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* Atleast Project Title is Required.
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Project No. |
SCCP_203_2023A
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Project Title |
Improving the digitalization of international trade: the relevance of the use of an electronic Bill of Lading
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Project Status |
Project in Implementation
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Publication (if any) |
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Fund Account |
APEC Support Fund
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Sub-fund |
ASF: APEC Supply Chain Connectivity
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Project Year |
2023
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Project Session |
Session 2
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APEC Funding |
110,000
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Co-funding Amount |
0
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Total Project Value |
110,000
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Sponsoring Forum |
Sub-Committee on Customs Procedures (SCCP)
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Topics |
Customs; Digital Economy; Trade Facilitation; Business; Micro, Small and Medium Enterprises; Environment; Human Resources Development; Market Access; Conformance; Standards; Liberalisation
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Committee |
Committee on Trade and Investment (CTI)
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Other Fora Involved |
Digital Economy Steering Group (DESG)
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Other Non-APEC Stakeholders Involved |
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Proposing Economy(ies) |
Peru
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Co-Sponsoring Economies |
Australia; Chile; China; Singapore; United States
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Expected Start Date |
01/12/2023
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Expected Completion Date |
30/06/2025
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Project Proponent Name 1 |
Ingrid Huapaya Puicon
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Job Title 1 |
Coordinator on Customs and Trade Facilitation
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Organization 1 |
Ministry of Foreign Trade and Tourism
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Postal Address 1 |
Not Applicable
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Telephone 1 |
+51015136100
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Fax 1 |
Not Applicable
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Email 1 |
ihuapaya@mincetur.gob.pe
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Project Proponent Name 2 |
Fernando Antoni o Vigil Rojas
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Job Title 2 |
Specialist on Customs
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Organization 2 |
Ministry of Foreign Trade and Tourism
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Postal Address 2 |
Not Applicable
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Telephone 2 |
Not Applicable
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Fax 2 |
Not Applicable
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Email 2 |
fvigil@mincetur.gob.pe
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Declaration |
Ingrid Huapaya Puicon
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Project Summary |
Digitalization is part of the permanent agenda of trade facilitation. Digitalizing the Bill of Lading has a relevant impact in customs procedures. It enables the digital transmission and processing of relevant information concerning goods and means of transportation, necessary for the clearance of goods which could facilitate their risk management.
The project will conduct a workshop to discuss the benefits and challenges of the implementation of an electronic Bill of Lading in APEC economies. The participation of customs, stakeholders, ports, public entities, and ocean carriers is critical to obtain their opinions and suggestions about the use of an electronic Bill of Lading in APEC economies. The project consists of a workshop in SOM3 2024 and a final report on the topics discussed in the workshop and voluntary recommendations.
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Relevance |
Region: During the COVID-19 pandemic, it became evident that numerous foreign trade procedures and logistics operations needed physical presence from the various stakeholders in the foreign trade logistics chain. This group primarily included customs agents, maritime agents, cargo agents, shipping agents, international and local carriers, temporary warehouses, port terminals, importers, exporters, and others.
Despite significant advancements in automation within foreign trade and logistics, including electronic communication and document management, some economies still manage manual procedures. These manual processes, such as physically transporting documents and coordinating through phone calls or emails, not only inflated transaction costs but also resulted in rework due to information errors. It's important to highlight that private sector associations actively promoted digitalization efforts in certain economies and even initiated relevant projects.
However, in specific cases, physical documentation remained indispensable due to limited technological progress, regulatory gaps, or insufficient technological infrastructure. This, in turn, elevated logistics expenses for both importers and exporters. One crucial document in this context is the bill of lading, a document serving multiple functions, including acknowledging the receipt of goods by the carrier, establishing carrier liability, specifying freight charges, detailing consignment information, and providing delivery instructions and routing information, among other purposes.
The potential adoption of an electronic Bill of Lading holds significant promise for trade facilitation across all economies. This initiative aims to explore the potential benefits of implementing an electronic Bill of Lading. Such a transition would eliminate the need for physical document presentations, a requirement imposed on trade operators for receiving imported merchandise, and expedite customs clearance and merchandise release. From a commercial perspective, this move would streamline supply chains in economies by enabling trade operators to access this document instantly, leading to quicker information processing and ultimately reducing logistics costs.
