Business (trade) Process Analysis for Trade Facilitation

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Nov 5, 2013 (4 years and 2 days ago)

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Business (trade) Process Analysis

for Trade Facilitation




Outline


1.
What is Business Process Analysis and Why it
is Required?


2.
Examples of output from BPA Studies in WP3

2

What is a Business (trade) Process and it’s Analysis?


A Business Process
is a collection of


related and structured activities or tasks


that produce a specific service or product.



Example

-
Obtaining a
fumigation certificate

for rice export

-
Applying and Issuing Process
for a Certificate

of
Origin

-
Customs Clearance Process
at the Border Point



3

What is..


..a Business Process Analysis?



An analysis and modelling of business processes

for improvement, simplification and automation



Example

-
Documenting existing practice in an
administration/company

-
Describing a “Standard Procedure”

-
Identifying quantitative indicators (time, cost, docs)

-
Recommending ‘to
-
be’ situation or TF measures

4

Supply Chain Complexity

Source : Complex Networked Supply Chain [Harwick, 1999


Trade Movement


3 Kinds of Flow

Seller

(Exporter)

Buyer

(Importer)

Physical Goods

Payment

Customs

Other
-
Government
-
Agencies

Ship Agent

Transport
-
Operators

Terminal
-
Operator

Carriers

Banks

Information/Documents

Freight Forwarders

Cargo Insurance

Farmers

Post
-
Harvesters

Traders

Exporters

Importers

Traders

Wholesalers

Consumers


Why conduct a Business Process Analysis?

7

Business Process Analysis is a practical study


to
understand

attributes of
business processes
,

and
their relationships







Who

involved

Procedures

and Documents

required

Related Rules

and Regulations

Some

quantitative

indicators

What are benefits of Business Process Analysis?

8

1.1 Sales contract

2.1) Make advance

payment

3.1)
Obtain Export License

3.7) Deliver to port of departure


for Customs examination

3.8) Examine commodity

Exporter (or

representative)

Importer

Exporter

s

bank

Importer

s

bank

ICD

SAD

Directorate of
Trade, MOC

Customs broker

3) Ship

3.11) Deliver shipping

documents to buyer

1) Buy

2) Pay

Use Case Diagram of Rice Export from Myanmar

Customs

department

Port

3
rd

party

inspector

Shipping line

3.10 ) Prepare required

shipping documents for buyer

3.4)
Declare CusDec 2

3.2) Arrange overseas shipping

3.3) Arrange pre
-
inspection

and fumigation

3.9) Handle and load

the goods onto the vessel

3.6) Stuff containers

at warehouse

3.5)
Collect empty container

from ICD and deliver it to warehouse

Bank

Transporter

Courrier

FDA

Customs department

at the port

Exporter (or representative)

3.8.1Request

for examination

3.8) Examine


commodity

Exporter (or

representative)

3
rd

party
inspector

3.8.8 Allow shipment

Found

incorrect

3
rd

party inspector

Port terminal

3.8 ) Examine commodity

Found correct

3.8.3 Register case file

3.8.5 Order to the port

Customs examination team

3.8.2 Receive request


3.8.4 Reviews

case file

3.8.7 Fumigate the

containers after


Customs examination

3.8.1 Request

for fumigation

3.8.2 Receive the

request for fumigation

Port terminal

3.8.2 Receive port

challen, SI, and

103 challen

3.8.1 Request

for delivery

Transporter

3.8.2 Receive request to

send the loaded Container


to Customs yard

3.8.3 Check the

container against

103 challen

3.8.1 Submit 103 slip,

shipping instructions,

& Port Challen

Shipping Agency

Department (SAD)


3.8.9 Allow

to load cargo

3.8.6 Check with


loading list and

prepare mate receipt

3.8.6 Examine

the goods

Port Customs

SAD

Transporter

Time
-
procedure Chart for Importing Animal Feed to Lao
PDR

1. Check demand of import for animal feed by Livestock and
Fishery Division, Customs and Trade Division

2

2. Certify of farm

s animal feed demand for importing

5

3. Declare of import documents to custom office at the border
point for approval

3

4. Pay import tax, fee and custom to treasury office

2

5. Inspect of import goods by custom inspector at the checked
point

1

6. Inspect of import goods by Agriculture Quarantine officers at
the checked point

1

7. Trucks transport all goods to destination places

1

8. Pay to the export representative

2

TOTAL

17

Documents Required for Jute Bag Exports to India from
Bangladesh

Sl.

Procedures

Docs
Reqd.

Details Documents List

1

Receive order from the buyer, set
the trade terms and finalize sales
contract

6

Proforma Invoice,

Commercial Invoice, Export License,
Offer Letter, Sales Contract, Copy of TT

2

Contract inland transport agency

1

Transport Invoice

3

Prepare export documents

10

Proforma Invoice,

Commercial Invoice, Certificate of
Origin, SAPTA Certificate, Phytosanitary Certificate,
Packing List, Export License, Sales Contract. Transport
Invoice, Copy of TT

4

Transport to port of departure

Nil

None

5

Obtain customs declaration from
the customs authority at the land
port (mainly by the C&F agent)

14

Proforma Invoice
,
Commercial Invoice, Certificate of
Origin
,
SAPTA Certificate, Phytosanitary Certificate,
Packing List, Export License, Sales Contract. Transport
Invoice, Copy of TT
, Export Form, VAT and Source Tax
Chalan, Bill of Entry

6

Customs inspection and clearance

16

Proforma Invoice, Commercial Invoice, Certificate of
Origin, SAPTA Certificate, Phytosanitary Certificate,
Packing List, Export License, Sales Contract, Transport
Invoice, Copy of TT
. “C” Form, Out Pass

7

Border checkpoints

16

Proforma Invoice, Commercial Invoice, Certificate of
Origin, SAPTA Certificate, Phytosanitary Certificate,
Packing List, Export License, Sales Contract. Transport
Invoice, Copy of TT
, “C” Form, Out Pass

Economic impact of bottlenecks in business processes of
cross border trade


Each additional day of delay
(e.g. because of
trade logistics procedures)
reduces trade

by at least 1%


Source: Simeon Djankov, Caroline Freund, and Cong S.
Pham. (2007).
Trading on Time
. Washington, D.C.: World
Bank.




Direct

and
Indirect Cost from import/export
-
related procedures

and
required documents
is
about
1
-
15% of product cost
.”


Source: OECD. (2003).
Quantitative Assessment of the
Benefits of Trade Facilitation
. Paris: OECD Publications

13