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Annex 5 UN-EDIFACT __ ____________ WORLD BANK TECHNICAL PAPER NUMBER 317 ,/X6. /9fls Information Technology and Public Disclosure Authorized National Trade Facilitation Guide to Best Practice Robert Schware and Paul Kimberley Public Disclosure Authorized Public Disclosure Authorized J ,, I I,- , Public Disclosure Authorized A5,IIIII/ _a~~~- -- f - '_ RECENT WORLD BANK TECHNICAL PAPERS No. 237 Webster, The Emergenceof PrivateSector Manufacturing in Poland:A Survey of Firms No. 238 Heath, Land Rights in C6ted'lvoire: Survey and ProspectsforProject Intervention No. 239 Kirmani and Rangeley, InternationalInland Waters:Conceptsfor a More Active WorldBank Role No. 240 Ahmed, RenewableEnergy Technologies:A Review of the Status and Costsof SelectedTechnologies No. 241 Webster, Newly PrivatizedRussian Enterprises No. 242 Barnes, Openshaw, Smith, and van der Plas, WhatMakes PeopleCook with ImprovedBiomass Stoves? A ComparativeInternational Review of Stove Programs No. 243 Menke and Fazzari, Improving ElectricPower Utility Efficiency:Issues and Recommendations No. 244 Liebenthal, Mathur, and Wade, Solar Energy:Lessonsfrom the PacificIsland Experience No. 245 Klein, External Debt Management:An Introduction No. 246 Plusquellec, Burt, and Wolter, Modern WaterControl in Irrigation:Concepts, Issues, and Applications No. 247 Ameur, Agricultural Extension: A Step beyondthe Next Step No. 248 Malhotra, Koenig, and Sinsukprasert, A Survey of Asia's Energy Prices No. 249 Le Moigne, Easter, Ochs, and Giltner, WaterPolicy and Water Markets:Selected Papers and Proceedingsfromthe World Bank's Annual Irrigationand DrainageSeminar, Annapolis, Maryland, December8-10, 1992 No. 250 Rangeley, Thiam, Andersen, and Lyle, InternationalRiver Basin Organizationsin Sub-SaharanAfrica No. 251 Sharma, Rietbergen, Heimo, and Patel, A Strategyfor the ForestSector in Sub-SaharanAfrica No. 252 The World Bank/FAO/UNIDO/Industry Fertilizer Working Group, Worldand RegionalSupply and Demand Balancesfor Nitrogen,Phosphate, and Potash,1992/93-1998/99 No. 253 Jensen and Malter, ProtectedAgriculture: A GlobalReview No. 254 Frischtak, GovernanceCapacity and EconomicReform in DevelopingCountries No. 255 Mohan, editor, Bibliographyof Publications:Technical Department, Africa Region,luly 1987 to April 1994 No. 256 Campbell, Designand Operationof SmallholderIrrigation in South Asia No. 258 De Geyndt, Managing the Quality of HealthiCare in DevelopingCountries No. 259 Chaudry, Reid, and Malik, editors, Civil ServiceReform in Latin Americaand the Caribbean:Proceedings of a Conference No. 260 Humphrey, Payment Systems: Principles,Practice, and Improvements No. 261 Lynch, Provisionfor Childrenwith SpecialEducational Needs in the Asia Region No. 262 Lee and Bobadilla, HealthStatisticsfor the Americas No. 263 Le Moigne, Subramanian, Xie, and Giltner, editors, A Guide to the Formulationof WaterResources Strategy No. 264 Miller and Jones, Organicand Compost-BasedGrowing Media for TreeSeedling Nurseries No. 265 Viswanath, Building PartnershipsforPoverty Reduction: The ParticipatoryProject Planning Approach of the Women's EnterpriseManagement Training Outreach Program (WEMTOP) No. 266 Hill and Bender, Developingthe RegulatoryEnvi ronmentfor CompetitiveAgricultural Markets No. 267 Valdes and Schaeffer, Surveillanceof AgriculturalPrices and Trade:A Handbookforthe DominicanRepublic No. 268 Valdes and Schaeffer, Surveillanceof AgriculturalPrices and Trade:A HandbookforColombia No. 269 Scheierling, OvercomingAgricultural Pollution of Water:The Challengeof IntegratingAgricultural and EnvironmentalPolicies in the EuropeanUnion No. 270 Banerjee, Rehabilitationof DegradedForests in Asia No. 271 Ahmed, TechnologicalDevelopment and PollutionAbatement: A Study of How EnterprisesAre Finding Alternativesto Chlorofluorocarbons No. 272 Greaney and Kellaghan, Equity Issues in PublicExaminations in DevelopingCountries No. 273 Grimshaw and Helfer, editors, VetiverGrassfor Soil and WaterConservation, Land Rehabilitation,and Embankment Stabilization:A Collectionof Papersand NewslettersCompiled by the VetiverNetwork No. 274 Govindaraj, Murray, and Chellaraj, Health Expendituresin Latin America (List continues on the inside back cover) WORLD BANK TECHNICALPAPER NUMBER 317 Information Technology and National Trade Facilitation Guide to Best Practice Robert Schware Paul Kimberley The World Bank Washington, D.C. Copyright C 1995 The International Bank for Reconstruction and Development/THE WORLD BANK 1818 H Street, N.W. Washington, D.C. 20433, U.S.A. All rights reserved Manufactured in the United States of America First printing November 1995 TechnicalPapers are published to communicate the results of the Bank's work to the development com- munity with the least possible delay. The typescript of this paper therefore