Oleh : State Champions

U Customs Change Management Team

Sarawak

MAMPU’s Findings

• Running on Parallel Mode (Dual-Mode)

• The current process involves broken-link

• Makes room for human-intervention

• Improvements of the current system is done on piece-meal basis

Processes and Procedures

• The technology used is obsolete.

• The application is developed Silo, whereby there is no integration with other related systems

• The application is NOT user-friendly

Technology and Infrastructure

• Work-monitoring is done manually

• Dependency on the outsourced expertise to maintain the system

• Labour-intensive

Human resource

“ Kastam jangan buatsistem yang tak

senonoh”

-Y.A.B Dato’Seri Najib bin Abdul Razak-

• The findings was then presented

to the Malaysian Prime Minister

and the Prime Minister have

decided to replace the current

SMK to a new comprehensive

system called uCustoms.

• The development of uCustoms

also includes the development of

a new National Single Window

(NSW).

*Source: Oxford Dictionary

What does uCustoms mean?

The “u” stands for “Ubiquitous” which is defined as “Present, appearing, or found everywhere*”

uCustoms is a fully integrated, end-to-end, Customs modernization solution that delivers ‘Single Window’ for goods clearance.

ASPIRASI uCUSTOMS

7

Auto Gate Systems

Customs Management

Revenue Collection

Excise Enforcement

Airlines/Ship AgentsPorts Authority

Bank

OGA & PIA

Payment Instructions

Manifest;Clearance

License Data;Approvals

Manifest;Clearance

Trading Community

Cargo Targeting

Vessel Targeting

JKDM Stations

JKDM States

JKDM HQ

Customs Single

Window

Customer Care

National

Targeting

Center (NTC)

Executive Information SystemKnowledge

Management

Declarations

The new uCustoms

Statistik Statistik

Statistik

Our Expectations

StatistikRevenue collectionDouble Figure

INCREASE

ProcessMore than

60120

3020

Legal Landing Places

External Entities

Existing SystemsOngoing Initiatives

MinimizeCost of Doing BusinessHuman Intervention

TRANSFORM

SELFassessment

AUTOprocess

approvalrelease

SHAREresponsibilities

successful

Support10,000

Millions electronic

form s per year

Customs Agents

License Warehouse40042 AEO Company

35Free Zones

Millons of individuals every day

Examination CentreClearance CentreTargeting CentreCall Centre1

sto

p

web based

Notification &

Acknowledgement

TrackingFast Clearance

Scope of uCustomsuCustoms covers the main 8 clusters of Customs operations:

1. Registration & Licensing

4. Control & Prevention

2. Clearance

5. Revenue & Accounting

3. Audit & Enforcement

6. Knowledge Management 7. System

Management

8. Technology

To Implement a Complete set of End-to-End

Computer System Solution – to replace SMK and Current NSW

– To provide/integrate with port system, issuing permit, etc

To transform ways of doing business– Standard Operating Procedures

– Client Charters

– Internal & External Personnel

To Provide Infrastructure and Facilities for– Data Centre and Data Recovery Centre

– Strategic Centre and Call Centre

– CCTV in strategic area

– CEA with necessary equipment

– Scanner and Gate system

To Support Malaysia Government Initiatives– National Single Windows

– ASEAN Single Windows

PROJECT SCOPE

Understanding the SW Environment

“Within the context of this Recommendation, a Single Window is defined as a facility that allows parties involved in trade and transport to lodge standardized information and documents with a single entry point to fulfill all import, export, and transit-related regulatory requirements. If information is electronic, then individual data elements should only be submitted once.”

UN-CEFACT Recommendation 33

• Parties involved in trade and transport WHO?

• Standardized information and documents WHAT?

• Single entry pointWHERE?

• Fulfill all import, export, and transit-related regulatory requirements.

WHEN / WHY

• Electronic data elements should be submitted only once

HOW?

NSW - Integration Benefits / Needs

• Processes and systems are fully functional, effective, and efficient, service representatives are well-trained and proficient in delivering service, and there is no inconvenience to the customer.

• Automation in system integration will further assist in all related agencies daily operations.

• Process will be fully automated reducing time duration of daily operation and data exchange while increase productivity and effectiveness

• Maintaining and assuring the accuracy and consistency of data.

