* Atleast Project Title is Required.
|
Project No. |
SCCP_202_2023A
|
Project Title |
Best practices to promote transparency in the logistic supply chain: information platforms of logistic services for foreign trade
|
Project Status |
Project in Implementation
|
Publication (if any) |
|
Fund Account |
APEC Support Fund
|
Sub-fund |
ASF: APEC Supply Chain Connectivity
|
Project Year |
2023
|
Project Session |
Session 2
|
APEC Funding |
130,000
|
Co-funding Amount |
0
|
Total Project Value |
130,000
|
Sponsoring Forum |
Sub-Committee on Customs Procedures (SCCP)
|
Topics |
Customs; Trade Facilitation; Transparency
|
Committee |
Committee on Trade and Investment (CTI)
|
Other Fora Involved |
|
Other Non-APEC Stakeholders Involved |
|
Proposing Economy(ies) |
Peru
|
Co-Sponsoring Economies |
Hong Kong, China; Korea; United States
|
Expected Start Date |
01/02/2024
|
Expected Completion Date |
30/06/2025
|
Project Proponent Name 1 |
Ingrid Huapaya Puicon
|
Job Title 1 |
Coordinator in customs and trade facilitation
|
Organization 1 |
Ministry of Foreign Trade and Tourism
|
Postal Address 1 |
Not Applicable
|
Telephone 1 |
+5101513-6100
|
Fax 1 |
Not Applicable
|
Email 1 |
ihuapaya@mincetur.gob.pe
|
Project Proponent Name 2 |
Not Applicable
|
Job Title 2 |
Not Applicable
|
Organization 2 |
Not Applicable
|
Postal Address 2 |
Not Applicable
|
Telephone 2 |
Not Applicable
|
Fax 2 |
Not Applicable
|
Email 2 |
Not Applicable
|
Declaration |
Ingrid Huapaya Puicon
|
Project Summary |
Transparency is one of the pillars of trade facilitation. It reduces information asymmetries, allowing exporters, importers, or their representatives, to take better decisions when they hire logistics services for their foreign trade operations. The project proposes a survey to learn, analyze and study best practices of platforms, modules or websites in providing information of their logistics services. This information of best practices will allow to conduct a comparative analysis and set the basis for proposals to develop or improve platforms. The results and analysis of the survey will be discussed in a workshop. A report on the workshop and voluntary recommendations to be referred where applicable will be the final product of this project.
|
Relevance |
Region: The level of transparency of the international air, sea, land, courier and postal physical distribution chain is not very significant. The project aims to address problems related with lack of transparency. The greater asymmetry of information allows operators to extract rent. However, this effect reduces with the level of competition. When operators are price takers, that is, demand sets the price, the impact of low levels of transparency is not very significant on the costs that users have to assume. On the contrary, when operators are able to set prices and information asymmetries exist, users' logistics costs increase dramatically, particularly this is the case of containerized cargo. In this sense, transparency is essential to organize the logistics services market. A survey will analyze the way operators provide information of their logistic services. In that sense, the project will focus finding if existing platforms, webpages or any other mean to transmit that information are helpful to make transparent the trade logistics services information in APEC economies. The main problems to be analyzed are:
1. Information asymmetry When users do not have access to detailed and accurate information about available logistics services, it can be difficult for them to make informed decisions and obtain services that best suit their needs.
2. Increased costs: Lack of transparency can lead to unclear pricing, resulting in higher costs for users of foreign trade logistics services.
3. Low service quality: Lack of clear and transparent information can make it difficult to assess the quality of logistics services offered, resulting in lower service quality and customer satisfaction.
4. Risks and liability: Without transparency, users may not be fully informed about the risks involved in using foreign trade logistics services, increasing their liability in case of any problem or incident.
5. Lack of trust and credibility: Lack of transparency can undermine user trust in logistics providers, reducing their willingness to use these services in the future.
Eligibility and Fund Priorities: According with the APEC Project Funding Sources, this Project aligns with the Sub-Fund on Supply Chain Connectivity, which supports projects related to improving supply chain performance. The project is eligible to this fund, because it follows the objective of a 10% improvement in supply chain performance, yield reductions of time, cost, and uncertainty of moving goods and services through the region, related to that goal, improving transparency in the logistic supply chain.
