Meeting the eCommerce
challenge
Post-Customs Electronic Data Exchange
Harald Weyerich
Director UPU Postal Technology Centre
POSTAL
TECHNOLOGY
CENTRE
(DOT)
© UPU
2014 – All rights
reserved
WCO Knowledge Academy
4th July 2014
POSTAL TECHNOLOGY CENTRE
1
Agenda
– Postal Supply Chain & Electronic Data Flow
– Formal Basis Documents
– Motivation for Electronic Exchange
– Electronic Messages
– The UPU Customs Declaration System (CDS)
– Steps to the Electronic Data Exchange
– Pilot countries
– The Postal Export Guide (PEG)
– CDS screenshots (Annex)
POSTAL
TECHNOLOGY
CENTRE
(DOT)
© UPU
2014 – All rights
reserved
POSTAL TECHNOLOGY CENTRE
2
Postal Supply Chain & EDI message flow
EDI (XML) message Post-Customs:
POSTAL
TECHNOLOGY
CENTRE
(DOT)
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2014 – All rights
reserved
POSTAL TECHNOLOGY CENTRE
3
The UPU Electronic Message Network
Standard EDI network
(POST*Net) operated by UPU
Since 1996
Carrier
Private peer-to-peer network
through internet, 24*7
100% availability
Secured transport (VPN, SSL)
Business continuity
Export customs
Performant (0-5 min processing)
POST*Net
Track &
Trace
(barcodes)
Import customs
Monitoring & alerting service
Used by 170 postal operators
Very affordable (cost-based)
Could be used also by other
Int’l Organizations
Transit post
Sender
Export post
POSTAL
TECHNOLOGY
CENTRE
(DOT)
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2014 – All rights
reserved
Level of detail:
• Item, bag, dispatch
consignment
• Consignment
Import post
POSTAL TECHNOLOGY CENTRE
Receiver
•
•
Item (declaration)
Item (query)
4
Agenda
– Postal Supply Chain & Electronic Data Flow
– Formal Basis Documents
– Motivation for Electronic Exchange
– Electronic Messages
– The UPU Customs Declaration System (CDS)
– Steps to the Electronic Data Exchange
– Pilot countries
– The Postal Export Guide (PEG)
– CDS screenshots (Annex)
POSTAL
TECHNOLOGY
CENTRE
(DOT)
© UPU
2014 – All rights
reserved
POSTAL TECHNOLOGY CENTRE
5
Basis for the Customs treatment of postal items
– Kyoto Protocol Annex J
– Standard declaration
forms
POSTAL
TECHNOLOGY
CENTRE
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POSTAL TECHNOLOGY CENTRE
6
Basis for the Customs treatment of postal items (2)
— WCO PTC decision (2011)
At its 191st/192nd Sessions (22 to 25 March 2011), the WCO Permanent Technical
Committee
(PTC) decided:
141. Following this examination the focus group had concluded that in principle the WCO
was in a position to endorse the data requirements of the CUSITM/CUSRSP, on the
understanding that it was a living information technology (IT) messaging guide which could
be improved continuously based on developments in this field, including the results of
ongoing pilot projects. To that end, the focus group had also recognized that in the future,
any minor gaps could be filled through mutual consultation between the two
Secretariats
146. The Meeting took note of the analysis carried out by the IMSC, and of the UPU’s
presentation on the CUSITM/CUSRSP. It endorsed, in principle, the design and content of
the CUSITM/CUSRSP as a tool developed jointly by the UPU and the WCO, and agreed
that it should be called “WCO-UPU Customs-Post Electronic Messages”.
POSTAL
TECHNOLOGY
CENTRE
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2014 – All rights
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POSTAL TECHNOLOGY CENTRE
7
Basis for the Customs treatment of postal items (3)
– UPU Convention Article 9 (2012)
•
1
Member countries and their designated operators shall observe the security requirements
defined in the UPU security standards and shall adopt and implement a proactive security strategy
at all levels of postal operations to maintain and enhance the confidence of the general public in the
postal services, in the interests of all officials involved. This strategy shall, in particular, include the
principle of complying with requirements for providing electronic advance data on postal items
identified in implementing provisions (including the type of, and criteria for, postal items)
adopted by the Council of Administration and Postal Operations Council, in accordance with
UPU technical messaging standards. The strategy shall also include the exchange of information on
maintaining the safe and secure transport and transit of mails between member countries and their
designated operators.
