Single Window Development and Implementation Experience of Singapore

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 z Experience of Singapore: The Single Window Implementation z The Next Big Thing: Integrated Single Window e-Logistics z A Vision: Single Window Inter-operability z About NCS Ó Copyright 2005 NCS Pte. Ltd. All Rights Reserved. UNECE UN/CEFACT

Background Making Waves Since the 1980 s ( Singapore Roadmap ) Fifth Wave Fourth Wave Third Wave IT 2000 Second Early 90 s Wave National ITPlan First Wave Mid 80 s National Computerisation Plan Early 80 s Infocomm 21 Late 90 s Connected Singapore 2003 - Trade. Net • Conceptualized in 1986 as part of National IT Plan • Implemented in 1 st Jan 1989 by Singapore Customs Ó Copyright 2005 NCS Pte. Ltd. All Rights Reserved. UNECE UN/CEFACT

Background Trade. Net Process Trade & manifest info Traders Permit Applications Cargo Clearance Permits EDI VAN Operator Controlling Agencies Singapore Customs Checkpoints (ICA - Immigration Checkpoint Authority) Ó Copyright 2005 NCS Pte. Ltd. All Rights Reserved. UNECE UN/CEFACT

Background The Path of Trade. Net 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 Trade. Net • 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) Ó Copyright 2005 NCS Pte. Ltd. All Rights Reserved. UNECE UN/CEFACT

Design and Development Process q Formation of Trade. Net Working Committee Chaired by NCB (currently NCS) and Customs r r Business Process Study r Trade documentation business processes r Review all Manual processes involved Standards Definition r r Legal Policy Support r r Study and Review Goods Classification Introduction of Electronic Transaction Act Evaluate Technology Ó Copyright 2005 NCS Pte. Ltd. All Rights Reserved. UNECE UN/CEFACT

Design and Development Process q Systems Design q q Consolidate Data Element to form Trade. Net specifications. Operations Plan q SOP & Contingency q Measure Performance q Evolve, Improve and Enhance q Payment of Duty and GST via Electronic means ( GIRO ) Ó Copyright 2005 NCS Pte. Ltd. All Rights Reserved. UNECE UN/CEFACT

Structure and Services • Submission of Trade. Net applications # Import/ Export/ Transshipment # Controlled/Non-controlled/Strategic goods # Payment/Non-payment # Cert of origin and other applications • Amendment & Cancellation of Trade. Net applications • Auto Process of Trade. Net 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 Trade. Net permits (CCS) Ó Copyright 2005 NCS Pte. Ltd. All Rights Reserved. UNECE UN/CEFACT

Participants Government Agencies q Singapore Customs ( System Owner ) q Controlled Agencies ( e. g. AVA, SPF, etc ) q IRAS ( Accounting of GST collection ) q RCB ( Registration of Company and Business) q IE Singapore ( Statistics department ) q Chambers of Commerce for COO Private Sectors q Systems Integrator and Operator (NCS) q Front-end vendors ( e. g. IPACS, SCS, PSA Portnet) q VAN operator (e. g. Crimson Logic) Ó Copyright 2005 NCS Pte. Ltd. All Rights Reserved. UNECE UN/CEFACT

Clients Users: q Importers/Exporters q Freight Forwarders/Carriers q 3 rd or 4 th Party Logistic Companies ( 3 PL/4 PL ) q Port/Terminal Operators (PSA, Jurong Port) q Other Trade communities/portals (Warehouse Operators, CCN) Statistics: q 3, 000+ registered declarant agents q 1, 000+ customs staffs q 30, 000 transactions per day. Ó Copyright 2005 NCS Pte. Ltd. All Rights Reserved. UNECE UN/CEFACT

Business Model q q Front-End Systems q Development funded by the Government. q Operated as an ASP model with transaction charges Backend System q Development funded by Government q Operation outsourced to private sector (NCS) Ó Copyright 2005 NCS Pte. Ltd. All Rights Reserved. UNECE UN/CEFACT

Results Single Window Benefits To the Traders: q Simplified commercial framework for both domestic and international trade q Faster turnaround time (average approval within 5 minutes) q Improved Convenience and efficiency q Productivity improvement and Costs saving q Faster customs clearance w/ paper-less and cashless transactions To the Government: q Increased effectiveness of control methods q More effective and efficient deployment of resources q Improved trader compliance q Facilitates business intelligence through better/faster data capturing q Accelerated economic development & Encourage Foreign Investment Ó Copyright 2005 NCS Pte. Ltd. All Rights Reserved. UNECE UN/CEFACT

Critical Success Factors q Conduct BPR within agencies to remove redundancy and streamline processes and procedures (for both manual and automated systems) q Use industry standards for electronic messaging to ease adoption (e. g. UNEDIFACT, eb. XML, Rosetta. Net ) q Standardise practises on trade documentation and Goods classification ( to achieve cross border trading ) q Close Collaboration & Consultation with all parties involved, including private sectors Ó Copyright 2005 NCS Pte. Ltd. All Rights Reserved. UNECE UN/CEFACT

