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TheshadedareasofthemapindicateESCAPMembersandAssociateMembers.*

TheEconomicandSocialCommissionforAsiaandthePacific(ESCAP)isthemostinclusiveintergovernmentalplatformintheAsia-Pacificregion.TheCommissionpromotescooperationamongits53memberStatesand9associatemembersinpursuitofsolutionstosustainabledevelopmentchallenges.ESCAPisoneofthefiveregionalcommissionsoftheUnitedNations.

TheESCAPsecretariatsupportsinclusive,resilientandsustainabledevelopmentintheregionbygeneratingaction-orientedknowledge,andbyprovidingtechnicalassistanceandcapacity-buildingservicesinsupportofnationaldevelopmentobjectives,regionalagreementsandtheimplementationofthe2030AgendaforSustainableDevelopment.

*ThedesignationsemployedandthepresentationofmaterialonthismapdonotimplytheexpressionofanyopinionwhatsoeveronthepartoftheSecretariatoftheUnitedNationsconcerningthelegalstatusofanycountry,territory,cityorareaofitsauthorities,orconcerningthedelimitationofitsfrontiersorboundaries.

iv

UnderstandingEveryStepofCross-BorderE-Commerce:ExportingElectronicProductsfromChinatoMalaysia

Copyright?ESCAP2024Allrightsreserved.

Disclaimers

Allrightsreserved.Theopinions,FiguresandestimatessetforthinthispublicationaretheresponsibilityoftheauthorsandshouldnotbeconsideredasreflectingtheviewsofcarryingtheendorsementoftheUnitedNations.Anyerrorsaretheresponsibilityoftheauthors.

Mentionoffirms’namesandcommercialproductsdoesnotimplytheendorsementoftheUnitedNations.

ThedesignationsemployedandthepresentationofthematerialinthispublicationdonotimplytheexpressionofanyopinionwhatsoeveronthepartoftheSecretariatoftheUnitedNationsconcerningthelegalstatusofanycountry,territory,cityorarea,orofitsauthorities,orconcerningthedelimitationofitsfrontiersorboundaries.Wherethedesignation“country”or“area”appears,itcoverscountries,territories,citiesorareas.

Referencestodollars($)aretoUnitedStatesdollarsunlessotherwisestated.

Bibliographicalandotherreferenceshave,whereverpossible,beenverified.TheUnitedNationsbearnoresponsibilityfortheavailabilityorfunctioningofURLs.

Allthematerialinthispublicationmaybefreelyquotedorreprinted,butacknowledgementisrequired,andacopyofthepublicationcontainingthequotationofreprintshouldbesenttotheUnitedNationsEconomicandSocialCommissionforAsiaandthePacific(ESCAP)PublicationsOffice.

Theuseofthispublicationforanycommercialpurposes,includingresale,isprohibitedunlesspermissionisfirstobtainedfromESCAP.Requestsforpermissionshouldstatethepurposeandtheextentofreproduction.

Thispublicationhasbeenissuedwithoutformalediting.

v

Acknowledgements

Mr.TengfeiWang,EconomicAffairsOfficerfromtheUnitedNationsEconomicandSocialCommissionforAsiaandthePacific(ESCAP)supervisedthework.Mr.JiangWang,Professor,UniversityofInternationalBusinessandEconomics,China,collecteddataandcarriedoutthestudy.Mr.YannDuval,Chief,TradePolicyandFacilitationSectionofESCAPprovidedgeneralguidance.Mr.ElliotCarpenter,duringhisinternship,providedsearchsupporttothestudy.Furthermore,heeditedandformattedthereport.Ms.KayanLeealsoprovidedusefulinputtothisreportduringherinternshipwithESCAP.Ms.NatnichaSutthivanaprovidedusefuladviceonformattingthisreport.

