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1、The Economic and Social Commission for Asia and the Pacific(ESCAP)is the most inclusive intergovernmental platform in the Asia-Pacific region.The Commission promotes cooperation among its 53 member States and 9 associate members in pursuit of solutions to sustainable development challenges.ESCAP is

2、one of the five regional commissions of the United Nations.The ESCAP secretariat supports inclusive,resilient and sustainable development in the region by generating action-oriented knowledge,and by providing technical assistance and capacity-building services in support of national development obje

3、ctives,regional agreements and the implementation of the 2030 Agenda for Sustainable Development.The shaded areas of the map indicate ESCAP members and associate members.*The designations employed and the presentation of material on this map do not imply the expression of any opinion whatsoever on t

4、he part of the Secretariat of the United Nations concerning the legal status of any country,territory,city or area or of its authorities,or concerning the delimitation of its frontiers or boundaries.Cross-border e-commerce for SME exports:Opportunities,challenges and policy recommendations-ivCROSS-B

5、ORDER E-COMMERCE FOR SME EXPORTS:OPPORTUNITIES,CHALLENGES AND POLICY RECOMMENDATIONSMr.Tengfei Wang,Economic Affairs Officer from the United Nations Economic and Social Commission for Asia and the Pacific(ESCAP),prepared this report.Substantial input was provided by Mr.Jian Wang,Professor,University

6、 of International Business and Economics,China.Ms.Beini Liu and Ms.Alyssa Le also provided useful inputs to the study.Mr.Elliot Carpenter and Ms.Kayan Lee,during their internship,provided research to the study and contributed to writing of the report.Mr.Yann Duval,Chief,Trade Policy and Facilitation

7、 Section of ESCAP,provided general guidance.Insightful peer review is provided by Mr.Sami Farhad,Senior Lecturer,Zhejiang University,China;Mr.Shawn Hunter,Industry Fellow,Asia Pacific Economic Cooperation(APEC)and Director,Inclusive Growth Programs,Griffith Asia Institute,Griffith University,Austral

8、ia;Ms.Susana Muoz Enrquez,Latin e-Mart Ltd.and Mr.Victor Almiray,individual expert.Expertise shared by Mr.Jian Wang,Mr.Sami Farhad,Ms.Susana Muoz Enrquez and Mr.Chandimal Kalusinghe at the webinar on cross-border e-commerce for SMEs export:opportunities,challenges and policy implications held on 28

9、March 2024 is gratefully acknowledged.Errors or omissions,however,are the sole responsibility of the authorsThe report was produced as part of the implementation of a project of the Forum for East Asia-Latin America Cooperation(FEALAC),entitled“Support the strengthening of policies to monitor and pr

10、omote the participation of MSMEs in cross-border goods and services in e-commerce for an inclusive and sustainable pandemic response and recovery in East Asia and Latin America”.Mary Ann Perkins edited the report.ACKNOWLEDGEMENTS Acknowledgements .IVExecutive Summary.VI Chapter 1.Introduction.8 Chap

11、ter 2.Cross-border e-commerce.14 .2.1 Types of cross-border e-commerce.15 2.2 The ecosystem of cross-border e-commerce.16 2.3 Discussion.18Chapter 3.Key opportunities and challenges for SME exports.20 3.1 Discussion according to the OECD framework.22 3.1.1 Informational barriers.22 3.1.2 Functional

12、barriers.23 3.1.3 Marketing barriers.26 3.1.4 Procedural barriers.30 3.1.5 Governmental barriers.33 3.1.6 Customer and competitor barriers.36 3.1.7 Business environment barriers.37 3.1.8 Tariff and non-tariff barriers.39 3.2 New challenges created by cross-border e-commerce.41 Chapter 4.Policy Recom

13、mendations.44Appendix 1.Provisions on cross-border e-commerce in the Regional Comprehensive Economic Partnership(RCEP)and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership(CPTPP).55Appendix 2.Examples of cross-border e-commerce tax regimes.67 (1)China.67 (2)Japan.69 (3)Republ

14、ic of Korea.69 (4)Singapore.70 (5)United States.70 (6)European Union.74CONTENTS-viCROSS-BORDER E-COMMERCE FOR SME EXPORTS:OPPORTUNITIES,CHALLENGES AND POLICY RECOMMENDATIONSThis report serves two primary objectives:first,it offers policymakers in Asia insights into the principal opportunities and ch

15、allenges faced by SMEs for their exports via cross-border e-commerce;and second,it provides policy recommendations on the key strategies a national government may take in order to support SME exports through cross-border e-commerce.This report mainly targets policymakers in developing countries and

16、the least developed countries in Asia,although the discussion is largely relevant to many countries worldwide.In Chapter 2,the key parties of the cross-border e-commerce ecosystem are reviewed.Key parties include the cross-border e-commerce platform,sellers,buyers,logistics companies,payment busines

17、s,foreign trade service companies,and supervision and administration authorities.The focus of Chapter 2 is on how much the government of a small economy may shape the development of an ecosystem for cross-border e-commerce.While government policies may facilitate the development of such an ecosystem

18、,its influence on the growth of the e-commerce ecosystem is very limited.The development of a cross-border e-commerce ecosystem in a small economy is likely to be organic.The focus of Chapter 3 is on key opportunities and challenges in cross-border e-commerce for SMEs participation in international

19、trade.The key challenges have been long recognized.In particular,the Organisation for Economic Co-operation and Development(OECD)has provided a framework of 47 key internal and external barriers.Given such a large number of barriers,it is no wonder that it has always been challenging for SMEs to par

20、ticipate in international trade.Chapter 3 also discusses that while cross-border e-commerce has mitigated certain barriers for SMEs,it is not a cure-all solution and does not address all of the challenges encountered by SMEs.Furthermore,e-commerce is in constant evolution and new challenges may not

21、precisely fit under the previous framework.In Chapter 4,key takeaways for policymakers are based on discussion in Chapters 2 and 3.First,this Chapter argues that policymakers need to take a holistic approach to support SMEs participation in cross-border e-commerce.It provides an analytical framework

22、 which single out how SMEs and government may together to address the key barriers including lack of market information,lack of human capacity,lack of financing opportunity,lack of competitive product,lack of marketing channel,unfamiliar with export procedures to the consumers in the export destinat

23、ion countries,lack of government support and high tariff.EXECUTIVE SUMMARYCROSS-BORDER E-COMMERCE FOR SME EXPORTS:OPPORTUNITIES,CHALLENGES AND POLICY RECOMMENDATIONSviiSecond,given the large number of barriers to SME participation in international trade and the likelihood that policy intervention wi

24、ll not succeed,Governments should consider introducing pilot projects as a means of managing risk.For example,a comprehensive cross-border e-commerce pilot zone was established in China in March 2015.Since then,the Government has gradually approved the establishment of more pilot sites,which are now

25、 found in 165 cities.Finally,this report advocates for the active participation of Governments in global and regional trade agreements covering cross-border e-commerce.In January 2019,a joint statement of 76 members of the World Trade Organization confirmed their intention to commence negotiations o

26、n trade-related aspects of e-commerce.Participation in such negotiations will enable government officials,especially those representing small economies,to learn about the latest developments on cross-border e-commerce and voice their concerns on promoting SME participation.Provisions of the Regional

27、 Comprehensive Economic Partnership(RCEP)and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership(CPTPP)that facilitate digital trade,trust-building measures,and address barriers hindering SME participation in international trade are highlighted.Furthermore,the importance of the

28、 Framework Agreement on Facilitation of Cross-border Paperless Trade in Asia and the Pacific(CPTA)is emphasized.The aim of the treaty is to reduce trade costs and enhance competitiveness,and it has 13 ratifications and additional signatories so far.Parties to the treaty will benefit from this inclus

29、ive platform while advancing cross-border e-commerce for countries in Asia and the Pacific.CROSS-BORDER E-COMMERCE FOR SME EXPORTS:OPPORTUNITIES,CHALLENGES AND POLICY RECOMMENDATIONS9INTRODUCTIONINTRODUCTIONThe starting point of this report includes a few case studies on cross-border e-commerce for

30、farmers and small and medium-sized enterprises(SMEs).With over 290 coffee growing cooperatives and approximately 400,000 farmers dedicated to its cultivation,coffee production serves as a vital component of Rwandas agricultural sector.In 2018,Rwanda started collaborating with a cross-border e-commer

31、ce platform and this partnership enabled Rwandan coffee to make its debut in China with an increasing number of coffee consumers.Since then,Rwandan coffee has experienced an astounding 700 per cent increase in sales volumes.Another similar story:through the collaboration between Government of Thaila

32、nd and a cross-border e-commerce platform,80,000 durians were sold to China within a minute1.At the same time,some Governments of countries in Asia tried to set up cross-border e-commerce platforms to support farmers and SMEs to sell their products in 1 https:/ 1-10CROSS-BORDER E-COMMERCE FOR SME EX

33、PORTS:OPPORTUNITIES,CHALLENGES AND POLICY RECOMMENDATIONSINTRODUCTIONinternational markets.However,not all of those efforts could be deemed successful,as some platforms have already stopped operations.These examples show that cross-border e-commerce could be utilized to support SME exports.However,n

34、ot all supporting measures taken by Governments to support SME exports through cross-border e-commerce may work.To better understand what measures may work and what measures may fail,it is fundamentally important to understand how cross-border e-commerce has made it easier for SMEs to export their p

35、roducts.Equally it is imperative to understand that cross-border e-commerce is not a panacea,and it is indeed very challenging for SMEs to participate in cross-border e-commerce.Cross-border e-commerce is,in essence,international trade.2 Therefore,a national policy on cross-border e-commerce should

36、be related to one or several aspects of the import and export of a country.The key consideration in national policymaking on cross-border e-commerce is to weigh the pros and cons of cross-border e-commerce,as shown in box 1.1BoxCountry-level pros and cons of cross-border e-commerceThe benefits and c

37、oncerns relating to cross-border e-commerce should be assessed in a balanced manner.Concerns of importing countries:Labour market Jobs could be lost in countries that manufacture goods that can be imported at lower cost.Affected constituencies include manufacturers and retail stores.Fiscal revenue T

38、ax revenue could be lost due to growth in de minimis shipments.Customs burden Unsafe/illegal/unlicensed/infringing goods may enter the country in small packages which are hard for customs to supervise.Packages are often mislabelled necessitating physical inspections.2 This report complements a separ

39、ate report on domestic e-commerce.There are distinct difference between international trade and domestic business,although the development of cross-border e-commerce and domestic e-commerce may strengthen each other.SMEs that compete internationally and borrow international practices may apply such

40、knowledge and skills to develop domestic e-commerce.The development of infrastructure and human capacity for domestic e-commerce may contribute to preparations for cross-border e-commerce.CROSS-BORDER E-COMMERCE FOR SME EXPORTS:OPPORTUNITIES,CHALLENGES AND POLICY RECOMMENDATIONS11INTRODUCTION Consum