•
2
Any security measures applied in the international postal transport chain must be
commensurate with the risks or threats that they seek to address, and must be implemented
without hampering worldwide mail flows or trade by taking into consideration the specificities of
the mail network. Security measures that have a potential global impact on postal operations
must be implemented in an internationally coordinated and balanced manner, with the
involvement of the relevant stakeholders.
POSTAL
TECHNOLOGY
CENTRE
(DOT)
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2014 – All rights
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POSTAL TECHNOLOGY CENTRE
8
Basis for the Customs treatment of postal items (4)
– Under development:
« Postal Model » for Security-related electronic pre-advice
POSTAL
TECHNOLOGY
CENTRE
(DOT)
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2014 – All rights
reserved
POSTAL TECHNOLOGY CENTRE
9
Agenda
– Postal Supply Chain & Electronic Data Flow
– Formal Basis Documents
– Motivation for Electronic Exchange
– Electronic Messages
– The UPU Customs Declaration System (CDS)
– Steps to the Electronic Data Exchange
– Pilot countries
– The Postal Export Guide (PEG)
– CDS screenshots (Annex)
POSTAL
TECHNOLOGY
CENTRE
(DOT)
© UPU
2014 – All rights
reserved
POSTAL TECHNOLOGY CENTRE
10
Why electronic pre-advice for postal items ?
– Legal requirements
•
US, China, EU
– Security requirements
•
Pre-advice to be sent before item leaves country of origin
•
Confirmation of correct export processing to destination Customs and
transport airlines
•
Provide possibility for security alerts back to origin
– Reduce / maintain customs processing time
•
Customs decision making while item is on route
•
Possibility for « automated » Customs decisions for low-risk items
•
Postal volume increasing but not Customs staff
•
Direct inject possible from shippers/online shops
POSTAL
TECHNOLOGY
CENTRE
(DOT)
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2014 – All rights
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POSTAL TECHNOLOGY CENTRE
11
How can cost be minimised ?
– Usage of UPU-WCO standard
•
Avoids costly bespoke IT interfaces
•
Planned interface with ASYCUDA (end 2014)
– Usage of standard software
•
UPU CDS is currently the only IT system for postal customs declaration &
security
– More volume with same staff
•
By having the electronic declaration in advance (even before the item
leaves the origin country), there is enough time to do risk analysis and
rating
•
Automated pre-arrival preliminary decisions on selection for inspection
and/or tax/duty rating for low-risk items saves manual workload, speeds
up the import process and supports trade facilitation
–
Of course any pre-arrival decision can be overridden anytime
POSTAL
TECHNOLOGY
CENTRE
(DOT)
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2014 – All rights
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POSTAL TECHNOLOGY CENTRE
12
The cost of inactivity
– Postal items piling up
•
With growing international eCommerce volume and no staff increase,
bottleneck situations will occur
– Impact

Increase of elapsed time retailer-to-buyer = decreased citizen satisfaction

This will then be the opposite of Trade Facilitation
POSTAL
TECHNOLOGY
CENTRE
(DOT)
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2014 – All rights
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POSTAL TECHNOLOGY CENTRE
13
Major benefits
•
•
Reduce handling time at Posts and Customs and increase throughput
injection of electronic declarations directly from large mailers or internet
–
•
Data entry by customers – not by the post !
