ASIA PACIFIC ECONOMIC COOPERATION
TRANSPORTATION WORKING GROUP
SIXTEENTH MEETING – HONG KONG, CHINA
NOVEMBER 1999

STEERING COMMITTEE ON MORE COMPETITIVE TRANSPORTATION INDUSTRY (INCLUDING INFRASTRUCTURE)

PROGRESS REPORT ON PAPERLESS TRADING REVISION 1

Submitted by Australia

October 1999

LEAD ECONOMY: AUSTRALIA

SIXTEENTH APEC TRANSPORTATION WORKING GROUP
MEETING – HONG KONG, CHINA - NOVEMBER 1999

AGENDA ITEM 3 : Review of Progress on Existing Projects -Electronic Commerce

Australia

Background

The APEC Steering Group on Electronic Commerce (ECSG) at its June meeting in Auckland discussed the need to move forward the paperless trading initiative that is identified in the APEC Blueprint for Action on Electronic Commerce. Australia on behalf of the TPT-WG advised the Steering Group that it was not able to progress the paperless trading initiative further in accordance with the APEC Blueprint for Action and called upon the Steering Group to progress the work in consultation with sub-fora, economies and business. Chinese Taipei shared its successful experience with import and export cargo clearance automation.

The meeting agreed that the paperless trading initiative forms part of the future work program of the Steering Group. A web page will be set up in the Steering Group’s web site, supported by contact points in economies and relevant sub-fora (Chair or designate), to facilitate work under the initiative and to monitor progress towards the achievement of the paperless trading initiative (2005 for developed and 2010 for developing economies or as soon as possible thereafter). Information on activities and progress will be updated on the Steering Group web site for inclusion in the Steering Group’s annual report to SOM.

As part of the virtual reporting on activities and progress, economies and sub-fora will use the TPT-WG matrix of paper requirements as a starting point. A Steering Group matrix will be produced with input from sub-fora – including their private sector participants - and economies to report on the progress of activities relating to the replacement of these paper-based transactions by electronic techniques. This matrix will be placed on the Steering Group web site as a reference and monitoring tool for sub-fora, economies and business. Economies and sub-fora will update the matrix to facilitate reporting on progress by the Steering Group to Ministers and Leaders.

The Steering Group also agreed to recommend to SOM the following action priorities:

1. Economies to include the paperless trading initiative in their Individual Action Plan.
   
2. APEC fora such as TPT-WG, SCCP, TEL and WGTP to include paperless trading in their respective Collective Action Plan, where relevant, and to undertake activities including joint-projects, which would contribute to the substitution of electronic techniques for paper documentation in international and cross-border trade transactions.
   
3. Interested economies to undertake joint demonstration projects, which would contribute to the paperless trading initiative and with participation from the business sector. The Steering Group noted that previous work in TEL provides a model for joint activities between economies and sub-fora, based on a demonstration project of end to end paperless trading, including all commercial and regulatory requirements.
   
4. Economies to share their experiences including success stories in relation to paperless trading with the Steering Group in order for other economies to benefit from the experiences.
   
5. With regard to regulatory and institutional barriers in the financial and payment sector, the Steering Group agreed that the Co-Chairs of the Steering Group will communicate with the Finance Deputies’ process to encourage them to include paperless trading in their policy initiatives that are relevant to international and cross-border trade transactions. It is also agreed that the authentication matter in relation to these issues will be addressed by TEL.
   
6. In order to ensure comprehensive APEC coverage and increased momentum of the paperless trading goal, the Steering Group agreed to request the CTI, ESC and other related APEC fora to give priority to paperless trading activities in the context of the work program of their respective sub-fora (as appropriate) and to report annually on progress with the Steering Group matrix. The Steering Group also recognises the need for cooperation between APEC fora and ABAC.

The Steering Group submitted a report on the outcome of the Auckland meeting to SOM and Trade Ministers in June. Trade Ministers noted in their Statement that paperless trading –aimed at streamlining transport, freight, customs and other transactions throughout the region - is a key area for action. The US Co-Chair of the Steering Group also attended the CTI meeting in June to seek CTI support for the initiative.

At their meeting in September Trade Ministers gave further impetus to the recommendations of the Steering Group by approving measures to move more rapidly towards paperless trading throughout the region. Ministers want higher priority given to this work, and economies will be encouraged to incorporate the paperless trading initiative into their Individual Action Plans. Minister also want working groups to give higher priority to the initiative, by formulating collective actions that all economies can use to move closer to meeting the paperless trading goals. Ministers instructed officials to increase their efforts to achieve the 2005 and 2010 targets, and to report to Ministers at their next meeting in June 2000. Leaders in their Statement recognised the key role that electronic commerce will play in linking APEC economies.

In accordance with the above developments, the TPT-WG is expected to continue its work on paperless trading including close collaboration with other APEC fora such as TEL and the SCCP. Australia is proposing to submit a joint project proposal for TPT-WG approval at the March 2000 meeting in Singapore. This proposal will build on current work by the Australian Quarantine and Inspection Service (AQIS) to extend the application of SANCRT [a UN/EDIFACT message applying to the "International Movement of Goods Government Regulatory" - specifically Sanitary/Phytosanitary Certification for agricultural exports] to other Asian economies. AQIS and Australian Customs have successfully collaborated to create a single electronic window for certain exports from Australia using SANCRT as the export clearance certificate - this could form the model for other APEC economies.

The proposed project will use automated procedures to clear and transport consignments, including the SANCRT EDI message, with an associated digital certificate using public key methodology for authentication and to ensure confidentiality of the message. This project would be ground breaking in linking use of various automated procedures by 3 APEC working groups working together to demonstrate the benefits of paperless trading. The project will require the participation of a number of APEC economies. This project will kick-start implementation of the TPT-WG electronic commerce collective action plan (CAP) since "the electronic single window facility" and "the removal of requirements for paper documents" are two of the 6 action priorities under the agreed CAP.

At the request of the Steering Group, Australia, as the TPT-WG representative, has also agreed to lead the work in developing the Steering Group matrix using the TPT-WG requirement for paper document matrix as a reference point.

Australia will need the support of TPT-WG members in updating the TPT-WG matrix and providing information to assist in the development of the Steering Group matrix. Australia will be working closely with other members of the Steering Group for this task. It is most encouraging to note that the Japanese delegation to the Steering Group has already consulted the Japanese Ministry of Transport regarding the TPT-WG matrix.

Other economies are encouraged to initiate similar collaboration to pursue the paperless trading initiative. In Canberra an APEC electronic commerce contact group consisting of officials in Australian government agencies has recently been established. The purpose of the group is to progress the key objectives of the Ministers’ Statement of September 1999 including paperless trading and the coordination of work through the Steering Committee.

Recommendation

It is recommended that TPT-WG member economies:

• Note the above developments on the paperless trading initiative;
  
• Commit by including paperless trading in their IAPs and by participating in activities that contribute to the achievements of the 2005/2010 targets; and
  
• Endorse the submission of an Australian proposal for a joint TPT-WG/SCCP/TEL project on paperless trading at the Singapore meeting in March 2000.

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