Maritime Anti-Corruption Network

Transcription

1 Maritime Anti-Corruption Network National Single Windows International Business Integrity Conference, Jakarta, November 2016

2 MACN Vision and Mission Vision: A maritime industry free of corruption that enables fair trade to the benefit of society at large Mission: To promote good corporate practice in the maritime industry for tackling bribes, facilitation payments and other forms of corruption 2

3 MACN Members Regular Members 18 Associate Members Strategic Advisors

4 MACN s two fundamental work streams: Internal: Focus on strengthening MACN members anti-corruption programs - Walk the talk Implement MACN s Anti- Corruption Principles Developing policies and standards Sharing best practices Creating tools Report on performance External: Engage with stakeholders to improve the operating environment Raise awareness on challenges & report on corruption trends Engaging in multi-stakeholder dialog with business, government, and local and international civil society organizations Design solutions in collaboration with stakeholders 4

5 MACN Collective Action Portfolio and Partners China Egypt India Nigeria Indonesia Argentina Implementation Partners Recognition from 5

6 Challenges and approaches in Indonesia Indonesian ports identified as a corruption hotspot by MACN member companies. KEY CHALLENGES Common requests for facilitation in form of in-kind demands Refusing to accommodate results in delays or fines COLLABORATIVE PROBLEM SOLVING Improving dialog and communication Establishing mutual understanding of challenges KPK Private Sector Kemitraan & other CSOs DG Customs & Excise MACN UKFCO Pelindo II/JICT TPK Koja 6

7 Agreed upon Actions in Indonesia 1. Establish an improved container tracking IT system that is transparent for cargo owners 2. Establish a monthly stakeholder forum, where government agencies and the maritime industry convene to discuss integrity challenges 3. Raise awareness about SOPs and regulations related to goods transfer and import procedures 4. Integrate whistleblowing reporting into existing business processes and SOPs 5. Develop an action plan for a cash-less system for the vessel departure process for export 7

8 Single Window Systems National Single Window systems allow traders to submit all import, export, and transit information required by regulatory agencies via a single electronic gateway, instead of numerous times to different government entities, including some that are automated and others that still rely heavily on paper. Source: World Bank, UNCITRAL 8

9 Value of Single Window Systems The introduction of single-window systems has positive effects on Governance Transparency Efficiency Ultimately helping facilitate trade and economic development Positive impacts are evident from e.g.: Singapore Georgia Korea Qatar Japan Korea Thailand Philippines 9

10 1. Value of Single Window Systems Private Sector Cutting Costs Through Reducing Delays Faster Clearance & Release Predictable Application and Explanation of Rules Effective & Efficient Deployment of Resources Increased Transparency Government Effective & Efficient Deployment of Resources Correct Revenue Yield Improved Trader Compliance Enhanced Security Increased Integrity & Transparency 10

11 Single Window Systems as anti-corruption solutions Single Window Systems can reduce corruption via increased levels of transparency and accountability Automated system captures data that can serve as an audit trail Greater clarity and systemization of SOPs and Regulations reduces individual discretion and associated opportunities for corruption e-payments and approvals reduce face-to-face interactions opportunities for illegal facilitation payment requests 11

12 Single Window Systems - Preconditions Implementation isn t easy. Not a simple plug and play activity; not possible to replicate what has worked in one country in another country...critical preconditions need to be in place, including: A strong business case based on a pragmatic assessment of risks, challenges and capabilities; A clear mandate from government backed by genuine political will; A realistic future vision owned by all stakeholders; Agreement on governance structures, including which agency will lead the initiative, with clear roles and responsibilities for all key stakeholders, and obligations and accountabilities for success; and A practical work program with key milestones matched by appropriate human and financial resources. Source: World Bank 12

13 Lessons Learned from other countries on private sector engagement 1. Early and Ongoing Involvement: Involve the private sector as early as possible to ensure private sector support for and use of the new system. 2. Define Requirements and pilot the system: Engage with the private sector to determine specifications and to test/enhance the system. 4. Offset Investment Costs: Consider offering financial assistance to the first group of companies willing to use and invest in the new system. 5. Communicate and Build Capacity: Arrange information sessions, make material and handbooks available, and offer comprehensive training programs on how to operate the new NSW system efficiently. 6. Establish Help Desk: Help Desk and technical support teams should be available 24/7. 7. Continue the Dialogue: Establish forums with the private sector to discuss how to further improve and develop the system. 13

14 Private Sector Actions Engage with the public sector to ensure the NSW system meets your business needs 1. Participate in defining the requirements for the system based on your needs 2. Partake in piloting the system and offer feedback 3. Define requirements for training and support functions for rolling out the system in your organization 4. Communicate and raise awareness about the NSW across your supply chain 5. Maintain the public-private sector dialogue to continuously improve the usefulness of the NSW 14