declaration data can be fed into customs risk management systems –
–
better targeting, trend analysis and reaction to security incidents/threats
–
concentrate Customs resources on highest threat areas
–
advance sender/recipient information for security checks
•
better communication between Post and Customs
•
faster Customs clearance of mail items and improved service quality for
postal customers
•
Pre-advice and Pre-clearance can be used to collect duties/taxes in
advance
•
Security information/alerts can be fed back to origin country
POSTAL
TECHNOLOGY
CENTRE
(DOT)
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2014 – All rights
reserved
POSTAL TECHNOLOGY CENTRE
14
Agenda
– Postal Supply Chain & Electronic Data Flow
– Formal Basis Documents
– Motivation for Electronic Exchange
– Electronic Messages
– The UPU Customs Declaration System (CDS)
– Steps to the Electronic Data Exchange
– Pilot countries
– The Postal Export Guide (PEG)
– CDS screenshots (Annex)
POSTAL
TECHNOLOGY
CENTRE
(DOT)
© UPU
2014 – All rights
reserved
POSTAL TECHNOLOGY CENTRE
15
Electronic Exchange Post-Customs
EDI (XML) messages:
–CUSITM
• electronic version of paper customs declaration forms
CN22,CN23,CP72
–CUSRSP
• electronic answer from Customs/Border Control to
Post
• item to be presented (mandatory)
– duties/taxes/other information
(optional, if possible)
– security-related messages
e.g. do-not-load msg
Common
UPU-WCO
Standard
compliant with
WCO Data Model
V3
–ITMATT
• reserved only for customs data interchange between
Postal Operators
POSTAL
TECHNOLOGY
CENTRE
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POSTAL TECHNOLOGY CENTRE
16
Message Flow CUSITM/CUSRSP/ITMATT
Item level details
captured at origin
country
CUSITM
Post
in origin country
• Individual enters data
online or at post office
ITMATT
Post
in destination country
CUSRSP
• Post office enters data
• Shipper submits data via
IT interface
• Capture at Hub or OE
CUSITM
copy
CUSRSP
CUSRSP
Customs
in origin country
CUSITM
Customs
in destination country
Styles:
 Normal flow
 Optional additional flow
POSTAL
TECHNOLOGY
CENTRE
(DOT)
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2014 – All rights
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POSTAL TECHNOLOGY CENTRE
17
Agenda
– Postal Supply Chain & Electronic Data Flow
– Formal Basis Documents
– Motivation for Electronic Exchange
– Electronic Messages
– The UPU Customs Declaration System (CDS)
– Steps to the Electronic Data Exchange
– Pilot countries
– The Postal Export Guide (PEG)
– CDS screenshots (Annex)
POSTAL
TECHNOLOGY
CENTRE
(DOT)
© UPU
2014 – All rights
reserved
POSTAL TECHNOLOGY CENTRE
18
UPU Customs Declaration System (CDS)
– The UPU created with CDS a full management system for
•
Postal electronic pre-advice of merchandise to the destination
Post/Customs
•
With separated functions for
–
Postal use (capture & route pre-advice message)
–
Customs use (pre-select, decide, rate & taxation)
–
Security use (referrals/alerts to be sent to import and/or export post)
– Based on the joint WCO-UPU message standard
– Customs can use CDS directly or interface it with its own
risk/rating system
– CDS is ready to use since 1st Jan 2013 !

Use central solution hosted at UPU or

Implement local solution (at post and/or Customs)
POSTAL
TECHNOLOGY
CENTRE
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2014 – All rights
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POSTAL TECHNOLOGY CENTRE
19
UPU CDS V1 Work & Data flow
eCommerce
UPU
Feedback CUSRSP
POST*Net
CUSITM
ITMATT
Configure
• Selectivity rules
• Rating rules (Tax calc.)
• Feedback-to-origin rules
Shipper’s
system
Post Office
CUSITM
CUSITM
OE
OE
CUSRSP
CUSRSP
IPS
CDS
IPS
CDS
Risk
Mgt
export Post
CUSITM/CUSRSP flow
POSTAL
TECHNOLOGY
CENTRE
(DOT)
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export Customs
optional flow
import Post
Partial information flow
POSTAL TECHNOLOGY CENTRE
Risk
Mgt
import Customs
configuration
20
Functionality overview:














Postal
Declaration data capture (web service)
Import/export declaration data (files or API interface)
Route declaration to partner Post (ITMATT message)
Route declaration to Customs/border control (CUSITM message)
Create response from Customs (CUSRSP message) including
decision and feedback information to be forwarded to origin Post
Receive response from Customs (CUSRSP message) and
possibly forward feedback information to origin Post
View/review/list/select declarations
Cancel declarations
Transfer link to an image of the item (if provided by origin Post)
Selectivity rule engine
(automaticaly select action for items based on rules)
Rating rule engine (automatically calculate tax/duty based on rules)
FX (foreign exchange rate) management and conversion
(convert currency values to local currency)
Audit trail (track and trace for actions on a declaration)
Interaction with IPS (UPU mail mgt. System)
POSTAL
TECHNOLOGY
CENTRE
(DOT)
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2014 – All rights
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POSTAL TECHNOLOGY CENTRE
Customs
X
X
X
X
X
X
X
X
X
X
X
All Customs
configurations
are hidden to
postal users !
