Single Window Development and Implementation Experience of Singapore Dr. Chong Yoke Sin Chief Operating Officer NCS Pte Ltd UNESCAP-UNECE CAPACITY BUILDING WORKSHOP ON TRADE FACILITATION IMPLEMENTATION FOR ASIA AND THE PACIFIC REGION 17 – 18 March 2005, Kuala Lumpur, Malaysia Agenda Experience of Singapore: The Single Window Implementation The Next Big Thing: Integrated Single Window e-Logistics A Vision: Single Window Inter-operability About NCS Copyright 2005 NCS Pte. Ltd. All Rights Reserved. UNECE UN/CEFACT Background Making Waves Since the 1980s ( Singapore Roadmap ) Fifth Wave Fourth Wave Third Wave IT2000 Second Early 90s Wave National ITPlan First Wave Mid 80s National Computerisation Plan Early 80s Infocomm21 Late 90s Connected Singapore 2003 - TradeNet •Conceptualized in 1986 as part of National IT Plan • Implemented in 1st Jan 1989 by Singapore Customs Copyright 2005 NCS Pte. Ltd. All Rights Reserved. UNECE UN/CEFACT Background TradeNet Process Trade & manifest info Traders Permit Applications Cargo Clearance Cargo Clearance Permits EDI VAN Operator Controlling Agencies Singapore Customs Checkpoints (ICA - Immigration Checkpoint Authority) Copyright 2005 NCS Pte. Ltd. All Rights Reserved. UNECE UN/CEFACT Background The Path of TradeNet 1988 1990 1991 1994 19952000 2003 Version 1.0 - 1.5 Version 1.6 - 1.7 Version 1.8 - 2.0 Version 3.1 • Implemented Electronic Submission • Declarations were batched up • Turnaround time in few days • Improved validations & features • Incorporated GST requirements • Turnaround from hours to ~30 minutes. • Interactive TradeNet • Integrate Internal Systems • Business intelligence/risks profiling • Approval within 2 - 5 minutes • Major business process streamlining • Incorporated Export Control Consignment System (ECCS) • New HS Code (Asean Harmonized Tarrif Nomenclature) Copyright 2005 NCS Pte. Ltd. All Rights Reserved. UNECE UN/CEFACT Design and Development Process Formation of TradeNet Working Committee Chaired by NCB (currently NCS) and Customs Business Process Study Trade documentation business processes Review all Manual processes involved Standards Definition Legal Policy Support Study and Review Goods Classification Introduction of Electronic Transaction Act Evaluate Technology Copyright 2005 NCS Pte. Ltd. All Rights Reserved. UNECE UN/CEFACT Design and Development Process Systems Design Consolidate Data Element to form TradeNet specifications. Operations Plan SOP & Contingency Measure Performance Evolve, Improve and Enhance Payment of Duty and GST via Electronic means ( GIRO ) Copyright 2005 NCS Pte. Ltd. All Rights Reserved. UNECE UN/CEFACT Structure and Services • Submission of TradeNet applications # Import/ Export/ Transshipment # Controlled/Non-controlled/Strategic goods # Payment/Non-payment # Cert of origin and other applications • Amendment & Cancellation of TradeNet applications • Auto Process of TradeNet applications (more than 1000 validation rules) • Enquiry on application status via 24-hours IVR ( Interactive Voice Response System ) • Auto deduction of duty/GST via GIRO • Paperless clearance for TradeNet permits (CCS) Copyright 2005 NCS Pte. Ltd. All Rights Reserved. UNECE UN/CEFACT Participants Government Agencies Singapore Customs ( System Owner ) Controlled Agencies ( e.g. AVA, SPF, etc ) IRAS ( Accounting of GST collection ) RCB ( Registration of Company and Business) IE Singapore ( Statistics department ) Chambers of Commerce for COO Private Sectors Systems Integrator and Operator (NCS) Front-end vendors ( e.g. IPACS, SCS, PSA Portnet) VAN operator (e.g. Crimson Logic) Copyright 2005 NCS Pte. Ltd. All Rights Reserved. UNECE UN/CEFACT Clients Users: Importers/Exporters Freight Forwarders/Carriers 3rd or 4th Party Logistic Companies ( 3PL/4PL ) Port/Terminal Operators (PSA, Jurong Port) Other Trade communities/portals (Warehouse Operators, CCN) Statistics: 3,000+ registered declarant agents 1,000+ customs staffs 30,000 transactions per day. Copyright 2005 NCS Pte. Ltd. All Rights Reserved. UNECE UN/CEFACT Business Model Front-End Systems Development funded by the Government. Operated as an ASP model with transaction charges Backend System Development funded by Government Operation outsourced to private sector (NCS) Copyright 2005 NCS Pte. Ltd. All Rights Reserved. UNECE UN/CEFACT Results Single Window Benefits To the Traders: Simplified commercial framework for both domestic and international trade Faster turnaround time (average approval within 5 minutes) Improved Convenience and efficiency Productivity improvement and Costs saving Faster customs clearance w/ paper-less and cashless transactions To the Government: Increased effectiveness of control methods More effective and efficient deployment of resources Improved trader compliance Facilitates business intelligence through better/faster data capturing Accelerated economic development & Encourage Foreign