UNNExT workshop on Paperless trade facilitation for Small and Medium-sized Enterprises

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Elisabeth Shields
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1 UNNExT workshop on Paperless trade facilitation for Small and Medium-sized Enterprises 2-4 February 2015 United Nations Conference Center (UNCC) Bangkok, Thailand

2 Single Window Development and Implementation Experience of Singapore

3 Agenda Experience of Singapore: The Single Window Implementation The Next Big Thing: Integrated Single Window e-logistics Single Window Inter-operability

4 Background Making Waves Since the 1980s ( Singapore Roadmap ) First Wave National Computerisation Plan Early 80s Second Wave National Third Wave ITPlan Mid 80s IT2000 Early 90s Fourth Wave Infocomm21 Late 90s Fifth Wave Connected Singapore TradeNet Conceptualized in 1986 as part of National IT Plan Implemented in 1st Jan 1989 by Singapore Customs

5 TradeNet Process Background Trade & manifest info Traders Permit Applications EDI VAN Operator Cargo Clearance Cargo Clearance Permits Controlling Agencies Singapore Customs Checkpoints (ICA - Immigration Checkpoint Authority)

Background The Path of TradeNet 1988-1990 Version 1.0-1.5 Implemented Electronic Submission Declarations were batched up Turnaround time in few days 1991-1994 Version 1.6-1.

6 Background The Path of TradeNet Version Implemented Electronic Submission Declarations were batched up Turnaround time in few days Version Improved validations & features Incorporated GST requirements Turnaround from hours to ~30 minutes Version Interactive TradeNet Integrate Internal Systems Business intelligence/risks profiling Approval within 2-5 minutes 2003 Version Ver 4.0 Major business process streamlining Incorporated Export Control Consignment System (ECCS) New HS Code (Asean Harmonized Tarrif Nomenclature)

7 Design and Development Process Formation of TradeNet Working Committee Chaired by NCB (currently NCS) and Customs Business Process Study Trade documentation business processes Review all Manual processes involved Standards Definition Study and Review Goods Classification Legal Policy Support Introduction of Electronic Transaction Act Evaluate Technology

8 Design and Development Process Systems Design Consolidate Data Element to form TradeNet specifications. Operations Plan SOP & Contingency Measure Performance Evolve, Improve and Enhance Payment of Duty and GST via Electronic means ( GIRO )

9 Structure and Services Submission of TradeNet applications # Import/ Export/ Transshipment # Controlled/Non-controlled/Strategic goods # Payment/Non-payment # Cert of origin and other applications Amendment & Cancellation of TradeNet applications Auto Process of TradeNet applications (more than 1000 validation rules) Enquiry on application status via 24-hours IVR ( Interactive Voice Response System ) Auto deduction of duty/gst via GIRO Paperless clearance for TradeNet permits (CCS)

10 This image cannot currently be displayed. Technology Current Structure of TradeNet Front-end Software EDI ( Using UNEDIFACT format) Dial-up or Internet VAN Operator Leased Line TradeNet Backend (Customs & Controlling Agencies) Gov t Network Customs Backend Systems (eg. Cargo clearance, Revenue Mgmt, etc.) Client-based Software, Integrated with Trader s Inhouse System or Web-based Software IBM zseries MQ Series J2EE Database Interactive Processing Online Processing Auto- Routing (btw Customs & CAs) Centralised Customs database

11 Government Agencies Participants Singapore Customs ( System Owner ) Controlled Agencies ( e.g. AVA, SPF, etc ) IRAS ( Accounting of GST collection ) RCB ( Registration of Company and Business) IE Singapore ( Statistics department ) Chambers of Commerce for COO Private Sectors Systems Integrator and Operator (NCS) Front-end vendors ( e.g. IPACS, SCS, PSA Portnet) VAN operator (e.g. Crimson Logic)

12 Clients Users: Importers/Exporters Freight Forwarders/Carriers 3rd or 4th Party Logistic Companies ( 3PL/4PL ) Port/Terminal Operators (PSA, Jurong Port) Other Trade communities/portals (Warehouse Operators, CCN) Statistics: 3,000+ registered declarant agents 1,000+ customs staffs 30,000 transactions per day.

13 Business Model Front-End Systems Development funded by the Government. Operated as an ASP model with transaction charges Backend System Development funded by Government Operation outsourced to private sector (NCS)

14 Single Window Benefits Results To the Traders: Simplified commercial framework for both domestic and international trade Faster turnaround time (average approval within 5 minutes) Improved Convenience and efficiency Productivity improvement and Costs saving Faster customs clearance w/ paper-less and cashless transactions To the Government: Increased effectiveness of control methods More effective and efficient deployment of resources Improved trader compliance Facilitates business intelligence through better/faster data capturing Accelerated economic development & Encourage Foreign Investment

16 Critical Success Factors Conduct BPR within agencies to remove redundancy and streamline processes and procedures (for both manual and automated systems) Use industry standards for electronic messaging to ease adoption (e.g. UNEDIFACT, ebxml, RosettaNet ) Standardise practises on trade documentation and Goods classification ( to achieve cross border trading ) Close Collaboration & Consultation with all parties involved, including private sectors