X
X
X
X
X
X
X
21
UPU CDS V2 new functionality
CDSv2 SP2 release in April 2014
–
e-Commerce pre-clearance support. Option to send duties&taxes
response to origin
–
Ability to define multiple rules for a given customs decision/auto-
response
•
E.g. Present if item is EMS from Switzerland or Parcel from Canada.
–
Ability to define your own user groups
–
Daily exchange rates feed
–
Improved user interface
•
Declaration layout, sorting of search, better support of non-standard mail item IDs,
declared value in local currency
–
Operational process
•
Decision code and reason displayed on pop up screens in IPS, focus removed from
«Close» button. Overall message look and feel improved (IPS 2013 SP3)
POSTAL
TECHNOLOGY
CENTRE
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2014 – All rights
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POSTAL TECHNOLOGY CENTRE
22
Integration of CDS into other systems
Postal systems
Point-ofSales
Customs & security
Back-office
/ Sorter
Postal
website
Shippers / large mailers
Online
shop
Office of
Exchange
Web.API
•
e.g.
ASYCUDA
(automated & synchronous)
Web application interface – direct
call with SOAP protocol
File
•
(automated & asynchronous)
Files containing declarations /
responses in CUSITM/CUSRSP
Purchase
system
CDS
format
Web Human Interface
POSTAL
TECHNOLOGY
CENTRE
(DOT)
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2014 – All rights
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Security
Risk
Mgt /
fiscal
•
(manual)
Web
screens
for CENTRE
entry/query
POSTAL
TECHNOLOGY
23
Agenda
– Postal Supply Chain & Electronic Data Flow
– Formal Basis Documents
– Motivation for Electronic Exchange
– Electronic Messages
– The UPU Customs Declaration System (CDS)
– Steps to the Electronic Data Exchange
– Pilot countries
– The Postal Export Guide (PEG)
– CDS screenshots (Annex)
POSTAL
TECHNOLOGY
CENTRE
(DOT)
© UPU
2014 – All rights
reserved
POSTAL TECHNOLOGY CENTRE
24
The steps to electronic Customs data exchange
– Cooperate with Posts
●
Agree processes, show available UPU standards (CUSITM/CUSRSP) and tools
(CDS)
●
Participate in a Post-Customs coordination team
– Agree a pilot phase
●
Using CDS Central at the UPU to learn, test and review updated process
together with the Post
●
Use samples from partners (real data) loaded into CDS
●
Identify a possibly pilot corridor with one country
●
No cost involved besides workload for the Post-Customs coordination team
POSTAL
TECHNOLOGY
CENTRE
(DOT)
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2014 – All rights
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POSTAL TECHNOLOGY CENTRE
25
The steps to electronic Customs data exchange (2)
– Agree on the data to be sent back to the Post
●
Decision, e.g. pre-clearance (before arrival in country) of low-risk items
●
Feedback on import duties/taxes/other charges
●
Feedback on additonal documents needed
●
Possibly security related messages
●
Possibility to forward import cost feedback from destination customs to
origin post  which can forward to shipper/online shop
– Assess impact on both postal and customs processes
●
Use opportunity to identify improvements in the process
●
Identify usage of IT systems (e.g. Customs can start to use CDS, if they
have no own system or they create an interface)
– Plan the Integration project
•
To implement the electronic exchange of data
POSTAL
TECHNOLOGY
CENTRE
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POSTAL TECHNOLOGY CENTRE
26
New Opportunities
– Prepayment of Customs taxes/duties by sender or receiver
●
Avoids keeping items in warehouse just for tax collection reason
– Watchdog service
•
Shipper may cancel shipment and stop merchandise while it is in the postal
supply chain (at outbound or inbound scans)