41、er protection burden Low quality,dangerous goods may enter the country,and consumers have little recourse in the event of defects or fraud.Benefits to importing countries:Access to wider variety of goods at low prices.Benefiting stakeholders may include lower-income consumers(due to low-cost imports

42、),middle-and upper-income consumers(due to luxury brand imports)and rural consumers(due to ability to receive delivery of goods in areas which do not have large retail centres).Improving market competition.Business-to-business imports allow small and medium-sized enterprises(SMEs)to import goods to

43、increase competition with larger local producers(many developing countries have inefficient,oligopolistic retail sectors that do not provide low-cost goods to consumers).Growth of jobs in e-commerce logistics,cross-border payment.Potential investment in physical(warehouses)and digital infrastructure

44、(fintech,cloud computing).Some countries may receive investments to become regional hubs for cross-border intra-regional e-commerce.With reasonable taxation,imported goods can be a new source of revenue.Benefits to exporting countries:Increased exports for SMEs.Digital platforms allow SMEs to partic

45、ipate in global markets more easily.Opportunity to move up the value chain.The exporting country can potentially develop its own brands and thus gain a larger percentage of the final sale price rather than just being an original equipment manufacturer or commodity producer which receives low value c

46、ompared to the final sales price.Developing local brands can also increase a countrys overall trade reputation,but this requires sustained investment and expertise.Labour market.Jobs for exporting firms,income for exporting consumers.Development of higher trading capacity for domestic e-commerce fir

47、ms which learn to export.-12CROSS-BORDER E-COMMERCE FOR SME EXPORTS:OPPORTUNITIES,CHALLENGES AND POLICY RECOMMENDATIONSINTRODUCTIONConcerns for exporting countries:Lack of control of reputational harm if illegal goods exported.Potential to export scarce resources which are designated for domestic us

48、e.Source:Prepared by Sami Farhad,Senior Lecturer,Zhejiang University,China.This report focuses on how a developing country may support small and medium-sized enterprises(SMEs)to export products through cross-border e-commerce.The development of cross-border e-commerce provides business opportunities

49、 for SMEs.For example,cross-border e-commerce significantly improves information dissemination in targeted markets through enhanced accessibility.It bridges geographical and cultural divides,allowing consumers to access a wider variety of products and services than are produced locally.The globaliza

50、tion of commerce leads to a more informed customer base,as consumers can compare products,prices and quality from different countries.Moreover,cross-border e-commerce often offers comprehensive trade-related services,such as payment,logistics,customs clearance,and warehousing.Such services enable SM

51、Es to focus on producing quality products and substantially lowers the barriers for SME participation in international trade.However,cross-border e-commerce is not a remedy for all issues.Some economies,especially small economies,may not have access to cross-border e-commerce.Chapter 2 outlines the

52、key parties in the cross-border e-commerce ecosystem and discusses why governments of small economies may have very little impact on the existence and development of the cross-border e-commerce ecosystem.Even if cross-border e-commerce is accessible to an economy,this may not necessarily mean that S

53、MEs will take advantage of it,because not all of the barriers to participation in international trade can be overcome by cross-border e-commerce.For example,according to the Organisation for Economic Co-operation and Development(OECD),SMEs may face 47 key internal and external barriers to participat

54、ion in international trade(as shown in Appendix 1).Internal barriers refer to organizational resources or capabilities and the approach to informational barriers,functional barriers and marketing barriers.External barriers stem from the home and host environment within which the SME operates,such as

55、 procedural barriers,governmental barriers,customer and competitor barriers,business environment barriers,and tariff and non-tariff barriers.This report contains a detailed review of each barrier.It examines how cross-border e-commerce has the potential to reduce some barriers,and it explains why so

56、me CROSS-BORDER E-COMMERCE FOR SME EXPORTS:OPPORTUNITIES,CHALLENGES AND POLICY RECOMMENDATIONS13INTRODUCTIONmay persist despite cross-border e-commerce.Finally,this report provides policy recommendations.This report mainly targets policymakers in developing countries and the least developed countrie

57、s in Asia and the Pacific,although the discussion is largely relevant to many countries worldwide.In many countries,a national policy may have little impact on the development of the cross-border e-commerce ecosystem,therefore,Governments and policymakers need to identify solutions to work with part

58、ners,such as e-commerce platforms and international logistics providers,to enable the SMEs to access cross-border e-commerce services.A few examples,such as government support to the farmers in Rwanda to export coffee to China,are highlighted in this respect.3 3 This report is one of a series of stu

59、dies on e-commerce.It should be read alongside reports which detail each procedure of cross-border e-commerce of exporting products from Chile to China and exporting electronics from China to Malaysia,which show that each procedure of cross-border e-commerce may be complicated.CROSS-BORDER E-COMMERC

60、E FOR SME EXPORTS:OPPORTUNITIES,CHALLENGES AND POLICY RECOMMENDATIONS15CROSS-BORDER E-COMMERCECROSS-BORDER E-COMMERCECross-border e-commerce can be divided into different models corresponding to the type of transaction,the type of platform,and the flow of goods.Transaction types include business-to-

61、business(B2B),business-to-consumer(B2C)and consumer-to-consumer(C2C).Cross-border B2B e-commerce combines traditional foreign trade and e-commerce,that is,enterprises complete cross-border transactions through wholesale e-commerce platforms,such as Alibaba and Made-in-China.In cross-border B2C e-com

62、merce,enterprises sell goods and services directly to cross-border customers through retail platforms such as AliExpress,Amazon and eBay.In the C2C business model,individual consumers may buy and sell goods to each other,or individual overseas purchasing agents through cross-border C2C e-commerce re

63、tail platforms.22.1 Types of cross-border e-commerce-16CROSS-BORDER E-COMMERCE FOR SME EXPORTS:OPPORTUNITIES,CHALLENGES AND POLICY RECOMMENDATIONSCROSS-BORDER E-COMMERCEIn terms of platform type,cross-border e-commerce is divided between platforms and independent stations.Both models have their own

64、advantages and disadvantages.Most e-commerce sellers complete cross-border transactions through comprehensive,or vertical wholesale or retail platforms.Wholesale platforms include Alibaba,Made-in-China,Global Sources and DHgate.Retail platforms include AliExpress,Amazon,eBay,Shopee and Lazada.There

65、are further e-commerce platforms serving specific consumer needs.Amid mounting platform costs,many cross-border e-commerce companies have chosen to operate an independent station,that is,to establish their own cross-border e-commerce websites,using tools such as Shopify and Ueeshop.The independent s

66、tation model has many advantages for sellers,such as enabling them to formulate their own rules,access all the data of their transactions to make more informed business decisions,and avoid paying high membership fees or commissions to the platform,which increases sellers profits.The disadvantages of

67、 independent stations are that sellers need to drive traffic to their own website and handle payment and logistics issues by themselves.Many sellers use Google ads,advertisements on social media platforms,short videos,live broadcasts and collaborations with Internet celebrities to attract customers

68、to their independent station.It is estimated that the independent station model will become a new trend in the development of cross-border B2B e-commerce in the future.In terms of the flow of goods,cross-border e-commerce is divided into imports and exports.Some cross-border e-commerce platforms suc

69、h as Amazon and eBay transact both foreign goods and domestic goods,but in China,import and export e-commerce platforms are separated.Chinese enterprises will choose Alibaba,DH,AliExpress,Shopee and other platforms to export goods,whereas Chinese consumers will choose Tmall International,Koala Overs

70、eas Shopping,ymatou,and other platforms to buy foreign goods.Export and import e-commerce platforms have very different operating models due to the different characteristics of their customers.2.2 The ecosystem of cross-border e-commerceThe operation of cross-border e-commerce requires the participa

71、tion of multiple parties,which together constitute the ecosystem of cross-border e-commerce.The most basic roles in the cross-border e-commerce ecosystem include the platform,sellers,buyers,logistics companies,payment businesses,foreign trade service companies and customs authorities.1.Cross-border

72、e-commerce platforms are hubs and carriers within the ecosystem.CROSS-BORDER E-COMMERCE FOR SME EXPORTS:OPPORTUNITIES,CHALLENGES AND POLICY RECOMMENDATIONS17CROSS-BORDER E-COMMERCE 2.Sellers are cross-border e-commerce export enterprises on the platforms.Export enterprises could be factories,selling

73、 goods they produced,or they could be agents selling the goods produced by factories.Sellers may offer products selected from domestic wholesale platforms for sale on retail cross-border e-commerce platforms.3.Buyers include corporate purchasers and individual consumers,which are the source of traff

74、ic to platforms.Platforms spend a lot to promote themselves across various channels and attract all kinds of buyers.4.Various types of cross-border logistics companies enable e-commerce through shipping,air transportation,express delivery,postal services,special line logistics and overseas warehouse

75、s.Enterprises use overseas warehouses to store large volumes of a certain commodity near the target market,based on estimates of the sales volume and frequency.This enables the enterprise to deliver a large volume to the overseas warehouse using low-cost transportation methods and fulfil product ord

76、ers from consumers in the target market.5.Payment businesses are inseparable from cross-border e-commerce,and most platforms have linked payment ports to enable consumers to easily place orders.Well-known cross-border payment companies include PayPal and Alipay International.6.Comprehensive foreign

77、trade service companies provide a one-stop-shop for foreign trade process services,such as logistics,customs declarations,inspection declarations,tax refunds,and foreign exchange settlement for export enterprises through the network.Comprehensive foreign trade service companies can play a similar ro

78、le as freight forwarding,but they also have further value-added services.These companies offer a financing loan model based on platform operating data,rather than asset collateral.This means they can quickly and efficiently issue loans to buyers and sellers,and they create value by providing data re

79、porting services.7.Customs authorities play a crucial role in cross-border e-commerce by ensuring compliance with import and export regulations,collecting duties and taxes,and facilitating the smooth flow of goods across borders.The roles of customs authorities include the following:a.Tariff classif

80、ication:Goods are classified according to tariff codes,which determine the applicable duty rates and any restrictions or prohibitions on importing or exporting certain items;b.Customs clearance:The process of customs clearance involves verifying the documentation accompanying -18CROSS-BORDER E-COMME

81、RCE FOR SME EXPORTS:OPPORTUNITIES,CHALLENGES AND POLICY RECOMMENDATIONSCROSS-BORDER E-COMMERCE shipments,assessing duties and taxes,and inspecting goods to ensure compliance with regulations;c.Duty and tax collection:Fees levied on imported goods may include customs duties,value-added tax(VAT),goods

82、 and services tax(GST)and excise duties,depending on the country and the nature of the goods;d.Regulatory compliance:Imported and exported goods must be checked for compliance with relevant regulations,such as product safety standards,intellectual property rights protection,and environmental regulat

83、ions;e.Security screening:Security checks are conducted to prevent the illegal import or export of prohibited goods,such as weapons,narcotics,counterfeit products and endangered species;f.Trade facilitation:While ensuring compliance and security,customs authorities aim to facilitate trade by impleme

