Customs Integrated Information System Mongolian Customs General Administration

Customs Integrated Information System Mongolian Customs General Administration 2008 WCO IT Conference & Exhibition Seoul, Korea: 23 to 25 April 2008

Agenda I. II. Introduction History § § III. ASYCUDA GAMAS Customs Integrated Information System

I. Introduction § § II. Country Overview Data Profile Vision of e-Mongolian Customs History § ASYCUDA Overview Impact Replacement reason § GAMAS III. Customs Integrated Information System

COUNTRY OVERVIEW • • Area: Population: • Geography: • Political system: • • • Administration: Literacy rate: Membership: • Border length: 1. 6 mln. sq. km 2. 6 mln. (2008) In Ulaanbaatar (capital city): 1 million Between Russian Federation and P. R of China mountains, forest, steppe, desert President Great Hural (Parliament, 76 members) Ulaanbaatar and 21 provinces 96. 7% UN, ESCAP, WCO, WTO, …. 8, 220 km : with PRC 4, 677 km and with Russia 3, 543 km

Mongolia Data Profile 2004 2005 2006 2. 3 million 2. 5 2. 6 million People Population, total Population growth (annual %) 0. 8 1. 6 1. 2 Economy GNI, Atlas method (current US$) GNI per capita, Atlas method (current US$) GDP growth (annual %) 943. 5 million 390. 0 941. 3 million 1. 9 2. 3 billion 720. 0 880. 0 2. 1 2. 7 billion 0. 5 7. 1 8. 4 Merchandise trade (% of GDP) 122. 3 107. 3 112. 2 Foreign direct investment, net inflows (Bo. P, current US$) 53. 7 million 182. 3 million . . Global links Source: World Development Indicators Database, April 2007

Mongolia Data Profile Foreign Trade Total turnover (mln. USD) Export Import 2000 1064. 9 535. 8 614. 5 2005 2249. 2 1064. 9 1184. 4 2007 4006. 3 1889. 0 2117. 3 2000 -2007 (growth %) 376. 2 352. 5 344. 5 2005 -2007 (growth %) 178. 1 177. 4 178. 7 Source: World Development Indicators Database, April 2007

Vision of e-Mongolia

e-Government Framework

G 2 B* Projects *G 2 B : Government to Business

Mongolian Customs General Administration Total staff – 1124 n n Customs officers – 873 Supporting personnel – 251 Number of customhouses and branches– 18 n 52 customs sites Revenue collected in 2007 – 418. 7 bln. tg Percentage in state revenue – 23. 9%

I. II. Introduction History § ASYCUDA Overview Business Impact and Results Reasons for Replacement § III. GAMAS Customs Integrated Information System

Overview Developed and implemented in developing countries under the auspices of UNCTAD Version 2. 6 and 2. 7 had been used in the Mongolian Customs in 1995 – 2001 The system was installed in 12 customs branches

Business Impact and Results Some customs activities have been improved significantly: n n n Automation of customs clearance Modernization of customs documents in compliance with international standards Simplification of customs procedures

Reasons for Replacement Issues on ASYCUDA system: n n n n Difficulty in obtaining upgrades from Geneva, UNCTAD-HQ Incomplete implementation of some business and technical functionalities Interoperability difficulties in network environment Installation of the system only in 12 customs branches Y 2 K related problems Expiration of guarantee Out-of-supply of the software Issues on introduction of new version, ASYCUDA ++ n n n High cost Prolonged implementation period Unresolved financing arrangements

I. II. Introduction History ASYCUDA GAMAS § § § III. Overview Special Features Structure Reasons for Replacement Customs Integrated Information System

Overview

Overview Customs Automated Data Processing System (GAMAS) Developed and implemented by domestic companies Two versions from 2001 to 2003 Category Description System name GAMAS (Customs Automated Data Processing System) Year of development Ver 1. 0 2001~2002 (2 years) Platform Client / Server, web Operation years Ver 1. 0 2002 Lead developer Ver 1. 0 Outsourcing Level of distribution MCGA, Customhouse, Customs branch office, Border office, Brokers, IFFC Development tool Visual Basic O/S Windows 2003 DBMS MS SQL 2000 User group MCGA staff, Broker, IFFC Ver 2. 0 2003 (1 year) Ver 2. 0 2003 Ver 2. 0 Internal resource

Special Features System language – Mongolian Existing network infrastructure of Mongolian companies has been used Operability in network environment Low cost and time efficient implementation of the system Customs Intranet and web site

Composition Software n n n Customs clearance and procedure Customs Intranet Customs website Hardware n n Server Workstation Firewall Router Information Network n n Integrated network Different techniques and technological innovations Fiber Optic VSAT Radio-modem Dial-up