Future Plans Singapore Trade. Net: q Liberalisation of VAN for competitive pricing & services q Deeper integration into trade communities & processes q Objective is to reduce duplicate data entry, facilitate information sharing and increase cost savings. q Centralised platform to act as National Hub to facilitate trade activities Ó Copyright 2005 NCS Pte. Ltd. All Rights Reserved. UNECE UN/CEFACT

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 Ó 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? Ó Copyright 2005 NCS Pte. Ltd. All Rights Reserved. UNECE UN/CEFACT

Integrated Single Window e-Logistics Key Issues in e-Logistics Today: to • Highly fragmented, non-standardized communication methods due explosion in logistics outsourcing in recent years • Players (MNCs/SMEs) have different capability levels to transact electronically business • High effort and cost to establish point-to-point connectivity w/ new partners or to cater for new business processes. e • High rate of data re-entry at multiple process points, including trad declaration ys • Lack of proper system controls lead to errors, fraud and cargo dela impacting all parties in the supply chain eco- • Net results: inefficiency and wastage in the nation’s trade & logistics eco ss. system leading to uncompetitiveness. Ó Copyright 2005 NCS Pte. Ltd. All Rights Reserved. UNECE UN/CEFACT

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 Value-Add Solutions BL, Invoice, Pack List, etc Service Oriented Architecture Statuses/ Changes Bank/ Insurance OBL Sea Ports & International Carriers Declaration/ Permits Electronic communication Customs 3 PL/ Domestic Carriers Ó Copyright 2005 NCS Pte. Ltd. All Rights Reserved. UNECE UN/CEFACT

Integrated Single Window e-Logistics Key Benefits of Integrated S. W. e-Logistics port for • Provides translation and routing services among partners, with sup etta-Net, etc. ) common international protocols (EDIFACT, XML, Rosetta-Net, to enable • Low cost solutions through either web application or 3 rd party ASP local SMEs to participate in digital economy iness • Low cost, easy and quick establishment of interface with new bus partners ntry of • Re-use of data where relevant and when desired, to eliminate re-e data ly • Improve (paper-less) handling trade documentation, resulting in time delivery and clearance from ports m to facilitate trade and logistics eco-system • Ultimate results: an efficient eco-syste Ó 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 <1980 s Detached Agency Portals Single Window Customs Integration Scope Pre-Internet Era B 2 B -> B 2 ga G 2 G -> B 2 G Ó Copyright 2005 NCS Pte. Ltd. All Rights Reserved. N 2 N UNECE UN/CEFACT

Single Window Inter-operability The Problem Source: Andrey Masalovich, Natalia Makarycheva Ó 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 (B 2 B) • 2000’s - Competition of National Eco-system for Trade Facilitation (G 2 G, B 2 G) • 2010’s - (Prediction) Competition between Regional Eco-system for Trade Facilitation (N 2 N) • 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 Ó Copyright 2005 NCS Pte. Ltd. All Rights Reserved. UNECE UN/CEFACT

Single Window Inter-operability Beyond Borders: a Nation-to-Nation (N 2 N) Vision Forwarde r Haulier Bank 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 • eb. XML, Rosetta. Net, Web Services International Carriers Buyer Country Z Bank Customs Haulier Ó Copyright 2005 NCS Pte. Ltd. All Rights Reserved. Forwarde r 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 Ó 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. Ó Copyright 2005 NCS Pte. Ltd. All Rights Reserved. UNECE UN/CEFACT

About NCS Regional Reach § Beijing § Chengdu § Fuzhou § Guangzhou § Shanghai § Shenyang § Suzhou § Wuhan Hong Kong China India We go where our customers go. . § Private Company, subsidiary of Sing. Tel. § 16 locations in 8 countries and territories across the Asia-Pacific § Global presence in 34 offices in 16 countries and territories through Sing. Tel Malaysia Philippines Sri Lanka Singapore Australia Ó 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 Ó Copyright 2005 NCS Pte. Ltd. All Rights Reserved. UNECE UN/CEFACT

About NCS Corporate Capital Our Thought Leadership § Speakers at regional Seminars & Conferences § Co-authors and author of these books: q “Branding In Asia” q “Hi-Tech High Touch Branding” q “E-Government in Asia” (On the reading list of a degree module at the Kennedy School, Harvard University) Ó 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 Ó 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 : IT 2000 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 Sing. Telco Infrastructure Ó 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 (MIS 100, MIS) Ó 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 Ó Copyright 2005 NCS Pte. Ltd. All Rights Reserved. Data centre services BS 7799 certified IDA-IT Standards Committee Certified Business Continuity / Disaster Recovery service provider Sun. Tone Certified UNECE UN/CEFACT

THANK YOU NCS Contact Information: Dr. Chong Yoke Sin yokesin@ncs. com. sg www. ncs. com. sg Ó Copyright 2005 NCS Pte. Ltd. All Rights Reserved. UNECE UN/CEFACT