Single Window Development and Implementation - World...

WORKSHOP ON TRADE FACILITATION IN EAST ASIASponsored by the World Bank and European Union

November 3-5, 2004Shanghai, China

Single Window Development and Implementation

The Experience of SingaporeWilfred Tan

Country Director, NCS Singaporewww.ncs.com.sg

The World Bank European Union

The World Bank European UnionBackground

Making Waves Since the 1980s ( Singapore Roadmap )

First Wave

Infocomm21Late 90sSecond Wave

National ITPlanMid 80sNational

Computerisation PlanEarly 80s

Third WaveIT2000Early 90s

Fourth WaveConnected Singapore2003 -

Fifth Wave

• Conceptualized in 1986 as part of National IT Plan

• Implemented in 1st Jan 1989 by Singapore Customs


The Objectives of TradeNet ®®

Background

!! To facilitate the submission and exchange of To facilitate the submission and exchange of structured trade documents electronically for structured trade documents electronically for government, public and private sectorsgovernment, public and private sectors

!! To reduce turnaround time and manpower costsTo reduce turnaround time and manpower costs

!! Enforce controls laid down by domestic policies Enforce controls laid down by domestic policies and international agreementsand international agreements

!! Collection of Customs Duties and GSTCollection of Customs Duties and GST( GST was introduced in 1994 ) ( GST was introduced in 1994 )

!! Collection of Trade StatisticsCollection of Trade Statistics


TradersTraders

Singapore CustomsSingapore CustomsCheckpointsCheckpoints

VAN -VAN - CrimsonLogicCrimsonLogic

Controlling AgenciesControlling Agencies

Goods imp/export by Air

Goods imp/export by Sea

Goods imp/export byRail/Road

Trade & manifest info PermitPermit

ApplicationsApplications

Cargo Cargo ClearanceClearancePermitsPermits

Cargo Cargo ClearanceClearance

Goods imp/export by Air

Goods imp/export by Sea

Goods imp/export byRail/Road

Background


The Path of TradeNet ®®

Version 1.0

Version 1.8

Version 2.0

Version 3.1

• Implemented Electronic Submission• Declarations were batched up• Turnaround time in few days

• Declarations were batched up• Turnaround time in half-an-hours

• Interactive TradeNet• Approval within 2 - 5 minutes

• Major business processing upgrade

Background

The World Bank European UnionDesign and Development Process

" Forming of TradeNet Working Committee Chaired by NCB and CED

" Studying of Trade document business processes ( e.g. declaration submission, approving parties, payment, movement of cargoes, etc )

" Review all Manual processes involved " Review all the different type of trade documents

( e.g. Import, Export, Transhipment )" Study and Review Goods Classification " Introduction of Electronic Transaction Act ( late

90’s )

TradeNet ®® Business Processes


!! To evaluate TechnologyTo evaluate Technology!! Consolidate Data Element to form Consolidate Data Element to form

TradeNetTradeNet specificationsspecifications!! Contingency Plan ( e.g. DR Site ) and Contingency Plan ( e.g. DR Site ) and

SOPSOP!! Benchmark performance of electronic Benchmark performance of electronic

declaration ( from days to minutes )declaration ( from days to minutes )!! Payment of Duty and GST via Electronic Payment of Duty and GST via Electronic

means ( GIRO )means ( GIRO )

Design and Development Process


Front-endTraders

VAN operator

Controlling Agencies

Current Structure of TradeNet®®

Trade CommunityTrade Community

Singapore Singapore CustomsCustoms

Design and Development Process

The World Bank European UnionStructure and Services•• Submission of Submission of TradeNetTradeNet applicationsapplications

# Import# Import# Export# Export# Transshipment# Transshipment# Removal# Removal# Container# Container# Controlled/Non# Controlled/Non--controlled/Strategic goodscontrolled/Strategic goods# Payment/Non# Payment/Non--paymentpayment# Cert of origin and other applications # Cert of origin and other applications

•• Amendment of Amendment of TradeNetTradeNet applicationsapplications•• Cancellation of Cancellation of TradeNetTradeNet applicationsapplications•• Auto Process of Auto Process of TradeNetTradeNet applications (more than 1000 applications (more than 1000

validation rules)validation rules)•• Enquiry on application status via 24Enquiry on application status via 24--hours IVR ( Interactive hours IVR ( Interactive

