6th NIGERIA INTERNATIONAL MARITIME PORTS & TERMINALS EXPO AND CONFERENCE Achieving the Nigeria Single Window Vision Feasibility Study Report Summary NIMPORT 2013 - August 29th, 2013 This is a confidential document intended for the use and information of the client to whom it is addressed and implementing partners THE CHALLENGE The current international trade environment involves complex international trade processes with disparate systems… Each international trade transaction requires an average of 40 documents of 200 data elements, with 15% repeated at least 30 times and 60-70% repeated more than once. (UNCTAD) SINGLE WINDOW BACKGROUND Single Window is defined by the UN and WCO as… THE SOLUTION The Optimum Goal of Single Window is to create an integrated workspace of data and business processes for all trade related activities and stakeholders, with the trader at the core. … delivering a one stop shop for traders whilst creating a customer-centric Service environment THE SCOPE The UN/CEFACT Buy Ship Pay model helps illustrates the integration and optimisation of processes, documents and data elements across the International Trade Supply Chain UN/CEFACT Buy Ship pay model at core of system providing a seamless environment for the trader… Buy Prepare for export Ship/Deliver Export Transport Pay Prepare for import Import INVOLVING Commercial Procedures • Establish Sales Contacts • Order Goods or Services • Advice on Delivery • Request Payment Transport Procedures • Establish Transport Contract • Collect, Move and Deliver Goods • Provide Waybills, Goods Receipts, Status Reports, Etc. Regulatory Procedures Financial Procedures • Obtain Import/Export Licenses etc. • Provide Customs Declarations • Provide Cargo Declaration • Apply Trade Security Procedures • Clear Goods for Export/Import • Provide Credit Rating • Provide Insurance • Provide Credit • Execute Payment • Issue Statement A HOLISTIC APPROACH To achieve the aims of a Single Window environment, a robust integrated, holistic, multi-phased approach is essential to realising the shared values of all stakeholders, focussing on the 4Ps –PEOPLE; PROCESSES; PLATFORM & POLICY CHANGE MANAGEMENT Managing Implementation Planning Defining Stakeholders & Responsibilities Training Establishing a Legal Framework Defining Scope & Concept Launch Technology Evaluation Readiness Assessment Data & Process Harmonisation Financial Models Launch Support Promotion & Communications Strategy PRIMARY STAKEHOLDERS Customs, Traders, Agents, Banks etc. SECONDARY STAKEHOLDERS Trade Agencies SUPPORTING STAKEHOLDERS Political Leadership, Unions etc. STAKEHOLDER INPUT RISK MANAGEMENT Single Window Roadmap LAYING THE FOUNDATION THE APPROACH The analysis was based on a framework covering each of the 4 dimensions illustrated below; conducted by a team of consultants with the support of NCS and other government agency officers… The project adopted the BPA tool of Enterprise Architect and Share Point for communication. Stakeholder engagement at all levels particularly including Private Sector, to ensure the realisation of a NIGERIAN Single Window aligned to international standards and fit for purpose. Stakeholders engaged during the study included…. GOVERNMENT AGENCIES Central Bank of Nigeria (CBN) Federal Airports Authority of Nigeria (FAAN)* Federal Inland Revenue Service (FIRS) Federal Road Safety Commission (FRSC) National Administration for Food and Drug Administration and Control (NAFDAC) National Environmental Standard and Regulation Enforcement (NESREA) Nigeria Copyright Commission Nigeria Customs Service (NCS) Nigeria Port Authority (NPA) Nigeria Shippers Council (NSC) Nigerian Agricultural Quarantine Service (NAQ) Standard Organisation of Nigeria (SON) COMMERCIAL BANKS IMPORTERS/EXPORTERS Access Bank MAN Procter & Gamble Zenith Bank PZ BAT Diamond Bank TERMINAL OPERATORS Union Bank AP MOLLAR CRESEADA AGENTS/FREIGHT FORWARDERS SAPID F&E