ThereportwaspartofimplementingaFEALACprojecttitled"SupportthestrengtheningofpoliciestomonitorandpromotetheparticipationofMSMEsincross-bordergoodsandservicesine-commerceforaninclusiveandsustainablepandemicresponseandrecoveryinEastAsiaandLatinAmerica".

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ExecutiveSummary

Cross-bordere-commerceallowssmall-andmedium-sizedenterprises(SMEs)worldwidetodirectlyselltheirproductstooverseasconsumersthroughcross-bordere-commerceplatforms.ThishasopeneduptradeopportunitiesforSMEsglobally.However,theproceduresforcross-bordere-commercecanbecomplicated,andthereisascarcityofexistingstudiesdocumentingsuchprocedures.

Togaindeeperinsightsintotheintricaciesofcross-bordere-commercetradeprocedures,thisreportdelvesintotheprocessesinvolvedinexportingconsumerelectronicproductsfromChinatoMalaysia,primarilyunderabusiness-to-consumer(B2C)model.Adetailedanalysisofeachprocedureofcross-bordere-commerceusingBusinessProcessAnalysis(BPA)revealsthat12distinctproceduresand13stakeholdersareintegraltotheprocess.Whilethiscasestudymaynotcoverallpotentialscenariosofcross-bordere-commerce,iteffectivelyillustratestheinherentcomplexityofsuchtransactions.Thekeyfindingsofthisreportareoutlinedbelow.

Gettingcertifiedproductqualificationlocallyinthecountrywheregoodsaresoldisachallengingtaskforsellersofcross-bordere-commerce.Thisisbecauseitinvolvesacomplexproductcertificationprocess.Inparticular,sellersarenotfamiliarwiththeproductcertificationprocessintheimportingcountry.Evenunderstandingwhichproductsneedtobecertifiedisnotalwaysunderstood.Thecertificationprocessmayalsobecarriedoutthroughthird-partyserviceproviders,whichmayinvolverelativelyexpensivecosts.Therefore,cross-bordere-commercesellersshouldmakeadetaileddescriptionoftheirproducts.Incountrieswhereproductcertificationismorestringent,sellersmayhavetotakeacautiousapproachtosellingtheirproducts.Duetotheinabilitytoadapttothelocalmarketsituation,itislikelythatconsumerswillreturnproductsduetovariousproblemswithcustomsclearanceandtheuseofgoods.Theroleoftheplatformisalsocrucialintheprocessofproductlaunch.Thisisbecausetheplatformhasaccesstotimelyinformationaboutthevariouscomplianceissuesthatdifferenttypesofproductsmayencounterwhensoldlocallyintheimportingcountry.Platformscanhelpbuyerstounderstandinadvancethevariousissuesthatmayarisewhenimportingcertaingoodsfromoverseas,andcanbeequallyusefultosellersinmakingproperdescriptionsandcompliancecheckswhentheyputtheirproductsonstoreshelves.

Typically,cross-bordere-commercesalesareprimarilyfacilitatedthroughthecross-borderdeliveryofsmallpackagesofgoodstooverseasconsumers.Thisisverydifferentfromtraditionalinternationaltrade.Sellersshipanddelivergoodsoverseaswithdifferentarrangementsdependingonthesituation.However,smallparcelgoodssenttodifferentcountriesmayalsohavelargedifferencesinshippingcosts,andexpressdeliveryservicesmayalsovarygreatlyindifferentcountries.Therefore,whiletherearemanyinternationallogisticslineservicesfromChinatoMalaysia,andotherSoutheastAsiancountries.TheseinternationallogisticslinesspecializeinservingChinesecross-bordere-commercesellers,andthegoodsaredeliveredtologisticslinecarriers,whichcanbedelivereddirectlytooverseasfinalconsumers.Oftenthelogisticslinecarriersforcross-bordere-commercewillalsoundertaketwo-wayimportandexportcustomsclearanceandtariffadvances,andtheinternationaldedicatedlogisticscarrierscanalsointegratepostalandcourierservicesinboththeexporting

vii

andimportingcountries.Thecargoflowstepsandproceduresareaprocessthatcanbeoptimized,whichalsobringssomeconveniencetosellersandbuyers.Itissuggestedthatcross-bordere-commercesellerscanexploremoreefficientandoptimizedtradeprocessesandcargodeliverymethodshere.Governmenttraderegulatorsshouldalsosupporttheseoptimizationmethods.

