carry out their duties, these authorities provide Customs with risk profiles, on the basis of which Customs analyzes the information and transmits it electronically or in paper form to another agency.
United States: The Single Window system developed and implemented in the United States is known as the International Trade Data System (ITDS). The ITDS vision is to use a secure, integrated government-wide system to meet private sector and federal requirements for the electronic collection, use and distribution of standard trade and transportation data. ITDS has identified the following major stakeholder groups: Participating Government Agencies (PGAs), the trade, supervisory bodies and CBP.
Participating Government Agencies (PGAs) have international trade missions including (a) control over the acceptance or export of cargo, crew and conveyances, (b) regulating compliance with federal trade laws such as tariffs and quotas, licenses and operating authorities, c) promotion of international trade through activities such as export assistance, and (d) collection and reporting of statistical information on international trade and transport. Border Operations Agencies – have responsibility for import, export and transit trade processes related to cargo, transport and/or crew. License and Permit Agencies – use ACE as the primary tool for recording and maintaining license and permit information.
Statistical agencies – use ACE to extract trade or transport data, usually not at the transaction level, to support their own statistical analysis needs.
Practical steps in planning and implementing a Single Window
Standards and tools available to assist in implementing a Single Window
Key factors in establishing a successful Single Window
Help desk and user support services, including training, should be established, especially in the early implementation phase of the project. The implementation of a single window usually involves the harmonization and alignment of the relevant trade documents and data sets. UN/CEFACT Trade Facilitation Recommendations (such as UN/CEFACT Recommendations No. 1 and 18) contain valuable information for single-window implementation of the system.
The Netherlands: One window at Schiphol Airport enables the electronic submission of cargo manifests by airlines to customs. United States: The initial concept of the International Trade Data System (ITDS) was the result of a special task force, the Future Automated Commercial Environment Team (FACET). The managers of the single window should emphasize the importance of the role of the agency in the whole process of international trade.
Some of the key areas that should be covered in the feasibility study are presented in Annex C. Review and document existing staff resources within the relevant government authorities and agencies for the project development, implementation and operation, and consider training, additional staff and management requirements related to the implementation of the Single Window. Investigate the potential impact of the project on existing systems, procedures, employment, job descriptions, etc;.
Consider potential social and cultural issues that may arise from the establishment of the common window. Consider the possible impact of the single window on reducing corruption and the impact this could have. Explore the potential for a public-private partnership approach to the implementation of the project, including revenue streams.
