NACCS (Nippon Automated Cargo And Port Consolidated System)

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1 Regional Meeting on Development of Efficient and Effective Logistics Information Systems, Bangkok, December 2015 NACCS (Nippon Automated Cargo And Port Consolidated System) Yoshio (Yoshi) Kito EDI Standardization Expert (independent) NACCS 1

2 Agenda 1. Background to system development 1. National context 2. Development process 3. Stakeholders 4. Timelines 5. NACCS Version 6 6. Organization chart of NACCS Center 2. System design/architecture 4. Institutional arrangements 1. Lead by agency 2. National logistics strategy policy 3. Technical (human) resources 4. International Logistics Center in Japan 5. Process to Single Window 6. Promoting the Paperless customs clearance pilot reform 7. Electronic signature law in Japan 3. What is NACCS? 1. Business areas 2. Benefits of NACCS? 3. Access to NACCS? 4. Relevant data standards

3 1. Background to system development: National context In order to meet the increase in trade volume to Japan in the high economic growth, especially the rapid customs processing needs for international air cargoes, computer system installation in customs procedures were considered as an extremely effective solution among the stakeholders. Thus, while the momentum of IT in customs procedures increases, the Bureau of Customs of Ministry of Finance officially decided to adopt IT related to import procedures for air cargo which were most urgent in December 1971, because imported air cargoes were rapidly increasing. "A bill for the special law authorizing NACCS" to give legal assurance to the electronic procedure was enacted in The air cargo clearance System (Air-NACCS: Nippon Air-Cargo Clearance System) was launched for import air cargo in August The Special Law of Customs Procedures for Air Cargo was changed to the Act on Processing etc. of Business Related to Import and Export by Means of Electronic Data Processing System (NACCS Special Law) in March Then the Maritime Automated Cargo Clearance System (Sea-NACCS) was introduced in Keihin (Tokyo & Yokohama) Port Area for import and export customs clearance operations in October 1991, when both systems were launched for Imported/Exported cargoes by air/sea. NACCS 3

4 1. Background to system development: National context The procedures for Arrivals and Departures of cargoes & ships/aircrafts Information about the cargoes to perform the export or import (content, quantity, registration and management of packing, etc.) Declaration of import and export to the customs offices Import Tax Payment Procedures of customs at the time of importation The Import Tax Payment to customs by online with the bank has now become the majority, which is also for labor-saving. A Single window from B2G and B2B for cross-border trade.

5 1. Background to system development: Reduced time for custom clearance Air-cargo 60 Year Time used from a flight's arrival to a designated place Time used for cargo import declaration Time used to get import permission Total time used Time used from a flight's arrival to a designated place Time used for cargo import declaration Houes used to get import permission Total time used NACCS 5

6 1. Background to system development: Reduced time for custom clearance Sea-cargo Year Time used from a vessel's arrival to a designated place Time used for cargo import declaration Time used to get an import permission Total time used Time used from a vessel's arrival to a designated place Time used for cargo import declaration Time used to get a import permission Total time used

7 1. Background to system development: Stakeholders 1. Private sectors: Airlines companies / Shipping companies Air cargo agents / Agent of Shipping company Flight caterers & suppliers Consolidators / NVOCC Warehouse operators Customs brokers Importer/Exporters Banks Shipping brokers 2. Public sectors: Ministry of Finance (MOF) Ministry of Agriculture, Forestry and Fisheries (MAFF) Ministry of Health, Labour and Welfare (MHLW) Ministry of Land, Infrastructure and Transport (MLIT) Ministry of Justice (MOJ) Ministry of Economy, Trade and Industry (METI) Local government (Port authorities) Container terminal operators NACCS 7