Themainroleofcross-bordere-commerceplatformsistoprovideinformationaggregationandintegration.ConnectivityandinteroperabilitybetweentheinformationsystemsofChinesetraderegulatorsis,forthemostpart,unlikely.Thisisbecausetherearealwayssecurityconcernsandconflictinginterestsbetweenadministrations.Yettheintegrationofinformationontheplatformcanmaximizeprocessoptimizationandevenchangeandsavemanyprocessesthatarecomplexandrepetitive.Platformsforintegratedcross-bordere-commerceservicescanprovideintegrationofinformationbetweenvariousregulatoryauthorities,forexample,aone-timedatasubmissionthroughathird-partyserviceplatformcanfulfillthecompliancerequirementsofthecustomsoftheexportingcountry.Therefore,itisnotjustamatterofinnovatingbusinessandregulatoryprocesses,butofexploringnewbusinessmodelsandhowtorealizeaPPP(public-privatepartnership)modelofcooperation.EventhoughChinahasamorecomprehensiveapproachtocross-bordere-commercepolicyandregulation,attheoperationallevel,thereisstillaneedforsynergybetweenvariousdepartments,aswellasaneedformorestableoperationalprocesses.

Customsclearanceofsmallparcelshasalwaysbeenachallengingtaskforcustoms.Thenumberofparcelshipmentsislarge,anditisnoteasytoinspectallincominggoods.Thecostofgovernmentregulationisalsohigh.Althoughdedicatedlogisticsoperatorshaveoptimizedtheirinternationallogisticscostsrelativelywell,thetransparencyandcomplianceofimportcustomsclearanceforsmallparcelsstilldeservesfurtherdiscussion.ItisrecommendedthatCustomsadoptmoretechnologicalmeans,suchasadvancedcustomsclearance,electroniccustomsdeclaration,bigdata,andartificialintelligence.Itisalsorecommendedthatgovernmentsupervisionbeembeddedinthebusinessprocess.

Returnshavealwaysbeenachallengingandtroublesomeprocessforcross-bordere-commerce.Becausegoodsareinvolvedincross-borderdeliveryprocesses,somegoodsareinvolvedincustomstaxpaymentortaxrefundprocesses.Thisaspectofthereturnandexchangeprocesshasbeenexploredbycross-bordere-commerceenterprisesandcustoms.Atpresent,China'scross-bordere-commerceexportexpressreturnsrefundedgoodstotheseller'slocation.Goodsaregenerallyreturnedtolocalwarehousestowaitforprocessing.Inthefuture,countriesmaylookintotheissueonhowtooptimizetheregulatoryprocesstosupportthecross-borderreturnprocessofgoods.Thisrequiresbetterinformationsystemsandplatformsfortheinformationintegrationprocess.

However,itiscrucialtoemphasizethatBPAanalysisonlydepictsonespecificscenario(similartoasnapshot)ofthetradeprocess,andtheanalysismaynotbeapplicabletomultiplescenarios.Forexample,anewseller

viii

andaregularsellermayneedtogothroughdifferentprocedures.Somecross-bordere-commerceplatformsprovidecomprehensiveservices,includingpayment,logistics,warehousing,andimporting/exporting.However,someotherplatformsmayonlyprovidelimitedserviceandthesellerhastoarrangemoreservices,andgothroughdifferentprocedures.Furthermore,whentheBPAisconductedatdifferenttimes,therulesandregulationsforimportsandexportsmaychange,whichwillconsequentlychangetheresultsoftheBPAanalysis.