Eligibility and Fund Priorities: According with the APEC Project Funding Sources, this Project is aligned with the Sub-Fund on Supply Chain Connectivity which supports projects related to improving supply chain performance. The objective is to support developing economies to overcome the specific obstacles they face in enhancing supply chain performance. The project is eligible to this fund, because it contributes to implement the principle: to meet the objective of a 10% improvement in supply chain performance and yield reductions of time, cost, and uncertainty of moving goods and services through the region, related to that goal, improving digitalization in the logistic supply chain. The Project will allow APEC economies to modernize its supply chain, thereby reducing the costs of time and money in the import and export processes.
Capacity Building: This project will provide capacity building for APEC economies in the short, medium and long term. The use of the electronic bill of lading involves the use of new technologies, adaptation of procedures to their new virtual nature and the adoption of security mechanisms. The economies and stakeholders will have the opportunity to obtain data, know new technological developments, and share knowledge on the potential advantages and benefits of adopting an electronic Bill of Lading. If adopted, it will help to quicken the flow of international trade helping economies to meet domestic, SCCP and wider APEC’s goals toward the digitalization of trade and especially for the customs clearance.
Also, the project includes a workshop, which will allow representatives of the public and private sector to exchange ideas, solve doubts and issue recommendations based on all the information that will be exchanged, which may include the identification of technological training needs, simplification of procedures, and rethinking of processes.
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Objectives |
This project will evaluate the benefits of the use of an electronic Bill of Lading. The project seeks to show that an electronic Bill of Lading can facilitate the transmission of information, expediting customs procedures, making the flow of goods faster and reducing associates’ costs. Moreover, it could facilitate customs cooperation. It also proposed to enhance the capacity of APEC economies.
The project objective will be achieved through a workshop and a survey which could help to identify best practices, technological development, and regulations applied by APEC and non-APEC economies. This will include actions carried out by the private sector, including ocean carriers, freight forwarders and other stakeholders associations toward the use of electronic bill of lading.
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Alignment |
APEC: APEC Leaders endorsed the 2021 Aotearoa Plan of Action (APA) to implement the Putrajaya Vision 2040, highlighting the importance of promoting resilient supply chains and responsible business conduct, strengthening digital infrastructure, accelerating digital transformation and narrowing the digital divide. The APA also includes collective actions for economies to address key infrastructure gaps, improve digital connectivity, and promote the use of digital technologies.
The APEC Committee on Trade and Investment (CTI) endorsed the Third Phase of the APEC’s Supply Chain Connectivity Framework Action Plan (SCFAP III) in August 2022,with the following overarching goal: “To support our businesses in building secure, resilient, sustainable and open supply chains that create a predictable, competitive and digitally interconnected Asia-Pacific region for all.” This project is also aligned with Chokepoint 1 of SCFAP III: “Inefficient digitalization of end-to-end supply chains, including border procedures and trade documentation exchanges.
Also, the Guidelines for Paperless Trade (SCCP, 2021) establish that economies should accept electronic documents and certificates as the legal equivalent of paper versions, allow electronic import/export/transit declarations and permits, use their single window for advance cargo information and allow electronic signatures to protect against fraud.
Forum: This project is aligned with the following SCCP priority: “enhancing supply chain predictability and connectivity in the APEC region”. One of its objectives is “encouraging paperless trade and digitalization of customs processes to connect, streamline and modernize global supply chains”. Thus, the indicator “increase of digitalized customs processes and use of electronic declarations, payments, and documents”, has a direct connection with the project.
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TILF/ASF Justification |
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Beneficiaries and Outputs |
Output 1: A survey will be circulated to all economies through the APEC Sub-Committee on Customs Procedures (SCCP) to gain a more detailed understanding of the internal regulations and technologies that enable the use of bill of lading in economies that provide for it. This information provided by public and private sector will be of great utility for the purpose of conducting a comprehensive analysis regarding the feasibility of establishing a measure such as the adoption of electronic bills of lading. It will be inquired whether the transmission of the document takes place through single windows, port community systems, public or private platforms, or what would be the most suitable means for transmission. To elaborate the survey, previous research is needed regarding the initiatives and technical development within the economies by private and public sector.
The survey will be applied to policy makers directly linked to the control and regulation of the flow of goods (customs and ministries of commerce) or private sector representatives/stakeholders that handle foreign trade logistics operations (private associations of ocean carriers, freight forwarders, customs brokers, exporters and importers).
It is expected that the survey will have around 20 questions and request information related with initiatives, its data format, the interoperability between private operators and between public entities, such as single windows, customs, port authority, or others, challenges for implementation, and benefits for private and public sector. This document will be elaborated by the contractor with a minimum of four pages (excluding annexes) and will be disseminate to workshop participants for discussion.