EXCISE FACTORIES GMT Nigeria Breweries Guinness DENCA SHIPPING AND AIRLINES RAR/SCANNING SERVICE PROVIDERS MAERSK Cotecna ALLIED AIR Global Scan Ltd CARGO LUX Robinson COMET SGS CURRENT ENVIRONMENT Business Process Analysis (BPA) and Data Harmonisation THE CURRENT ENVIRONMENT The World Bank Trading Across Borders Index, measures and ranks countries on the time, cost, number of processes and documents required for import and export with Nigeria ranged 146 out of 183 in 2011 A SNAPSHOT VIEW FROM THE TRADER PERSPECTIVE Key Performance Indicators (KPIs) for the measurement of success and achievements of the Nigeria Single Window programme can be mapped unto the Trading Across Borders Rankings. IMPORT PROCEDURES INDICATOR Duration (days) US$ Cost Documents to export (number) 10 Time to export (days) 24 Cost to export (US$ per container) Documents Preparation 19 330 12 360 1,263 Customs clearance and technical control 450 Documents to import (number) 9 Ports and 5 terminal handling 3 300 Time to import (days) 39 Inland transportation and handling Cost to import (US$ per container) 1,440 TOTAL DAYS 39 1,440 Example Time-Procedure Chart for Wheat and Meslin Import Process (AS-IS vs TO-BE) Data Harmonization Based on the sample documents collected during the BPA activities… 10 Government Agencies 73 documents 764 data elements Only 2% shared by 7 agencies 527 standalone data elements CREATION OF National Data Model aligned to WCO Data Model CURRENT ENVIRONMENT ICT Readiness ICT AS-IS NSW Vision TO BE Warehouse Mg Terminal Operator rg o us at St c, tio n, C NNSW Certificates PROCESSES Form M RAR Declarations Reporting Issued LPCO Inspection Info Release approval Statistics/Reporting Government Agencies do Foreign Importer/ Exporter ht Product In fo, Invoice. ig oti fi Da catio ng n, er o u C a rg sG o oo dec ds lar a re ,F ce lN an va ur Shipper Freight Forwarder s In Ar ri IMPORT EXPORT TRANSIT Release inf o, ARRIVAL/ DEPARTURE Inspection mt , Re Insp lea ec se tio n Container yard Ca Unloading Cargo ICT GOVERNANCE ORGANISATION DATA HARMONISATION COORDINATION LEGISLATION ar In Delivery Inland Transporter s tu ta S , fo P, NX , RM , SGD O F t , en M m y m For n, Pa o ht, eig plicati dates r F Importer/Exporter/ , p Ap su o i ce Inv LPCO Statu Agent , R RA go Form M RAR Payments Statistics/ Reporting Bank CURRENT ENVIRONMENT Roadmap Proposed Nigeria Single Window Vision/Goals 50% Better, Faster and Cheaper Trade Across Border Indicators* within 5 years** For export process • From (As-Is) 24 days(time), 1263 USD/Container (cost) • To (To-Be) 12 days(time), 600 USD/Container (cost) For import process • From (As-Is) 39 days(time), 1440 USD/Container (cost) • To (To-be) 20 days(time), 700 USD/Container (cost) ** The expected impact on trade transaction cost reduction could approximately be more than 130 million USD per year (if assuming about 200,000 export/import containers per year are shipped). * According to World Bank’s Doing Business Indicators Expected QUALITATIVE benefits include… – – – – – – – – – – – Improved and effective collection of government revenues Simpler, faster processes for clearance and release Reduced costs of compliance Reduced corruption Reduction in bureaucratic processes Improved trader compliance Risk management techniques for control and enforcement purposes Predictable application and explanation of rules Boost to Economic Growth Increased Foreign Direct Investment Effective national Management Information System Increased competitiveness of the national economy EMPOWERMENT and CAPACITY BUILDING Lies at the core of REALISING THE SW NATIONAL VISION ! …and a good map helps! Nigeria Trade Information Portal – www.nigeriatradehub.gov.ng Single Window Application Proof of Concept – www.nigerianationalsinglewindow.gov.ng Pre-Arrival Assessment Report (PAAR) Process Manual THANK YOU! For questions or to discuss further contact: j.rufai@customs.gov.ng DEMO