8 1. Background to system development: Number of Users NACCS 8

9 1. Background to system development: Timelines - 1 May 1977 A bill for the special law authorizing NACCS passed the Diet. Oct The NACCS Center was established. Aug The import system (Air-NACCS) began operations (Ver.1). Jan The Integrated Import/Export Air Cargo System began operations. The Direct Interface System Began Operations (private export operations) (Ver.2). Mar The Special Law of Customs Procedures for Air Cargo was changed to the Act on Processing etc. of Business Related to Import and Export by Means of Electronic Data Processing System (NACCS Special Law). Jul According to the Special Law, the Nippon Air Cargo Clearance System Operation Organization was renamed the Nippon Automated Cargo Clearance System Operations Organization. Oct Sea-NACCS was put into operation (Ver.1). Feb The upgraded Air-NACCS was put into operation (Ver.3). Feb Data interchange with FAINS of the Ministry of Health and Welfare (currently Ministry of Health, Labour and Welfare) was put into operation. Apr Oct Oct Dec Nov Dec Mar Jul Data interchange with PQ-NETWORK and ANIPAS of the Ministry of Agriculture, Forestry, and Fisheries was put into operation. The upgraded Sea-NACCs was put into operation (Ver.2). The upgraded Air-NACCS was put into operation (Ver.4). Following the Reorganization and Rationalization Plan for Special Public Institution (adopted by the Cabinet on December 19, 2001) it was decided that NACCS would be transformed into an independent administrative agency. Data interchange with JETRAS of the Ministry of Economy, Trade, and Industry was put into operation. The NACCS Special Law was partly revised (NACCS was reorganized as an independent administrative agency). netnaccs (the provision of service via the internet) was launched. The Single Window System for import/export procedures or port-related procedures (linking NACCS and relevant government systems) was initiated. NACCS 9

10 1. Background to system development: Timelines -2 Oct Mar Sept Feb Mar Jul Dec Apr The NACCS Center was reorganized into an independent administrative agency. NACCS and the Multi Payment Network were connected. Sea-NACCS and the private-sector system Shimizu Port network system were linked. The upgraded Interface system was put into operation. Data interchange with MOTAS and LMVIS of the Ministry of Land, Infrastructure and Transport (currently Ministry of Land, Infrastructure, Transport and Tourism) was put into operation. The outline of specifications for the upgraded NACCS was developed by the Steering Council for Data Processing. Sea-NACCS and the private-sector system CATOS (Hibiki Container Terminal Operation System) were linked. Following the Reorganization and Rationalization Plan for Independent Administrative Agencies (adopted by the Cabinet on December 24, 2007), it was decided that the NACCS Center, Incorporated Administrative Agency would be privatized as a special incorporation. The NACCS Center formally joined the PAA (Pan-Asian e- Commerce Alliance). May 2008 Oct Feb Oct Oct The Special Law of Customs Procedures through the Electronic Data Processing System was changed to the Act on Special Provisions for Customs Procedure by Means of Electronic Data Processing System (privatization of the incorporated administrative agency NACCS Center). The NACCS Center was reorganized into a stock company. The upgraded Sea-NACCS was put into operation (Ver.3). The portal system for Import/Export Procedures and Port-related Procedures was put into operation. The method of Real-time account transfer (direct method) was started. The upgraded Air-NACCS was put into operation (Ver.5). The new NACCS (integration of Air-NACCS and Sea- NACCS) was put into operation. The trade control subsystem was put into operation. The Single Window system for airport arrival/departure procedures was initiated. Animal quarantine, plant quarantine, and food hygiene procedures were added to the Single Window. The 6 th Generation of NACCS will be launched NACCS 10

1. Background to system development: Timelines 3 (NACCS Version 6 - Basic Concept) Realization of high stability and reliability system as a core system between B2G The 6th Generation Enhancement of

11 1. Background to system development: Timelines 3 (NACCS Version 6 - Basic Concept) Realization of high stability and reliability system as a core system between B2G The 6th Generation Enhancement of further function as a comprehensive logistics information platform functions As public infrastructure, the realization of high efficiency and economy system NACCS 11 (Source: Fourth Information Processing Management Council, 12 th March 2012)

