Capacity Building Workshop on Trade Facilitation Implementation 18 March 2005 Dagang Net Technologies Sdn Bhd 20th Floor, HP Towers Jalan Gelenggang, Bukit Damansara 50490 Kuala Lumpur, Malaysia http://www.dagangnet.com Single Window System Implementation - Malaysian Experience 18 March 2005 Page 2 Presentation Outline The Malaysian Legacy System Understanding the Definitions Dagang Net’s Approach Challenges 18 March 2005 Page 3 The Malaysian Legacy System Many forms Ref Type of Form Purpose Authority 1. Kastam 1 Importation into Principal Customs Area (PCA) 2. Kastam 2 Exportation from PCA RCM 3. Kastam 3 Movement of goods between Peninsular Malaysia and East Malaysia RCM 4. Kastam 8 Bonded Cargoes RCM 5. Kastam 9 Removal of Goods from Bonded Warehouse RCM 6. Kastam 4 Inward (Import) Manifest RCM/FZA 7. Kastam 5 Outward (Outward) Manifest RCM/FZA 8. ZB1 Importation of goods into the Free Commercial Zones (FCZ) 9. ZB2 Re-export from FCZ FZA 10. ZB3 Transshipment FZA 11. JK69 Permit to import/export 18 March 2005 Royal Malaysian Customs (RCM) Free Zone Authority (FZA) Other Govt Agencies (OGA) Page 4 Understanding the Definitions Single Filing A single form or administrative document to multiple authorities for processing and approval for import and export trade related purposes Single Window System “One stop” platform, enabling standardised data, where the data from one application can be re-used by other applications for various authorities approval. (Example: filing permits, and the permit data is reused for Customs declarations) 18 March 2005 Page 5 DNT’s Web of Service and Value-Add Single Connectivity, Multiple Access Customs Exporters Banks Insurance Cos. Importers Free Zone Authorities Hauliers Other Government Agencies Warehouse operators (bonded warehouses) Dangerous Goods Authorities Landbridge operators Port Authorities / (Dept of Civil Aviation) Inland Port operators Certificate of Origin Authorities Port operators Ministry of International Trade and Industry Shipping Agents Ministry of Transportation Forwarding Agents Empty Depot Operators Airport Ground Handlers Freight Forwarders Cross-Border Partners 18 March 2005 Page 6 Data Repetition in Trade Documentation Commercial Invoices Insurance 95% data repetition 70% data repetition Space Booking DG Declarations 40% data repetition Customs Declarations 30% data repetition 70% data repetition Export Permits 90% data repetition Request For Delivery 30% data repetition 70% data repetition Manifest Integrated Export Documents 18 March 2005 Page 7 Common Data in Supply Chain Associating data for linking and aggregating all supply chain documentation P.O./D.O. RFD/ROT L.C. CUSTOMS Description of shipment. Value of shipment. Sender / Seller details. Receiver / Buyer details. INSURANCE BL / MANIFEST INVOICE Data that is re-usable in documentation throughout the Supply Chain 18 March 2005 Page 8 Common Data / Many Entities Various Various // Different Different Controlling Controlling Govt. Govt. Agencies Agencies Manufacturer Distributor Transport Co. Forwarding Agent Insurance Co. Shipping Agent Trade Financier Document-specific data + Production & Sourcing Logistics & Haulage Finance Insurance 18 March 2005 Clearing & Shipping L.C. BL / MANIFEST CUSTOMS INSURANCE RFD/ROT P.O./D.O. INVOICE Description of shipment. Value of shipment. Sender / Seller details. Receiver / Buyer details. Finance Settlement Page 9 L.C. BL / MANIFEST CUSTOMS INSURANCE RFD/ROT P.O./D.O. INVOICE Dagang Net Exchange’s role in Trade / Supply Chain Aggregation DNX: Further Aggregation of Trade / Supply Chain via Integration of E-Commerce Information Manufacturer Distributor Transport Co. Insurance Co. Extended Data Re-use Accuracy Efficiency Forwarding Agent Shipping Agent Trade Financier Speed Single point-of-reference Cost Savings 18 March 2005 Page 10 Dagang Net’s Approach Changing technological platform The Traditional Role New Dagang*Net Dagang Net Exchange E-Logistics Production, Supply Chain Trade Facilitation Financial Services Mail-boxing Facility SMK (KDRM) Document Exchange Online Software Solutions Communiti es Users Content /Information Marketplace Embarking aggressively on emerging technologies Adopt the Single Window System concept 18 March 2005 Page 11 Dagang Net’s Implementation Rolled out web-based eDeclare Service in April 2002 18 March 2005 Page 12 Dagang Net’s Implementation Rolled out eLogistics in August 2002 Rolled out ePermit in September 2004 Rolled out CBex in December 2004 18 March 2005 Page 13 Dagang Net’s Implementation - eLogistics Service Rosettanet PIP 3B18 MNC email Notification DAGANG•NET eLogistics eDeclare 1.Standards Conversion 2.Data Population Forwarding Agents 18 March 2005 Customs Declaration (UN/EDIFACT) Malaysian Customs Page 14 Dagang Net’s Implementation - eLogistics Service User login User Welcome Screen Select criteria 18 March 2005 Page 15 Dagang Net’s Implementation - eLogistics Service Auto population of PIP3B18 data to eDeclare & submit Status Screen 18 March 2005 Page 16 Dagang Net’s Implementation - Cross Border Service (CBex) Cross-Border Single Window System Foreign Traders Declaration Data Malaysia Traders DAGANG•NET CBex Customs Declaration eDeclare 1.Standards Conversion 2.Data Population Customs Foreign Customs Declaration Malaysian Customs (UN/EDIFACT) Country VAN Status Singapore CrimsonLogic December 2004 Chinese Taipei TradeVan January 2005 18 March 2005 Page 17 Dagang Net’s Implementation - Cross Border Service (CBex) User login Search criteria Search Results 18 March 2005 Page 18 Dagang Net’s Implementation - Cross Border Service (CBex) View Summary Records Accept incoming messages Auto population of CBex data to eDeclare & submit 18 March 2005 Page 19 Dagang Net’s Plan (2005 – 2007) Application Architecture / Infrastructure refreshment Integrating the trade value chain through the deployment of BPM (Business Process Management) workflow and technology Buy Order/Prepare Ship Transport Pay Customs Payment Extension of Cross-border service to Thailand and Indonesia 18 March 2005 Page 20 Challenges Private sector initiative Customs procedures and data requirements vary between countries Resistance to change Proliferation of broadband services nationwide 18 March 2005 Page 21 Conclusion “Single Window System implementation is all about business & NOT technology” Single Window System is not about implementing a solution. It is about implementing CHANGES for the benefits of all parties to increase national competitiveness 18 March 2005 Page 22 Terima Kasih Thank You 18 March 2005 Page 23