17 Future Plans Singapore TradeNet: Liberalisation of VAN for competitive pricing & services Deeper integration into trade communities & processes Objective is to reduce duplicate data entry, facilitate information sharing and increase cost savings. Centralised platform to act as National Hub to facilitate trade activities

18 Integrated Single Window e-logistics Integrated Single Window e-logistics A neutral and open platform enabling the integration and collaboration among trade, logistics, financial and government communities to fulfill import, export or transit processes and documentation through electronic means, in order to increase information velocity, visibility and accuracy. Single-Window for all logistical information, requests, and exchange. Trade Declaration will be one of the Core Applications Owned and Run by Government or Private Sector

Integrated Single Window e-logistics A Logistics

Shipping Instructions Statuses/ Changes Exporter BL

Bank LC Application Rates & Schedules Freight

Ports & International Carriers Importer % Data

19 Integrated Single Window e-logistics A Logistics Scenario Today: BL, Invoice, Pack List, etc LC Shipping Instructions Statuses/ Changes Exporter BL Bank/ Insurance P.O. Bank LC Application Rates & Schedules Freight Forwarders Declaration/ Permits Domestic Carriers Sea Ports & International Carriers Importer % Data Re-entry? Customs Imagine the scenario of 2000 shippers, 200 LSPs, 20 Banks, 20 Carriers? Manual or electronic communication

20 Integrated Single Window e-logistics Key Issues in e-logistics Today:

Integrated Single Window e-logistics Integrated Single Window

Changes Shipping Instructions Rates & Schedules Draft BL Open

Permit OBL Draft BL Shipping Instructions Value-Add Solutions

Declaration/ Permits Bank/ Insurance Sea Ports &

21 Integrated Single Window e-logistics Integrated Single Window e-logistics Scenario Exporter Freight Forwarders Statuses/ Changes Shipping Instructions Rates & Schedules Draft BL Open Standards Schedule/ Status Message Translation Services Permit OBL Draft BL Shipping Instructions Value-Add Solutions Service Oriented Architecture BL, Invoice, Pack List, etc OBL Declaration/ Permits Bank/ Insurance Sea Ports & International Carriers Electronic communication 3PL/ Domestic Carriers Customs

22 Integrated Single Window e-logistics Key Benefits of Integrated S.W. e-logistics

23 Single Window Inter-operability Business Value Chain Towards S.W. Global Trade >2005 s >2010 s? Integrated S.W. Global Trade <1980s Detached >1985 Agency Portals >1995 Single Window Customs Integrated S.W. e-logistics Integration Scope Pre-Internet Era B2B -> B2ga G2G -> B2G N2N

24 Single Window Inter-operability The Problem Source: Andrey Masalovich, Natalia Makarycheva

25 Single Window Inter-operability Why the need for cross-border inter-operability? The landscape of global business is being shaped and driven by: Increased scale of competition: 1980 s - Competition of Product Superiority (TQM) 1990 s - Competition of Supply Chain (B2B) 2000 s - Competition of National Eco-system for Trade Facilitation (G2G, B2G) 2010 s - (Prediction) Competition between Regional Eco-system for Trade Facilitation (N2N) Increased volume of cross border trade and the need for capacity to handle it. FTA and WCO implementations to facilitate international trade collaboration Lower cost, and simplification of cross-border processes Fraud detection and control Increased physical threat to business and national security 911, financing and smuggling of weapons Increased physical, health and social threat to citizens from natural disasters or biological imports SARS, Avian Flu, Drug recalls, etc. Disaster relief operations

26 Single Window Inter-operability Beyond Borders: a Nation-to-Nation (N2N) Vision Bank Forward er Haulier Bank Forward er Haulier Customs Customs Seller Country A Country A Country C International Carriers International Carriers Seller Country A Federated Enterprise Reference Architecture Message Converter Registry & Repository Collaborative Event Handler Metrics & Reporting Engine Choreographer Tools ebxml, RosettaNet, Web Services International Carriers Customs Country B Haulier Forward er Bank Buyer Country Z Create trade exchange

27 Single Window Inter-operability Examples of Purposes and Benefits Single Trade Declaration - re-use of export data for import. Import permit application Submission of manifests and other documents Each country retains its own customs procedures and workflow. Trade Monitoring & Controls Visibility of cargo content from port of origin Track & Trace of carrier and container routes Trade Regulations Streamlining Clearer export/import and simplified compliance effort for traders Faster verification of information leading to faster revenue collection Facilitate easier implementation of future security & other trade policies

28 learnings Single Window Inter-operability Firstly, improve internal government efficiencies & automation toward a comparable performance standard (benchmark) Build your Customs or e-logistics Single Window with end-in-mind. Adopt and support international or open standards for systems development, messaging, product codes and other specifications. Adopt a common data messaging and security framework, supported by governments and trusted by traders. Enhance Regulatory and Legal framework to support cross-border electronic document exchange. Begin with specific, low risk product categories to achieve Single Declaration and/or Single Inspection with another country. Balance between trade facilitation and security. Collaborate with commercial organizations and associations to address the issues of Letter of Credit, Bill of Lading, Inspection Certificates, etc.

Single Window Development and Implementation. The Experience of Singapore

Single Window Development and Implementation The Experience of Singapore Wilfred Tan Country Director, NCS Singapore www.ncs.com.sg WORKSHOP ON TRADE FACILITATION IN EAST ASIA Sponsored by the World Bank