Article - N - Connecting Logistics Networks Globally Via The Un Single Window Concept
Article - N - Connecting Logistics Networks Globally Via The Un Single Window Concept
Michael Linke
In recent decades, the world has become increasingly globalized. Countries today are
more connected than ever and rely heavily upon international trade of goods and ser-
vices in order to function in an appropriate manner. Advanced communication net-
works seem to play an important role in this acceleration (Ardalan 2010). The results of
international trade seem to be more positive than negative and evidence suggests that it
has led to economic prosperity in many countries, subsequently resulting in an im-
proved quality of life for its citizens which is stated also in recent relevant studies in
that field (Sharmin and Rayhan 2011). Nonetheless other voices point out that poten-
tially backsides, especially with respect to inequality could still exist (Baumann 2011).
The United States, China and the European Union's 27 member states together account
for billions of dollars in trade each year. According to the World Trade Organization,
the EU exported 1.8 trillion USD worth of merchandise and imported nearly 2.0 trillion
USD in 2010.
As trade between countries becomes a more integral part of the world economy, the
need for fast and efficient methods of customs and security processes grows ever more
crucial. While no one country operates under the exact same processes or policies, very
few have streamlined practices when it comes to trade and customs regulations.
It should be mentioned that globalization seems to have an additional impact, especially
in the sovereignty domain of certain countries or economic unions, which might have
derived from that, also an impact of customs regulations as such (Grinin 2012). In fact,
in many countries, businesses who wish to involve themselves in international trade are
required to submit documentation (manual, automated or a mix) to several regulatory
bodies in order to legally conduct trade. This range of documentation, paperwork and
procedures depends on a number of factors including the type of goods or merchandise
Journal of Globalization Studies, Vol. 3 No. 2, November 2012 139–154
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involved, their value and destination country. The result is what many businesses view
as an inhibitive and stifling system that is overly complicated and slows the process of
trade.
aimed at establishing a ‘single window through which the data required by government
agencies for international trade transactions may be submitted’ (ITDS 2012). By im-
plementing a secure government-wide system to collect, store, integrate and dissemi-
nate information related to trade, the ITDS hopes to reduce public and private sector
overhead, comply more easily with a number of government requirements, and improve
national security allowing multiple agencies to have access to pertinent information
(Ibid.).
In the United States there seem to be more than a hundred agencies who require ac-
cess to trade documentation (Ibid.). The ITDS has the monumental task of setting up a
system whereby members of the trade and transportation communities are required to
submit relevant documentation through a secure EDI only once, leaving the single win-
dow to take care of the rest. Much like VIPPROG in Schiphol Airport, the goal is to
have the single window perform a security and risk assessment, then forward on the
findings to any government agencies who are qualified to further assess compliance or
security risk.
Still in the process of development, it is hoped that the country will benefit from
this new system in a number of ways. Though providing efficient means of transporting
goods across the country's boundaries will no doubt reduce overheads for both the gov-
ernment and private businesses, one of the most important goals is to increase govern-
ment compliance and security. Storing and handling all data under a central hub or sin-
gle window will facilitate the sharing of information between government agencies, al-
lowing them to collaborate on security and compliance efforts.
throughout the system, adding security features to a single window more easily exe-
cuted.
Single windows designed through the SWIF benefit from having data, business
processes and documentation in a standardized format. This clear, hierarchical structure
reduces the possibilities of data security issues that can arise from having a group of
separate legacy systems. Furthermore, the adoption of security standards such as ISO
28000 and BS 7799 (as recommended by UNECE) are made easier due to the simpli-
fied architecture created through SWIF.
On the user-end, countries which already employ a Single Window system use a num-
ber of techniques to secure their application(s). Amongst the most common security im-
plementations are a PIN/Password system, Public Key Infrastructure (PKI), Authentica-
tion Tokens, Biometrics and Smartcards (Choi 2011). Additionally, in most countries
they protect raw data through an additional level of security incorporated during the
implementation of the architecture. As a result, other government agencies are not able
to access any raw data. Instead, they rely upon the single window to provide them with
the processed information, thus reducing the exposure of raw information.
Of course, these security features are all additional to the more secure borders cre-
ated by the single window itself. The window is responsible for receiving all the data
and information associated with customs and trades, which should provide it will all the
tools necessary to assess risk (ITDS, Centre for Trade Facilitation and Electronic Busi-
ness). This is in stark opposition to many existing border control methods when several
departments are responsible for different pieces of information, making risk assess-
ments more difficult.
Conclusion
The Single Window concept as proposed by the UNECE is beneficial to the world
economy and security in a number of ways. Its structure, mainly drawn from an existing
approach to enterprise architecture, is aimed at simplifying customs procedures while at
the same time improving security techniques. No doubt, a streamlined method of inter-
national trade requires less time to bring imported goods to the market, which will be
very much appreciated by business.
Case studies performed on the countries already benefiting from a single window
system have received overwhelmingly positive reviews from the private sector.
The single windows not only decrease the amount of time needed to clear goods, but
also saves business money by reducing overheads. From a public sector perspective, the
ability to update duties and tariffs through a single window has been shown in countries
such as Mauritius to increase revenue from foreign trade. Governments are also on the
receiving end of steep overhead reductions, which is typical for organizations convert-
ing from legacy to enterprise architecture systems. Citizens, too, have much to gain
from the single window as the ripple effects of this implementation are widespread.
Mauritius is a prime example of a country which has transformed itself from a localized
agricultural economy into a significant member of the world trading community.
Linke • Connecting Logistics Networks Globally via the UN Single Window Concept 153
The UN Single Window concept could therefore be a next logical step in trade
globalization. It will help facilitate international trade, enable governments to give
businesses an opportunity to reduce their overheads and simplify international
shipments while at the same time keeping borders secure and documentation updated
and in check.
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