Inconclusion,navigatingtheintricaciesofcross-bordere-commercerequiresconcertedeffortsfrombothpublicandprivatestakeholders.Byaddressingregulatoryambiguities,fosteringcollaboration,andempoweringmarketparticipants,policymakerscanunlockthepotentialofcross-bordertrade,drivingeconomicgrowthandconsumerwelfare.

ix

Contents

ACKNOWLEDGEMENTS V

EXECUTIVESUMMARY VI

CHAPTER1.INTRODUCTION 1

1.1OBJECTIVEANDSCOPEOFTHESTUDY 1

1.2OVERVIEWOFBUSINESSPROCESSANALYSISFORTRADEFACILITATION 2

1.3TRADEBETWEENCHINAANDMALAYSIA 4

CHAPTER2.BUSINESSPROCESSANALYSIS 6

2.1PROCESSAREA1:BUY 8

2.1.1COREBUSINESSPROCESS:PLACEONTHEPLATFORM/SHOWCASEPRODUCTSONVIDEO 9

2.1.2COREBUSINESSPROCESS:CONCLUSIONOFTRANSACTIONSONTHEPLATFORM 13

2.2PROCESSAREA2:SHIP 17

2.2.1COREBUSINESSPROCESS:SELLERSREGISTERTOOPENASHOPONTHEPLATFORM 18

2.2.2COREBUSINESSPROCESS:SELLERSBINDCOLLECTIONACCOUNTSONTHEPLATFORM 21

2.2.3COREBUSINESSPROCESS:SELLERLISTINGPRODUCTINFORMATIONONTHEPLATFORM 24

2.2.4COREBUSINESSPROCESS:SELLERARRANGESDISPATCH 27

2.2.5COREBUSINESSPROCESS:SELLERCOMMISSIONTHEMALAYSIANSPECIALISEDLOGISTICSCOMPANYINEXPORT

CUSTOMSCLEARANCE 31

2.2.6COREBUSINESSPROCESS:SELLERCOMMISSIONTHEINTERNATIONALSPECIALISEDLOGISTICSCOMPANYIN

IMPORTCUSTOMSCLEARANCE 35

2.2.7COREBUSINESSPROCESS:SPECIALISEDLOGISTICSCOMPANYARRANGELOCALPOSTALORCOURIERTO

DELIVERGOODS 39

2.2.8COREBUSINESSPROCESS:SELLERARRANGESRETURNREFUND 43

2.3PROCESSAREA3:PAY 47

2.3.1COREBUSINESSPROCESS:BUYERCOMPLETINGPAYMENTONTHEPLATFORM 48

2.3.2COREBUSINESSPROCESS:BUYERCOMPLETESTHERECEIPTOFGOODSANDPAYSTHESELLER 53

2.4TIMEFORIMPORT 56

x

CHAPTER3.RECOMMENDATIONSANDCONCLUSION 58

ListofFigures

FIGURE1.1ASTEP-BY-STEPAPPROACHTOIMPLEMENTINGTRADEFACILITATIONMEASURES 2

FIGURE1.2BUY-SHIP-PAYMODEL 3

FIGURE1.3EXAMPLESOFUSE-CASEANDACTIVITYDIAGRAMS 4

FIGURE2.1USE-CASEDIAGRAMOFCHINA’SCROSS-BORDERE-COMMERCEEXPORTOFCONSUMERELECTRONIC

PRODUCTSTOMALAYSIA 7

FIGURE2.2“BUY”USE-CASEDIAGRAM 8

FIGURE2.3“PLACEONTHEPLATFORMSHOWCASEPRODUCTSONVIDEO”USE-CASEDIAGRAM 9

FIGURE2.4“PLACEONTHEPLATFORMSHOWCASEPRODUCTSONVIDEO”ACTIVITYDIAGRAM 10