Output 2 - Workshop: The workshop will gather APEC border agencies representatives or policymakers directly linked to the control and regulation of the flow of goods(customs and ministries of commerce) or private sector representatives/stakeholders that handle foreign trade logistics operations(private associations of ocean carriers, freight forwarders, customs brokers, exporters and importers) and representatives from relevant international organizations. It is expected that the workshop will be held during SOM3 meetings (August 2024) and that it will be a one-day in-person event. To elaborate the agenda, after survey report, is needed regarding the initiatives and technical development within the economies by public and private sector. An ex post survey will be conducted to evaluate the positive response by the participants and also the report on the results of the workshop, this document will be elaborated with a minimum of four pages(excluding annexes). The main topics of the tentative agenda will be developed in panels and areas follows: -The importance of bill of lading in the supply chain (participation of ports, ocean carriers’ associations, freight forwarders and customs broker associations). -The use of bill of lading in border agencies control (participation of customs, transport and port authority representatives). -Current electronic bill of lading practices and technological developments applied by private associations and economies (participation of ocean carriers associations and representatives of economies). -Regulatory or legal frameworks which permits the use of electronic bill of lading (participation of representatives of economies). -Practical session where participants will present an action plan that is currently or could be implemented in their respective home economies. Such action plans should reflect the key learnings from the presentations, incorporate the current and desired state of their home economies, as well as challenges and potential risks. -Dissemination of the ex-post survey forms.
Output 3 - Project Summary Report: Report an electronic report that will be developed after the information of the survey report and workshop was collected. It could be accessed by all economies in the APEC website and will be e-mailed to participants. Recommendations for future work will be prepared as part of the report guided by the discussions/results of the workshop. The project overseer will also survey and compile feedback from participants, especially input related to possible areas for future capacity-building activities. The report will be elaborated by the contractor with a minimum of 12 pages in length (excluding annexes) and will contain background information, summary of the workshop, summary of the survey and policy recommendation.
Outcome: 1) The key outcome of this project is to obtain information regarding the best practices, technological developments and regulations which facilitates the use of the electronic bill of lading by public and private sector. It is expected that APEC Economies will adapt the best practice recommendation and implement it in their economies.
Recommendations are developed based on the information obtained from the Survey Research and Workshop discussions on the best practices, technological developments and regulations which facilitates the bill of lading by public and private sector. The longer-term result of implementing such recommendations could be the reduction of costs of time and money in the logistics chain of foreign trade, which impacts the competitiveness of economies.
2) The project seeks to address challenges, especially technological ones, faced by border agencies and private stakeholders regarding the implementation of electronic bill of lading and maximize the potential of its use to accelerate the flow of goods, customs clearance and release of goods. The workshop will improve knowledge of border agencies and industries in APEC economies regarding the implementation of the use of electronic bill of lading, strengthening their skills to implement it. The exchange of experiences will allow them to elaborate proposals to reach this goal.
Beneficiaries: All customs agencies and private foreign trade sector from APEC member economies will benefit from the outputs of this project. Customs and transportation officers, and logistic operators that are interested in pursuing further SCCP work on digitalization can benefit from this project. Most importantly, this project will have a real impact on the supply chain, sharing standards and best practices applied and regulations across APEC economies.
The targeted participants will include APEC border agencies such as customs, transport, port authority and single window representatives, policy makers, and private sector representatives that manage bill of ladings in their trade operations and which are interested in pursuing further SCCP work on digitalization. Their engagement will be in the form of workshop attendance, survey-filling and provide recommendations. The project will promote equal opportunities for all gender. It is expected that the direct project participants will benefit from the best practice shared, voluntary recommendations and regulation proposals.
Most importantly, this project will have a real impact on the supply chain, sharing standards and best practices applied and regulations across APEC economies.
Description of Appropriate Workshop Participants: -Border agencies: Government officers of customs, transport, port authorities and entities that manage single window are needed to be part of the event considering they manage the document. In that sense, their opinion is relevant to reach the objectives of the workshop. In other words, public officer will play essential role in the project. -Private Sector: It is expected that private sector or industries could have higher awareness in the development of electronic bill of lading and provide comments of measures and draft regulation or standard to ensure its implementation. Further, women representatives could contribute to provide a different perspective. -Representatives of international organizations: International organizations have conducted important work on the application of electronic bill of lading. Therefore, they will be engaged to share their experiences using the electronic document in ports and between other stakeholders.
