E-Business Theory 04

 

CLOSING CASE 3: MADAGASCAR’S PORT MODERNIZES CUSTOMS WITH TRADENET 

Questions 

1. Describe the role of GasyNet in the process. 

The port had difficulties competing with other ports in the area that offered faster and more efficient customs management systems. Therefore, the Medagasy Community Network Services (“GasyNet”) saw the need to create a single online platform to connect the entities in the trade community. They relied on a new system, which is an integration of TradeNet, an electronic data exchange, and ASYCUDA++ 

2. Describe the contribution of TradeNet.

 To improve the flow of material and provide a competent trade environment, the TradeNet system was integrated with ASYCUDA++. The importers input their custom declarations data into GasyNet, which in turn transmits the data to TradeNet, which enables all involved partners to share data and transmit results. The results that are returned to TradeNet are transferred to GasyNet and then to the importers. 

3. What is the role of EDI in this system? The TradeNet system is a typical B2B platform. Explain why. 

Electronic data interchange (EDI) is the digital exchange of business documents between companies using computers, replacing old fashioned faxing and emailing methods. Standard documents exchanged over EDI include procurement orders, invoices, and shipping documents. EDI is employed during a sort of industries by quite 100,000 companies, most of whom require their trading partners also to adopt EDI to make sure continuity, collaboration, and the standardization or ordering and communication

. Electronic data interchange is now widely used in a global, supported a variety of standards that are enacted that provide basic guidelines for its use. The two standards bodies that are most often related to Electronic Data Interchange are the ANSI X12 standard, used primarily within the US, and therefore the UN EDIFACT standard that is used outside of the United States. A Single Window covers major regulatory documents, such as Certificates of Origin, Sanitary and Phytosanitary Certificates, and National Standard and Quality Certificates. Its services should be extended to other B2G and B2B areas, such as trade track-record certification and cross-border e-commerce-related services. 

The main objective of an SW is to streamline the trade regulatory process through a single submission of information. Many SWs are focusing on single submission for customs clearance as a core regulatory process. However, other procedures exist before or after customs clearance. In practice, it is not possible to cover all the trade procedures with one-time submission of information to an SW. To address this issue, incremental submission of data and reusability of data should be introduced to reuse data in an SW by the other government agencies (or other trade service providers), if required. 

Considering its advantage of being connectivity with government agencies, banks, and trade community, it is advisable to utilize an existing SW to process other import or export permits, licenses, and national standard and quality-related conformity certificates that are required before or after clearance. Other extension services of an SW to be considered would be a trade track record certification for exporters and importers and the sharing of customs clearance and cargo status information with commercial banks for trade financing assurance.

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