84、nting streamlined procedures,electronic documentation systems and risk-based inspection methods to expedite the movement of legitimate goods;g.Risk management:High-risk shipments are targeted for inspection while low-risk shipments are allowed to proceed smoothly,thus balancing security concerns wit

85、h the need to facilitate trade;and h.Data collection and analysis:Data is collected on cross-border trade flows,which can be used for trade statistics,economic analysis and policy formulation.2.3 DiscussionGovernments may facilitate the development of cross-border e-commerce ecosystems,but they cann

86、ot fundamentally shape ecosystem development.The key issue is how much the government of a small economy may shape the development of the ecosystem.Several considerations described in this section contribute to this argument.First,regarding the key parties of a cross-border e-commerce ecosystem,gove

87、rnment agencies manage and control import and export processes.In this sense,governments have the capacity to directly facilitate or restrict cross-border e-commerce in their own territory.Similarly,governments may facilitate or restrict their own enterprises from exporting products through cross-bo

88、rder e-commerce by introducing either facilitating or restricting measures.CROSS-BORDER E-COMMERCE FOR SME EXPORTS:OPPORTUNITIES,CHALLENGES AND POLICY RECOMMENDATIONS19CROSS-BORDER E-COMMERCEGovernments,however,may have little control over the other elements of cross-border e-commerce.For instance,c

89、ross-border e-commerce platforms operate in many countries,and they decide whether they wish to operate in a specific country or not.Similarly,buyers choose whether to buy the products from a particular country or not.Logistics companies,payment businesses and comprehensive foreign trade service com

90、panies may choose whether to provide services to a country,and they may choose not to if business incentives are lacking.Therefore,the influence of a government in the growth of the cross-border e-commerce ecosystem in a small economy is very limited,but growth may be organic.In terms of crafting po

91、licies,Governments should meticulously assess whether focusing on a single aspect of the e-commerce ecosystem,such as creating a cross-border e-commerce platform,will truly aid small and medium-sized enterprises(SMEs)in exporting their products.Particularly,without the support of logistics,trade ser

92、vices and other essential services,a standalone e-commerce platform may struggle to attract buyers.The network effect in e-commerce can lead to either a positive or negative feedback loop:a high number of sellers can attract a large number of buyers,whereas a low number of sellers may result in few

93、buyers.Therefore,a cross-border e-commerce platform in the absence of a robust and supportive ecosystem is unlikely to be effective in facilitating SME exports.CROSS-BORDER E-COMMERCE FOR SME EXPORTS:OPPORTUNITIES,CHALLENGES AND POLICY RECOMMENDATIONS21KEY OPPORTUNITIES AND CHALLENGES FOR SME EXPORT

94、SKEY OPPORTUNITIES AND CHALLENGES FOR SME EXPORTSKey challenges for SME exports are daunting.OECD(2008)presented a framework of 47 key barriers to SME exports,which are classified as either internal or external barriers.Internal barriers include informational barriers,functional barriers and marketi

95、ng barriers,while external barriers include procedural barriers,governmental barriers,customer and competitor barriers,business environment barriers,and tariff and non-tariff barriers.This chapter contains discussions of how cross-border e-commerce may ease each of the 47 barriers,showing that some

96、barriers to SME exports cannot be removed or overcome by cross-border e-commerce.Following the discussion of the internal and external barriers to SME exports according to the OECD framework,the focus of the chapter shifts to new challenges that cross-border e-commerce may create and that are not we

97、ll defined by the OECD framework.3-22CROSS-BORDER E-COMMERCE FOR SME EXPORTS:OPPORTUNITIES,CHALLENGES AND POLICY RECOMMENDATIONSKEY OPPORTUNITIES AND CHALLENGES FOR SME EXPORTS3.1 Discussion according to the OECD framework 3.1.1 Informational barriersOnline marketing offers cost-effective and target

98、ed approaches for engaging in cross-border e-commerce.The evolution of the Internet has significantly lowered enterprise marketing expenses,with online advertising often priced lower than traditional methods.Furthermore,a range of social media platforms have enhanced the diversity of information and

99、 lowered barriers.Using online tools,SMEs can showcase their products through text,images and videos,including through increasingly popular live streaming,making minimal investments while effectively communicating product attributes.However,informational barriers may persist even in cross-border e-c

100、ommerce ecosystems.Table 3.1 highlights how cross-border e-commerce has the potential to reduce informational barriers for SMEs even if they cannot be totally removed.3.1TableOpportunities and limitation in addressing informational barriers for SMEs through cross-border e-commerceBarrierHow cross-bo

101、rder e-commerce may reduce barriers Why barriers cannot be totally removedB1-Limitedinformation to locate/analysemarkets B2-Unreliable data about the international marketCross-border e-commerce improvesinformation dissemination in targeted markets through enhanced accessibility.(Chen et al,2022;Alib

102、aba,2017).Cross-border e-commerce enhances the reliability of data about international markets.SMEs may lack the requisite resources to collect and analyse all of the relevant information for each of the countries that receive their exports.This may lead to the unintended violation of laws in some c

103、ountries(Kommerskollegium,2012).The quality and reliability of data can vary significantly between sources,and some markets may have limited data available due to various constraints.Additionally,SMEs may lack the expertise to critically evaluate the accuracy of information.CROSS-BORDER E-COMMERCE F

104、OR SME EXPORTS:OPPORTUNITIES,CHALLENGES AND POLICY RECOMMENDATIONS23KEY OPPORTUNITIES AND CHALLENGES FOR SME EXPORTSB3-Identifying foreign businessB4-Inability to contact overseas customersCross-border e-commerce allows businesses to forge partnerships and collaborations across borders,facilitating

105、knowledge sharing,and enabling businesses to tap into each others strengths(Cassia and Magno,2021).For example,AEON Vietnam entered into a partnership agreement with Boxed,a United States e-commerce retailer and enabler to build its e-commerce and omnichannel capabilities(Globe Newswires,2022).The l

106、atter also partnered with AEON Malaysia to improve their e-commerce operations by launching myAeon2go in 2021 to provide in-store pickup and on-demand delivery at more than 40 locations(AEON,2021).E-commerce platforms and digital communication tools(e.g.email,social media,instant messaging)can overc

107、ome geographical and time zone barriers,making it easier to reach and engage with customers anywhere in the world.Even with advantageous partnerships,identifying truly valuable opportunities requires understanding of cultural nuances and market specifics,and the ability to build trustthese factors a

108、re challenging to cultivate solely online.Even with access to e-commerce tools,SMEs from emerging countries may be unable to reach customers in foreign markets without a local physical presence(Costa and Castro,2021;Shen,2022).3.1.2 Functional barriersTable 3.2 illustrates how cross-border e-commerc

109、e may impact functional barriers of SMEs.While digital solutions offer significant opportunities to streamline operations,access global markets,and manage resources more efficiently,they cannot fully eliminate the need for strategic oversight,in-depth knowledge of foreign markets and substantial fin

110、ancial investment in international expansion.The inherent complexities of global trade,combined with the limitations of digital tools in replicating human expertise and judgement,underscore the ongoing challenges faced by SMEs in leveraging e-commerce for international trade.-24CROSS-BORDER E-COMMER

111、CE FOR SME EXPORTS:OPPORTUNITIES,CHALLENGES AND POLICY RECOMMENDATIONSKEY OPPORTUNITIES AND CHALLENGES FOR SME EXPORTS3.2TableOpportunities and limitation in addressing functional barriers for SMEs through cross-border e-commerceBarrierHow cross-border e-commerce may reduce barriers Why barriers can

112、not be totally removedB5-Lack of managerial time B6-Insufficient personnel for internationalizationSMEs can utilize e-commerce platforms to significantly enhance the efficiency and capability of personnel engaged in cross-border trading.By automating and streamlining various aspects of the trading p

113、rocess,such as market analysis,customer engagement,and logistics management,these platforms reduce the need for extensive manual intervention.For example,Alibaba Groups e-commerce platforms,such as Taobao,Alibaba,and Tmall Global,provide sophisticated tools for market analysis,customer engagement,su

114、pply chain management and logistics(Zeng,2018).E-commerce enables access to a global talent pool for outsourcing tasks that do not require in-house attention,such as digital marketing,logistics management,and customer support.Online training resources can upskill existing staff at a lower cost.The s

115、trategic aspects of internationalization,such as market selection and relationship building,require significant managerial input and cannot be fully automated.Skills development remains an obstacle to the growth of e-commerce in Asia.First,e-commerce is a knowledge-intensive sector:utilizing advance

116、d devices,software,and applications in both production and business operations.Qualified workers must have sufficient technical CROSS-BORDER E-COMMERCE FOR SME EXPORTS:OPPORTUNITIES,CHALLENGES AND POLICY RECOMMENDATIONS25KEY OPPORTUNITIES AND CHALLENGES FOR SME EXPORTSskills to operate these tools p

117、roficiently,especially in troubleshooting and problem-solving.Second,the complexity of global value chains associated with e-commerce demands high-level managerial skills(Chen,2017;West&Noel,2009).Physical production constraints and the need for quality control in manufacturing processes limit the e

118、xtent to which production can be scaled up quickly or outsourced.Even though cross-border e-commerce has lower capital requirements than traditional internationalization,the cost may remain out of reach for SMEs that lack access to credit,because SMEs have a much higher trade loan rejection rate.Acc

119、ording to Sun(2019),56 per cent of SME proposals for trade finance are rejected compared to 34 per cent for large and multinational corporations.On-demand production and drop shipping models facilitated by e-commerce can help SMEs scale their operations without significant upfront investments in pro

120、duction capacity.This allows for more flexible response to demand fluctuations in international markets.Traditionally,expanding a business internationally involved considerable costs,including establishing physical stores,hiring local staff,and navigating complex regulatory environments.However,cros

121、s-border e-commerce platforms enable businesses to reach global markets with minimal investment.B7-Lack of excess production capacityB8-Shortage of working capital to finance exports-26CROSS-BORDER E-COMMERCE FOR SME EXPORTS:OPPORTUNITIES,CHALLENGES AND POLICY RECOMMENDATIONSKEY OPPORTUNITIES AND CH

122、ALLENGES FOR SME EXPORTS 3.1.3 Marketing barriersE-commerce provides a pathway for SMEs to address many traditional marketing barriers,but there are inherent limitations that prevent a full resolution of these issues.E-commerce platforms offer SMEs access to international markets,enabling direct int

123、eraction with customers and providing valuable insights into local market trends and consumer preferences.This direct access facilitates the adaptation of products,packaging,and promotional activities to meet the diverse needs and regulatory requirements of different markets.Digital tools and analyt

124、ics can help SMEs to tailor their product designs and marketing strategies,ensuring compliance with international standards and preferences.Furthermore,digital marketing tools allow for targeted advertising and content customization,enhancing the effectiveness of promotional activities across differ

125、ent regions.Table 3.3 contains a list of marketing barriers for cross-border e-commerce SMEs,underscoring the transformative impact of digital platforms and tools along with persistent challenges that cannot be entirely mitigated through digital means.Despite the advantages of e-commerce,adaptation