FIGURE2.5“CONCLUSIONOFTRANSACTIONSONTHEPLATFORM”USE-CASEDIAGRAM 13

FIGURE2.6“CONCLUSIONOFTRANSACTIONSONTHEPLATFORM”ACTIVITYDIAGRAM 14

FIGURE2.7“SHIP”USE-CASEDIAGRAM 17

FIGURE2.8“SELLERSREGISTERTOOPENASHOPONTHEPLATFORM”USE-CASEDIAGRAM 18

FIGURE2.9“SELLERSREGISTERTOOPENASHOPONTHEPLATFORM”ACTIVITYDIAGRAM 19

FIGURE2.10“SELLERSBINDCOLLECTIONACCOUNTSONTHEPLATFORM”USE-CASEDIAGRAM 21

FIGURE2.11“SELLERSBINDCOLLECTIONACCOUNTSONTHEPLATFORM”ACTIVITYDIAGRAM 22

FIGURE2.12“SELLERLISTINGPRODUCTINFORMATIONONTHEPLATFORM”USE-CASEDIAGRAM 24

FIGURE2.13“SELLERLISTINGPRODUCTINFORMATIONONTHEPLATFORM”ACTIVITYDIAGRAM 25

FIGURE2.14“SELLERARRANGESDISPATCH”USE-CASEDIAGRAM 27

FIGURE2.15“SELLERARRANGESDISPATCH”ACTIVITYDIAGRAM 28

FIGURE2.16“SELLERCOMMISSIONTHEMALAYSIANSPECIALISEDLOGISTICSCOMPANYINEXPORTCUSTOMS

CLEARANCE”USE-CASEDIAGRAM 31

FIGURE2.17“SELLERCOMMISSIONTHEMALAYSIANSPECIALISEDLOGISTICSCOMPANYINEXPORTCUSTOMS

CLEARANCE”ACTIVITYDIAGRAM 32

FIGURE2.18“SELLERCOMMISSIONTHEINTERNATIONALSPECIALISEDLOGISTICSCOMPANYINIMPORTCUSTOMS

CLEARANCE”USE-CASEDIAGRAM 35

FIGURE2.19“SELLERCOMMISSIONTHEINTERNATIONALSPECIALISEDLOGISTICSCOMPANYINIMPORTCUSTOMS

CLEARANCE”ACTIVITYDIAGRAM 36

FIGURE2.20“SPECIALISEDLOGISTICSCOMPANYARRANGELOCALPOSTALORCOURIERTODELIVERGOODS”USE-CASE

DIAGRAM 39

FIGURE2.21“SPECIALISEDLOGISTICSCOMPANYARRANGELOCALPOSTALORCOURIERTODELIVERGOODS”ACTIVITY

DIAGRAM 40

FIGURE2.22“SELLERARRANGESRETURNREFUND”USE-CASEDIAGRAM 43

FIGURE2.23“SELLERARRANGESRETURNREFUND”ACTIVITYDIAGRAM 44

xi

ListofTables

TABLE1.1TOPIMPORTEDGOODSOFMALAYSIAFROMCHINA 4

TABLE2.1“PLACEONTHEPLATFORMSHOWCASEPRODUCTSONVIDEO”PROCESSDESCRIPTION 11

TABLE2.2“CONCLUSIONOFTRANSACTIONSONTHEPLATFORM”PROCESSDESCRIPTION 15

TABLE2.3“SELLERSREGISTERTOOPENASHOPONTHEPLATFORM”PROCESSDESCRIPTION 20

TABLE2.4“SELLERSBINDCOLLECTIONACCOUNTSONTHEPLATFORM”PROCESSDESCRIPTION 23

TABLE2.5“SELLERLISTINGPRODUCTINFORMATIONONTHEPLATFORM”PROCESSDESCRIPTION 26

TABLE2.6“SELLERARRANGESDISPATCH”PROCESSDESCRIPTION 29

TABLE2.7“SELLERCOMMISSIONTHEMALAYSIANSPECIALISEDLOGISTICSCOMPANYINEXPORTCUSTOMSCLEARANCE”