Information Integrity

Seamless Government Services

Facilitated Customs/Others Agencies/Authorities Operation

Less human intervention – Data Exchange

NSW Today

Ports and Free Zones Authorities

Banks

Traders

Airlines / Ship Agents

OGA and PIA

Single WindowDagangNet

Sistem Maklumat Kastam(SMK)

Customs Processing

Revenue Collection

Risks Management(CVI)

Targeting System

Enforcement & Intelligence

(PRISKA)

Risks Intelligence

Revenue Management System

(RMS)

Revenue Reporting

Sales & Services Tax

Customer CareDagangNet Careline Stations

States

HQ

JKDMDagangNet

Enforcement

Figure below depicts the current environment of DNT NSW - SMK:

Auto Gate Systems

Customs Management

Revenue Collection

Excise Enforcement

Airlines/Ship AgentsPorts Authority

BankOGA & PIA

Payment Instructions

Manifest;Clearance

License Data;Approvals

Manifest;Clearance

Trading Community

Cargo Targeting

Vessel Targeting

JKDM Stations

JKDM States

JKDM HQ

NSW

Customer Care

Strategic Centre (NTC& NCC)

Executive Information SystemKnowledge

Management

Declarations

Figure below depicts the target environment of uCustoms:

The New NSW

What Is Required – End to End Process

RegistrationStakeholders and clients Information

ReleaseConfirmation of export

Auto Gate release

ProcessingDeclaration COO

License PermitExemption Duty Payment Clearance

Scanning MachineCustoms Examination Area (CEA)

Data SharingReconciliation

Analysis (DOS)

STIDC - RMCD

Registration

•Section 5A of “The Sarawak Timber Industry Development Corporation Ordinance, 1973”, is the provision requiring those involved in

timber industry to be registered with STIDC.

•Sijil Pendaftaran Baru akan dikeluarkan tidak melebihi enam belas (16) hari bekerja dari tarikh permohonan diterima daripada

permohonan /Pejabat Bahagian di Ibu Pejabat PUSAKA

•Using ORSIS

Grading

•To receive, process and issue 90 percent (90%) of the Grading Certificate within four (4) working days and 100 percent (100%) within

seven (7) working days.

•all sawn timber to be exported from Sarawak must be graded by registered competent Timber Graders

•May 2008, STIDC proudly launched eGrading system in order to make transformation in the organization align to support the e-

government

Issuance of Export & Import License

•All registered companies are required to attached supporting document as per required together with the application.

•To process and issue 100% Export and Import License for Logs and 90% for timber products under Custom Act 1967 within one (1)

working days as required by ISO 9001:2008.

•mandatory to carry out physical inspection before export license is approved.

•mandatory to carry out physical inspection for all imported logs and timber products.. Done after clearance of the imported products

by The Royal Customs Department at port

Hasil perbincangan Pasukan Projek

uCustoms dengan STIDC

• Pihak STIDC akan menggunakan perkhidmatan

NSW yang baru untuk penerimaan, pemprosesan,

kelulusan dan kawalan keatas penggunaan permit

yang dikeluarkan oleh pihak STIDC

• Memerlukan integrasi dengan sistem

ORSIS(pendaftaran certificate) dan sistem eGrading.

NSW User – Permit Issuer

Associate Permit Request Organization

Upload Supporting Documents and submit

request

Review Permit Request and approve

Send Notification,Approved Permit

can be used for declaration

Traders Login to uCustoms and Create Permit

Request details

Login to uCustoms system, PIA’s manager View Inbox Messages (Permit Request)

Review Submitted PermitRequest and send for

approval

PIA’s Manager

PIA’s officer

Login to uCustoms system, PIA’s officer View Inbox Messages (Permit Request)

Permit/License Module Application Processing Validation

Location

Quota

Authorized Person

Online Application

Notification

SycronizationPermit - Declaration Report

NSW User – Consignment Approval

Submit declaration

Route the declaration based on the HS Code mapping and the defined rules set

OGA’s officer

Send notification Traders

Login to uCustoms system, OGA officer takes up the task and initiate actionReview Declaration

Once approved, the goods can be released

If required Physical Inspection

If not required Physical Inspection

Schedule an appointment &Send notification to respective stakeholders

Perform Physical Inspection

by SIAT

Prepare Inspection

ReportReview Inspection Report by SIAT

If Approval Officer not satisfied with the report

If Approval Officer satisfied with the report

• Determine declaration, passengers and companies targeting classification based on types of channel.