Capacity Building: Economies and stakeholders will have the opportunity to obtain data and share knowledge about where the gaps are in that part of the supply chain related to the moment when the logistic services are selected and hired. Such evidence will help to quicken the flow of international trade and the capacity to improve regulations and measures to avoid information asymmetry in the supply chain. This evidence will help economies to have a more transparent logistics market. The information about these tools could help to streamline logistic operations because they provide real time data on supply chain activities, minimizing resource wastage, improving efficiency across the logistic network. This information could help importers and exporters to identify cost saving opportunities, reduced transportation expenses, lower storage costs and organized their budget. Furthermore, this project will fulfil capacity building needs of economies related to transparency of logistic services.
|
Objectives |
The objective of this project is to identify and share best practices on the way in which logistic operators transmits the information to users about their trade logistics services so the former can avoid double charges and/or hiring informal enterprises, calculate tariffs, choose efficient operators, among others. It will also identify the contents of logistic services to ensure transparency in the logistics market. This will contribute to enhance competitiveness of the Asia-Pacific region’s foreign trade, and will help foreign trade actors, especially the ones on customs services, since transparency is a key issue to secure supply chain.
|
Alignment |
APEC: The project aligns with the following Aotearoa Plan of Action (APA) Collective Actions: (i) Increase trade predictability and openness by improving economies’ transparency through trade measures and policies; (ii) Implement APEC's Connectivity Blueprint, including by strengthening connectivity and resilient supply chains within APEC, and by cooperating to equip businesses to better understand their supply chains; and (iii) Advance capacity building programmes to support the implementation of and adherence to WTO rules, including transparency and notification obligations. Also, this project has a relationship with the overarching goal for Phase Three of APEC's Supply Chain Connectivity Framework Action Plan (SCFAP III), which is: “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”. Also, the project is aligned with the 2021 AMM Declaration, where the Ministers reaffirmed their commitment “to address supply chain disruptions” and agreed to “continue to support our businesses to build and maintain open, secure, and resilient supply chains to facilitate seamless connectivity in the region”.
Forum: This project directly supports the Priority 3 of the SCCP Strategic Plan (2022-2025): “Enhancing supply chain predictability and connectivity in the APEC region”. One of its objectives is “Harmonization of customs procedures between APEC economies to facilitate trade and improve predictability of supply chains”, which is related to this project, because greater transparency will improve predictability of supply chains. Besides, the knowledge acquired in this project will enrich the contends of foreign trade single windows. The project also supports the Priority 4: “Exploring the use of new technology and innovative solutions to secure supply chains”, which one of its objectives is strengthening supply chain security and resilience through technological innovations.
|
TILF/ASF Justification |
|
Beneficiaries and Outputs |
Output 1 - Survey Report: A survey will be circulated to all economies to collect information regarding successful experiences on the implementation of tools that contains information regarding the list and description of logistic services and fares and which guarantee the transparency of the logistic services provided by ocean carriers, freight forwarders, customs brokers, carriers, and other logistic operator. The survey will also request information regarding regulations supporting the use of technological tools for transmitting information about logistic services. The survey will be applied to public sector (border agencies representatives or policy makers directly linked with the regulation and operation of logistic services involve in international trade like customs officials, trade and transport officers) and private sector (representatives/stakeholders that handle foreign trade logistics operations like private associations of ocean carriers, freight forwarders, customs brokers, warehouses, international carriers, exporters and importers). This information provided will be of great utility for the purpose of conducting a comprehensive analysis regarding the feasibility of establishing a measure such as the implementation of electronic platforms, modules or websites. It will be inquired whether the transmission of the information 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. As a result of the survey carried out previously, a report will be prepared describing the analysis carried out, the text of which will lead to identifying the best practices regarding existing means to transparent the description, fares and list of services provided by trade operators, thus improving the competitiveness of trade. This document will be elaborated with a minimum of four pages (excluding annexes)and will be disseminate to workshop participants for discussion. The survey report will not be an APEC Publication.
Output 2 - Workshop: The workshop will gather stakeholders, border agencies representatives or policy makers directly linked with the regulation and operation of logistic services involve in international trade (customs officials, trade and transport officers) as well as private sector representatives/stakeholders that handle foreign trade logistics operations (private associations of ocean carriers, freight forwarders, customs brokers, warehouses, international carriers, exporters and importers).
It is expected that the workshop will be held during SOM3 meetings (August 2024) and it will be a one-day in-person event in Lima (Peru). To elaborate the agenda, previous research is needed regarding the initiatives and technical development within the economies by public and private sector. An ex-post evaluation will be conducted to evaluate the positive response by the participants.
The main topics of the agenda will be: - Overview of logistic services in the supply chain. - Dissemination of survey report to participants for discussion. - Identification of issues affecting services provision and their impact on trade. - APEC economies' initiatives promoting transparency in the trade logistics market. - The importance of transparency in logistic services and its role in enhancing customs control. - Technological innovations used by private associations for presenting information on logistic services (description and fares) - Regulations and legal frameworks supporting the use of technological platforms, modules, webpages, or other means for transmitting information about logistic services. - A practical session where participants will propose action plans that are either in progress or could be implemented in their respective economies. These action plans should integrate insights from the presentations, align with the current and desired state of their economies, and address challenges and potential risks. - An ex-post evaluation to evaluate the positive response by the participants. - A final session in which participants to receive a wrap up and will discuss on the recommendations and insights on how the Workshop contribute to their role in their economy.
