Single Window: Benin case
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1 Single Window: Benin case A practical case on how E-government adds value to trade May 14, 2013 Elie Sawaya
2 An interesting question. Is E-Government an added value for trade? The Benin Authorities asked the same question in May 2010 COTONOU Adapted from TradeHub 2
3 Benin Recurrent problems A lack of visibility over the customs revenues, which was an important issue for the Government as well for the International Monetary Fund and World Bank The inefficiency of the supply chain which materialized with: The permanent congestion of the Port of Cotonou High operating costs including multiple hidden (unofficial) payments Delays at many stages in the supply chain Delay Control Operational excellence Duty maximization COTONOU 3
4 Benin Some history Some attempts to establish a Port Community System were initiated during the last 20 years with no success to date. This was mainly due to the following factors: Exclusive IT approach No partner with consistent track record in Port Community Systems technology and Trade Facilitation experience Underestimation of change management Financial capacity of the service provider 4
5 Benin Implementation Agenda November 2010 February 2011 June 2011 October 2011 June 2012 July 2012 Signature of the PPP contract Pilote phase go-live E-manifest in production mode 100% management of Imports and Vehicles in transit Set-up of Transshipment phase Set-up of Export phase SEGUB concession 11 Months to deploy Immediate tangible results 5
6 Port Single Window Stakeholders CUSTOMS BROKERS & FREIGHT FORWARDERS IMPORTERS EXPORTERS MINISTRIES CUSTOMS TERMINALS CONCESSION PORT AUTHORITY WAREHOUSES LOGISTIC ZONES SHIPPING AGENTS COTONOU PORT SINGLE WINDOW BANKS GOVERNMENTAL AGENCIES TRANSPORTERS VETERINARY SERVICES ON BEHALF OF THE GOVERNMENT TECHNICAL AGENCIES CHAMBERS OF COMMERCE TRANSIT: DESTINATION COUNTRY AUTHORITIES INSPECTION COMPANIES 6
7 Technical solution architecture Client (system) (système) INTERNET INTERNET Client (human) (humain) EXTRANET ou or Private Réseau network Privé... Security Couche Layer sécurité Couche Communication de communication Layer Translation, Serveurs Web, Web traduction, servers, historisation, Traduction Couche Application application Layer Persistence Couche persistance Layer Administration et & Supervision 7
8 Benin Change Management Process Government leadership in the implementation Weekly follow-up meetings with the different ministries and the operator covering the project progress Monthly Steering Committee Over 1200 people trained (freight forwarders, customs agents, shipping agents, cargo handlers, banks, importers, exporters, etc.). An intensive communication plan with a Port Single Window data platform website Port community stakeholders satisfaction Numerous visits of the President of the Republic accompanied by Heads of State in the sub-region to develop corridors Training Commission Supervision Committee (ministers) Steering Committee (stakeholders) Procedures Commission Change Management Commission Working group Working group Working group Working group Working group Working group 8
9 Benin Political and Operational Success Increased state revenue Transparent customs transactions Reduced transit time at port Increased reliability of port procedures Renewed confidence in the port of Cotonou as an African port hub for the sub-region Visit of the Secretary General of World Customs Organization Benin won two ranks in the World Bank Doing Business report Visit of the Presidents of Niger and Benin 9
10 What to expect as an added value for trade? Improved and transparent B2G process Improved efficiency in the supply chain : Cotonou port Ship Waiting Time went down from 8 days to 48 hours (Source: Benin Customs) Trade facilitation through a better information broadcast on formalities and simplification of procedures Customs revenues from the port increased by 25% - 261M in 2011 and 364 M in 2012 although the traffic increased by just 10% (Source: Benin Customs) Structures like the CNCB (Conseil National des Chargeurs Béninois) tripled their revenues (Source: Benin Customs) Visibility at international: Single Window in the Port of Cotonou is recognized by the international finance institutions as a reform able to enhance trade facilitation with Benin 10
11 What to expect as an added value for trade? International visibility Single Window in the Port of Cotonou is recognized by the international finance institutions as a reform able to enhance trade facilitation with Benin 11
12 Added value for trade: Tangible results on Invoicing Invoicing time has been reduced on average by 75% Average time of invoice issuing (issued BAED) In Hours 12
13 Tangible results Container Dwell Time for Imports Another added value for trade is the Container dwell time reduction for imports Dwell time for containers (Import ) has been reduced From 39 to 6 Days Break Down of Container Dwell Time for Imports Time of loading // BFU ok MSI Time of payment //BFU issued - BFU ok Time of Admin. steps (customs excluded) // BAED BFU issued Time of customs declaration validation// VAQ - BAED Time of discharge // ATA - VAQ 13
14 Tangible results Container Dwell Time for Transit An added value for neighboring countries and the hinterland Dwell time for containers (Transit) has been reduced From 46 to 8 Days Break Down of Container Dwell Time for Transit Time of loading // BFU ok - MSI Time of payment //BFU issued - BFU ok Time of Admin. steps (customs excluded) // BAED BFU issued Time of customs declaration validation// VAQ - BAED Time of discharge // ATA - VAQ 14
15 A Success Story in Benin For Africa Cotonou Port Single Window is a Success Story that can be replicated. Choosing a PPP-Concession agreement is the most promising vehicle for the Government requiring no usage of public financial resources while providing efficient operations and immediate added value for trade. 15
16 Thank you!
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