GAMAS Application Architecture OGA GAMAS USERS Taxes etc General Department of National Taxation Clearance System RM System Statistics Taxes and Fees Integrated System Statistics General Administration MCGA Customs house Control and Duty amount Examination Intranet email Customs Office Ministry of Finance Manifest Integrated IFFC Manifest Payment Bank System Customs Statistics Border Office Others Broker

Functionalities of GAMAS

Reasons for Replacement Non-compliance with international standards Inadequate information exchange capabilities at international and regional levels Decentralized Data and Application environment Obsolete technology hardware and software Insufficient capability from existing technology architecture Inefficient system upgrades Insufficient documentation of the system upgrade

I. II. Introduction History § § III. ASYCUDA GAMAS Customs Integrated Information System § § Direction of Improvement Enterprise Architecture Business Impact and Results Implementation Plan

Direction of Improvement Solution to establish cargo management system Solution to establish clearance process Solution to improve system for collecting and paying taxes Build supporting system for comprehensive statistics, improve item classification system Build system for sharing information Build information protection system Redefine law and regulation

Enterprise Architecture View of Customs Integrated Information System 1. 2. 3. 4. 5. External portal Customs administration information system Integrated Customs information system External connection ICT Management, Hardware and Software KOICA Funded

Synopsis of Customs Integrated Information System Implementation External Portal Customs Administration Information System Explanation External Portal Construction Construct Internet Single Electronic Window for customs clearance work and added service to trade company, tariff worker, forwarder, transport company, warehouse company, etc. Clearance management System Construction System for providing information related to Internet export and import declaration work and export and import customs clearance. Cargo Management System Construction Support work management for Internet basis freight entry and departure declaration, transportation statement, warehouse carry in and out. e-Tracing System Construction Accomplish to provide information for freight location information service and process status to freight owner and work process personnel. Tax & Revenue System Construction Manage payment and collection of tariff and tax, and support automation and transparency of tariff and tax management through related bank and the national treasury. Classification Management System Construction Support item information, item registration/change process, and integrated notice, and accomplish to provide service for each item information to external user as basic information system.

Synopsis of Customs Integrated Information System Integrated Analysis Information System Connection of internal and external DW Implementation Construct integrated data analysis infrastructure for analyzing data of work information of customs administration system, user information of portal, related information of external agency, and other support system. DM Implementation Store data each analysis work purpose (Enforcement, Risk management, Post Clearance – Audit, Statistics, EIS, etc) of Mongolia Customs Service Agency for analysis information of each DW subject. Risk Management Support multiple analysis work consisting of application of Enforcement, Risk management, Post Clearance-Audit through each purpose data of DM for user. Statistics Management System to produce several statistical information through each purpose data of DM. Executive Information Manage regular report for directors and analysis information automatically through information system, and provide decision-making support information. External Connection System Develop and construct related system among customs administration system, external agency and users. Messaging System Accept e-document standard of XML, EDI, Flat file, etc and support document process work of customs administration work to manage format management of e-document, document change, and document save, and sending and receiving of document.

Business Impact and Results q Setup foundation for e-Customs System q Enhance efficiency through active utilization of clearance information q Enhance national competitiveness through globalization Modernization (Customs Single Electronic Window) v User-friendly clearance service v Easier to use through various access means: Internet, EDI, XML v Efficiency ensured by automation Informatization v Information sharing with external agencies v Speedy clearance structure established and enhanced accuracy and timeliness of information v Efficient cargo handling and risk management Globalization v Customs administration system meeting international standards v Trade facilitation and FDI (Foreign Direct Investment) support v Enhancement of national trade competitiveness serving as a gateway into Europe and Asia

Implementation Plan MCGA Roadmap to the New Mongolian Customs System Implementation Dec 8, ‘ 07 Dec 31, ‘ 07 Jan 15, ‘ 08 Feb 1, ‘ 08 Oct 1, ‘ 08 Nov 1, ‘ 08……. . December, 09 1. Assess Business Process Review & Develop Business , Technical & Management Requirements for ADB Funded Components Project Review, Inception & Develop Game Plan 2 stage bidding for ADB Funded Components 2. Construct Competitive Bid thru IFB & Vendor Selection 3. Implement Institute TOTAL Project Governance Develop Acceptance Strategy & Test Suite for ALL Components Develop Conversion Strategy & Procedures MCGA Responsibility KOICA Responsibility Winning Bidder Responsibility Design & Develop Integrated Customs Information System and ADB Funded Components Design & Develop Customs Administration Information System, External Connection and other KOICA funded components Copyright © Implement Integrated Customs Information System & ADB Funded Components Implement Customs Information Administration System and other KOICA Components

Thank You For further information, contact to the following address: Mrs. D. Oyunchimeg Deputy Director General and Director of Enforcement and Risk Management Department Mongolian Customs General Administration Ulaanbaatar 210620, , MONGOLIA Tel/Fax: 976 11 350056 E-mail: d_oyunchimeg@ecustoms. mn