Investment Copyright 2005 NCS Pte. Ltd. All Rights Reserved. UNECE UN/CEFACT Critical Success Factors Conduct BPR within agencies to remove redundancy and streamline processes and procedures (for both manual and automated systems) Use industry standards for electronic messaging to ease adoption (e.g. UNEDIFACT, ebXML, RosettaNet ) Standardise practises on trade documentation and Goods classification ( to achieve cross border trading ) Close Collaboration & Consultation with all parties involved, including private sectors Copyright 2005 NCS Pte. Ltd. All Rights Reserved. UNECE UN/CEFACT Future Plans Singapore TradeNet: Liberalisation of VAN for competitive pricing & services Deeper integration into trade communities & processes Objective is to reduce duplicate data entry, facilitate information sharing and increase cost savings. Centralised platform to act as National Hub to facilitate trade activities Copyright 2005 NCS Pte. Ltd. All Rights Reserved. UNECE UN/CEFACT Integrated Single Window e-Logistics Integrated Single Window e-Logistics “A neutral and open platform enabling the integration and collaboration among trade, logistics, financial and government communities to fulfill import, export or transit processes and documentation through electronic means, in order to increase information velocity, visibility and accuracy.” © NCS Pte Ltd • Single-Window for all logistical information, requests, and exchange. • Trade Declaration will be one of the Core Applications • Owned and Run by Government or Private Sector Copyright 2005 NCS Pte. Ltd. All Rights Reserved. UNECE UN/CEFACT Integrated Single Window e-Logistics A Logistics Scenario Today: BL, Invoice, Pack List, etc Bank/ Insurance Exporter Shipping Instructions LC Bank LC Application P.O. BL Statuses/ Changes Rates & Schedules Freight Forwarders Domestic Carriers Declaration/ Permits Sea Ports & International Carriers Importer % Data Re-entry? Customs Manual or electronic communication Imagine the scenario of 2000 shippers, 200 LSPs, 20 Banks, 20 Carriers? Copyright 2005 NCS Pte. Ltd. All Rights Reserved. UNECE UN/CEFACT Integrated Single Window e-Logistics Key Issues in e-Logistics Today: Copyright 2005 NCS Pte. Ltd. All Rights Reserved. UNECE UN/CEFACT Integrated Single Window e-Logistics Integrated Single Window e-Logistics Scenario Message Translation Services Permit Open Standards Exporter Shipping Instructions Rates & Schedules Freight Forwarders Draft BL OBL Draft BL Shipping Instructions Schedule/ Status BL, Invoice, Pack List, etc Service Oriented Architecture Statuses/ Changes Bank/ Insurance OBL Sea Ports & International Carriers Declaration/ Permits Value-Add Solutions Electronic communication Customs 3PL/ Domestic Carriers Copyright 2005 NCS Pte. Ltd. All Rights Reserved. UNECE UN/CEFACT Integrated Single Window e-Logistics Key Benefits of Integrated S.W. e-Logistics Copyright 2005 NCS Pte. Ltd. All Rights Reserved. UNECE UN/CEFACT Single Window Inter-operability Towards S.W. Global Trade Business Value Chain >2010’s ? Integrated S.W. Global Trade >2005’s Integrated S.W. e-Logistics >1995 >1985 <1980s Detached Agency Portals Single Window Customs Integration Scope Pre-Internet Era B2B -> B2ga G2G -> B2G N2N Copyright 2005 NCS Pte. Ltd. All Rights Reserved. UNECE UN/CEFACT Single Window Inter-operability The Problem Source: Andrey Masalovich, Natalia Makarycheva Copyright 2005 NCS Pte. Ltd. All Rights Reserved. UNECE UN/CEFACT Single Window Inter-operability Why the need for cross-border inter-operability? The landscape of global business is being shaped and driven by: • Increased scale of competition: • 1980’s - Competition of Product Superiority (TQM) • 1990’s - Competition of Supply Chain (B2B) • 2000’s - Competition of National Eco-system for Trade Facilitation (G2G, B2G) • 2010’s - (Prediction) Competition between Regional Eco-system for Trade Facilitation (N2N) • Increased volume of cross border trade and the need for capacity to handle it. • FTA and WCO implementations to facilitate international trade collaboration • Lower cost, and simplification of cross-border processes • Fraud detection and control • Increased physical threat to business and national security • 911, financing and smuggling of weapons • Increased physical, health and social threat to citizens from natural disasters or biological imports • SARS, Avian Flu, Drug recalls, etc. • Disaster relief operations Copyright 2005 NCS Pte. Ltd. All Rights Reserved. UNECE UN/CEFACT Single Window Inter-operability Beyond Borders: a Nation-to-Nation (N2N) Vision Forward er Forward er Haulier Bank Haulier Bank Customs Customs Seller Country A Country C Country A International Carriers Seller Country A Country B Federated Enterprise Reference Architecture • Message Converter • Registry & Repository • Collaborative Event Handler • Metrics & Reporting Engine • Choreographer Tools • ebXML, RosettaNet, Web