2007/SCCP/ACBD/007. Time Release Survey. Submitted by: Japan Customs Brokers Association

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1 2007/SCCP/ACBD/007 Time Release Survey Submitted by: Japan Customs Brokers Association APEC Customs-Business Dialogue Sydney, Australia 29 June 2007

2 Session 2 APEC ACBD Time Release Survey June 2007 Japan Customs Brokers Association 1

3 Customs brokerage & JCBA Japan s TRS Effects, Factors & Impacts Further reduction of lead time Future survey Safe Framework 2

4 Physical distributors Customs brokers Forwarders Warehouse operators Domestic carriers 3

5 JCBA Establishment 1947 The first organized group of the export & import handlers union 1968 Reform into JCBA, Enactment of Customs Brokerage Law 1994 JCBA, A corporate juridical person, under auspices of Ministry of Finance 4

6 Member companies Tokyo 261 Hakodate 48 Yokohama 262 Osaka 229 Moji 123 JCBA 1347 Nagoya 154 Kobe 210 Okinawa 18 Nagasaki 42 5

7 IFCBA IFCBA Member Countries Angola Argentina Australia Canada China Greece Hungary India Israel Jamaica Japan Kazakhstan Korea Mauritius Mexico Moldova Mongolia Myanmar Nepal New Zealand Nigeria Philippines Poland Portugal Russia Spain Sri Lanka Turkey USA Uruguay 6

8 Objectives of the TRS To identify bottlenecks for cargo clearance procedures. To take structural reform measures Customs, other government agencies, and related private sectors. 7

9 Scope of TRS Order Overseas consignor Loading Overseas Port Departure of Vessel Domestic Port Arrival at port Customs area Unloading TRS Coverage General process (container yard) Import declaration Import permission Consignee Delivery 8

10 Japan s s TRS (parties involved) Customs Other Government Agencies Plant Quarantine Office Animal Quarantine Office Food Sanitation Office Import License Control Office, etc Customs Brokers 9

11 Role in survey To fill out and submit the questionnaire to customs Questionnaire 1 for customs procedures Questionnaire 2 for other procedures 10

12 Questionnaire 1 Arrival time Month Day Time Carry-in time Month Day Time Reasons for delay from arrival to carry-in Lodging time Month Day Time Reasons for delay from carry-in to lodgment Lodging time of supporting docs. Month Day Time Reasons for delay in lodgment 11

13 Questionnaire 2 Quarantine, Food sanitation Application by 1. System 2. Document Office applied for Application No. Pharmaceutical, Others Before/after arrival 12

14 Japan s s TRS Types of goods: All cargoes. Sampling: Random sampling using computer system Number of Samples (8 th TRS) Sea Cargo: 2,800 Air Cargo: 4,100 13

15 Result of TRS (Sea Cargo) Days Days Days Days Days Days Days Days Arrival-Unload 14 Unload-Declaration Declaration-Permission

16 Result of TRS (Air Cargo) Days Days Days Days Days Days Days Days Arrival-Unload Unload-Declaration Declaration-Permission 15

17 Significant factors for Lead Time Reduction Computerization of agencies systems (Risk Management) Pre-arrival Examination Large-scale X-ray X Inspection Equipment 16

18 Single Window (Japan) Single input and Single transmission Shipping Company Shipping Agent Customs Broker Sea-NACCS Single Window the Crew Landing Permit Support System Port-EDI system Customs License Immigration Port Management Organization Port Master Animal/Plant Quarantine Health 17

19 What is pre-arrival Examination system? Departure Oversea Port Arrival Japanese Port Store cargoes or containers in Customs Area including container yards Import Declaration Document examination Import Permission Regular Import Declaration Pre-arrival examination Pre-arrival Declaration Document examination Import permission 18

20 Introduction of Container X-rayX 19

21 Effects of reduction of lead time for cargo owners Direct Effects Indirect Effects Cargo owners --Reduction of clearance time from arrival to permission -Greater reliability of importing customs clearance time -Time reduction from carrying-in to permission --Reduction of lost sales opportunities -Average stock reduction --Reduction of minimum stock due to adoption of JIT -Increased flexibility in use of free time 20

22 Elements of Reduction of lead Time Effect for Distribution Operators Shipping companies Direct Effects -Reduction of quayside time -Reduction of container yard rental time Indirect Effects -Reduction of costs per port call -Reduction of container yard rental costs Terminal operators -Higher work efficiency and reduction of work time -Reduction of work costs -Response to cargo owner s (shipping forwarder s) needs for faster handling Shipping forwarders -Higher work efficiency and reduction of work time -Reduction of work costs -Reduction of malfunction costs Truck operators -Punctuality of pickup time -Higher truck turnover rates 21

23 Quantitative impacts (sea cargo) 327 million USD in total Cargo owners 296 USD Stock reduction impact Worth approximately 273 million USD Storage cost reduction impact Worth approximately 18 million USD Interest cost reduction impact Worth approximately 5 million USD 22

24 Quantitative impacts Shipping companies Worth approximately 30 million USD Terminal operators Worth approximately 0.7 million USD Customs brokers Worth approximately 0.2 million USD 23

25 Specific Examples of Effects Air transportation to Marine Hot delivery of apparel on weekend Not every cargo is in a hurry for delivery -Seven day free time for dry containers -Three days free time for reefer container 24

26 Result of TRS (Air Cargo) Days Days Days Days Days Days Days Days Arrival-Unload Unload-Declaration Declaration-Permission 25

27 Further reduction of Lead time Unloading-declaration declaration Input House B/L Simplification of supporting documents, unified form of invoice, rules of origin Advance Classification Ruling System Advance Information from Importers 26

28 Future Survey Importers intention Types of cargoes 27

29 Between agencies in exporting country & importing country EDI Mutual recognition of AEO status 28

30 Thank you! Daizo Nakayama Managing Director, Japan Customs Brokers Association Fax No.: