Improving Small Package E-Trade for SMEs

Improving Small Package E-Trade for SMEs (SeT4SME) is a two-year project (2021-2022) for the Alliance, implemented by Swisscontact in collaboration with the General Department of Customs and Excise of Cambodia (or GDCE). This project aims to support Cambodia in improving its trade performance and driving inclusive growth in the country by enhancing trade facilitation implementation with more transparency in trade practices and reduced time and cost of cross-border e-trade.
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Phnom Penh
11.5563738
104.9282099
Project duration
2021 - 2022

The Project

Workstream 1: Institutional Capacity Support for Electronic Advanced Data (EAD) Implementation
This workstream aims to develop a fully operational EAD by interfacing and integration of GDCE's ASYCUDAWorld and Cambodia Post's CDS. The workstream features complementary interventions such as awareness-raising, capacity development, and PR support, etc. before and after the deployment of EAD. This workstream also envisages the coordination and capacity development support to the Cambodia Post for expanding strategic partnerships with other operators to enhance its mail and logistics capacity for the small package delivery.

Workstream 2: e-Trade Portal Development and Promotion
This workstream aims to enhance Cambodian SMEs' presence online and their engagement in cross-border e-trade, particularly the exports of their products in small packages, taking full advantage of the enhanced postal logistic capacity and expedited customs clearance procedures of postal items supported under Workstream 1.  It also aims to create ‘champions’ and ‘early adopters’ of cross-border e-commerce among SMEs through collaborative activities with SME associations including CWEA, FASMEC, YEAC, etc. This workstream support is expected to enable SMEs to take full advantage of the technologies and the e-trade portal – to be established under this workstream. The project will build up needed capacity of CWEA to become a one-stop service providers providing trade-related information and cross-border e-commerce portal solution to their members and enable them to scale up the service to benefit other Cambodian SMEs.  

Objectives

The objective of the project, Improving Small Package e-Trade for SMEs (SeT4SME), is two folds;

  1. Contribute to Cambodia's undertaking of digital trade facilitation to enhance the enabling environment for cross-border trade and progress its commitment under World Trade Organization’s Trade Facilitation Agreement (WTO TFA), specifically Art. 7.1 on Pre-Arrival Processing and Art. 8.2 on Border Agency Cooperation – both of which are under Category C, which implies the need for technical assistance. It also contributes to further enhancing Risk Management and the availability of information through the internet which are currently Category A measures.
  2. Strengthen Cambodia’s e-Trade environment for SMEs, by establishing an e-trade portal and helping Cambodia’s SMEs take full advantage of an improved customs clearance process of postal shipments and postal service, resulting in time and cost reductions for their small package exports and imports. This support coincides with the recent efforts of the Royal Government of Cambodia to strengthen the engagement of SMEs in cross-border trade, as highlighted in Cambodia's Trade and Integration Strategy Update (CTISU) 2019-2023. Chapter 2 of CTISU calls on the private sector to ‘identify export skills needs of Cambodian SMEs in such areas as market research, export marketing strategy, sales development, use of electronic markets, use of social media, etc.’ and then implement training programs on these skills.

Development Plan

  • Raise awareness on EAD
  • Develop and deploy EAD interface
  • Provide relevant training and complementary support on capacity development
  • Capacity development of SMEs
  • Raise awareness on cross border e commerce opportunities and procedures
  • Develop and deploy e-trade portal

Expected Results

  1. SMEs and Women Owned Businesses (WOB) benefit from uninterrupted trade because of EAD compliance.
  2. Time reduced in customs clearance processing in Cambodia for outbound small packages.
  3. Contributing to enhancing the capability of customs for pre-arrival risk processing, potentially leading to a reduction in customs clearance time for inbound small packages.
  4. Allowing for pre-arrival processing of customs information in destination country, potentially speeding up the clearance process in country of destination.
  5. Average time and cost savings for the private sector in Cambodia for export documentary compliance.

Development Impact

SDG 5: Gender Equality
5.b Enhance the use of enabling technology, in particular information and communications technology, to promote the empowerment of women

SDG 8: Decent Work and Economic Growth
8.3: Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation, and encourage the formalization and growth of micro-, small- and medium-sized enterprises, including through access to financial services

SDG 9: Industry, Innovation and Infrastructure
9.b: Support domestic technology development, research and innovation in developing countries, including by ensuring a conducive policy environment for, inter alia, industrial diversification and value addition to commodities

SDG 17: Global Partnerships
17.11: Significantly increase the exports of developing countries, in particular with a view to doubling the least developed countries’ share of global exports by 2020
17.16: Enhance the global partnership for sustainable development
17.17: Encourage effective partnerships

Partners