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Dissemination |
- Whether the document(s) and/or report(s) will be an APEC Publication: The project summary report will not be published as an APEC Publication. -The number, form and content of publications (Note: Electronic publication is preferred. APEC will not fund publications that are only presentation slides, or website maintenance). -The project summary report can be published electronically on the APEC website after being approved by the Secretariat and endorsed by SCCP. The electronic publication will include the workshop agenda, presentations, curricula vitae of speakers, best practices or successful experiences shared in the workshop, the survey report, conclusions and recommendations proposed. This information will be accessible to APEC economies. -Channels of dissemination: APEC website and APEC social media will be used to share workshop and survey results. -The target audience of each output document/report: The target of audience will be border agencies, especially customs, and private sector representatives which manage the document to control and develop trade operations. -Any intention to sell outputs arising from this project: There is no intention to sell the outputs arising from this project. APEC economies will be encouraged to disseminate results of the workshop with their respective agencies and business communities through their websites. -Also, Peru is considering additional dissemination measures within its economy such as:(i)an special event for launching of the Project Summary Report once it is published in the APEC website (it will bee an APEC Publication), (ii) the publication of the project summary report in its domestic website; and (iii) the direct distribution of the project summary report to the Peruvian target audience (enforcement authorities and private sector representatives). To achieve a broader scope regarding the execution of the afore mentioned additional measures, we will translate the project summary report into Spanish.
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Gender |
Please refer to the Project Proposal in Supporting Documents folder.
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Work Plan |
Please refer to the Project Proposal in Supporting Documents folder.
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Risks |
Please refer to the Project Proposal in Supporting Documents folder.
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Monitoring and Evaluation |
Please refer to the Project Proposal in Supporting Documents folder.
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Linkages |
We plan to engage with other APEC for a such as CTI and DESG, Also, from non-APEC stakeholders, we plan to also engage with ocean carriers, which have important initiatives toward the goal to use an electronic Bill of Lading. We will have as a reference their existing projects, specifically from the Digital Container Shipping Association(DCSA). This private organization is involved in promoting the adoption of an electronic Bill of Lading within the container shipping industry, and is focused on facilitating the transition from paper based Bills of Lading to electronic ones, promoting also to standardize the document using a common data definition, communication protocols and technology standards. This initiative was presented in the Workshop Implementing APEC’s Framework for Supply Chain Connectivity: Focus on Digitalization of End-to-End Supply Chains, which took place on February 18th 2023 on Palm Springs, as part of the activities of SOM1 SCCP. Additionally, we also will collect the experience of some ports of APEC economies that have projects to digitalize documents to expedite its processes.
This project does not duplicate previous work. It must be noted that while events regarding digitalization have been previously developed, this project focuses specifically on the use of electronic bill of lading comprising voluntary recommendations and successful experiences on its implementation.
On the other hand, APEC is the best option for the development of this project as it allows the possibility to assess and include different contexts and experiences from both developed and developing economies, which will indeed enrich the results of the project summary report.
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Sustainability |
The project seeks to develop a project summary report with recommendations toward the implementation of electronic bill of lading. Successful experiences on the matter shared by APEC economies through the workshop and the survey will also be included in the report to give a better understanding to APEC economies. The project summary report will be published at the APEC website and once the project is finished, it will remain available for consultation or download for APEC or even non-APEC economies.
Also, in order to procure an impact after the APEC funding is finished, Peru will continue working on the dissemination of the content of the project summary report by encouraging its consultation to all officials or private sector representatives that manage this document for control and operative purposes. To that end, SCCP future meeting will be used to follow up with economies around the dissemination activities that they have also been carried out.
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Project Overseers |
The PO for this project will be Ms. Ingrid Huapaya, who currently works as a specialist on trade facilitation at General Directorate of Trade Facilitation of the Ministry of Foreign Trade and Tourism. She is a lawyer, with more than 12 years of experience on international trade and customs. Negotiator of customs procedures and trade facilitation provisions, customs cooperation and global supply chain of free trade agreements. Team member of the management body of the National Committee on Trade Facilitation and the implementation unit of WTO Trade Facilitation Agreement in Peru. Contact point of Peru in working groups related with customs and transport topics, in the scope of APEC, Pacific Alliance and Andean Community. Ms. Huapaya is speaker at international conferences on such topics.
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Cost Efficiency |
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Drawdown Timetable |
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Direct Labour |
Please refer to Project Proposal in Supporting Documents folder.
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Waivers |
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Are there any supporting document attached? |
No
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Attachments
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