15 Karlyn Adams Associate Director BSR

16 BACK UP - Case Studies Singapore Malaysia Japan Korea 16

17 TradeNet Singapore Singapore established the world s first national single window for trade (TradeNet) in 1989, bringing together more than 35 border agencies. Today TradeNet handles more than 30,000 declarations a day, processes 99% of permits in 10 minutes. 17

18 Main Benefits of TradeNet Private Sector Increased Efficiency Reduction in the turnaround time for processing of typical trade documents from 2 4 days to as little as 15 minutes Cost Reduction Time saving for users from filling out single online form versus over 20 paper forms in the past Freight forwarders have reported savings of 25%-35% in handling trade documentation Government Cost Reduction Reduced trade documentation processing costs by 20% or more Faster Payments Customs moved from a system of post-approval of applications to preapproval, such that Customs duties are now pre-paid through electronic means and Customs receive payments faster Faster and more Accurate Statistics Enabled faster compilation of more accurate and complete external trade statistics 18

19 Key Success Steps: Singapore 1. Establish Multi- Agency Steering Committee The lead agency should set up and chair a multi-agency steering committee with private sector representation as early as possible. This will ensure private sector support for and use of the new system when it is developed. 2. Define requirements of the Primary Users of the System Government agencies are the primary users of the system and should take the initiative in consultation with the private sector to set up the NSW system for the benefits of all participants. 3. Offer Partial Government Grants to pilot system To defray part of the expenses and to enlist support, the government agencies may consider giving financial assistance to the first group of companies willing to use the new system 4. Training and Technical Support Comprehensive training programs need to be developed to train the staff of both the public and private sectors on how to operate the new NSW system efficiently. Help Desk and technical support teams must be available 19

20 Dagang Net Malaysia In the 1990s, Malaysia began to look for ways to move away from traditional paper-based document systems. In 2004 Malaysia completed the nationwide rollout. At present, Dagang Net covers both the maritime and aviation sector, and handles payment of duties and taxes. Since 2009 application and approval of import-export permits are managed via the system. 20

21 Main Benefits of Dagang Net Private Sector Speedier processing of permit applications resulting in reduction of days required to export. Longer service hours allow for greater and more flexible market activity. Improved service & customer satisfaction via 24/7 Careline Service Reduced red tape and associated manual labor costs Government Increased collection of customs duty payments Better compliance as seen in the huge increase from 40M electronic document transfers in 2003 to 275M in Better control and enforcement through risk management tools. More effective and efficient management of resources, in particular reduction of manpower needs and hardware costs. 21

22 NACCS Japan Japan first introduced a paperless trade system in 1978, which has evolved into a Single Window system. Sea-NACCS, which processes import/export by sea, was put into operation in In February 2010, Air/Sea-NACCS became one unified system 22

23 Key Success Steps: Japan Stakeholder Engagement Coordination among stakeholders was crucial to determine specifications of system. All of the relevant parties joined the coordination from the initial stage in moving toward the Single Window establishment. Communication and Training The NACCS Center arranges various explanatory meetings and uploads materials timely on their website. Helpdesk is available Participation of the Private Sector The Government of Japan has established forums with the private sector to take considerations by both private and governmental sectors into consideration. For example, the Ministry of Finance has organized the Public-Private Forum of Next Generation Single Window for this purpose. 23

24 UNI-PASS South Korea UNI-PASS single window system now connects 38 regulatory agencies to service 55 different documents as a one-stop service. The system has been recognized internationally - having been mentioned as Best Practice by the World Bank - and the Doing Business Report for Trading Across Border have evaluated the Korean time for import to be 2 days and for export 3 days, much lower than the OECD average. 24

25 Main Benefits of UNI-PASS Private Sector Reduced turnaround time: Koreanbased companies such as Samsung and LG, note that achieving rapid and predictable turnaround time is an important aspect of their competitive strategies. Reduced clearance procedure time by reducing the document preparation Reduced logistics cost by providing a faster clearance with annual cost savings increasing exponentially since its implementation. Savings of transmission cost by using e-documents Improved productivity by automating administrative work The total savings for the business community, estimate to be 1 billion and million USD Government Reducing clearance procedure time by reducing the document preparation Reducing logistics cost by providing a faster clearance with annual cost savings increasing exponentially since its implementation. Savings from transmission cost by using e-documents Improved productivity by automating administrative work Improved management, storage and retrieval of information and documents through use of Information Technology. The Korea Customs Service estimates that the introduction of its single-window system brought some $18 million in benefits in