global single window gcel digital economy publication

Global Single Window++

by GCEL

The Global Single Window ++ (GSW ++) allows for lodgment of shipment information and documents with a single point to fulfill all import, export and transit related regulatory requirements.


UNITED NATIONS ECONOMIC COMMISSION FOR EUROPE & ECONOMIC AND SOCIAL COMMISSION FOR ASIA AND THE PACIFIC

“The efficiency of international trade transactions depends on the availability, quality, and reliability of information associated with the movement of goods and related services across the borders for international trade transactions. The growth of global trade, congestion of ports and airports and more stringent security requirements have amplified the need for trade information standards and technologies.” 

“A Single Window, if successfully implemented, makes a major contribution to the national capacity to export to the world’s markets. The reliability and variability of its data processing systems is as important for the export performance of a country as the national transport sector.”

Global experts believe that the GSW++ is natural and inevitable, and that it may emerge sometime in 2015. The GSW++ can be accelerated if there is a strong international agency assisting and motivating international trade to move along this path.

 

What is the Single Window (SW)?

“A facility that allows parties involved in trade and transport to lodge standardized information and documents with a single entry point to fulfill all import, export, and transit-related regulatory requirements. If information is electronic, then individual data elements should only be submitted once.”

 

How does it work?

The United Nations Economic Commission for Europe (UNECE) and the World Customs Organization (WCO) have published general guidelines to assist in the implementation of National Single Window Initiatives to support more efficient international trade. Examples of objectives of single windows include:

  • Create single point of submission for import and export documents
  • Reduce cost and delays
  • Faster clearance and release
  • Provide governments with correct revenue yields
  • Improved trade compliance
  • Enable the use of sophisticated “risk management” for control and enforcement
  • More effective and efficient deployment of resources

 

Who Supports the SW?

The concept is recognized and promoted by several world organizations that are concerned with trade facilitation. Among these are: UNECE and its Centre for Trade Facilitation and Electronic Business (UN/CEFACT), WCO, SITPRO Limited of the United Kingdom and the Association of Southeast Asian Nations (ASEAN).

 

What are the main foundations for the Global Single Window ++?

GSW++ will remedy the challenges facing the National Single Window (NSW) and the Regional Single Window (RSW), thus maximizing adoption and expediting deployment of the Single Window initiative. The GSW++ represents one of the main foundations for 21st century sustained economic growth.

Seldom in world history have there been so many people and nations looking for leadership in the midst of a global economic crisis. Consumers and investors worldwide are gripped by fear of tomorrow.

Recognizing the interdependency of the global economies and the need for a rapid, comprehensive solution, we must start with the “WORLD COMMON DENOMINATOR” one that bridges continents, countries and cities, the Global Logistics Industry (GLI). We cannot underestimate the GLI. A secure and efficient GLI will boost our regional and global trade, stimulate our economies and quickly improve our daily lives.

Consider the paradigm shift in globalization delivered through the advent of shipping trade containerization. This GLI innovation fueled decades of economic development worldwide. The interdependent global economy of today demands an efficient and secure GLI as a vital requirement to re-energize worldwide commerce. Trade is a main key to sustained economic growth and the GSW is an important element to unleash 21st century trade efficiency and security.

The National and Regional Single Windows provide savings in terms of expediting the clearance of goods, thus reducing delays and improving trade compliance as well as revenue yields. However, some challenges do exist and must be addressed in order to achieve and maximize the original objectives.

The main foundations for a successful GSW ++ include:

  • Optimal value proposition at no cost to the end user, ensuring rapid adoption
  • Offsetting geopolitical and monopolistic concerns
  • Delivering and sustaining GSW ++ by a trusted network

It is of paramount importance that the scope and structure of the GSW++ incorporate the commercial aspects of the trade industry. This will remedy the single window challenges; providing the tools to boost trade efficiency and security, unleashing an unprecedented value proposition to public and private end users worldwide at no cost – thus ensuring rapid global adoption.