Voice Response System )Voice Response System )•• Auto deduction of duty/GST via GIROAuto deduction of duty/GST via GIRO•• Paperless clearance for Paperless clearance for TradeNetTradeNet permits (CCS)permits (CCS)

The World Bank European UnionTechnology!! Single Integrated on WebSingle Integrated on Web--based or Clientbased or Client--based based

software ( Frontsoftware ( Front--end )end )!! IBM Mainframe ( OS/390 ) for the backend IBM Mainframe ( OS/390 ) for the backend

processingprocessing!! UN/EDIFACT UN/EDIFACT !! Centralised Database Centralised Database !! AutoAuto--routing and approval in Interactive Moderouting and approval in Interactive Mode!! Leased Line between VAN and CustomsLeased Line between VAN and Customs!! DialDial--up between traders and VAN ( 56K or up between traders and VAN ( 56K or

broadband )broadband )!! MQSeries MQSeries to provide near Realto provide near Real--time Message time Message

RoutingRouting


Government Agencies Government Agencies !! Singapore Customs ( System Owner )Singapore Customs ( System Owner )!! Controlled Agencies ( e.g. AVA, A&E, etc )Controlled Agencies ( e.g. AVA, A&E, etc )!! IRAS ( Accounting of GST collection )IRAS ( Accounting of GST collection )!! RCB ( Registration of Company and Business)RCB ( Registration of Company and Business)!! IE Singapore ( Statistics department )IE Singapore ( Statistics department )

Participants


Private Sectors Private Sectors !! ImportersImporters!! ExportersExporters!! Shipping AgentsShipping Agents!! Freight ForwardersFreight Forwarders!! 3rd or 4th Party Logistic Companies 3rd or 4th Party Logistic Companies

( 3PL/4PL )( 3PL/4PL )!! Terminal OperatorsTerminal Operators

Participants

The World Bank European UnionParticipants

Service Providers!! CrimsonLogic CrimsonLogic (Previously known as SNS)(Previously known as SNS)

Provides mailboxes and routing services between Provides mailboxes and routing services between government and tradersgovernment and traders

!! IPACIPACProvides integration services to trader’s inProvides integration services to trader’s in--house system house system and data entry softwareand data entry software

!! PSA PSA Provides Shipping lines, Shipping agents needs for Provides Shipping lines, Shipping agents needs for submission of trade declarations.submission of trade declarations.

!! CCNCCNProvides AirProvides Air--Freight, courier agents needs for submission of Freight, courier agents needs for submission of trade declarations.trade declarations.


!! Total of 3,000+ declaring agents who are the Total of 3,000+ declaring agents who are the key users in submitting electronic key users in submitting electronic declarations.declarations.

!! Customs Customs -- 1,000+ staff strength on 1,000+ staff strength on operations operations

!! The volume of The volume of TradeNetTradeNet is around is around 30,000/day. On the average, declaration is 30,000/day. On the average, declaration is being processed and approved within 5 being processed and approved within 5 minutes.minutes.

Frequency of use for TradeNet

Statistics


!! FrontFront--end Software end Software -- VAN FundedVAN Funded!! ASP model for frontASP model for front--end with transaction end with transaction

charges charges

!! Backend System is funded by Singapore Backend System is funded by Singapore Government ( MOF )Government ( MOF )!! White paper was being prepared to justify the White paper was being prepared to justify the

development and upgrade costsdevelopment and upgrade costs!! Outsourcing to vendor(s) in development and Outsourcing to vendor(s) in development and

maintenancemaintenance

Business Model

The World Bank European UnionResults

!! Faster turnaround time ( within 5 minutes Faster turnaround time ( within 5 minutes of approval )of approval )

!! Improve Convenience and efficiencyImprove Convenience and efficiency!! 24x7 at the trader’s premises24x7 at the trader’s premises!! Reduce paper workReduce paper work

!! Costs saving: US1b per yearCosts saving: US1b per year(E(E--Government Government –– James Yong)James Yong)

!! Paperless clearance Paperless clearance !! Cashless transactionsCashless transactions

The World Bank European UnionKey Considerations!! System availability System availability -- must be 24x7 and achieving must be 24x7 and achieving

99.98% uptime99.98% uptime!! Conduct BPR to remove redundancy and Conduct BPR to remove redundancy and

streamline processes and procedures ( for both streamline processes and procedures ( for both Manual and System )Manual and System )