126、to local conditions will likely require deep cultural understanding of local consumer behaviour,beyond what online interactions can provide.Regulatory environments and standards vary widely between markets and are subject to frequent changes,demanding continuous attention and adaptation by businesse

127、s.Moreover,establishing trust and understanding local market dynamics typically necessitates partnerships with local representatives or intermediaries,which digital platforms alone cannot replace.The complexities of managing logistics and distribution channels,along with the need for after-sales ser

128、vices in foreign markets,further illustrate the limitations of relying solely on e-commerce for international expansion.While digital platforms can optimize supply chains and reduce intermediary costs,external factors such as tariffs,shipping costs,and currency fluctuations add significant challenge

129、s to maintaining competitive pricing and managing international transactions.CROSS-BORDER E-COMMERCE FOR SME EXPORTS:OPPORTUNITIES,CHALLENGES AND POLICY RECOMMENDATIONS27KEY OPPORTUNITIES AND CHALLENGES FOR SME EXPORTS3.3TableOpportunities and limitations in addressing marketing barriers for SMEs th

130、rough cross-border e-commerceB9-Developing new products for foreign markets B10-Adapting export product design/styleB11-Meeting export product quality/standards/specificationsB12-Meeting export packaging/labelling requirementsE-commerce platforms provide access to customer feedback and market data g

131、lobally,and SMEs may use this information to tailor products to specific market needs.E-commerce platforms often offer insights into local trends and consumer preferences,facilitating the adaptation of product designs to meet diverse market needs.Many platforms provide tools and resources to help SM

132、Es understand and comply with international standards.For example,Alibaba and Amazon Global Selling provide guidance on compliance with global standards and regulations to help sellers navigate requirements across markets(Amazon,2023).E-commerce platforms and digital services can guide SMEs on packa

133、ging and labelling requirements for different markets,including Even with access to market data,SME production capacity is limited to the industrial level of the country.The nuances of local tastes and cultural preferences may require adjustments beyond superficial design changes,necessitating local

134、 expertise.Regulatory environments and standards vary widely and are subject to change,making continuous compliance challenging.Translating labels and ingredients of products in local languages of the import countries may be challenging for SMEs.BarrierHow cross-border e-commerce may reduce barriers

135、 Why barriers cannot be totally removed-28CROSS-BORDER E-COMMERCE FOR SME EXPORTS:OPPORTUNITIES,CHALLENGES AND POLICY RECOMMENDATIONSKEY OPPORTUNITIES AND CHALLENGES FOR SME EXPORTSB13-Offering technical/after-sales serviceB14-Offering satisfactory prices to customersB15-Difficulty in matching compe

136、titors pricesB16-Granting credit facilities to foreign customersB17-Complexity of foreign distribution channelsB18-Accessing export automated solutions for customization.Digital communication tools and platforms enable remote support and troubleshooting,reducing the need for physical presence in the

137、 export market.E-commerce can reduce intermediary costs and optimize supply chains,potentially lowering costs and enabling more competitive pricing.Access to global suppliers and efficiency gains from e-commerce operations can help SMEs reduce costs and improve price competitiveness.Digital payment

138、platforms can offer secure and flexible payment options,reducing reliance on traditional credit facilities.E-commerce enables direct-to-consumer sales models,bypassing complex distribution channels and reducing dependency on intermediaries.Some e-commerce platforms provide comprehensive Some product

139、s require hands-on service,or complex issues may arise that cannot be resolved remotely.Many costs cannot be reduced by e-commerce optimization,and pricing strategies are impacted by tariffs,shipping costs,and currency fluctuations.Despite the efficiencies gained through e-commerce,SMEs may be unabl

140、e to compete on cost with large-scale or subsidized companies.Even with the services of digital payment platforms,significant challenges remain in assessing and mitigating non-payment risks and international credit remains complex.Some markets may still require local distribution partners due to log

141、istical,regulatory,or market access complexities.Not all e-commerce platforms provide logistics and CROSS-BORDER E-COMMERCE FOR SME EXPORTS:OPPORTUNITIES,CHALLENGES AND POLICY RECOMMENDATIONS29KEY OPPORTUNITIES AND CHALLENGES FOR SME EXPORTSdistribution channelsB19-Obtaining reliable foreign represe

142、ntationB20-Maintaining control over foreign middlemenB21-Difficulty in supplying inventory abroadB22-Unavailabilityof warehousing facilities abroaddistribution and warehousing service.Digital tools and platforms facilitate direct communication with customers and partners,reducing the reliance on for

143、eign representatives.E-commerce and digital contracts can improve transparency and control over distribution channels through real-time monitoring and analytics.Advanced inventory and logistics platforms enable more effective demand forecasting and inventory management,reducing stockouts and excess

144、inventory.Third-party logistics providers offer scalable warehousing solutions globally,accessible through e-commerce platforms.For example,JD.com provides warehousing service to sellers abroad.distribution services,and sellers may find it difficult to arrange overseas logistics services.While e-com

145、merce platforms may reduce reliance on foreign representation,working with a foreign representative with in-depth local knowledge is often critical to build trust and decipher local market dynamics.No remaining challenge is observedLogistics challenges,customs delays,and unforeseen events can disrup

146、t supply chains,impacting inventory levels.The costs and complexities of working with third-party logistics providers are too great for most SMEs-30CROSS-BORDER E-COMMERCE FOR SME EXPORTS:OPPORTUNITIES,CHALLENGES AND POLICY RECOMMENDATIONSKEY OPPORTUNITIES AND CHALLENGES FOR SME EXPORTSB23-Excessive

147、 transportation/insurance costsB24-Adjusting export promotional activities to the target marketE-commerce partnerships and digital logistics platforms can optimize shipping routes and consolidate shipments to reduce costs.Digital marketing tools allow for targeted advertising and content customizati

148、on based on regional preferences,enhancing promotional effectiveness.Costs are likely to remain high for certain products due to geographical realities and the need for specialized transportation or insurance.Deep cultural understanding and local insights are required for adaptation and localization

149、 of marketing.3.1.4 Procedural barriersProcedural barriers to international trade present significant challenges for SMEs,yet cross-border e-commerce offers various avenues to mitigate these complexities.Table 3.4 highlights how digital innovations streamline operations,enhance communication,expedit

150、e payments,and simplify dispute resolution,underscoring the transformative potential of e-commerce in overcoming procedural hurdles while acknowledging that inherent limitations persist despite these advancements.Digital platforms and services simplify the maze of exporting procedures by automating

151、documentation and compliance processes,reducing the burden of customs paperwork and shipping arrangements.This digital facilitation,while significantly easing the procedural load,cannot fully eliminate the burden of compliance with international regulations and customs procedures that vary widely ac

152、ross countries.Communication barriers,exacerbated by geographical distances and cultural differences,are substantially reduced through the use of digital communication tools and the increasing availability of Internet infrastructure in different regions.These technologies bridge the gap between sell

153、ers and buyers,facilitating more immediate CROSS-BORDER E-COMMERCE FOR SME EXPORTS:OPPORTUNITIES,CHALLENGES AND POLICY RECOMMENDATIONS31KEY OPPORTUNITIES AND CHALLENGES FOR SME EXPORTSand effective interactions.Nonetheless,the challenges of language and culture barriers cannot be entirely resolved t

154、hrough digital means,and access to technologies remains uneven.The collection of payments from abroad is expedited through integrated international payment gateways and emerging technologies like digital currencies,offering secure and flexible transaction solutions.Despite these advancements,obstacl

155、es related to currency restrictions,reliance on credit facilities and intermediary complexities remain.Furthermore,the risk of online fraud continues to pose a significant challenge to secure and timely international payments.Online dispute resolution platforms and digital contract management system

156、s introduce transparency,efficiency,and cost-effectiveness to contract enforcement and dispute resolution processes.These digital solutions aim to mitigate issues related to contract ambiguity and the enforcement of international agreements.However,the effectiveness of these technologies is limited

157、by the intricate landscape of international legal systems,the need for mutual acceptance of dispute resolution mechanisms and the variability of legal standards across jurisdictions.-32CROSS-BORDER E-COMMERCE FOR SME EXPORTS:OPPORTUNITIES,CHALLENGES AND POLICY RECOMMENDATIONSKEY OPPORTUNITIES AND CH

158、ALLENGES FOR SME EXPORTS3.4TableOpportunities and limitations in addressing procedural barriers for SMEs through cross-border e-commerceB25-Unfamiliar exporting procedures/paperworkB26-Difficulties communicating with overseas customersB27-Slow collection of payments from abroadDigital platforms and

159、services can simplify the complexity of exporting procedures by providing streamlined,user-friendly access to necessary documentation and customs compliance information.Automated tools can help SMEs to manage shipping arrangements and customs documentation.Digital communication tools such as email,i

160、nstant messaging and video conferencing can significantly reduce the geographical and psychological distances between sellers and buyers,facilitating more frequent and effective communication.E-payment platforms often speed up payment collection in cross-border e-commerce.PayPal and WorldFirst Unfam

161、iliar exporting procedures and paperwork can have a significant impact on SMEs.The complexity and variability in international trade regulations,customs documentation and compliance requirements can lead to costly errors,delays,and potential legal issues.Inefficient handling of these procedures may

162、also result in lost business opportunities and customer dissatisfaction.Unlike larger enterprises with more resources,SMEs may struggle to navigate communication gaps and cultural differences when working with overseas customers.Cultural barriers,from differences in idioms and slang to varying attit

163、udes toward punctuality and hierarchy,can be a real challenge for SMEs No remaining challenge is observed if the e-commerce platform provides service on collection of payments.BarrierHow cross-border e-commerce may reduce barriers Why barriers cannot be totally removedCROSS-BORDER E-COMMERCE FOR SME

164、 EXPORTS:OPPORTUNITIES,CHALLENGES AND POLICY RECOMMENDATIONS33KEY OPPORTUNITIES AND CHALLENGES FOR SME EXPORTSB28-Difficulties in enforcing contracts and resolving disputesprovide payment services for global SMEs(Deloitte,2021).Online dispute resolution platforms and digital contract management syst

165、ems can offer more transparent,efficient,and cost-effective solutions for enforcing contracts and resolving disputes.These technologies can help overcome the challenges of non-verifiable information and ambiguity in contracts.Several major challenges can complicate addressing consumer complaints and

166、 resolving disputes in e-commerce,which include the geographical distance between involved parties,language and cultural barriers,the complexity of identifying applicable laws and determining the appropriate legal authority,and enforcing legal decisions(Hashim,2005).3.1.5 Governmental barriersNaviga

167、ting governmental barriers presents a unique set of challenges for SMEs involved in international trade.These barriers,rooted in the regulatory environment both at home and abroad,significantly impact the ability of SMEs to export and internationalize their operations.The complexities of dealing wit

168、h government policies,regulations and the lack of supportive measures are formidable obstacles.However,cross-border e-commerce and digital tools offer pathways to mitigate some of these challenges,though they cannot completely eliminate the hurdles posed by governmental action or inaction.Digital pl

