Capacity Building Workshop on Trade Facilitation Implementation

18 March 2005

Dagang Net Technologies Sdn Bhd20th Floor, HP TowersJalan Gelenggang, Bukit Damansara50490 Kuala Lumpur, Malaysiahttp://www.dagangnet.com

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Single Window System Implementation

- Malaysian Experience

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Presentation Outline

The Malaysian Legacy SystemUnderstanding the DefinitionsDagang Net’s ApproachChallenges

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The Malaysian Legacy System

Many forms

Ref Type of Form

Purpose Authority

1. Kastam 1 Importation into Principal Customs Area (PCA)

Royal Malaysian Customs (RCM)

2. Kastam 2 Exportation from PCA RCM

3. Kastam 3 Movement of goods between Peninsular Malaysia and East Malaysia

RCM

4. Kastam 8 Bonded Cargoes RCM

5. Kastam 9 Removal of Goods from Bonded Warehouse

RCM

6. Kastam 4 Inward (Import) Manifest RCM/FZA

7. Kastam 5 Outward (Outward) Manifest RCM/FZA

8. ZB1 Importation of goods into the Free Commercial Zones (FCZ)

Free Zone Authority (FZA)

9. ZB2 Re-export from FCZ FZA

10. ZB3 Transshipment FZA

11. JK69 Permit to import/export Other Govt Agencies (OGA)

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Single FilingA single form or administrative document to multiple authorities for processing and approval for import and export trade related purposes

Single Window System“One stop” platform, enabling standardised data, where the data from one application can be re-used by other applications for various authorities approval.(Example: filing permits, and the permit data is re-used for Customs declarations)

Understanding the Definitions

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Single Connectivity, Multiple Access

BanksBanks Insurance Cos.Insurance Cos.

Cross-BorderPartners

Cross-BorderPartners

ExportersExporters CustomsCustoms

ImportersImporters

HauliersHauliers

Warehouse operators(bonded warehouses)

Landbridge operatorsLandbridge operators

Inland Port operatorsInland Port operators

Port operatorsPort operators

Shipping AgentsShipping Agents

Forwarding AgentsForwarding Agents

Freight ForwardersFreight Forwarders

Empty Depot OperatorsEmpty Depot Operators

Free Zone AuthoritiesFree Zone Authorities

Other Government AgenciesOther Government Agencies

Dangerous GoodsAuthoritiesDangerous GoodsAuthorities

Port Authorities /(Dept of Civil Aviation)Port Authorities /(Dept of Civil Aviation)

Certificate of OriginAuthoritiesCertificate of OriginAuthorities

Ministry of InternationalTrade and IndustryMinistry of InternationalTrade and Industry

Ministry ofTransportationMinistry ofTransportation

Airport Ground HandlersAirport Ground Handlers

DNT’s Web of Service and Value-Add

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Data Repetition in Trade Documentation

Customs Declarations

CommercialInvoices

Request ForDelivery

Space Booking

DGDeclarations

Integrated Export

Documents

ExportPermits

Manifest

Insurance95% data repetition

70% data repetition

30% data repetition

30% data repetition 70% data repetition

40% data repetition

70% data repetition

90% data repetition

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Common Data in Supply Chain

INSU

RA

NC

E

INV

OIC

E

P.O

./D

.O.

CU

ST

OM

S

RF

D/R

OT

L.C

.

BL

/ MA

NIF

EST

Descrip tion of sh ipm ent.Value of shipm ent.Sender / S eller details .Receiver / Buyer details .

Data that is re-usable in documentationthroughout the Supply Chain

Associating data for linking and aggregating all supply chain

documentation

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Common Data / Many Entities

INSU

RA

NC

E

INV

OIC

E

P.O

./D

.O.

CU

ST

OM

S

RF

D/R

OT

L.C

.

BL

/ MA

NIF

EST

Descrip tion of sh ipm ent.Value of shipm ent.Sender / S eller details .Receiver / Buyer details .

P roduc tion& S ourc ing

Log istics& H au lage

F inance -Insu rance

C learing &S h ipp ing

F inance -S e ttlem en t

Docum ent-specific data +

M anufactu re r D istributor Transport C o . Insurance C o .Forw ard ing

A gen tS h ipping

A gen tTrade

F inancie r

Various / Different Controlling Govt. AgenciesVarious / Different Controlling Govt. Agencies

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Dagang Net Exchange’s role in Trade / Supply Chain Aggregation

Extended Data Re-useAccuracyEfficiency

SpeedSingle point-of-referenceCost Savings

INSU

RA

NC

E

INV

OIC

E

P.O

./D

.O.

CU

ST

OM

S

RF

D/R

OT

L.C

.

BL

/ MA

NIF

EST

DNX: Further Aggregation of Trade / Supply Chain viaIntegration of E-Com m erce Information

M anufacture r D is tributor Transport C o . Insurance C o .Forw arding

A gen tS h ipping

A gen tTrade

F inancie r

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Changing technological platform

Embarking aggressively on emerging technologiesAdopt the Single Window System concept

The Traditional Role New Dagang*Net

SMK (KDRM

) Communit

iesUsers

Mail-boxing Facility

E-LogisticsTrade FacilitationProduction,

Supply Chain

Financial Services

Document Exchange

Online Software Solutions

Content /Information

Marketplace

Dagang Net Exchange

Dagang Net’s Approach

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Dagang Net’s Implementation

Rolled out web-based eDeclare Service in April 2002

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Dagang Net’s Implementation

Rolled out eLogistics in August 2002

Rolled out ePermit in September 2004

Rolled out CBex in December 2004

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DAGANG•NET

MNC

Forwarding Agents Malaysian Customs

Customs Declaration

(UN/EDIFACT)

Rosettanet PIP 3B18

email Notification

eLogisticseDeclare

1.Standards Conversion2.Data Population

Dagang Net’s Implementation - eLogistics Service

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User login

User Welcome Screen

Select criteria

Dagang Net’s Implementation - eLogistics Service

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Auto population of PIP3B18 data to

eDeclare & submit

Status Screen

Dagang Net’s Implementation - eLogistics Service

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Malaysia Traders

Cross-BorderSingle Window

System

DAGANG•NET

Malaysian Customs

eDeclare

DeclarationData

Foreign Traders

Foreign Customs

Customs Declaration

Customs Declaration

(UN/EDIFACT)

Country VAN Status

Singapore CrimsonLogic December 2004

Chinese Taipei

TradeVan January 2005

CBex

1.Standards Conversion2.Data Population

Dagang Net’s Implementation - Cross Border Service (CBex)

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Search criteria

Search Results

User login

Dagang Net’s Implementation - Cross Border Service (CBex)

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View Summary Records

Accept incoming messages

Auto population of CBex data to eDeclare &

submit

Dagang Net’s Implementation - Cross Border Service (CBex)

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Dagang Net’s Plan (2005 – 2007)

Order/Prepare Transport Customs Payment

Buy Ship Pay

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Private sector initiative

Customs procedures and data requirements vary between countries

Resistance to change

Proliferation of broadband services nationwide

Challenges

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Conclusion

“Single Window System implementation is all about business & NOT technology”Single Window System is not about implementing a solution. It is about implementing CHANGES for the benefits of all parties to increase national competitiveness

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Terima Kasih

Thank You