Output 3 - Project Summary Report: An electronic report that will be developed after the information of the survey report and workshop was collected. It can be accessed by all economies in the APEC website and will be e-mailed to participants. Voluntary recommendations for future work will be prepared as part of the report guided by the discussions/results of the workshop and survey. The Report will be a minimum of 12 pages in length (excluding annexes) and will contain background information, summary of the workshop, key discussions/results from the Survey Report and voluntary policy recommendation. The Project Summary Report will be an APEC Publication
Outcomes: 1) The key outcome of this project is to gain knowledge and information on best practices, technological advancements, and regulations that support transparency within the logistics services offered by trade operators as part of the supply chain. It is expected that APEC Economies will embrace these best practice recommendations to be referred where applicable and integrate them into their own systems. The outcomes of this implementation could potentially lead to reduced time and cost burdens, as clients of these services (exporters, importers, or their representatives) will have access to more information, enabling them to make better-informed choices when selecting logistics service providers.
2) The workshop will enhance the knowledge of border agencies and industries in APEC economies regarding the implementation of electronic platforms, websites, modules, or other means to enhance the transparency of logistics information. Sharing experiences will contribute to enable them to formulate proposals to achieve this objective. Furthermore, the project aims to enhance the knowledge of customs authorities in terms of best practices for transparency in logistics information. This, in turn, can support them in more effective risk management concerning the control of goods and individuals.
Beneficiaries: The targeted participants will include APEC border agencies such as customs, transport, and single window representatives, as well as policy makers and trade operators offering logistics services like international carriers, freight forwarders, warehouses, customs brokers, exporters, importers or others which are interested in pursuing further SCCP work on transparency and digitalization of supply chain using technological tools. Their engagement will be in the form of workshop attendance, ex-post evaluation and providing 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. Customs authority could use the information provided to improve its risk management, since they will obtain information on how the foreign trade operators operate, Most importantly, this project will have a real impact on the supply chain, sharing new technological developments, best practices applied and regulatory insights across APEC economies.
Description of Appropriate Workshop Participants: - Border Agencies: The participation of government officials responsible for customs, transport, and single window management is crucial. Given their oversight and regulation of services provided by trade operators, their perspectives are indispensable in achieving the workshop's objectives. Public officers will play a pivotal role in driving the project's success. - Private Sector: The private sector, including various industries which provides and contracts logistic services, is expected to possess a heightened awareness of tools supporting transparency in the logistics services market. Their insights and feedback on measures, draft regulations, or standards to ensure implementation are invaluable. Additionally, the inclusion of women representatives can offer unique perspectives, contributing to a more well-rounded discussion. - Indirect beneficiaries: the final consumers of imported goods, because the transparency of logistics services will allow importers to contract more efficient services at lower costs, avoiding cost overruns, which will not be passed on to final consumers.
|
Dissemination |
The results of the project will be captured into a written document called "Project Summary Report" that will be published electronically on the APEC website. Also, the APEC website and APEC social media will be used to share survey report and workshop results.
The target audience will be border agencies, especially customs, and private sector representatives such as trade operators which provide logistic services.
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) to present the results of the project to the public and private sector.
Peru (border agencies, especially customs, and private sector representatives such as trade operators which provide logistic services).
Self-funded activity; (ii) the publication of the project summary report in its domestic website (www.mincetur.gob.pe); 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 additional measures, we will translate the project summary report into Spanish. The translation costs shall be self-funded.
|
Gender |
Please see Project Proposal posted in Supporting Documents folder.
|
Work Plan |
Please see Project Proposal posted in Supporting Documents folder.
|
Risks |
Please see Project Proposal posted in Supporting Documents folder.
|
Monitoring and Evaluation |
Please see Project Proposal posted in Supporting Documents folder.
|
Linkages |
The project plans to engage with other APEC fora by sharing the invitation to the workshop with CTI and DESG, also with the academy and agencies such as UNCTAD and the World Bank which works on logistics topics, and have been quite interested in researching and promoting transparency of logistics services in the face of increasing costs during and after the COVID-19 pandemic.
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 implementation of electronic platforms, webpages, modules or other tools which contain information regarding the list and description of logistic services and fares, supporting transparency in logistic market.
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.
|
Sustainability |
The project seeks to develop a project summary report with recommendations toward the implementation of electronic platforms, webpages, modules or other tools which contain information regarding the list and description of logistic services and fares, supporting transparency in logistic market. 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.
|
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.
|
Cost Efficiency |
|
Drawdown Timetable |
|
Direct Labour |
Please see Project Proposal posted in Supporting Documents folder.
|
Waivers |
|
Are there any supporting document attached? |
Yes
|
Attachments
|
|
|
|
|