•
Customs can use the functionality to manage referrals and interdict items
POSTAL
TECHNOLOGY
CENTRE
(DOT)
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2014 – All rights
reserved
POSTAL TECHNOLOGY CENTRE
27
Agenda
– Postal Supply Chain & Electronic Data Flow
– Formal Basis Documents
– Motivation for Electronic Exchange
– Electronic Messages
– The UPU Customs Declaration System (CDS)
– Steps to the Electronic Data Exchange
– Pilot countries
– The Postal Export Guide (PEG)
– CDS screenshots (Annex)
POSTAL
TECHNOLOGY
CENTRE
(DOT)
© UPU
2014 – All rights
reserved
POSTAL TECHNOLOGY CENTRE
28
UPU CDS Central – pilot exchanges
(May 2014)
Own solution – ready to send/receive ITMATT to/from CDS
CDS user
PT
BR
IN
CA
CZ
(prod)
AU
GB
CL
UY
US
(prod)
POSTAL
TECHNOLOGY
CENTRE
(DOT)
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2014 – All rights
reserved
HU
MA
ZA
HR
UG
POSTAL TECHNOLOGY CENTRE
RS
29
UPU CDS
– Local Pilot environment installations
•
Czech Republic Q4 2013
•
Canada Q1 2013 (production planned Q2 2014)
•
Portugal Q4 2013
Pilot partners:
•
Australia Q3 2014
•
Canada Post
•
USPS
– Piloting / Testing / Planning
(CDS central)
•
Rep. of Serbia
•
Brazil
•
South Africa
•
Croatia
•
Chile
•
Nigeria
•
Latvia
•
Morocco
•
SwissPost
•
Portugal
•
India
•
Austria
•
Hungary
•
Malaysia
•
Philippines
•
Australia
•
Belarus
•
Thailand
•
Estonia
•
Uruguay
POSTAL TECHNOLOGY CENTRE
POSTAL
TECHNOLOGY
CENTRE
(DOT)
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2014 – All rights
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Are ready to
exchange with
any CDS user !
30
Agenda
– Postal Supply Chain & Electronic Data Flow
– Formal Basis Documents
– Motivation for Electronic Exchange
– Electronic Messages
– The UPU Customs Declaration System (CDS)
– Steps to the Electronic Data Exchange
– The Postal Export Guide (PEG)
– CDS screenshots (Annex)
POSTAL
TECHNOLOGY
CENTRE
(DOT)
© UPU
2014 – All rights
reserved
POSTAL TECHNOLOGY CENTRE
31
Postal Export Guide (PEG) – Context
The PEG replaces two UPU publications by a Web Service with enhanced
possibilities for users.
It can be separated in two sections:
PEG
Customs
Matters
Guide
•
•
Customs Matters Guide – Single WCO–UPU
Customs publication
Result of a Questionnaire filled in jointly by
Customs and Posts
POSTAL
TECHNOLOGY
CENTRE
(DOT)
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2014 – All rights
reserved
Prohibited
and
restricted
articles
•
•
Electronic list of prohibited and restricted
items
Search facility by country, HS code and
description
POSTAL TECHNOLOGY CENTRE
32
Postal Export Guide &
Customs Matters Guide - usage
Edit
Validate
Public
Postal Operator
and
Customs
POSTAL
TECHNOLOGY
CENTRE
(DOT)
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2014 – All rights
reserved
UPU
Web services
Queries
from any 3rd Consult the via a web
PDF
party application
interface
POSTAL TECHNOLOGY CENTRE
33
Customs Matters Guide - usage
«P»
information
by Post
«C»
information
by Customs
POSTAL
TECHNOLOGY
CENTRE
(DOT)
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2014 – All rights
reserved
POSTAL TECHNOLOGY CENTRE
34
Customs Matters Guide - usage
PostCustoms
relationship
POSTAL
TECHNOLOGY
CENTRE
(DOT)
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2014 – All rights
reserved
POSTAL TECHNOLOGY CENTRE
35
Postal Export Guide - Prohibited
and restricted articles
by UPU:
• Import the WCO HS Codes, maintain the system
by country:
• Translate each WCO HS Code description into the
country language.
• Set the admissibility rules at level of code or range
of codes
– Attach documents
– Import procedures (local or global notes)
– Charges
• Manage WCO HS Codes extensions at country
level
• Textual search and code search.