has not been prepared in accor- dance with the procedures appropriate to formal printed texts, and the World Bank accepts no responsibili- ty for errors. Some sources cited in this paper may be informal documents that are not readily available. The findings, interpretations, and conclusions expressed in this paper are entirely those of the author(s) and should not be attributed in any manner to the World Bank, to its affiliated organizations, or to members of its Board of Executive Directors or the countries they represent. The World Bank does not guarantee the accuracy of the data included in this publication and accepts no responsibility whatso- ever for any consequence of their use. The boundaries, colors, denominations, and other information shown on any map in this volume do not imply on the part of the World Bank Group any judgment on the legal status of any territory or the endorsement or acceptance of such boundaries. The material in this publication is copyrighted. Requests for permission to reproduce portions of it should be sent to the Office of the Publisher at the address shown in the copyright notice above. The World Bank encourages dissemination of its work and will normally give permission promptly and, when the reproduction is for noncommercial purposes, without asking a fee. Permission to copy por- tions for classroom use is granted through the Copyright Clearance Center, Inc., Suite 910, 222 Rosewood Drive, Danvers, Massachusetts 01923,U.S.A. The complete backlist of publications from the World Bank is shown in the annual Index of Publications,which contains an alphabetical title list (with full ordering information) and indexes of sub- jects, authors, and countries and regions. The latest edition is available free of charge from the Distribution Unit, Office of the Publisher, The World Bank, 1818 H Street, N.W., Washington, D.C. 20433, U.S.A., or from Publications, The World Bank, 66, avenue d'Iena, 75116Paris, France. ISSN: 0253-7494 ISBN:0-8213-3534-0 Robert Schware is Senior Informatics Specialist for The World Bank, Finance and Private Sector Development Vice Presidency, Industry and Energy Department, Telecommunications and Informatics Division. Paul Kimberley is an electronic commerce consultant to the division and principal of Paul Kimberley and Associates (PKA). Comments on this document may be directed to: Robert Schware, Senior Informatics Specialist, Telecommunications and Informatics Division, Industry and Energy Department, The World Bank, 1818 H Street NW, Washington, DC 20433, USA, Tel: (+1 202) 458-0794, Fax: (+1 202) 477-3379, Internet: [email protected] Contents Foreword v Costs of Installing EDI 22 Abstract vii The Advocacy and Implementation Model 23 Acknowledgments ix Cost Summary for a 20-Partner Grouping 25 Abbreviations and Acronyms xi Advocay and Implementation: the Last Word 26 A Partner's Internal EDI Costs 26 1 LEGAL AND REGULATORY REQUIREMENTS 1 The Dilemma 26 Alternatives to EDI 27 The Legality of EDI 1 Intermediaries 27 Agreements 1 Low Tech Infrastructure 28 International Law 2 Broader Technology Initiatives 28 Contracts 2 The Hypothesis 28 Evidence 3 The Model 29 Data Disclosure 3 Not So Low Tech EDI 32 Legislation 4 Voice Processing: Telephone Technology 33 Conclusion 4 Scanning and Image Technologies 33 Other Technologies 35 2 SKILLS AND TECHNOLOGY Conclusion 36 INFRASTRUCTURE 5 ANNEX 1: THE CASE STUDIES 37 Technology and Skills Inventory 5 Key Technology and Support Elements 5 Methodology 37 Best Practice 6 Argentina 37 Barriers to Use and Participation 7 Current Status 39 Discussion 40 3 LOCAL BUSINESS CONSIDERATIONS 9 Australia 40 Trade Facilitation 41 Government and Local Business Practices 9 Tradegate 41 Culture and Religion 10 The Organization 41 External Influences 10 The User Community 42 Role of Government 42 4 INVESTMENT COSTS AND BENEFITS 11 VAN Interconnect 43 Vendors 43 Costs and Benefits 11 Industry Associations 44 Cost and Revenue Categories 13 Assessing Tradegate 44 Three Typical Models 14 Lessons from the Australian Experience 44 From Different Perspectives 16 Brazil 45 Summary 18 Current Status 46 Conclusion 19 Discussion 47 Chile 47 5 TECHNOLOGY AND COST OPTIONS 20 Current Status 48 EDI's Brick Wall 20 Discussion 49 Number of EDI users and Hong Kong 49 Message Volumes in Australia 20 Tradelink 50 fii Summary 51 EDI Gateway and Service Functionality 75 Hungary 52 Vendors 75 Trade Facilitation 53 Other Media 76 Current Status 53 A Model for a Gateway-Rollout Service 77 Discussion 54 Summary 77 Malaysia 55 Current Status 55 ANNEX 4: SAMPLE TERMS OF REFERENCE FOR Experience 56 ELECTRONIC TRADE FACILITATION SYSTEM, Discussion 56 IMPLEMENTATION, SUPERVISION, AND Mexico 57 MID-TERM REVIEW 78 Current Status 58 Discussion 58 Background 78 New Zealand
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