THE DATA PIPELINE VISION: TOWARDS A GENERATION OF SMART SINGLE WINDOWS
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1 THE DATA PIPELINE VISION: TOWARDS A GENERATION OF SMART SINGLE WINDOWS Yao-Hua Tan Professor of rmation and Communication Technology Delft University of Technology Netherlands y.tan@tudelft.nl Vice-Chair Committee on Trade Trade Division UN Economic Commission for Europe 1
2 Trade Facilitation topics Single Window One time provisioning of business data to all government agencies Via on-line portal provided by the national government System-Based Control (vs. Transaction-Based Control) Authorized Economic Operator (AEO) Trusted Trader Certificate Green Lane : less inspections at the border Coordinated Border Management: integrate Customs controls with other inspection agencies Security Safety (Agricultural, Food) Indirect Taxes (e.g. VAT, Excise) 40% of Delay time at large Mainports is caused by Uncoordinated Inspections at the border Prof. Dr. Yao-Hua Tan
3 Virtual Border: Pushing controls away from the border (Walter Deffaa, DG Tax & Customs, EU, SAFE Framework of Standards, WCO) Formalities, possible controls Possibility of post clerance control or audit Formalities, possible controls Possibility of post clerance control or audit
4 Trade Facilitation Innovation some leading EU Customs administrations: Netherlands, United Kingdom, Finland, Sweden etc. Coordinated by European Commission Strong Partnership Customs-Trade Companies participate actively in pilots for customs innovation Strong Partnership Customs-Universities EU-funded innovation projects; e.g. ITAIDE, CASSANDRA 4
5 Prof. Dr. Yao-Hua Tan ITAIDE Solution Principles for Trade Facilitation Piggy-Back principle Reuse internal control measures of the company for government control purposes Reuse invoice data for customs control purposes Reuse business quality and process control evidence for othet cross-border inspections Food- and Pharmaceutical supply chains From Data Push to Data Pull Data push: business has to provide to each different government agency the data in the format they require. Data pull: government gets direct access to control data Direct Access for Customs into the ERP systems of inesses System-Based Audit Authorized Economic Operator (AEO)
6 CASSANDRA Objectives ( ) System-Based approach iness should be trustworthy Proven-in-Control Develop advanced IT to control their own business processes Extending results of previous EU research projects INTEGRITY, ITAIDE, SMART-CM etc. Prof. Dr. Yao-Hua Tan
7 CASSANDRA Objectives (2) Piggy-Back Principle; Customs can re-use high-quality data from businesses in the supply chain Current data (Manifest, Bill-of-Lading etc) is often produced by the logistic service provider not accurate enough for advanced risk analysis/business intelligence Re-use business s own control data & business intelligence for Customs & Tax control purposes Better Consignment data: 1. Data from multiple sources, in particular from the business source; i.e. consignor/container stuffing point. E.g. purchase order, invoice 2. Tracking Data Container Security Devices 7
8 CASSANDRA Objectives (3) Better exchange of risk data between governments and businesses via Data Pipeline Exchange high-quality (source) data via an interconnected network of public and private data processing organisations Port Community Systems e.g. Portbase, MCP, Dakosy, DBH, Portic etc. Government Single Window initiatives e.g. e-port, Digipoort Supply Chain Management software providers e.g. Descartes, GT-Nexus etc Technologies: Cloud computing, Web services Enable Data Pull Direct Access for Customs into the ERP systems of inesses 8
9 Data Pipeline: Future Customs and International Trade Systems (David Hesketh, Customs-UK & Frank Heijmann, Customs-NL) 3 rd Country Regulation EU Regulation Organisational layer Consignor or Exporter Freight Forwarder or 3PL Container/Carrier Freight Forwarder or 3PL Consignee or Importer Physical layer Data & Document layer CARGO Country A Port 1 Port 2 Country B CARGO CARGO CARGO 9
10 ICT Platform for the Netherlands 10 (Portbase) (Portbase) (Cargonaut) (Cargonaut) DigiPoort (data transport) DigiPoort (data transport) (governance module) (governance module) Customs Customs Agriculture Agriculture.. CBS CBS IVW IVW Port Authorities Port Authorities PCS events and services comm. links authorities (Portbase) (Portbase) (Cargonaut) (Cargonaut) DigiPoort (data transport) DigiPoort (data transport) (governance module) (governance module) Customs Customs Agriculture Agriculture.. CBS CBS IVW IVW Port Authorities Port Authorities PCS events and services comm. links events and services comm. links authorities Single Window
11 Data Pipeline as Evolution of Single Window (Rotterdam-Shenzhen Living Lab) 3 rd Country Regulation EU Regulation Data & Document layer DH L SICIS K+N Descartes Organisational layer Consignor or Exporter Freight Forwarder or 3PL Container/Carrier Freight Forwarder or 3PL Consignee or Importer Physical layer CARGO Country A Port 1 Port 2 Country B CARGO CARGO CARGO SW: e- Port SW: Digipoort 11
12 Drivers & Benefits Drivers: Management support from Customs Administration Key positions for senior innovation advisors; e.g. David Hesketh (UK Customs) Frank Heijmann (Netherlands Customs) Partnership Trade-Customs Most multi-national companies in UK, NL participate in innovation pilots with customs OPTICHAIN (Godfried Smit) Partnership Customs-Universities Benefits: 40% of Delay time at large Mainports is caused by Uncoordinated Inspections at the border, can be reduced to 4% Pushing Controls away from the Border System-Based Control Data Pipeline 12
13 Key Challenges Based on international Data/Message standards: UN/CEFACT Core Components, WCO Datamodel V.3 Develop Interoperability of key software providers E.g. Descartes, GTNexus, SICIS, DHL, Kuehne & Nagel Transformation from Document perspective to iness Data perspective Base Data models on iness Process Models (BPM) Example: Buy-Ship-Pay model Public-Private Partnership: collaborative development of data pipeline by all stakeholders; iness, Customs, IT providers Data Pipeline should be iness-driven Innovation 95% built by business, 5% by government Create right incentives for business to move in Prof. Dr. Yao-Hua Tan
14 Further info CASSANDRA: ITAIDE: 14
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