– Display all code results for a word search
POSTAL
TECHNOLOGY
CENTRE
(DOT)
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2014 – All rights
reserved
POSTAL TECHNOLOGY CENTRE
36
Postal Export Guide - Prohibited and restricted articles
live turkeys
prohibited
preparations of
turkey meat are
allowed
POSTAL
TECHNOLOGY
CENTRE
(DOT)
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2014 – All rights
reserved
POSTAL TECHNOLOGY CENTRE
37
Prohibited and restricted articles – edit restriction
Now the global note is attached to the selected good, further details can be added such as:
•Charges (
): monetary charges.
•Attachments ( ): for example a form to fill.
•Notes ( ): more information about the restriction.
•Origin countries ( ): if this restriction applies only to certain origin countries.
POSTAL
TECHNOLOGY
CENTRE
(DOT)
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2014 – All rights
reserved
POSTAL TECHNOLOGY CENTRE
38
Prohibited and restricted articles – edit restriction
edit restriction
on banknotes
POSTAL
TECHNOLOGY
CENTRE
(DOT)
© UPU
2014 – All rights
reserved
POSTAL TECHNOLOGY CENTRE
39
Prohibited and restricted articles – edit restriction
restriction shows
on the overview
POSTAL
TECHNOLOGY
CENTRE
(DOT)
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2014 – All rights
reserved
POSTAL TECHNOLOGY CENTRE
40
Thank you !
Questions ?
please contact:
Harald Weyerich
Director Postal Technology Centre, UPU
harald.weyerich@upu.int
POSTAL
TECHNOLOGY
CENTRE
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2014 – All rights
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POSTAL TECHNOLOGY CENTRE
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Agenda
– Postal Supply Chain & Electronic Data Flow
– Formal Basis Documents
– Motivation for Electronic Exchange
– Electronic Messages
– The UPU Customs Declaration System (CDS)
– Steps to the Electronic Data Exchange
– Pilot countries
– The Postal Export Guide (PEG)
– CDS screenshots (Annex)
POSTAL
TECHNOLOGY
CENTRE
(DOT)
© UPU
2014 – All rights
reserved
POSTAL TECHNOLOGY CENTRE
42
CDS Example
user interface
Main user screen
(Customs admin)
POSTAL
TECHNOLOGY
CENTRE
(DOT)
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2014 – All rights
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POSTAL TECHNOLOGY CENTRE
43
CDS Example user interface
customer at Post office filling in a Customs Declaration
Reserved for
image
(if available)
POSTAL
TECHNOLOGY
CENTRE
(DOT)
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2014 – All rights
reserved
POSTAL TECHNOLOGY CENTRE
44
CDS Example
user interface
(Customs user)
Select a
Declaration..
..and sort
By columns
POSTAL
TECHNOLOGY
CENTRE
(DOT)
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2014 – All rights
reserved
POSTAL TECHNOLOGY CENTRE
45
CDS Example
user interface
(Customs user)
View a
Customs
Declaration
& decide
Automatic
calculation (if
rules are
defined)
POSTAL
TECHNOLOGY
CENTRE
(DOT)
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2014 – All rights
reserved
POSTAL TECHNOLOGY CENTRE
46
CDS Example
user interface
(Customs user)
View
Declaration
history
POSTAL
TECHNOLOGY
CENTRE
(DOT)
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2014 – All rights
reserved
POSTAL TECHNOLOGY CENTRE
Who did what
On the
declaration
47
CDS Example
user interface
(Customs admin)
Rules for each
decision code
Manage
Automated
Customs
Responses
(select rule)
POSTAL
TECHNOLOGY
CENTRE
(DOT)
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2014 – All rights
reserved
POSTAL TECHNOLOGY CENTRE
48
CDS Example
user interface
(Customs admin)
Manage
Automated
Customs
Responses
(edit rule)
POSTAL
TECHNOLOGY
CENTRE
(DOT)
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2014 – All rights
reserved
Flexible logical
expression for
rule definition
POSTAL TECHNOLOGY CENTRE
49
CDS Example
user interface
(Customs admin)
Manage
Automated
Rating rules
(edit rule)
POSTAL
TECHNOLOGY
CENTRE
(DOT)
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2014 – All rights
reserved
POSTAL TECHNOLOGY CENTRE
50
CDS Example
user interface
(Customs admin)
Defining and
executing
Own reports
POSTAL
TECHNOLOGY
CENTRE
(DOT)
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2014 – All rights
reserved
POSTAL TECHNOLOGY CENTRE
51
CN 22/23 forms
POSTAL
TECHNOLOGY
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