169、atforms and online resources can provide SMEs with up-to-date information on government regulations,policies and available incentives.This knowledge empowers businesses to navigate the regulatory landscape more effectively and take advantage of government support mechanisms.Moreover,digital advocacy

170、 and networking can enhance the visibility of SME needs and challenges,potentially influencing policy changes or the introduction of more supportive measures.-34CROSS-BORDER E-COMMERCE FOR SME EXPORTS:OPPORTUNITIES,CHALLENGES AND POLICY RECOMMENDATIONSKEY OPPORTUNITIES AND CHALLENGES FOR SME EXPORTS

171、Despite these opportunities,the inherent limitations of digital tools in overcoming governmental barriers are significant.The complexity and variability of regulations,the geopolitical context,and the entrenched nature of governmental policies mean that online resources and advocacy can only go so f

172、ar.Policies restricting exports or imposing stringent regulations are often influenced by economic,political,or security considerations that are beyond the immediate influence of digital advocacy or the individual actions of SMEs.Furthermore,the lack of government assistance or incentives for intern

173、ationalizing activities is a multifaceted issue that encompasses financial,educational,and logistical support dimensions.While digital platforms can offer alternative routes to market knowledge,networking and even funding through crowdfunding or alternative finance options,they cannot replace compre

174、hensive government support programmes designed to facilitate international trade for SMEs.Negotiation between Governments may provide a useful solution to reduce barriers on unfavourable foreign rules and regulations.Some of the regulatory issues on cross-border e-commerce have been addressed by the

175、 World Trade Organization or through regional trade agreements such as the Regional Comprehensive Economic Partnership and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership(appendix 1).CROSS-BORDER E-COMMERCE FOR SME EXPORTS:OPPORTUNITIES,CHALLENGES AND POLICY RECOMMENDATIONS

176、35KEY OPPORTUNITIES AND CHALLENGES FOR SME EXPORTS3.5TableOpportunities and limitations in addressing procedural barriers for SMEs through cross-border e-commerceBarrierHow cross-border e-commerce may reduce barriers Why barriers cannot be totally removedB29-Lack of home government assistance/incent

177、ivesB30-Unfavourable home rules and regulationsB31-Unfavourable foreign rules and regulationsIt is not clear how e-commerce may reduce such barriers Global e-commerce platforms have experience dealing with a variety of regulatory environments and often provide guidance and tools to help businesses c

178、omply with international trade laws(IMF et al,2023;Ahi,Sinkovics and Sinkovics,2023).SMEs benefit from working with cross-border e-commerce platforms that have already navigated these issues.Digital tools can also assist in compliance management,helping businesses adhere to foreign regulations more

179、effectively.SMEs may still contend with restrictive laws and regulations bureaucracies(Minh,Hjortso,2015;Rahman,Uddin&Lodorfos,2017).Regulations are often rooted in national security,economic policies,or international agreements,which are complex and slow to change.Digital platforms cannot alter the

180、se foundational regulations.Foreign regulations,especially those related to national security or specific product standards,remain a significant challenge.SMEs need to comply with these irrespective of their digital presence,and compliance often involves complex and resource-intensive processes.-36C

181、ROSS-BORDER E-COMMERCE FOR SME EXPORTS:OPPORTUNITIES,CHALLENGES AND POLICY RECOMMENDATIONSKEY OPPORTUNITIES AND CHALLENGES FOR SME EXPORTS 3.1.6 Customer and competitor barriersTable 3.6 highlights the role of cross-border e-commerce to help SMEs cope with customer preferences and competitive pressu

182、res in foreign markets.While digital platforms offer significant opportunities for market research,customer engagement,and competitive analysis,they do not eliminate the need for a deep understanding of local market conditions and consumer behaviours.Successfully navigating these barriers requires a

183、 combination of digital savviness,cultural competence and strategic flexibility.E-commerce enables SMEs to gather detailed customer data,engage with consumers through personalized marketing and adjust their product offerings to meet specific market demands.However,the intrinsic challenges of cultura

184、l differences and the intensity of competition in global markets remain significant.These challenges underscore the importance of integrating digital tools with comprehensive market analysis,local partner collaborations and adaptive business strategies to effectively compete and thrive in internatio

185、nal markets.3.6TableOpportunities and limitations in addressing procedural barriers for SMEs through cross-border e-commerceBarrierHow cross-border e-commerce may reduce barriers Why barriers cannot be totally removedB32-Different foreign customer habits/attitudesE-commerce platforms enable access t

186、o a global customer base,allowing for targeted marketing and personalized product offerings based on data analytics.This can help businesses to tailor their approach to meet the specific preferences and needs of diverse customer groups.Despite the reach and customization offered by e-commerce,unders

187、tanding and adapting to deep-seated cultural nuances,consumer behaviour,and local preferences requires on-the-ground insights that digital platforms alone cannot fully provide.CROSS-BORDER E-COMMERCE FOR SME EXPORTS:OPPORTUNITIES,CHALLENGES AND POLICY RECOMMENDATIONS37KEY OPPORTUNITIES AND CHALLENGE

188、S FOR SME EXPORTSB33-Keen competition in overseas marketsIt is not clear how e-commerce may reduce such barriers.When brands are relatively new or unknown in target markets they must build brand awareness and reputation to be competitive.This usually involves significant investment in marketing and

189、advertising across multiple channels,which can be costly.Newcomers with a higher price have a less-competitive position in a new market.3.1.7 Business environment barriersWhile cross-border e-commerce and digital tools offer significant opportunities to address the challenges posed by the business e

190、nvironment in foreign markets,there are intrinsic limitations to their efficacy.Economic conditions,currency risks,unfamiliar business practices,and socio-cultural differences present complex challenges that require more than digital solutions(table 3.7).Understanding local markets deeply,building r

191、elationships and adapting to local conditions are crucial.Digital strategies can enhance flexibility and provide valuable insights,but navigating these barriers successfully often requires a combination of digital prowess and local engagement.3.7TableOpportunities and limitations in addressing proce

192、dural barriers for SMEs through cross-border e-commerceBarrierHow cross-border e-commerce may reduce barriers Why barriers cannot be totally removedB34-Poor/deteriorating economic E-commerce enables businesses to adapt to changing market conditions Deep economic crises and structural issues in forei

193、gn markets cannot be overcome -38CROSS-BORDER E-COMMERCE FOR SME EXPORTS:OPPORTUNITIES,CHALLENGES AND POLICY RECOMMENDATIONSKEY OPPORTUNITIES AND CHALLENGES FOR SME EXPORTSconditions abroadB35-Foreign currency exchange risksB36-Unfamiliar foreign business practicesB37-Different socio-cultural traits

194、B38-Verbal/non-verbal language differencesB39-Inadequacy of infrastructure for e-commerceby adjusting prices,promotions,and product offerings in real-time,based on consumer behaviour analytics.It is unclear how e-commerce may reduce this barrierOnline forums,business networks,and digital resources p

195、rovide valuable insights into local business practices,helping companies adapt their operations and strategies accordingly.SMEs may identify products that are socially and culturally acceptable in a country by observing the products other sellers offered successfully.Translation software and multili

196、ngual customer service can help to bridge language barriers,making it easier for SMEs to communicate with customers in their native language.It is unclear how e-commerce may reduce this barrier.by cross-border e-commerce.Currency exchange is beyond control of the SMEs and can significantly impact th

197、eir revenue.Digital tools alone cannot fully account for the subtleties of local business etiquette and practices.On-the-ground experience and relationships are required.SMEs entering international markets through e-commerce must navigate language and cultural barriers,which can be a significant obs

198、tacle.Non-verbale language is difficult to be translated.Building large-scale infrastructure projects is beyond the scope of cross-border e-commerce platforms and SMEs.CROSS-BORDER E-COMMERCE FOR SME EXPORTS:OPPORTUNITIES,CHALLENGES AND POLICY RECOMMENDATIONS39KEY OPPORTUNITIES AND CHALLENGES FOR SM

199、E EXPORTSB40-Political instability in foreign marketsData collected by a cross-border e-commerce platform may support SMEs to better assess political situation in a foreign country.Political and economic instability can drastically affect market conditions and consumer confidence 3.1.8 Tariff and no

200、n-tariff barriersTable 3.8 addresses tariff and non-tariff barriers in international trade for SMEs,which underscores the potential of e-commerce and digital strategies to mitigate some of the barriers.While digital platforms can facilitate access to markets with favourable tariffs and help business

201、es stay updated on and comply with foreign rules and regulations,the inherent challenges posed by international trade policies,diverse regulatory environments,and enforcement mechanisms remain significant(the tax regimes of cross-border e-commerce in a few selected countries are shown in Appendix 2)

202、.Key strategies include leveraging online resources to better understand and comply with health,safety,and technical standards across different markets,and using digital tools to accurately prepare documentation for customs authorities.Additionally,digital market research tools can identify alternat

203、ive markets,helping diversify business operations to mitigate risks associated with quotas,embargoes,or high tariff barriers.However,the effectiveness of these digital strategies is limited by several factors.Tariffs and regulatory controls are often dictated by complex international agreements and

204、national policies,beyond the reach of individual business strategies.Intellectual property rights protection and the enforcement of health,safety,and technical standards depend heavily on the legal and regulatory framework of the host country.Similarly,the challenges of navigating customs procedures

205、,including the risk of arbitrary tariff classifications and the high costs associated with customs administration,require more than just digital solutions.-40CROSS-BORDER E-COMMERCE FOR SME EXPORTS:OPPORTUNITIES,CHALLENGES AND POLICY RECOMMENDATIONSKEY OPPORTUNITIES AND CHALLENGES FOR SME EXPORTS3.8

206、TableOpportunities and limitations in addressing tariff and non-tariff barriers for SMEs through cross-border e-commerceBarrierHow cross-border e-commerce may reduce barriers Why barriers cannot be totally removedB41-High tariff barriersB42-Strict foreign rules and regulationsB43-Inadequate property

207、 rights protectionB44-Restrictive health,safety and technical standardsSome products falling under specific threshold values(de minimis)may be imported tax free(see Appendix 3).Cross-border e-commerce platforms that follow the rules and regulations of import countries may make it easier for sellers

208、on the platform to comply with the law when exporting products to another country.It is unclear how e-commerce may reduce such barrierAccess to online databases and professional networks can help SMEs to understand standards in specific countries and align products to meet these requirements.The de

209、minimis of many countries are very low,meaning most products imported through cross-border e-commerce are subjected to tax.The diversity and complexity of foreign regulations requires comprehensive local knowledge that cannot be fully addressed through digital means alone.Control of IPR at the natio

210、nal level may not harmonized across borders,making it difficult for SMEs to judge which IPR rules apply.The challenge of meeting diverse and sometimes discriminatory standards across countries requires resources and expertise beyond what digital information sources can provide.CROSS-BORDER E-COMMERC