!! Adoption of Standards ( e.g. Adoption of Standards ( e.g. RosettaNetRosettaNet, , UNEDIFACT, UNEDIFACT, ebXMLebXML ) )

!! Standardise practises on trade documents and Standardise practises on trade documents and Goods classification ( to achieve cross border Goods classification ( to achieve cross border trading )trading )

!! Build and Automate processes to improve Build and Automate processes to improve turnaround timeturnaround time

!! Close Collaboration with all parties involvedClose Collaboration with all parties involved

The World Bank European UnionFuture PlansFuture Plans

!! Liberalisation of VANLiberalisation of VAN!! More integration to trade industries, for More integration to trade industries, for

example : Logistics, Shipping and freight example : Logistics, Shipping and freight forwarders.forwarders.

!! Objective to reduce data entry, Objective to reduce data entry, information sharing and further costs information sharing and further costs savingsaving

!! Centralised platform to act as National Centralised platform to act as National Hub for all trade activities Hub for all trade activities

!! To value add and serve the trade To value add and serve the trade communities bettercommunities better

The World Bank European UnionFuture Plans

!! Introduction of EIntroduction of E--Logistics HubLogistics Hub!! Achieving CrossAchieving Cross--border trading and Free border trading and Free

Trade Agreement (FTA) between countriesTrade Agreement (FTA) between countries!! Achieving WCO Recommendations :Achieving WCO Recommendations :

# To promote co-operation between Customs administrations;

# To standardize Members' practices regarding duty reliefs, repayment or remission;

# To facilitate the international transport of goods and travel and tourism;

# To promote the harmonized use of information technology;

# To facilitate and expedite the implementation of certain international Conventions;

# To simplify and harmonize Customs documents;# To ensure that adequate legal remedies are available to

the taxpayer.


TransportationTransportationOperatorOperator

3PL/4PL••Freight ForwardersFreight Forwarders

Government AgenciesGovernment Agencies

••CustomsCustoms••Control AgenciesControl Agencies••Chamber of CommerceChamber of Commerce

Market Place

••ManufacturersManufacturers••SuppliersSuppliers

WorkflowEvent MessagingBusiness Rules

Process KnowledgeIntegration of Application

VisibilityFreightManagement

SystemTransport

ManagementSystem

Payment Trade Documentation

CustomerServiceCenter

OrderFulfillment

$$ Integration is the Key to Success for eIntegration is the Key to Success for e--CommerceCommerce

FinancialFinancialService ProviderService Provider

••BankBank••InsuranceInsurance

Future of Future of TradeNetTradeNet ®®


Illustration of Current Typical Trade Transaction


The World Bank European UnionFuture of Future of TradeNetTradeNet ®®

Single Window Single Window ee--LogisticsLogistics

Permit

BL

House BL

Shipping Instruction

Illustration of Integrated e-Logistics


! Customers unwilling to pay for or trust such services/transactions.

! Some doubts on the return on investment for integration technology (which can be expensive).

! Policy issues – Data Protection, Pricing, Service Standards, enforcement, etc.

! Getting the agreement of all stakeholders including Governments, Suppliers, Customers, 3PL Parties, Banks and Insurance Companies

! Lack of a globally accepted suite of integration technologies and standards.

Challenges of Integrated Single Window e-Logistics Hub



• Key Benefits of Integrated Single Window e-Logistics% increased trade revenue% streamlined procedures% seamless experience for traders% reduced business cost% increased productivity% fast turnaround (cost and process)% empowered customers

• Example of Benefits% Realized Lower Freight Costs% Improved Order Cycle Times% Reduced Inventory% Enhanced Customer Service% Focus on Core Competencies



Let Us Be a VALUE-CREATOR For Your Organisation


•King, J. and Konsynski, B. Singapore TradeNet (A): A Tale of One City. Harvard Business School, Case 9-191-009, Cambridge, MA, 1990.

•Neo, B.S.; King, J. and Applegate, L. Singapore TradeNet (B): The Tale Continues. Harvard Business School, Case N9-193-136, Cambridge, MA, 1993.

•Teo, H.H.; Tan, C.Y. and Wei, K.K. Organizational Transformation Using Electronic Data Interchange: The Case of TradeNet in Singapore. Journal of Management Information Systems, Vol. 13, No. 4 (1997), pp.139-165.

Reference

Useful Linkswww.tradenet.gov.sgwww.customs.gov.sg

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