PROCESSDESCRIPTION 33

TABLE2.8“SELLERCOMMISSIONTHEINTERNATIONALSPECIALISEDLOGISTICSCOMPANYINIMPORTCUSTOMS

CLEARANCE”PROCESSDESCRIPTION 37

TABLE2.9“SPECIALISEDLOGISTICSCOMPANYARRANGELOCALPOSTALORCOURIERTODELIVERGOODS”PROCESS

DESCRIPTION 41

TABLE2.10“SELLERARRANGESRETURNREFUND”PROCESSDESCRIPTION 45

TABLE3.1DIAGNOSISOFBOTTLENECKSANDRECOMMENDATIONSFORSTREAMLININGTRADEPROCESSES 61

1

Chapter1.Introduction

1.1Objectiveandscopeofthestudy

Cross-bordere-commerceenablessmall-andmedium-sizedenterprises(SMEs)worldwidetodirectlymarkettheirproductstoconsumersabroadviaspecializedonlineplatforms,leadingtoadecentralizationoftrade.ThisdevelopmenthascreatednewopportunitiesforSMEsglobally.Nonetheless,thismodeofcommerceintroducessignificantregulatoryandtradeoptimizationhurdles.Areasrequiringdeeperexplorationincludetradeoptimization,regulatoryframeworks,andadherencetocompliancestandards.

Throughcross-bordere-commerce,transactionsbetweeninternationalbuyersandsellerscanbefinalizedonline.However,thelogisticsofcross-bordere-commercevarywidely,withsellerschoosingfromaplethoraofdeliverymethods.Optionsrangefromdispatchingsmallparcelsthroughstandardpostalservicestoemployingcouriercompaniesfordirectdeliveriestointernationalcustomers.Additionally,there'sthestrategyofaggregatingproductsinforeignwarehousesclosetothetargetmarketforlocaldistribution.Thechoiceoftransport—whetherair,sea,orland,oracombinationthereof—dependsontheproduct'svalue,furthercomplicatingthedeliveryprocessforsellersincross-bordere-commerce.

Suchtradefragmentationcomplicatestheregulatoryeffortsofgovernmentsovercross-bordere-commerce.Thesheervolumeofparcelsescalatesthechallenges,costs,andquestionstheefficiencyoftraderegulation.

Despitetheincreasingimportanceofcross-bordere-commerce,littleisknownabouteachprocedureforcompletingacross-bordere-commercetransaction.Accordingly,discussiononcross-bordere-commerceoftenlackempiricalevidence.Toovercomesuchagap,thisstudyreviewseachtradeprocedure,includingthekeyactorsinvolved.ThekeymethodologyisaBusinessProcessAnalysis(BPA)forTradeFacilitation,asexplainedinsection1.2.

2

1.2OverviewofBusinessProcessAnalysisforTradeFacilitation

BusinessProcessAnalysis(BPA)ofTradeProcedures,developedbyUNNExT1isaneffectivetoolforprovidingadetailedunderstandingofinternationaltradetransactions.Similartotheexistingstudies,theUNNExTBusinessProcessAnalysisGuidetoSimplifyTradeProcedures2wasusedtostudytheexportofiron,steel,andmetalproductsfromKazakhstantoEuropeancountries.

AccordingtoUN/CEFACT(seeFigure1.1)3,BPAisrecommendedasthefirststepbeforeundertakingothertradefacilitationmeasuresrelatedtothesimplification,harmonization,andautomationoftradeproceduresand

documents.

FIGURE1.1ASTEP-BY-STEPAPPROACHTOIMPLEMENTINGTRADEFACILITATIONMEASURES

E-SingleWindow&paperlesstrading

Cross-borderdataharmonization&exchange

Nationaldataharmonization

Documentssimplificationandalignment

Processsimplificationandharmonization

BusinessProcessAnalysis

Source:UNECE,2006,BackgroundPaperforUN/CEFACTSymposiumonSingleWindowCommonStandardsandInteroperability

1Moreinformationisavailableat

/tools/business_process.asp.