211、E FOR SME EXPORTS:OPPORTUNITIES,CHALLENGES AND POLICY RECOMMENDATIONS41KEY OPPORTUNITIES AND CHALLENGES FOR SME EXPORTSB45-Arbitrary tariff classification and reclassificationB46-Unfavourable quotas and/or embargoesB47-High costs of customs administrationIt is unclear how e-commerce may reduce such

212、barrierMarket research tools and digital platforms can help SMEs to identify alternative markets and diversify their market presence to reduce reliance on any single market affected by quotas or embargoes.E-commerce platforms that offer electronic documentation and customs clearance services can hel

213、p reduce some administrative costs and delays associated with customs processes.Decisions on tariff classification are ultimately determined by customs authorities,and disputes can be complex and challenging to resolve.The imposition of quotas and embargoes is often based on geopolitical factors and

214、 international relations,areas where businesses have limited influence.Therefore,available tools and platforms are insufficient to totally cope with the imposition of quota and embargoescustoms costs hinder SME exports3.2 New challenges created by cross-border e-commerceThe review contained in secti

215、on 3.1 showed how cross-border e-commerce has influenced the key opportunities and challenges for SME participation in international trade.The analysis featured the 47 key barriers for SMEs as outlined by OECD(2008),however,it is crucial to recognize that e-commerce is in constant evolution.New tren

216、ds raise additional challenges that may not precisely fit under a previous framework.-42CROSS-BORDER E-COMMERCE FOR SME EXPORTS:OPPORTUNITIES,CHALLENGES AND POLICY RECOMMENDATIONSKEY OPPORTUNITIES AND CHALLENGES FOR SME EXPORTSFor instance,e-commerce platforms typically facilitate the connection bet

217、ween suppliers and buyers of domestic or foreign goods for delivery to local markets or multiple countries.These platforms drive traffic to their portals and convert visitors into buyers,competing by providing a satisfactory buying experience.Platforms have become increasingly sophisticated in the s

218、ervices they offer to sellers.Sellers,too,have become sophisticated,striving to differentiate themselves from competitors through their product offerings,pricing strategies,delivery times,or enhanced visibility to potential buyers.Both platforms and sellers aim to differentiate themselves from their

219、 competitors.E-commerce platforms and third-party service providers have seized the opportunity to offer services based on complex algorithms.Sellers may pay additional fees to the platform for sectoral sales statistics and temporary promotion of their online shops to gain visibility on the platform

220、 and attract potential buyers.This dynamic increases barriers to entry for new sellers on the platform,especially for SMEs sensitive to prices and expenses.If SMEs do not pay the platform or third-party providers for additional value-added services,their visibility to potential buyers and success ra

221、te may decrease.This barrier can be categorized with marketing barriers,but it is distinct from“B15-Difficulty in matching competitors prices”,as the challenge for new sellers is to access a mature platform on an equal footing.Another example is the tax certainty processes or tax policies and their

222、impact on selling activity.This impacts the seller but also potentially impacts both the platform and the buyer,especially in B2B transactions.Governments are paying closer attention to tax policies pertaining to cross-border e-commerce transactions related to income tax charged on revenue/profit.In

223、 recent years,Governments have adopted measures related to tax-based determination and profit allocation,among others,to impose requirements on cross-border e-commerce and digital trade sales.Discussions on this matter are expected to continue for several years ahead.CROSS-BORDER E-COMMERCE FOR SME

224、EXPORTS:OPPORTUNITIES,CHALLENGES AND POLICY RECOMMENDATIONS43KEY OPPORTUNITIES AND CHALLENGES FOR SME EXPORTSChallenges include understanding and complying with different tax systems,determining whether the business model generates a permanent establishment(including the use of a representative agen

225、cy),avoiding double taxation and managing tax compliance in more than one country.Additionally,there are frequent invoicing requirements for sellers and overseas services provided by the platform,including the platforms capability to provide accurate invoicing with data on sellers and buyers while c

226、omplying with local requirements,due to sellers need to comply with stricter tax regulations on invoicing and traceability of the overseas commercial transactions.This can be categorized as a procedural barrier or governmental barrier,but it does not necessarily fit into the existing framework,wheth

227、er under“B25-Unfamiliar exporting procedures/paperwork”,“B30-Unfavourable home rules and regulations”,“B31-Unfavourable foreign rules and regulations”,or“B42-Strict foreign rules and regulations”.Instead,the challenge is to understand and manage tax compliance on international sales,encompassing loc

228、al and international implications.CROSS-BORDER E-COMMERCE FOR SME EXPORTS:OPPORTUNITIES,CHALLENGES AND POLICY RECOMMENDATIONS45POLICY RECOMMENDATIONSPOLICY RECOMMENDATIONSAfter examining the key features of a cross-border e-commerce ecosystem in chapter 2 and reviewing how cross-border e-commerce ma

229、y(or may not)reduce the barriers for SME participation in international trade,this chapter provides key policy recommendations.Policy recommendation 1.Government needs to take a holistic but selective approach to support SME exportAs explored in the preceding chapter,OECD(2008)identifies a multitude

230、 of 47 barriers hindering SME participation in international trade.While cross-border e-commerce can mitigate some of these barriers,certain challenges endure.Given these obstacles,government initiatives aimed at bolstering SME export necessitate clarity regarding the actions SMEs can take to mitiga

231、te or overcome these barriers,as well as the corresponding support governments can provide.Table 4.1 provides a systematic analysis of these strategies.4-46CROSS-BORDER E-COMMERCE FOR SME EXPORTS:OPPORTUNITIES,CHALLENGES AND POLICY RECOMMENDATIONSPOLICY RECOMMENDATIONS4.1TableStrategies for Overcomi

232、ng Cross-Border E-Commerce Barriers:Actions for SMEs and Government SupportBarrierHow cross-border e-commerce may reduce barriers Why barriers cannot be totally removedLack of market informationLack of human capacityLack of financing opportunityConduct market research or hire consultantsInvest in tr

233、aining programsSeek alternative financing options.For example,some e-commerce platforms provide financingGovernment may use its connections in other countries,such as the presence of embassies and chamber of commerce,to support SMEs efforts to collect market informationGovernment may provide tailore

234、d training programmes to support SMEsGovernment support for SMEs financing can be debatable because questions may arise about why some SMEs receive such financing support.Furthermore,if SMEs fail to pay back the loan from the government,it is questionable as to who should be responsible for such los

235、s.Fundamentally,if a government decides to support SMEs in financing,there should be a strong case that such support will yield broad social benefits such as the demonstration effects which show other SMEs how to get involved in cross-border e-commerce.CROSS-BORDER E-COMMERCE FOR SME EXPORTS:OPPORTU

236、NITIES,CHALLENGES AND POLICY RECOMMENDATIONS47POLICY RECOMMENDATIONSLack of competitive productLack of marketing channelUnfamiliar with export procedures to the consumers in the export destination countriesLack of government supportHigh tariff barriersThis issue is complicated for SMEs because the m

237、arket demand may change over time,and the competitor may produce higher quality products with lower costs.All this required SMEs to be innovative.It is certainly easier said than done.Utilize digital marketing tools or partner with e-commerce platformsSMEs may collaborate with cross-border e-commerc

238、e platforms which provide services for imports(in importing country).However,the e-commerce platform may charge a high fee for the sellersCommunication between SMEs association and government may enable the government to better understand the needs of SMEs and the importance for SME export through c

239、ross-border e-commerceIt is unlikely for the SMEs to take action to address these barriers directly because tariff is negotiated between governments.However,SMEs may lobby their government to negotiate with other governments on tariffGovernment needs to understand the local situation well and identi

240、fy the niche products.This requires government to support overseas market information and pass such information to SMEs.Government may organize business exhibition to showcase national products and help creating a national brand Government may offer export assistance programs or streamline export do

241、cumentation processesGovernment may use cross-border e-commerce as a new strategy-compared to traditional trade-to promote exportNegotiate trade agreements or provide tariff relief programs-48CROSS-BORDER E-COMMERCE FOR SME EXPORTS:OPPORTUNITIES,CHALLENGES AND POLICY RECOMMENDATIONSPOLICY RECOMMENDA

242、TIONSThe large number of challenges for SME to export through cross-border e-commerce means that,if the government solely focuses on supporting SMEs in a singular aspect,such as offering training and capacity building,it may not yield the desired effectiveness as it fails to tackle the multitude of

243、challenges comprehensively.On the other hand,any Government,however small its economy is,can adopt a holistic but selective strategy to support SME exports through a cross-border e-commerce system.The example of selling Rwandan coffee to China illustrates this strategy well(see box 2).First,the Gove

244、rnment of Rwanda focused on supporting the export of a key national product.Second,it targeted a large market in China where more and more consumers were drinking coffee.Third,it targeted partnerships with important Chinese e-commerce platforms such as Tmall Global which provides comprehensive logis

245、tics and services.Rwandan coffee stands as a cornerstone of the national economy,playing a pivotal role in both bolstering foreign exchange earnings and stimulating economic activity in rural areas.The agricultural sector of Rwanda includes more than 290 coffee growing cooperatives and approximately

246、 400,000 farmers dedicated to its cultivation.In 2018,a partnership between the Government and the e-commerce platform,Alibaba,enabled the sale of Rwandan coffee in China.Since then,sales of Rwandan coffee to China have increased 700 per cent.This growth not only reflects the increasing global deman

247、d for Rwandan coffee,but it also underscores the efficacy of leveraging e-commerce channels to expand market reach and drive economic growth.Several forms of stakeholder collaboration played a crucial role in the success of Rwandan coffee.2BoxBrew success through cross-border e-commerceCROSS-BORDER

248、E-COMMERCE FOR SME EXPORTS:OPPORTUNITIES,CHALLENGES AND POLICY RECOMMENDATIONS49POLICY RECOMMENDATIONS Government collaboration:The Government of Rwanda collaborated with Alibaba to launch the eWTP platform in Rwanda,aiming to simplify procedures and provide easier access to new markets for local co

249、mpanies.Additionally,the Embassy of Rwanda in China works with Chinese influencers and e-commerce platforms such as Taobao to promote Rwandan coffee.E-commerce platform support:Alibaba facilitates online sales events and livestreaming sessions,enabling Rwandan coffee producers,such as Gorillas Coffe

250、e,to reach Chinese consumers directly.They also provide training programmes for Rwandan policymakers,entrepreneurs and students to accelerate the development of Rwandas digital economy.Coffee producers:Gorillas Coffee and approximately 4,000 coffee farmers in six cooperatives throughout Rwanda sell

251、their products through the eWTP platform.Academic collaboration:Rwandan students are invited to study cross-border e-commerce in China,fostering knowledge exchange and capacity-building.This collaboration extends to various stakeholders,including government officials,entrepreneurs and university pro

252、fessors,contributing to the development of Rwandas digital economy.Consumer perspective:Chinese consumer demand for high-quality Rwandan coffee is met by the eWTP platform and online sales events.Strong demand encourages the continuation of cross-border trade despite the challenges posed by the pand

253、emic.Source:See recommendation 2.Introducing pilot projects before upscaling may effectively explore the way forward and reduce the risk of failureIntroducing pilot projects before upscaling can be a cautious but useful approach to promote the development of cross-border e-commerce.Given the challen