Services International Carriers International Carriers Buyer Country Z Bank Customs Haulier Forward er Copyright 2005 NCS Pte. Ltd. All Rights Reserved. UNECE UN/CEFACT Single Window Inter-operability Examples of Purposes and Benefits • Single Trade Declaration - re-use of export data for import. • Import permit application • Submission of manifests and other documents • Each country retains its own customs procedures and workflow. • Trade Monitoring & Controls • Visibility of cargo content from port of origin • Track & Trace of carrier and container routes • Trade Regulations Streamlining • Clearer export/import and simplified compliance effort for traders • Faster verification of information leading to faster revenue collection • Facilitate easier implementation of future security & other trade policies Copyright 2005 NCS Pte. Ltd. All Rights Reserved. UNECE UN/CEFACT Single Window Inter-operability Challenges & Recommendations • Firstly, improve internal government efficiencies & automation toward a comparable performance standard (benchmark) • Build your Customs or e-Logistics Single Window with “end-in-mind.” • Adopt and support international or open standards for systems development, messaging, product codes and other specifications. • Adopt a common data messaging and security framework, supported by governments and trusted by traders. • Enhance Regulatory and Legal framework to support cross-border electronic document exchange. • Begin with specific, low risk product categories to achieve Single Declaration and/or Single Inspection with another country. Balance between trade facilitation and security. • Collaborate with commercial organizations and associations to address the issues of Letter of Credit, Bill of Lading, Inspection Certificates, etc. Copyright 2005 NCS Pte. Ltd. All Rights Reserved. UNECE UN/CEFACT About NCS Regional Reach Beijing Chengdu Fuzhou Guangzhou Shanghai Shenyang Suzhou Wuhan We go where our customers go.. Hong Kong China India Private Company, subsidiary of SingTel. 16 locations in 8 countries and territories across the AsiaPacific Global presence in 34 offices in 16 countries and territories through SingTel Malaysia Philippines Sri Lanka Singapore Australia Copyright 2005 NCS Pte. Ltd. All Rights Reserved. UNECE UN/CEFACT About NCS MIS Asia IDC Ranking: Industry Accomplishment MIS 100 : 30% of MIS TOP I.T. Users in Asia are NCS’ customers. NCS is also listed. Strategic 100 : NCS is Asia Pacific’s TOP 25 IT Vendors. IDC : NCS is #1 in IT Services Market Share Singapore, ahead of IBM, HP, Accenture & CSC Copyright 2005 NCS Pte. Ltd. All Rights Reserved. UNECE UN/CEFACT Corporate Capital About NCS Our Thought Leadership Speakers at regional Seminars & Conferences Co-authors and author of these books: “Branding In Asia” “Hi-Tech High Touch Branding” “E-Government in Asia” (On the reading list of a degree module at the Kennedy School, Harvard University) Copyright 2005 NCS Pte. Ltd. All Rights Reserved. UNECE UN/CEFACT About NCS One Stop e-Enabler ‘THINK – BUILD – OPERATE’ Consulting Services Development & Integration Services Managed Services Copyright 2005 NCS Pte. Ltd. All Rights Reserved. UNECE UN/CEFACT About NCS One Stop e-Enabler ‘THINK – BUILD - OPERATE’ Government ICT Planning Singapore Intelligent Island : IT2000 Masterplan Mauritius and Sri Lankan Government IT Blueprints Hong Kong SAR Government Departments Malaysia’s Sarawak State Government IT planning Singapore Government Data Centre Relocation Broadband Infrastructure for Government, Singapore Enterprise ICT Planning Singapore Anti-Tuberculosis Association Singapore Changi International Airport SingTel Telco Infrastructure Copyright 2005 NCS Pte. Ltd. All Rights Reserved. UNECE UN/CEFACT About NCS One Stop e-Enabler ‘THINK – BUILD - OPERATE’ Over 2,000 solutions and counting Cross industries: Education, Financial Services, Healthcare, Government, Manufacturing, Logistics, Telecommunications, Transportation. Complex and mission-critical projects NCS is one of Asia Pacific’s Top 25 IT Vendors (Strategic 100, MIS) 30% of Asia’s Top 100 IT Users are our customers (MIS100, MIS) Copyright 2005 NCS Pte. Ltd. All Rights Reserved. UNECE UN/CEFACT Business Innovation About NCS One Stop e-Enabler ‘THINK – BUILD - OPERATE’ Outsourcing & Managed Services Total Outsourcing Application Management Airport Facilities Management Business Recovery and Continuity Call Centre Data Centre Enterprise Server & Storage Network Management System and Desktop Management Messaging Data centre services BS7799 certified IDA-IT Standards Committee Certified Business Continuity / Disaster Recovery service provider SunTone Certified Copyright 2005 NCS Pte. Ltd. All Rights Reserved. UNECE UN/CEFACT THANK YOU NCS Contact Information: Dr. Chong Yoke Sin yokesin@ncs.com.sg www.ncs.com.sg Copyright 2005 NCS Pte. Ltd. All Rights Reserved. UNECE UN/CEFACT