Paperless Trade in International Supply Chains Enhancing Efficiency

Paperless Trade in International Supply Chains: Enhancing Efficiency & Security 20 & 21 June 2005 Dagang Net Technologies Sdn Bhd 20 th Floor, HP Towers Jalan Gelenggang, Bukit Damansara 50490 Kuala Lumpur, Malaysia http: //www. dagangnet. com

From Paper to Paper-less to Paperless – Malaysian Implementation Approach 21 June 2005 2

Presentation Outline Implementation Status in Malaysia Benefits of Paperless Implementation Critical Success Factors Issues, Challenges & Constraints Role of Dagang Net Malaysian Vision 21 June 2005 3

Implementation Status in Malaysia Ref Type of Form Message Name Paperless Status 1. Customs Declaration • CUSDEC • CUSRES • CUSDEC (Export) • Fully paperless 2. Duty Payment • PAYORD/PAYMUL • DEBADV/DEDMUL • CREADV/CREMUL • Fully paperless 3. Manifest • CUSREP • CUSCAR • Fully paperless 4. Free Zone Declarations • ZBDEC • ZBRES • Fully paperless 5. Dangerous Good Declarations • IFTDGN • Fully paperless 6. Permit • SANCRT • SANACK • SANDEC 21 June 2005 4

Benefits of Paperless Implementation 1. Saving in Bank Guarantee Charges ü Annual saving of RM 18 m in Port Klang 2. Improved Safety ü No need of security services during transfer of ü duty collection Automatic routing of messages to relevant parties 3. Faster Clearance ü Reengineering of approval process (IFTDGN) 4. Lowering Operating Costs 21 June 2005 5

Critical Success Factors 1. Government’s support 2. Changes in policies & legislation 3. Phased Implementation Approach ü Moving from paper-based to paper-less to paperless 4. Stakeholders’ Commitment 5. Support from Associations 6. Education & Awareness 21 June 2005 6

Issues, Challenges & Constraints Resistance to Change BPR with Other Government Agencies involved in trade facilitation to streamline processes Proliferation of broadband services nationwide 21 June 2005 7

Role of Dagang Net 4 Operate & Manage the National Clearing Centre 4 To provide front-end solutions to enable users to submit electronic documents and duty payment 4 Access/Password Management 4 Users Facilitation 4 Education & Awareness 4 Training 4 Help Desk 4 Problem Management 4 Message Design & Development 4 Multiple standards conversion 21 June 2005 8

Dagang Net’s Actions in Paperless Trade 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 To provide a Single Window platform to enable common standardised data from one application to be re-used by other applications for various authorities approval. (Example: filing permits, and the permit data is re-used for Customs declarations) Roll-out of Cross-border services Use of RFID 21 June 2005 9

Dagang Net’s Single Window Implementation e. Logistics • PIP 3 B 18 - ASN • Adopting Rosettanet standards e. Declare • Adopting UN/EDIFACT standards e. Permit • Adopting eb. XML standards CBex 21 June 2005 • Adopting eb. XML standards 10

Conclusion Malaysian Government To make Malaysia the preferred trading hub in the Asia Pacific region To attract Foreign Direct Investment (FDI) Customs To facilitates trade without compromising standards of Customs control & border security Dagang Net To integrate the trade value chain & adopt e. Commerce as the standard mean of communication through a “One Stop” platform 21 June 2005 11

Terima Kasih Thank You 21 June 2005 12