254、ges of developing cross-border e-commerce,setbacks and failures of projects on cross-border e-commerce should be expected.By running pilot projects and learning by doing,policymakers and other stakeholders may deepen their understanding on -50CROSS-BORDER E-COMMERCE FOR SME EXPORTS:OPPORTUNITIES,CHA

255、LLENGES AND POLICY RECOMMENDATIONSPOLICY RECOMMENDATIONScross-border e-commerce.In this respect,the experience of China can serve as useful reference(see box 3).Since the establishment of the first comprehensive cross-border e-commerce pilot zone in March 2015,the establishment of further comprehens

256、ive pilot zones have been approved in 165 cities in China.It can be easily argued that China is a large economy,and small economies may not be able to duplicate its experiences.However,the counterargument is that although China has a large economy and has developed cross-border e-commerce,its approa

257、ch of adopting piloting projects can likely be replicate by small economies that may wish to take a cautious approach before upscaling.The Comprehensive Cross-Border E-Commerce Pilot Zone(the first comprehensive pilot zone)was established in 2015 as a pilot district approved by the State Council of

258、China.It adopted specific management models and offered special preferential policies for e-commerce trade activities to achieve streamlined cross-border e-commerce.Since then,the establishment of comprehensive pilot zones in 165 cities has been approved.The“Six systems,Two platforms”model of Hangzh

259、ou Comprehensive Pilot Zone has been promoted across all comprehensive pilot zones.This model was designed to achieve consistent customs clearance and other various trade facilitations by enabling data exchange among departments such as customs,inspection and quarantine,tax bureau and foreign exchan

260、ge administration,to form a government management model of information data exchange,mutual recognition of regulations and mutual assistance of law enforcement.Through the exchange of data with institutions such as e-commerce platforms,logistics firms and banks,a higher level of financial and logist

261、ics services is achieved,e-commerce corporations derive substantial benefits from reducing the intricate challenges associated with financing,addressing the difficulties of remittance and foreign exchange,and lowering the logistical transportation costs.3BoxEstablishing pilot zones and pilot cities

262、for cross-border e-commerce in ChinaCROSS-BORDER E-COMMERCE FOR SME EXPORTS:OPPORTUNITIES,CHALLENGES AND POLICY RECOMMENDATIONS51POLICY RECOMMENDATIONSAccording to the customs documents No.56 and No.57 issued in 2014,the 1210 model(also known as the bonded import model)was designed to be carried out

263、 within the special regulatory areas of customs in pilot cities for cross-border import.In January 2020,six ministries including the Ministry of Commerce,the National Development and Reform Commission,the Ministry of Finance,the General Administration of Customs,the State Taxation Administration and

264、 the State Administration for Market Regulation jointly issued the“Announcement on Expanding the Pilot Project of Cross-Border E-Commerce Retail Imports”,expanding the pilot to 50 cities and regions,including the entire island located in Hainan Province.On 18 March 2021,these six ministries jointly

265、announced that the scope of the pilot cross-border e-commerce retail import would expand to all pilot free trade zones,comprehensive cross-border e-commerce pilot zones,comprehensive bonded zones,import trade promotion innovation demonstration zones,as well as the cities and region located at type B

266、 bonded logistics centres.Policy recommendation 3.Governments should actively participate in global and regional trade agreements covering cross-border e-commerceGovernments,even of small economies,should be active participants in global and regional trade agreements on cross-border e-commerce.Incre

267、asing attention has been given to cross-border e-commerce.For example,in January 2019,a joint statement of 76 members of the World Trade Organization(WTO)confirmed their intention to commence negotiations on trade-related aspects of e-commerce.They agreed to seek to achieve a high standard outcome t

268、hat builds on existing WTO agreements and frameworks with the participation of as many WTO members as possible.In Asia and the Pacific,provisions of cross-border e-commerce has been included in the Regional Comprehensive Economic Partnership(RCEP)and Agreement and the Comprehensive and Progressive A

269、greement for Trans-Pacific Partnership(CPTPP).As shown in Appendix 2,these provisions cover the areas on enabling digital trade/e-commerce,openness and digital trade/e-commerce,trust and digital trade/e-commerce and cross cutting issues.All these measures facilitate SME participation in internationa

270、l trade.-52CROSS-BORDER E-COMMERCE FOR SME EXPORTS:OPPORTUNITIES,CHALLENGES AND POLICY RECOMMENDATIONSPOLICY RECOMMENDATIONSBy participating in negotiating global and regional trade agreement,Governments of small economies have opportunities to voice their concerns on the key challenges of their SME

271、s in taking part in international trade through cross-border e-commerce.The negotiations may cover areas which reduce external barriers to SME exports,including procedural barriers,governmental barriers,business environment barrier,and tariff and non-tariff barrier.Fundamentally,cross-border e-comme

272、rce is largely underpinned by cross-border paperless trade.In this connection,all countries in Asia and the Pacific may take the advantage of the Framework Agreement on Facilitation of Cross-border Paperless Trade in Asia and the Pacific(CPTA),4 a multilateral treaty deposited with the Secretary Gen

273、eral of the United Nations,which entered into force in 2021.It was adopted by the United Nations Economic and Social Commission for Asia and the Pacific on 19 May 2016.A group of more than 25 members participated in the development and negotiation of the treaty between 2012 and 2016.It is designed a

274、s an inclusive and enabling platform that will benefit all participating economies regardless of where they stand in terms of trade facilitation or single window/paperless trade implementation.Achieving cross-border paperless trade in Asia and the Pacific is expected to cut trade costs of economies

275、in the region by about 25 percent,greatly enhancing the trade competitiveness of collaborating countries while increasing government revenue.As of February 2024,13 countries have ratified the treaty,including Azerbaijan,Bangladesh,China,the Islamic Republic of Iran,Kyrgyzstan,Mongolia,the Philippine

276、s,the Republic of Korea,the Russian Federation,Tajikistan,Timor-Leste,Turkmenistan,and Tuvalu.Armenia and Cambodia have signed the treaty,and more ESCAP member States are expected to join.A summary of key provision of the treaty and its relationship with other trade agreement is shown in box 4.4 Mor

277、e information on this treaty is available at www.unescap.org/projects/cpta.CROSS-BORDER E-COMMERCE FOR SME EXPORTS:OPPORTUNITIES,CHALLENGES AND POLICY RECOMMENDATIONS53POLICY RECOMMENDATIONSThe Framework Agreement on Facilitation of Cross-border Paperless Trade in Asia and the Pacific(CPTA)is a trea

278、ty between members of ESCAP.Key objectivesThe objective of CPTA is to promote cross-border paperless trade by enabling the exchange and mutual recognition of trade-related data and documents in electronic form and facilitating interoperability among national and subregional single windows and/or oth

279、er paperless trade systems,for the purpose of making international trade transactions more efficient and transparent while improving regulatory compliance(Article 1).Article 1 makes it clear that CPTA aims to promote and facilitate the development of paperless trade but does not bind the treaty part

280、ies to exchange data and documents with any other party.Rather,it provides the framework that enables those exchanges among the parties.In this sense,CPTA is an enabling treaty rather than a prescriptive one.Key provisions and features Article 5 lists general principles that should inspire the activ

281、ities of the parties to CPTA.These are:(a)functional equivalence;(b)non-discrimination of the use of electronic communications;(c)technological neutrality;(d)promotion of interoperability;(e)improved trade facilitation and regulatory compliance;(f)cooperation between the public and private sectors;a

282、nd(g)improving transboundary trust environment.Article 8,one of the most far-reaching articles in CPTA,sets the goal of achieving mutual recognition of trade-related data and documents in electronic form.Parties interested in exchanging data and documents among themselves need to agree on a substant

283、ially equivalent level of reliability for the data or documents to be exchanged(Article 8).The operationalization of mutual recognition and exchange will likely require additional bilateral agreements,whose models and guidelines are being developed.In line with Article 12,each party is expected to s

284、et its implementation timeline based on its own readiness assessment and national priorities as well 4BoxKey provisions of the Framework Agreement on Facilitation of Cross-border Paperless Trade in Asia and the Pacific-54CROSS-BORDER E-COMMERCE FOR SME EXPORTS:OPPORTUNITIES,CHALLENGES AND POLICY REC

285、OMMENDATIONSPOLICY RECOMMENDATIONSas resource availability.Hence,no specific timeline is provided for actions and tasks to be performed by individual parties.One prominent feature of CPTA is the mechanism for capacity-building and technical assistance.This mechanism aims to support the deployment of

286、 pilot and other projects on cross-border paperless trade on the basis of the technical and legal reference documents and guidelines developed under the agreement(Article 13).It also supports technical assistance and cooperation arrangements,with special consideration for least developed and landloc

287、ked developing countries(Article 14).Relation to domestic laws Countries do not need to change their domestic laws and regulation relating to paperless trade prior to accession to CPTA.Relation to other global,(sub-)regional and bilateral initiatives The CPTA is complementary to the WTO Agreement on

288、 Trade Facilitation(TFA)and supports the full implementation of the WTO TFA in an electronic environment.Participating in CPTA can help Governments to meet the requirements of many provisions of the WTO TFA,including those related to formalities connected with importation and exportation and transit

289、(Article 10),release and clearance of goods(Article 7),and border agency cooperation(Article 8).The treaty builds upon and supports bilateral and regional initiatives.It provides a platform for members to promote the solutions they have developed bilaterally and(sub-)regionally for adoption by other

290、 trade partners;and/or to develop better solutions they can use to implement related bilateral or(sub-)regional commitments.CROSS-BORDER E-COMMERCE FOR SME EXPORTS:OPPORTUNITIES,CHALLENGES AND POLICY RECOMMENDATIONS55APPENDIXAPPENDIX 1 Provisions on cross-border e-commerce in the Regional Comprehens

291、ive Economic Partnership(RCEP)and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership(CPTPP)A:Enabling Digital Trade/E-CommerceProvisions in RCEPFacilitating electronic transactionsElectronic transaction frameworksE-authentication,digital certification and e-signaturesProvision

292、s in CPTPPArticle 12.10:Domestic Regulatory FrameworkAddressing licensing and authorisation procedures to avoid regulatory burden on electronic transactions,maintain a legal framework for e-commerce governing electronic transactions as per applicable international conventions and model lawsArticle 1

293、2.6:Electronic Authentication and Electronic Signature Encourage the use of interoperable electronic authentication,encourage paper less training,not limit the recognition of electronic authentication technologies and Article 14.5:Domestic Regulatory FrameworkAddressing licensing and authorisation p

294、rocedures to avoid unnecessary regulatory burdenArticle 14.6:Electronic Authentication and Electronic SignatureLegal valid and interoperable Electronic Authentication&Signatures,No Prohibition to appropriate electronic authentication for an electronic transaction-56CROSS-BORDER E-COMMERCE FOR SME EX