2Detailedinformationisavailableat<

/content/business-process-analysis-simplify-trade

-procedures-case-studies>

3UnitedNationsEconomicCommissionforEurope(UNECE),2006,BackgroundPaperforUN/CEFACTSymposiumonSingleWindowCommonStandardsandInteroperability.

3

ThetradeprocedurescoveredbyBPAlargelyfallinthecategoryofBuy-Ship-PaymodelrecommendedbyUN/CEFACT(asshowninFigure1.2).Insomecases,thescopecouldbeconfinedtoselectedprocessesaccordingtothepriorityofthecountry.

FIGURE1.2BUY-SHIP-PAYMODEL

Source:UN/CEFACTRecommendationNo.18illustratesasimplifiedviewoftheinternationalsupplychainin

theBuy-Ship-Paymodel.Themodelidentifiesthekeycommercial,logistical,regulatoryandpayment

proceduresinvolvedintheinternationalsupplychainandprovidesanoverviewoftheinformationexchanged

betweenthepartiesthroughoutitsvarioussteps4.

OneofthekeyfeaturesoftheUNNExTBusinessProcessAnalysisGuidetoSimplifyTradeProceduresistheintroductionoftheUnifiedModellingLanguage(UML)asastandardwaytographicallyrepresentthevariousproceduresinvolvedinthetradeprocess(Figure1.3).Thiscommonstandardisessentialforprovidingasystematicdescriptionandcommonlanguageofaprocedurethatcanbeunderstoodbyallstakeholdersinvolvedininternationaltradetransactions,bothdomesticandforeign.

4

/fileadmin/DAM/cefact/recommendations/rec18/Rec18_pub_2002_ecetr271.pdf

4

Figure1.3EXAMPLESOFUSE-CASEANDACTIVITYDIAGRAMS

UMLUse-CaseDiagram

UMLActivityDiagram

UMLUse-CaseandActivityDiagramsare

usedtovisualizethecapturedknowledgeofthebusinessprocesses.TheUse-Case

Diagramillustrateshigh-levelbusiness

processesandtheactorsassociatedwitheachofthem.Itservesasaframeof

referenceforfurtherelaborationofbusiness

processmodellingwork.TheActivity

Diagram,ontheotherhand,describes

activities,inputs,andoutputsassociatedwitheachbusinessprocesslistedintheUse-CaseDiagram.

Source:

/pub/tipub2558new.asp

1.3TradebetweenChinaandMalaysia

ImportsfromChinaaccountfor21.33%oftotalimportsofMalaysia.In2022,Malaysiaimported$294.35billion

fromtheworld,withtopsourcesbeing:China(21.33%),Singapore(10.46%)andOtherAsia,notelsewherespecified(n.e.c.)(8.18%).Therefore,valuedat$62.78billion,Chinaisthetopimportsource(bytradevalue)forMalaysia.

AsshowninTable1.1,in2022,ChinaprimarilyexportedintermediategoodstoMalaysia,specificallycomputerparts:

TABLE1.1TOPIMPORTEDGOODSOFMALAYSIAFROMCHINA

HSCode

Commodity

Value(billion$)

271019

Petroleumoilsandoilsfrombituminousminerals;notlightoilsandpreparations

2.80

854231

Electronicintegratedcircuits:processorsandcontrollers

2.80

854232

Electronicintegratedcircuits;memories

2.74

854239

Electronicintegratedcircuits;n.e.c.inheadingno.8542

2.24

999999

Commoditiesnotspecifiedaccordingtokind

1.69

853400

Circuits;printed

1.67

271012

Petroleumoilsandoilsfrombituminousminerals;lightoilsandpreparations

1.38

847130

Automaticdataprocessingmachines

1.34

381800

Chemicalelements;dopedforuseinelectronics

1.34

854290

Partsofelectronicintegratedcircuits

1.31

Source:

https://tina.trade/app/dashboard/CHN-MYS/current-trade

5

ChineseexportstoMalaysiaarecoveredbyregionalagreementsnegotiatedunderASEAN,whichhasafewnotableagreementswithChina.