12 1. Background to system development: Timelines 3 (NACCS Version 6 - Renewal Timeline) Quarter F. Year 2011 FY 1Q 2Q 3Q 4Q 2012 FY 1Q 2Q 3Q 4Q 2013 FY 1Q 2Q 3Q 4Q 2014 FY 1Q 2Q 3Q 4Q 2015 FY 1Q 2Q 3Q 4Q 2016 FY 1Q 2Q 3Q 4Q 2017 FY 1Q 2Q 3Q 4Q 2018 FY 1Q 2Q 3Q 4Q 2019 FY 1Q 2Q 3Q 4Q NACCS 12 (Source: Fourth Information Processing Management Council, 12 th March 2012)

13 1. Background to system development: Organization chart of NACCS Center NACCS 13

2. System design/architecture NACCS was originally designed to handle Import/Export cargoes by air & sea to the Customs Authorities from related business sectors, importers and exporters.

14 2. System design/architecture NACCS was originally designed to handle Import/Export cargoes by air & sea to the Customs Authorities from related business sectors, importers and exporters. However they are now providing their services covering not only the Customs Authorities, but also other governmental agencies, such as Ministry of Finance (Customs procedures), Ministry of Land, Infrastructure and Transport (Port procedures), Ministry of Economy, Trade and Industry (Trade control), Ministry of Agriculture, Forestry and Fisheries (Animal & Food quarantine) and Ministry of Health, Labour and Welfare (Quarantine) as a Single Window for international logistics and cross-border trade. NACCS 14

15 3. What is NACCS? - Business areas Bonded Area Business Export/Import Declaration Business Freight Forwarders & NVOCC Business Shipping lines & Shipping Agents Business Air lines Business Customs Clearance Business Shippers Business NACCS(Sea) Container Yards Business Inventory Business NACCS(Air) Banking Industry Business Consolidation Business Freight Forwarders Business Statistics Business Other Government Department Business related to Export/Import NACCS 15

16 3. What is NACCS? - Benefits derived from NACCS 1. Eliminating the need to go to the customs and relevant administrative agencies. Tax procedures can also be accomplished online. 2. Because it is possible to grasp the cargo information in real time, you can respond quickly to customer inquiries. 3. Large-scale capital investment is not required, because users can perform customs clearance procedure via the Internet, 4. Information stored into NACCS data base can be retrieved at any time, and can be used to manage material delivered by the system as a bonded ledger does not cause the difference between the storage material and bonded ledger. If connected to the in-house system, users can do the information of cooperation with NACCS and in-house. NACCS 16

17 3. What is NACCS? - Access to NACCS 1. Using NACCS network through leased line (dedicated line), BIA (Broadband Internet access), PSTN (Public Switch Telephone Network), 2. Using Internet through service providers. NACCS 17

18 3. What is NACCS? - Relevant data standards (Import Procedures) Process Information Which data standards? Which data standards are used? Port entry of aircraft / ship and unloading Transport to import storage facility / CY Transport to bonded warehouse Sorting of mixed cargo Customs clearance for import Procedures for port entry Invoice information and other items Registration of cargo information Load Devanning Mixed cargo Statement on bonded transportation Loading Devanning Declaration of imports Delivery of permissions and other information (also deliverable to consignor) UN/EDIFACT, ebxml, UNECE/Recommendations UN/EDIFACT, ebxml, UNECE/Recommendations UN/EDIFACT, ebxml, UNECE/Recommendations UN/EDIFACT, ebxml, UNECE/Recommendations UN/EDIFACT, ebxml, UNECE/Recommendations UN/EDIFACT, ebxml, UNECE/Recommendations UN/EDIFACT, ebxml, UNECE/Recommendations UN/EDIFACT, ebxml, UNECE/Recommendations UN/EDIFACT, ebxml, UNECE/Recommendations UN/EDIFACT, ebxml, UNECE/Recommendations UN/EDIFACT, ebxml, UNECE/Recommendations NACCS 18

