Understanding the Digital Economy:

What Is It and How Can It Transform Asia?

21-22 February 2018

New Delhi, India

Securing the digital economy – focus on trust, privacy and transparency

Tahseen A. Khan
UNNExT Advisory Committee Member and Vice-chair of UN/CEFACT
takhan@meity.gov.in

The views expressed in this presentation are the views of the author and do not necessarily reflect the views or policies of the Asian
Development Bank Institute (ADBI), the Asian Development Bank (ADB), its Board of Directors, or the governments they represent. ADBI does
not guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequences of their use. Terminology used
may not necessarily be consistent with ADB official terms.
Buy-Ship-Pay Model
 Buy Ship Pay
Buy-Ship-Pay Model
Prepare Prepare
Export Transport Import
for Export for Import
BUY PAY
• Agree • Book • Process • Collect • Obtain • Process • Request
Contract Transport Goods Goods Import Import Payment
(Payment Declaration License etc. Declaration (Invoice)
terms and • Insure Cargo • Transport
Delivery • Process and Deliver • Book • Progress • Order
Terms…) • Make Cargo Goods Transport Cargo Payment
Customs Declaration Declaration
• Place, Declaration • Provide • Establish • Execute
confirm or • Apply Waybills, Credit • Check Payment
Revise Order • Obtain Security Goods Security
Export Credit Checks Receipts, • Issue
Guarantee Status • Release Statement
• Clear Goods Reports etc. Goods
• Obtain
Export • Provide
License etc. Cargo
Declaration

• Advise
Dispatch
Security and Legal Issues
 1. Data Protection
Security and Legal Issues
• The participating parties, especially exporters and importers are
always worried about unauthorized access of their data which is also
sometime their trade secret.

• Laws provide that consent of the data subject is required before

being disclosed or used.
 1. Data Protection
Security and Legal Issues
• The participating parties, especially exporters and importers are
always worried about unauthorized access of their data which is also
sometime their trade secret.

• Laws provide that consent of the data subject is required before

being disclosed or used.

2. Confidentiality & Privacy

• Laws protect the confidentiality of transactions and the privacy of

personal data.
Security and Legal Issues
3. Information Security

• To enforce laws imposing appropriate standards of information

security.

• The laws should not prohibit/restrict cross-border data flow.

Security and Legal Issues
3. Information Security

• To enforce laws imposing appropriate standards of information

security.

• The laws should not prohibit/restrict cross-border data flow.

4. Accessing and sharing information

• Clear processes and policies for the sharing of data between

government agencies within the country and also outside the
country.
 5. Data Accuracy and Integrity
Security and Legal Issues
• Laws and regulations requiring data to be accurately submitted and
processed.

• Laws need to impose obligations on persons submitting such

information and require processes to ensure correct attribution.

• Laws need to support to preserve the integrity of data which is

stored.
 5. Data Accuracy and Integrity
Security and Legal Issues
• Laws and regulations requiring data to be accurately submitted and
processed.

• Laws need to impose obligations on persons submitting such

information and require processes to ensure correct attribution.

• Laws need to support to preserve the integrity of data which is

stored.

6. Data Retention and Electronic Archiving

• Laws and regulations which relate to both minimum data retention

periods (for accountability) and maximum retention periods (for
data protection).
 7. Liabilities Issues and Dispute Settlement
Security and Legal Issues
• Liability and dispute settlement in national context is easy but it
needs appropriate fresh look for cross border environment.

• Need for clarity if governments undertakes or do not undertake

liability in relation to its role in cross-border paperless transactions.

• Paperless trade service providers undertaking liability in relation to

issues related to their role in cross-border paperless transactions.

• Liability, in this context includes liability for inaccurate data, loss of

data, delay, programmer error and machine error.

• Clearly establish liability between parties in cross border electronic

trade transactions.
Security and Legal Issues
8. Intellectual Property Rights

• IPR and database ownership laws clearly define who owns the data
in a single window and how the IPR and database can be dealt with.
Security and Legal Issues
8. Intellectual Property Rights

• IPR and database ownership laws clearly define who owns the data
in a single window and how the IPR and database can be dealt with.

9. e-Payment Laws

• Banking/payments laws accept electronic payments and legal and

regulatory framework exist to process electronic payments.
Security and Legal Issues
10. Admissibility of Electronic Evidence

• Equal treatment for paper and electronic document with no

discrimination.