TheFrameworkAgreementonComprehensiveEconomicCooperation,signedin2002,formedthefoundationforfurthertradeagreementsbetweenbothparties.Notably,theASEAN-ChinaFreeTradeArea(ACFTA),

signedin2010,andisthelargestfreetradeareaintheworld(combinedmarketof1.94billionpeoplesandGDPof$9.5trillion,2011).TheACFTAcoversthreespecificagreements:1)ASEAN-ChinaTradeinGoodsAgreement,2)AgreementonTradeinServices,and3)InvestmentAgreement.

In2014,bothpartiesagreedtoupgradetheACFTA,whichwasfullyupgradedin2019withnewamendmentsrevisingRulesofOrigin,andspecificcommitmentstofacilitateinvestment,andreducetariff-andnon-tariff

barrierstotrade.

6

Chapter2.Businessprocessanalysis

IntheintricateprocessofexportingconsumerelectronicproductsfromChinatoMalaysia,asshowninFigure2.1,atotalofthirteenactorsplaypivotalroles.Yet,itiscrucialtoemphasizethattheBusinessProcessAnalysis(BPA)mightonlyrepresentasingularperspectiveofthiscomplexprocedure.Significantly,thetradingprotocolscanvarygreatlydependingonvariousfactors,suchasthedistinctionbetweenanovicesellerandanexperiencedone,orthedifferencesintheoperationalmodelsofvariouse-commerceplatforms.Whilesomeplatformsofferanall-encompassingsuiteofservices,includingpaymentprocessing,logistics,customsfacilitation,andwarehousing,othersmightonlyfurnishthemostfundamentalservices.

GraspingthesevariancesisessentialforacomprehensiveunderstandingoftheadvantagesandlimitationsinherentinapplyingBPA.BPAessentiallyoffersasnapshot,capturingthenuancesofaspecificscenarioataparticularmomentintime.Consequently,whenBPAanalysesareconductedatdifferenttimesorunderdifferentcircumstances,theoutcomesarelikelytoexhibitvariations.ThisdynamismunderscorestheimportanceofrecognizingBPA'sutilityasatoolforunderstandingspecificinstancesratherthanaone-size-fits-allsolutionfortheentirespectrumoftradingactivitiesbetweenChinaandMalaysia.

7

FIGURE2.1USE-CASEDIAGRAMOFCHINA’SCROSS-BORDERE-COMMERCEEXPORTOFCONSUMERELECTRONICPRODUCTSTOMALAYSIA

8

2.1ProcessArea1:Buy

FIGURE2.2“BUY”USE-CASEDIAGRAM

Inthecontextof"China'scross-bordere-commerceexportsofconsumerelectronicproductstoMalaysia",the"Buy"processareaincludestwocorebusinessprocesses:"Placeontheplatform/Showcaseproductsonvideo"and"ConclusionofTransactionsonthePlatform",whichshowstheinteractionbetweenbuyersandsellersbasedonthethird-partytradingplatform.

9

2.1.1Corebusinessprocess1-1:Placeonthe

platform/Showcaseproductsonvideo

FIGURE2.3“PLACEONTHEPLATFORMSHOWCASEPRODUCTSONVIDEO”USE-CASEDIAGRAM

"Placeontheplatform/Showcaseproductsonvideo"isoneofthecorebusinessprocessesinthe"Buy"processarea.TheusecasediagramshowninFigure2.3indicatesthatthecorebusinessprocessrequiresthefollowingparticipants:

nSeller

nBuyer

10

FIGURE2.4“P

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