According to global experts supported by the World Bank, there are seven elements in total by which logistics and trade efficiency are measured and optimized. While the National and Regional Single Windows address one of these elements, the GSW++ must contemplate the remaining six elements. In another words, in order for the GSW++ to be globally adopted and effectively deployed, it must contribute to trade facilitation beyond expediting goods clearance. The expansion of GSW++ scope and functionality will introduce a new dimension in global logistics.

 

How can GSW++ enhance current Single Window initiatives?

There are three main categories in which to optimize the GSW++ value proposition to the public and private sectors, including:

I – New level of efficiency delivering the following:

  1. Tools and measurable mechanism to reduce the cost of trade and operations, thus
  2. Expediting and enhancing the proposed benefits of the GSW++ promoted by UNECE, WTO, WCO, and
  3. Expanding the GSW++ benefits based on World Bank Logistics Performance Index (LPI) standards

II – Securing flow of commerce against cargo terrorism:

  1. Tools to meet international cargo security mandates with minimal efforts from end users, reducing compliance cost and thus increasing participation
  2. Provide advance dynamic global cargo visibility validated by multiple parties, thus confirming source of origin, automatically flagging counterfeit products, and expediting advance clearance with proper customs duties
  3. Protect international borders and flow of commerce through proven multi-layers of cargo security defense

III – Zero cost to the end user:

Today there are three main business models that are used for national, regional or global solutions, however none of these work in a Interdependent Process Environment (IPE) involving multiple parties.

These business models include:

Transactional Fee

i.If one of the parties fails to pay its transactional fee, it cannot use the system, resulting in a gap in the efficiency and security of the IPE.
ii. It is not equitable that the party who pays its fees must incur diminished efficiency, due to those parties in the IPE who do not pay their fees.
iii. Considering the number of transactions per shipment, shipments per IPE, and PPEs worldwide, it will require an army of accountants to properly monitor financial activities.

 

Subscription

The same concerns of (i & ii) apply.

 

User Seats

i. The cost of the system and the sales force required for a global solution can limit the global reach.
ii. The system maintenance and upgrades can be cost prohibitive, creating multiple versions within the same IPE, resulting in incompatibility between users.
iii.  The users’ systems network will require subscription fees, therefore the same above “Subscription” concerns apply.

In order for a global solution to be rapidly adopted, involving multiple parties in PPE, it must be “FREE OF COST.” A new business model is a must in order to achieve the above and sustain a truly global solution.

The Global Logistics System (GLS) that represents the main element of the integrated Five Dimensional Digital Economy (I-5DDE) or Digital Economy Platform (DEP) will be provided free of cost to the end user through a revenue-sharing model within the World Logistics Council Network (WLCN). The WLCN consists of the world’s most prominent Finance, Insurance and Technology firms, selected through an equal opportunity, transparent Request for License (RFL) process to become the Gateways to the DEP.

The Technology Gateways will provide access to the DEP free of cost to the end user in a non-intrusive, easy to use manner. The Finance and Insurance Gateways will provide their services more efficiently, at lower cost to the end user. For every $1 of revenue generated, about 10¢ will be shared under a public private partnership with the Technology Gateways in order to build, deploy, maintain and enhance the core system and provide the DEP free of cost to the end user in a non-intrusive, easy to use manner. The Finance and Insurance Gateways will provide their services more efficiently, at lower cost to the end user. For every $1 of revenue generated, about 10¢ will be shared under a public private partnership with the Technology Gateways in order to build, deploy, maintain and enhance the core system.

 

How Can we Offset Geopolitical and Monopolistical Concerns ?

A global solution must offset geopolitical and monopolistic concerns through its organizational structure and the process by which it delivers the solution. The governance, planning and execution must involve capable public as well as private sector organizations selected through a transparent RFL process, providing equal opportunity to all. The 4 regions around the world must equally share the governance and the benefits of the global initiative

 

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