Targeting

21

Green

• Low risk

• Auto Clearance without examination

Yellow

• Medium Risk

• Documentation Check

Red

• High risk

• Requires physical Examination

Control & Prevention

The Future

Pre-arrival Arrival Post Arrival

Pre-arrival Arrival Post Arrival

Current

State

Future State

Human resources needs to be recalibrated as processes are reviewed

SW would reduce the amount of manpower needed at the point of import, but the

resources would need to be diverted to the pre-arrival and post-arrival stages.

• Pre-arrival: Tactical Risk management, research, sense-making, targeting,

intelligence, processing of high-risk declarations

• Arrival : Pre Arrival Clearance, Simplified Procedures (minimum info, SIAT) ,

Self Assessment, Use Of Electronic Service

• Post-arrival: Risk profiling, business intelligence & analysis, procedure review,

post-clearance audits

Process time required

Process time required

How Does It Works – Data Sharing

OGA & PIA

NSW: How Does It Works – End to End

Trader / Broker

Registration

PIA

SeaPort AirPort

Validation

Exchange InfoOGA / PIA

ReleaseDeclaration Manifest

Permit Inspection

Payment

SeaPortAirPort

25

Payment ModulesThe Payment channels

uCustoms Payment channels

uCustoms Portal

Kiosks

JomPay

SUPPORTING CORE MODULE

NTC / NCC / NSC

CUSTOMS EXAMINATION AREA (CEA)

Definisi CEA: merupakan tempat pemeriksaan kargo bersepadu

yang beroperasi 24 X 7 dan dianggotai oleh Pasukan SIAT (Special

Inter Agency Team).

Keperluan CEA:

• tempat pemeriksaan bersepadu yang boleh

menempatkan pasukan SIAT;

• holding area yang mencukupi; dan

• jumlah bay pemeriksaan yang mencukupi.

Jenis Pemeriksaan SIAT:

• Pemeriksaan berpusat di CEA; dan

• Pemeriksaan bergerak

CUSTOMS EXAMINATION AREA (CEA)

Merupakan Special Inter Agency Team (SIAT) – merupakan

pasukan pemeriksaan kargo yang dianggotai oleh gabungan

pegawai dari JKDM dan agensi-agensi lain yang berkaitan.

Pasukan ini akan berada di semua pintu masuk/keluar negara.

Fungsi utama SIAT adalah:

• Membuat pemeriksaan kargo berdasarkan perundangan

OGA dan kastam;

• Membuat pemeriksaan kargo yang diberi penarafan risiko

tinggi;

• menyediakan maklumbalas berdasarkan hasil pemeriksaan

kepada pihak yang berkaitan; dan

• OGA memberi kelulusan ke atas dagangan yang tertakluk

kepada perundangan OGA (PDK Larangan mengenai

Import 2008 dan PDK Larangan mengenai Eksport 2008 )

SPECIAL INTER AGENCY TEAM (SIAT)

2. CEA3. Auto release

gate

1. Scanning area

Export

flow

3. Auto release

gate

1. Scanning area

2. CEA

Import

flow

Proposed CEA workflow Plan

Live Simulation + Quiet Time Bing Bang

Live Simulation

Sites

Migra

te

delta

data

SMK, DNT

uCustoms

SMK

Go

Live

Big Bang

(Quiet

Time)

Quiet time is the

time where trade

volumes are lowest

to minimize

disruption

Year 2

(21/8/2015)Year 3

(01/01/2016)

Training

uCustoms

DevelopmentLive Simulation

(11/12/2

015)

Roll

back

Year 3

(31/3/2016)

DNT, SMK to

be maintained

Outcome of uCustomsFingertips, Anytime, Anywhere and Any

Device

Web Based, Electronic End to

End Solution

Centralized Assessment and

Risk Management

8 Clusters, 54 Modules and 3

Strategic Centres

One Stop Examination Centre

(CEA)

Minimum Human Intervention

Integration with more than 100 OGA/PIA/Ports

Information Sharing and

Collaboration

Tracking and Acknowledgement

Ease of doing business

World Class Customs

AdministrationAnd many more ….