295、PORTS:OPPORTUNITIES,CHALLENGES AND POLICY RECOMMENDATIONSAPPENDIXDigital trade facilitationE-contracts Paperless trading Customs warehouses/free zones Electronic invoicingNo ProvisionArticle 14.9:Paperless TradingMake trade administration documents available to the public in electronic form,accept t

296、rade administration documents submitted electronically as the legal equivalent of the paper versionArticle 14.3 Customs Duties Provision to impose internal taxes,fees or other charges on content transmitted electronicallyNo Provision implementation models for electronic transactions Not limit the re

297、cognition of electronic authentication technologies No ProvisionArticle 12.6:Paperless TradingImplementing initiatives which provide for the use of paperless trading,taking into account the World Customs Organization methodsArticle 12.11:Customs DutiesParty can impose taxes,fees,or other charges on

298、electronic transmissions such that taxes,fees,or charges are imposed in a manner consistent with this Agreement.Article 12.5:Paperless Trading Accept electronic trade administration documents as the legal equivalent of the paper versionCROSS-BORDER E-COMMERCE FOR SME EXPORTS:OPPORTUNITIES,CHALLENGES

299、 AND POLICY RECOMMENDATIONS57APPENDIX Electronic transferable record Facilitation of logistics and e-payments Customs duties on electronic transmissionsNo ProvisionNo ProvisionArticle 12.11:Customs DutiesNot imposing customs duties on electronic transmissions between the Parties in accordance with t

300、he WTO Ministerial Decision of 13 December 2017No ProvisionArticle 14.6:Electronic Authentication and Electronic Signatures Facilitate input by interested persons in the development of its legal framework for electronic transactions,endeavour to avoid any unnecessary regulatory burden on electronic

301、transactionsArticle 14.3:Customs DutiesProhibition against custom duties on electronic transmissionsCustoms DutiesB:Openness and Digital Trade/E-CommerceNon-discrimination and liability Non-discriminatory treatment of digital productsNo ProvisionArticle 14.12:Internet Interconnection Charge SharingS

302、upplier seeking international Internet connection should be able to negotiateArticle 14.4:Non-Discriminatory Treatment of Digital ProductsNo discrimination -58CROSS-BORDER E-COMMERCE FOR SME EXPORTS:OPPORTUNITIES,CHALLENGES AND POLICY RECOMMENDATIONSAPPENDIXto foreign countrys digital products or fa

303、vourable treatment to domestic digital products/services.Excludes Broadcasting and does not apply to subsidies or grants provided by a Party,including government-supported loans,guarantees and insurance.Article 14.8:Personal Information Protection(except Brunei Darussalam and Viet Nam)Endeavour for

304、non-discriminatory practices in protecting users of electronic commerce;encourage the development of mechanisms to promote compatibilityNo ProvisionNo ProvisionArticle 14.11:Cross-Border Transfer of Information by Electronic MeansAllow the cross-border transfer of information by electronic means,inc

305、luding personal information Prior authorization Interactive computer services(limiting non-IP liability)Cross-border transfer of informationNo ProvisionNo ProvisionArticle 12.15:Cross-Border Transfer of Information by Electronic Means(Except Cambodia,Lao PDR,and Myanmar)Allow the cross-border transf

306、er of information by electronic means,Flow of informationCROSS-BORDER E-COMMERCE FOR SME EXPORTS:OPPORTUNITIES,CHALLENGES AND POLICY RECOMMENDATIONS59APPENDIXincluding personal informationArticle 12.14 Location of Computing Facilities(Except Cambodia,Lao PDR,and Myanmar)No Party shall require a cove

307、red person to use or locate computing facilities in that Partys territory as a condition for conducting business in that Partys territory.No ProvisionArticle 12.3:ScopeThe provision of Chapter-12 E commerce in RCEP shall not apply to government procurement.Article 12.10:Domestic Regulatory Framework

308、Countries to avoid any Location of computing facilities Location of financial computing facilities Open government data Access to the InternetArticle 14.13:Location of Computing Facilities as per Business RequirementsNo mandatory requirement to use or locate computing facilities in that Partys terri

309、tory for conducting business in that territory.Article 14.13:Location of Computing Facilities as per Business RequirementsParty can mandate localized computing facilities or use to achieve a legitimate public policy objective without unjustifiable discrimination or disguised trade restrictionNAArtic

310、le 14.10:Access to and Use of the Internet for Electronic CommerceAccess to Internet and data-60CROSS-BORDER E-COMMERCE FOR SME EXPORTS:OPPORTUNITIES,CHALLENGES AND POLICY RECOMMENDATIONSAPPENDIXAccess to online platforms/competitionunnecessary regulatory burden on electronic transactions.No Provisi

311、onConnect the end-user devices of a consumers choice to the Internet,provided that such devices do not harm the network;access and use services and applications of a consumers choice available on the internetNo ProvisionC:Trust and Digital Trade/E-CommerceTrust and digital trade/e-commerce Online co

312、nsumer protection SpamArticle 12.8:Online Consumer ProtectionLegal framework which ensures the protection of personal information of the users,cooperation between their respective competent authorities,Judicial persons to publish policies and procedures related to the protection of personal informat

313、ion including on the internetArticle 12.9:Unsolicited Commercial Electronic Messages Adopt or maintain measures a)facilitate the ability of recipients Article 14.7 from Article 16.6.5&Article 16.6.6:Online Consumer ProtectionMandatory Regulatory framework for Online Consumer ProtectionArticle 14.14:

314、Unsolicited Commercial Electronic Messages(except Brunei Darussalam)Mandatory Regulatory Unsolicited CROSS-BORDER E-COMMERCE FOR SME EXPORTS:OPPORTUNITIES,CHALLENGES AND POLICY RECOMMENDATIONS61APPENDIXPrivacyBusiness trust Protection of personal information/privacy Source codeto stop UCC b)require

315、the consent to receive commercial electronic messages c)provide for the minimisation of UCCArticle 12.8:Online Consumer ProtectionLegal framework which ensures the protection of personal information of the usersNo ProvisionCommercial Electronic Messages:ability of recipients to prevent UCC electroni

316、c messages from suppliers,require the consent,Provide for minimisation,recourse against non-compliant suppliersArticle 14.7 from Article 16.6.5&Article 16.6.6:Online Consumer Protection:Transparent effective measures to protect consumers across e-commerceArticle 14.8:Personal Information Protection(

317、except Brunei Darussalam and Viet Nam)Individuals can pursue remedies on the personal information protections for e-commerceArticle 14.17:No mandated transfer of and/or access to source code Services for conducting BusinessNo mandatory requirement to transfer/access to source code of software owned

318、by a person of -62CROSS-BORDER E-COMMERCE FOR SME EXPORTS:OPPORTUNITIES,CHALLENGES AND POLICY RECOMMENDATIONSAPPENDIXanother Party for its import,distribution,sale.Includes mass-market software or products and excludes software used for critical infrastructure and excludes patents applications or gr

319、anted patents subject to safeguards against unauthorized disclosureArticle 14.6:Electronic Authentication and Electronic Signatures No Prohibition to appropriate electronic authentication for an electronic transaction(certain performance standards or is certified by an authority with respect to its

320、law)ICT products that use cryptographyNo ProvisionD:Cross-cutting issuesTransparency Publication and accessibility of laws and regulationsArticle 12.12:Transparency Publish all relevant measures of general application pertaining to or affecting the operation of Chapter-12 E commerce in RCEPArticle 1

321、2.8:Online Consumer Protection Members to publish information on the consumer protection for e commece:a)Article 14.14:Unsolicited Commercial Electronic Messages(except Brunei Darussalam)Cooperate in appropriate cases of mutual concern regarding the regulation of unsolicited commercial electronic me

322、ssagesArticle 14.15:CooperationEncourage private CROSS-BORDER E-COMMERCE FOR SME EXPORTS:OPPORTUNITIES,CHALLENGES AND POLICY RECOMMENDATIONS63APPENDIXsector led self-regulation for e-commerce,including codes of conduct,model contracts,guidelines and enforcement mechanisms;exchange information and sh

323、are views on consumer access to products and services offered online among other countriesArticle 14.15:CooperationParticipate regional and multilateral fora to promote the development of electronic commerceconsumers can pursue remedies;(b)business can comply with any legal requirementsArticle 12.4:

324、CooperationEncourage business sectors to develop practices for accountability and consumer confidence across e commerceArticle 12.16:Dialogue on Electronic Commerce“Conduct a dialogue across parties for current and emerging issues on e-commerce in accordance with Article 18.3(Functions of the RCEP J

325、oint Committee).such as-such as the treatment of digital products,source code,and cross-border data flow and the location of computing facilities in financial services;anti-competitive Opportunities to comment-64CROSS-BORDER E-COMMERCE FOR SME EXPORTS:OPPORTUNITIES,CHALLENGES AND POLICY RECOMMENDATI

326、ONSAPPENDIX Mechanisms for reporting and notifications Cybersecuritypractices,online dispute resolution,and the promotion of skills relevant for electronic commerce”Article 12.9:Unsolicited Commercial Electronic Messages(Except Cambodia,Lao PDR,Myanmar and,Brunei)Recourse against noncompliant suppli

327、ers of UCC senders of electronic messagesArticle 12.10:Domestic Regulatory Framework Maintain a legal framework for e-commerce governing electronic transactions as per applicable international conventions and model lawsArticle 12.13:Cyber Security Using existing collaboration mechanisms to cooperate

328、 on matters related to cyber security.CybersecurityArticle 14.15:Member CooperationArticle 14.14:Unsolicited Commercial Electronic Messages(except Brunei Darussalam)Recourse against non-compliant suppliers of unsolicited commercial electronic messages by each country;cooperate in appropriate cases o

329、f mutual concern regarding the regulation of unsolicited commercial electronic messagesArticle 14.16:Cooperation on Cybersecurity Matters Building the capabilities of their national entities responsible for computer security incident responseArticle 14.16:Cooperation on matters of Cyber Security(ide

330、ntify and mitigate malicious intrusions)Building the capabilities of their national entities responsible for CROSS-BORDER E-COMMERCE FOR SME EXPORTS:OPPORTUNITIES,CHALLENGES AND POLICY RECOMMENDATIONS65APPENDIXCapacity buildingcomputer security incident response;identify and mitigate malicious intru

331、sions that affect the electronic networks of the Parties.using existing collaboration mechanismsArticle 14.16:Cooperation on Cybersecurity Matters Building the capabilities of their national entities responsible for computer security incident responseArticle 14.15 Cooperation Assist SMEs to overcome

332、 obstacles to its e commerce on regulations,enforcement and compliance across(PII,UCC,authentication,e-government,security in electronic messages,online consumer protection)Article 14.8:Personal Information Protection(except Brunei Darussalam and Viet Nam)Encourage the development of mechanisms to A

333、rticle 12.13:Cyber SecurityBuilding the capabilities of their respective competent authorities responsible for computer security incident responsesArticle 12.12:Transparency“Party shall respond as promptly as possible to a relevant request from another Party for specific information on any of its measures Options for capacity building and technical assistance Cooperation between stakeholders,agenc