• cross border trade environment it is necessary that electronic

evidence collected overseas be admissible in judicial proceedings

• Bilateral mutual recognition

• Multilateral arrangements
DIGITAL SIGNING AND
VERIFICATION
DIGITAL SIGNING AND
VERIFICATION
Mutual Recognition
 INDIA Country
Mutual Recognition
Regulator Regulator
Mutual Recognition

PKI Framework PKI Framework

Cross Certification or Cross Recognition
Root CA Root CA

CA CA CA CA CA CA

Subscriber Subscriber Subscriber Subscriber Subscriber Subscriber

Subscriber Subscriber Subscriber Subscriber Subscriber Subscriber
Subscriber Subscriber Subscriber Subscriber Subscriber Subscriber

Mutual Acceptance of certificates

eSign Online Electronic Signature
Service
eSign Online Electronic Signature
Service
eProcurement
 https://eprocure.gov.in
Used by – 27 States & Union Territories and over 350 Central Government
Procuring Entities including major Public Sector Units , PAN India.
eProcurement

 No. of eTenders in January, 2018 - 1,08,568.

 Tenders this FY is 8,64,440 and total value worth ₹ 15,22,0128 Million.
 28,49,862 e-Tenders processed worth ₹ 42,46,5350 Million since inception.

Last 3 Electronic Value of Tenders % Increase over Average tenders

Year’s Tenders ( ₹ In Million.) previous year in a Month
2016-17 6,81,971 8,90,9688 32.72% 56,831
2015-16 5,13,842 6,92,1778 66.37% 42,820
2014-15 3,08,854 4,77,5172 39.98% 25,737
Govt. eProcurement System of National Informatics Centre (GePNIC), MeitY, India
 Features - Govt eProcurement System of NIC , GePNIC ©
Functional Security
• Issue of RFP /RFQ/EOI/Global tenders
with Multi Currency/ Open /Single
/Limited / Tender Cum Auction (eRA) /
eProcurement
Rate Contract
• Item wise evaluation, Configurable
Technical Parameter sheet
• Auto Tendering Process with NO manual
intervention
• Quality and Cost Based Selection
• Online Payment and Auto Refund
• Forward and Reverse Auction
• Vendor Management
• Automatic Comparative charts
• Complete transparency thru Tender Status
in Public Domain
• SMS / Mail alerts /Mobile App
Govt. eProcurement System of National Informatics Centre (GePNIC), MeitY, India
• Two factor authentication
• Bid encryption (Technical & Financial) at
client end
• Encryption using PKI based Technology
• Digital Signing of all documents
• Data Secured on transit using SSL
• Secured Hosting
• Role based access system
• Log shipping, NTP configured
• 24 X 7 availability of the system
• Visibility of each other’s offers for
participating Bidders
• Periodic audits by STQC
eTrade
eTrade
 • In Asia and the Pacific, the overall average implementation rate of
paperless trade measures stands at 50 per cent in 2017, compared with
Current state of preparedness 46.5 per cent in 2015. The rate is highest in East and South-East Asia and
lowest in South Asia and the Pacific Islands. In South and Southwest Asia,
India leads in implementation, followed by Turkey, Pakistan and Sri Lanka

Implementation of Trade Facilitation and Paperless Trade Measures in

Asia and the Pacific Economies (2017)
 Implementation of “paperless trade” measures in various regions globally
Current state of preparedness
 Implementation of “paperless trade” measures: South and South-West

Current state of preparedness

Asian average
 Implementation of “cross-border paperless trade” measures: South and

Current state of preparedness

South-West Asian average
 Implementation of “paperless trade” measures in various regions globally
Current state of preparedness

Source: ESCAP, based on UN Global Survey on Trade Facilitation and Paperless Trade Implementation 2017
Current state of preparedness

Moving up the trade

facilitation ladder
towards seamless
international supply
chains

Source: ESCAP, based on UN Global Survey on Trade

Facilitation and Paperless Trade Implementation
2017
Issues for Consideration
Issues for Consideration
1. Lack of Institutional and Governance Framework

2. Lack of Process reengineering, Data Harmonization and Standardization

3. Use of common International Standards

4. Harmonization of different Legal Framework

5. Capacity gaps among the parties

6. Mutual recognition among member states

 THANK YOU
Tahseen A. Khan
UNNEXT Advisory Committee Member and Vice-chair of UN/CEFACT
takhan@meity.gov.in