19 3. What is NACCS? - Relevant data standards (Export Procedures) Cargo shipment Process Information Which data standards? Which data standards are used? Invoice information UN/EDIFACT, ebxml, UNECE/Recommendations S/l information UN/EDIFACT, ebxml, UNECE/Recommendations Transport to bonded warehouse Customs clearance for exports Registration of freight information UN/EDIFACT, ebxml, UNECE/Recommendations Loading/Vanning/Mixed cargo and etc. UN/EDIFACT, ebxml, UNECE/Recommendations Export declaration UN/EDIFACT, ebxml, UNECE/Recommendations Delivery of permissions and other information (permissions and (also deliverable to consignors) UN/EDIFACT, XML, UNECE/Recommendations Transport to scheduled destinations for loading such as a bonded warehouse or CY UN/EDIFACT, ebxml, UNECE/Recommendations Transport to loading facility / CY Procedures for loading Processing for port departure, etc. Loading UN/EDIFACT, ebxml, UNECE/Recommendations UN/EDIFACT, ebxml, UNECE/Recommendations NACCS 19

20 3. What is NACCS? - Relevant data standards (Common Procedures for Import & Export ) Process Information Which data standards? Which data standards are used? Administrative applications & notifications UN/EDIFACT, ebxml, UNECE/Recommendations Reception of customs and other duties UN/EDIFACT, ebxml, UNECE/Recommendations NACCS 20

21 Lead by Agency 4. Institutional arrangements The NACCS Center developed and have been maintaining NACCS since the organization was established in October 1977 by a special law. Since then, the system has been often upgraded in order to meet private sector s and other Government agencies business requirements. National logistics strategy policy Since NACCS started the electronic import cargo declaration in August 1988, NACCS has expanded their services scope by an amendment of the special law. NACCS is now playing the role of a comprehensive logistics information platform in the crossborder trade & logistics. NACCS 21

22 Technical (human) resources The NACCS Center establishes a working group consisting of experts in related industries, each time the Center plans to upgrade NACCS and expand their new business services. Now they are planning to launch their upgraded (Ver. 6) in October 2017 and establish relevant working groups. 4. Institutional arrangements NACCS 22

23 4. Institutional arrangements International Logistics Center in Japan The NACCS Center started their service for air-cargo customs clearance procedure in 1978 and expanded their services step by step. After the UNECE Recommendation #33 (Recommendation and Guidelines on establishing a Single Window) was published, the NACCS Center upgraded NACCS to act as a Single Window function for imports/exports and other related parties in Japan. NACCS 23

24 4. Institutional arrangements Process to Single Window (Before October 2008) Port EDI Crew Landing Support System Customs Procedures Users of Port EDI System Port EDI System Single window Function Animal Quarantine Plant Quarantine Food Quarantine Users of NACCS IFS Function IFS: Interface System (with other agencies except Customs) NACCS Trade Control 24

25 4. Institutional arrangements Process to Single Window (October 2008 September 2013) All Users Common Portal Customs Procedure Port EDI Crew landing Support System Trade Control Animal Quarantine Plant Quarantine Food Quarantine NACCS 25

26 4. Institutional arrangements Process to Single Window (After October 2013) All Users Customs procedures (MOF Customs) Dealing with most of the administrative procedures necessary for international logistics through NACCS Port procedures (MLIT) Crew landing support system (MOJ) Trade control (METI) Animal quarantine (MAFF) Quarantine (MHLW) Food quarantine (MHLW) NACCS 26

27 Promote the Paperless customs clearance pilot reform "A bill for the special law authorizing NACCS" to give legal assurance to the electronic procedure was enacted in By the special law, electronic applications were legally authorized, which has been enabling users to reduce time and costs. Nowadays import/export procedures related to Customs are performed through NACCS. Electronic signature law in Japan 4. Institutional arrangements The Act on Electronic Signatures and Certification Business was passed as Act No. 102 of May 31, 2000, with the purpose to promote the distribution of information by electromagnetic form and information processing through ensuring the smooth utilization of Electronic Signatures and thereby to contribute to the improvement of the citizen s quality of life and the sound development of the national economy, by providing the presumption of authentic of establishment electromagnetic records, the accreditation system for designated certification business and other matters with respect to Electronic Signatures contribution. NACCS 27

28 Questions Thank you for your attention NACCS 28

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